Global Vacation Group Reports 1998 Third Quarter and Nine Months Results.WASHINGTON--(BUSINESS WIRE)--Oct. 28, 1998--Global Vacation VACATION. That period of time between the end of one term and beginning of another. During vacation, rules and orders are made in such cases as are urgent, by a judge at his chambers. Group, Inc. (NYSE NYSE See: New York Stock Exchange :GVG GVG Giving GVG Grass Valley Group GVG Guild Versus Guild (Guild Wars, online game) GVG Grundstücksverwaltungsgesellschaft der Stadt Mainz ), one of the largest U.S. providers of value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: vacation products and services targeted to higher-income travelers, today reported results for the third quarter and nine months ended September September: see month. 30, 1998. The company was formed in March 1998 as a recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. of Allied Tours, and between March and May of 1998 the company completed the acquisitions of Haddon Haddon could refer to:
MTI Metal Treating Institute MTI Moving Target Indicator (radar) MTI Magyar Távirati Iroda (news agency in Budapest, Hungary) Vacations and Globetrotters, Inc. As a result, management believes that pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma results provide the most meaningful comparative financial results of operations for the company. During the third quarter, the company completed its initial public offering (IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ). Assuming that the acquisitions and IPO had occurred on January January: see month. 1, 1997, net revenues for third quarter 1998 were $40.8 million, up 9.9 percent over pro forma net revenues for the same period in 1997. Pro forma net income for third quarter 1998 was $4.7 million, or $0.32 per share, compared to $3.7 million, or $0.25 per share for the same period in 1997, a 26.1 percent improvement. Third quarter pro forma net income demonstrated strong growth. The company also experienced stronger third quarter net revenue growth. During the quarter, the company repaid $44 million of debt primarily with proceeds from the IPO and recognized an extraordinary charge of $379,000, net of tax, upon the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of the debt. The company currently has $1.5 million in debt outstanding under its available credit facility of $23.5 million. For the nine months ended September 30, 1998, pro forma net revenues improved 7.3 percent to $95.9 million. Pro forma net income increased to $4.8 million, or $0.32 per share, compared to $3.0 million, or $0.20 per share, for the first three quarters of 1997. "Historically, our third quarter has been our most important because the summer vacation Summer vacation (also called summer holidays or summer break) is a vacation in the summertime between school years in which students are off for 3 months, depending on the country and district. season accounts for between 70 and 80 percent of our annual results," said Roger Ballou Ballou could refer to: Places
v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: our operations into three brands and have begun to market them aggressively." Ballou noted that the company is well along in migrating its Classic Custom Vacations and Globetrotters brands onto one common technology platform. In addition, he noted that Global Vacation Group was finalizing negotiations related to several new contracts with major travel agent groups. "We continue to aggressively seek acquisitions to add to our product line and to enter new markets," he remarked. "Response by travel agents to the launch of our 1999 product offerings has been quite positive," Ballou said. "We are on plan and ahead of last year's bookings and are gaining momentum." On a historical basis, net revenues for the third quarter of 1998 were $40.8 million, as compared to $11.2 million for the same period last year, which excludes the effects of 1998 acquisitions. Net income for the third quarter of 1998 was $4.0 million, or $0.28 per share, compared to $1.4 million, or $0.26 per share, for the same period last year. For the nine months ended September 30, 1998 on a historical basis, net revenues rose to $62.8 million, compared to $19.5 million for the nine months ended September 30, 1997. Net income for the first three quarters of 1998 was $3.4 million, or $0.10 per share, compared to a net loss in the first three quarters of 1997 of $(0.8) million, or $(0.15) per share. "Global is well positioned to respond to opportunities that may arise due to its strong and liquid balance sheet," said Walter Wal·ter , Bruno 1876-1962. German conductor noted for his interpretations of Mozart and Mahler. Noun 1. Walter - German conductor (1876-1962) Bruno Walter Berman Berman may refer to:
Global Vacation Group, headquartered in Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C., is a value-added provider of vacation products and services. Global Vacation Group family of brands includes Classic Custom Vacations, which creates customized vacation packages for upscale U.S. travelers, Globetrotters, which is targeted to the popularly priced-vacation buyer, and Allied Tours, which creates and coordinates coordinates of a point on a graph or grid map, the points on the horizontal and vertical axes which identify the location of the point on the graph/map. packages and tours for vacation wholesalers located primarily in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .The matters in this press release include "forward looking statements" within the meaning of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are qualified by cautionary statements contained herein and in Global Vacation Group's filings with the Securities and Exchange Commission.
GLOBAL VACATION GROUP, INC.
(formerly Allied Bus Corp.)
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Net revenues $40,803 $11,198 $62,789 $ 19,534
Operating
expenses 29,656 6,889 47,652 14,298
Gross profit 11,147 4,309 15,137 5,236
General and
administrative
expenses 3,224 3,007 6,977 6,181
Depreciation
and amortization 992 41 1,733 123
Income (loss)
from operations 6,931 1,261 6,427 (1,068)
Other income
(expense)
Interest income 922 153 1,793 286
Interest expense (512) -- (1,426) --
Other (2) 18 20 40
408 171 387 326
Income (loss)
before income
taxes 7,339 1,432 6,814 (742)
Provision for
income taxes (2,916) (70) (3,075) (65)
Income (loss)
before
extraordinary
item 4,423 1,362 3,739 (807)
Extraordinary
item, net of
income tax
benefit (379) -- (379) --
Net income
(loss) $ 4,044 $ 1,362 $ 3,360 ($ 807)
Dividends on
Class A
Convertible
Preferred Stock 696 -- 2,519 --
Net income
(loss) available
to common
shareholders $ 3,348 $ 1,362 $ 841 ($ 807)
Basic net income
(loss) per
common share:
Income (loss)
per share before
extraordinary item $ 0.31 $ 0.26 $ 0.15 ($0.15)
Extraordinary
item per share $ (0.03) -- $ (0.05) --
Basic net income
(loss) per share $ 0.28 $ 0.26 $ 0.10 ($0.15)
Diluted net income
(loss) per
common share:
Income (loss) per
share before
extraordinary
item $ 0.32 $ 0.26 $ 0.37 ($0.15)
Extraordinary
item per share ($0.03) -- ($0.04) --
Diluted net
income (loss)
per share $ 0.29 $ 0.26 $ 0.33 ($0.15)
Basic weighted
average shares
outstanding 12,075 5,291 8,304 5,291
Diluted weighted
average shares
outstanding 13,663 5,291 10,090 5,291
GLOBAL VACATION GROUP, INC.
(formerly Allied Bus Corp.)
Pro Forma Consolidated Statements of Operations
(In thousands, except share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Net revenues $40,803 $37,133 $95,869 $89,318
Operating expenses 29,622 27,865 78,731 75,435
Gross profit 11,181 9,268 17,138 13,883
General and
administrative
expenses 3,224 2,807 8,812 7,736
Depreciation and
amortization 992 875 2,774 2,561
Settlement agreement
legal expense -- 301 -- 1,157
Income from
operations 6,965 5,285 5,552 2,429
Other income
(expense):
Interest income 922 1,180 2,971 2,979
Interest expense (76) (233) (508) (547)
Other 1 5 16 123
847 952 2,479 2,555
Income before
income taxes 7,812 6,237 8,031 4,984
Provision for
income taxes (3,095) (2,495) (3,238) (1,994)
Net income $ 4,717 $ 3,742 $ 4,793 $ 2,990
Pro forma net
income per basic
and diluted share $ 0.32 $ 0.25 $ 0.32 $ 0.20
Pro forma shares
outstanding - basic 14,748 14,748 14,748 14,748
Pro forma shares
outstanding - diluted 14,827 14,827 14,827 14,827
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