Global Vacation Group Reports First Quarter Results.Business Editors WASHINGTON--(BUSINESS WIRE)--April 28, 2000 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 first quarter ended March 31, 2000. Net revenues increased 20 percent to $27.4 million in the 2000 first quarter from $22.8 million in the same period a year earlier. The company reported a net loss of $2.9 million, or $0.20 per share for the 2000 first quarter, compared to a net loss for the 1999 first quarter of $1.8 million, or $0.12 per share, which included a $0.02 per share loss for an extraordinary item. Due to the seasonal nature of the leisure travel business, the company typically reports a loss in the first quarter. "The first quarter generally was on target with analysts' expectations," said Roger Ballou Ballou could refer to: Places
The period beginning at the start of the calendar year up to the current date. continue to be up in the high teens on an as reported basis, and we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the year and returning to profitability." "Our revenue growth benefitted from the full quarter impact of the Friendly Holidays and Island Resort Tours acquisitions made last year," Ballou added. "We saw some softness early in the quarter due to the general slow down in leisure travel around the millennium millennium [Lat.,=1,000 years], the period of 1,000 years in which, according to some schools of Christian eschatology, Christ will reign again gloriously on earth. Belief in the millennium, based on Rev. 20, has recurred in Christianity since the earliest times. . However, activity was strong throughout the remainder of the quarter." Ballou pointed out that the first quarter is the company's heaviest booking period, which results in higher overhead without the corresponding revenues. "Results also were impacted by the roll out of the Better Homes and Gardens Vacations brand in selected test markets and higher interest rates and increased debt, resulting from borrowings made to finance 1999 acquisitions." Jay Stuart, GVG chief financial officer said, "We achieved substantial reductions in general and administrative expenses in the quarter, and improved our cash management. We consolidated con·sol·i·date 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: the back-office operations of Friendly Holidays into Globetrotters, which we believe will further improve service and reduce overhead. We have begun the process of migrating to a common technology platform for our Classic and Globetrotters brands and continue to look for other ways to improve service and margins." 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's family of brands includes Classic Custom Vacations, which creates customized vacation packages for upscale U.S. travelers, Vacations by 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 international vacation travelers. 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
2000 1999
Net revenues $ 27,352 $ 22,759
Operating expenses 27,367 21,421
--------- ---------
Gross profit (15) 1,338
General and administrative expenses 2,418 3,067
Depreciation and amortization expense 1,851 1,046
--------- ---------
Income (loss) from operations (4,284) (2,775)
--------- ---------
Other income (expense)
Interest income 529 455
Interest expense (1,148) (144)
Other (12) 9
--------- ---------
(631) 320
--------- ---------
Loss before income taxes (4,915) (2,455)
Income tax benefit 2,018 917
--------- ---------
Loss before extraordinary item (2,897) (1,538)
Extraordinary item, net of income
tax benefit of $144 - (257)
--------- ---------
Net loss $ (2,897) $ (1,795)
========= =========
Basic and diluted net loss
per common share:
Loss per share before
extraordinary item $ (0.20) $ (0.10)
Extraordinary item per share $ - $ (0.02)
--------- ---------
Basic and diluted net loss per share $ (0.20) $ (0.12)
========= =========
Basic and diluted weighted average
shares outstanding 14,393 14,706
========= =========
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion