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LEADING TRAVEL RESERVATION AND INTERNET BOOKING FIRM ON TRACK FOR RECORD SALES AND EARNINGS
Hars Systems Inc.ås fiscal year end revenues to top $11 million, rising sharply through 2001, following 12 consecutive quarters of high growth and profitability
On-line travel is growing faster than any other Internet-based retail segment. With the advent of the World Wide Web, industry analysts estimate the value of the industry will balloon from $3 billion in 1998 to a projected $29 billion by the year 2003.
Emerging reservations and booking firms such as Canadian-based Hars Systems Inc. are poised to become prime beneficiaries within this explosive travel e-commerce sector.
Through its operating subsidiary, VIP International Corp., Hars Systems is taking its established track record and winning formula for success online, offering businesses and consumers unlimited access to a virtual world of real-time booking.
Along the way, Hars has leveraged a large investment in intellectual property and technology into one of the sharpest growth rates in the industry. That growth has been matched with an equally impressive corporate perfor-mance, with revenues slated to rise significantly through fiscal years 2000/2001.
During the past three years, the company has achieved outstanding market share through its industry-leading central reservation system and is now parlaying its success onto the ânet.
The state-of-the-art booking engine is connected to major travel portals such as Microsoft Expedia, Travelocity and dozens of leading internet travel websites and global distribution systems worldwide.
The system also offers economical access to such global networks as Sabre (American Airlines), Amadeus (Air France) and others operated by the world's major airlines.
One of the first central reservations providers to embrace the Internet, Hars Systems Inc. took an early market lead, refining and enhancing its core booking engine with a suite of online tools incorporating e-mail and unique central reservation system updating applications.
The net effect for users has been hassle-free and instant bookings for hotel rooms and car rentals. For Hars, the upside has been 12 consecutive quarters of profitability (respective revenues of $8.1, $10.5, and $11.5 million in '97, '98, '99) with the best yet to come.
To date, approximately 3,200 individual hotel and car rental properties in 66 countries are online with Hars, representing a 136% increase during the first eight months of 1999, and that figure is growing sharply.
The service has proven just as popular with retail clients as hotel and car rental organizations. Approximately $150 million in hotel room and car rental reservations will be processed in 1999, another record for this aggressively expanding company. With 146 new clients signed up in the first quarter of 1999 (and a total of 60 in just two months last summer), its VIP subsidiary now offers its expanding client base seamless connectivity to approximately 600,000 travel agents worldwide.
Growing clientele. More than 300 individual hotel property websites are currently linked to the system through a product called WebLink, which is in addition to the major travel portals onboard, such as Microsoft Expedia, Travelocity, and the companyås own website.
Hars Systemså success is best measured by its bottom line. Over the past three fiscal years, the company has consistently posted sharp revenue gains (revenues in 1999 projected to top $11.5 million) and is growing at a sparkling average rate of 20% per year.
Moreover, the company's core business has expanded from a central booking engine to a full product line that emulates and complements many services provided by major hotel chains, including instant confirmation of reservations through the internet, airline global distribution systems, and the telephone.
All of which has Harså president Kelly Blake ext-remely optimistic regarding his companyås future prospects.
"Growth from our core business is solid and predictable," said Blake. "However, the major upside for our firm will come from strategic acquisitions and internet bookings, which have risen 497% over the past seven months alone.
"Through forecasted internet sales and key acquisitions of related firms in our field, we fully expect our revenue base to increase dramatically over the next two year period," adds Blake.
At the same time, Blake points out Hars is aggressively sourcing joint venture opportunities and potential mergers, and is also establishing customized hotel brand names that will enable small to mid-size hotel chains to market themselves as part of a âvirtualå chain of hotels and car rental agencies.
Branding is a critical factor in building on-line commerce¥particularly for the travel industry¥as businesses seek to identify themselves with leading-edge companies and major portals.
At present, Hars Systems Inc. remains in a solid financial position, with sales revenues from its core business slated to exceed $11 million during the current fiscal year and rising significantly each year thereafter.
This growth, combined with further acceleration of revenues from internet sales and the companyås ongoing acquisition program, is expected to translate into strong bottom line earnings for corporate shareholders of this dynamic, and presently undervalued, reservations and travel marketing company.
TECHNOLOGY-BASED
Harså dramatic growth includes:
CORE BUSINES
Expanding clientele: 3,200 hotel/car rental chains in 66 countries. VIP revenues rising 20% per year, double the rate of the average S&P 500 company
WORLDWIDE WEB
Hars posted 497% increase in internet sales for the first 7 months of calender year 1999. Sales through 2003 slated to dramatically add to revenue growth
EXPANSION
Strategic acquisition program, combined with stellar growth in core and internet segments,
could viably advance sales over $40 million by 2002
PROFITABILITY
Exceptional growth achieved. Capital stock of Hars considered by many industry analysts and insiders significantly undervalued based on current cash value
Investors are invited to contact Hars Systems Inc. (symbol HSS:VSE) direct for a full complimentary information package by calling Toll Free 1-877-399-4499 |
