Joystar Announces Record Bookings and Revenue for First Quarter 2006
5/12/2006
ALISO VIEJO, CA, May 12, 2006 (MARKET WIRE via COMTEX News Network) --
Joystar, Inc. (OTC BB: JYSR), one of the nation's fastest growing travel agency networks and leading seller of cruises and vacations, today announced financial results for the first quarter ended March 31, 2006.
Key operating highlights for the quarter ended March 31, 2006:
-- Gross bookings increased to $18,036,630, up 1306% year-over-year and
187% sequentially from the prior quarter.
-- Revenues increased to $2,183,000, up 1710% year-over-year and 215%
sequentially over the prior quarter.
-- Revenue margins (defined as revenue as a percentage of gross bookings)
grew 29% (an increase of 270 basis points) to 12.1% compared to first
quarter 2005.
-- Gross bookings and revenue increased sequentially for the sixth
straight quarter.
-- First quarter 2006 gross bookings and revenue surpassed totals for
entire 2005 year.
William M. Alverson, Chairman and CEO, commented, "We experienced our strongest quarter ever; building on the foundation we have laid to be the dominant seller of complex travel in the industry. The exceptional growth we've seen this quarter is a testament to the opportunity existing in the emerging host travel agency business model. It is also a validation of our strategy to focus on organic top line growth in complex travel bookings and our professional agent network."
The substantial increases in gross bookings and revenue are due to three factors:
1. Continued rapid expansion of professional agent membership 2. Significant increases in commission levels from our preferred suppliers 3. The caliber of agent Joystar is attracting.
"We have been very successful in attracting professional travel agents and, at the same time, eroding our competitors' market share. In the first quarter, we added 396 agents to our network. We are very pleased with this result taking into consideration we shifted to fee-based memberships at the beginning of the year from free memberships in 2005. Many new agents were won in direct competition with other host agencies by offering a far superior value proposition and three unique hosting solutions designed to meet the varying needs of the travel agent community."
General and Administrative expenses for the quarter ended March 31, 2006 were $953,000 compared to $504,000 for the quarter ended March 31, 2005. The increase of $449,000 was due to increased headcount and resulting payrolls of $351,000 in the new Miami office, increased accounting and legal of 63,000, increased rent in Miami and California ($39,000).
Despite costs associated with the integration and expansion of our new division in Miami, the Company reduced the net loss by 54% to $321,497 in first quarter 2006 compared to $655,666 in first quarter 2005. The net loss includes a non-cash expense of $155,401 in stock issued for services.
"Throughout 2005 and continuing in the first quarter of 2006, Joystar's commission levels with our preferred suppliers increased substantially. As our network expands and commissions & overrides increase with higher bookings, we believe this will have a positive impact on the profitability of the Company," Alverson added.
About Joystar
Joystar is the one of the nation's largest and fastest-growing leisure travel agency networks and a leading seller of cruises and vacations. The Company sells complex travel products including cruises, vacation packages and group travel through its growing national sales force of virtual travel agents and online affiliates. Joystar offers comprehensive business opportunities that combine innovative technology, marketing opportunities and expert support services to the Company's independent and home-based travel agents. With Joystar, experienced and new travel agents can concentrate on promoting travel and creating client loyalty without the administrative and financial burden of owning/operating a traditional storefront travel agency. |
