To all:
I've been lurking on this thread for awhile...trying (sometimes in vain) to keep up with all the posts.
Maybe I completely missed this but was the below discussed? This is a copy of the latest quarterly report filed yesterday
November 13, 1998
TELESERVICES INTERNATIONAL GROUP INC (TSIG)
Quarterly Report (SEC form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations
Total revenues for the three months ended September 30, 1998 were $318,038, a 68% decrease from revenues for the three months ended September 30, 1997. Operating expenses for the same period decreased from $3,801,009 to $1,127,366, a 70% decrease. For the period, the Company sustained a net loss of $877,571, compared to a net loss of $2,836,702 for the same period last year, a decrease of 69%. A portion of the decrease in the loss is due to the reclassification of certain costs incurred in prior periods, such as deferred expenses and investment in affiliate companies, that were expensed and have now been recorded as deferred or capitalized expenses. The total decrease in the loss for the period due to these adjustments is $1,226,000. Excluding these adjustments, the loss from operations for the period would have been $2,103,571, a decrease of 26% from the same period last year.
Sales and Revenues
The Company's sales and revenues are derived from its subsidiaries Visitors Services International Corp. ("VSI" or "VSIC") and American International Travel Agency, Inc. ("AIT"). Revenues sources include commissions earned on the sale of airline tickets, as well as booking fees and commissions paid by hotels or lodging properties, car rental agencies and tour operators for each made and used reservation VSI provides. Additionally, VSI receives per-call fees for visitor guide requests, transaction fees for information services and ticket sales to attractions and events and subscription fees for property representation.
Limited Working Capital; Financial Instability
As of September 30, 1998, the Company's had a negative stockholder's equity of ($4,894,584), an accumulated deficit of ($32,659,017) and a working capital deficit of ($7,309,741).
Various factors affecting the Company's operations raise doubt as to the Company's ability to continue as a going concern. There can be no assurance that the Company will be able to continue as a going concern, or achieve material revenues and profitable operations. The Company is dependent upon sufficient cash flows from operations to meet its short term and long-term liquidity needs. These operations have not and are not expected to provide sufficient cash flows, and, as such, the Company requires additional financing. No assurances can be given that financing will be available to the Company in the amounts required, or that, if available, the financing will be available on terms satisfactory to the Company.
The financial statements include all adjustments which, in the opinion of and to the best of management's knowledge, are necessary to make the financial statements not misleading.
Changes in Operating Strategy
In response to the continuation of the operating losses from the travel-related teleservice operations, the Company initiated aggressive restructuring during the reporting period. The members of the prior senior management departed from the Company in the second quarter. The Company has brought in a new management team and is making fundamental changes to its strategic focus. A new president was hired in August along with new operational and financial management.
Due to the difficulty to operate profitably in a commission-based travel environment, the Company is targeting its sales and marketing efforts toward traditional outsourced teleservices. Call center services will be offered on a time-billing basis, with revenue charges based upon staffing hours as opposed to commissions. The existing client base of VSI and AIT are being offered a restructured pricing package based upon hourly billing rates. However, it is considered to be unlikely that more than a very small portion of the client base, if any at all, will accept the new pricing structure. Therefore, future revenues will depend upon the ability of the Company to develop new customers for its services.
In addition to seeking new revenue sources for the Company, there has been a substantial reduction in general and administrative expenses.
Compact Connection, Inc.
TSIG formed a new corporation, Compact Connection, Inc. ("CCI"), a Delaware corporation, in May, 1998, for the purpose of acquiring the assets of Compact Connection, Inc., a Nevada corporation located in Southern California (see Item 6.b. below). CCI sells discount cards entitling the holder to purchase music compact discs and cassette tapes at a discounted price. CCI has developed an internet site (www.compactconnection.com) on which individuals can purchase the discount cards as well as music CDs and tapes, selecting from a catalog of more than 250,000 titles.
CCI has designed a marketing program offering the discount music cards to clients such as major corporations and not-for-profit organizations as promotional and fund-raising devices. The music card is sold by the client as part of a promotion or fund raiser, keeping a portion of the sales revenues for itself and paying the remainder to CCI. The purchasers of the music card can use the discounts to purchase CDs and tapes through the internet site or they can order by telephone by calling on a toll-free number that will be answered in the Company's call center.
The internet site and the call center are currently operational. However, no revenues for CCI were recorded in the reporting period. |
