IFLY record sales and earnings!
800 Travel Reports Record Sales and Earnings
TAMPA, Fla., March 16 /PRNewswire/ -- 800 Travel Systems, Inc. (NASDAQ:IFLY) reported
today that sales for the 1998 year increased 42% to $76,679,659. Gross Revenue increased 38%
to $11,501,166 and earnings have increased 215% to .04 / share compared to a (.04) loss in 1997.
George Warde, chairman of 800 and former President and CEO of American Airlines, stated, "A
major focus for 1999 is our Internet Initiative, which had over a million hits in our first month. Our
customers are able to reach us through their favorite means, whether it is over the Internet or via the
telephone. With the help of a skilled agent, 800 offers the best customer service on and off the
Internet. The power of the Internet evidenced by the hits we received in the first month behooves us
to focus on adding to our Internet presence. Our growth will continue internally and we are retaining
a top tier firm to help us evaluate merger and acquisition candidates."
"This year 800 Travel Systems focus will be continued high growth in our traditional airline business
while becoming a full service travel provider," Mark Mastrini, 800's President and CEO, added.
"Every travel product that we add this year will be available over the Internet. Not all the new
products will require an agent to interact with, but one will always be available for customer
service."
Mastrini continues, "In a year when airline commission cuts have had an adverse effect on the travel
industry, and some of our competitors have continued to mount significant losses, we are very
pleased that our business model has begun to bear fruit in the form of earnings. It is the same model
that we are bringing to our unique Internet Reservation System."
800 Travel Systems, one of the 100 largest independent travel agencies in the United States,
provides low-priced airline tickets for domestic and international travel through its easy to remember
numbers "800-LOW-AIR-FARE" (800-569-2473) and "800-FLY-4-LESS" (800-359-4537) in
addition to its online reservation system located at lowairfare.com.
This release contains forward-looking statements relating to the future performance of the
Company. The ability of the Company to achieve the results anticipated is dependent upon various
factors discussed in its annual report on Form 10-KSB, including the Company's relationships with
various airlines and economic conditions impacting upon the success of the airline industry in
general.
800 TRAVEL SYSTEMS, INC.
SUMMARY FINANCIAL INFORMATION
CONDENSED STATEMENT OF OPERATIONS
For the Three Months For the Year Ended
Ended December 31, December 31,
1998 1997 1998 1997
(unaudited) (unaudited)
Revenues $2,921,755 $2,305,500 $11,501,166 $8,321,916
Operating Expenses 2,771,995 2,535,085 11,278,570 8,536,356
Earnings (Loss)
from Operations 149,760 (229,585) 222,596 (214,440)
Other Income (Expense) 21,197 31,203 79,270 (48,065)
Net Earnings (Loss)
Before Income Taxes 170,957 (198,382) 301,866 (262,505)
Income Tax Expense --- --- --- ---
Net Earnings (Loss) $170,957 $ (198,382) $301,866 $ (262,505)
Net Earnings (Loss)
per Common Share
- Basic $ 0.02 $(0.03) $ 0.04 $(0.04)
Net Earnings (Loss)
per Common Share
- Diluted $ 0.02 $(0.03) $ 0.04 $(0.04)
CONDENSED BALANCE SHEET
As of December 31,
1998 1997
(unaudited)
ASSETS
Cash and Cash Equivalents $2,387,273 $18,710
Other Current Assets 668,102 569,975
Total Current Assets 3,055,375 588,685
Excess of Cost Over Fair
Value of Net Assets
Acquired 4,762,864 ---
Other Assets 1,773,155 3,789,825
$9,591,394 $4,378,510
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities $811,270 $2,620,322
Other Liabilities 100,459 188,228
Stockholders' Equity 8,679,665 1,569,960
$9,591,394 $4,378,510 |
