FLYR earnings
Navigant International Reports Revenues Increase and Record Earnings
Per Share For First Quarter 1999
PR Newswire - April 27, 1999 08:17
First Quarter Earnings Per Share $0.27 Versus $0.13
First Quarter Revenue Increase of Three Percent Over Pro forma 1998
Fourth Consecutive Quarter of Record Revenues
DENVER, April 27 /PRNewswire/ -- Navigant International, Inc. (Nasdaq: FLYR), one of the largest suppliers of corporate
travel management services in the U.S., today reported operating results for its first quarter ended March 27, 1999.
Revenues for the first quarter were $54.6 million, an increase of 45 percent over revenues of $37.7 million in the first quarter of
fiscal 1998, and an increase of 3 percent over pro forma revenues of $53.2 million in the first quarter of fiscal 1998. Operating
income was $7.2 million in the first quarter of fiscal 1999, a 103 percent increase over operating income of $3.6 million in the first
quarter of fiscal 1998, and an increase of 8 percent over pro forma operating income of $6.7 million in the first quarter of fiscal
1998. Net income was $3.5 million for the quarter, or $0.27 per diluted share, an increase of 96 percent over net income of $1.8
million, or $0.13 per diluted share, for the same period last year. Net income for the first quarter 1999 also exceeded pro forma
net income for the first quarter of 1998 of $3.1 million, or $0.24 per diluted share, an increase of 13 percent.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the first quarter of 1999 increased to $9.6 million
from $5.1 million in the first quarter last year and from $8.8 million on a pro forma basis for the first quarter of 1998. Pro forma
numbers reflect all acquisitions as if the transactions had occurred at the beginning of the periods discussed.
"We are extremely pleased by these results," said Edward S. Adams, Chairman and Chief Executive Officer. "The three percent
improvement in revenue over the pro forma results for 1998, despite the commission cut in the fourth quarter 1998, provides
further evidence that the conversion to management fees and service fees is helping to insulate our revenue stream from reductions
in commission structure. We are also beginning to see results from our regional structure with several of our agencies doing joint
bids, and with improved operating efficiencies and more efficient customer reporting."
"During the past month, we have begun rolling out a comprehensive e-commerce strategy," continued Adams. "One facet of this
strategy is focused on our corporate customers, and includes our 'FLYR Electronic Navigation' products to provide an integrated,
end-to-end booking and reporting solution. Another element of our strategy involves using technology to move into the growing
leisure travel markets. We plan to have our leisure e-commerce site, www.NavigantVacations.com, incorporate several of the
tools we have developed for our corporate customers as well as leverage our size and purchasing power to provide leisure
travelers with low-cost travel solutions including airfare, cruises, and pre-packaged vacations."
"Our cash flow from operations remains very strong," added Robert C. Griffith, Chief Financial Officer and Treasurer. "We closed
on the $15.0 million short-term expansion of our credit facility with our current lenders, and continue to explore additional
long-term funding options. As demonstrated by our first quarter results, our consolidation and integration efforts are resulting in
both margin and operating income improvement and we are continually exploring additional growth opportunities. We believe our
recently announced e-commerce strategies can be implemented using our existing infrastructure and purchasing power and should
allow us to make a quick and exciting entrance into this new market with minimal distraction to our core business operations.
Additionally, we believe that access to employees at our existing corporate clients gives us an immediate customer base of over
one million travelers familiar with our quality service."
"Our acquisition program remains on track and we are in various stages of discussions with several corporate management
companies fitting our acquisition profile," continued Griffith. "We are being selective because we intend to quickly leverage future
acquisitions under our national agreements and current regional structure to bring an even greater growth opportunity to our
operations."
Internet Conference Call Broadcast
Investors will have the opportunity to listen to Navigant International's first quarter conference call over the Internet through Vcall
at www.vcall.com. The conference call begins 8:00 a.m. Pacific Standard Time. To listen to the live call, go to the Vcall Web site
at least 15 minutes before the start of the call to register, download, and install any necessary audio software. A replay of the call
will be available shortly after the call is completed and up to two weeks thereafter. A transcript will be available one or two days
after the live call.
Navigant is one of the five largest providers of corporate travel management services in the United States. The Company currently
has approximately 438 regional travel offices and on-site customer travel operations, including offices in 18 of the 25 largest U.S.
business travel markets. The Company's shares are traded on the Nasdaq National Market System under the symbol "FLYR."
This news release contains forward-looking statements, including statements about the Company's growth strategies and
opportunities, the integration of prior or potential future acquisitions, the impact of changes in commission structures, future funding
options, and general industry or business trends or events. Investors are cautioned that any such forward-looking statements are
not guarantees of future performance and involve risks and uncertainties. Actual events or results may differ materially from those
discussed in the forward-looking statements as a result of various factors, including, without limitation, those described in the
Company's current report on Form 8-K, dated January 21, 1999, and the risk factors detailed from time to time in the Company's
SEC reports, including the reports on Forms 10-K and 10-Q. The forward-looking statements made herein are only as of the
date of this press release, and the Company undertakes no obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances.
Navigant International, Inc.
Consolidated Statement of Income
(In thousands, except per share amounts)
Three Months Ended
Pro Forma
March 27, March 27, March 27,
1999 1998 1998
(Unaudited)(Unaudited) (Unaudited)
Revenues $54,603 $37,709 $53,200
Operating Expenses 30,472 21,620 30,073
Gross Profit 24,131 16,089 23,127
General and administrative expenses 14,485 10,960 14,286
Depreciation and amortization expense 2,423 1,567 2,157
Operating income 7,223 3,562 6,684
Interest expense, net and other 1,112 46 1,198
Income before provision for
income taxes 6,111 3,516 5,486
Provision for income taxes 2,648 1,753 2,424
Net income $3,463 $1,763 $3,062
EBITDA $9,646 $5,129 $8,841
Net income per share:
Basic net income per share $0.27 $0.13 $0.24
Diluted net income per share $0.27 $0.13 $0.24
Weighted average shares outstanding:
Basic 12,916 13,364 12,984
Diluted 12,923 13,582 12,991
Notes to Historical and Pro Forma Statement of Income:
(a) "EBITDA" is defined as income from operations, plus depreciation and
amortization. EBITDA is not intended to represent cash flow from
operations as defined by GAAP and should not be used as an alternative
to net income as an indicator of operating performance or to cash flow
as a measure of liquidity. EBITDA is included because it is a basis
upon which we assess our financial performance.
(b) The pro forma financial information includes the results of the eight
operating companies acquired in 1998, all of which were accounted for
using the purchase method of accounting, as if the acquisitions had
occurred at the beginning of the applicable period. Pro forma
adjustments have been reflected for contractual reductions in
compensation, goodwill, interest expense attributable to debt incurred
as a result of the acquisitions and taxes. The pro forma adjustments
are based upon preliminary estimates, available information and
certain assumptions that management deems appropriate. The unaudited
pro forma combined financial results presented herein does not purport
to represent what the Company's financial results of operations would
have been had the transactions which are the subject of the pro forma
adjustments occurred on those dates, as assumed, and are not
necessarily representative of the Company's financial results of
operations in any future period.
SOURCE Navigant International, Inc.
/CONTACT: Robert C. Griffith, Chief Financial Officer of Navigant
International, 303-706-0778; or General Information, Don Markley or Jose
Mallabo, or Analysts, Cathy Kawakami, all of the Financial Relations Board,
415-986-1591/
/Web site: vcall.com
/Web site: navigantvacations.com |
