Wednesday November 17, 9:02 am Eastern Time
Company Press Release
SOURCE: Uniglobe.com Inc.
Uniglobe.com Reports 1999 Third Quarter Results
Company Announces Results in Accordance with U.S. Generally Accepted Accounting Principles
VANCOUVER, Nov. 17 /CNW-PRN/ - Travel leader and cruise specialist Uniglobe.com Inc. (VSE:UTO.B - news) today announced financial
results for the third quarter ended September 30, 1999.
Gross travel bookings for the quarter were C$22.66 million, up from gross travel bookings of C$22.36 million in the second quarter of 1999 and up
substantially from gross travel bookings of C$3.17 million in the third quarter of 1998. Revenues for the quarter were C$4.39 million, down from
revenues of C$5.16 million in the second quarter of 1999 and up substantially from revenues of C$254,789 in the third quarter of 1998. The gross
margin, on the other hand, for this quarter was C$604,526, up from C$431,213 for the second quarter of 1999. The net loss for the quarter was
C$1.89 million, or C$0.09 per share, which was consistent with management expectations, compared with a net loss of C$1.74 million, or C$0.08
per share, in the second quarter of 1999 and compared with a net loss of C$230,697, or C$0.01 per share, in the third quarter of 1998.
Uniglobe.com became a U.S. reporting issuer in the third quarter of 1999 and, therefore, has released its quarterly results in accordance with U.S.
generally accepted accounting principles (U.S. GAAP). All previous quarter results have been adjusted to U.S. GAAP in order to give a more
relevant comparison. As the Company is a Canadian reporting issuer, it will also continue to report its results in accordance with Canadian GAAP
for Canadian regulatory purposes.
Reporting in accordance with U.S. GAAP puts the Company on a level playing field with how results are reported by U.S. publicly listed
e-commerce travel competitors like Priceline.com and CheapTickets. In addition to commissions, online revenue includes gross sales where the
Company is the merchant of record. During the quarter ended September 30, 1999, the Company was the merchant of record for 9.4 percent of the
sales compared to 13.1 percent in the previous quarter. The customer's choice in method of payment determines the Company's ability to act as the
merchant of record and, therefore, impacts gross revenues reported for the period. Management is currently conducting a cost/benefit analysis on
acceptance of credit card to make the Company merchant of record on the majority of its sales versus passing along the credit card information to the
travel suppliers. The decision to accept credit cards would result in the majority of all sales being counted as revenue.
``Our focus on higher margin cruise product has resulted in gross margins growing 64 percent from 8.4 percent of revenues to 13.8 percent of
revenues quarter over quarter. The relatively even gross travel bookings quarter over quarter are as a result of the concentration we placed on moving
to new enlarged facilities, integrating state-of-the-art technology which can accommodate substantial future growth, and launching a brand new
industry- leading Web site - the first in the e-commerce travel sector with online chat capabilities for our clients. Additionally, we relocated
Chicago-based Uniglobe InHouse Travel's fulfillment functions to Seattle,' said Martin H. Charlwood, President and Chief Executive Officer of
Uniglobe.com.
``The completion of these behind-the-scenes initiatives, along with our recent stepped up public relations and advertising activities, should help us
build upon our base of C$90 million in annualized gross bookings and position us well for further growth,' said Charlwood.
He also noted that ``the recent IPO of Expedia.com has drawn much needed attention to the e-commerce travel sector, which many think has been
undervalued in the past. Travel is now the number one commerce sector on the Internet, and Uniglobe has one of the best known brand names in the
travel business, all of which provides for a very bright future for Uniglobe.com.'
About Uniglobe.com
Uniglobe.com Inc. provides products and services via the Internet to leisure and business travelers as well as operates an Internet travel fulfillment
center for home-based agents and online companies. Strategic partners include Yahoo!, Expedia.com, Galileo International, Lucent Technologies,
Autobytel.com, Avenue A, GoTo.com, GetThere.com and Leisure Planet. Its largest shareholder, Uniglobe Travel (International) Inc., is the
world's largest single brand travel franchise organization with 1,100 locations recording C$2.8 billion in annual gross travel bookings. Visit the
Company's Web site at www.uniglobe.com.
UNIGLOBE.com Inc.
Consolidated Balance Sheet
(Unaudited)
(Expressed in Canadian dollars)
US GAAP
As of September 30,
------------------------------------
1999 1998
------------- ------------
ASSETS
Current
Cash and cash equivalents $ 3,278,698 $ 452,105
Accounts receivable 1,086,476 110,903
Prepaid expenses 362,632 53,912
------------ ----------
4,727,806 616,920
Capital assets 1,189,562 67,764
Rights and goodwill 1,297,143 -
------------ ----------
$ 7,214,510 $ 684,684
------------ ----------
------------ ----------
LIABILITIES
Current
Accounts payable $ 1,532,449 $ 251,375
Deferred revenue 175,936 -
Due to affiliated companies 520,382 113,278
------------ ----------
2,228,768 364,653
------------ ----------
SHAREHOLDERS' EQUITY
Share Capital
Authorized: unlimited common
shares without par value
Issued and outstanding:
20,682,445 and 17,567,064
as of September 30, 1999
and 1998, respectively 15,178,873 5,277,275
Accumulated deficit (10,193,131) (4,957,244)
------------ -----------
4,985,742 320,031
------------ -----------
$ 7,214,510 $ 684,684
------------ -----------
------------ -----------
UNIGLOBE.com Inc.
Consolidated Statement of Loss and Deficit
(Unaudited)
(Expressed in Canadian dollars)
US GAAP
Three (3) months ended Nine (9) months ended
September 30, September 30,
------------------------- ----------------------------
1999 1998 1999 1998
----------- ------------ -------------- ------------
REVENUES
Online $ 4,117,989 $ 156,184 $ 9,990,540 $ 264,959
Service 269,370 98,605 512,940 207,409
----------- ------------ ------------- -------------
4,387,359 254,789 10,503,481 472,368
COST OF REVENUES
Online 3,782,833 54,044 9,262,796 57,007
----------- ------------ ------------ -------------
GROSS MARGIN 604,526 200,745 1,240,684 415,361
OPERATING EXPENSES
Research and
development 193,072 91,387 497,168 443,738
Sales and
marketing 1,313,303 185,899 2,435,289 410,111
General and
administrative 1,038,078 158,750 2,949,748 297,676
----------- ------------- -------------- -------------
2,544,453 436,036 5,882,205 1,151,525
NET OPERATING
LOSS (1,939,926) (235,291) (4,641,520) (736,164)
Other income 42,438 4,594 208,529 8,327
----------- ------------- -------------- -------------
NET LOSS FOR
THE PERIOD (1,897,488) (230,697) (4,432,991) (727,837)
DEFICIT,
BEGINNING
OF PERIOD (8,295,643) (4,726,547) (5,760,140) (4,229,407)
-------------- ------------- -------------- -------------
DEFICIT,
END OF
PERIOD $ (10,193,131) $(4,957,244) $ (10,193,131) $ (4,957,244)
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
Loss per
share $ (0.09) $ (0.01) $ (0.21) $ (0.04)
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
SUPPLEMENTAL INFORMATION
Gross Travel
Bookings $ 22,662,110 $ 3,172,757 $ 51,522,500 $ 4,601,186
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SOURCE: Uniglobe.com Inc. |
