CTIX + 0.05 vs. estimate of breakeven. Company has market cap of 1/20 of PCLN and has greater revenues then PCLN and actual profits!!!!
Cheap Tickets Reports Highest Quarterly Earnings in
Company History
PR Newswire - April 26, 1999 16:30
HONOLULU, April 26 /PRNewswire/ -- Cheap Tickets, Inc.(Nasdaq: CTIX), a leading seller of
discount tickets for domestic leisure travel, today reported net earnings of $970,000, or $.05 per share
(diluted), for its fiscal 1999 first quarter, which ended March 31, 1999. These results compare to net
earnings of $25,000 or ($.01) per share (diluted) for the same period in 1998. Net earnings of $.05 per
share are calculated before a reduction of $.04 for a one-time, non-operating charge to retained
earnings arising from early retirement of preferred stock on March 24, 1999.
First-quarter revenues were the highest recorded for any quarter in the Company's history. Net
revenues for the quarter increased $28.1 million, or 87 percent to $60.5 million from the first quarter of
1998. Net revenues report non-published fares at retail value and commissions on published fare sales.
Non-published fare revenues increased $25.5 million, or 84 percent, and commissions on published
fares increased from $1.9 million to $4.6 million.
Increased Internet sales were a major factor in revenue growth. Gross bookings from the Internet
increased $18 million to $20.3 million in the first quarter 1999 from $2.2 million in the same quarter in
1998, an approximate ninefold increase.
The Company's fourth call center, which opened subsequent to the first quarter of last year, also
contributed significantly to revenue growth. Overall call center growth increased 42 percent from the
year-ago quarter. The Company believes that an increasing awareness of the Cheap Tickets brand also
contributed to growth.
Gross profits were 20.9 percent of net revenues in the first quarter of 1999, versus 19.9 percent in the
same quarter last year.
"We are exceptionally pleased that these record results were achieved in the first quarter, which is
seasonally the Company's slowest quarter of the year," said Michael J. Hartley, chairman and CEO,
Cheap Tickets, Inc. "Cheap Tickets benefited from better than expected demand for leisure travel
during this quarter. We also benefited from strong performance in our Internet business, which
accounted for 22 percent of the first quarter's gross bookings, compared with just 4 percent in the same
period last year."
During the first quarter of 1999, the Company's Internet business added approximately 332,000 new
registered users, bringing the total number of regular users to more than 750,000. This compared with
approximately 400,000 registered users added for the entire year in 1998.
The Company had cash and marketable securities of $56.6 million on March 31, 1999, as a result of an
initial public offering of 3.5 million shares of common stock, which was completed on March 19, 1999.
Approximately $5 million of the proceeds were used in the quarter to retire outstanding preferred stock
plus accrued dividends. Subsequent to this quarter end, on April 16, 1999, the underwriters elected to
exercise their overallotment option, and an additional 525,000 shares were sold at $15, which will
increase IPO proceeds by approximately $7.3 million net of underwriting fees. This additional sale will
bring the total of issued and outstanding shares of common stock to 21,468,051.
Cheap Tickets is a leading retail seller of discount tickets for domestic leisure air travel. The company
sells tickets through a toll-free number, 1-800-OKCHEAP; at its 12 retail stores; and on its Internet
site, www.cheaptickets.com. In addition, the company sells cruise tickets, auto rentals and hotel
reservations.
Statements in this press release that are not historical facts are "forward-looking" statements that involve
risks and uncertainties. Actual results may differ due to the risks stated in the company's registration
statement on Form S-1.
CHEAP TICKETS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(IN THOUSANDS EXCEPT PER SHARE AND SHARES OUTSTANDING DATA)
(UNAUDITED)
THREE MONTHS ENDED
March 31,
1999 1998
Results of Operations
Net Revenues
Non-Published Fares $55,962 $30,449
Commissions 4,567 1,949
60,529 32,398
Gross Profit 12,677 6,439
Selling, General and Administrative
Expenses 11,157 6,431
Earnings from Operations 1,520 8
Net Income $970 $26
Proforma Earnings Per Share
- Basic (A) $0.06 $(0.01)
Proforma Earnings Per Share
- Diluted (A) $0.05 $(0.01)
Earnings Per Share Diluted
(after Preferred Stock Adjustment)(A) $0.01 $(0.01)
Weighted Average Shares Outstanding:
Basic 15,081,725 14,847,322
Diluted 18,504,167 14,847,322
Note: (A) Pro-forma results show EPS results before the adjustment for
early retirement of preferred stock. Mandatory redeemable preferred
stock totaling 425,000 shares was redeemed at March 22, 1999 with proceeds
from the IPO. The difference between the carrying value of preferred
stock and the redemption value was being accreted by periodic charges to
retained earnings through July 25, 2002. With early retirement in this
first quarter the unamortized accretion amount plus preferred dividends
reduced the amount of net earnings available to common shareholders.
Other Operating Data:
Gross Bookings (in thousands)
Non-published fares 55,963 30,449
Published fares 33,777 22,305
Total Gross Bookings 89,740 52,754
Airline Tickets Sold
Call Centers & Others 262,197 162,948
Internet 80,813 8,384
Total 343,010 171,332
Registered Internet Users
Additions in First Quarter 332,332 0
Total Registered Users 752,355 0
CHEAP TICKETS, INC.
CONDENSED BALANCE SHEET
(IN THOUSANDS)
(UNAUDITED)
MARCH 31,
1999 1998
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $56,628 $9,905
TRADE RECEIVABLES 4,329 891
OTHER CURRENT ASSETS 1,055 1,298
TOTAL CURRENT ASSETS 62,012 12,094
PROPERTY & EQUIPMENT - NET 4,404 3,057
OTHER ASSETS 479 123
$66,895 $15,274
LIABILITIES & STOCKHOLDERS' EQUITY:
ACCOUNTS PAYABLE $10,164 $8,129
CURRENT INSTALLMENTS OF LONG-TERM DEBT 375 686
CURRENT INSTALLMENTS OF CAPITAL
LEASE OBLIGATIONS 655 136
INCOME TAXES PAYABLE 645 0
OTHER ACCRUED LIABILITIES 1,938 741
TOTAL CURRENT LIABILITIES 13,777 9,692
LONG-TERM DEBT AND CAPITAL
LEASE OBLIGATIONS LESS
CURRENT INSTALLATIONS 2,165 489
OTHER NON-CURRENT LIABILITIES 1,599 629
TOTAL LIABILITIES 17,541 10,810
MANDATORILY REDEEMABLE PREFERRED STOCK 0 3,875
STOCKHOLDERS' EQUITY
COMMON STOCK 21 15
PAID-IN-SURPLUS 48,242 18
RETAINED EARNINGS 1,091 556
TOTAL STOCKHOLDERS' EQUITY 49,354 589
$66,895 $15,274
SOURCE Cheap Tickets, Inc.
/NOTE TO EDITORS: The recorded Cheap Tickets FY '99 first quarter results
conference call will be available via telephone beginning Tuesday, April 26 ,
at 5 p.m. EST through Friday, April 27, at 8 p.m. EST. The dial-in number is
1-800-677-6200, PIN #2403/
/CONTACT: Stacy Lewis of Murphy O'Brien Communications, 310-586-7164,
stacy@murphyobrien.com, for Cheap Tickets, Inc.; or Dale Jorgenson of Cheap
Tickets, Inc., 808-945-7439, djorgenson@cheaptickets.com/ |
