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Joystar Announces Record Bookings and Revenue for First Quarter 2006 Friday May 12, 3:37 pm ET
ALISO VIEJO, CA--(MARKET WIRE)--May 12, 2006 -- Joystar, Inc. (OTC BB:JYSR.OB - News), one of the nation's fastest growing travel agency networks and leading seller of cruises and vacations, today announced financial results for the first quarter ended March 31, 2006. Key operating highlights for the quarter ended March 31, 2006:
-- Gross bookings increased to $18,036,630, up 1306% year-over-year and 187% sequentially from the prior quarter.
-- Revenues increased to $2,183,000, up 1710% year-over-year and 215% sequentially over the prior quarter.
-- Revenue margins (defined as revenue as a percentage of gross bookings) grew 29% (an increase of 270 basis points) to 12.1% compared to first quarter 2005.
-- Gross bookings and revenue increased sequentially for the sixth straight quarter.
-- First quarter 2006 gross bookings and revenue surpassed totals for entire 2005 year. William M. Alverson, Chairman and CEO, commented, "We experienced our strongest quarter ever; building on the foundation we have laid to be the dominant seller of complex travel in the industry. The exceptional growth we've seen this quarter is a testament to the opportunity existing in the emerging host travel agency business model. It is also a validation of our strategy to focus on organic top line growth in complex travel bookings and our professional agent network."
The substantial increases in gross bookings and revenue are due to three factors:
1. Continued rapid expansion of professional agent membership
2. Significant increases in commission levels from our preferred suppliers
3. The caliber of agent Joystar is attracting. ADVERTISEMENT
"We have been very successful in attracting professional travel agents and, at the same time, eroding our competitors' market share. In the first quarter, we added 396 agents to our network. We are very pleased with this result taking into consideration we shifted to fee-based memberships at the beginning of the year from free memberships in 2005. Many new agents were won in direct competition with other host agencies by offering a far superior value proposition and three unique hosting solutions designed to meet the varying needs of the travel agent community."
General and Administrative expenses for the quarter ended March 31, 2006 were $953,000 compared to $504,000 for the quarter ended March 31, 2005. The increase of $449,000 was due to increased headcount and resulting payrolls of $351,000 in the new Miami office, increased accounting and legal of 63,000, increased rent in Miami and California ($39,000).
Despite costs associated with the integration and expansion of our new division in Miami, the Company reduced the net loss by 54% to $321,497 in first quarter 2006 compared to $655,666 in first quarter 2005. The net loss includes a non-cash expense of $155,401 in stock issued for services.
"Throughout 2005 and continuing in the first quarter of 2006, Joystar's commission levels with our preferred suppliers increased substantially. As our network expands and commissions & overrides increase with higher bookings, we believe this will have a positive impact on the profitability of the Company," Alverson added.
About Joystar
Joystar is the one of the nation's largest and fastest-growing leisure travel agency networks and a leading seller of cruises and vacations. The Company sells complex travel products including cruises, vacation packages and group travel through its growing national sales force of virtual travel agents and online affiliates. Joystar offers comprehensive business opportunities that combine innovative technology, marketing opportunities and expert support services to the Company's independent and home-based travel agents. With Joystar, experienced and new travel agents can concentrate on promoting travel and creating client loyalty without the administrative and financial burden of owning/operating a traditional storefront travel agency.
"Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future events or results. Joystar, Inc. disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. Please refer to the documents filed by Joystar, Inc. with the Securities and Exchange Commission, which identify important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with our ability to (i) increase revenues, (ii) obtain profitability, and (iii) obtain additional financing, changes in general economic and business conditions (including in the online business and financial information industry), actions of our competitors, the extent to which we are able to develop new services and markets for our services, risks in connection with acquisitions, the time and expense involved in such development activities, the level of demand and market acceptance of our services and changes in our business strategies.
Additionally, forward-looking statements concerning the performance of the travel and leisure industry are based on current market conditions and risks, which may change as the result of certain regulatory, political or economic events, a shift in consumer travel preferences, as well as those risks and uncertainties described in the Company's filings with the Securities and Exchange Commission, which could cause actual events or results to differ materially from the events described in the forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.
Contact: Contact:
For press, contact: Tom Hormann Sr. V.P. of Communications Joystar, Inc. (919) 783-8438 thormann*joystar.com
For Investor information, contact: Todd Van Emburgh Joystar, Inc. (786) 282-3157 investors*joystar.com
-------------------------------------------------------------------------------- Source: Joystar, Inc.
-------------------- Always do your own due diligence. My posts are neither a buy, sell, or hold recommendation; and express only my personal opinion. Please consult your financial advisor before making any investment decisions. Posts: 163 | From: Ohio | Registered: Jan 2006
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Insiders have been buying, KYAW, MYINT J (not sure what position he holds) holds a little over 9 million of the oustanding shares.
-------------------- Always do your own due diligence. My posts are neither a buy, sell, or hold recommendation; and express only my personal opinion. Please consult your financial advisor before making any investment decisions. Posts: 163 | From: Ohio | Registered: Jan 2006
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posted
here are the major holders and their last reporting:
ALVERSON, WILLIAM M. 10,596,000 16-Sep-04 KYAW, MYINT J 9,030,957 21-Apr-06 <-------recent buys WEST, KATHERINE T. 1,702,000 17-Mar-05
HOLLENCREST SECURITIES LLC 81,000 .20 $26,730 31-Dec-05 SENA WELLER ROHS WILLIAMS INC. 10,000 .02 $13,900 31-Mar-06
-------------------- Always do your own due diligence. My posts are neither a buy, sell, or hold recommendation; and express only my personal opinion. Please consult your financial advisor before making any investment decisions. Posts: 163 | From: Ohio | Registered: Jan 2006
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-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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posted
anyone playing this next week? i got in at 1.10 friday before the close.
just wondering if anyone is gonna buy in
-------------------- Always do your own due diligence. My posts are neither a buy, sell, or hold recommendation; and express only my personal opinion. Please consult your financial advisor before making any investment decisions. Posts: 163 | From: Ohio | Registered: Jan 2006
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