Results from Uniglobe.

Cruise specialists, Uniglobe.com has announced financial results for the quarter ended September 30, 2001.
During 2000, the Company announced it was refocusing its business on the high-margin retail cruise sector and on retail air, car, and hotel sales and was phasing out its wholesale division and eliminating fulfillment activities for UNIGLOBE InHouse Travel home-based agents. As a result, the Company`s financial results for the first nine months of 2001 and for the third quarter of 2001 reflect its focus on the Company`s retail-only business and are being compared to the pro forma retail-only business of last year.


Results for First Nine Months of 2001

- Retail gross travel bookings were US$16.4 million for the first nine months of 2001 compared with retail gross travel bookings of US$21.0 million for the first nine months of 2000.

- Retail cruise bookings were US$8.3 million for the first nine months of 2001 compared with retail cruise bookings of US$8.7 million for the same period last year.

- Revenues from retail operations were US$1.54 million for the first nine months of 2001 compared with revenues from retail operations of US$1.87 million for the first nine months of 2000.

- The net loss was US$2.7 million for the first nine months of 2001, down 43 percent from a net loss of US$4.7 million for the same period last year.


Results for Third Quarter 2001

- Retail gross travel bookings were US$3.94 million in the third quarter of 2001 compared with retail gross travel bookings of US$7.07 million in the third quarter of 2000.

- Revenues from retail operations were US$426,332 in the third quarter of 2001 compared with revenues from retail operations of US$604,212 in the same quarter last year.

- Cruise commission revenues were US$312,719 in the third quarter of 2001 compared with cruise commission revenues of US$389,201 in the third quarter of 2000.

- The net loss was US$982,018, or US$0.04 per share, in the third quarter of 2001 compared with a net loss of US$1,006,113, or US$0.04 per share, in the same quarter last year.


Although there was a 29 percent reduction in retail revenues experienced in the third quarter of 2001 compared with the third quarter of 2000, the elimination of home-based fulfillment activities and the wholesale division reduced expenses enough to produce a smaller loss year over year. Cruise commissions made up 73.4 percent of the Company`s revenues this quarter whereas air, car and hotel commissions made up 18.8 percent. Cruise commission revenues went down by 20 percent this quarter whereas air, car, and hotel revenues went down by 52 percent.


“Recent events relating to the terrorist attacks on New York and Washington on September 11 have affected the sales and operations at Uniglobe.com. We immediately experienced more than a 50 percent drop-off in bookings as travelers elected to cancel or delay their travel plans. Since then our sales seem to have been fluctuating in conjunction with events reported in the news. Encouragingly, last week we saw a large increase in calls and bookings and expect this trend will continue as travelers` confidence levels return,” said Christopher Charlwood, President and Chief Operating Officer of Uniglobe.com.

ADVERTISEMENT


Management made two decisions late in the quarter to help weather the significant drops in sales and revenues. The Company reduced the number of staff members by 30 percent and also initiated a US$15 service fee for customers buying air tickets on the site. The staff reduction in addition to other cost cuts is expected to reduce expenses by US$50,000 per month while the new transaction fees are expected to increase revenues by US$25,000 per month. Recent announcements by the major cruise lines that they will pay 20 percent commissions will also help revenues in the fourth quarter.


“Uniglobe.com`s cash balance on September 30, 2001, was US$3.05 million and we expect that these funds will last us at least 12 months if business returns to more normal levels. In the meantime, we continue to aggressively look for a strategic merger partner to help increase customer flow to our site,” explained Charlwood.

 

www.uniglobe.com


——-