Company Press Release
August 1, 2000
SPRINGFIELD, MO -- Form 10K-SB Filed by Travelnow.com, Inc., deemed filed Pursuant to Section 13 or 15(d) of the
Securities Act of 1934.
Subject Company: Travelnow.com, Inc. SEC File No. 0-25357
TravelNow (NasdaqSC:TNOW), providing a world-wide database of hotel, airline, cruise, and car rental reservation
information and booking capabilities, yesterday reported substantially higher revenues and gross profits for the
year ended March 31, 2000 (FY2000) compared with the year ended March 31 1999 (FY 1999).
TravelNow's total revenues for the year grew to $3.8 million, an increase of 323 percent compared with FY 1999.
For the year, Gross Profits increased 248 percent to $1.2 million.
Hotel confirmations issued at TravelNow's web site increased 4.6 times from 53,368 in FY1999 to 246,705 in FY 2000
while the cumulative number of visitors that booked travel reservations through the web site increased 5.4 times
to 417,791 for the corresponding period. Jeff Wasson, the Company's Chief Executive Officer, commented: ``Our extensive
affiliate network, which contractually uses our proprietary reservations systems, has allowed us to both significantly
and rapidly expand our customer base while achieving some of the lowest customer acquisition costs in the on-line
travel industry.''
About TravelNow
Launched in March, 1995, TravelNow was among the first real-time hotel reservation services on the Internet. Through
its system of affiliates, TravelNow provides competitive rates for more than 40,000 hotels in 5,000 cities and
140 countries. The company offers discounts of up to 65% on over 700 hotels in almost every major city and up to
40% on over 7,000 hotels around the world. In addition to hotel reservations, car, air, and cruise reservations
can also be arranged at www.travelnow.com.
NOTE: Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets follow.
-0-
TRAVELNOW.COM INC.
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31, 2000 AND 1999
----------------------------------------------------------------------
2000 1999
---- ----
REVENUES $ 3,750,942 $ 886,172
COST OF REVENUES 2,516,043 532,050
----------- -----------
GROSS PROFIT 1,234,899 354,122
----------- -----------
OPERATING EXPENSES:
GENERAL AND ADMINISTRATIVE 2,791,341 240,380
SALES AND MARKETING 254,901 86,258
----------- -----------
TOTAL OPERATING EXPENSES 3,046,242 326,638
----------- -----------
INCOME (LOSS) FROM OPERATIONS (1,811,343) 27,484
TOTAL OTHER INCOME (EXPENSE) 12,910 --
----------- -----------
INCOME (LOSS) BEFORE INCOME TAX (1,798,433) 27,484
INCOME TAX EXPENSE (BENEFIT) -- --
----------- -----------
NET INCOME (LOSS) (1,798,433) 27,484
TRAVELNOW.COM INC.
BALANCE SHEETS
MARCH 31, 2000 AND 1999
----------------------------------------------------------------------
2000 1999
---- ----
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 3,654,281 $ 6,227
Accounts receivable: 729,467 106,562
Prepaid expenses 128,273 --
----------- -----------
Total current assets 4,512,021 112,789
PROPERTY AND EQUIPMENT, Net 1,191,225 46,345
----------- -----------
TOTAL $ 5,703,246 $ 159,134
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable $ 1,098,071 $ 83,066
Accrued liabilities 279,947 44,596
Cumulative preferred stock dividends 85,808 --
Deferred revenue 14,052 --
Current portion of notes payable -- 58,538
Notes payable to stockholders -- 10,000
----------- -----------
Total liabilities 1,477,878 196,200
COMMITMENTS AND CONTINGENCIES
REDEEMABLE, CONVERTIBLE PREFERRED STOCK 4,340,694 --
STOCKHOLDERS' DEFICIT:
Common stock 103,493 60,095
Additional paid-in capital 1,896,931 220,156
Accumulated deficit (2,115,750) (317,317)
----------- -----------
Total stockholders' deficit (115,326) (37,066)
----------- -----------
TOTAL $ 5,703,246 $ 159,134
=========== ===========
Information in this press release contains forward-looking statements: These statements involve risks and uncertainties
that could cause actual results to differ materially. There is no assurance the above-described events will be
completed. There can be no assurance of the ability of the Company to achieve sales goals, obtain contracts or
financing, consummate acquisitions or achieve profitability in the future. The above and additional factors are
discussed in detail in the Company's filings with the SEC.
--------------------------------------------------------------------------------
Contact:
TravelNow.com
Ross Summers, 417/864-3600 x1304
or
Keating Investor Relations
Mark Furman, 973/376-9300