Press Release: travelbyus.com Ltd.
March 5, 2001
WHITE ROCK, British Columbia -- travelbyus.com Ltd. (Toronto Stock Exchange: TBU; Frankfurt Stock Exchange: TVB)
reported its financial results for the year ended September 30, 2000.
Financial Summary Figures in 000's of Cdn. dollars Year ended Nine months ended September 30, September 30, 2000 1999 Gross travel bookings (unaudited) $63,362 -- Revenues $18,209 -- Loss before amortization of goodwill ($43,900) ($1,564) Write-off and amortization of goodwill ($76,099) -- Loss ($119,999) ($1,564) Loss per share ($1.71) ($0.05) Cash flow from operations ($17,263) ($1,130) Cash $3,016 $3,256 Total assets $53,554 $12,702 Long-term debt -- $11,950 Capital stock $137,723 $12,846 Total shareholders' equity $31,910 $232
The loss for the period in part reflects management's decision to center Company operations in Reno Nevada. Significant
investments in hiring new personnel, website development and other capital expenditures have been made in anticipation
of higher sales volumes. The higher sales volumes are to be realized as a result of the rollout of the Company's
various marketing programs, including the 1-800-i-TRAVEL cooperative marketing program, and completion of the website
booking engine and SiteRabbit platform. The airfare booking engine, supported by the widely acclaimed ITA Software
search engine, was introduced in November, 2000. The SiteRabbit platform, which was launched two weeks ago, will
provide travelbyus affiliated travel agencies with an agent-customized website. The agencies will use the sites
to communicate with their customers to also provide both the customers and agencies with access to the wide range
of unique travelbyus merchant travel products. Management is currently taking significant steps to complete the
consolidation of operations and reduce operating expenses.
Included in the consolidated loss before amortization of goodwill for 2000 are one-time writedowns and provisions
against certain assets totalling $26,437,000. Management has elected to record these adjustments to ensure the
future estimated gross revenues from these assets exceeds their respective carrying values. In addition, due to
its limited operating history with the existing business model, management has reviewed the carrying value of the
goodwill arising from the acquisitions completed during the year and has decided to record a charge of $76,099,000
to write-off the balance.
Subsequent to year-end, management has raised a total of U.S. $9,250,000 in various debt financings and continues
to actively pursue additional financing for the company's operations.
travelbyus is a vertically integrated travel company serving over 2,000 member travel agencies and is poised to
help design the future of the travel business. Its mission is to become the world's leading, fully integrated travel
network that creates value by providing more information, greater convenience and superior service to both the
leisure traveler and the travel agent. It will do this by utilizing unique technology and an advanced distribution
system that serves both the travel agent and the consumer to continuously offer the right product to the right
customer at the right time.
Except for the historical information contained herein, this press release contains statements that constitute
forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking
statements inherently involve risks and uncertainties that could cause actual results to differ materially from
the forward-looking statements. Factors that may cause or contribute to such differences include, among other things,
technological developments, uncertainties of the Internet, changes in business conditions and the economy in general,
changes in governmental regulations, unforeseen litigation and other risk factors identified in the Company's public
filings under "Risk Factors." The Company undertakes no obligation to update these forward-looking statements
for revisions or changes after the date of this press release.
For further information
Bill Kerby, Chief Executive Officer of travelbyus, 604-541-2400
Web site: http://www.travelbyus.com