SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported) APRIL 15, 1999
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TRAVEL SERVICES INTERNATIONAL, INC.
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(Exact name of registrant as specified in its charter)
FLORIDA
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(State or other jurisdiction of incorporation)
000-29298 52-2030324
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(Commission File Number) (IRS Employer Identification No.)
220 CONGRESS PARK DRIVE
DELRAY BEACH, FLORIDA 33445
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(Address of principal executive offices, including Zip Code)
Registrant's telephone number, including area code (561) 266-0860
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N/A
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(Former name or former address, if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS.
Travel Services, International, Inc., d/b/a/ The Travel Company
(the "COMPANY") announced in a press release dated April 15, 1999, that it's
earnings for the first quarter of 1999 will be less than analyst's expectations.
This description is elaborated more extensively, and is qualified in its
entirety by reference to the Company's Press Release attached as Exhibit 99.1
hereto, which Exhibit is incorporated herein by reference.
<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
(c) Exhibits
EXHIBIT
NUMBER DESCRIPTION
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99.1 Press release, dated April 15, 1999, announcing that
Registrant's first quarter 1999 earnings will not meet
analysts' expectations.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TRAVEL SERVICES
INTERNATIONAL, INC.
Dated: April 16, 1999 By: /s/ JILL M. VALES
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Jill M. Vales
Senior Vice President and Chief
Financial Officer
<PAGE>
EXHIBIT INDEX
EXHIBIT DESCRIPTION
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99.1 Press release, dated April 15, 1999, announcing that
Registrant's first quarter 1999 earnings will not meet
analysts' expectations.
EXHIBIT 99.1
[TRAVEL SERVICES LOGO]
AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD
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JILL M. VALES JOE CALABRESE CHRISTINA HOWARD MARTIN GITLIN
CHIEF FINANCIAL OFFICER (GENERAL INFO.) (ANALYST INFO.) (MEDIA INFO.)
(561) 266-0860 (212) 661-8030 (212) 661-8030 (212) 661-8030
FOR IMMEDIATE RELEASE
APRIL 15, 1999
THE TRAVEL COMPANY
ANNOUNCES THAT FIRST QUARTER 1999 EARNINGS
WILL NOT MEET ANALYSTS' EXPECTATIONS
DELRAY BEACH, FL., APRIL 15, 1999- Travel Services International, Inc., dba The
Travel Company (Nasdaq: TRVL), a leading specialized distributor of leisure
travel services, announced today that the Company's earnings for the first
quarter of 1999 will be less than analysts' expectations.
Expected net revenues and earnings were negatively impacted by performance in
the cruise reporting segment. The Company, based in part on the significant
internal growth experienced in the cruise reporting segment in 1998,
substantially increased the number of sales personnel during the fourth quarter
of 1998 and the first quarter of 1999 at its cruise call centers in anticipation
of significant increases in sales volume. Commencing in February 1999, the
Company began to refine its tactical marketing initiatives implemented earlier
in the year and to focus on enhancing the selling skills of newer cruise sales
agents to improve call to booking conversion rates. However, certain of the
marketing initiatives, including marketing cruise vacations under the new trade
name "The Travel Company", have thus far not been as successful as earlier
anticipated. Although cruise transaction volume increased over the prior year, a
lower than expected increase in sales volume, coupled with greater than expected
net marketing expenses, have contributed to a decline in gross profit margins
and earnings in the cruise reporting segment in the first quarter of 1999. As a
result, the Company believes diluted earnings per share for the first quarter of
1999 will be in the range of $0.05 to $0.07.
<PAGE>
The Company believes operating results in the first quarter of 1999 in its
outbound, lodging and other reporting segments, as well as the level of
unallocated corporate expenses, will be in line with or better than
expectations.
Joseph Vittoria, the Company's Chairman and Chief Executive Officer, commented:
"We are very disappointed with the performance of the cruise segment of our
business so far this year. Our expanded marketing initiatives in the cruise
segment, including the Vacation Directory mailed in mid March, have not yielded
the results anticipated. We are committed to the improvement of our strategic
and tactical cruise marketing plan and are evaluating a variety of operational
and other changes and initiatives for the Company. That said, the Company's
business is sound. It continues to grow and operate profitability and has
adequate capital resources to expand and develop. We continue to believe that
our significant investments in developing successful brands and leveraging
technology will result in the realization of benefits in 1999 and beyond."
The Company is currently assessing the potential impact of these and other
matters on operating results for the remainder of 1999 and expects to make some
public comment in this regard at or prior to the time it releases first quarter
1999 earnings. At that time the Company also expects to schedule a conference
call with equity analysts covering the Company and institutional investors.
The Travel Company is a leading specialized distributor of travel products
including cruise vacations, vacation packages, domestic and international
airline tickets and European auto rentals, and is a leading provider of travel
services such as electronic hotel reservation services, specialized hotel
programs and services and incentive travel programs. The Company provides its
services to both travel agents and travelers, offering a unique combination of
specialized expertise, the ability to compare options from multiple travel
providers and competitive prices.
# # #
STATEMENTS CONTAINED IN THIS PRESS RELEASE REGARDING FUTURE FINANCIAL AND
OPERATING PERFORMANCE AND RESULTS, SALES, REVENUE, INDIVIDUAL REPORTING
SEGMENTS, MARKETING PLANS AND INITIATIVES, ACQUISITIONS, OPERATIONAL
INITIATIVES, TECHNOLOGY, THE ECONOMY AND OTHER STATEMENTS THAT ARE NOT
HISTORICAL FACTS ARE FORWARD LOOKING STATEMENTS. PAST PERFORMANCE IS NOT
NECESSARILY INDICATIVE OF FUTURE RESULTS, AND ACTUAL RESULTS COULD DIFFER
SIGNIFICANTLY FROM ANY RESULTS ANTICIPATED IN ANY FORWARD LOOKING STATEMENT. THE
FORWARD LOOKING STATEMENTS ARE SUBJECT TO NUMEROUS RISKS AND UNCERTAINTIES,
INCLUDING BUT NOT LIMITED TO THE RISKS ASSOCIATED WITH: SUCCESSFUL DEPLOYMENT
AND INTEGRATION OF SYSTEMS, FACTORS AFFECTING INTERNAL GROWTH AND MANAGEMENT OF
GROWTH, THE COMPANY'S ACQUISITION STRATEGY AND AVAILABILITY OF ADEQUATE
FINANCING, THE COMPANY'S ABILITY TO IMPLEMENT ITS STRATEGIC TECHNOLOGY,
MARKETING AND OPERATIONAL INITIATIVES, DEPENDENCE ON TECHNOLOGY AND TRAVEL
PROVIDERS, THE TRAVEL INDUSTRY, THE COST AND AVAILABILITY OF ADVERTISING,
SEASONALITY, QUARTERLY FLUCTUATIONS AND GENERAL ECONOMIC CONDITIONS, AND OTHER
FACTORS, INCLUDING THOSE DISCUSSED IN THE COMPANY'S FORM 10-K FOR THE YEAR ENDED
DECEMBER 31, 1998.
