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Any idea what the heck went down 2day??
I hate this stupid stock!
Wow this slacker made a move today! Impressive ;)
Form 8-K for UNIVERSAL TRAVEL GROUP
3-Sep-2008
Unregistered Sale of Equity Securities, Other Events, Financial Statements
Item 3.02 Unregistered Sales of Equity Securities
Securities Purchase Agreement
On August 28, 2008, Universal Travel Group (the "Company") entered into a Securities Purchase Agreement with Access America Fund, LP, Chinamerica Fund LP, Pope Investments II LLC, Heller Capital Investments, LLC, CGM as C/F Ronald I. Heller IRA, Investment Hunter, LLC, MARed Investments, High Capital Funding, LLC, and Merrill Lynch, Pierce, Fenner & Smith, FBO Beau L. Johnson (collectively, the "Buyers") to sell to the Buyers 4,588,708 shares of common stock, par value $0.001 of the Company ("Common Stock") and warrants to purchase 2,294,356 shares of Common Stock for an aggregate purchase price of $7,112,500 (the "Financing").
Use of Proceeds
The Company will use the proceeds of sale for general corporate purposes, including general and administrative expenses. Specifically, the Company agreed that it will deposit $500,000 of the proceeds in escrow to pay the fees and expenses in connection with a public relations and investor relations campaign of a design and type satisfactory to a representative of the Buyers designated in the Escrow Agreement. Such amount shall be released only upon the dual signatures of the CEO of the Company and such representative of the Buyers designated in the Escrow Agreement. The Company agrees that the public relations and investor relations campaign shall include a "retail component" involving the use of direct mail to assist in the repositioning of the Company in the minds of the general public. The Company also agreed that it will use its commercially reasonable efforts to identify and engage a Chief Financial Officer who shall be fluent in English and Mandarin, who understands and has a working knowledge of United States generally accepted accounting principles, who has had significant responsibility for the preparation and filing of quarterly, annual and current reports with the SEC and who has experience working with or in United States capital market participants. The Company agreed that it would deposit $600,000 of the proceeds in escrow under the Escrow Agreement, to be released only upon the dual signatures of the CEO of the Company and the representative of the Buyers designated in the Escrow Agreement following the engagement of a Chief Financial Officer.
Registration Rights
The Company agreed to grant certain registration rights to the Buyers as more particularly set forth under "Registration Rights Agreement" below.
Employee Stock Option Plan
The Company agreed to enact an employee stock option plan, subject to the approval of the Buyers, for certain key members of management covering options to purchase a total of 6,600,000 shares of Common Stock of the Company ("Plan") within 60 days of the closing of the Financing. The options to collectively purchase 1,100,000 shares of Common Stock under the said Plan shall vest on each anniversary of the grant until the end of six years, whereby all the options to purchase the 6,600,000 shares of Common Stock shall vest and be immediately exerciseable. However, in the event (i) the Company reports an after tax Net Income of $14,000,000 in its Annual Report on Form 10-K filed with the SEC for its fiscal year 2008, then options to purchase 2,200,000 shares of Common Stock in the aggregate under the Plan shall vest and become immediately exercisable and each grantee of such options shall be entitled to exercise his/her options rateably, (ii) the Company reports an after tax Net Income of $18,000,000 in its Annual Report on Form 10-K filed with the SEC for its fiscal year 2009, then options to purchase another 2,200,000 shares of Common Stock in the aggregate under the Plan shall vest and become immediately exercisable and each grantee of such options shall be entitled to exercise his/her options rateably and (iii) the Company reports an after tax Net Income of $22,000,000 in its Annual Report on Form 10-K filed with the SEC for its fiscal year 2010, then options to purchase another 2,200,000 shares of Common Stock in the aggregate under the Plan shall vest and become immediately exercisable and each grantee of such options shall be entitled to exercise his/her options rateably. "Net Income" shall be defined in accordance with the United States generally accounting principles and shall not, for the purposes of the Securities Purchase Agreement and the transactions contemplated hereby include:
(i) the offering and transactional costs associated with the Financing, including without limitation, legal and audit costs, registration and filing fees;
(ii) losses the Company has suffered or reasonably calculated to have suffered as a result of a force majeure event, which shall mean (i) acts of God such as earthquakes with an intensity of more than 7.0 on the Richter scale in geographic areas where the Company derives more than 50% of its revenue, or (ii) snow storms, rainstorms, floods and other natural catastrophes of such intensity and/or duration that exceed the average monthly amount for that geographic area by more than 100% in geographic areas in which the Company derives more than 50% of its revenue;
(iii) the costs and expense incurred by the Company in 2008 and incurred in 2009 in establishing the Plan and granting stock options to Ms. Jiangping Jiang thereunder; and
(iv) any compensation expense incurred by the Company in connection with the release of any escrow shares under the Make Good Securities Escrow Agreement between the Company, the Buyers, the Principal Shareholder, and Sichenzia Ross Friedman Ference LLP, as Escrow Agent to the Principal Shareholder. (See below)
Reverse Split
The Company is also obligated to use its commercially reasonable efforts to effect a two-for-one (2:1) reverse split of its Common Stock within 180 days of the closing of the Financing.
The Financing closed on August 29, 2008.
Warrant
Each warrant has an Exercise Price of $2.71 and a term of 5 years from the date of issuance. The Company shall have the right at any time, on written notice given not less than forty five (45) days prior to the Redemption Date (which is the date the warrants are to be redeemed), to redeem the outstanding warrants at the Redemption Price of one cent ($.01) per share of Common Stock issuable upon exercise of the warrants, provided (i) the Market Price (as defined in the warrant) of the Common Stock shall equal or exceed $8.13 for at least thirty
(30) Trading Days prior to the call for redemption by the Company, (ii) the shares of Common Stock of the Company are trading on a recognized U.S. share exchange, which shall mean the New York Stock Exchange, the American Stock Exchange or the Nasdaq Stock Market (including the Global Select, Global and Capital Markets) and (iii) the Company is current in all its reporting obligations under the Securities Exchange Act of 1934. All warrants must be redeemed if any warrants are redeemed.
The Company may only exercise the right of redemption of the warrants if a registration statement covering the sale by the holder(s) of the shares of Common Stock issuable upon exercise of the warrants is current and effective on each day in the period commencing on the first day of call for redemption and ending sixty (60) days after the Redemption Date. In the event that, at any time subsequent to the date on which the warrants are called for redemption and before the Redemption Date, the shares of Common Stock issuable upon exercise or conversion of the warrants are not subject to a current and effective registration statement, the Company's right to call the warrants for redemption shall terminate with respect to all warrants that have not then been exercised or converted. The Redemption Date shall be postponed for two (2) Trading Days for each day after the warrants are called for redemption that the Market Price of the Common Stock is less than the $8.13; provided, however, that if the Market Price shall be less than $8.13 for ten (10) consecutive Trading Days or fifteen (15) Trading Days during the period from the date the warrants are called for redemption to the Redemption Date, the Company's right to redeem any warrants not theretofore exercised or converted shall terminate, subject to the right of the Company to call the remaining warrants for redemption.
If the Company were to sell or issue Common Stock at a price which is less than the Exercise Price then in effect, or warrants, options, convertible debt or equity securities with an exercise price per share or a conversion price which is less than the Exercise Price then in effect, the Exercise Price shall be adjusted immediately thereafter so that it shall equal the price determined by multiplying the Exercise Price in effect immediately prior thereto by a fraction, the numerator of which shall be the sum of the number of shares of Common Stock outstanding immediately prior to the issuance of such additional shares and the number of shares of Common Stock which the aggregate consideration received or receivable for the issuance of such additional shares would purchase at the Exercise Price then in effect, and the denominator of . . .
Item 8.01. Other Events
On September 2, 2008, the Company issued a press release annexed hereto as Exhibit 99.1 hereto.
The information in this report, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and shall not be incorporated by reference in any registration statement or other document filed under the Securities Act or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filings, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
4.1 Form of Warrant
10.1 Securities Purchase Agreement dated August 28, 2008 between the Company and the Buyers.
10.2 Make Good Securities Escrow Agreement dated August 28, 2008 between the Company, the Buyers, the Principal Shareholder and the Escrow Agent
10.3 Escrow Agreement dated August 28, 2008 between the Company, the Buyers, the Principal Shareholder and the Escrow Agent
10.4 Registration Rights Agreement between the Company and the Buyers dated August 28, 2009
10.5 Lock-Up Agreement between Company and the Principal Shareholder dated August 28, 2008.
99.1 Press Release, September 2, 2008, issued by Universal Travel Group.
Add UTVG.OB to Portfolio Set Alert Email to a Friend
Press Release Source: Universal Travel Group Inc.
Universal Travel Group Closes $7.11 Million PIPE Financing
Wednesday September 3, 8:00 am ET
Group of Seasoned Institutional Investors Acquire an Additional 5MM Shares of Stock from a Non-Management Shareholder
SHENZHEN, China, Sept. 3 /Xinhua-PRNewswire-FirstCall/ -- Universal Travel Group Inc. (OTC Bulletin Board: UTVG - News; ''Universal Travel Group'' or the ''Company''), a growing travel services provider in the People's Republic of China specializing in online and customer representative services to the travel service industry offering packaged tours, air ticketing, hotel reservation and air cargo agency services, today announced that it has successfully closed a private placement financing with established institutional investors with extensive experience investing in the People's Republic of China including Chinamerica Fund LP, Access America Fund, Pope Investments II LLC, Heller Capital, and Investment Hunter, LLC (collectively, ''Investors''). In the PIPE transaction, the Company issued and sold to Investors approximately 4.8 million shares of the Company's common stock at a purchase price of $1.55 per share, for an approximate aggregate purchase price of $7.11 million, which closed on August 29, 2008
ADVERTISEMENT
Proceeds from the private placement will be used for general corporate development, specifically projects relating to online integration.
''We are determined to capture the opportunities presented by the tourism and business travel markets in China and will use the proceeds to fuel our growth initiatives,'' said Ms. Jiangping Jiang, CEO of Universal Travel Group. ''We are also pleased that such respectable institutional investors have recognized us and placed their confidence in our long-term growth plans."
''We are very excited about the growth prospects of Universal Travel Group,'' stated Christopher Efird of Access America. ''Given the value of other public travel services providers, we believe that Universal Travel Group is one of the Chinese companies in the space with the most potential to build on its current platform to provide premium services to consumers and build significant franchise value for its shareholders.''
In addition to the PIPE transaction, on August 14, 2008, Access America Fund, Chinamerica Fund LP and Pope Investments II LLC purchased 5 million shares of UTVG from a non-management shareholder of the Company. The Stock Purchase Agreement included a mutual general release of all future claims from China Finance, Inc. and affiliates. Information about the private sale of 5 million shares is available in the Company's current report on Form 8-K which was filed with the Securities and Exchange Commission on August 1, 2008.
"While we did not receive any proceeds from the 5 million share purchase transaction, we were pleased to see that the shares are now held by long term institutional investors that have track records of success in growth investments,'' said Ms. Jiang.
''After several months of due diligence, including in-depth analysis of the Chinese travel space, we believed this dynamic company was significantly undervalued. We are hopeful that when the investment community at large recognizes that a group of sophisticated institutional investors with successful track records investing in, and supporting Chinese companies have accumulated a meaningful position in UTVG that, over time, shareholder value will rise to intrinsic levels. In addition to acquiring this large block of stock from a single non-management shareholder, we had enough confidence in the Company to place the PIPE financing at a premium to the retail price per share in the open market, something rarely done in our space,'' said Beau Johnson of Chinamerica Fund.
The securities issued in the PIPE have not been registered under the Securities Act of 1933, as amended, and may not be sold by the investor in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements. The Company has agreed to file a registration statement covering the re-sale of the securities by the investor.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About Universal Travel Group Inc.
Universal Travel Group, a fast growing travel services provider in China, is engaged in providing reservation, booking, and domestic and international travel and tourism services throughout China via the internet and through customer representatives. Under the theme "Wings towards a more colorful life" the company's core services include tour packaging for customers, booking services for air tickets and hotels as well as air cargo transportation. In 2007, Universal Travel Group completed the acquisitions of Speedy Dragon, specializing in air cargo transportation; Xi'an Golden Net, specializing in travel packaged tours; Shanghai LanBao, specializing in hotel reservation and Foshan Overseas International, a China-based company that handles domestic and international travel inquiries. Universal Travel's goal is to become China's leading travel services provider in all fields of the tourism industry including the aviation, cargo, hotel booking and tour packaging segments. For more information, visit http://us.cnutg.com .
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain statements that may include 'forward- looking statements' within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are 'forward-looking statements'. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company's ability to successfully expand its market presence and those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward- looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Couldn't even bask in the afterglow of CTRP's earnings!
We're back to the good 'ol 20k volume!!
Universal Travel Group Announces Record Second Quarter 2008 Results
Revenue Climbs 104.2% year-over-year to $14.3 Million
SHENZHEN, China, Aug. 6 /Xinhua-PRNewswire-FirstCall/ -- Universal
Travel Group (OTC Bulletin Board: UTVG) ("Universal Travel Group" or the
"Company"), a fast growing travel services provider in China specializing
in online and customer representative services to the travel service
industry offering packaged tours, air ticketing, hotel reservation and air
cargo agency services, today reported financial results for the second
quarter ended June 2008.
Second Quarter of 2008 Highlights
-- Revenues more than doubled year-over-year to a record $14.3 million
-- Gross profit increased 58.8% to $4.2 million
-- Net income was $2.1 million, or $0.057 per diluted share
Second Quarter of 2008 Results
Revenue for the second quarter of 2008 increased to a record of $14.3
million, up 104.2% from $7.0 million in the second quarter of 2007. This
increase in revenue was primarily due to the company's strategic expansion
into the hotel reservations and packaged tours businesses through the
acquisitions of Xi'an Golden Net Travel Service Company Limited, Shanghai
Lanbao Travel Service Company Limited and Foshan Overseas International
Travel Service Co., Ltd.
Gross profit for second quarter of 2008 was $4.2 million, up 58.8% from
$2.6 million in the second quarter of 2007. Gross margin for the quarter
was 29.0% compared to 37.3% in the same period a year ago. The decline in
gross margin was the result of the acquisitions of businesses with lower
gross margins in 2007.
Net income in the second quarter of 2008 was $2.1 million or $0.057 per
fully diluted share, up 28.0% from $1.7 million, or $0.051 per fully
diluted share in the same period of 2007. Net margin in the second quarter
of 2008 was 14.7% compared with 23.5% in the second quarter of 2007.
"We are pleased to announce the record revenues in the second quarter
of 2008, which reflects the very strong demand for travel services in China
and our success in introducing differentiated, high value package tours and
other products that are well suited to the tastes of Chinese consumers,"
said Ms. Jiangping Jiang, Chairperson and CEO of Universal Travel Group.
"The synergies as the result of integration of the different business
segments have weathered the effects of the earthquakes in May 2008 on our
business, and will allow the Company to provide multiple products to
satisfy customers' travel needs and strengthen our financial performance."
Universal Travel Group's strong revenue growth in the second quarter of
2008 was the result of the Company's acquisitions combined with its steady
organic growth despite seasonality and the occurrence of unexpected events.
Revenues generated from the hotel reservations and packaged tour services
comprised 9.8% and 58.9% of total revenue, respectively. Revenue from
Universal Travel Group's air-ticketing segment increased 5.5% to $1.9
million for the second quarter of 2008 from $1.8 million for the same
period last year. This increase was due to seasonality of the travel
industry. Revenue generated by the air cargo agency segment for the second
quarter of 2008 was $2.5 million compared to $5.2 million for the same
period of 2007. The 51.0% decline was due to the increase in oil prices,
and increased security inspection on imports and exports due to the 2008
Beijing Olympics.
For the second quarter of 2008, selling, general and administrative
expenses increased 90.2% to $1.3 million, or 8.7% of revenue, from $0.7
million, or 9.4% of revenue in the same period of 2007. The increase in
selling, general and administrative expenses was mainly due to expenses
occurred in operating the Xi'an Golden Net Travel Service Company Limited,
Shanghai Lanbao Travel Service Company Limited and Foshan Overseas
International Travel Service Co., Ltd. The decline in selling, general and
administrative expenses as a percentage of revenue was due to operational
efficiencies.
Stock based compensation was due to options issued to U.S independent
directors.
Operating income in the second quarter of 2008 was $2.9 million, up
46.5% from $2.0 million in the second quarter of 2007.
Interest expense in the second quarter of 2008 was $28,297 compared to
$20,302 in the comparable period a year ago. The increase in interest
expense was due to short term bank loans to finance the Company's
expansion.
Six Month Financial Results
For the first six months of 2008, revenue increased to $24.4 million,
up 74.6% from $14.0 million in the first six months of 2007. Gross profit
increased 43.7% in the first six months of 2008 to $7.0 million from $4.9
million in the comparable period a year ago. Gross margin was 28.7% in the
first six months of 2008 compared to 34.9% in the first six months in 2007.
Net income for the first half of 2008 was $3.6 million or $0.096 per fully
diluted share, up 55.2% from $2.3 million, or $0.071 per fully diluted
share in the first half of 2007.
Financial Condition
As of June 30, 2008, Universal Travel Group had $5.5 million in cash
and cash equivalents, including short term borrowings of $1.7 million. As
of June 30, 2008, Universal Travel Group had $6.5 million in total
liabilities. Shareholders' equity stood at $25.9 million on June 30, 2008,
up from $21.7 million on December 31, 2007. Working capital was $12.2
million. Net cash from operating activities during the first half of 2008
was $1.4 million.
Business Outlook
China's double digit growth in its GDP and its 10% growth rate in
domestic vacation and commercial travel market are expected to continue
their trend over the next 10 years. This creates a great opportunity for
Universal Travel Group to capture a greater share of this fast-growing
travel market. In China, more than 50% of internet users book hotels
through the internet, and this option has gradually replaced traditional
phone call bookings as the primary method. Furthermore, China is expected
to be one of the most attractive countries for tourism; with developed
cities on the east coast and southern part of China, the western region has
its own tourism opportunities due to its wonderful natural resources and
rich cultural landscapes, which have already attracted many domestic and
overseas travelers.
After careful assessment of the devastating earthquake in Sichuan
Province on May 12, 2008 on Universal Travel Group's business, the Company
continues to believe it can achieve its previously stated targets of
revenue between $69 million and $73 million and net income between $12
million and $14 million for the year 2008, not including stock based
compensation.
"We initiated our on-line strategy in the second quarter of 2008, and
have been able to capture market share from businesses and consumers in our
packaged tours, hotel reservation and air ticketing segments. The second
quarter of each year is normally the low season. However, due to our online
initiatives, we achieved a 60% revenue increase in hotel bookings
quarter-to- quarter, and a 13% revenue increase in air-ticketing
quarter-to-quarter. Our online strategy has created synergies among the
Company's four segments, providing ample cross-marketing opportunities,
while strengthening our pricing and bargaining power," stated Ms. Jiang.
The Company is optimistic about the remainder of the year. The summer
is usually very strong seasonally and Universal Travel Group should see
additional strength in its business due to the 2008 Beijing Olympics. The
Company made a number of critical, strategic acquisitions in 2007 but its
focus in 2008 is on achieving strong organic growth and creating strong
synergies among acquired companies.
Conference Call Information
Management will conduct a conference call at 9:00 am EST on Thursday,
August 7, 2008 to discuss its second quarter 2008 results. Hosting the call
will be Crocker Coulson, President of CCG, joined by Ms. Jiangping Jiang,
Chairperson and Chief Executive Officer, Mr. Huijie Gao, Vice President of
Corporate Finance and Mr. Jing Xie, Vice President. To participate in the
live conference call, please dial the following number approximately 15
minutes prior to the scheduled conference call time: 888-482-0024.
International callers should dial 617-801-9702. When prompted by the
operator, please mention Conference Passcode 780 636 61. If you are unable
to participate in the call at this time, a replay will be available for 14
days starting on Thursday August 7 at 11:00 a.m. Eastern Daylight Time. To
access the replay, please dial 888-286-8010 and enter the passcode
12881388. International callers should dial 617-801-6888 and enter the same
passcode 12881388.
About Universal Travel Group
Universal Travel Group, a fast growing travel services provider in
China, is engaged in providing reservations, bookings, and domestic and
international travel and tourism services throughout China via the internet
and through customer representatives. Under the theme "Wings towards a more
colorful life" the company's core services include tour packaging for
customers, booking services for air tickets and hotels as well as air cargo
transportation. In 2007, Universal Travel Group completed the acquisitions
of Speedy Dragon, specializing in air cargo agency; Xi'an Golden Net,
specializing in travel packaged tours; Shanghai LanBao, specializing in
hotel reservations and Foshan Overseas International, a China-based company
that handles domestic and international travel inquiries. Universal Travel
Group's goal is to become China's leading travel services provider in all
fields of the tourism industry including the aviation, cargo, hotel booking
and tour packaging segments. For more information, visit
http://us.cnutg.com .
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995
This press release contains certain statements that may include
'forward- looking statements' within the meaning of federal securities
laws. All statements, other than statements of historical facts, included
herein are 'forward-looking statements'. Although the Company believes that
the expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. Investors should not place undue
reliance on these forward-looking statements, which speak only as of the
date of this press release. The Company's actual results could differ
materially from those anticipated in these forward-looking statements as a
result of a variety of factors, including the Company's ability to
successfully expand its market presence and those discussed in the
Company's periodic reports that are filed with and available from the
Securities and Exchange Commission. All forward- looking statements
attributable to the Company or persons acting on its behalf are expressly
qualified in their entirety by these factors. Other than as required under
the securities laws, the Company does not assume a duty to update these
forward-looking statements.
-- Financial tables follow --
UNIVERSAL TRAVEL GROUP
CONSOLIDATED BALANCE SHEETS
(Amounts in U.S. dollars)
JUNE 30, 2008 and DECEMBER 31, 2007
2008 2007
ASSETS
Current Assets
Cash and cash equivalents 5,489,737 2,671,684
Accounts receivable, net 7,112,192 5,403,820
Other receivables and deposits, net 328,457 1,297,426
Refundable acquisition deposit -- 1,453,050
Due from shareholders 267,055 1,444,818
Trade deposit 4,773,333 2,650,744
Advances 655,977 616,861
Prepaid expenses 84,403 713,668
Total Current Assets 18,711,154 16,252,071
Property & equipment, net 120,675 127,393
Intangible assets 1,762 18,626
Goodwill 13,526,809 13,526,809
13,649,246 13,672,828
Total Assets 32,360,400 29,924,899
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Notes payable - bank 1,107,872 1,288,554
Note payable - others 599,737 1,576,750
Accounts payable and accrued expenses 2,750,295 3,604,666
Customer deposits 1,342,918 1,132,886
Income tax payable 681,211 664,995
Total Current Liabilities 6,482,033 8,267,851
Stockholders' Equity
Common stock, $.001 par value,
70,000,000 shares authorized,
37,031,258 and 36,809,036
issued and outstanding 37,032 36,810
Additional paid in capital 8,673,671 8,601,534
Other comprehensive income 1,116,566 545,164
Statutory reserve 372,144 372,144
Retained earnings 15,678,954 12,101,396
Total Stockholders' Equity 25,878,367 21,657,048
Total Liabilities and Stockholders'
Equity 32,360,400 29,924,899
UNIVERSAL TRAVEL GROUP
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in U.S. Dollars) (Unaudited)
FOR THE SECOND QUARTER OF 2008 ENDED JUNE 30, 2008 and 2007
2008 2007
Gross revenues, $ 14,344,739 $ 7,024,363
Cost of services 10,184,990 4,405,393
Gross Profit 4,159,749 2,618,970
Selling, general and
administrative expenses 1,251,876 658,149
Stock based
compensation 45,790 --
1,297,666 658,149
Income from operations 2,862,083 1,960,821
Other Income (Expense)
Loss on asset disposal -- --
Other income 5,504 --
Interest income 10,525 4,728
Interest expense (28,297) (20,302)
Total Other Income
(Expense) (12,268) (15,574)
Income before income taxes 2,849,815 1,945.247
Provision for income taxes 736,122 293,335
Net income $ 2,113,693 $ 1,651,912
Net income per common share
Basic $ .057 $ .051
Diluted $ .057 $ .051
Weighted average common shares
outstanding
Basic 36,920,147 32,692,142
Diluted 37,086,813 32,692,142
UNIVERSAL TRAVEL GROUP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in U.S. Dollars) (Unaudited)
FOR THE SIX MONTHS ENDED JUNE 30, 2008 and 2007
2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 3,577,557 $ 2,305,522
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 38,877 37,715
Loss on asset disposal 1,105
Stock based compensation 155,802 633,360
(Increase) / decrease in assets:
Accounts receivable (1,708,372) (1,489,590)
Other receivable 968,969 (406,551)
Advances (39,116) (2,229,923)
Due from shareholder 1,177,763 49,863
Prepaid expenses (54,172) 10,674
Trade deposits (2,122,588) 192,593
Deposits -- 5,633
Increase / (decrease) in current
liabilities:
Accounts payable and accrued expenses (854,371) 363,495
Customer deposits 210,032 --
Income tax payable 16,216 33,188
Total Adjustments (2,209,855) (2,799,543)
Net cash provided by(used in)
operating activities 1,367,702 (494,021)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property & equipment (17,063) (31,572)
Proceeds from asset disposal 663 --
Acquisition deposits 1,453,050 1,994,254
Paid for acquisition - net of cash
acquired -- (2,982,200)
Net cash used by Investing activities 1,436,650 (1,019,518)
CASH FLOWS FROM FINANCING ACTIVITIES
(Repayments)Proceeds from bank loan
- net (180,682) 1,178,403
Proceeds of equity financing 599,994 --
Note payable - others (977,013) --
Net cash provided by financing activities (557,701) 1,178,403
Effect of exchange rate changes on cash
and cash equivalents 571,402 111,592
Net change in cash and cash equivalents 2,818,053 (223,544)
Cash and cash equivalents, beginning
balance 2,671,684 $ 1,043,555
Cash and cash equivalents, ending
balance $ 5,489,737 $ 820,011
SUPPLEMENTAL DISCLOSURES:
Cash paid during the year for:
Interest payments $ 28,297 $ 20,302
Income Taxes $ 719,906 $ 485,965
Other non-cash transactions
Purchased Goodwill $ (3,621,513)
Fair value of assets purchased less
cash acquired (360,687)
Acquisition financed with stock
issuance 1,000,000
Acquisition paid for with cash - net of
acquired $ (2,982,200)
For more information, please contact:
Universal Travel Group
Mr. Jing Xie, Vice President
Phone: +86-755-83668489
Email: 06@cnutg.cn
Web: http://us.cnutg.com
CCG Investor Relations
Mr. Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgir.com
Arno, UTVG did indeed change IR firms. Check out the latest PR regarding the CC:
http://biz.yahoo.com/prnews/080805/cntu028.html?.v=26
For more information, please contact:
Investor Relations Contact:
Crocker Coulson, President
CCG Investor Relations
Email: crocker.coulson@ccgir.com
Web: http://www.ccgir.com
Company Contact:
Jing Xie
Secretary of Board & Vice President
Universal Travel Group Inc.
Tel: +86-755-8366-8489
Email: 06@cnutg.cn
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Christensen is definitely gone. I view this as a step up.
No not really but am sure they will discuss this 2moro during the CC. I hope for a surprise this quarter, the PPS has been flatlined for awhile now.
hoi k-squared
have you something heard that utvg is going to change from Ir firm?
ccg?
something heard of any toughts about this
arno
BEIJING - Hotels in Beijing are slashing room prices for the Olympics by as much as half because reservations have fallen well short of expectations.
Hoteliers had hoped for a bonanza from the Games, which open on Friday, but have been disappointed by low visitor numbers, as people have shied away because of visa restrictions and bad publicity about China.
Asked on Monday whether they could take a 10-room booking for the coming weekend, including the night of the much-hyped opening ceremony, a series of four- and three-star hotels said they had plenty of availability and were willing to give big discounts.
The Bamboo Garden Hotel started by offering rooms with a view of its courtyard and bamboo groves for 3,000 yuan ($438.5) per night but quickly agreed to cut the rate in half.
The Oriental Peace Hotel said over the phone that it would lop 30 percent off its 1,480 yuan nightly rate and would consider a better deal in person.
"All of our rooms were renovated earlier this year, just before Spring Festival. If you come by to see them, I'm sure you'll be satisfied," said the hotel's manager.
Compounding hotels' troubles, a building boom has left the capital with an excess of rooms. There are at least 20 more hotels competing for business than this time last year, the Beijing tourism bureau estimated.
Visitors have been put off by worries about pollution in Beijing, threats of terrorist attacks and the sheer difficulty of obtaining visas. In the run-up to the Games, tourist numbers were down by 20 percent from the same time last year, the Beijing Tourism Administration said.
Officials have said that more than half the rooms in four-star hotels over the Olympic period are still available -- and that some three star and below hotels have reservation rates as low as 10 percent.
But Xiong Yumei, deputy head of Beijing's tourism bureau, told reporters on Monday she was not concerned, as hotels at the lower end of price range mainly cater for Chinese tourists who often do not book until the last minute.
"Only about one tenth of the domestic tourists who are planning on coming to Beijing over the Games have made reservations in advance," Xiong said.
At the top end of the market, hotels looked to be in better shape for the Olympics. The five-star Sofitel Wanda said it had not a single room free for the duration of the games.
Many of the best hotels in Beijing have long had blocks of rooms reserved for Olympic teams and officials, and guests hoping for a luxury suite may have to set their sights lower.
But even some of the hotels that have partnered with the Beijing Games Organizing Committee said they still had availability. The four-star Scitech Hotel offered a nearly 25 percent discount on its starting price of 3,966 yuan a night.
(For more stories visit our multimedia website "Road to Beijing" at http://www.reuters.com/news/sports/2008olympics; and see our blog at http://blogs.reuters.com/china)
As of right now i don't like how things are going especially with management. The company always has a poor CC and they need to get a good PR firm. Besides that, the issue with high gas prices has played a part due to decrease in traveling. I think it's best to wait and see Q2 results. The volume is just too dry right now
hoi k-squared
could you give me some good points to invest in utvg?
belgian regards
walter
I see you post on IV, dont waste your time explaining anything to onetinsoldier or Quilt, everybody on that board has them on ignore. They bring nothing to the table IMO
Geez and i thought the 5 mill shares than Xian juan or whatever his name is had already been dumped and that was the reason this stock fell from almost $6 to $1.
Patience, K2. One of the major shareholder mysteries was just cleared up; 5MM shares owned by one of the r/m shareholders have been sold to three American hedge funds @ 0.95:
(From the 8K filed today, Aug 1, 2008)
On July 29, 2008, Universal Travel Group (the “Company”) entered into a Purchase Agreement whereby Jun Xiao (“Seller”) has agreed to sell to Access America Fund, LP, Chinamerica Fund LP and Pope Investments II LLC (collectively, “Purchasers”) and the Purchasers have agreed to buy from Seller an aggregate of 5,000,000 shares of the Company’s common stock at $0.95 per share.
The Company will not receive any proceeds as a result of the Purchasers’ acquisition of the shares from the Seller. The Company provided certain representations and warranties about the Company to the Purchasers under Section 5 of the Purchase Agreement, agreed to cooperate to facilitate the transactions contemplated by the Purchase Agreement and agreed to permit the Purchasers to conduct due diligence on the Company.
The sale transaction contemplated will close on the second business day following the satisfaction or waiver of all conditions to the obligations of the parties to consummate the transaction as set forth in the Purchase Agreement or such other date and time as the parties may determine. The anticipated closing date of the transaction is August 15, 2008.
At the closing of the transactions contemplated by the Purchase Agreement, the Company will receive a release from the Seller, Kitt Tsui, China Finance, Inc. and affliates of the Seller, Kitt Tsui and China Finance, Inc. The release will release the Company from any and all claims that any of the aforementioned persons may have against the Company except for scheduled claims. The release will cover, among other things, any claims to equity in the Company or rights to receive money from the Company.
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This transaction is not dilutive; these shares were already issued years ago. Without the fear of these 5MM shares being dumped on the market, perhaps the stock can recover some of its loss ytd.
Olympics is already here and this stock has made no moves yet!!!! Arrghhhh
Low volume, damn whats happening here?
round 2, we are locked and loaded waiting for Q2 results...
someone recently had contact with pr firm ?
any news ?
will be intersting to see where it goes from here.
A good bounce off last March-April's low might be a good thing.
GTC
http://ih.advfn.com/p.php?pid=webchart&cb=1214403529&period=3&drawmode=2&size=19&volume=1&btn=s_ok&symbol=USBB%3AUTVG&s_symbol_search=USBB%3AUTVG&ss_symb=UTVG
Thursday, May 8, 2008
Update: UTVG.OB Makes Further Online Gains
First of all, look at this chart. In the space of less than a month, UTVG.OB's (Universal Travel Group) website CNUTG.com (not to be confused with its CBA-HOTEL.com site) has gone from nowhere to be the ~4,400 most trafficked site in all of China. Additionally, the website is also gaining traction in South Korea (ranked ~11,000) and Vietnam (ranked ~24,000). This reinforces what I have already been saying - while UTVG's strategy last year was to shore up its physical footprint across China, this year is all about online presence.
In fact, the company's press release regarding its termination of financing agreement on Wednesday is illustrative of a perceptible shift in the UTVG's positioning. It described itself as, and I quote: "a fast growing travel services provider in China specializing in online and customer representative services to the travel service industry". This positioning statement has been in place since late March. Is it an accident that "online" comes before "customer representative services"? I don't think so.
Given this rapid rise, I'm not concerned that the investors backed out. To me this just means less dilution for the rest of us. After all, UTVG is cash flow positive and there is no current need to make acquisitions to sustain its growth.
12% a day for 7 days straight is well deserved for longs like myself that held through the lows of $1.12 and the ridiculously low P/E for a fast growing company.
Nice cup forming on the chart as well, a slight pullback over the next few days could setup a very nice handle.
lol now this is becoming absurd
I think we broke resistance, now this thing needs to go to 10+ so i dont have to work after college lol
Universal Travel Group Announces Revenue and Earnings Guidance for 2008
SHENZHEN, China--(BUSINESS WIRE)--Universal Travel Group Inc. (OTCBB: UTVG) (“Universal Travel Group” or the “Company”), a fast growing comprehensive travel services provider in China specializing in online and customer representative services to the travel service industry offering packaged tours, air ticketing, hotel reservation and air cargo transportation, today announced its 2008 full year earnings guidance.
After careful evaluation of the impact of the severe snowstorms that affected China during the first quarter of 2008 and taking into consideration the positive impact of the Beijing Olympics on air travel and lodging, the Company expects annual Revenue to be between $69 million and $73 million, a year-over-year increase of 55.8% to 64.8% from $44.3 million in 2007. Net income for 2008 is expected to be in the range of $12 million to $14 million, not including stock based compensation for 2008, an increase of 27.7% to 48.9% from $9.4 million in 2007 not including stock based compensation for 2007.
About Universal Travel Group
Universal Travel Group, a fast growing comprehensive travel services provider in China, is engaged in providing reservation, booking, and domestic and international travel and tourism services throughout China via the internet and through customer representatives. Under the theme "Wings towards a more colorful life" the company's core services include tour packaging for customers, booking services for air tickets and hotels as well as air cargo transportation. In 2007 Universal Travel Group completed the acquisitions of several China-based companies: a) Speedy Dragon, specializing in air cargo transportation; b) Xi'an Golden Net, specializing in travel packaged tours; c) Shanghai LanBao, specializing in hotel reservations and d) of Foshan Overseas International,that handles domestic and international travel inquiries as well as corporate travel, offering specialized packages that include national and international air ticket booking, hotel reservations, conference center reservations and rental cars. Universal Travel's goal is to become China's leading travel services provider in all fields of the tourism industry including the aviation, cargo, hotel booking and tour packaging segments. For more information, visit http://www.chutg.com.
Forward Looking Information
Universal Travel Group ("we" or the "Company") desires to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. This report contains a number of forward-looking statements that reflect management's current views and expectations with respect to our business, strategies, future results and events and financial performance. All statements made in this press release other than statements of historical fact, including statements that address operating performance, events or developments that management expects or anticipates will or may occur in the future, including statements related to future cash flows, revenues, profitability, adequacy of funds from operations, statements expressing general optimism about future operating results and non-historical information, are forward-looking statements. In particular, the words "believe," "expect," "intend," " anticipate," "estimate," "may," "will," variations of such words and similar expressions identify forward-looking statements, but are not the exclusive means of identifying such statements and their absence does not mean that a statement is not forward-looking. These forward-looking statements are subject to certain risks and uncertainties, including those discussed below.
Our actual results, performance or achievements could differ materially from historical results as well as those expressed in, anticipated or implied by the forward-looking statements contained herein. We do not undertake any obligation to revise these forward-looking statements to reflect any future events or circumstances. Readers should not place undue reliance on forward-looking statements, which are based on management's current expectations and projections about future events, are not guarantees of future performance, are subject to risks, uncertainties and assumptions (including those described below) and apply only as of the date of this report. Our actual results, performance or achievements could differ materially from the results expressed in, or implied by, the forward-looking statements contained herein. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in "--Risk Factors" as indicated in the Company’s annual report and the risks discussed in our press releases and other communications to shareholders issued by us from time to time, which attempt to advise interested parties of the risks and factors that may affect our business. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise
08 guidance is out! I knew something was up when it started moving up real quick!
Any significant volume will be on the selling side imo. We should see another good size drop within 2 weeks.
The lack of volume is holding us back
K...I can't get this week right, let alone 8 months down the road...LOL! That said, I think it will be trading higher than this level.
What is your end of year target?
I wouldn't be too sure about that. Could just be that bounce I was expecting. Until it closes and confirms above the 20MA there's still too much downside risk, imo. GLTU!
I think the sellers are gone!
Reiteration of meltdown. Buying opp ahead, but it's still too ugly for me to enter just yet. We could see a small bounce next week, or a downside continuation. Either way I think UTVG will eventually end up trading below a buck, possibly .75 before it turns around. This is one of the cheapest out there right now, imo based on ttm earnings. I'm looking to pull the trigger below a buck. GLTA!
From last summer: http://www.ludlowchina.com/reports/utvg.htm
CC highlights
Christensen IR handled the call and did a nice job, IR contact was easy to understand.
1. 2008 strategy is to focus on online & organic growth versus acquisition
2. With new acquisition, many cross-selling opportunities exist with subsidiary synergies and integration.
3. Jiang said she has never considered a takeover from CTRP, and see UTVG as a great and bright future on its own with much space to grow and we have big plans.
4. Olympics are great business opportunity
5. Do not have numbers for Q1 yet, but will give guidance in the future
6. Lack of 2nd & 3rd payment for recent fundraising does not put cash flow pressure on company, they are confident in operating cashflow to proceed with '08 strategy
7.Christensen is the new IR contact
1st april - conference call
3april - brean murray carrett
christeniser.com - hopefully a new IR firm and a better one
any thoughts ?
Friday, Mar. 28 2008
Universal Travel Group to Present at Brean Murray Carret Fourth Investor Tour of China on April 3, 2008
SHENZHEN, China, Mar 28, 2008 (BUSINESS WIRE) -- Universal Travel Group Inc. (OTCBB: UTVG) ("Universal Travel Group" or the "Company"), a fast growing travel services provider in China specializing in online and customer representative services to the travel service industry offering packaged tours, air ticketing, hotel reservation and air cargo transportation, today announced that it will present at Brean Murray Carret Fourth Investor Tour of China conference on Thursday, April 3, 2008 at the Marco Polo Shenzhen hotel in Shenzhen, China.
Universal Travel Group will present its business overview including current services, competitive strengths, and key growth strategies in the Shanghai Boardroom from 9:00 a.m. to 9:40 a.m. local time. Ms. Jiangping Jiang, Chairwoman and Chief Executive Officer and Mr. Jing Xie, Secretary of the Board and Vice President will be available to answer investor questions after the presentation and at one-on-one meetings.
The Brean Murray Carret Fourth Investor Tour of Mainland China is a five-day event featuring presentations from over 50 companies located in Beijing, Shenzhen, Shanghai, and other cities across a broad range of sectors including media, healthcare, technology, alternative energy, education, travel and lodging, agriculture and industrials.
For more information about the conference, please visit http://www.breanmurraycarret.com.
About Universal Travel Group
Universal Travel Group, a fast growing travel services provider in China, is engaged in providing reservation, booking, and domestic and international travel and tourism services throughout China via the internet and through customer representatives. The company's core services include tour packaging for customers, booking services for air tickets and hotels as well as air cargo transportation. Universal Travel Group has completed acquisitions of Speedy Dragon, specializing in air cargo transportation; Xi'an Golden Net, specializing in travel packaged tours; and Shanghai LanBao, specializing in hotel reservation. In October, UTVG completed the acquisition of Foshan Overseas International, a China-based company that handles domestic and international travel inquiries as well as corporate travel, offering specialized packages that include national and international air ticket booking, hotel reservations, conference center reservations and rental cars. Universal Travel's goal is to become China's leading travel services provider in all fields of tourism industry including the aviation, cargo, hotel booking and tour packaging segments. For more information, visit http://www.chutg.com.
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SHENZHEN, China, Aug. 6 /Xinhua-PRNewswire-FirstCall/ --
Founded in 1998,
"We look forward to working with CCG to improve our communication with the investment community and the financial media as we pursue our goal of becoming China's leading online travel services provider in all fields of the tourism industry including air-ticketing services, air cargo agency services, hotel booking and tour packaging business segments," said Ms. Jiangping Jiang, Chairperson and CEO of
With the tremendous publicity surrounding the 2008 Beijing Olympic Games approaching, the volume of travelers in and out of China will definitely bring enormous market opportunities. Additionally, the disposable income of the average Chinese consumer is expected to increase, and the Company believes this will immediately translate to greater demand for air travel and vacations.
"We are excited to be working with such a promising client in the growing travel industry in China," said Crocker Coulson, President of CCG. "
About
About CCG
CCG is uniquely positioned to provide an outsourced, high-level investor relations solution that combines in-depth understanding of Asia's corporate culture and economic scene with a direct pipeline into the leading funds and broker-dealers in the United States. CCG is a global, full-service investor relations agency with corporate headquarters in Los Angeles, and offices in New York, Newport Beach, Dallas, Beijing, Shanghai and Shenzhen. For further information, contact CCG or visit the Company's website at http://www.ccgir.com .
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain statements that may include 'forward- looking statements' within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are 'forward-looking statements'. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company's ability to successfully expand its market presence and those discussed in the Company's periodic reports that are filed with and available from the
SHENZHEN, China, Sept. 3 /Xinhua-PRNewswire-FirstCall/ --
Proceeds from the private placement will be used for general corporate development, specifically projects relating to online integration.
''We are determined to capture the opportunities presented by the tourism and business travel markets in China and will use the proceeds to fuel our growth initiatives,'' said Ms. Jiangping Jiang, CEO of
''We are very excited about the growth prospects of
In addition to the PIPE transaction, on August 14, 2008,
"While we did not receive any proceeds from the 5 million share purchase transaction, we were pleased to see that the shares are now held by long term institutional investors that have track records of success in growth investments,'' said Ms. Jiang.
''After several months of due diligence, including in-depth analysis of the Chinese travel space, we believed this dynamic company was significantly undervalued. We are hopeful that when the investment community at large recognizes that a group of sophisticated institutional investors with successful track records investing in, and supporting Chinese companies have accumulated a meaningful position in UTVG that, over time, shareholder value will rise to intrinsic levels. In addition to acquiring this large block of stock from a single non-management shareholder, we had enough confidence in the Company to place the PIPE financing at a premium to the retail price per share in the open market, something rarely done in our space,'' said Beau Johnson of
The securities issued in the PIPE have not been registered under the Securities Act of 1933, as amended, and may not be sold by the investor in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements. The Company has agreed to file a registration statement covering the re-sale of the securities by the investor.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain statements that may include 'forward- looking statements' within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are 'forward-looking statements'. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company's ability to successfully expand its market presence and those discussed in the Company's periodic reports that are filed with and available from the
SHENZHEN, China, Sept. 8 /Xinhua-PRNewswire-FirstCall/ --
The new website is a further step to integrate the Company's diversified services into a new platform with selected value-added features and information.
"We are excited to launch a new website that offers practical and value added information," said Ms. Jiangping Jiang, CEO of
About
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain statements that may include 'forward-looking statements' within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are 'forward-looking statements'. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company's ability to successfully expand its market presence and those discussed in the Company's periodic reports that are filed with and available from the
SHENZHEN, China, Sept. 25 /Xinhua-PRNewswire-FirstCall/ --
The Kiosks are interactive terminals placed in strategically targeted public areas. They will enable convenient, fast and easy to use, real-time air ticketing inquiries, reservations and purchases, as well as hotel and tour reservations. The Kiosks will provide full 360¡ã views of hotels and travel destinations and accept payment via bank cards, debit cards and VISA. According to
"We are pleased to have unveiled this unique solution to help us capture a greater share of the growing domestic tourism market and business travel markets in the PRC," said Ms. Jiangping Jiang, CEO of
About
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain statements that may include "forward- looking statements" within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are "forward-looking statements". Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company's ability to successfully expand its market presence and those discussed in the Company's periodic reports that are filed with and available from the
SHENZHEN, China, Nov. 5 /Xinhua-PRNewswire/ --
Date: Friday, November 21, 2008 Time: 12:00 p.m. EST Presenter: Jing Xie, Secretary of the Board and Vice President Venue: Palmer 1 - Track 1 The Wynn Las Vegas 3131 Las Vegas Blvd. South Las Vegas, NV 89109
The Roth Capital China Comes to Vegas Conference is a three-day event that is dedicated to only Chinese-based, US listed companies. The conference will bring together executives from more than 70 companies with an average market cap of $300 million. During the conference, the Company will be available to meet with analysts and portfolio managers. Participation in the Roth Capital China Comes to Vegas Conference is by invitation only. Further information can be found at http://www.roth.com .
About
SHENZHEN, China, Nov. 5 /Xinhua-PRNewswire-FirstCall/ --
Third Quarter of 2008 Highlights -- Revenue reached a record $22.9 million, up 78.7% year-over-year -- Gross profit totaled $7.9 million, up 74.4% year-over-year -- Net income was $4.6 million or $0.22 per fully diluted share, up 50.9% year-over-year from $3.1 million, or $0.16 per fully diluted share, in the same quarter of 2007 -- Successfully closed a PIPE financing of $7.1 million with a group of seasoned investors -- Launched new online booking website, www.cnutg.com.cn, with travel information and 360¡ã view photos of sight-seeing destinations and hotel rooms -- Started beta testing of TRIPEASY Kiosks aimed at business travelers and those who have no access to the internet
"We are extremely pleased with the significant increase in all segments of our travel businesses during the third quarter, the result of the high travel season and positive effects from the Beijing Olympics Games," said Ms. Jiangping Jiang, Chairwoman and CEO of
Third Quarter of 2008 Results
Revenue for the three months ended September 30, 2008 was $22.9 million compared to $12.8 million for the same period of 2007, an increase of approximately 78.7%. This increase is due to the company's strategic expansion into the hotel reservation and packaged tours business via the acquisitions of Xi'an
Gross profit for three months ended September 30, 2008 was $7.9 million compared to $4.5 million for three months ended September 30, 2007, an increase of approximately 74.4%. The increase in gross profit reflects the company's strategic expansion into the profitable hotel reservation and packaged tours business via the acquisitions. The increase also reflects the results of efficient management and control of operations by an experienced management team.
Selling, general and administrative expenses for three months ended September 30, 2008 totaled $1.9 million compared to $812,464 for three months ended September 30, 2007, an increase of approximately 136.0%. Selling, general and administrative expenses were approximately 8.4% of revenue for three months ended September 30, 2008 as compared to 6.3% for three months ended September 30, 2007. The increase in selling, general and administrative expenses reflects the increase in the Company's expenses as a result of the acquisitions of Xi'an
Net income was $4.6 million, or 20.2% of revenue, for three months ended September 30, 2008, compared to $3.1 million, or 23.9% of revenue, for three months ended September 30, 2007. The increase in net income reflects the continued growth in the Company's business and the income derived from the acquisitions of Xi'an
Nine Month Results
Revenue for the nine months ended September 30, 2008 was $47.3 million compared to $26.8 million for nine months ended September 30, 2007, an increase of approximately 76.6%. Gross profit for the nine months ended September 30, 2008 was $14.9 million, compared to $9.4 million for nine months ended September 30, 2007, an increase of approximately 58.4%. Gross profit margin for nine months ended September 30, 2008 was 31.4%, compared to 35.0% for nine months ended September 30, 2007. Selling, general and administrative expenses for nine months ended September 30, 2008 totaled $4 million, compared to $2.2 million for nine months ended September 30, 2007. Interest expense for nine months ended September 30, 2008 totaled $78,525 compared to $42,724 for nine months ended September 30, 2007, an increase of approximately 83.8%. Net income was $8.2 million or 17.3% of revenue for the nine months ended September 30, 2008, compared to $5.4 million or 20.0% of revenue for the nine months ended September 30, 2007.
Financial Condition
As of September 30, 2008,
The Company generated $2.9 million in cash from operating activities for the nine months ended September 30, 2008, which resulted primarily from the company's increase of business activities and trade deposits, and seasonal decrease of accounts payable, compared to cash provided by operating activities of $5.3 million in the same period last year. The Company received proceeds of $7.1 million from an equity financing in the third quarter from a group of seasoned investors to support corporate development initiatives.
Business Outlook
Despite the recent economic slowdown worldwide, the Company continues to experience strong demand for its products and services.
"In the midst of the current economic slowdown, the PRC's consumption continues to rise. We believe the travel sector will continue to push ahead into the future. This provides significant opportunities for us," said Jiangping Jiang. "We believe
Based on greater-than-expected third quarter results, the Company is increasing its forecast for full-year 2008 revenue to a range of $72 million to $74 million from revenue of $69 million to $73 million; net income to a range of between $13.5 million and $14.5 million from net income of $12 million to $14 million, not including stock based compensation; earnings per share to a range of between $0.32 to $0.35 from earnings per share of between $$0.29 to $0.33.
Conference Call Information
The Company will host a conference call at 9:00 a.m. E.S.T. on Thursday, November 6, 2008 to discuss results for the third quarter of 2008. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 888-339-2688. International callers should dial 617-847-3007. When prompted by the operator, mention Conference passcode 870 055 11. If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Thursday, November 6 at 11:00 a.m. E.S.T. To access the replay, please dial 888-286-8010 and enter the passcode 91725351. International callers should dial 617-801-6888 and enter the same passcode 91725351.
About
SHENZHEN, China, Nov. 18 /PRNewswire-FirstCall/ --
Date: Thursday November 20, 2008 - Sunday November 23, 2008 Venue: Shanxi Exhibition Hall Shanghai New International Expo Center
The Company plans to establish more affiliations during the exhibition. It will also showcase its TRIPEASY Kiosks, seek to expand its hotels and tourism site resources, and promote Xi'an and West China sightseeing to foreign travel agencies.
In an ongoing effort to better satisfy consumers' preferences with more user-friendly features, the company's signature TRIPEASY Kiosks are now installed with an upgraded interface, which can be viewed at http://www.cnutg.com.cn .
About China International Travel Mart
China International Travel Mart ("CITM") is an annual event that is held on an alternate basis in Shanghai and Kunming. As the largest professional travel mart in Asia, CITM has drawn the attention of people in the tourism industry worldwide. Participants in CITM come from all sectors of the travel industry including international and domestic tourism organizations, travel agencies, hotels, airlines and related travel companies. Further information can be found at http://www.citm.com.cn/en .
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