SOURCE: Joystar, Inc.

November 16, 2005 13:52 ET

Joystar Reports Strong Growth in the Third Quarter of 2005

Revenues Increase 105% and Gross Travel Bookings Up 58% Sequentially

ALISO VIEJO, CA -- (MARKET WIRE) -- November 16, 2005 -- Joystar, Inc. (OTC BB: JYSR), the nation's largest and fastest-growing travel agency network, announced today its financial results for the third quarter ended September 30, 2005.

"Joystar experienced significant growth in gross travel bookings, revenue, and the size of our virtual sales force during the third quarter of 2005," said William Alverson, Chairman and CEO of Joystar, Inc. "With our third consecutive quarter of over 100% growth in revenues, our sales momentum continues to escalate, firmly establishing Joystar as a premier host agency and leading seller of cruises and vacations. With over $6 million in new travel bookings in the third quarter, we are on track to continue our rapid growth."

Revenues increased 105% to $282,467 in the third quarter ended September 30, 2005 as compared to $137,899 for the previous quarter ended June 30, 2005. Revenue growth was primarily driven by an increase in the size of the Company's travel agent network; acquisition of the Miami Cruise Center; and growth in the Company's cruise and vacation business. Gross travel bookings increased 58% to $2,153,778 in the third quarter of 2005 compared to $1,367,477 in the preceding quarter ended June 30, 2005. Revenue as a percentage of gross bookings ("revenue margin") was 13% for the third quarter of 2005, up 30% compared with the previous quarter ended June 30, 2005. Growth in revenue margin was primarily attributed to higher commission levels from the Company's preferred suppliers. Additionally, Joystar received new travel bookings, for which the Company has not recognized revenue, totaling over $6,000,000 during the three months ended September 30, 2005.

Alverson continued, "Our investments in technology, infrastructure, virtual sales force recruitment, and supplier relationships are beginning to pay off. We have branded Joystar as the host agency of choice for the travel agent community and are absolutely committed to this experienced group of travel retailers. Our strategy is to continue to offer the technology, marketing programs and support that can lead our professional travel sellers to succeed. As the Company's gross bookings continue to increase, we anticipate negotiating higher commission levels with our suppliers, which can result in higher revenue margins going forward."

As of September 30, 2005, the Company's network of independent travel agents increased by 878 agents to 2,900 travel agents. For the nine months ended September 30, 2005, marketing expenses decreased by 42% to $863,000 from $1,222,000 reported in the nine months ended September 30, 2004. This reduction was due to the Company's successful host agency branding over the past year and the Company's ability to more cost effectively attract professional agents to its network.

Additional details on third quarter financial results can be found in the Company's Form 10QSB, available at http://www.sec.gov.

About Joystar, Inc.

Joystar is the nation's largest and fastest-growing travel agency network. The Company specializes in selling complex travel products including cruises, vacation packages and group travel through its national sales force of 3,000 professional agents. Joystar's comprehensive business combines innovative technology, marketing opportunities and expert support services to the Company's independent and home-based travel agents. With Joystar, professional travel agents can concentrate on promoting travel and creating customer loyalty without the administrative and financial burden of owning/operating a traditional storefront travel agency. For more information, visit http://www.joystar.com.

"Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future events or results. Joystar, Inc. disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. Please refer to the documents filed by Joystar, Inc. with the Securities and Exchange Commission, which identify important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with our ability to (i) increase revenues, (ii) obtain profitability, and (iii) obtain additional financing, changes in general economic and business conditions (including in the online business and financial information industry), actions of our competitors, the extent to which we are able to develop new services and markets for our services, risks in connection with acquisitions, the time and expense involved in such development activities, the level of demand and market acceptance of our services and changes in our business strategies.

Additionally, forward-looking statements concerning the performance of the travel and leisure industry are based on current market conditions and risks, which may change as the result of certain regulatory, political or economic events, a shift in consumer travel preferences, as well as those risks and uncertainties described in the Company's filings with the Securities and Exchange Commission, which could cause actual events or results to differ materially from the events described in the forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

Contact Information

  • Contact:

    Investor Relations
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    Gary Geraci
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    gary@equityperfgp.com