| Grand Adventures Tour & Travel Publishing Corporation | |||
| Proposed Ticker: | GAT | 1120 Capital of Texas Highway South Bldg. 3 Suite 300 | |
| Exchange: | American Stock Exchange | Austin, TX 78746 | |
| Industry: | Transportation (SIC Code 4724) | (512) 329-7255 | |
| Type of Shares: | Common Shares | Filing Date: | 10/24/97 | |
| U.S. Shares Filed: | 700,000 | Filing Price: | $7.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $4,900,000 | |
| Primary Shares: | 700,000 | Expenses: | - | |
| Secondary Shares: | 0 | Shares Out After: | 2,527,021 |
| Manager | Tier | Phone |
| Capital West Securities, Inc. | Lead Manager | (405) 235-5720 |
| Issuer's Law Firm: | Kuperman, Orr, Mouer & Albers, P.C. |
| Bank's Law Firm: | Robertson & Williams, Inc. |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | OTR Stock Transfer Registry |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 9/30/97 | 9/30/96 | 9/30/97 | ||
| Revenue: | $11.00 | $9.55 | $8.46 | Assets: | $2.24 |
| Net Income: | -$0.87 | $0.02 | -$0.40 | Curr Assets: | $1.78 |
| EPS: | -$0.09 | $0.00 | -$0.04 | Liabilities: | $3.42 |
| Prior EPS: | -$0.04 | -$0.46 | $0.12 | Curr Liabilities: | $2.61 |
| Cash Flow/Oper: | $0.48 | $0.38 | Equity: | -$1.18 | |
| Cash Flow/Fin: | -$0.58 | $0.22 | Cash: | $0.19 | |
| Cash Flow/Inv: | -$0.58 | Working Cap: | -$0.83 | ||
| Business Description |
| The Company serves a portion of the travel industry known as "interliners" through two divisions operated within its wholly-owned subsidiary. Interliners are the active employees and retirees of the airline industry, who may fly on many carriers for free or at a very significantly reduced fare, along with their families and the friends to whom they pass along their allotments of no-cost or low-cost flying privileges. One division (the "Publishing Division") publishes a magazine and other promotional material directed at the interline market.The Publishing Division produces, publishes, and distributes Interline Adventures, a 27 year-old, four-color, 120 plus-page, bi-monthly magazine, and then supplements that publication with other information in between the editions of the larger magazine. The Marketing Division, under the name "Interline TravelReps," provides hotel and resort accommodations, consisting of rooms or vacation packages (comprised of some combination of rooms, meals and services) and berths or seats on cruises and escorted tours. |
| Competition |
| The Company is aware of over 30 competitors in the interline travel industry, all of which are privately-held and for which no reliable sales information is available. Two of the companies, Caesar's and Magellan, have been in the travel business for over 20 years and have an established market presence and variety of products and services. In providing travel services, the Company believes that competition in the interline industry is based principally on market visibility and the nature and variety of products and services offered rather than merely price. The Company believes that it benefits from being able to offer a broad variety of products in a variety of destinations. The Company generally offers the prevailing interline discount rate, and on specific customer requests, typically matches lower rates offered by others. See "THE BUSINESS; The Marketing Division; Competition." In publishing the Magazine, the Company competes with the ASU Travel Guide, an approximately 400-page quarterly listing with a significant readership. The ASU Travel Guide is not affiliated with any reservation or travel firm providing the types of support services offered by the Company. Although the Company has designed its products and services and its expansion strategy with a view to operating in this competitive environment, there can be no assurance that the Company will be able to compete effectively or profitably. Many of the Company's competitors have significant management and financial resources and more established market niches than the Company. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to retire the notes issued in the 1997 Private Placement, expand its magazine publications, and working capital and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Matthew O'Hayer | 39.00% | |
| Robert Sandner | 8.00% |
| Officer Name | Title | Age |
| Matthew O'Hayer | Chairman, Chief Executive Officer , and Director | 42 |
| Darrell Barker | Chief Financial Officer, Treasurer and Director | 49 |
| Jay Juba | President, Chief Operating Officer, Secretary and Director | 34 |
| Fernando Cruz Silva | Senior Vice President of Sales & Marketing | 37 |
| Patti Macchi | Vice President of Cruise Sales & Marketing | 52 |