Hotelworks.com Reports 2Q Earnings

CORAL GABLES, FL—  Hotelworks.com, a provider of goods and services to the global hospitality industry, announced its financial results for second quarter ended June 30, 2001. Revenues for the three months ended June 30, 2001 were $30,458,000 compared to $54,265,000 for the three months ended June 30, 2000. The economic downturn persisted in the second quarter, leading to pricing pressures and a drop in hotel development and renovation activity, thereby decreasing sales. The company instituted additional cost reductions in the first half of 2001 in response to the economic difficulties and the resulting drop in revenues. Gross profit for the second quarter of 2001 was $2,408,000 or 7.9% of revenues, compared to $3,851,000 or 7.1% of revenues for the second quarter of 2000. Selling, general and administrative (“SG&A”) expenses decreased from $4,178,000 in the three months ended June 30, 2000 to $3,555,000 in the current years quarter. The decrease in SG&A expenses was primarily the result of expense reductions mentioned previously. Douglas Parker, president/CEO, stated, “Business development efforts will be critical throughout the year as we compete for new business, both in the United States and abroad.” Parker also added, “We continue to evaluate our overhead costs, eliminating or reducing any items that do not correlate to increased revenues.”