DALLAS -- Pegasus
Solutions, which provides a hotel commission settlement service for
agents and reservations services for hotels, told the investment
community that it was looking at merger possibilities or other
strategies to enhance shareholder value.
In the same
statement, it lowered its projected revenue and earnings forecast
for the first quarter, citing the conversion from monthly to weekly
commission processing. It said the change affects how and when the
income is accounted for.
On the first
point, Pegasus said it retained Bear Stearns & Co. as its
financial advisor as the company explores any of the following
alternatives: joint ventures, divestitures, strategic alliances,
taking the company private, selling the business or
advised the time frame for this effort would be a matter of
effects of the new weekly commission-processing cycle, Pegasus
revised its first-quarter revenue projections from $45 million to
$47 million to $43 million to $44 million.
explained that accounting rules require the company to recognize
its revenue in different ways, so that the companys statements will
take a short-term hit when returns will be seen to have dropped.
However, she said given that the same amount of money is being
moved from hotels to Pegasus and to agents, the company will come
out even in the end.
participating in the new weekly cycle include Adams Mark, Hilton,
Jurys Doyle, Marriott, Omni, Rosewood, Thistle and
company said another factor in the lowered projections is
lower-than-expected revenue from the companys reservations and
A spokesman said
Pegasus expects to be collecting lower fees because the competition
the reporter who wrote this article, send e-mail to Nadine Godwin
at [email protected].