VRX Worldwide - financials - annual reports

2007 Annual Report

President's Message

2007 was another great year for VRX. After a tremendous production year in 2006, we turned our attention to growing our licensing business. Our concentrated effort was rewarded with 12 consecutive months of licensing revenue growth and a 77% increase year-over-year. In addition to growing our licensing business in 2007, we secured three new major production agreements and extended our existing production contract with Wyndham Hotel Group.

VRX continues to lead the market as the largest licensor and most consistent producer of premium rich media travel content. We remain the preferred content vendor of the leading online travel intermediaries and hospitality brands. We remain committed to providing the highest quality and most consistent content at all times while continually innovating our technology, production processes and business model to meet the needs of the ever-changing travel industry.

As we continue to grow our licensing business and expand our coverage of hotels internationally, our licensing revenues continue to grow. In 2007, with the signing of several new clients and improved uptake by many existing clients, we grew our licensing revenue from $847,000 to $1.5 million.

Today, we offer more content services and products than we ever have and our clients keep asking for more. With the shift from providing a few services and products to providing many, we have increased our opportunities and are winning more and more business. In 2007 we won three new major production deals on the basis that we were providing a comprehensive set of content services including photography, image processing, content management, distribution, and licensing as well as all logistical, project management, and scheduling support. In 2008 and beyond, we see this trend continuing.

Earlier in 2007, we secured the rich media business of entertainment giant, Harrah's Entertainment Inc, the world's largest provider of branded casino entertainment with brands such as Harrah's, Caesars, Horseshoe and London Clubs International. This win means a lot to us as Caesars has been a client since 2004. When Harrah's purchased Caesars, they were impressed by the quality and professionalism of our products and services and decided to expand our coverage to include all of their properties across the United States.

In October, we won the Red Roof Inns account which represents over 300 properties across North America. Our extensive experience within the lodging industry and proven operational abilities, combined with our industry-leading quality standards, made VRX Studios the logical choice for Red Roof Inns. Under this agreement, we are also providing content management, hosting, and distribution services.

At the end of 2007, we secured the business of the prestigious Fairmont Hotels and Resorts group, adding another five-star brand to our portfolio of hotel customers. This agreement covers over 50 luxury properties spanning the globe and includes such iconic landmarks as The Fairmont San Francisco, The Fairmont Banff Springs, and London's Savoy. This win is further testament to our unrivaled commitment to creating premium rich media content and underlines our market leading status. Under the terms of the deal, we are providing production, hosting, distribution, and licensing services for all existing properties and for the 20 additional properties Fairmont currently has in development.

In addition to winning the business of several major hotel brands in 2007, we extended our relationships with many existing customers. Our project with Wyndham is a great example. With our successful completion of the first two phases of the project we launched the third phase in 2007. This phase added Baymont Inn & Suites to our customer base and has us covering all new openings and renovations for the Wyndham Hotel Group. By the conclusion of 2007, we had shot 5,329 Wyndham hotels since the beginning of the project in 2005.

In the summer of 2007, we signed a new three-year production, hosting, and distribution agreement with the Global Hyatt Corporation. Hyatt was one of the first major hotel brands to join our Hotel Program when we launched it in 2005 and has been a major supporter ever since. Our worldwide contract with Hyatt covers all 211 properties, which are currently available in our Hotel Archive, as well as all future properties. Under the extended agreement, we will continue to produce and manage high-quality, web-friendly 360-degree virtual tours, still images, and interactive maps for all of Hyatt's domestic and international properties, and distribute the premium content to third-party travel sites.

In 2007, our team's hard work was recognized by Profit Magazine and Business in Vancouver. In June 2007, we were extremely proud to be ranked 37th in Profit Magazine's Profit 100 list of the fastest growing companies in Canada. The magazine ranks Canada's fastest-growing companies by five-year revenue growth, profiling the country's most successful growth companies. In addition to this achievement, we were included in Business in Vancouver's inaugural list of The Top 100 Fastest-Growing Companies in British Columbia, where we ranked 49th in the province.

VRX is known globally as the best, most consistent and most scalable producer of premium rich media content. In the foreseeable future, we will continue to deliver these services with the consistency and professionalism that we are renowned for; however, we will also begin to challenge the models, processes, and technologies that our industry uses to produce, manage, distribute, and display rich media content. Challenging these norms will maintain our place at the forefront of our industry and continue to grow our business.

I would like to thank the entire VRX team for their commitment, hard work, and dedication as we continue to improve the online research and booking experience of consumers all over the world.

I would also like thank all of our investors who believe in and support our passion for quality and innovation.

Regards,

David MacLaren
President and CEO

	Annual Reports
	2007 Annual Report 2006 Annual Report 2005 Annual Report 2004 Annual Report 2003 Annual Report 2002 Annual Report 2001 Annual Report

	2007 Annual Report and President's Message
	2007 Annual Report Click here to download President's Message 2007 was another great year for VRX. After a tremendous production year in 2006, we turned our attention to growing our licensing business. Our concentrated effort was rewarded with 12 consecutive months of licensing revenue growth and a 77% increase year-over-year. In addition to growing our licensing business in 2007, we secured three new major production agreements and extended our existing production contract with Wyndham Hotel Group. VRX continues to lead the market as the largest licensor and most consistent producer of premium rich media travel content. We remain the preferred content vendor of the leading online travel intermediaries and hospitality brands. We remain committed to providing the highest quality and most consistent content at all times while continually innovating our technology, production processes and business model to meet the needs of the ever-changing travel industry. As we continue to grow our licensing business and expand our coverage of hotels internationally, our licensing revenues continue to grow. In 2007, with the signing of several new clients and improved uptake by many existing clients, we grew our licensing revenue from $847,000 to $1.5 million. Today, we offer more content services and products than we ever have and our clients keep asking for more. With the shift from providing a few services and products to providing many, we have increased our opportunities and are winning more and more business. In 2007 we won three new major production deals on the basis that we were providing a comprehensive set of content services including photography, image processing, content management, distribution, and licensing as well as all logistical, project management, and scheduling support. In 2008 and beyond, we see this trend continuing. Earlier in 2007, we secured the rich media business of entertainment giant, Harrah's Entertainment Inc, the world's largest provider of branded casino entertainment with brands such as Harrah's, Caesars, Horseshoe and London Clubs International. This win means a lot to us as Caesars has been a client since 2004. When Harrah's purchased Caesars, they were impressed by the quality and professionalism of our products and services and decided to expand our coverage to include all of their properties across the United States. In October, we won the Red Roof Inns account which represents over 300 properties across North America. Our extensive experience within the lodging industry and proven operational abilities, combined with our industry-leading quality standards, made VRX Studios the logical choice for Red Roof Inns. Under this agreement, we are also providing content management, hosting, and distribution services. At the end of 2007, we secured the business of the prestigious Fairmont Hotels and Resorts group, adding another five-star brand to our portfolio of hotel customers. This agreement covers over 50 luxury properties spanning the globe and includes such iconic landmarks as The Fairmont San Francisco, The Fairmont Banff Springs, and London's Savoy. This win is further testament to our unrivaled commitment to creating premium rich media content and underlines our market leading status. Under the terms of the deal, we are providing production, hosting, distribution, and licensing services for all existing properties and for the 20 additional properties Fairmont currently has in development. In addition to winning the business of several major hotel brands in 2007, we extended our relationships with many existing customers. Our project with Wyndham is a great example. With our successful completion of the first two phases of the project we launched the third phase in 2007. This phase added Baymont Inn & Suites to our customer base and has us covering all new openings and renovations for the Wyndham Hotel Group. By the conclusion of 2007, we had shot 5,329 Wyndham hotels since the beginning of the project in 2005. In the summer of 2007, we signed a new three-year production, hosting, and distribution agreement with the Global Hyatt Corporation. Hyatt was one of the first major hotel brands to join our Hotel Program when we launched it in 2005 and has been a major supporter ever since. Our worldwide contract with Hyatt covers all 211 properties, which are currently available in our Hotel Archive, as well as all future properties. Under the extended agreement, we will continue to produce and manage high-quality, web-friendly 360-degree virtual tours, still images, and interactive maps for all of Hyatt's domestic and international properties, and distribute the premium content to third-party travel sites. In 2007, our team's hard work was recognized by Profit Magazine and Business in Vancouver. In June 2007, we were extremely proud to be ranked 37th in Profit Magazine's Profit 100 list of the fastest growing companies in Canada. The magazine ranks Canada's fastest-growing companies by five-year revenue growth, profiling the country's most successful growth companies. In addition to this achievement, we were included in Business in Vancouver's inaugural list of The Top 100 Fastest-Growing Companies in British Columbia, where we ranked 49th in the province. VRX is known globally as the best, most consistent and most scalable producer of premium rich media content. In the foreseeable future, we will continue to deliver these services with the consistency and professionalism that we are renowned for; however, we will also begin to challenge the models, processes, and technologies that our industry uses to produce, manage, distribute, and display rich media content. Challenging these norms will maintain our place at the forefront of our industry and continue to grow our business. I would like to thank the entire VRX team for their commitment, hard work, and dedication as we continue to improve the online research and booking experience of consumers all over the world. I would also like thank all of our investors who believe in and support our passion for quality and innovation. Regards, David MacLaren President and CEO