ATLANTA, Aug. 13 /PRNewswire-FirstCall/ -- TRX, Inc. ([ www.trx.com ]) (OTC: TRXI), a world-leading provider of travel technology, process automation, consulting and data services, today reported financial results for the quarter ended 30 June 2010.

Total revenues excluding client reimbursements for the second quarter of 2010 were $14.0 million compared with $14.9 million in the second quarter of 2009. Net income for the second quarter was $403,000, compared with net income of $22,000 in the second quarter of 2009. Net income per diluted share was $0.02 compared to net income per diluted share of $0.00 for the second quarter of 2009. Revenues from transaction processing services for the second quarter of 2010 decreased to $11.3 million from $12.2 million in the second quarter of 2009. Revenues from data reporting services remained constant at $2.7 million for both the second quarter of 2010 and 2009.

Adjusted EBITDA was $1.9 million for the quarter, compared with $1.8 million in the second quarter of 2009.

"Our focus on helping clients reduce costs and drive efficiencies translated into solid financial performance this quarter," said TRX President & CEO Shane Hammond. "Continued strong performance by our operations and product development teams has led to organic client expansion, and new revenue streams for TRX."

Based on management's expectations for the calendar year, TRX reiterated its 2010 annual guidance as follows:

Revenues of $57 to 58 million
Adjusted EBITDA of $6 to 7 million
Capital Expenditures of approximately $3 million

Use of Non-GAAP Financial Measures

TRX provides financial measures and terms not calculated in accordance with accounting principles generally accepted in the United States (GAAP). Presentation of non-GAAP measures such as EBITDA and Adjusted EBITDA provide investors with an alternative method for assessing our operating results in a manner that enables investors to more thoroughly evaluate our performance. These non-GAAP measures provide a baseline for assessing the Company's future earnings expectations. TRX management uses these non-GAAP measures for the same purpose. The non-GAAP measures included in this release are provided to give investors access to the types of measures that we use in analyzing our results.

EBITDA consists of GAAP net income adjusted for the items included in the accompanying reconciliation. EBITDA provides useful information to investors about the Company's performance because it eliminates the effects of period to period changes in the cost associated with capital investments and interest expense. Adjusted EBITDA consists of EBITDA adjusted for the items included in the accompanying reconciliation. EBITDA and Adjusted EBITDA do not give effect to the cash the Company must use to service its debt or pay its income taxes and thus do not reflect the funds generated from operations or actually available for capital expenditures.

TRX's calculation of EBITDA and Adjusted EBITDA is not necessarily comparable to similarly titled measures reported by other companies. These non-GAAP measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Schedules that reconcile EBITDA and Adjusted EBITDA to GAAP net income (loss) are included with this release.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking" statements as defined in Section 27A of the Securities Act of 1933 (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), or in releases made by the Securities and Exchange Commission, all as may be amended from time to time. Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of the PSLRA. Any such forward-looking statements reflect our beliefs and assumptions and are based on information currently available to us and are subject to risks and uncertainties that could cause actual results to differ materially, including but not limited to, the loss of key clients, volatility in the number of transactions we service, failure or interruptions of our software, hardware and other systems, industry declines, competitive pressures and other risks, including those discussed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2009.

Forward-looking statements are predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. These cautionary statements are being made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the "safe harbor" provisions of such laws. TRX, Inc. cautions investors that any forward-looking statements we make are not guarantees or indicative of future performance.

Pre-recorded Call Information

After the earnings release has been furnished to the SEC, a pre-recorded call, together with a slide presentation offering additional comments on the quarter will be available to all investors at [ www.trx.com ] under the Investors section of the website, both as a webcast and in the form of transcript. An archived webcast, transcript and slide presentation will remain available on the company's Website for approximately 90 days.

About TRX

TRX is a world-leading travel technology and data services provider, offering more than 20 software-as-a-service utilities for online booking, reservation processing, data intelligence, and process automation. We deliver our technology applications in an on-demand environment to travel agencies, corporations, travel suppliers, government agencies, credit card associations, credit card issuing banks, and third-party administrators. We provide patented savings maximization solutions via our travel analytics consulting practice, extending spend management services to travel buyers all over the world. We complement all of these offerings with a global workforce focused on travel process automation and reengineering. For more information about TRX or to contact a TRX sales office, phone 404.929.6100 or visit the company's Web site at [ www.trx.com ].

TRX, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)


			Three Months				Six Months
			Ended June 30,				Ended June 30,
			2010		2009		2010		2009
REVENUES:
	Transaction processing		$	11,270	$	12,235	$	22,886	$	24,281
	Data reporting			2,735		2,705		5,713		5,558
		Transaction and other revenues		14,005		14,940		28,599		29,839
	Client reimbursements			147		145		231		247
		Total revenues		14,152		15,085		28,830		30,086

EXPENSES:
	Operating			8,267		9,195		16,819		18,199
	Selling, general and administrative			2,946		3,265		5,992		5,539
	Technology development			829		801		1,780		2,466
	Client reimbursements			147		145		231		247
	Impairment of goodwill, intangible assets and other long-lived assets			76		-		165		43,692
	Depreciation and amortization			1,050		1,406		2,080		3,787
		Total expenses		13,315		14,812		27,067		73,930

OPERATING INCOME (LOSS)				837		273		1,763		(43,844)

INTEREST (EXPENSE) INCOME:
	Interest income			-		1		6		10
	Interest expense			(169)		(201)		(353)		(392)
		Total interest expense, net		(169)		(200)		(347)		(382)

INCOME (LOSS) BEFORE INCOME TAXES				668		73		1,416		(44,226)

INCOME TAX PROVISION (BENEFIT)				265		51		530		(633)

NET INCOME (LOSS)			$	403	$	22	$	886	$	(43,593)

Net Income (Loss) per Share
	Basic and diluted		$	0.02	$	0.00	$	0.05	$	(2.37)

Weighted Average Shares Outstanding
	Basic			18,466		18,427		18,466		18,417
	Diluted			18,569		18,427		18,608		18,417

Other Data:
	Adjusted EBITDA			1,943		1,754		3,934		3,780
	Capital expenditures			682		628		1,662		1,820

		As of June 30,		As of December 31,
		2010		2009
Consolidated Balance Sheet Data:
	Cash and cash equivalents	$	2,766	$	2,897
	Total shareholders' deficit		(2,293)		(3,008)

TRX, INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF GAAP FINANCIAL MEASURES
TO NON-GAAP FINANCIAL MEASURES
(In thousands)

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA

	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2010		2009		2010		2009


Net income (loss)		403		22		886		(43,593)
Depreciation and amortization		1,050		1,406		2,080		3,787
Interest expense, net		169		200		347		382
Income tax provision (benefit)		265		51		530		(633)

EBITDA		1,887		1,679		3,843		(40,057)
Impairment of goodwill, intangible assets and other long-lived assets		76		-		165		43,692
Stock compensation (credit) expense		(20)		75		(74)		145
Adjusted EBITDA	$	1,943	$	1,754	$	3,934	$	3,780