Drmicrocap
11 years ago
Travelzoo Reports Fourth Quarter 2013 Results and Announces Share Repurchase Program
Business Wire Travelzoo Inc.
59 minutes ago
NEW YORK--(BUSINESS WIRE)--
Travelzoo Inc. (TZOO):
Fourth Quarter 2013 Financial Highlights:
Revenue of $37.5 million, up 1% year-over-year
Operating income of $4.5 million, up 3% year-over-year
Net income of $3.2 million
Earnings per share of $0.21, compared to $0.24 in the prior-year period
Cash used in operations was $1.8 million
Travelzoo Inc., a global Internet media company, today announced financial results for the fourth quarter ended December 31, 2013, with revenue of $37.5 million, an increase of 1% year-over-year. Operating income was $4.5 million, up 3% year-over-year. Net income was $3.2 million, with earnings per share of $0.21, down from $0.24 in the prior-year period.
Travelzoo also announced that its board of directors has authorized the repurchase of up to 500,000 of the company's outstanding common shares. Purchases may be made, from time to time, in the open market and will be funded from available cash. The number of shares to be purchased and the timing of purchases will be based on the level of Travelzoo's cash balances, general business and market conditions, and other factors, including alternative investment opportunities.
"Our Travel products showed continued strength in Q4, particularly in Europe, which contributed 40% of the company's profits. These gains were offset by revenue declines in SuperSearch and Fly.com," said Chris Loughlin, chief executive officer. "We will continue to invest in audience and products to spur future growth. These include our hotel booking platform, which is now in internal testing, as well as features that make it easier for our users to find deals when and where they need them, particularly on their mobile devices."
For the full year, revenue was $158.2 million, an increase of 5% year-over-year. GAAP operating income was $2.3 million, down 91% year-over-year. Non-GAAP operating income was $24.3 million, down 15% year-over-year. GAAP net loss was $5.0 million, with loss per share of $0.33, compared to earnings per share of $1.14 in the prior-year period. Non-GAAP net income was $17.0 million, with earnings per share of $1.11, down from $1.33 in the prior-year period. For the year ended December 31, 2013 and 2012, non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share exclude a $22.0 million and a $3.0 million charge related to a reserve for Travelzoo Inc.'s settlement agreements in connection with a dispute over unclaimed property audits.
North America
North America business segment revenue decreased 3% year-over-year to $25.6 million. Operating profit for the fourth quarter was $2.7 million, or 10% of revenue, down from $3.4 million, or 13% of revenue, in the prior-year period.
Europe
Europe business segment revenue increased 12% year-over-year to $11.9 million. In local currency terms, revenue increased 11% year-over-year. Operating profit for the fourth quarter was $1.8 million, or 15% of revenue, up from $1.0 million, or 9% of revenue in the prior-year period.
Search Products
In response to declining revenue and profit from its Search products, which include SuperSearch and Fly.com, the Company has initiated a performance review, which may result in merging the products, discontinuing or replacing one or both of them. "Challenges in traffic acquisition from search engines and poor monetization on mobile devices have led to continued declines in Search revenue," said Glen Ceremony, chief financial officer. "As we are reviewing these products and working on their improvement, we will also put a stronger focus on profitability, which could result in a revenue decline of approximately $1.5 million from SuperSearch versus the prior-year period."
Subscribers
Travelzoo had a total unduplicated number of subscribers in North America and Europe of 23.3 million as of December 31, 2013, up 4% from December 31, 2012. In North America, total unduplicated number of subscribers was 16.6 million as of December 31, 2013, up 3% from December 31, 2012. In Europe, total unduplicated number of subscribers was 6.8 million as of December 31, 2013, up 6% from December 31, 2012.
Income Taxes
Income tax expense was $1.3 million, compared to $692,000 in the prior-year period. The effective income tax rate was 29%, up from 16% in the prior-year period.
Asset Management
During the fourth quarter of 2013, Travelzoo used $1.8 million of cash from operating activities. Accounts receivable increased by $360,000 over the prior-year period to $14.0 million. Accounts payable increased by $3.1 million over the prior-year period to $31.8 million. Capital expenditures were $1.9 million, up from $698,000 in the prior-year period. As of December 31, 2013, cash and cash equivalents were $66.2 million.
Non-GAAP Measures
To give an enhanced view of Travelzoo's operating performance, management has calculated non-GAAP operating expense, non-GAAP operating income, non-GAAP operating margin, non-GAAP effective tax rate, non-GAAP net income and non-GAAP earnings per share by excluding the charges related to our unexchanged promotional shares. The company believes these metrics assist investors to assess certain business trends in the same way that these trends are analyzed by management. The discussion of these non-GAAP metrics are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Non-GAAP metrics are merely a supplement to, and not a replacement for, GAAP financial measures. As the only difference between GAAP and non-GAAP measures is the charges related to our unexchanged promotional shares, today’s reporting should not be viewed as Travelzoo’s intention to report non-GAAP measures in future periods. Refer to the “Reconciliation of GAAP to Non-GAAP Measures” section of this press release for a summary of these non-GAAP measures and their reconciliation to the reported GAAP measures.
Conference Call
Travelzoo will host a conference call to discuss fourth quarter results at 11:00 a.m. ET today. Please visit http://www.travelzoo.com/earnings to
download the management presentation (PDF format) to be discussed in the conference call;
access the webcast.
About Travelzoo
Travelzoo Inc. is a global Internet media company. With more than 26 million subscribers in North America, Europe, and Asia Pacific and 25 offices worldwide, Travelzoo® publishes deals from more than 2,000 travel and entertainment companies. Travelzoo’s deal experts review offers to find the best deals and confirm their true value. In Asia Pacific, Travelzoo is independently owned and operated by Travelzoo (Asia) Ltd. and Travelzoo Japan K.K. under a license agreement with Travelzoo Inc.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect,” “predict,” “project,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions, and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release. Travelzoo and Top 20 are registered trademarks of Travelzoo Inc. All other company and product names mentioned are trademarks of their respective owners.
Travelzoo Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three months ended Twelve months ended
December 31, December 31,
2013 2012 2013 2012
Revenues $ 37,475 $ 37,028 $ 158,234 $ 151,168
Cost of revenues 4,670 4,073 17,402 15,745
Gross profit 32,805 32,955 140,832 135,423
Operating expenses:
Sales and marketing 17,307 18,489 74,870 68,242
General and administrative 11,025 10,109 41,684 38,692
Unexchanged promotional shares — — 22,000 3,000
Total operating expenses 28,332 28,598 138,554 109,934
Income from operations 4,473 4,357 2,278 25,489
Other income 61 92 429 309
Income before income taxes 4,534 4,449 2,707 25,798
Income taxes 1,304 692 7,718 7,600
Net income (loss) $ 3,230 $ 3,757 $ (5,011 ) $ 18,198
Net income (loss) per share:
Basic $ 0.22 $ 0.24 $ (0.33 ) $ 1.15
Diluted $ 0.21 $ 0.24 $ (0.33 ) $ 1.14
Weighted Average Shares:
Basic 14,997 15,659 15,269 15,866
Diluted 15,072 15,659 15,269 15,901
Travelzoo Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
December 31,
2013
December 31,
2012
Assets
Current assets:
Cash and cash equivalents $ 66,223 $ 61,169
Accounts receivable, net 13,986 13,626
Income taxes receivable 2,656 6,682
Deposits 396 389
Prepaid expenses and other current assets 3,202 2,260
Deferred tax assets 1,143 2,194
Restricted cash 200 —
Funds held for reverse/forward stock split 13,668 —
Total current assets 101,474 86,320
Deposits, less current portion 1,168 1,107
Deferred tax assets, less current portion 2,032 1,710
Restricted cash 1,479 3,396
Property and equipment, net 8,245 4,314
Intangible assets, net 404 986
Total assets $ 114,802 $ 97,833
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 31,766 $ 28,695
Accrued expenses 10,543 8,993
Deferred revenue 1,578 2,698
Deferred rent 281 280
Reserve for unexchanged promotional shares 12,726 3,000
Payable to shareholders for reverse/forward stock split 13,668 —
Total current liabilities 70,562 43,666
Long-term tax liabilities 10,436 10,030
Deferred rent, less current portion 2,469 798
Total liabilities 83,467 54,494
Common stock 163 163
Treasury stock (15,662 ) (7,898 )
Additional paid-in capital 10,247 8,863
Accumulated other comprehensive loss (530 ) (737 )
Retained earnings 37,117 42,948
Total stockholders’ equity 31,335 43,339
Total liabilities and stockholders’ equity $ 114,802 $ 97,833
Travelzoo Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Three months ended Twelve months ended
December 31, December 31,
2013 2012 2013 2012
Cash flows from operating activities:
Net income (loss) $ 3,230 $ 3,757 $ (5,011 ) $ 18,198
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization 795 683 2,980 2,539
Deferred income taxes 65 (2,174 ) 706 (2,178 )
Stock-based compensation 395 307 1,384 1,207
Provision for losses on accounts receivable 15 46 (29 ) 162
Net foreign currency effects (5 ) 1 33 (4 )
Changes in operating assets and liabilities:
Accounts receivable 932 1,784 (173 ) (285 )
Deposits (67 ) (24 ) (50 ) (406 )
Income tax receivable 1,873 3,351 4,042 5,171
Prepaid expenses and other current assets 290 328 (685 ) 87
Accounts payable 3,494 5,211 2,453 6,403
Accrued expenses 475 (630 ) 1,515 2,568
Deferred revenue (165 ) 190 (1,121 ) 513
Deferred rent 383 25 682 45
Income tax payable (1,298 ) (1 ) (6 ) (285 )
Reserve for unexchanged promotional shares (12,274 ) — 9,726 3,000
Other non-current liabilities 47 156 406 (35 )
Net cash provided by (used in) operating activities (1,815 ) 13,010 16,852 36,700
Cash flows from investing activities:
Purchases of intangible asset — (677 ) — (677 )
Release (purchases) of restricted cash — (272 ) 1,786 (272 )
Purchases of property and equipment (1,866 ) (698 ) (5,461 ) (2,744 )
Net cash used in investing activities (1,866 ) (1,647 ) (3,675 ) (3,693 )
Cash flows from financing activities:
Repurchase of common stock (7,764 ) (7,898 ) (7,764 ) (11,509 )
Reverse/forward stock split, including transaction costs (688 ) — (688 ) —
Net cash used in financing activities (8,452 ) (7,898 ) (8,452 ) (11,509 )
Effect of exchange rate on cash and cash equivalents 456 70 329 927
Net increase (decrease) in cash and cash equivalents (11,677 ) 3,535 5,054 22,425
Cash and cash equivalents at beginning of period 77,900 57,634 61,169 38,744
Cash and cash equivalents at end of period $ 66,223 $ 61,169 $ 66,223 $ 61,169
Supplemental disclosure of cash flow information:
Cash paid (received) for income taxes, net $ 562 $ (631 ) $ 2,479 $ 4,937
Travelzoo Inc.
Segment Information
(Unaudited)
(In thousands)
Three months ended December 31, 2013
North
America
Europe
Elimination
and Other
Consolidated
Revenue from unaffiliated customers $ 25,586 $ 11,889 $ — $ 37,475
Intersegment revenue 194 11 (205 ) —
Total net revenues 25,780 11,900 (205 ) 37,475
Operating income $ 2,680 $ 1,793 $ — $ 4,473
Three months ended December 31, 2012
North
America
Europe
Elimination
and Other
Consolidated
Revenue from unaffiliated customers $ 26,373 $ 10,655 $ — $ 37,028
Intersegment revenue 157 102 (259 ) —
Total net revenues 26,530 10,757 (259 ) 37,028
Operating income $ 3,387 $ 970 $ — $ 4,357
Twelve months ended December 31, 2013
North
America
Europe
Elimination
and Other (a)
Consolidated
Revenue from unaffiliated customers $ 111,955 $ 46,279 $ — $ 158,234
Intersegment revenue 814 452 (1,266 ) —
Total net revenues 112,769 46,731 (1,266 ) 158,234
Operating income $ 16,568 $ 7,710 $ (22,000 ) $ 2,278
Twelve months ended December 31, 2012
North
America
Europe
Elimination
and Other (a)
Consolidated
Revenue from unaffiliated customers $ 108,787 $ 42,381 $ — $ 151,168
Intersegment revenue 728 143 (871 ) —
Total net revenues 109,515 42,524 (871 ) 151,168
Operating income $ 21,481 $ 7,008 $ (3,000 ) $ 25,489
(a) Includes a charge of $22.0 million and $3.0 million for the twelve months ended December 31, 2013 and 2012, respectively, related to settlement agreements in connection with a dispute over unclaimed property audits.
Travelzoo Inc.
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited)
(In thousands, except per share amounts)
Twelve months ended
December 31,
2013 2012
GAAP operating expense $ 138,554 $ 109,934
Unexchanged promotional shares (a) 22,000 3,000
Non-GAAP operating expense $ 116,554 $ 106,934
GAAP operating income $ 2,278 $ 25,489
Unexchanged promotional shares (a) 22,000 3,000
Non-GAAP operating income $ 24,278 $ 28,489
GAAP operating margin 1.4 % 16.9 %
Unexchanged promotional shares (a) 13.9 % 2.0 %
Non-GAAP operating margin 15.3 % 18.9 %
GAAP effective tax rate 285.1 % 29.5 %
Unexchanged promotional shares (a) (253.9 )% (3.1
)%
Non-GAAP effective tax rate 31.2 % 26.4 %
GAAP net income (loss) $ (5,011 ) $ 18,198
Unexchanged promotional shares (a) 22,000 3,000
Non-GAAP net income $ 16,989 $ 21,198
Earnings (loss) per share $ (0.33 ) $ 1.14
Unexchanged promotional shares (a) 1.44 0.19
Non-GAAP earnings per share (b) $ 1.11 $ 1.33
(a) Includes a charge of $22.0 million and a charge of $3.0 million for the twelve months ended December 31, 2013 and 2012, respectively, related to settlement agreements in connection with a dispute over unclaimed property audits.
(b) Shares used to calculate non-GAAP earnings per share for the twelve months ended December 31, 2013 were 15,355,160, which were different than the shares used in GAAP loss per share calculation due to the anti-dilutive effect on the GAAP loss per share.
Contact:
Media:
Travelzoo Inc.
Glen Ceremony, 212-484-4998
Chief Financial Officer
pr@travelzoo.com
Drmicrocap
11 years ago
Travelzoo Reports Third Quarter 2013 Results
Business WirePress Release: Travelzoo Inc. – 14 hours ago
Travelzoo Inc. (TZOO):
Third Quarter 2013 Financial Highlights:
Revenue of $37.3 million, up 5% year-over-year
Non-GAAP net income of $3.0 million
Non-GAAP earnings per share of $0.19, compared to $0.21 in the prior-year period
GAAP net loss of $19.0 million; GAAP loss per share of $1.24
Cash flow from operations of $2.2 million
Travelzoo Inc., a global Internet media company, today announced financial results for the third quarter ended September 30, 2013, with revenue of $37.3 million, an increase of 5% year-over-year. Non-GAAP operating income was $4.0 million. Non-GAAP net income was $3.0 million, with non-GAAP earnings per share (non-GAAP EPS) of $0.19, down from non-GAAP EPS of $0.21 in the prior-year period. Non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share exclude a $22.0 million charge related to a reserve for Travelzoo Inc.'s settlement agreements in connection with a dispute over unclaimed property audits.
"Our combined Travel business grew 16% year-over-year, this progress was offset by disappointing results in our Search and Local businesses," said Chris Loughlin, chief executive officer. "We continue to invest in product development in order to make it easier to find and book deals on Travelzoo and to spur future growth. We launched a new home page this quarter and intend to start beta-testing our new hotel booking platform at the beginning of next year. Purchases on mobile products increased 41% year-over-year. On the social media side, we are now one of the more active travel brands, with over 1.8 million combined fans and followers on Facebook and Twitter."
North America
North America business segment revenue increased 4% year-over-year to $26.2 million. Non-GAAP operating income for the third quarter ended September 30, 2013 was $2.5 million, or 10% of revenue, down from $3.1 million, or 12% of revenue, in the prior-year period.
Europe
Europe business segment revenue increased 7% year-over-year to $11.0 million. In local currency terms, revenue for the third quarter September 30, 2013 increased 9% year-over-year. Operating profit was $1.5 million, or 13% of revenue, up from an operating profit of $1.1 million, or 10% of revenue in the prior-year period.
Subscribers
Travelzoo had a total unduplicated number of subscribers in North America and Europe of 23.2 million as of September 30, 2013, up 4% from September 30, 2012. In North America, total unduplicated number of subscribers was 16.5 million as of September 30, 2013, up 3% from September 30, 2012. In Europe, total unduplicated number of subscribers was 6.7 million as of September 30, 2013, up 6% from September 30, 2012.
Income Taxes
Income tax expense was $1.2 million, compared to $896,000 in the prior-year period. The Non-GAAP effective income tax rate was 29%, up from 21% in the prior-year period.
Asset Management
During the third quarter of 2013, Travelzoo generated $2.2 million of cash from operating activities. Accounts receivable decreased by $622,000 over the prior-year period to $14.8 million. Accounts payable increased by $4.4 million over the prior-year period to $27.7 million. Capital expenditures were $1.5 million, up from $774,000 in the prior-year period. As of September 30, 2013, cash and cash equivalents were $77.9 million.
Unclaimed Property Audits
Travelzoo entered into agreements with 34 states to resolve those states’ claims related to unclaimed property audits. As previously disclosed in the Company’s reports on Form 10-K and Form 10-Q, multiple states have claimed that certain shares of Travelzoo, which were not claimed by former shareholders of Travelzoo.com Corporation following the 2002 merger, were unclaimed property. While the Company disputes the states’ claims, the Company determined that it was in its best interest to resolve the disputes and settle with 34 of the states.
The multi-state settlement relates to an approximate 700,000 shares of Travelzoo that those states claim may be subject to escheat. An additional 15 states remain that have or may raise claims on a remaining approximate 400,000 shares that were not exchanged following the merger by residents in those states.
The Company expects to make one-time cash payments to the 34 states after further due diligence, which it intends to make from cash on hand. To cover those payments, as well as potential future settlements with the remaining 15 states, the Company recorded an estimated $22.0 million charge in the three months ended September 30, 2013.
Non-GAAP Measures
To give an enhanced view of Travelzoo's operating performance, management has calculated non-GAAP operating expense, non-GAAP North America operating income, non-GAAP operating income, non-GAAP operating margin, non-GAAP effective tax rate, non-GAAP net income and non-GAAP earnings per share by excluding the charges related to our unexchanged merger shares. The company believes these metrics assist investors to assess certain business trends in the same way that these trends are analyzed by management. The discussion of these non-GAAP metrics are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Non-GAAP metrics are merely a supplement to, and not a replacement for, GAAP financial measures. As the only difference between GAAP and non-GAAP measures is the charges related to our unexchanged merger shares, today’s reporting should not be viewed as Travelzoo’s intention to report non-GAAP measures in future periods. Refer to the “Reconciliation of GAAP to Non-GAAP Measures” section of this press release for a summary of these non-GAAP measures and their reconciliation to the reported GAAP measures.
Conference Call
Travelzoo will host a conference call to discuss third quarter results at 11:00 a.m. ET today. Please visit http://www.travelzoo.com/earnings to
download the management presentation (PDF format) to be discussed in the conference call;
access the webcast.
About Travelzoo
Travelzoo Inc. is a global Internet media company. With more than 26 million subscribers in North America, Europe, and Asia Pacific and 25 offices worldwide, Travelzoo® publishes deals from more than 2,000 travel and entertainment companies. Travelzoo’s deal experts review offers to find the best deals and confirm their true value. In Asia Pacific, Travelzoo is independently owned and operated by Travelzoo (Asia) Ltd. and Travelzoo Japan K.K. under a license agreement with Travelzoo Inc.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect,” “predict,” “project,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions, and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release. Travelzoo and Top 20 are registered trademarks of Travelzoo Inc. All other company and product names mentioned are trademarks of their respective owners.
Travelzoo Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three months ended Nine months ended
September 30, September 30,
2013 2012 2013 2012
Revenues $ 37,256 $ 35,447 $ 120,759 $ 114,140
Cost of revenues 4,322 3,989 12,733 11,672
Gross profit 32,934 31,458 108,026 102,468
Operating expenses:
Sales and marketing 18,449 17,427 57,563 49,753
General and administrative 10,510 9,836 30,659 28,583
Unexchanged promotional merger shares 22,000 — 22,000 3,000
Total operating expenses 50,959 27,263 110,222 81,336
Income (loss) from operations (18,025 ) 4,195 (2,196 ) 21,132
Other income 224 135 369 218
Income (loss) before income taxes (17,801 ) 4,330 (1,827 ) 21,350
Income taxes 1,235 896 6,414 6,908
Net income (loss) $ (19,036 ) $ 3,434 $ (8,241 ) $ 14,442
Net income (loss) per share:
Basic $ (1.24 ) $ 0.22 $ (0.54 ) $ 0.91
Diluted $ (1.24 ) $ 0.21 $ (0.54 ) $ 0.90
Weighted Average Shares:
Basic 15,362 15,884 15,362 15,935
Diluted 15,362 15,992 15,362 16,041
Travelzoo Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
September 30,
2013 December 31,
2012
Assets
Current assets:
Cash and cash equivalents $ 77,900 $ 61,169
Accounts receivable, net 14,818 13,626
Income taxes receivable 4,504 6,682
Deposits 501 389
Prepaid expenses and other current assets 3,483 2,260
Deferred tax assets 2,007 2,194
Total current assets 103,213 86,320
Deposits, less current portion 979 1,107
Deferred tax assets, less current portion 1,229 1,710
Restricted cash 1,618 3,396
Property and equipment, net 6,376 4,314
Intangible assets, net 540 986
Total assets $ 113,955 $ 97,833
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 27,676 $ 28,695
Accrued unexchanged promotional merger shares 25,000 3,000
Accrued expenses 10,043 8,993
Deferred revenue 1,740 2,698
Deferred rent 306 280
Income tax payable 1,353 —
Total current liabilities 66,118 43,666
Long-term tax liabilities 10,388 10,030
Deferred rent, less current portion 1,423 798
Total liabilities 77,929 54,494
Common stock 163 163
Treasury stock (7,898 ) (7,898 )
Additional paid-in capital 9,851 8,863
Accumulated other comprehensive loss (797 ) (737 )
Retained earnings 34,707 42,948
Total stockholders’ equity 36,026 43,339
Total liabilities and stockholders’ equity $ 113,955 $ 97,833
Travelzoo Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Three months ended Nine months ended
September 30, September 30,
2013 2012 2013 2012
Cash flows from operating activities:
Net income (loss) $ (19,036 ) $ 3,434 $ (8,241 ) $ 14,442
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 709 630 2,185 1,856
Deferred income taxes 241 (3 ) 641 (3 )
Stock-based compensation 375 307 989 900
Provision for losses on accounts receivable (94 ) (84 ) (44 ) 116
Net foreign currency effects (74 ) (46 ) 38 (6 )
Changes in operating assets and liabilities:
Accounts receivable 1,021 53 (1,106 ) (2,069 )
Deposits (3 ) (17 ) 17 (382 )
Income tax receivable (1,424 ) 689 2,169 1,819
Prepaid expenses and other current assets 59 (161 ) (975 ) (241 )
Accounts payable (1,886 ) 680 (1,041 ) 1,189
Accrued unexchanged promotional shares 22,000 — 22,000 3,000
Accrued expenses (182 ) 897 1,039 3,198
Deferred revenue (109 ) 383 (956 ) 323
Deferred rent 188 55 299 21
Income tax payable 254 (1 ) 1,292 (284 )
Other non-current liabilities 149 34 359 (190 )
Net cash provided by operating activities 2,188 6,850 18,665 23,689
Cash flows from investing activities:
Purchases of restricted cash 2,048 — 1,786 —
Purchases of property and equipment (1,487 ) (774 ) (3,596 ) (2,046 )
Net cash provided by (used in) investing activities 561 (774 ) (1,810 ) (2,046 )
Cash flows from financing activities:
Cash used in purchase of common stock — (3,611 ) — (3,611 )
Net cash used in financing activities — (3,611 ) — (3,611 )
Effect of exchange rate on cash and cash equivalents 1,770 1,008 (124 ) 858
Net increase in cash and cash equivalents 4,519 3,473 16,731 18,890
Cash and cash equivalents at beginning of period 73,381 54,161 61,169 38,744
Cash and cash equivalents at end of period $ 77,900 $ 57,634 $ 77,900 $ 57,634
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net $ 1,897 $ 177 $ 1,917 $ 5,568
Travelzoo Inc.
Segment Information
(Unaudited)
(In thousands)
Three months ended September 30, 2013 North
America
Europe
Elimination
and Other (a)
Consolidated
Revenue from unaffiliated customers $ 26,209 $ 11,047 $ — $ 37,256
Intersegment revenue 361 110 (471 ) —
Total net revenues 26,570 11,157 (471 ) 37,256
Operating income $ 2,506 $ 1,469 $ (22,000 ) $ (18,025 )
Three months ended September 30, 2012 North
America
Europe Elimination Consolidated
Revenue from unaffiliated customers $ 25,147 $ 10,300 $ — $ 35,447
Intersegment revenue 211 10 (221 ) —
Total net revenues 25,358 10,310 (221 ) 35,447
Operating income $ 3,121 $ 1,074 $ — $ 4,195
Nine months ended September 30, 2013 North
America Europe
Elimination
and Other (b)
Consolidated
Revenue from unaffiliated customers $ 86,368 $ 34,391 $ — $ 120,759
Intersegment revenue 757 440 (1,197 ) —
Total net revenues 87,125 34,831
(1,197
) 120,759
Operating income $ 13,888 $ 5,916 $ (22,000 ) $ (2,196 )
Nine months ended September 30, 2012 North
America Europe
Elimination
and Other (b)
Consolidated
Revenue from unaffiliated customers $ 82,415 $ 31,725 $ — $ 114,140
Intersegment revenue 496 41 (537 ) —
Total net revenues 82,911 31,766 (537 ) 114,140
Operating income $ 18,094 $ 6,038 $ (3,000 ) $ 21,132
(a) Includes a charge of $22.0 million for the three months ended September 30, 2013 related
to settlement agreements in connection with a dispute over unclaimed property audits.
(b) Includes a charge of $22.0 million and $3.0 million for the nine months ended September 30, 2013
and 2012, respectively, related to settlement agreements in connection with a dispute over
unclaimed property audits.
Travelzoo Inc.
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited)
(In thousands, except per share amounts)
Three months ended Nine months ended
September 30, September 30,
2013 2012 2013 2012
GAAP operating expense $ 50,959 $ 27,263 $ 110,222 $ 81,336
Unexchanged merger shares (a) (b) 22,000 — 22,000 3,000
Non-GAAP operating expense $ 28,959 $ 27,263 $ 88,222 $ 78,336
GAAP operating income (loss) $ (18,025 ) $ 4,195 $ (2,196 ) $ 21,132
Unexchanged merger shares (a) (b) 22,000 — 22,000 3,000
Non-GAAP operating income $ 3,975 $ 4,195 $ 19,804 $ 24,132
GAAP operating margin (48.4) % 11.8 % (1.8) % 18.5 %
Unexchanged merger shares (a) (b) 59.1 % — % 18.2 % 2.6 %
Non-GAAP operating margin 10.7 % 11.8 % 16.4 % 21.1 %
GAAP effective tax rate (6.9) % 20.7 % (351.1) % 32.4 %
Unexchanged merger shares (a) (b) 36.4 % — % 382.9 % (4.0) %
Non-GAAP effective tax rate 29.4 % 20.7 % 31.8 % 28.4 %
GAAP net income (loss) $ (19,036 ) $ 3,434 $ (8,241 ) $ 14,442
Unexchanged merger shares (a) (b) 22,000 — 22,000 3,000
Non-GAAP net income $ 2,964 $ 3,434 $ 13,759 $ 17,442
Earnings (loss) per share $ (1.24 ) $ 0.21 $ (0.54 ) $ 0.90
Unexchanged merger shares (a) (b) 1.43 — 1.42 0.19
Non-GAAP earnings per share (c) $ 0.19 $ 0.21 $ 0.88 $ 1.09
(a) Includes a charge of $22.0 million for the three months ended September 30, 2013 related to
settlement agreements in connection with a dispute over unclaimed property audits.
(b) Includes a charge $22.0 million and $3.0 million for the nine months ended September 30, 2013
and 2012, respectively, related to settlement agreements in connection with a dispute over
unclaimed property audits.
(c) Shares used to calculate non-GAAP earnings per share for the three months ended September 30,
2013 were 15,482,802, which were different than the shares used in GAAP loss per share
calculation due to the anti-dilutive effect on the GAAP loss per share. Shares used to calculate
non-GAAP earnings per share for the nine months ended September 30, 2013 were 15,550,982,
which were different than the shares used in GAAP loss per share calculation due to the anti-
dilutive effect on the GAAP loss per share.
Contact:
Media:
Travelzoo, North America
Christie McConnell, 212-484-4912
cmcconnell@travelzoo.com
Drmicrocap
12 years ago
Travelzoo Reports First Quarter 2013 Results
Press Release: Travelzoo – 4 hours ago.. .
Travelzoo Inc. (TZOO):
• Revenue of $42.2 million, up 7% year-over-year
• Net income of $5.6 million, up 49% year-over-year
• Earnings per share of $0.36, compared to $0.23 (GAAP) / $0.42 (non-GAAP) in the prior-year period
• Cash flow from operations of $6.5 million
Travelzoo Inc., a global Internet media company, today announced financial results for the first quarter ended March 31, 2013, with revenue of $42.2 million, an increase of 7% year-over-year. Operating profit was $8.0 million. Net income was $5.6 million, with earnings per share of $0.36, up from $0.23 in the prior-year period. Non-GAAP earnings per share was $0.36, down from $0.42 in the prior-year period.
“We kicked off 2013 with record revenues, driven by strong performance within our travel segments in both North America and Europe,” said Chris Loughlin, chief executive officer. “We accelerated subscriber growth and made significant improvements in audience engagement across email, social media and mobile apps. We continued to develop our new hotel booking platform, which we plan to roll out later this year.”
North America
North America business segment revenue increased 5% year-over-year to $30.2 million. Operating profit for the first quarter was $5.5 million, or 18% of revenue, down from $7.1 million, or 25% of revenue, in the prior-year period. The decrease in operating profit was a result of increased expenses related to sales force expansion, hotel booking platform development, traffic acquisition and subscriber marketing.
Europe
Europe business segment revenue increased 14% year-over-year to $12.4 million. In local currency terms, revenue for the first quarter increased 14% year-over-year. Operating profit was $2.5 million, or 21% of revenue, up from an operating profit of $2.4 million, or 23% of revenue in the prior-year period.
Subscribers
Travelzoo had a total unduplicated number of subscribers in North America and Europe of 22.9 million as of March 31, 2013, up 5% from March 31, 2012. In North America, total unduplicated number of subscribers was 16.3 million as of March 31, 2013, up 3% from March 31, 2012. In Europe, total unduplicated number of subscribers was 6.5 million as of March 31, 2013, up 9% from March 31, 2012.
Income Taxes
Income tax expense was $2.5 million, compared to $2.9 million in the prior-year period. The non-GAAP effective income tax rate was 31%, up from 30% in the prior-year period.
Asset Management
During the first quarter 2013, Travelzoo generated $6.5 million of cash from operating activities. Accounts receivable increased by $648,000 over the prior-year period to $15.3 million. Accounts payable increased by $4.5 million over the prior-year period to $26.9 million. Capital expenditures were $900,000, up from $678,000 in the prior-year period. Travelzoo exited the first quarter with $65.1 million in cash and cash equivalents.
Non-GAAP Measures
To give an enhanced view of the company's operating performance, management has calculated non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share by excluding the $3 million charge related to our unexchanged promotional merger shares in the prior-year period. The company believes these metrics assist investors to assess certain business trends in the same way that these trends are analyzed by management. The discussion of non-GAAP operating income, non-GAAP net income, and non-GAAP earnings share are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. As the only difference between GAAP and non-GAAP measures is the charge related to our unexchanged promotional merger shares in the prior- year period, today's reporting should not be viewed as the company's intention to report non-GAAP measures in future periods. Refer to the “Reconciliation of GAAP to Non-GAAP Measures” section of this release for a summary of these non-GAAP measures and their reconciliation to the reported GAAP measures.
Conference Call
Travelzoo will host a conference call to discuss first quarter results at 11:00 a.m. ET today. Please visit http://www.travelzoo.com/earnings to
• download the management presentation (PDF format) to be discussed in the conference call;
• access the webcast.
About Travelzoo
Travelzoo Inc. is a global Internet media company. With more than 26 million subscribers in North America, Europe, and Asia Pacific and 25 offices worldwide, Travelzoo® publishes deals from more than 2,000 travel and entertainment companies. Travelzoo’s deal experts review offers to find the best deals and confirm their true value. In Asia Pacific, Travelzoo is independently owned and operated by Travelzoo (Asia) Ltd. and Travelzoo Japan K.K. under a license agreement with Travelzoo Inc.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect,” “predict,” “project,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions, and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release. Travelzoo and Top 20 are registered trademarks of Travelzoo Inc. All other company and product names mentioned are trademarks of their respective owners.
Drmicrocap
12 years ago
Travelzoo Reports First Quarter 2013 Results
Press Release: Travelzoo – 4 hours ago.. .
Travelzoo Inc. (TZOO):
• Revenue of $42.2 million, up 7% year-over-year
• Net income of $5.6 million, up 49% year-over-year
• Earnings per share of $0.36, compared to $0.23 (GAAP) / $0.42 (non-GAAP) in the prior-year period
• Cash flow from operations of $6.5 million
Travelzoo Inc., a global Internet media company, today announced financial results for the first quarter ended March 31, 2013, with revenue of $42.2 million, an increase of 7% year-over-year. Operating profit was $8.0 million. Net income was $5.6 million, with earnings per share of $0.36, up from $0.23 in the prior-year period. Non-GAAP earnings per share was $0.36, down from $0.42 in the prior-year period.
“We kicked off 2013 with record revenues, driven by strong performance within our travel segments in both North America and Europe,” said Chris Loughlin, chief executive officer. “We accelerated subscriber growth and made significant improvements in audience engagement across email, social media and mobile apps. We continued to develop our new hotel booking platform, which we plan to roll out later this year.”
North America
North America business segment revenue increased 5% year-over-year to $30.2 million. Operating profit for the first quarter was $5.5 million, or 18% of revenue, down from $7.1 million, or 25% of revenue, in the prior-year period. The decrease in operating profit was a result of increased expenses related to sales force expansion, hotel booking platform development, traffic acquisition and subscriber marketing.
Europe
Europe business segment revenue increased 14% year-over-year to $12.4 million. In local currency terms, revenue for the first quarter increased 14% year-over-year. Operating profit was $2.5 million, or 21% of revenue, up from an operating profit of $2.4 million, or 23% of revenue in the prior-year period.
Subscribers
Travelzoo had a total unduplicated number of subscribers in North America and Europe of 22.9 million as of March 31, 2013, up 5% from March 31, 2012. In North America, total unduplicated number of subscribers was 16.3 million as of March 31, 2013, up 3% from March 31, 2012. In Europe, total unduplicated number of subscribers was 6.5 million as of March 31, 2013, up 9% from March 31, 2012.
Income Taxes
Income tax expense was $2.5 million, compared to $2.9 million in the prior-year period. The non-GAAP effective income tax rate was 31%, up from 30% in the prior-year period.
Asset Management
During the first quarter 2013, Travelzoo generated $6.5 million of cash from operating activities. Accounts receivable increased by $648,000 over the prior-year period to $15.3 million. Accounts payable increased by $4.5 million over the prior-year period to $26.9 million. Capital expenditures were $900,000, up from $678,000 in the prior-year period. Travelzoo exited the first quarter with $65.1 million in cash and cash equivalents.
Non-GAAP Measures
To give an enhanced view of the company's operating performance, management has calculated non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share by excluding the $3 million charge related to our unexchanged promotional merger shares in the prior-year period. The company believes these metrics assist investors to assess certain business trends in the same way that these trends are analyzed by management. The discussion of non-GAAP operating income, non-GAAP net income, and non-GAAP earnings share are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. As the only difference between GAAP and non-GAAP measures is the charge related to our unexchanged promotional merger shares in the prior- year period, today's reporting should not be viewed as the company's intention to report non-GAAP measures in future periods. Refer to the “Reconciliation of GAAP to Non-GAAP Measures” section of this release for a summary of these non-GAAP measures and their reconciliation to the reported GAAP measures.
Conference Call
Travelzoo will host a conference call to discuss first quarter results at 11:00 a.m. ET today. Please visit http://www.travelzoo.com/earnings to
• download the management presentation (PDF format) to be discussed in the conference call;
• access the webcast.
About Travelzoo
Travelzoo Inc. is a global Internet media company. With more than 26 million subscribers in North America, Europe, and Asia Pacific and 25 offices worldwide, Travelzoo® publishes deals from more than 2,000 travel and entertainment companies. Travelzoo’s deal experts review offers to find the best deals and confirm their true value. In Asia Pacific, Travelzoo is independently owned and operated by Travelzoo (Asia) Ltd. and Travelzoo Japan K.K. under a license agreement with Travelzoo Inc.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect,” “predict,” “project,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions, and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release. Travelzoo and Top 20 are registered trademarks of Travelzoo Inc. All other company and product names mentioned are trademarks of their respective owners.
TheFinalCD
12 years ago
Second Quarter 2012 Financial Highlights:
• Revenue of $39.4 million, up 5% year-over-year
• Operating Income of $10.4 million, up 36% year-over-year
• Net income of $7.3 million, up 48% year-over-year
• Earnings per share of $0.45, compared to $0.30 in the prior-year period
• Cash flow from operations of $7.1 million
Travelzoo Inc., a global Internet media company, today announced financial results for the second quarter ended June 30, 2012, with revenue of $39.4 million, an increase of 5% year-over-year. Operating income was $10.4 million, up 36% year-over-year. Net income was $7.3 million, with earnings per share of $0.45, up from $0.30 in the prior-year period.
“Our strategy of publishing high-quality deals, combined with efficient execution, has led to record operating profits in Europe and North America and an overall operating margin of 26%, the highest since 2007,” said Chris Loughlin, chief executive officer of Travelzoo. “We now intend to reaccelerate growth by investing more significantly into growing our audience, expanding our mobile offerings, and continuing our sales force ramp.”
North America
North America business segment revenue grew 4% year-over-year to $28.7 million. Operating income for the second quarter was $7.8 million, or 27% of revenue, up from $6.5 million, or 24% of revenue, in the prior-year period.
Europe
Europe business segment revenue grew 7% year-over-year to $10.6 million. In local currency terms, revenue for the second quarter grew 10% year-over-year. Operating income for the second quarter was $2.5 million, compared to an operating profit of $1.1 million in the prior-year period.
Subscribers
Travelzoo had a total unduplicated number of subscribers in North America and Europe of 22.1 million as of June 30, 2012, up 6% from June 30, 2011. In North America, total unduplicated number of subscribers was 15.9 million as of June 30, 2012, up 4% from June 30, 2011. In Europe, total unduplicated number of subscribers was 6.1 million as of June 30, 2012, up 12% from June 30, 2011.
Income Taxes
Income tax expense was $3.1 million, compared to $2.8 million in the prior-year period. The effective income tax rate was 30%, down from 36% in the prior-year period.
Asset Management
During the second quarter 2012, Travelzoo generated $7.1 million of cash from operating activities. Accounts receivable decreased by $700,000 over the prior-year period to $15.2 million. Accounts payable increased by $6.5 million over the prior-year period to $22.1 million. Capital expenditures were $595,000, up from $356,000 in the prior-year period. Travelzoo exited the second quarter with $54.2 million in cash and cash equivalents.
Conference Call
Travelzoo will host a conference call to discuss first quarter results at 11:00 a.m. ET today. Please visit http://www.travelzoo.com/earnings to
• download the management presentation (PDF format) to be discussed in the conference call;
• access the webcast.
About Travelzoo
Travelzoo Inc. is a global Internet media company. With more than 25 million subscribers in North America, Europe, and Asia Pacific and 25 offices worldwide, Travelzoo® publishes deals from more than 2,000 travel and entertainment companies. Travelzoo’s deal experts review offers to find the best deals and confirm their true value. In Asia Pacific, Travelzoo is independently owned and operated by Travelzoo (Asia) Ltd. and Travelzoo Japan K.K. under a license agreement with Travelzoo Inc.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect,” “predict,” “project,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions, and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release. Travelzoo and Top 20 are registered trademarks of Travelzoo Inc. All other company and product names mentioned are trademarks of their respective owners.
Travelzoo Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three months ended
Six months ended
June 30,
June 30,
2012
2011
2012
2011
Revenues
$ 39,360
$ 37,565
$ 78,693
$ 74,525
Cost of revenues
3,630
2,940
7,683
5,382
Gross profit
35,730
34,625
71,010
69,143
Operating expenses:
Sales and marketing
16,061
18,702
32,326
34,833
General and administrative
9,303
8,295
18,747
16,689
Unexchanged merger shares
-
-
3,000
20,000
Total operating expenses
25,364
26,997
54,073
71,522
Operating income (loss)
10,366
7,628
16,937
(2,379)
Other income (expense)
(16)
42
83
104
Income (loss) before income taxes
10,350
7,670
17,020
(2,275)
Income taxes
3,090
2,752
6,012
6,762
Net income (loss)
$ 7,260
$ 4,918
$ 11,008
$ (9,037)
Net income (loss) per share:
Basic
$ 0.45
$ 0.30
$ 0.69
$ (0.55)
Diluted
$ 0.45
$ 0.30
$ 0.69
$ (0.55)
Weighted Average Shares:
Basic
15,962
16,462
15,962
16,456
Diluted
16,006
16,585
16,012
16,456
Travelzoo Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
June 30,
2012
December 31,
2011
Assets
Current assets:
Cash and cash equivalents
$
54,161
$
38,744
Accounts receivable, net
15,236
13,340
Income taxes receivable
2,493
3,625
Deposits
376
278
Prepaid expenses and other current assets
2,601
2,123
Deferred tax assets
1,755
1,754
Total current assets
76,622
59,864
Deposits, less current portion
1,038
776
Deferred tax assets, less current portion
344
344
Restricted cash
3,045
3,103
Property and equipment, net
3,711
3,557
Intangible assets, net
528
704
Total assets
$
85,288
$
68,348
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
22,129
$
21,731
Accrued expenses
11,606
6,311
Deferred revenue
2,108
2,168
Deferred rent
217
114
Income tax payable
-
279
Total current liabilities
36,060
30,603
Long-term tax liabilities
2,001
2,225
Deferred rent, less current portion
929
761
Total liabilities
38,990
33,589
Common stock
164
164
Treasury stock
-
(15,123)
Additional paid-in capital
8,249
7,656
Accumulated other comprehensive loss
(1,484)
(1,422)
Retained earnings
39,369
43,484
Total stockholders' equity
46,298
34,759
Total liabilities and stockholders' equity
$
85,288
$
68,348
Travelzoo Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Three months ended
Six months ended
June 30,
June 30,
2012
2011
2012
2011
Cash flows from operating activities:
Net income (loss)
$ 7,260
$ 4,918
$ 11,008
$ (9,037)
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization
599
666
1,225
1,309
Deferred income taxes
-
74
-
160
Stock-based compensation
307
187
593
375
Provision for losses on accounts receivable
91
24
199
43
Tax benefit from exercise of stock options
-
-
-
(268)
Net foreign currency effects
75
1
40
(29)
Changes in operating assets and liabilities:
Accounts receivable
(851)
462
(2,122)
(2,456)
Deposits
(232)
(99)
(364)
(660)
Income tax receivable
285
(2,654)
1,130
(2,390)
Prepaid expenses and other current assets
215
(309)
(79)
(117)
Accounts payable
48
2,164
508
5,600
Accrued expenses
(317)
(16,248)
5,302
7,185
Deferred revenue
(194)
78
(60)
98
Deferred rent
41
82
(34)
95
Income tax payable
1
(607)
(283)
(519)
Other non-current liabilities
(276)
14
(224)
29
Net cash provided by (used in) operating activities
7,052
(11,247)
16,839
(582)
Cash flows from investing activities:
Purchases of property and equipment
(595)
(356)
(1,272)
(1,056)
Net cash used in investing activities
(595)
(356)
(1,272)
(1,056)
Cash flows from financing activities:
Proceeds from exercise of stock options
-
-
-
40
Tax benefit of stock option exercises
-
-
-
268
Net cash provided by financing activities
-
-
-
308
Effect of exchange rate on cash and cash equivalents
(855)
(9)
(150)
232
Net increase (decrease) in cash and cash equivalents
5,602
(11,612)
15,417
(1,098)
Cash and cash equivalents at beginning of period
48,559
51,698
38,744
41,184
Cash and cash equivalents at end of period
$ 54,161
$ 40,086
$ 54,161
$ 40,086
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net
3,082
5,918
5,391
9,476
Travelzoo Inc.
Segment Information
(Unaudited)
(In thousands)
Three months ended June 30, 2012
North
America
Europe
Elimination
Consolidated
Revenue from unaffiliated customers
$
28,712
$
10,648
$
-
$
39,360
Intersegment revenue
205
21
(226)
-
Total net revenues
28,917
10,669
(226)
39,360
Operating income
$
7,831
$
2,535
$
-
$
10,366
Three months ended June 30, 2011
North
America
Europe
Elimination
Consolidated
Revenue from unaffiliated customers
$
27,588
$
9,977
$
-
$
37,565
Intersegment revenue
112
57
(169)
-
Total net revenues
27,700
10,034
(169)
37,565
Operating income
$
6,543
$
1,086
$
-
$
7,629
Six months ended June 30, 2012
North
America
Europe
Elimination
and Other (a)
Consolidated
Revenue from unaffiliated customers
$
57,268
$
21,425
$
-
$
78,693
Intersegment revenue
470
31
(501)
-
Total net revenues
57,738
21,456
(501)
78,693
Operating income
$
14,972
$
4,965
$
(3,000)
$
16,937
Six months ended June 30, 2011
North
America
Europe
Elimination
and Other (a)
Consolidated
Revenue from unaffiliated customers
$
55,105
$
19,420
$
-
$
74,525
Intersegment revenue
213
61
(274)
-
Total net revenues
55,318
19,481
(274)
74,525
Operating income (loss)
$
15,794
$
1,827
$
(20,000)
$
(2,379)
(a) Includes a charge related to unexchanged shares for the six months ended June 30, 2012 and June 30, 2011.
.
.
Contact:.
.
Travelzoo
Media:
Christie McConnell, +1 212-484-4912
cmcconnell@travelzoo.com
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