This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Travelzoo Reports Second Quarter 2012 Results

Stocks in this article: TZOO

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 cashprovided 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.

 




2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs