Delaware | 000-50171 | 36-4415727 | |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |
590 Madison Avenue, 37th Floor New York, New York | 10022 | ||
(Address of principal executive offices) | (Zip Code) | ||
Registrant’s telephone number, including area code (212) 484-4900 | |||
(Former Name or Former Address, if Changed Since Last Report) |
TRAVELZOO INC. | |||
Date: | July 18, 2013 | By: | /s/ Glen Ceremony |
Glen Ceremony Chief Financial Officer |
Exhibit | Description |
99.1 | Press Release, dated July 18, 2013. |
Travelzoo Inc. 590 Madison Avenue 37th Floor New York, NY 10022 Media Contact: Christie McConnell Travelzoo, North America +1 (212) 484-4912 cmcconnell@travelzoo.com |
• | Revenue of $41.3 million, up 5% year-over-year |
• | Net income of $5.2 million, down 28% year-over-year |
• | Earnings per share of $0.34, compared to $0.45 in the prior-year period |
• | Cash flow from operations of $10.0 million |
• | download the management presentation (PDF format) to be discussed in the conference call; |
• | access the webcast. |
Three months ended | Six months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | $ | 41,327 | $ | 39,360 | $ | 83,504 | $ | 78,693 | |||||||
Cost of revenues | 4,425 | 3,630 | 8,411 | 7,683 | |||||||||||
Gross profit | 36,902 | 35,730 | 75,093 | 71,010 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | 19,457 | 16,061 | 39,115 | 32,326 | |||||||||||
General and administrative | 9,651 | 9,303 | 20,149 | 18,747 | |||||||||||
Unexchanged promotional merger shares | — | — | — | 3,000 | |||||||||||
Total operating expenses | 29,108 | 25,364 | 59,264 | 54,073 | |||||||||||
Income from operations | 7,794 | 10,366 | 15,829 | 16,937 | |||||||||||
Other income (expense) | 112 | (16 | ) | 144 | 83 | ||||||||||
Income before income taxes | 7,906 | 10,350 | 15,973 | 17,020 | |||||||||||
Income taxes | 2,706 | 3,090 | 5,178 | 6,012 | |||||||||||
Net income | $ | 5,200 | $ | 7,260 | $ | 10,795 | $ | 11,008 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.34 | $ | 0.45 | $ | 0.70 | $ | 0.69 | |||||||
Diluted | $ | 0.34 | $ | 0.45 | $ | 0.70 | $ | 0.69 | |||||||
Weighted Average Shares: | |||||||||||||||
Basic | 15,362 | 15,962 | 15,362 | 15,962 | |||||||||||
Diluted | 15,457 | 16,006 | 15,427 | 16,012 |
June 30, 2013 | December 31, 2012 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 73,381 | $ | 61,169 | |||
Accounts receivable, net | 15,463 | 13,626 | |||||
Income taxes receivable | 3,191 | 6,682 | |||||
Deposits | 473 | 389 | |||||
Prepaid expenses and other current assets | 3,400 | 2,260 | |||||
Deferred tax assets | 2,214 | 2,194 | |||||
Total current assets | 98,122 | 86,320 | |||||
Deposits, less current portion | 943 | 1,107 | |||||
Deferred tax assets, less current portion | 1,271 | 1,710 | |||||
Restricted cash | 3,517 | 3,396 | |||||
Property and equipment, net | 5,811 | 4,314 | |||||
Intangible assets, net | 655 | 986 | |||||
Total assets | $ | 110,319 | $ | 97,833 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 28,962 | $ | 28,695 | |||
Accrued expenses | 13,200 | 11,993 | |||||
Deferred revenue | 1,828 | 2,698 | |||||
Deferred rent | 262 | 280 | |||||
Income tax payable | 1,022 | — | |||||
Total current liabilities | 45,274 | 43,666 | |||||
Long-term tax liabilities | 10,239 | 10,030 | |||||
Deferred rent, less current portion | 1,437 | 798 | |||||
Total liabilities | 56,950 | 54,494 | |||||
Common stock | 163 | 163 | |||||
Treasury stock | (7,898 | ) | (7,898 | ) | |||
Additional paid-in capital | 9,476 | 8,863 | |||||
Accumulated other comprehensive loss | (2,115 | ) | (737 | ) | |||
Retained earnings | 53,743 | 42,948 | |||||
Total stockholders’ equity | 53,369 | 43,339 | |||||
Total liabilities and stockholders’ equity | $ | 110,319 | $ | 97,833 |
Three months ended | Six months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 5,200 | $ | 7,260 | $ | 10,795 | $ | 11,008 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 760 | 599 | 1,476 | 1,225 | |||||||||||
Deferred income taxes | 207 | — | 400 | — | |||||||||||
Stock-based compensation | 307 | 307 | 613 | 593 | |||||||||||
Provision for losses on accounts receivable | (45 | ) | 91 | 50 | 199 | ||||||||||
Net foreign currency effects | 19 | 75 | 112 | 40 | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable | (91 | ) | (851 | ) | (2,127 | ) | (2,122 | ) | |||||||
Deposits | 175 | (232 | ) | 20 | (364 | ) | |||||||||
Income tax receivable | 2,029 | 285 | 3,593 | 1,130 | |||||||||||
Prepaid expenses and other current assets | (1,382 | ) | 215 | (1,032 | ) | (79 | ) | ||||||||
Accounts payable | 1,965 | 48 | 845 | 508 | |||||||||||
Accrued expenses | 371 | (317 | ) | 1,221 | 5,302 | ||||||||||
Deferred revenue | (329 | ) | (194 | ) | (847 | ) | (60 | ) | |||||||
Deferred rent | 221 | 41 | 111 | (34 | ) | ||||||||||
Income tax payable | 467 | 1 | 1,038 | (283 | ) | ||||||||||
Other non-current liabilities | 107 | (276 | ) | 210 | (224 | ) | |||||||||
Net cash provided by operating activities | 9,981 | 7,052 | 16,478 | 16,839 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of restricted cash | (263 | ) | — | (263 | ) | — | |||||||||
Purchases of property and equipment | (1,209 | ) | (595 | ) | (2,109 | ) | (1,272 | ) | |||||||
Net cash used in investing activities | (1,472 | ) | (595 | ) | (2,372 | ) | (1,272 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Net cash provided by (used in) financing activities | — | — | — | — | |||||||||||
Effect of exchange rate on cash and cash equivalents | (235 | ) | (855 | ) | (1,894 | ) | (150 | ) | |||||||
Net increase in cash and cash equivalents | 8,274 | 5,602 | 12,212 | 15,417 | |||||||||||
Cash and cash equivalents at beginning of period | 65,107 | 48,559 | 61,169 | 38,744 | |||||||||||
Cash and cash equivalents at end of period | $ | 73,381 | $ | 54,161 | $ | 73,381 | $ | 54,161 | |||||||
Supplemental disclosure of cash flow information: | |||||||||||||||
Cash paid for income taxes, net | $ | 10 | $ | 3,082 | $ | 20 | $ | 5,391 |
Three months ended June 30, 2013 | North America | Europe | Elimination | Consolidated | |||||||||||
Revenue from unaffiliated customers | $ | 30,249 | $ | 11,078 | $ | — | $ | 41,327 | |||||||
Intersegment revenue | 331 | 222 | (553 | ) | — | ||||||||||
Total net revenues | 30,580 | 11,300 | (553 | ) | 41,327 | ||||||||||
Operating income | $ | 5,899 | $ | 1,895 | $ | — | $ | 7,794 | |||||||
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 | |||||||
Six months ended June 30, 2013 | North America | Europe | Elimination | Consolidated | |||||||||||
Revenue from unaffiliated customers | $ | 60,160 | $ | 23,344 | $ | — | $ | 83,504 | |||||||
Intersegment revenue | 575 | 330 | (905 | ) | — | ||||||||||
Total net revenues | 60,735 | 23,674 | (905 | ) | 83,504 | ||||||||||
Operating income | $ | 11,383 | $ | 4,447 | $ | — | $ | 15,830 | |||||||
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 |
(a) | Includes a charge related to unexchanged promotional merger shares for the six months ended June 30, 2012. |