Travelzoo® (NASDAQ:TZOO):
- Revenue of $26.4 million, down 8%
year-over-year in constant currencies
- Operating profit of $1.4 million
- Earnings per share (EPS) from
continuing operations of $0.05
- Cash flow used in operations of $2.6
million
Travelzoo, a travel deal site with exclusive offers for members,
today announced financial results for the second quarter ended
June 30, 2017, with revenue of $26.4 million and operating
profit of $1.4 million. In nominal terms, revenue decreased by 11%
year-over-year. In constant currencies, revenue decreased by 8%
year-over-year. Net income was $687,000, with EPS of $0.05, which
includes income from discontinued operations of $54,000.
"We never compromise the quality of the offers which we provide
to our members—even if it resulted in less deals being promoted
during the second quarter of 2017 and a corresponding decrease in
revenue of certain products," said Dr. Holger Bartel, Global CEO of
Travelzoo. "Our top priority is to provide Travelzoo members
outstanding, exclusive travel and entertainment experiences. We
remain ambitious to grow Travelzoo's global brand and
business."
Asia Pacific
Asia Pacific business segment revenue decreased 20%
year-over-year to $2.0 million. In constant currencies, revenue
decreased 16% year-over-year. Operating loss for the second quarter
was $1.2 million, compared to an operating loss of $1.2 million in
the prior-year period.
Europe
Europe business segment revenue decreased 16% year-over-year to
$7.9 million. In constant currencies, revenue decreased 9%
year-over-year. Operating profit for the second quarter was
$268,000, or 3% of revenue, compared to operating income of $1.7
million, or 18% of revenue in the prior-year period.
North America
North America business segment revenue decreased 7%
year-over-year to $16.6 million. Operating profit for the second
quarter was $2.3 million, or 14% of revenue, compared to operating
income of $3.0 million, or 17% of revenue in the prior-year
period.
Members
As of June 30, 2017, Travelzoo had a worldwide unduplicated
number of members of 29.3 million. In Asia Pacific, unduplicated
number of members was 3.6 million as of June 30, 2017,
consistent with June 30, 2016. In Europe, unduplicated number
of members was 8.4 million as of June 30, 2017, up 3% from
June 30, 2016. In North America, unduplicated number of
members was 17.4 million as of June 30, 2017, consistent with
June 30, 2016.
Income Taxes
Income tax expense was $771,000, compared to a $1.5 million
income tax expense in the prior-year period.
Asset Management
During the second quarter of 2017, Travelzoo used $2.6 million
of cash for operating activities. Accounts receivable decreased by
$5.8 million over the prior-year period to $12.6 million. Accounts
payable decreased by $6.6 million over the prior-year period to
$14.2 million. Capital expenditures were $186,000, down from
$503,000 in the prior-year period. As of June 30, 2017, cash
and cash equivalents were $21.3 million.
Conference Call
Travelzoo will host a conference call to discuss second 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® provides our 28 million members insider deals and one
of a kind experiences personally reviewed by one of our deal
experts around the globe. With more than 25 offices worldwide we
have our pulse on outstanding travel, entertainment, and lifestyle
experiences. For over 15 years we have worked in partnership with
more than 2,000 top travel suppliers—our long-standing
relationships allow us access to the very best deals.
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. All
other names are trademarks and/or registered trademarks of their
respective owners.
Travelzoo
Condensed Consolidated Statements of
Operations
(Unaudited)
(In thousands, except per share
amounts)
Three months ended Six months ended June
30, June 30, 2017 2016 2017
2016 Revenues
$
26,411
$
29,798
$
54,840
$
60,626
Cost of revenues 3,222
3,471 6,429
7,322 Gross profit 23,189
26,327 48,411
53,304 Operating expenses: Sales and marketing
14,213 15,455 29,569 30,985 Product development 2,344 2,001 4,701
4,789 General and administrative 5,246
5,434 10,693
11,247 Total operating expenses
21,803 22,890
44,963
47,021 Income from continuing operations 1,386 3,437 3,448 6,283
Other income (expense), net 18
(91 ) 25
42 Income from continuing operations before income taxes
1,404 3,346 3,473 6,325 Income tax expense 771
1,548 1,980
2,702 Income from continuing
operations
$
633
$
1,798
$
1,493
$
3,623
Income from discontinued operations, net of income taxes
54 222
1,938 446 Net
income
$
687
$
2,020
$
3,431
$
4,069
Income per share—basic: Continuing operations
$
0.05
$
0.13
$
0.12
$
0.26
Discontinued operations 0.00
0.01 0.14
0.03 Net income per share—basic
$
0.05
$
0.14
$
0.26
$
0.29
Income per share—diluted: Continuing operations
$
0.05
$
0.13
$
0.12
$
0.26
Discontinued operations 0.00
0.01 0.14
0.03 Net income per share—diluted
$
0.05
$
0.14
$
0.26
$
0.29
Weighted average shares: Basic 13,030 14,066 13,224 14,246
Diluted 13,058 14,066 13,229 14,246
Travelzoo
Condensed Consolidated Balance
Sheets
(Unaudited)
(In thousands)
June 30,2017
December 31,2016
Assets Current assets: Cash and cash equivalents $ 21,331 $
26,838 Accounts receivable, net 12,576 14,415 Income taxes
receivable 639 542 Deposits 709 105 Prepaid expenses and other
1,481 1,773 Deferred tax assets — 793 Total current
assets 36,736 44,466 Deposits and other 413 702 Deferred tax assets
1,860 1,052 Restricted cash 1,413 1,152 Property and equipment, net
5,418 6,158 Total assets $ 45,840
$ 53,530
Liabilities and
Stockholders’ Equity Current liabilities: Accounts payable $
14,194 $ 19,714 Accrued expenses and other 9,334 8,699 Deferred
revenue 954 719 Income tax payable 1,056 691 Total
current liabilities 25,538 29,823 Long-term tax liabilities 2,602
2,879 Long-term deferred rent and other 2,674 2,764
Total liabilities 30,814 35,466 Common stock 128 135
Additional paid-in capital — — Accumulated other comprehensive loss
(3,687 ) (3,787 ) Retained earnings 18,585 21,716
Total stockholders’ equity 15,026 18,064 Total
liabilities and stockholders’ equity $ 45,840
$ 53,530
Travelzoo
Condensed Consolidated Statements of
Cash Flows
(Unaudited)
(In thousands)
Three months ended Six months ended June
30, June 30, 2017 2016 2017
2016 Cash flows from operating activities: Net income
$ 687 $ 2,020 $ 3,431 $ 4,069
Adjustments to reconcile net income to net
cashprovided by (used in) operating activities:
Depreciation and amortization 522 608 1,101 1,250 Discontinued
operations gain on sale of Fly.com domain name — — (2,890 ) —
Deferred income taxes (33 ) 233 (69 ) (211 ) Stock-based
compensation 240 230 480 442 Provision for losses on accounts
receivable (34 ) 36 (27 ) 44 Net foreign currency effects (135 )
(23 ) (224 ) 236 Changes in operating assets and liabilities:
Accounts receivable 1,800 (1,241 ) 2,087 (2,265 ) Income tax
receivable (509 ) (397 ) 35 525 Prepaid expenses and other (132 )
122 (218 ) 220 Accounts payable (2,791 ) (740 ) (6,054 ) (2,210 )
Accrued expenses and other (549 ) 937 441 484 Income tax payable
(1,287 ) 665 179 1,268 Other non-current liabilities (340 ) 46
(278 ) 53 Net cash provided by (used in) operating
activities (2,561 ) 2,496 (2,006 ) 3,905
Cash
flows from investing activities: Proceeds from sale of Fly.com
domain name — — 2,890 — Purchases of property and equipment (186 )
(503 ) (306 ) (648 ) Net cash provided by (used in) investing
activities (186 ) (503 ) 2,584 (648 )
Cash flows from
financing activities: Acquisition of the Asia Pacific business
— — — 58 Payment of loan to related party — — — (5,658 ) Repurchase
of common stock, net (5,062 ) (3,048 ) (6,824 ) (4,956 ) Net cash
used in financing activities (5,062 ) (3,048 ) (6,824 ) (10,556 )
Effect of exchange rate on cash and cash equivalents 546
(192 ) 739 (269 ) Net decrease in cash and cash equivalents
(7,263 ) (1,247 ) (5,507 ) (7,568 ) Cash and cash equivalents at
beginning of period 28,594 28,807 26,838
35,128 Cash and cash equivalents at end of period $
21,331 $ 27,560 $
21,331 $ 27,560 Supplemental disclosure
of cash flow information: Cash paid for income taxes, net $ 2,920 $
1,022 $ 3,230 $ 1,072 Cash paid for interest on related party loan
$ — $ — $ — $ 110
Travelzoo
Segment Information
(Unaudited)
(In thousands)
Three months ended June 30, 2017 Asia Pacific
Europe NorthAmerica Consolidated
Revenue from unaffiliated customers $ 1,963 $ 8,005 $ 16,443 $
26,411 Intersegment revenue (13 ) (108 ) 121 — Total net
revenues 1,950 7,897 16,564 26,411 Operating
profit (loss) $ (1,165 ) $ 268 $
2,283 $ 1,386
Three months
ended June 30, 2016 Asia Pacific Europe
NorthAmerica Consolidated Revenue from
unaffiliated customers $ 2,401 $ 9,638 $ 17,759 $ 29,798
Intersegment revenue 37 (181 ) 144 — Total net
revenues 2,438 9,457 17,903 29,798 Operating
profit (loss) $ (1,233 ) $ 1,704
$ 2,966 $ 3,437
Six
months ended June 30, 2017 Asia
Pacific Europe
NorthAmerica Consolidated
Revenue from unaffiliated customers $ 3,807 $
17,223 $ 33,810 $ 54,840
Intersegment revenue (44 ) (255 ) 299 — Total net revenues
3,763 16,968 34,109 54,840 Operating profit
(loss) $ (2,706 ) $ 1,217 $
4,937 $ 3,448
Six months
ended June 30, 2016 Asia Pacific Europe
NorthAmerica Consolidated Revenue from
unaffiliated customers $ 4,651 $ 20,279 $ 35,696 $ 60,626
Intersegment revenue 42 (264 ) 222 — Total net
revenues 4,693 20,015 35,918 60,626 Operating
profit (loss) $ (2,282 ) $ 3,611
$ 4,954 $ 6,283
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version on businesswire.com: http://www.businesswire.com/news/home/20170727005357/en/
TravelzooInvestor Relations:Lijun Qiir@travelzoo.com
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