• 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 vendors—our long-standing relationships allow us access to the very best deals.

Travelzoo Reports First Quarter 2019 Results

Press Releases

Travelzoo Reports First Quarter 2019 Results

NEW YORK, April 25, 2019 (GLOBE NEWSWIRE) -- Travelzoo® (NASDAQ: TZOO):

  • Revenue of $30.8 million, up 3% year-over-year in constant currencies
  • Operating profit of $5.0 million, up 36% year-over-year
  • Cash flow from operations of $3.4 million
  • Earnings per share (EPS) of $0.26

Travelzoo, a global publisher of exclusive offers and experiences for members, today announced financial results for the first quarter ended March 31, 2019, with revenue of $30.8 million and operating profit of $5.0 million. In nominal terms, revenue decreased $59,000 year-over-year. In constant currencies, revenue increased by 3% year-over-year. Net income was $3.1 million, with EPS of $0.26, up from $0.20 in the prior-year period.

"Our attractive core business in North America and Europe generated an operating profit of $6.6 million, with a strong operating margin of 23%, of which $1.6 million was re-invested in our Asia Pacific business. We are committed to driving up shareholder value by implementing a successful strategy to achieve profitable growth in Asia Pacific faster," said Holger Bartel, Global CEO of Travelzoo.

Asia Pacific
Asia Pacific business segment revenue decreased 18% year-over-year to $1.7 million. In constant currencies, revenue decreased 13% year-over-year. The operating loss in Asia Pacific for the first quarter was $1.6 million, compared to an operating loss of $1.7 million in the prior-year period.

Europe
Europe business segment revenue increased 3% year-over-year to $10.6 million. In constant currencies, revenue increased 10% year-over-year. Operating profit for the first quarter was $2.1 million, or 20% of revenue, compared to an operating profit of $2.0 million, or 19% of revenue in the prior-year period.

North America
North America business segment revenue for the first quarter was $18.6 million, unchanged from the prior-year period. In constant currencies, revenue increased 1% year-over-year. Operating profit for the first quarter was $4.5 million, or 24% of revenue, compared to an operating profit of $3.4 million, or 18% of revenue in the prior-year period.

Members
As of March 31, 2019, Travelzoo had a worldwide unduplicated number of members of 29.9 million. In Asia Pacific, unduplicated number of members was 3.6 million as of March 31, 2019, consistent with December 31, 2018. In Europe, unduplicated number of members was 8.9 million as of March 31, 2019, up 2% from December 31, 2018. In North America, unduplicated number of members was 17.5 million as of March 31, 2019, consistent with December 31, 2018.

Income Taxes
Income tax expense was $1.8 million, compared to a $1.3 million income tax expense in the prior-year period.

Asset Management
During the first quarter of 2019, Travelzoo generated $3.4 million of cash from operating activities. Accounts receivable increased by $2.7 million over the prior-year period to $15.6 million. Accounts payable increased by $1.4 million over the prior-year period to $16.2 million. Capital expenditures were $131,000, up from $65,000 in the prior-year period. As of March 31, 2019, cash and cash equivalents were $19.9 million.

Conference Call
Travelzoo will host a conference call to discuss first quarter results today at 11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations 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 finger on the pulse of 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 give Travelzoo members access to irresistible 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.

 

Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

  Three months ended
  March 31,
  2019   2018
Revenues $ 30,825     $ 30,884  
Cost of revenues 2,946     3,385  
Gross profit 27,879     27,499  
Operating expenses:      
Sales and marketing 15,606     15,542  
Product development 1,703     2,511  
General and administrative 5,599     5,789  
Total operating expenses 22,908     23,842  
Income from operations 4,971     3,657  
Other income (loss), net (99 )   161  
Income before income taxes 4,872     3,818  
Income tax expense 1,752     1,316  
Net income $ 3,120     $ 2,502  
       
Basic income per share $ 0.26     $ 0.20  
Diluted income per share $ 0.26     $ 0.20  
       
Weighted average shares:      
Basic 11,914     12,462  
Diluted 12,224     12,462  


 

Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)

  March 31,
 2019
  December 31,
 2018
Assets      
Current assets:      
Cash and cash equivalents $ 19,946     $ 18,017  
Accounts receivable, net 15,579     12,646  
Income taxes receivable     389  
Deposits 88     167  
Prepaid expenses and other 1,607     1,947  
Total current assets 37,220     33,166  
Deposits and other 689     685  
Deferred tax assets 1,284     1,645  
Restricted cash 1,325     1,444  
Investment in WeekenGO 2,483     2,694  
Operating lease right-of-use assets 14,264      
Property and equipment, net 3,604     3,790  
Total assets $ 60,869     $ 43,424  
Liabilities and Stockholders’ Equity      
Current liabilities:      
Accounts payable $ 16,180     $ 17,129  
Accrued expenses and other 9,067     7,853  
Deferred revenue 1,199     1,339  
Operating lease liabilities 5,508      
Income tax payable 1,519     489  
Total current liabilities 33,473     26,810  
Long-term tax liabilities 425     418  
Long-term operating lease liabilities 11,251      
Other long-term liabilities 83     2,137  
Total liabilities 45,232     29,365  
Common stock 119     120  
Additional paid-in capital      
Accumulated other comprehensive loss (4,303 )   (4,214 )
Retained earnings 19,821     18,153  
Total stockholders’ equity 15,637     14,059  
Total liabilities and stockholders’ equity $ 60,869     $ 43,424  


 

Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

  Three months ended
  March 31,
  2019   2018
Cash flows from operating activities:      
Net income $ 3,120     $ 2,502  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 330     384  
Deferred income tax 341     (110 )
Stock-based compensation 163     173  
Loss on equity investment in WeekenGO 159      
Other 77     (83 )
Net foreign currency effects (21 )   (171 )
Changes in operating assets and liabilities:      
Accounts receivable (2,980 )   (997 )
Income tax receivable 388     428  
Prepaid expenses and other 425     (10 )
Accounts payable (1,100 )   (3,185 )
Accrued expenses and other 1,587     1,024  
Income tax payable 988     217  
Other liabilities (71 )   7  
Net cash provided by operating activities 3,406     179  
Cash flows from investing activities:      
Purchases of property and equipment (131 )   (65 )
Net cash used in investing activities (131 )   (65 )
Cash flows from financing activities:      
Repurchase of common stock, net (1,591 )    
Taxes paid for net share settlement of equity awards (26 )    
Net cash used in financing activities (1,617 )    
Effect of exchange rate on cash, cash equivalents and restricted cash 152     456  
Net increase in cash, cash equivalents and restricted cash 1,810     570  
Cash, cash equivalents and restricted cash at beginning of period 19,461     24,001  
Cash, cash equivalents and restricted cash at end of period $ 21,271     $ 24,571  
Supplemental disclosure of cash flow information:      
Cash paid for income taxes, net $ (60 )   $ 779  


 

Travelzoo
Segment Information
(Unaudited)
(In thousands)

Three months ended March 31, 2019 Asia Pacific   Europe   North
America
  Consolidated
Revenue from unaffiliated customers $ 1,635     $ 11,054     $ 18,136     $ 30,825  
Intersegment revenue 30     (481 )   451      
Total net revenues 1,665     10,573     18,587     30,825  
Operating income (loss) $ (1,635 )   $ 2,137     $ 4,469     $ 4,971  
               
Three months ended March 31, 2018 Asia Pacific   Europe   North
America
  Consolidated
Revenue from unaffiliated customers $ 2,042     $ 10,332     $ 18,510     $ 30,884  
Intersegment revenue (20 )   (52 )   72      
Total net revenues 2,022     10,280     18,582     30,884  
Operating income (loss) $ (1,740 )   $ 1,966     $ 3,431     $ 3,657  

Investor Relations:
Lijun Qi
ir@travelzoo.com

Travelzoo-Logo 11_30_2017 (1).jpg

 

Source: Travelzoo