Travelzoo Inc. Form 8k - July 11, 2003

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549


FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 or 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event
reported):      July 11, 2003


Travelzoo Inc.
(Exact Name of Registrant as Specified in Charter)


Delaware
  333-55026
  36-4415727
(State or Other
Jurisdiction of
Incorporation)


  (Commission
File Number)


  (I.R.S Employer
Identification No.)



590 Madison Avenue, 21st Floor
New York, New York

  10022
 
(Address of Principal Executive Offices)   (Zip Code)  


Registrant's telephone number, including area code:

(212) 521-4200

Item 7.      Financial Statements and Exhibits.

 

(c)

Exhibits


 

99.1

Press Release, dated July 11, 2003.


Item 9.      Regulation FD Disclosure

                 This information, required by “Item 12. Results of Operations and Financial Condition,” is being furnished under “Item 9. Regulation FD Disclosure” in accordance with SEC Release No. 33-8216.

                 Reference is made to the press release of Registrant issued on July 11, 2003, regarding earnings for the second quarter ended June 30, 2003, which is incorporated herein by reference. A copy of the press release is attached to this Form 8-K as Exhibit 99.1.

SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 

TRAVELZOO INC.
(Registrant)


Date:  July 16, 2003 By:  /s/ Ralph Bartel
    Ralph Bartel
Chairman of the Board and Chief Executive
Officer
Travelzoo Inc. Exhibit 99.1 to Form 8k

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

Travelzoo Reports Strong Q2 2003 Results:
Record Revenues and Record Profit

NEW YORK, July 11, 2003 — Travelzoo Inc. (OTCBB:TVZO), the Internet’s largest publisher of sales and specials available directly from hundreds of travel companies, today reported record revenues and record profit for the second quarter ended June 30, 2003.

         Second Quarter 2003 Financial Highlights:

  • Revenues increased by 94% from same period last year
  • Net profit increased by 309% from same period last year
  • Pre-tax profit margin now 24% of revenues

        Travelzoo Inc. reported revenues of approximately $4.3 million for the second quarter ended June 30, 2003, an increase of 94% over revenues of approximately $2.2 million for the same period last year, and a quarterly sequential increase of 16% over revenues of approximately $3.7 million for the quarter ended March 31, 2003.

        The company reported a record net income of $596,397 for the second quarter of 2003 compared to a net income of $145,880 for the same period in 2002. Net income per share for the second quarter of 2003 was $0.03 per basic and diluted share.

        Income before income taxes for the second quarter ended June 30, 2003 was $1,015,772 or 24% of revenues, compared to $246,848, or 11% of revenues, for the same period last year.

        For the first six months of 2003, revenues were approximately $8.0 million compared to approximately $4.2 million for the same period last year, a 92% increase. Net income per share for the first half of 2003 was $0.05 compared to $0.01 in the first half of 2002.

About Travelzoo

Travelzoo Inc. is the Internet’s largest publisher of sales and specials available directly from hundreds of travel companies. Travelzoo’s media products include the Travelzoo® website (www.travelzoo.com) and the Top 20® and Weekend.com® e-mail newsletters. Travelzoo lists sales and specials from more than 200 advertisers, including Air New Zealand, Alamo Rent A Car, American Airlines, American Express Travel, Avis Rent A Car, Carnival Cruise Lines, Fairmont Hotels & Resorts, Gate 1 Travel, Ian Schrager Hotels, InterContinental Hotels, JetBlue Airways, Kimpton Hotels, Liberty Travel, Lufthansa, Marriott, Omni Hotels, Pleasant Holidays, Royal Caribbean Cruises, Spirit Airlines, Starwood Hotels & Resorts, The Venetian, Travelocity, United Airlines, US Airways, Virgin Atlantic Airways and Wyndham Hotels & Resorts.

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 is a registered trademark 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
June 30,
  Six months ended
June 30,
 
    2003   2002   2003   2002  
   
 
 
 
 
Revenues   $  4,291   $  2,211   $  8,005   $  4,177  
 
Cost of Revenues  81   86   164   172  
   
 
 
 
 
          Gross Profit  4,210   2,125   7,841   4,005  
Operating Expenses: 
Sales and Marketing  2,295   1,316   4,218   2,312  
General and Administrative  903   563   1,960   1,125  
Merger Expenses  --   --   --   54  
   
 
 
 
 
     Total Operating Expenses  3,198   1,879   6,178   3,491  
   
 
 
 
 
     Income from Operations  1,012   246   1,663   514  
Interest Income  3   1   5   1  
   
 
 
 
 
Income before Income Taxes  1,015   247   1,668   515  
   
 
 
 
 
Income Taxes  419   101   687   233  
   
 
 
 
 
          Net Income  $     596   $     146   $     981   $     282  
   
 
 
 
 
Basic Net Income per Share  $    0.03   $    0.01   $    0.05   $    0.01  
Diluted Net Income per Share  0.03   0.01   0.05   0.01  
 
Shares Used in Computing 
   Basic Net Income per Share  19,425   19,425   19,425   19,425  
Shares Used in Computing 
   Diluted Net Income per 
   Share  20,499   19,425   20,502   19,425  

Travelzoo Inc.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)

    June 30,
2003
  Dec. 31,
2002
 
  
 
 
Cash   $ 2,343   $ 1,258  
Accounts Receivable, net  1,697   1,312  
Deposits  108   22  
Other Current Assets  140   115  
Deferred Income Taxes  81   81  
  
 
 
     Total Current Assets  4,369   2,788  
  
 
 
Deposits  --   65  
Deferred Income Taxes  32   32  
Property and Equipment, net  105   142  
Intangible Assets, net  180   213  
  
 
 
          Total Assets  $ 4,686   $ 3,240  
  
 
 
Accounts Payable  552   442  
Accrued Expenses  836   548  
Deferred Revenue  25   19  
Income Tax Payable  501   440  
  
 
 
          Total Liabilities  1,914   1,449  
  
 
 
Common Stock  194   194  
Additional paid-in capital  (116 ) (116 )
Retained Earnings  2,694   1,713  
  
 
 
     Total Stockholders' Equity  2,772   1,791  
  
 
 
          Total Liabilities and 
              Stockholders' Equity  $ 4,686   $ 3,240