- 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
"Our attractive core business in
Members
As of March 31, 2019,
Income Taxes
Income tax expense was
Asset Management
During the first quarter of 2019,
Conference Call
- download the management presentation (PDF format) to be discussed in the conference call;
- access the webcast.
About
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
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
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 |
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 |
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 |
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
Source: Travelzoo