- Consolidated revenue of
$14.1 million , up 13% year-over-year - Non-GAAP consolidated operating loss of
$2.1 million - Earnings per share (EPS) of (
$0.25 ) attributable toTravelzoo from continuing operations
The reported net loss attributable to
Non-GAAP operating loss was
“The surge of the Omicron variant and related increased safety measures during Q4 2021 affected our reported revenue and operating income,” said
Cash Position
As of
Reserve
Reported revenues are net of a reserve of
Jack’s
On
Licensing
In June of 2020,
Members and Subscribers
As of
Discontinued Operations
As announced in a press release on
Income Taxes
Income tax benefit was
Non-GAAP Financial Measures
Management calculates non-GAAP operating income when evaluating the financial performance of the business. Travelzoo’s calculation of non-GAAP operating income, also called “non-GAAP operating profit (loss)” in this press release and today’s earnings conference call, excludes the following items: impairment of intangibles and goodwill, amortization of intangibles, stock option expenses, and severance- related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in
Looking Ahead
We currently expect substantially higher revenue and a return to profitability in Q1 2022. We continue to see a trend of recovery of our revenue. However, there could be unexpected fluctuations in the short term. During the pandemic, we have been able to lower our fixed costs. We believe we can keep our fixed costs relatively low in the foreseeable future—while revenue is expected to grow.
Conference Call
About
Travelzoo® provides its 30 million members exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 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 | Twelve months ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues | $ | 14,139 | $ | 12,483 | $ | 63,190 | $ | 53,601 | ||||||||
Cost of revenues | 2,993 | 2,795 | 11,525 | 10,563 | ||||||||||||
Gross profit | 11,146 | 9,688 | 51,665 | 43,038 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 8,455 | 6,305 | 30,294 | 30,616 | ||||||||||||
Product development | 538 | 495 | 2,590 | 3,081 | ||||||||||||
General and administrative | 5,573 | 3,785 | 19,753 | 20,494 | ||||||||||||
Impairment of intangible asset and goodwill | — | — | — | 2,920 | ||||||||||||
Total operating expenses | 14,566 | 10,585 | 52,637 | 57,111 | ||||||||||||
Operating loss | (3,420 | ) | (897 | ) | (972 | ) | (14,073 | ) | ||||||||
Other income, net | 144 | 677 | 4,006 | 455 | ||||||||||||
Income (loss) from continuing operations before income taxes | (3,276 | ) | (220 | ) | 3,034 | (13,618 | ) | |||||||||
Income tax expense (benefit) | (248 | ) | (368 | ) | 1,863 | (2,438 | ) | |||||||||
Income (loss) from continuing operations | (3,028 | ) | 148 | 1,171 | (11,180 | ) | ||||||||||
Income (loss) from discontinued operations, net of tax | (8 | ) | 554 | (13 | ) | (3,390 | ) | |||||||||
Net income (loss) | (3,036 | ) | 702 | 1,158 | (14,570 | ) | ||||||||||
Net loss attributable to non-controlling interest | (8 | ) | (25 | ) | (9 | ) | (1,147 | ) | ||||||||
Net income (loss) attributable to |
$ | (3,028 | ) | $ | 727 | $ | 1,167 | $ | (13,423 | ) | ||||||
Net income (loss) attributable to Travelzoo—continuing operations | $ | (3,020 | ) | $ | 173 | $ | 1,180 | $ | (10,033 | ) | ||||||
Net income (loss) attributable to Travelzoo—discontinued operations | $ | (8 | ) | $ | 554 | $ | (13 | ) | $ | (3,390 | ) | |||||
Income (loss) per share—basic | ||||||||||||||||
Continuing operations | $ | (0.25 | ) | $ | 0.01 | $ | 0.10 | $ | (0.88 | ) | ||||||
Discontinued operations | $ | — | $ | 0.05 | $ | — | $ | (0.30 | ) | |||||||
Net income (loss) per share —basic | $ | (0.25 | ) | $ | 0.06 | $ | 0.10 | $ | (1.18 | ) | ||||||
Income (loss) per share—diluted | ||||||||||||||||
Continuing operations | $ | (0.25 | ) | $ | 0.01 | $ | 0.09 | $ | (0.88 | ) | ||||||
Discontinued operations | $ | — | $ | 0.05 | $ | — | $ | (0.30 | ) | |||||||
Net income (loss) per share—diluted | $ | (0.25 | ) | $ | 0.06 | $ | 0.09 | $ | (1.18 | ) | ||||||
Shares used in per share calculation from continuing operations—basic | 12,050 | 11,315 | 11,646 | 11,344 | ||||||||||||
Shares used in per share calculation from discontinued operations—basic | 12,050 | 11,315 | 11,646 | 11,344 | ||||||||||||
Shares used in per share calculation from continuing operations—diluted | 12,050 | 12,605 | 12,991 | 11,344 | ||||||||||||
Shares used in per share calculation from discontinued operations—diluted | 12,050 | 12,605 | 11,646 | 11,344 |
Condensed Consolidated Balance Sheets (Unaudited) (In thousands) |
|||||||
2021 |
2020 |
||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 43,815 | $ | 63,061 | |||
Accounts receivable, net | 15,305 | 4,519 | |||||
Prepaid income taxes | 3,239 | 931 | |||||
Deposits | 190 | 137 | |||||
Prepaid expenses and other | 2,851 | 1,166 | |||||
Assets from discontinued operations | 71 | 230 | |||||
Total current assets | 65,471 | 70,044 | |||||
Deposits and other | 6,784 | 745 | |||||
Deferred tax assets | 3,949 | 5,067 | |||||
Restricted cash | 1,142 | 1,178 | |||||
Operating lease right-of-use assets | 7,700 | 8,541 | |||||
Property and equipment, net | 659 | 1,347 | |||||
Intangible assets, net | 3,426 | 4,534 | |||||
10,944 | 10,944 | ||||||
Total assets | $ | 100,075 | $ | 102,400 | |||
Liabilities and Stockholders’ Equity (Deficit) | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,981 | $ | 6,996 | |||
Merchant payables | 68,678 | 57,104 | |||||
Accrued expenses and other | 9,734 | 8,649 | |||||
Deferred revenue | 1,733 | 2,688 | |||||
Operating lease liabilities | 3,180 | 3,587 | |||||
PPP notes payable (current portion) | — | 2,849 | |||||
Income tax payable | 185 | 326 | |||||
Liabilities from discontinued operations | 485 | 671 | |||||
Total current liabilities | 87,976 | 82,870 | |||||
PPP notes payables | — | 814 | |||||
Deferred tax liabilities | — | 357 | |||||
Long-term operating lease liabilities | 9,111 | 10,774 | |||||
Other long-term liabilities | 2,364 | 1,085 | |||||
Total liabilities | 99,451 | 95,900 | |||||
Non-controlling interest | 4,600 | 4,609 | |||||
Common stock | 126 | 114 | |||||
(5,488 | ) | — | |||||
Additional paid-in capital | 4,415 | 6,239 | |||||
Retained earnings (accumulated deficit) | 764 | (403 | ) | ||||
Accumulated other comprehensive loss | (3,793 | ) | (4,059 | ) | |||
Total stockholders’ equity (deficit) | (3,976 | ) | 1,891 | ||||
Total liabilities and stockholders’ equity (deficit) | $ | 100,075 | $ | 102,400 |
Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | (3,036 | ) | $ | 702 | $ | 1,158 | $ | (14,570 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||||
Depreciation and amortization | 412 | 508 | 1,820 | 2,314 | ||||||||||||
Stock-based compensation | 960 | 960 | 3,748 | 6,203 | ||||||||||||
Deferred income tax | (259 | ) | (1,666 | ) | 813 | (3,413 | ) | |||||||||
Impairment of intangible assets and goodwill | — | — | — | 2,920 | ||||||||||||
Gain on notes payable settlement | — | — | — | (1,500 | ) | |||||||||||
Gain on long-lived assets | — | (822 | ) | — | (385 | ) | ||||||||||
Loss on equity investment in WeGo | — | — | — | 474 | ||||||||||||
Gain on sale of equity investment in WeGo | — | (468 | ) | — | (468 | ) | ||||||||||
Gain on PPP notes payable forgiveness | — | — | (3,588 | ) | — | |||||||||||
Net foreign currency effects | (73 | ) | (143 | ) | (373 | ) | (685 | ) | ||||||||
Provision for (reversal of) loss on accounts receivable and other reserves | 1,667 | 1,452 | (58 | ) | 5,375 | |||||||||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||||||||||
Accounts receivable | (6,321 | ) | (50 | ) | (10,169 | ) | 6,196 | |||||||||
Prepaid income taxes | (366 | ) | (610 | ) | (2,373 | ) | 75 | |||||||||
Prepaid expenses and other | 1,381 | (443 | ) | (8,092 | ) | 1,183 | ||||||||||
Accounts payable | (7,765 | ) | (13,457 | ) | (2,740 | ) | (748 | ) | ||||||||
Merchant payables | (4,307 | ) | 23,604 | 12,179 | 44,136 | |||||||||||
Accrued expenses and other | 785 | (731 | ) | 333 | (2,112 | ) | ||||||||||
Income tax payable | 125 | (61 | ) | (138 | ) | (540 | ) | |||||||||
Other liabilities | (563 | ) | 660 | (597 | ) | 2,564 | ||||||||||
Net cash provided by (used in) operating activities | (17,360 | ) | 9,435 | (8,077 | ) | 47,019 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||
Acquisition of business, net of cash acquired | — | — | — | (679 | ) | |||||||||||
Other investment | — | — | — | (430 | ) | |||||||||||
Proceeds from investment | 133 | — | 133 | — | ||||||||||||
Proceeds from sale of equity investment in WeGo | — | 2,607 | — | 2,607 | ||||||||||||
Purchases of property and equipment | (5 | ) | (1 | ) | (29 | ) | (253 | ) | ||||||||
Proceeds from sale of long-lived assets | — | 822 | — | 822 | ||||||||||||
Net cash provided by investing activities | 128 | 3,428 | 104 | 2,067 | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Repurchase of common stock | (3,905 | ) | — | (5,488 | ) | (1,205 | ) | |||||||||
Payment of promissory notes | — | (1,700 | ) | (110 | ) | (9,500 | ) | |||||||||
Proceeds from notes payable | — | — | — | 3,663 | ||||||||||||
Exercise of stock options and taxes paid for net share settlement | (148 | ) | 60 | (5,572 | ) | 60 | ||||||||||
Net cash used in financing activities | (4,053 | ) | (1,640 | ) | (11,170 | ) | (6,982 | ) | ||||||||
Effect of exchange rate on cash, cash equivalents and restricted cash | (127 | ) | 1,178 | (253 | ) | 1,571 | ||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (21,412 | ) | 12,401 | (19,396 | ) | 43,675 | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 66,401 | 51,984 | 64,385 | 20,710 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 44,989 | $ | 64,385 | $ | 44,989 | $ | 64,385 |
Segment Information from Continuing Operations (Unaudited) (In thousands) |
|||||||||||||||||
Three months ended |
North America |
Jack's Flight Club |
Elimination | Consolidated | |||||||||||||
Revenue from unaffiliated customers | $ | 8,678 | $ | 4,658 | $ | 803 | $ | — | $ | 14,139 | |||||||
Intersegment revenue | (99 | ) | 99 | — | — | — | |||||||||||
Total net revenues | 8,579 | 4,757 | 803 | — | 14,139 | ||||||||||||
Operating income (loss) | $ | (2,240 | ) | $ | (1,197 | ) | $ | 17 | $ | — | $ | (3,420 | ) | ||||
Three months ended |
North America |
Jack's Flight Club |
Elimination | Consolidated | |||||||||||||
Revenue from unaffiliated customers | $ | 8,858 | $ | 2,703 | $ | 922 | $ | — | $ | 12,483 | |||||||
Intersegment revenue | 12 | (12 | ) | — | — | — | |||||||||||
Total net revenues | 8,870 | 2,691 | 922 | — | 12,483 | ||||||||||||
Operating income (loss) | $ | 1,318 | $ | (2,414 | ) | $ | 199 | $ | — | $ | (897 | ) |
Twelve months ended |
North America |
Jack's Flight Club |
Elimination | Consolidated | |||||||||||||||
Revenue from unaffiliated customers | $ | 41,683 | $ | 18,161 | $ | 3,346 | $ | — | $ | 63,190 | |||||||||
Intersegment revenue | 363 | (363 | ) | — | — | — | |||||||||||||
Total net revenues | 42,046 | 17,798 | 3,346 | — | 63,190 | ||||||||||||||
Operating income (loss) | $ | 414 | $ | (1,520 | ) | $ | 134 | $ | — | $ | (972 | ) | |||||||
Twelve months ended |
North America |
Jack's Flight Club |
Elimination | Consolidated | |||||||||||||||
Revenue from unaffiliated customers | $ | 34,663 | $ | 15,409 | $ | 3,537 | $ | (8 | ) | $ | 53,601 | ||||||||
Intersegment revenue | 249 | (257 | ) | — | 8 | — | |||||||||||||
Total net revenues | 34,912 | 15,152 | 3,537 | — | 53,601 | ||||||||||||||
Operating loss | $ | (5,056 | ) | $ | (6,195 | ) | $ | (2,814 | ) | $ | (8 | ) | $ | (14,073 | ) |
Reconciliation of GAAP to Non-GAAP Information (Unaudited) (In thousands, except per share amounts) |
||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
GAAP operating expense | $ | 14,566 | $ | 10,585 | $ | 52,637 | $ | 57,111 | ||||||||
Non-GAAP adjustments: | ||||||||||||||||
Impairment of intangible and goodwill (A) | — | — | — | 2,920 | ||||||||||||
Amortization of intangibles (B) | 275 | 333 | 1,108 | 1,277 | ||||||||||||
Stock option expenses (C) | 960 | 958 | 3,747 | 6,201 | ||||||||||||
Severance-related expenses (D) | 87 | 153 | 580 | 1,292 | ||||||||||||
Non-GAAP operating expense | 13,244 | 9,141 | 47,202 | 45,421 | ||||||||||||
GAAP operating loss | (3,420 | ) | (897 | ) | (972 | ) | (14,073 | ) | ||||||||
Non-GAAP adjustments (A through D) | 1,322 | 1,444 | 5,435 | 11,690 | ||||||||||||
Non-GAAP operating income (loss) | (2,098 | ) | 547 | 4,463 | (2,383 | ) | ||||||||||
Investor Relations:
ir@travelzoo.com

Source: Travelzoo