- Revenue of
$28.2 million ; up 3% year-over-year in constant currencies - Operating profit of
$2.4 million , up 125% year-over-year - Earnings per share (EPS) of
$0.11
"Our attractive core business in
Core Business versus Development Business
Our businesses in
Core Business | Development Business | ||
Q2 2019 Operating profit / loss | +$4.2 million | -$1.8 million | |
Q2 2019 Operating margin | 16% | N/A | |
Contribution to Q2 2019 EPS | +$0.25 | -$0.14 | |
Contribution to six months EPS | +$0.66 | -$0.30 |
For the
Members
As of June 30, 2019,
Income Taxes
Income tax expense was
Asset Management
During the second quarter of 2019,
Share Repurchase Program
During the second quarter of 2019, the company repurchased 250,000 shares of its common stock. In
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
Travelzoo | |||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
Revenues | $ | 28,184 | $ | 28,075 | $ | 59,009 | $ | 58,959 | |||||||||||||||||||||||
Cost of revenues | 2,757 | 3,016 | 5,703 | 6,401 | |||||||||||||||||||||||||||
Gross profit | 25,427 | 25,059 | 53,306 | 52,558 | |||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||
Sales and marketing | 15,357 | 15,628 | 30,963 | 31,170 | |||||||||||||||||||||||||||
Product development | 1,799 | 2,386 | 3,502 | 4,897 | |||||||||||||||||||||||||||
General and administrative | 5,847 | 5,967 | 11,446 | 11,756 | |||||||||||||||||||||||||||
Total operating expenses | 23,003 | 23,981 | 45,911 | 47,823 | |||||||||||||||||||||||||||
Income from operations | 2,424 | 1,078 | 7,395 | 4,735 | |||||||||||||||||||||||||||
Other income (loss), net | (143 | ) | 30 | (242 | ) | 191 | |||||||||||||||||||||||||
Income before income taxes | 2,281 | 1,108 | 7,153 | 4,926 | |||||||||||||||||||||||||||
Income tax expense | 953 | 631 | 2,705 | 1,947 | |||||||||||||||||||||||||||
Net income | $ | 1,328 | $ | 477 | $ | 4,448 | $ | 2,979 | |||||||||||||||||||||||
Basic income per share | $ | 0.11 | $ | 0.04 | $ | 0.37 | $ | 0.24 | |||||||||||||||||||||||
Diluted income per share | $ | 0.11 | $ | 0.04 | $ | 0.36 | $ | 0.24 | |||||||||||||||||||||||
Weighted average shares: | |||||||||||||||||||||||||||||||
Basic | 12,003 | 12,462 | 11,959 | 12,462 | |||||||||||||||||||||||||||
Diluted | 12,278 | 12,780 | 12,251 | 12,622 |
Travelzoo | |||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
(Unaudited) | |||||||||||
(In thousands) | |||||||||||
June 30, 2019 |
December 31, 2018 |
||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 14,113 | $ | 18,017 | |||||||
Accounts receivable, net | 15,323 | 12,646 | |||||||||
Income taxes receivable | 817 | 389 | |||||||||
Deposits | 84 | 167 | |||||||||
Prepaid expenses and other | 1,739 | 1,947 | |||||||||
Total current assets | 32,076 | 33,166 | |||||||||
Deposits and other | 744 | 685 | |||||||||
Deferred tax assets | 1,359 | 1,645 | |||||||||
Restricted cash | 1,331 | 1,444 | |||||||||
Investment in WeekenGO | 2,958 | 2,694 | |||||||||
Operating lease right-of-use assets | 14,110 | — | |||||||||
Property and equipment, net | 3,346 | 3,790 | |||||||||
Total assets | $ | 55,924 | $ | 43,424 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 14,419 | $ | 17,129 | |||||||
Accrued expenses and other | 8,720 | 7,853 | |||||||||
Deferred revenue | 1,165 | 1,339 | |||||||||
Operating lease liabilities | 5,693 | — | |||||||||
Income tax payable | 395 | 489 | |||||||||
Total current liabilities | 30,392 | 26,810 | |||||||||
Long-term tax liabilities | 434 | 418 | |||||||||
Long-term operating lease liabilities | 10,788 | — | |||||||||
Other long-term liabilities | 83 | 2,137 | |||||||||
Total liabilities | 41,697 | 29,365 | |||||||||
Common stock | 119 | 120 | |||||||||
Additional paid-in capital | — | — | |||||||||
Accumulated other comprehensive loss | (4,229 | ) | (4,214 | ) | |||||||
Retained earnings | 18,337 | 18,153 | |||||||||
Total stockholders’ equity | 14,227 | 14,059 | |||||||||
Total liabilities and stockholders’ equity | $ | 55,924 | $ | 43,424 |
Travelzoo | |||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||
Three months | Six months | ||||||||||||||||||||||||||||||
ended | ended | ||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||
Net income | $ | 1,328 | $ | 477 | $ | 4,448 | $ | 2,979 | |||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||||||||||||||||
Depreciation and amortization | 333 | 443 | 663 | 827 | |||||||||||||||||||||||||||
Stock-based compensation | 319 | 349 | 482 | 522 | |||||||||||||||||||||||||||
Deferred income tax | 4 | (39 | ) | 345 | (149 | ) | |||||||||||||||||||||||||
Loss on equity investment in WeekenGO | 238 | — | 397 | — | |||||||||||||||||||||||||||
Net foreign currency effects | (5 | ) | 35 | (26 | ) | (136 | ) | ||||||||||||||||||||||||
Other | (51 | ) | 40 | 26 | (43 | ) | |||||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||||||
Accounts receivable | 201 | 100 | (2,779 | ) | (897 | ) | |||||||||||||||||||||||||
Income tax receivable | (816 | ) | (705 | ) | (428 | ) | (277 | ) | |||||||||||||||||||||||
Prepaid expenses and other | (186 | ) | 428 | 239 | 418 | ||||||||||||||||||||||||||
Accounts payable | (1,688 | ) | (15 | ) | (2,788 | ) | (3,200 | ) | |||||||||||||||||||||||
Accrued expenses and other | (296 | ) | (299 | ) | 1,291 | 725 | |||||||||||||||||||||||||
Income tax payable | (1,084 | ) | (48 | ) | (96 | ) | 169 | ||||||||||||||||||||||||
Other liabilities | (103 | ) | (165 | ) | (174 | ) | (158 | ) | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | (1,806 | ) | 601 | 1,600 | 780 | ||||||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||
Investment in WeekenGO | (673 | ) | (3,083 | ) | (673 | ) | (3,083 | ) | |||||||||||||||||||||||
Purchases of property and equipment | (70 | ) | (442 | ) | (201 | ) | (507 | ) | |||||||||||||||||||||||
Net cash used in investing activities | (743 | ) | (3,525 | ) | (874 | ) | (3,590 | ) | |||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||
Repurchase of common stock | (4,869 | ) | — | (6,460 | ) | — | |||||||||||||||||||||||||
Exercise of stock options and taxes paid for net share settlement of equity awards | 1,738 | — | 1,712 | — | |||||||||||||||||||||||||||
Net cash used in financing activities | (3,131 | ) | — | (4,748 | ) | — | |||||||||||||||||||||||||
Effect of exchange rate on cash, cash equivalents and restricted cash | (147 | ) | (780 | ) | 5 | (324 | ) | ||||||||||||||||||||||||
Net decrease in cash, cash equivalents and restricted cash | (5,827 | ) | (3,704 | ) | (4,017 | ) | (3,134 | ) | |||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 21,271 | 24,571 | 19,461 | 24,001 | |||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 15,444 | $ | 20,867 | $ | 15,444 | $ | 20,867 | |||||||||||||||||||||||
Supplemental disclosure of cash flow information: | |||||||||||||||||||||||||||||||
Cash paid for income taxes, net | $ | 2,919 | $ | 1,417 | $ | 2,859 | $ | 2,196 |
Travelzoo | |||||||||||||||||||||||
Segment Information | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Three months ended June 30, 2019 | Asia Pacific |
Europe | North America |
Consolidated | |||||||||||||||||||
Revenue from unaffiliated customers | $ | 1,557 | $ | 9,133 | $ | 17,494 | $ | 28,184 | |||||||||||||||
Intersegment revenue | 23 | (451 | ) | 428 | — | ||||||||||||||||||
Total net revenues | 1,580 | 8,682 | 17,922 | 28,184 | |||||||||||||||||||
Operating income (loss) | $ | (1,783 | ) | $ | 584 | $ | 3,623 | $ | 2,424 | ||||||||||||||
Three months ended June 30, 2018 | Asia Pacific |
Europe | North America |
Consolidated | |||||||||||||||||||
Revenue from unaffiliated customers | $ | 2,073 | $ | 8,527 | $ | 17,475 | $ | 28,075 | |||||||||||||||
Intersegment revenue | (9 | ) | (27 | ) | 36 | — | |||||||||||||||||
Total net revenues | 2,064 | 8,500 | 17,511 | 28,075 | |||||||||||||||||||
Operating income (loss) | $ | (1,472 | ) | $ | 441 | $ | 2,109 | $ | 1,078 |
Six months ended June 30, 2019 | Asia Pacific |
Europe | North America |
Consolidated | |||||||||||||||||||
Revenue from unaffiliated customers | $ | 3,192 | $ | 20,187 | $ | 35,630 | $ | 59,009 | |||||||||||||||
Intersegment revenue | 53 | (932 | ) | 879 | — | ||||||||||||||||||
Total net revenues | 3,245 | 19,255 | 36,509 | 59,009 | |||||||||||||||||||
Operating income (loss) | $ | (3,418 | ) | $ | 2,721 | $ | 8,092 | $ | 7,395 | ||||||||||||||
Six months ended June 30, 2018 | Asia Pacific |
Europe | North America |
Consolidated | |||||||||||||||||||
Revenue from unaffiliated customers | $ | 4,115 | $ | 18,859 | $ | 35,985 | $ | 58,959 | |||||||||||||||
Intersegment revenue | (29 | ) | (79 | ) | 108 | — | |||||||||||||||||
Total net revenues | 4,086 | 18,780 | 36,093 | 58,959 | |||||||||||||||||||
Operating income (loss) | $ | (3,212 | ) | $ | 2,407 | $ | 5,540 | $ | 4,735 | ||||||||||||||
Investor Relations:
Lijun Qi
ir@travelzoo.com
Source: Travelzoo