Travelzoo Inc. Form 8k - January 26, 2004

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):      January 26, 2004


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


Delaware
  000-50171
  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 January 26, 2004.


Item 12.      Results of Operations and Financial Condition.

                 Reference is made to the press release of Registrant issued on January 26, 2004, regarding fourth quarter, year-end 2003 financial results, 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:  January 26, 2004 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

Travelzoo Inc.
590 Madison Avenue, 21st Floor
New York, NY 10022
Phone (212)521-4200
Fax (212)521-4230

Media Contact:
Kelly Ford
(212)521-4216 direct
kford@travelzoo-inc.com

FOR IMMEDIATE RELEASE

Travelzoo Reports Strong Fourth Quarter,
Year-End 2003 Financial Results

NEW YORK, January 26, 2004 — Travelzoo Inc. (NASDAQ: TZOO), the Internet’s largest publisher of sales and specials available directly from hundreds of travel companies, today reported record revenues for the fourth quarter and year ended December 31, 2003.

      2003 Financial Highlights:

  • Revenues increased by 83% compared to 2002
  • Net profit increased by 140% compared to 2002
  • Pre-tax profit margin of 21%

        Travelzoo Inc. reported revenues of approximately $5.2 million for the fourth quarter ended December 31, 2003, an increase of 66% over revenues of approximately $3.1 million for the same period in 2002, and a quarterly sequential increase of 9% over revenues of approximately $4.8 million for the quarter ended September 30, 2003.

        The company reported net income of $452,510 for the fourth quarter of 2003 compared to a net income of $325,867 for the same period in 2002. Net income per share for the fourth quarter of 2003 was $0.02 per basic and diluted share.

        Income before income taxes for the fourth quarter ended December 31, 2003 was approximately $1.0 million or 20% of revenues, compared to $493,805, or 16% of revenues, for the same period in 2002.

        Revenues for 2003 were approximately $18.0 million compared to approximately $9.9 million for 2002, an 83% increase.

        Net income for 2003 was approximately $2.1 million, a 140% increase over net income of $853,071 for 2002. Diluted net income per share was $0.10 in 2003 compared to $0.04 in 2002.

        Income before income taxes for 2003 was approximately $3.8 million, or 21% of revenues, compared to approximately $1.4 million, or 14% of revenues, for 2002.

        In the fourth quarter of 2003, Travelzoo incurred non-tax deductible expenses of $328,000 related to a secondary public offering and the company’s initial listing with the NASDAQ Stock Market.

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), the Top 20® and Weekend.com® e-mail newsletters, and Newsflash™. With over 6 million subscribers, Travelzoo lists sales and specials from more than 200 advertisers, including Alamo Rent A Car, American Airlines, Carnival Cruise Lines, Europe Express, Fairmont Hotels & Resorts, Hertz, Ian Schrager Hotels, JetBlue Airways, Kimpton Hotels, Liberty Travel, Lufthansa, Mark Travel, Marriott, Omni Hotels, Orbitz, Pleasant Holidays, Royal Caribbean Cruises, Spirit Airlines, Starwood Hotels & Resorts Worldwide, SunTrips, 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, Top 20, and Weekend.com are registered trademarks 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
December 31,
  Year ended
December 31,
 
  2003   2002   2003   2002  
       
Revenues   $  5,201   $  3,132   $17,991   $  9,848  
Cost of Revenues  141   89   399   351  




          Gross Profit  5,060   3,043   17,592   9,497  
Operating Expenses: 
Sales and Marketing  2,821   1,904   9,564   5,727  
General and Administrative  1,214   647   4,289   2,294  
Merger Expenses        54  




     Total Operating Expenses  4,035   2,551   13,853   8,075  




     Income from Operations  1,025   492   3,739   1,422  
Interest Income  5   2   13   4  




Income before Income Taxes  1,030   494   3,752   1,426  




Income Taxes  577   168   1,702   573  




          Net Income  $     453   $     326   $  2,050   $     853  




       
Basic Net Income per Share  $    0.02   $    0.02   $    0.11   $    0.04  
Diluted Net Income per Share  0.02   0.02   0.10   0.04  
       
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  20,584   20,478   20,527   19,896  

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

  December 31,
2003
  December 31,
2002
 
           
Cash   $ 3,522   $ 1,258  
Accounts Receivable, net  2,370   1,312  
Deposits  2   22  
Other Current Assets  132   115  
Deferred Income Taxes  225   81  


     Total Current Assets  6,251   2,788  


Deposits  137   65  
Deferred Income Taxes  27   32  
Property and Equipment, net  164   142  
Intangible Assets, net  147   213  


          Total Assets  $ 6,726   $ 3,240  


Accounts Payable  224   442  
Accrued Expenses  1,328   548  
Deferred Revenue  22   19  
Income Tax Payable  1,311   440  


          Total Liabilities  2,885   1,449  


Common Stock  194   194  
Additional paid-in capital  (116 ) (116 )
Retained Earnings  3,763   1,713  


     Total Stockholders' Equity  3,841   1,791  


          Total Liabilities and 
           Stockholders' Equity  $ 6,726   $ 3,240