Research News and Market Data on TZOO
04/27/2023
NEW YORK, April 27, 2023 /PRNewswire/ — Travelzoo® (NASDAQ: TZOO):
- Revenue of $21.6 million, up 17% year-over-year
- In constant currencies, revenue was $22.1 million, up 19% year-over-year
- Non-GAAP consolidated operating profit of $5.5 million
- Earnings per share (EPS) of $0.23
Travelzoo, a global Internet media company that provides exclusive offers and experiences for members, today announced financial results for the first quarter ended March 31, 2023. Consolidated revenue was $21.6 million, up 17% from $18.5 million year-over-year. In constant currencies, revenue was $22.1 million. Travelzoo’s reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members.
The reported net income attributable to Travelzoo from continuing operations was $3.7 million for Q1 2023. At the consolidated level, including minority interests, the reported net income from continuing operations was $3.7 million. EPS from continuing operations was $0.23, compared to $0.19 in the prior-year period.
Non-GAAP operating profit was $5.5 million. The calculation of non-GAAP operating profit excludes amortization of intangibles ($0.4 million), stock option expenses ($0.4 million) and severance-related expenses ($39,000). See section “Non-GAAP Financial Measures” below.
“We will continue our strategy of leveraging Travelzoo’s global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more exclusive offers for Travelzoo members,” said Holger Bartel, Travelzoo’s Global CEO. “With more than 30 million members, 8 million mobile app users, and 4 million social media followers, Travelzoo is loved by travel enthusiasts who are affluent, active, and open to new experiences.”
Cash Position
As of March 31, 2023, consolidated cash, cash equivalents and restricted cash were $19.8 million. Net cash provided by operations was $535,000.
Reserve
Reported revenues include a reserve of $785,000 related to commissions to be earned from vouchers sold. The reserve is initially booked as contra revenue.
Travelzoo North America
North America business segment revenue increased 26% year-over-year to $14.8 million. Operating profit for Q1 2023 was $4.5 million, or 31% of revenue, compared to an operating profit of $1.7 million in the prior-year period.
Travelzoo Europe
Europe business segment revenue remained consistent year-over-year at $5.9 million. At constant currencies, Europe business segment revenue increased 6% year-over-year. Operating profit for Q1 2023 was $457,000, or 8% of revenue, compared to an operating profit of $178,000 in the prior-year period.
Jack’s Flight Club
Jack’s Flight Club business segment revenue increased 15% year-over-year to $948,000. Jack’s Flight Club is a membership subscription service in which Travelzoo has a 60% ownership interest. The number of premium subscribers increased 27% year-over-year. Revenue from increases in subscribers is reported with a lag because we recognize revenue from subscriptions monthly pro rata over the subscription period (quarterly, semi-annually, annually). Non-GAAP operating profit for Q1 2023 was $123,000, compared to a non-GAAP operating profit of $249,000 in the prior-year period. After consolidation with Travelzoo, Jack’s Flight Club’s net income was $20,000, with $12,000 attributable to Travelzoo as a result of recording $168,000 of amortization of intangible assets related to the acquisition.
New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $8,000. Operating loss for Q1 2023 was $217,000.
In June 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Japan for the exclusive use of Travelzoo’s brand, business model, and members in Japan. In August of 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Australia for the exclusive use of Travelzoo’s brand, business models, and members in Australia, New Zealand, and Singapore. Under these arrangements, Travelzoo’s existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue is booked with a lag of one quarter. Travelzoo recorded $8,000 in licensing revenue from the licensee in Australia, New Zealand, and Singapore in Q1 2023. Licensing revenue is expected to increase going forward.
Members and Subscribers
As of March 31, 2023, we had 30.5 million members worldwide. In North America, the unduplicated number of Travelzoo members was 16.3 million as of March 31, 2023, down 2% from March 31, 2022. In Europe, the unduplicated number of Travelzoo members was 9.1 million as of March 31, 2023, consistent with March 31, 2022. Jack’s Flight Club had 2.0 million subscribers as of March 31, 2023, up 14% from March 31, 2022.
Discontinued Operations
As announced in a press release on March 10, 2020, Travelzoo decided to exit its Asia Pacific business and operate it as a licensing business going forward. Consequently, the Asia Pacific business has been classified as discontinued operations since March 31, 2020. Prior periods have been reclassified to conform with the current presentation. Certain reclassifications have been made for current and prior periods between the continued operations and the discontinued operations in accordance with U.S. GAAP.
Income Taxes
A provision of $1.4 million for income taxes was recorded for Q1 2023, compared to an income tax expense of $968,000 in the prior-year period. The provision for Q1 2023 does not reflect the expected utilization of NOLs by Travelzoo in the U.S.
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” in this press release and today’s earnings conference call, excludes the following items: 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 the United States of America (“GAAP”). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.
Looking Ahead
For Q2 2023, we currently expect growth in revenue and growth in operating profit to continue year-over-year. 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.
Conference Call
Travelzoo will host a conference call to discuss first quarter 2023 results today at 11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to
- download the management presentation (PDF format) to be discussed in the conference call
- access the webcast.
About Travelzoo
Travelzoo® provides its 30 million members with 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 Travelzoo members access to irresistible deals.
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 and Jack’s Flight Club are registered trademarks of Travelzoo.
| Travelzoo Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) | |||
| Three months ended | |||
| March 31 | |||
| 2023 | 2022 | ||
| Revenues | $ 21,601 | $ 18,453 | |
| Cost of revenues | 2,691 | 2,832 | |
| Gross profit | 18,910 | 15,621 | |
| Operating expenses: | |||
| Sales and marketing | 9,296 | 8,581 | |
| Product development | 490 | 453 | |
| General and administrative | 4,413 | 4,668 | |
| Total operating expenses | 14,199 | 13,702 | |
| Operating income | 4,711 | 1,919 | |
| Other income, net | 350 | 1,423 | |
| Income from continuing operations before income taxes | 5,061 | 3,342 | |
| Income tax expense | 1,378 | 968 | |
| Income from continuing operations | 3,683 | 2,374 | |
| Loss from discontinued operations, net of tax | (2) | (11) | |
| Net income | 3,681 | 2,363 | |
| Net income attributable to non-controlling interest | 8 | 4 | |
| Net income attributable to Travelzoo | $ 3,673 | $ 2,359 | |
| Net income attributable to Travelzoo—continuing operations | $ 3,675 | $ 2,370 | |
| Net loss attributable to Travelzoo—discontinued operations | $ (2) | $ (11) | |
| Income per share—basic | |||
| Continuing operations | $ 0.23 | $ 0.20 | |
| Discontinued operations | $ — | $ — | |
| Net income per share—basic | $ 0.23 | $ 0.20 | |
| Income per share—diluted | |||
| Continuing operations | $ 0.23 | $ 0.19 | |
| Discontinued operations | $ — | $ — | |
| Net income per share—diluted | $ 0.23 | $ 0.19 | |
| Shares used in per share calculation from continuing operations—basic | 15,697 | 12,056 | |
| Shares used in per share calculation from discontinued operations—basic | 15,697 | 12,056 | |
| Shares used in per share calculation from continuing operations—diluted | 15,779 | 12,544 | |
| Shares used in per share calculation from discontinued operations—diluted | 15,697 | 12,056 | |
| Travelzoo Condensed Consolidated Balance Sheets (Unaudited) (In thousands) | |||
| March 31, 2023 | December 31, 2022 | ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $ 19,138 | $ 18,693 | |
| Accounts receivable, net | 13,672 | 13,820 | |
| Prepaid income taxes | 1,401 | 1,778 | |
| Prepaid expenses and other | 1,764 | 1,289 | |
| Assets from discontinued operations | 10 | 11 | |
| Total current assets | 35,985 | 35,591 | |
| Deposits and other | 4,618 | 5,094 | |
| Deferred tax assets | 3,248 | 3,222 | |
| Restricted cash | 679 | 675 | |
| Operating lease right-of-use assets | 6,852 | 7,440 | |
| Property and equipment, net | 692 | 657 | |
| Intangible assets, net | 3,249 | 3,651 | |
| Goodwill | 10,944 | 10,944 | |
| Total assets | $ 66,267 | $ 67,274 | |
| Liabilities and Stockholders’ Equity | |||
| Current liabilities: | |||
| Accounts payable | $ 3,143 | $ 4,271 | |
| Merchant payables | 27,976 | 32,574 | |
| Accrued expenses and other | 4,611 | 5,049 | |
| Deferred revenue | 3,124 | 2,216 | |
| Operating lease liabilities | 2,682 | 2,972 | |
| Liabilities from discontinued operations | 453 | 452 | |
| Total current liabilities | 41,989 | 47,534 | |
| Long-term operating lease liabilities | 7,926 | 8,326 | |
| Other long-term liabilities | 3,530 | 2,563 | |
| Total liabilities | 53,445 | 58,423 | |
| Non-controlling interest | 4,603 | 4,595 | |
| Common stock | 165 | 165 | |
| Treasury stock (at cost) | (7,316) | (7,130) | |
| Tax indemnification | (9,537) | (9,537) | |
| Note receivable from shareholder | (4,753) | (4,753) | |
| Additional paid-in capital | 23,670 | 23,274 | |
| Retained earnings | 10,815 | 7,142 | |
| Accumulated other comprehensive loss | (4,825) | (4,905) | |
| Total stockholders’ equity | 8,219 | 4,256 | |
| Total liabilities and stockholders’ equity | $ 66,267 | $ 67,274 | |
| Travelzoo Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | |||
| Three months ended | |||
| March 31 | |||
| 2023 | 2022 | ||
| Cash flows from operating activities: | |||
| Net income | $ 3,681 | $ 2,363 | |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
| Depreciation and amortization | 478 | 574 | |
| Stock-based compensation | 396 | 542 | |
| Deferred income tax | (68) | 97 | |
| Loss on long-lived assets | — | 38 | |
| Gain on sale of equity investment in WeGo | — | (196) | |
| Net foreign currency effects | 3 | (13) | |
| Reversal of reserves on accounts receivable and other reserves | (569) | (1,408) | |
| Changes in operating assets and liabilities: | |||
| Accounts receivable | 372 | (3,163) | |
| Prepaid income taxes | 407 | 759 | |
| Prepaid expenses, deposits and other | 17 | 565 | |
| Accounts payable | (1,321) | 103 | |
| Merchant payables | (4,591) | (7,961) | |
| Accrued expenses and other | 911 | 917 | |
| Income tax payable | — | (157) | |
| Other liabilities | 819 | 176 | |
| Net cash provided by (used in) operating activities | 535 | (6,764) | |
| Cash flows from investing activities: | |||
| Proceeds from repayment of note receivable | 39 | — | |
| Purchases of intangible assets | — | (1,049) | |
| Proceeds from sale of equity investment in WeGo | — | 196 | |
| Purchases of property and equipment | (111) | (89) | |
| Net cash used in investing activities | (72) | (942) | |
| Cash flows from financing activities: | |||
| Repurchase of common stock | (186) | — | |
| Net cash used in financing activities | (186) | — | |
| Effect of exchange rate on cash, cash equivalents and restricted cash | 171 | (524) | |
| Net increase (decrease) in cash, cash equivalents and restricted cash | 448 | (8,230) | |
| Cash, cash equivalents and restricted cash at beginning of period | 19,378 | 44,989 | |
| Cash, cash equivalents and restricted cash at end of period | $ 19,826 | $ 36,759 | |
| Travelzoo Segment Information from Continuing Operations (Unaudited) (In thousands) | |||||||||||
| Three months ended March 31, 2023 | Travelzoo North America | Travelzoo Europe | Jack’s Flight Club | New Initiatives | Elimination | Consolidated | |||||
| Revenue from unaffiliated customers | $ 14,567 | $ 6,078 | $ 948 | $ 8 | $ — | $ 21,601 | |||||
| Intersegment revenue | 191 | (191) | — | — | — | — | |||||
| Total net revenues | 14,758 | 5,887 | 948 | 8 | — | 21,601 | |||||
| Operating income (loss) | $ 4,516 | $ 457 | $ (45) | $ (217) | $ — | $ 4,711 | |||||
| Three months ended March 31, 2022 | Travelzoo North America | Travelzoo Europe | Jack’s Flight Club | New Initiatives | Elimination | Consolidated | |||||
| Revenue from unaffiliated customers | $ 11,498 | $ 6,127 | $ 823 | $ 5 | $ — | $ 18,453 | |||||
| Intersegment revenue | 193 | (193) | — | — | — | — | |||||
| Total net revenues | 11,691 | 5,934 | 823 | 5 | — | 18,453 | |||||
| Operating income (loss) | $ 1,820 | $ 178 | $ 23 | $ (102) | $ — | $ 1,919 | |||||
| Travelzoo Reconciliation of GAAP to Non-GAAP Information (Unaudited) (In thousands, except per share amounts) | |||
| Three months ended | |||
| March 31 | |||
| 2023 | 2022 | ||
| GAAP operating expense | $ 14,199 | $ 13,702 | |
| Non-GAAP adjustments: | |||
| Amortization of intangibles (A) | 398 | 226 | |
| Stock option expenses (B) | 396 | 541 | |
| Severance-related expenses (C) | 39 | 13 | |
| Non-GAAP operating expense | 13,366 | 12,922 | |
| GAAP operating income | 4,711 | 1,919 | |
| Non-GAAP adjustments (A through C) | 833 | 780 | |
| Non-GAAP operating income | 5,544 | 2,699 | |
Investor Relations:
ir@travelzoo.com
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SOURCE Trave
04/27/2023
NEW YORK, April 27, 2023 /PRNewswire/ — Travelzoo® (NASDAQ: TZOO):
- Revenue of $21.6 million, up 17% year-over-year
- In constant currencies, revenue was $22.1 million, up 19% year-over-year
- Non-GAAP consolidated operating profit of $5.5 million
- Earnings per share (EPS) of $0.23
Travelzoo, a global Internet media company that provides exclusive offers and experiences for members, today announced financial results for the first quarter ended March 31, 2023. Consolidated revenue was $21.6 million, up 17% from $18.5 million year-over-year. In constant currencies, revenue was $22.1 million. Travelzoo’s reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members.
The reported net income attributable to Travelzoo from continuing operations was $3.7 million for Q1 2023. At the consolidated level, including minority interests, the reported net income from continuing operations was $3.7 million. EPS from continuing operations was $0.23, compared to $0.19 in the prior-year period.
Non-GAAP operating profit was $5.5 million. The calculation of non-GAAP operating profit excludes amortization of intangibles ($0.4 million), stock option expenses ($0.4 million) and severance-related expenses ($39,000). See section “Non-GAAP Financial Measures” below.
“We will continue our strategy of leveraging Travelzoo’s global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more exclusive offers for Travelzoo members,” said Holger Bartel, Travelzoo’s Global CEO. “With more than 30 million members, 8 million mobile app users, and 4 million social media followers, Travelzoo is loved by travel enthusiasts who are affluent, active, and open to new experiences.”
Cash Position
As of March 31, 2023, consolidated cash, cash equivalents and restricted cash were $19.8 million. Net cash provided by operations was $535,000.
Reserve
Reported revenues include a reserve of $785,000 related to commissions to be earned from vouchers sold. The reserve is initially booked as contra revenue.
Travelzoo North America
North America business segment revenue increased 26% year-over-year to $14.8 million. Operating profit for Q1 2023 was $4.5 million, or 31% of revenue, compared to an operating profit of $1.7 million in the prior-year period.
Travelzoo Europe
Europe business segment revenue remained consistent year-over-year at $5.9 million. At constant currencies, Europe business segment revenue increased 6% year-over-year. Operating profit for Q1 2023 was $457,000, or 8% of revenue, compared to an operating profit of $178,000 in the prior-year period.
Jack’s Flight Club
Jack’s Flight Club business segment revenue increased 15% year-over-year to $948,000. Jack’s Flight Club is a membership subscription service in which Travelzoo has a 60% ownership interest. The number of premium subscribers increased 27% year-over-year. Revenue from increases in subscribers is reported with a lag because we recognize revenue from subscriptions monthly pro rata over the subscription period (quarterly, semi-annually, annually). Non-GAAP operating profit for Q1 2023 was $123,000, compared to a non-GAAP operating profit of $249,000 in the prior-year period. After consolidation with Travelzoo, Jack’s Flight Club’s net income was $20,000, with $12,000 attributable to Travelzoo as a result of recording $168,000 of amortization of intangible assets related to the acquisition.
New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $8,000. Operating loss for Q1 2023 was $217,000.
In June 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Japan for the exclusive use of Travelzoo’s brand, business model, and members in Japan. In August of 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Australia for the exclusive use of Travelzoo’s brand, business models, and members in Australia, New Zealand, and Singapore. Under these arrangements, Travelzoo’s existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue is booked with a lag of one quarter. Travelzoo recorded $8,000 in licensing revenue from the licensee in Australia, New Zealand, and Singapore in Q1 2023. Licensing revenue is expected to increase going forward.
Members and Subscribers
As of March 31, 2023, we had 30.5 million members worldwide. In North America, the unduplicated number of Travelzoo members was 16.3 million as of March 31, 2023, down 2% from March 31, 2022. In Europe, the unduplicated number of Travelzoo members was 9.1 million as of March 31, 2023, consistent with March 31, 2022. Jack’s Flight Club had 2.0 million subscribers as of March 31, 2023, up 14% from March 31, 2022.
Discontinued Operations
As announced in a press release on March 10, 2020, Travelzoo decided to exit its Asia Pacific business and operate it as a licensing business going forward. Consequently, the Asia Pacific business has been classified as discontinued operations since March 31, 2020. Prior periods have been reclassified to conform with the current presentation. Certain reclassifications have been made for current and prior periods between the continued operations and the discontinued operations in accordance with U.S. GAAP.
Income Taxes
A provision of $1.4 million for income taxes was recorded for Q1 2023, compared to an income tax expense of $968,000 in the prior-year period. The provision for Q1 2023 does not reflect the expected utilization of NOLs by Travelzoo in the U.S.
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” in this press release and today’s earnings conference call, excludes the following items: 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 the United States of America (“GAAP”). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.
Looking Ahead
For Q2 2023, we currently expect growth in revenue and growth in operating profit to continue year-over-year. 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.
Conference Call
Travelzoo will host a conference call to discuss first quarter 2023 results today at 11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to
- download the management presentation (PDF format) to be discussed in the conference call
- access the webcast.
About Travelzoo
Travelzoo® provides its 30 million members with 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 Travelzoo members access to irresistible deals.
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 and Jack’s Flight Club are registered trademarks of Travelzoo.
| Travelzoo Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) | |||
| Three months ended | |||
| March 31 | |||
| 2023 | 2022 | ||
| Revenues | $ 21,601 | $ 18,453 | |
| Cost of revenues | 2,691 | 2,832 | |
| Gross profit | 18,910 | 15,621 | |
| Operating expenses: | |||
| Sales and marketing | 9,296 | 8,581 | |
| Product development | 490 | 453 | |
| General and administrative | 4,413 | 4,668 | |
| Total operating expenses | 14,199 | 13,702 | |
| Operating income | 4,711 | 1,919 | |
| Other income, net | 350 | 1,423 | |
| Income from continuing operations before income taxes | 5,061 | 3,342 | |
| Income tax expense | 1,378 | 968 | |
| Income from continuing operations | 3,683 | 2,374 | |
| Loss from discontinued operations, net of tax | (2) | (11) | |
| Net income | 3,681 | 2,363 | |
| Net income attributable to non-controlling interest | 8 | 4 | |
| Net income attributable to Travelzoo | $ 3,673 | $ 2,359 | |
| Net income attributable to Travelzoo—continuing operations | $ 3,675 | $ 2,370 | |
| Net loss attributable to Travelzoo—discontinued operations | $ (2) | $ (11) | |
| Income per share—basic | |||
| Continuing operations | $ 0.23 | $ 0.20 | |
| Discontinued operations | $ — | $ — | |
| Net income per share—basic | $ 0.23 | $ 0.20 | |
| Income per share—diluted | |||
| Continuing operations | $ 0.23 | $ 0.19 | |
| Discontinued operations | $ — | $ — | |
| Net income per share—diluted | $ 0.23 | $ 0.19 | |
| Shares used in per share calculation from continuing operations—basic | 15,697 | 12,056 | |
| Shares used in per share calculation from discontinued operations—basic | 15,697 | 12,056 | |
| Shares used in per share calculation from continuing operations—diluted | 15,779 | 12,544 | |
| Shares used in per share calculation from discontinued operations—diluted | 15,697 | 12,056 | |
| Travelzoo Condensed Consolidated Balance Sheets (Unaudited) (In thousands) | |||
| March 31, 2023 | December 31, 2022 | ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $ 19,138 | $ 18,693 | |
| Accounts receivable, net | 13,672 | 13,820 | |
| Prepaid income taxes | 1,401 | 1,778 | |
| Prepaid expenses and other | 1,764 | 1,289 | |
| Assets from discontinued operations | 10 | 11 | |
| Total current assets | 35,985 | 35,591 | |
| Deposits and other | 4,618 | 5,094 | |
| Deferred tax assets | 3,248 | 3,222 | |
| Restricted cash | 679 | 675 | |
| Operating lease right-of-use assets | 6,852 | 7,440 | |
| Property and equipment, net | 692 | 657 | |
| Intangible assets, net | 3,249 | 3,651 | |
| Goodwill | 10,944 | 10,944 | |
| Total assets | $ 66,267 | $ 67,274 | |
| Liabilities and Stockholders’ Equity | |||
| Current liabilities: | |||
| Accounts payable | $ 3,143 | $ 4,271 | |
| Merchant payables | 27,976 | 32,574 | |
| Accrued expenses and other | 4,611 | 5,049 | |
| Deferred revenue | 3,124 | 2,216 | |
| Operating lease liabilities | 2,682 | 2,972 | |
| Liabilities from discontinued operations | 453 | 452 | |
| Total current liabilities | 41,989 | 47,534 | |
| Long-term operating lease liabilities | 7,926 | 8,326 | |
| Other long-term liabilities | 3,530 | 2,563 | |
| Total liabilities | 53,445 | 58,423 | |
| Non-controlling interest | 4,603 | 4,595 | |
| Common stock | 165 | 165 | |
| Treasury stock (at cost) | (7,316) | (7,130) | |
| Tax indemnification | (9,537) | (9,537) | |
| Note receivable from shareholder | (4,753) | (4,753) | |
| Additional paid-in capital | 23,670 | 23,274 | |
| Retained earnings | 10,815 | 7,142 | |
| Accumulated other comprehensive loss | (4,825) | (4,905) | |
| Total stockholders’ equity | 8,219 | 4,256 | |
| Total liabilities and stockholders’ equity | $ 66,267 | $ 67,274 | |
| Travelzoo Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | |||
| Three months ended | |||
| March 31 | |||
| 2023 | 2022 | ||
| Cash flows from operating activities: | |||
| Net income | $ 3,681 | $ 2,363 | |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
| Depreciation and amortization | 478 | 574 | |
| Stock-based compensation | 396 | 542 | |
| Deferred income tax | (68) | 97 | |
| Loss on long-lived assets | — | 38 | |
| Gain on sale of equity investment in WeGo | — | (196) | |
| Net foreign currency effects | 3 | (13) | |
| Reversal of reserves on accounts receivable and other reserves | (569) | (1,408) | |
| Changes in operating assets and liabilities: | |||
| Accounts receivable | 372 | (3,163) | |
| Prepaid income taxes | 407 | 759 | |
| Prepaid expenses, deposits and other | 17 | 565 | |
| Accounts payable | (1,321) | 103 | |
| Merchant payables | (4,591) | (7,961) | |
| Accrued expenses and other | 911 | 917 | |
| Income tax payable | — | (157) | |
| Other liabilities | 819 | 176 | |
| Net cash provided by (used in) operating activities | 535 | (6,764) | |
| Cash flows from investing activities: | |||
| Proceeds from repayment of note receivable | 39 | — | |
| Purchases of intangible assets | — | (1,049) | |
| Proceeds from sale of equity investment in WeGo | — | 196 | |
| Purchases of property and equipment | (111) | (89) | |
| Net cash used in investing activities | (72) | (942) | |
| Cash flows from financing activities: | |||
| Repurchase of common stock | (186) | — | |
| Net cash used in financing activities | (186) | — | |
| Effect of exchange rate on cash, cash equivalents and restricted cash | 171 | (524) | |
| Net increase (decrease) in cash, cash equivalents and restricted cash | 448 | (8,230) | |
| Cash, cash equivalents and restricted cash at beginning of period | 19,378 | 44,989 | |
| Cash, cash equivalents and restricted cash at end of period | $ 19,826 | $ 36,759 | |
| Travelzoo Segment Information from Continuing Operations (Unaudited) (In thousands) | |||||||||||
| Three months ended March 31, 2023 | Travelzoo North America | Travelzoo Europe | Jack’s Flight Club | New Initiatives | Elimination | Consolidated | |||||
| Revenue from unaffiliated customers | $ 14,567 | $ 6,078 | $ 948 | $ 8 | $ — | $ 21,601 | |||||
| Intersegment revenue | 191 | (191) | — | — | — | — | |||||
| Total net revenues | 14,758 | 5,887 | 948 | 8 | — | 21,601 | |||||
| Operating income (loss) | $ 4,516 | $ 457 | $ (45) | $ (217) | $ — | $ 4,711 | |||||
| Three months ended March 31, 2022 | Travelzoo North America | Travelzoo Europe | Jack’s Flight Club | New Initiatives | Elimination | Consolidated | |||||
| Revenue from unaffiliated customers | $ 11,498 | $ 6,127 | $ 823 | $ 5 | $ — | $ 18,453 | |||||
| Intersegment revenue | 193 | (193) | — | — | — | — | |||||
| Total net revenues | 11,691 | 5,934 | 823 | 5 | — | 18,453 | |||||
| Operating income (loss) | $ 1,820 | $ 178 | $ 23 | $ (102) | $ — | $ 1,919 | |||||
| Travelzoo Reconciliation of GAAP to Non-GAAP Information (Unaudited) (In thousands, except per share amounts) | |||
| Three months ended | |||
| March 31 | |||
| 2023 | 2022 | ||
| GAAP operating expense | $ 14,199 | $ 13,702 | |
| Non-GAAP adjustments: | |||
| Amortization of intangibles (A) | 398 | 226 | |
| Stock option expenses (B) | 396 | 541 | |
| Severance-related expenses (C) | 39 | 13 | |
| Non-GAAP operating expense | 13,366 | 12,922 | |
| GAAP operating income | 4,711 | 1,919 | |
| Non-GAAP adjustments (A through C) | 833 | 780 | |
| Non-GAAP operating income | 5,544 | 2,699 | |
Investor Relations:
ir@travelzoo.com
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SOURCE Travelzoo