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 | |
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| 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 | |
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| Total Operating Expenses | | 4,035 | | 2,551 | | 13,853 | | 8,075 | |
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| Income from Operations | | 1,025 | | 492 | | 3,739 | | 1,422 | |
| Interest Income | | 5 | | 2 | | 13 | | 4 | |
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| Income before Income Taxes | | 1,030 | | 494 | | 3,752 | | 1,426 | |
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| Income Taxes | | 577 | | 168 | | 1,702 | | 573 | |
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| Net Income | | $ 453 | | $ 326 | | $ 2,050 | | $ 853 | |
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| 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 | |
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| Total Current Assets | | 6,251 | | 2,788 | |
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| Deposits | | 137 | | 65 | |
| Deferred Income Taxes | | 27 | | 32 | |
| Property and Equipment, net | | 164 | | 142 | |
| Intangible Assets, net | | 147 | | 213 | |
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| Total Assets | | $ 6,726 | | $ 3,240 | |
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| Accounts Payable | | 224 | | 442 | |
| Accrued Expenses | | 1,328 | | 548 | |
| Deferred Revenue | | 22 | | 19 | |
| Income Tax Payable | | 1,311 | | 440 | |
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| Total Liabilities | | 2,885 | | 1,449 | |
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| Common Stock | | 194 | | 194 | |
| Additional paid-in capital | | (116 | ) | (116 | ) |
| Retained Earnings | | 3,763 | | 1,713 | |
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| Total Stockholders' Equity | | 3,841 | | 1,791 | |
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| Total Liabilities and | |
| Stockholders' Equity | | $ 6,726 | | $ 3,240 | |
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