EXHIBIT 99.1
![]() | Travelzoo Inc. 590 Madison Avenue, 21st Floor New York, NY 10022 Phone (212)521-4200 Fax (212)521-4230 |
Contacts: Christie Ly (Media Relations) (212)521-4218 cly@travelzoo-inc.com |
FOR IMMEDIATE RELEASE
Travelzoo Reports Third Quarter 2004 Results
NEW YORK, October 12, 2004 — Travelzoo Inc. (NASDAQ: TZOO) today reported record revenues and record profit for the third quarter ended September 30, 2004. Earnings per share were $0.14 per basic share and $0.12 per diluted share, up 367% and 300% from $0.03 per basic and diluted share in the same period last year.
Third Quarter 2004 Financial Highlights:
- Revenues increased 99% from same period last year
- Sequential quarterly revenue increase of 32%
- Net profit increased 240% from same period last year
- Pre-tax profit margin of 37.4%
Travelzoo reported revenues of approximately $9.5 million for the third quarter ended September 30, 2004, an increase of 99% over revenues of approximately $4.8 million for the same period last year, and a quarterly sequential increase of 32% over revenues of approximately $7.2 million for the quarter ended June 30, 2004. All revenues were generated from the sale of online advertising.
The Company reported net income of approximately $2.1 million for the third quarter of 2004 compared to net income of approximately $617,000 for the same period in 2003.
Income before income taxes for the third quarter ended September 30, 2004 was approximately $3.6 million or 37.4% of revenues, compared to approximately $1.1 million, or 22.0% of revenues, for the same period last year.
For the first nine months of 2004, revenues were approximately $23.2 million compared to approximately $12.8 million for the same period last year, an 81% increase. Diluted earnings per share for the first nine months of 2004 were $0.24 compared to $0.08 for the first nine months of 2003.
A conference call with investors will be broadcast live over the Internet, beginning at 11:00 am ET, to discuss the Company’s third quarter earnings. The conference call is being Web cast by Shareholder.com and can be accessed via Travelzoo’s investor relations Web site atwww.travelzoo.com/ir. Following the call, an archived recording will be available for 90 days.
About Travelzoo
Travelzoo Inc. is the Internet’s largest publisher of outstanding travel offers available directly from hundreds of travel companies. Travelzoo’s media properties include the Travelzoo® Web site (www.travelzoo.com), the Top 20® e-mail newsletter, the Newsflash™ e-mail alert service and SuperSearch™, a pay-per-click search engine. With more than seven million subscribers, Travelzoo lists offers from more than 300 advertisers, including American Airlines, Carnival Cruise Lines, Fairmont Hotels & Resorts, Hertz, JetBlue Airways, Kimpton Hotels, Liberty Travel, The Mark Travel Corporation, Marriott, Orbitz, Royal Caribbean Cruises, Singapore Airlines, The Venetian, Travelocity, United Airlines and Virgin Vacations.
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 Top 20 are registered trademarks of Travelzoo Inc. All other company and product names mentioned are trademarks of their respective owners.
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Travelzoo Inc.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share amounts)
Three months ended September 30, | Nine months ended September 30, | ||||||||
2004 | 2003 | 2004 | 2003 | ||||||
Revenues | $ 9,507 | $ 4,785 | $23,171 | $12,791 | |||||
Cost of Revenues | 183 | 93 | 529 | 258 | |||||
Gross Profit | 9,324 | 4,692 | 22,642 | 12,533 | |||||
Operating Expenses: | |||||||||
Sales and Marketing | 4,339 | 2,526 | 11,463 | 6,744 | |||||
General and Administrative | 1,437 | 1,115 | 3,653 | 3,075 | |||||
Total Operating Expenses | 5,776 | 3,641 | 15,116 | 9,819 | |||||
Income from Operations | 3,548 | 1,051 | 7,526 | 2,714 | |||||
Interest Income | 9 | 3 | 21 | 8 | |||||
Income before Income Taxes | 3,557 | 1,054 | 7,547 | 2,722 | |||||
Income Taxes | 1,461 | 437 | 3,108 | 1,124 | |||||
Net Income | $ 2,096 | $ 617 | $ 4,439 | $ 1,598 | |||||
Basic Net Income per Share | $ 0.14 | $ 0.03 | $ 0.26 | $ 0.08 | |||||
Diluted Net Income per Share | 0.12 | 0.03 | 0.24 | 0.08 | |||||
Shares Used in Computing | |||||||||
Basic Net Income per Share | 15,448 | 19,425 | 17,111 | 19,425 | |||||
Shares Used in Computing | |||||||||
Diluted Net Income per Share | 17,293 | 20,521 | 18,562 | 20,508 |
Travelzoo Inc.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
September 30, 2004 | December 31, 2003 | ||||
ASSETS | |||||
Cash | $ 6,078 | $ 3,522 | |||
Accounts Receivable, net | 4,845 | 2,370 | |||
Deposits | -- | 97 | |||
Prepaid Expenses & Other Current Assets | 286 | 132 | |||
Deferred Income Taxes | 225 | 225 | |||
Total Current Assets | 11,434 | 6,346 | |||
Deposits | 162 | 42 | |||
Deferred Income Taxes | 27 | 27 | |||
Property and Equipment, net | 129 | 164 | |||
Intangible Assets, net | 100 | 147 | |||
Total Assets | $ 11,852 | $ 6,726 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Accounts Payable | 308 | 224 | |||
Accrued Expenses | 1,519 | 1,328 | |||
Deferred Revenue | 177 | 22 | |||
Income Tax Payable | 295 | 1,311 | |||
Total Liabilities | 2,299 | 2,885 | |||
Common Stock | 154 | 194 | |||
Additional paid-in capital | 1,197 | (116 | ) | ||
Retained Earnings | 8,202 | 3,763 | |||
Total Stockholders' Equity | 9,553 | 3,841 | |||
Total Liabilities and | |||||
Stockholders' Equity | $11,852 | $ 6,726 | |||
Travelzoo Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
Nine months ended September 30, | |||||
2004 | 2003 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net Income | $ 4,439 | $ 1,598 | |||
Adjustments to Reconcile Net Income to Net Cash | |||||
Provided by Operating Activities: | |||||
Depreciation and Amortization | 121 | 125 | |||
Provision for Losses on Accounts Receivable | 112 | 6 | |||
Loss on Disposal of Property and Equipment | – | – | |||
Tax Benefit of Stock Option Exercises | 943 | – | |||
Changes in Operating Assets and Liabilities: | |||||
Accounts Receivable | (2,587 | ) | (831 | ) | |
Deposits | (23 | ) | (47 | ) | |
Prepaid Expenses and Other Current Assets | (154 | ) | (62 | ) | |
Accounts Payable | 84 | (82 | ) | ||
Accrued Expenses | 191 | 726 | |||
Deferred Revenue | 155 | 42 | |||
Income Tax Payable | (1016 | ) | 326 | ||
Net Cash Provided by Operating Activities | 2,265 | 1,801 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Purchases of Property and Equipment | (39 | ) | (47 | ) | |
Net Cash Used in Investing Activities | (39 | ) | (47 | ) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Issuance of Common Stock | 296 | – | |||
Recovery of Profit from Purchase and Sale of | 34 | – | |||
Stock by Employees | |||||
Net Cash Provided by Financing Activities | 330 | – | |||
Net Increase in Cash and Cash Equivalents | 2,556 | 1,754 | |||
Cash and Cash Equivalents at Beginning of Period | 3,522 | 1,258 | |||
Cash and Cash Equivalents at End of Period | $ 6,078 | $ 3,012 | |||
Supplemental Disclosure of Cash Flow Information: | |||||
Cash Paid for Income Taxes | $ 3,193 | $ 798 |
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