Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 24, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Travelzoo Inc | ' |
Entity Central Index Key | '0001133311 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 14,746,954 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $61,035 | $66,223 |
Accounts receivable, less allowance for doubtful accounts of $351 and $428 as of March 31, 2014 and December 31, 2013, respectively | 15,355 | 13,986 |
Income tax receivable | 1,388 | 2,656 |
Deposits | 251 | 396 |
Prepaid expenses and other current assets | 2,538 | 3,202 |
Deferred tax assets | 1,067 | 1,143 |
Restricted cash | 0 | 200 |
Funds held for reverse/forward stock split | 212 | 13,668 |
Total current assets | 81,846 | 101,474 |
Deposits, less current portion | 1,231 | 1,168 |
Deferred tax assets, less current portion | 2,032 | 2,032 |
Restricted cash | 1,480 | 1,479 |
Property and equipment, net | 10,305 | 8,245 |
Intangible assets, net | 349 | 404 |
Total assets | 97,243 | 114,802 |
Current liabilities: | ' | ' |
Accounts payable | 28,999 | 31,766 |
Accrued expenses | 9,820 | 10,543 |
Deferred revenue | 1,688 | 1,578 |
Deferred rent | 271 | 281 |
Reserve for unexchanged promotional shares | 11,500 | 12,726 |
Reserve for unexchanged promotional shares | 212 | 13,668 |
Income tax payable | 726 | 0 |
Total current liabilities | 53,216 | 70,562 |
Long-term tax liabilities | 10,546 | 10,436 |
Deferred rent, less current portion | 3,111 | 2,469 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value per share (5,000 shares authorized; none issued) | 0 | 0 |
Common stock, $0.01 par value (40,000 shares authorized; 15,801 shares issued, 14,747 and 14,991 shares outstanding as of March 31, 2014 and December 31, 2013, respectively) | 163 | 163 |
Treasury stock (at cost, 1,054 and 810 shares at March 31, 2014 and December 31, 2013, respectively) | -21,231 | -15,662 |
Additional paid-in capital | 10,642 | 10,247 |
Retained earnings | 41,409 | 37,117 |
Accumulated other comprehensive loss | -613 | -530 |
Total stockholders’ equity | 30,370 | 31,335 |
Total liabilities and stockholders’ equity | $97,243 | $114,802 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts receivable | $351 | $428 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 15,801,000 | 15,801,000 |
Common stock, shares outstanding (in shares) | 14,747,000 | 14,991,000 |
Treasury stock, shares (in shares) | 1,054,000 | 810,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Revenues | $40,195 | $42,177 |
Cost of revenues | 4,777 | 3,985 |
Gross profit | 35,418 | 38,192 |
Operating expenses: | ' | ' |
Sales and marketing | 17,843 | 19,659 |
General and administrative | 10,578 | 10,497 |
Total operating expenses | 28,421 | 30,156 |
Income from operations | 6,997 | 8,036 |
Other income | 122 | 31 |
Income before income taxes | 7,119 | 8,067 |
Income taxes | 2,481 | 2,472 |
Net income | $4,638 | $5,595 |
Basic net income (loss) per share (in dollars per share) | $0.31 | $0.36 |
Diluted net income per share | $0.31 | $0.36 |
Shares used in computing basic net income (loss) per share (in shares) | 14,880 | 15,362 |
Shares used in computing diluted net income (loss) per share (in shares) | 14,970 | 15,371 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $4,638 | $5,595 |
Other comprehensive income: | ' | ' |
Foreign currency translation adjustment | -83 | -1,217 |
Total comprehensive income | $4,555 | $4,378 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $4,638 | $5,595 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 701 | 716 |
Deferred income tax | 76 | 193 |
Stock-based compensation | 395 | 307 |
Provision for losses on accounts receivable | -52 | 95 |
Net foreign currency effect | -9 | 94 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -1,288 | -2,036 |
Deposits | 133 | -155 |
Income tax receivable | 1,266 | 1,564 |
Prepaid expenses and other current assets | 447 | 350 |
Accounts payable | -2,984 | -549 |
Reserve for unexchanged promotional shares | -1,226 | 0 |
Accrued expenses | -1,294 | 850 |
Deferred revenue | 110 | -517 |
Deferred rent | 5 | -110 |
Income tax payable | 722 | 0 |
Other non-current liabilities | 111 | 103 |
Net cash provided by operating activities | 1,751 | 6,500 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -1,019 | -900 |
Release of restricted cash | 200 | 0 |
Net cash used in investing activities | -819 | -900 |
Cash flows from financing activities: | ' | ' |
Repurchase of common stock | -5,569 | 0 |
Reverse/forward stock split, including transaction costs | -479 | 0 |
Net cash used in financing activities | -6,048 | 0 |
Effect of exchange rate changes on cash and cash equivalents | -72 | -1,662 |
Net increase (decrease) in cash and cash equivalents | -5,188 | 3,938 |
Cash and cash equivalents at beginning of period | 66,223 | 61,169 |
Cash and cash equivalents at end of period | 61,035 | 65,107 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for income taxes, net | 335 | 10 |
Leasehold improvements funded by landlord or accrued | $1,381 | $0 |
The_Company_and_Basis_of_Prese
The Company and Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
The Company and Basis of Presentation | ' |
The Company and Basis of Presentation | |
Travelzoo Inc. (the “Company” or “Travelzoo”) is a global Internet media company. We inform over 27 million subscribers in North America, Europe and Asia Pacific, as well as millions of website users, about the best travel, entertainment and local deals available from thousands of companies. Our deal experts source, research and test-book offers, recommending only those that meet Travelzoo’s rigorous quality standards. We provide travel, entertainment, and local businesses with a fast, flexible, and cost effective way to reach millions of consumers. Our revenues are generated primarily from advertising fees. In Asia Pacific, the Travelzoo business is operated by Travelzoo (Asia) Limited and Travelzoo Japan K.K. under a license agreement with Travelzoo Inc. and is not owned by the Company. | |
Our publications and products include the Travelzoo websites (www.travelzoo.com, www.travelzoo.ca, www.travelzoo.co.uk, www.travelzoo.de, www.travelzoo.es, www.travelzoo.fr, among others), the Travelzoo Top 20 e-mail newsletter, the Newsflash e-mail alert service, the SuperSearch pay-per-click travel search tool, and the Travelzoo Network, a network of third-party websites that list travel deals published by Travelzoo. We also operate Fly.com, a travel search engine that allows users to quickly and easily find the best prices on flights from hundreds of airlines and online travel agencies. In addition, our Travelzoo websites include our Local Deals and Getaways products that allow our subscribers to purchase vouchers for deals from local businesses such as spas, hotels and restaurants. We receive a percentage of the face value of the voucher from the local businesses. | |
Since November 1, 2009, the Travelzoo websites in Asia Pacific (cn.travelzoo.com, www.travelzoo.co.jp, www.travelzoo.com.au, www.travelzoo.com.hk, www.travelzoo.com.tw, among others), the Travelzoo Top 20 e-mail newsletters in Asia Pacific and the Newsflash e-mail alert service in Asia Pacific have been published by Travelzoo (Asia) Limited and Travelzoo Japan K.K., wholly owned subsidiaries of Azzurro Capital Inc. ("Azzurro"), under a license agreement with the Company. There is a reciprocal revenue-sharing agreement among the entities operating the Travelzoo business in Asia Pacific and the Company related to cross-selling audiences. | |
Ralph Bartel, who founded Travelzoo and who is a Director of the Company is the sole beneficiary of the Ralph Bartel 2005 Trust, which is the controlling shareholder of Azzurro Capital Inc. As of March 31, 2014, Azzurro is the Company's largest stockholder, holding approximately 49.0% of the Company's outstanding shares. Azzurro currently holds a proxy given to it by Holger Bartel that provides it with a total of 50.4% of the voting power. | |
The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position of the Company and its results of operations and cash flows. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes as of and for the year ended December 31, 2013, included in the Company’s Form 10-K filed with the SEC on February 12, 2014. | |
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. All foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated into U.S. dollars at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. dollars at average exchange rates for the period. | |
The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or any other future period, and the Company makes no representations related thereto. | |
The Company was formed as a result of a combination and merger of entities founded by the Company’s principal stockholder, Ralph Bartel. In 1998, Mr. Bartel founded Travelzoo.com Corporation, a Bahamas corporation, which issued 5,155,874 shares via the Internet to approximately 700,000 “Netsurfer stockholders” for no cash consideration, but subject to certain conditions as referred to below. In 1998, Mr. Bartel also founded Silicon Channels Corporation, a California corporation, to operate the Travelzoo website. During 2001, Travelzoo Inc. was formed as a subsidiary of Travelzoo.com Corporation, and Mr. Bartel contributed all of the outstanding shares of Silicon Channels Corporation to Travelzoo Inc. in exchange for 8,129,273 shares of Travelzoo Inc. and options to acquire an additional 2,158,349 shares at $1.00. Mr. Bartel exercised these options in January 2009. | |
In April 2002, Travelzoo.com Corporation was merged into Travelzoo Inc. Under and subject to the terms of the merger agreement, holders of promotional shares of Travelzoo.com Corporation (“Netsurfers”) who established that they had satisfied certain prerequisite qualifications were allowed a period of 2 years following the effective date of the merger to receive one share of Travelzoo Inc. in exchange for each share of common stock of Travelzoo.com Corporation. The records of Travelzoo.com Corporation showed that, assuming all of the shares applied for by the Netsurfer stockholders were validly issued, there were 11,295,874 shares of Travelzoo.com Corporation outstanding. As of April 25, 2004, two years following the effective date of the merger, 7,180,342 shares of Travelzoo.com Corporation had been exchanged for shares of Travelzoo Inc. Prior to that date, the remaining shares which were available for issuance pursuant to the merger agreement were also included in the issued and outstanding common stock of Travelzoo Inc. and included in the calculation of basic and diluted earnings per share. After April 25, 2004, the Company ceased issuing shares to the former stockholders of Travelzoo.com Corporation; and therefore, no additional shares are reserved for issuance to any former stockholders, because their right to receive shares has now expired. On April 25, 2004, the number of shares reported as outstanding was reduced from 19,425,147 to 15,309,615 to reflect actual shares issued as of the expiration date. Earnings per share calculations reflect this reduction of the number of shares reported as outstanding. As of March 31, 2014, there were 14,746,954 shares of common stock outstanding. | |
On April 21, 2011, the Company entered into an agreement with the State of Delaware resolving all claims relating to an unclaimed property review which began in 2010. The primary issue raised in the preliminary findings from the review, received by the Company on April 12, 2011, concerned the shares of Travelzoo which have not been claimed by former Netsurfer stockholders of Travelzoo.com, which remained unexchanged in the 2002 merger, as discussed in the preceding paragraph. In the preliminary findings under the unclaimed property review, up to 3.0 million shares were identified as “demandable” under Delaware escheat laws. While the Company continues to take the position that such shares were a promotional incentive and were issuable only to persons who establish their eligibility as stockholders, the Company determined that it was in its best interest to promptly resolve all claims relating to the unclaimed property review. The Company made a $20.0 million cash payment to the State of Delaware on April 27, 2011 and received a complete release of those claims. | |
Since March 2012, the Company has become subject to unclaimed property reviews by most of the other states in the United States. The auditing firm representing these states in the reviews has presented to the Company preliminary findings, which relate primarily to the promotional shares which remained unexchanged in the 2002 merger that were not covered by the settlement and release by the State of Delaware. During the three months ended March 31, 2012, the Company recorded a $3.0 million charge for the contingency related to the promotional shares which remained unexchanged in the 2002 merger. | |
In October 2013, the Company entered into settlement agreements with 35 additional states to resolve those states’ claims related to similar unclaimed property audits. The multi-state settlement relates to approximately 700,000 additional shares of the Company that were not claimed by residents of those states following the merger, which those states claimed were subject to escheat. While the Company disputes the states’ claims, the Company determined that it was in its best interest to resolve the disputes and settle with 35 of the states. The remaining states have or may raise claims on approximately 400,000 additional shares that were not claimed following the merger by residents in those states. | |
During the three months ended September 30, 2013, the Company recorded a $22.0 million charge related to settlements it entered into and for potential future settlements with the remaining states. During the three months ended December 31, 2013 and March 31, 2014, the Company made cash payments of $12.3 million and $1.2 million, respectively, to settled states after completion of the required due diligence. | |
The Company intends to continue to challenge the applicability of escheat rights with the remaining states, in that, among other reasons, the shares of the predecessor Bahamas corporation were offered for free as part of a promotional incentive program to qualified individuals. In addition, there were certain conditions applicable to the issuance of shares to so-called "Netsurfer" stockholders, including requirements that (i) they be at least 18 years of age, (ii) they be residents of the U.S. or Canada, and (iii) they not apply for shares more than once. The Netsurfer stockholders were advised that failure to comply could result in cancellation of their shares in Travelzoo.com Corporation. Travelzoo.com Corporation was not able to verify that the applicants met the requirements referred to above at the time of their applications for issuance of shares, and the remaining Netsurfer stockholders who have not qualified to receive shares in the Company, or who have not participated in the cash payments program referred to below, have not demonstrated their actual compliance with the conditions to the issuance of shares by Travelzoo.com Corporation. The Company does not know how many of the requests for shares originally received by Travelzoo.com Corporation in 1998 were valid, but the Company believes that only a portion of such requests were valid. In response to the pending reviews referred to above, and in response to other persons claiming to be former stockholders of Travelzoo.com Corporation, the Company intends to assert that the claimant must establish that the original Netsurfer stockholders complied with the conditions to issuance of their shares. | |
The ultimate resolution of this matter with the remaining states may take longer than one year; however, we have included the estimated loss for these remaining states potential claims in our reserves. The total amount of exposure of this contingency is dependent upon the manner in which each state applies its unclaimed property laws, including whether penalties and interest are applicable. | |
The Company is continuing its program under which it makes cash payments to people who establish that they satisfy the conditions to receive shares of Travelzoo.com Corporation, and who failed to submit requests to convert their shares into shares of Travelzoo Inc. within the required time period. This program is not available for individuals whose promotional shares have been escheated to a state by the Company. The accompanying condensed consolidated financial statements include a charge in general and administrative expenses of $1,000 for these cash payments for the three months ended March 31, 2014. | |
The total cost of this program is not reliably estimable because it is based on the ultimate number of valid requests received and future levels of the Company’s common stock price, and would be affected by any settlement of the pending reviews referred to above. The Company’s common stock price affects the liability because the amount of cash payments under the program is based in part on the recent level of the stock price at the date valid requests are received. As noted above, in order to receive payment under the program, a person is required to establish that such person validly held shares in Travelzoo.com Corporation. |
Net_Income_Per_Share
Net Income Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Net Income (Loss) Per Share | ' | |||||||
Net Income Per Share | ||||||||
Basic net income per share is computed using the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by adjusting the weighted-average number of common shares outstanding for the effect of dilutive potential common shares outstanding during the period. Potential common shares included in the diluted calculation consist of incremental shares issuable upon the exercise of outstanding stock options calculated using the treasury stock method. | ||||||||
The following table sets forth the calculation of basic and diluted net income per share (in thousands, except per share amounts): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Basic net income per share: | ||||||||
Net income | $ | 4,638 | $ | 5,595 | ||||
Weighted average common shares | 14,880 | 15,362 | ||||||
Basic net income per share | $ | 0.31 | $ | 0.36 | ||||
Diluted net income per share: | ||||||||
Net income | $ | 4,638 | $ | 5,595 | ||||
Weighted average common shares | 14,880 | 15,362 | ||||||
Effect of dilutive securities: stock options | 90 | 9 | ||||||
Diluted weighted average common shares | 14,970 | 15,371 | ||||||
Diluted net income per share | $ | 0.31 | $ | 0.36 | ||||
For the three months ended March 31, 2014, options to purchase 175,000 shares of common stock were not included in the computation of diluted net loss per share because the effect would have been anti-dilutive. For the three months ended March 31, 2013, options to purchase 100,000 shares of common stock were not included in the computation of diluted net income per share because the effect would have been anti-dilutive. |
Financial_Instruments
Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Financial Instruments | ' | |||||||||||||||
Financial Instruments | ||||||||||||||||
At March 31, 2014, restricted cash consisted primarily of a certificate of deposit for $675,000 serving as collateral for a standby letter of credit for the security deposit under the lease of our corporate headquarters and an $805,000 deposit with our banks in Europe for our merchant accounts. Cash equivalents consist of highly liquid investments with maturities of 3 months or less on the date of purchase held in money market funds. The Company believes that the carrying amounts of these financial assets are a reasonable estimate of their fair value and are categorized as Level 1. | ||||||||||||||||
The fair value of these financial assets was determined using the following inputs at March 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant | Significant | ||||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Balance at March 31, 2014 | ||||||||||||||||
Money market funds | $ | 223 | $ | 223 | $ | — | $ | — | ||||||||
Total | $ | 223 | $ | 223 | $ | — | $ | — | ||||||||
Balance at December 31, 2013 | ||||||||||||||||
Money market funds | $ | 733 | $ | 733 | $ | — | $ | — | ||||||||
Total | $ | 733 | $ | 733 | $ | — | $ | — | ||||||||
At March 31, 2014, accounts receivable and accounts payable are not measured at fair value; however, the Company believes that the carrying amounts of these assets and liabilities are a reasonable estimate of their fair value. Accounts receivable and accounts payable are categorized as Level 2. | ||||||||||||||||
There have been no transfers and no changes in valuation techniques for these assets or liabilities for the period ended March 31, 2014. |
Intangible_Assets
Intangible Assets | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Intangible Assets | ' | |||||||
Intangible Assets | ||||||||
The details of intangible assets consist of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Internet domain names and technology | $ | 2,819 | $ | 2,813 | ||||
Accumulated amortization | (2,470 | ) | (2,409 | ) | ||||
Total | $ | 349 | $ | 404 | ||||
Intangible assets have a useful life of 3 to 5 years. For the three months ended March 31, 2014 and 2013, amortization expense was $61,000 and $157,000, respectively. | ||||||||
Future expected amortization expense related to intangible assets at March 31, 2014 is as follows (in thousands): | ||||||||
Remainder of 2014 | $ | 178 | ||||||
2015 | 171 | |||||||
Total | $ | 349 | ||||||
The expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, impairment of intangible assets, accelerated amortization of intangible assets and other events. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||||||||
On September 28, 2012, Metasearch Systems, LLC filed a lawsuit in the U.S. District Court for the District of Delaware against Travelzoo Inc. d/b/a Fly.com alleging infringement of several U.S. patents. Metasearch Systems alleges that the trip-planning metasearch service available on Fly.com infringes one or more claims of the asserted patents. During September 2012, Metasearch Systems filed similar lawsuits against several of Travelzoo's competitors including Expedia, Inc., Orbitz Worldwide, Inc., Travelocity.com, LP, Priceline.com, Inc., Yahoo! Inc., American Express Company, Kayak Software Corp., and BookIt.com. The action seeks unspecified damages and we are unable to estimate the possible loss or range of losses that could potentially result from the action. The Company believes that the action is without merit and intends to defend the suit vigorously. | ||||||||||||||||||||||||||||
On January 27, 2012, a purported shareholder of Travelzoo commenced a suit in the Supreme Court of New York that asserted claims derivatively on behalf of Travelzoo Inc. for breaches of fiduciary duty against Travelzoo’s board of directors. The complaint also asserts claims for breaches of fiduciary duty and unjust enrichment against Ralph Bartel and Azzurro. The complaint challenged Travelzoo’s sale of its Asia Pacific division for $3.6 million to Azzurro and alleged that the transaction was not entirely fair to the Company. On January 21, 2014, the court granted defendants’ motions to dismiss and dismissed the action in its entirety with prejudice. The plaintiff did not appeal the decision. Therefore, the matter is closed. | ||||||||||||||||||||||||||||
On April 21, 2011, the Company entered into an agreement with the State of Delaware resolving all claims relating to an unclaimed property review which began in 2010. The primary issue raised in the preliminary findings from the review, received by the Company on April 12, 2011, concerned the promotional shares which remained unexchanged in the 2002 merger (unexchanged promotional shares) as discussed further in Note 1. In the preliminary findings under the unclaimed property review, up to 3.0 million shares were identified as “demandable” under Delaware escheat laws. While the Company continues to take the position that such shares were a promotional incentive and were issuable only to persons who established their eligibility as stockholders, the Company determined that it was in its best interest to promptly resolve all claims relating to the unclaimed property review. The Company made a $20.0 million cash payment to the State of Delaware on April, 2011 and received a complete release of those claims. | ||||||||||||||||||||||||||||
As discussed in Note 1 above, since March 2012, the Company has become subject to unclaimed property reviews by most of the other states in the U.S. that relate primarily to the unexchanged promotional shares, which were not covered by the settlement and release by the State of Delaware. During the three months ended March 31, 2012, the Company recorded a $3.0 million charge related to this unexchanged promotional shares contingency. | ||||||||||||||||||||||||||||
In October 2013, the Company entered into settlement agreements with 35 additional states to resolve those states’ claims related to similar unclaimed property audits. The multi-state settlement relates to approximately 700,000 additional shares of the Company that were not claimed by residents of those states following the merger, which those states claim are subject to escheat. While the Company disputes the states’ claims, the Company determined that it was in its best interest to resolve the disputes and settle with 35 of the states. The remaining states have or may raise claims on approximately 400,000 additional shares that were not claimed following the merger by residents in those states. | ||||||||||||||||||||||||||||
During the three months ended September 30, 2013, the Company recorded a $22.0 million charge related to the settlements it entered into and for potential future settlements with the remaining states. During the three months ended December 31, 2013 and March 31, 2014, the Company made cash payments of $12.3 million and $1.2 million, respectively, to settled states after completion of the required due diligence. | ||||||||||||||||||||||||||||
The Company intends to continue to challenge the applicability of escheat rights with the remaining states, in that, among other reasons, the shares of the predecessor Bahamas corporation were offered for free as part of a promotional incentive program to qualified individuals. In addition, there were certain conditions applicable to the issuance of shares to so-called “Netsurfer” stockholders, including requirements that (i) they be at least 18 years of age, (ii) they be residents of the U.S. or Canada, and (iii) they not apply for shares more than once. The Netsurfer stockholders were advised that failure to comply could result in cancellation of their shares in Travelzoo.com Corporation. Travelzoo.com Corporation was not able to verify that the applicants met the requirements referred to above at the time of their applications for issuance of shares, and the remaining Netsurfer stockholders who have not qualified to receive shares in the Company, or who have not participated in the cash payments program referred to below, have not demonstrated their actual compliance with the conditions to the issuance of shares by Travelzoo.com Corporation. The Company does not know how many of the requests for shares originally received by Travelzoo.com Corporation in 1998 were valid, but the Company believes that only a portion of such requests were valid. In response to the pending reviews referred to above, and in response to other persons claiming to be former stockholders of Travelzoo.com Corporation, the Company intends to assert that the claimant must establish that the original Netsurfer stockholders complied with the conditions to issuance of their shares. | ||||||||||||||||||||||||||||
The ultimate resolution of this matter with the remaining states may take longer than one year; however, we have included the estimated loss for these remaining states potential claims in our reserves. The total amount of exposure of this contingency is dependent upon the manner in which each state applies its unclaimed property laws, including whether penalties and interest are applicable. | ||||||||||||||||||||||||||||
The Company is continuing its program under which it makes cash payments to people whose shares were not delivered to a state pursuant to the unclaimed property settlements. Such people must establish that they satisfy the conditions to receive shares of Travelzoo.com Corporation and failed to submit requests to convert their shares into shares of Travelzoo Inc. within the required time period. The accompanying condensed consolidated financial statements include a charge in general and administrative expenses of $1,000 and $6,000 for these cash payments for the three months ended March 31, 2014 and 2013, respectively. The total cost of this program is not reliably estimable because it is based on the ultimate number of valid requests received and future levels of the Company’s common stock price, and would be affected by any settlement of the pending unclaimed property reviews referred to above. The Company’s common stock price affects the liability because the amount of cash payments under the program is based in part on the recent level of the stock price at the date valid requests are received. | ||||||||||||||||||||||||||||
The Company leases office space in Canada, France, Germany, Spain, the U.K., and the U.S. under operating leases which expire between July 31, 2014 and September 17, 2024. The following table summarizes the future minimum lease payments under these operating leases as of March 31, 2014 (in thousands): | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Operating leases | $ | 3,356 | $ | 4,853 | $ | 4,140 | $ | 3,657 | $ | 3,146 | $ | 12,610 | $ | 31,762 | ||||||||||||||
Local Deals and Getaways merchant payable included in accounts payable was $24.1 million and $27.2 million, as of March 31, 2014 and December 31, 2013, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
In determining the quarterly provisions for income taxes, the Company uses an estimated annual effective tax rate, which is generally based on our expected annual income and statutory tax rates in the U.S., Canada and U.K. For the three months ended March 31, 2014, the Company’s effective tax rate was 34.9%. For the three months ended March 31, 2013, the Company’s effective tax rate was 30.6% . | |
U.S. income and foreign withholding taxes have not been provided on undistributed earnings for certain non-U.S. subsidiaries. The undistributed earnings on a book basis for the non-U.S. subsidiaries as of March 31, 2014 are approximately $2.9 million. The Company intends to reinvest these earnings indefinitely in its operations outside the U.S. If the undistributed earnings are remitted to the U.S., these amounts would be taxable in the U.S. at the current federal and state tax rates net of foreign tax credits. Also, depending on the jurisdiction any distribution may be subject to withholding taxes at rates applicable for that jurisdiction. | |
The Company maintains liabilities for uncertain tax positions. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction in the overall income tax provision in the period that such determination is made. At March 31, 2014, the Company had approximately $9.3 million in total unrecognized tax benefits, consisting of unrecognized tax benefits of approximately $7.9 million which, if recognized, would favorably affect the Company’s effective income tax rate, and unrecognized tax benefits of approximately $1.4 million, which if recognized, would be recorded in discontinued operations. | |
The Company’s policy is to include interest and penalties related to unrecognized tax positions in income tax expense. As of March 31, 2014 and December 31, 2013, the Company had approximately $1.2 million and $1.1 million, respectively, in accrued interest and penalties related to uncertain tax positions. The Company is in various stages of multiple year examinations by federal taxing authorities. Although the timing of resolution and/or closure on audits is highly uncertain, it is reasonably possible that the balance of the gross unrecognized tax benefits related to the method of computing income taxes in certain jurisdiction and losses reported on certain income tax returns could significantly change in the next 12 months. These changes may occur through settlement with the taxing authorities or the expiration of the statute of limitations on the returns filed. The Company is unable to estimate the range of possible adjustments to the balance of the gross unrecognized tax benefits. | |
The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is subject to U.S. federal and certain state tax examinations for years after 2009 and is subject to California tax examinations for years after 2005. The Company's 2009 and 2010 federal income returns are currently under examination, including a review of the impact of the sale of Asia Pacific business segment in 2009. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Statement of Comprehensive Income [Abstract] | ' | ||||||||
Accumulated Other Comprehensive Income | ' | ||||||||
Accumulated Other Comprehensive Loss | |||||||||
The following table summarizes the changes in accumulated balances of other comprehensive loss (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | (530 | ) | $ | (737 | ) | |||
Other comprehensive income due to foreign currency transaction | (83 | ) | (1,217 | ) | |||||
Ending balance | $ | (613 | ) | (1,954 | ) | ||||
There were no amounts reclassified from accumulated other comprehensive income for the three months ended March 31, 2014 and 2013. Accumulated other comprehensive income consists of foreign currency translation gain or loss. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation | ' |
Stock-Based Compensation and Stock Options | |
In November 2009, the Company granted an executive stock options to purchase 300,000 shares of common stock with an exercise price of $14.97, of which 75,000 options vest and become exercisable annually starting July 1, 2011. The options expire in November 2019. As of March 31, 2014, 225,000 of these options were vested and 300,000 options were outstanding. Total stock-based compensation for the three months ended March 31, 2014 and 2013 related to this option grant was $187,000 for each period. As of March 31, 2014, there was approximately $187,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 0.3 years. The Company used a forfeiture rate of 0% as the Company does not have enough historical forfeiture data to estimate the forfeiture rate. To the extent the actual forfeiture rate is greater than what we have anticipated, stock-based compensation related to these options will be lower than our expectations. | |
In January 2012, the Company granted executives stock options to purchase 100,000 shares of common stock with an exercise price of $28.98, of which 25,000 options become exercisable annually starting January 23, 2013. The options expire in January 2022. As of March 31, 2014, 50,000 of these options were vested and 100,000 options were outstanding. Total stock-based compensation for the three months ended March 31, 2014 and 2013 related to this option grant was $119,000 for each period. As of March 31, 2014, there was approximately $854,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 1.8 years. The Company used a forfeiture rate of 0% as the Company does not have enough historical forfeiture data to estimate the forfeiture rate. To the extent the actual forfeiture rate is greater than what we have anticipated, stock-based compensation related to these options will be lower than our expectations. | |
In July 2013, the Company granted an executive stock options to purchase 75,000 shares of common stock with an exercise price of $29.58, of which 25,000 options become exercisable annually starting July 1, 2015. The options expire in July 2023. As of March 31, 2014, none of these options was vested and 75,000 options were outstanding. Total stock-based compensation for the three months ended March 31, 2014 related to this option grant was $89,000. As of March 31, 2014, there was approximately $1.2 million of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 3.4 years. The Company used a forfeiture rate of 0% as the Company does not have enough historical forfeiture data to estimate the forfeiture rate. To the extent the actual forfeiture rate is greater than what we have anticipated, stock-based compensation related to these options will be lower than our expectations. |
Stock_Repurchase_Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
Stock Repurchased Program | ' |
Stock Repurchase Program | |
The Company's repurchase programs assist in offsetting the impact of dilution from employee equity compensation and for capital allocation purposes. Management is allowed discretion in the execution of the repurchase program based upon market conditions and consideration of capital allocation. | |
In August 2011, the Company announced a share repurchase program authorizing the repurchase of up to 500,000 shares of common stock. During the year ended December 31, 2011, the Company repurchased 500,000 shares of common stock for an aggregate purchase price of $15.1 million and completed the share repurchases under this program. The 500,000 repurchased shares were recorded as part of treasury stock as of December 31, 2011 and were retired as of December 31, 2012. | |
In July 2012, the Company announced a stock repurchase program authorizing the repurchase of up to 1,000,000 shares of the Company’s outstanding common stock. During the three months ended September 30, 2012, the Company repurchased 161,000 shares of common stock for an aggregate purchase price of $3.6 million. The 161,000 shares repurchased were retired as of September 30, 2012. During the three months ended December 31, 2012, the Company repurchased 439,000 shares of common stock for an aggregate purchase price of $7.9 million. The 439,000 shares repurchased were recorded as part of treasury stock as of December 31, 2012. During the year ended December 31, 2013, the Company repurchased 371,000 shares of common stock for an aggregate purchase price of $7.8 million, which were recorded as part of treasury stock as of December 31, 2013. As of December 31, 2013, there were 29,000 shares remaining to be repurchased under this program. | |
In January 2014, the Company announced a stock repurchase program authorizing the repurchase of up to 500,000 shares of the Company’s outstanding common stock. During the three months ended March 31, 2014, the Company repurchased 244,000 shares of common stock for an aggregate purchase price of $5.6 million, which were recorded as part of treasury stock as of March 31, 2014. |
Reverse_Forward_Stock_Split
Reverse / Forward Stock Split | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
Reverse / Forward Stock Split | ' |
Reverse/Forward Stock Split | |
On June 11, 2013, a Special Committee of the Company’s Board of Directors, consisting of three independent directors, unanimously approved a reverse/forward stock split transaction (collectively referred to as the “reverse/forward split”), subject to shareholder approval. The reverse/forward split was intended to reduce the Company’s shareholder account administration costs by reducing the number of its shareholders. | |
On September 12, 2013, at the Company’s annual shareholders meeting, Travelzoo shareholders voted in favor of the reverse/forward split, with the transaction receiving the votes of both (A) a majority of the issued and outstanding shares of common stock and (B) a majority of the issued and outstanding shares of common stock that are not held or controlled, directly or indirectly, by directors or officers of the Company, including, without limitation, the shares held by Azzurro, our principal stockholder. | |
On November 6, 2013, the Special Committee approved the execution of the transaction after receiving an opinion from a financial advisor regarding the fairness of the transaction from a financial point of view to the Company's shareholders whose positions, individually considered, consisted of fewer than 25 shares, of the per-share consideration to be received by such shareholders in the reverse/forward split. The Special Committee received legal counsel from Young Conaway Stargatt & Taylor, LLP in connection with its review of the transaction. In addition, the Company received legal counsel from Skadden, Arps, Slate, Meagher & Flom LLP and Bryan Cave LLP in connection with the transaction. | |
On November 6, 2013, based upon the Special Committee’s approval of the transaction and the receipt of a fairness opinion from the financial advisor, the Company executed the shareholder approved reverse/forward split. | |
The reverse/forward split transaction consisted of a 1-for-25 reverse stock split of the Company's outstanding common stock, followed immediately by a 25-for-1 forward stock split. Shareholders who held less than 25 shares immediately prior to the reverse stock split received a right to cash payment based on and equal to their resulting fractional interest times the price of a share equal to the higher of (a) the trailing ten day average trading price of the Company’s common stock immediately preceding the consummation date of the reverse/forward split or (b) the average aggregate sales price received in the sale on the open market of the shares resulting from aggregation of the fractionalized interests. Shareholders that held 25 or more shares of common stock immediately before the reverse/forward split did not receive a right to cash payment; instead these shareholders continued to hold the same number of shares after completion of the reverse/forward split as they held immediately prior. A description of the terms and conditions of the reverse/forward split was set forth in the Company’s definitive Proxy Statement for the 2013 annual shareholders meeting filed with the SEC on July 25, 2013. | |
The reverse/forward split resulted in approximately 643,218 of the Company’s outstanding shares being fractionalized. Shareholders holding less than 25 shares of common stock immediately prior to the reverse split did not receive fractional shares in the reverse stock split; instead these shareholders had their shares converted into the right to receive a cash payment in exchange for and in proportion to the fractional share interests resulting from the reverse stock split. To fund the cash payment due to shareholders that held a right to receive cash from the transaction, the fractional share interests were aggregated by the Company’s transfer agent, who sold the aggregated shares in the open market following the execution of the transaction. | |
As of December 31, 2013, the Company completed the sales of the aggregated fractional shares from the reverse/forward split in the open market and the sales proceeds of $13.6 million were held by the Company’s transfer agent in anticipation of the payment to be made to the fractionalized shareholders and were included in Funds Held for Reverse/Forward Stock Split on the Company’s balance sheet. As of December 31, 2013, the total amount payable of $13.7 million to fractionalized shareholders as a result of the execution of the reverse/forward split was reflected as a Payable to Shareholders for Reverse/Forward Stock Split on the Company’s balance sheet. | |
For the three months ended March 31, 2014, the Company’s retained earnings includes a total adjustment of $346,000 related to the reverse/forward split, which includes transaction costs and the amount required to be funded by the Company in excess of the funds received from the open market sales of the aggregated fractional shares for the transaction. | |
During the three months ended March 31, 2014, the Company’s transfer agent issued checks amounting to $13.4 million to pay shareholders that held a right to cash in exchange for the fractional shares that were a result of the reverse/forward split. The Company's transfer agent intends to pay $212,000 due to the remaining shareholders that hold a right to cash after receiving the required documentation regarding their physical stock certificates. As of March 31, 2014, the sale proceeds of $212,000 are held by the Company’s transfer agent in anticipation of the payment to be made to the fractionalized shareholders and are included in Funds Held for Reverse/Forward Stock Split on the Company’s balance sheet. As of March 31, 2014, the total amount payable of $212,000 to fractionalized shareholders as a result of the execution of the reverse/forward split is reflected as a Payable to Shareholders for Reverse/Forward Stock Split on the Company’s balance sheet. |
Segment_Reporting_and_Signific
Segment Reporting and Significant Customer Information | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segments | ' | |||||||||||||||
Segment Reporting and Significant Customer Information | ||||||||||||||||
The Company manages its business geographically and has two reportable operating segments: North America and Europe. North America consists of the Company’s operations in Canada and the U.S. Europe consists of the Company’s operations in France, Germany, Spain, and the U.K. | ||||||||||||||||
Management relies on an internal management reporting process that provides revenue and segment operating income (loss) for making financial decisions and allocating resources. Management believes that segment revenues and operating income (loss) are appropriate measures of evaluating the operational performance of the Company’s segments. | ||||||||||||||||
The following is a summary of operating results and assets (in thousands) by business segment: | ||||||||||||||||
Three Months Ended March 31, 2014 | North | Europe | Elimination | Consolidated | ||||||||||||
America | ||||||||||||||||
Revenues from unaffiliated customers | $ | 26,353 | $ | 13,842 | $ | — | $ | 40,195 | ||||||||
Intersegment revenues | 221 | 12 | (233 | ) | — | |||||||||||
Total net revenues | 26,574 | 13,854 | (233 | ) | 40,195 | |||||||||||
Operating income | $ | 4,604 | $ | 2,393 | $ | — | $ | 6,997 | ||||||||
Three Months Ended March 31, 2013 | North | Europe | Elimination | Consolidated | ||||||||||||
America | ||||||||||||||||
Revenues from unaffiliated customers | $ | 29,911 | $ | 12,266 | $ | — | $ | 42,177 | ||||||||
Intersegment revenues | 262 | 108 | (370 | ) | — | |||||||||||
Total net revenues | 30,173 | 12,374 | (370 | ) | 42,177 | |||||||||||
Operating income | $ | 5,484 | $ | 2,552 | $ | — | $ | 8,036 | ||||||||
As of March 31, 2014 | North | Europe | Elimination | Consolidated | ||||||||||||
America | ||||||||||||||||
Long-lived assets | $ | 8,692 | $ | 1,962 | $ | — | $ | 10,654 | ||||||||
Total assets | $ | 77,470 | $ | 51,012 | $ | (31,239 | ) | $ | 97,243 | |||||||
As of December 31, 2013 | North | Europe | Elimination | Consolidated | ||||||||||||
America | ||||||||||||||||
Long-lived assets | $ | 6,572 | $ | 2,077 | $ | — | $ | 8,649 | ||||||||
Total assets | $ | 96,278 | $ | 49,668 | $ | (31,144 | ) | $ | 114,802 | |||||||
Revenue for each segment is recognized based on the customer location within a designated geographic region. Property and equipment are attributed to the geographic region in which the assets are located. | ||||||||||||||||
For the three months ended March 31, 2014 and 2013, the Company did not have any customers that accounted for 10% or more of revenue. As of March 31, 2014 and December 31, 2013, the Company did not have any customers that accounted for 10% or more of accounts receivable. | ||||||||||||||||
The following table sets forth the breakdown of revenues (in thousands) by type and segment. Travel revenue includes travel publications (Top 20, Website, Newsflash, Travelzoo Network) and Getaways vouchers. Search revenue includes SuperSearch and Fly.com. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings). | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
North America | ||||||||||||||||
Travel | $ | 17,229 | $ | 17,490 | ||||||||||||
Search | 3,854 | 5,703 | ||||||||||||||
Local | 5,270 | 6,718 | ||||||||||||||
Total North America revenues | $ | 26,353 | $ | 29,911 | ||||||||||||
Europe | ||||||||||||||||
Travel | $ | 11,193 | $ | 9,292 | ||||||||||||
Search | 979 | 870 | ||||||||||||||
Local | 1,670 | 2,104 | ||||||||||||||
Total Europe revenues | $ | 13,842 | $ | 12,266 | ||||||||||||
Consolidated | ||||||||||||||||
Travel | $ | 28,422 | $ | 26,782 | ||||||||||||
Search | 4,833 | 6,573 | ||||||||||||||
Local | 6,940 | 8,822 | ||||||||||||||
Total revenues | $ | 40,195 | $ | 42,177 | ||||||||||||
Revenue by geography is based on the billing address of the advertiser. Long-lived assets attributed to the U.S. and international geographies are based upon the country in which the asset is located or owned. | ||||||||||||||||
The following table sets forth revenue for individual countries that exceed 10% of total revenue (in thousands): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Revenue | ||||||||||||||||
United States | $ | 24,740 | $ | 27,846 | ||||||||||||
United Kingdom | 9,212 | 8,424 | ||||||||||||||
Rest of the world | 6,243 | 5,907 | ||||||||||||||
Total revenues | $ | 40,195 | $ | 42,177 | ||||||||||||
The following table sets forth long lived asset by geographic area (in thousands): | ||||||||||||||||
As of March 31, | As of December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
United States | $ | 8,672 | $ | 6,557 | ||||||||||||
Rest of the world | 1,982 | 2,092 | ||||||||||||||
Total long lived assets | $ | 10,654 | $ | 8,649 | ||||||||||||
Related_Party_Transaction
Related Party Transaction | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
Ralph Bartel, who founded Travelzoo and who is a Director of the Company is the sole beneficiary of the Ralph Bartel 2005 Trust, which is the controlling shareholder of Azzurro Capital Inc. As of March 31, 2014, Azzurro is the Company's largest stockholder, holding approximately 49.0% of the Company's outstanding shares. Azzurro currently holds a proxy given to it by Mr. Holger Bartel that provides it with a total of 50.4% of the voting power. | |
In 2009, the Company sold its Asia Pacific operating segment to Travelzoo (Asia) Limited and Travelzoo Japan K.K., subsidiaries of Azzurro Capital Inc. There is a reciprocal revenue-sharing and hosting agreement among the Azzurro entities operating the Travelzoo business in Asia Pacific and the Company related to cross-selling audiences and hosting and development services by the Company, which were entered into in connection with the sale of Asia Pacific business segment. The net fees generated by the Company under these agreements amounted to $156,000 and $295,000 for the three months ended March 31, 2014 and 2013, respectively. The Company’s receivables and payables from the Azzurro entities operating the Travelzoo business in Asia Pacific under these agreements were $976,000 and $561,000 as of March 31, 2014, and $760,000 and $501,000 as of December 31, 2013, respectively and were included in prepaid expenses and other current assets and accounts payable in the accompanying unaudited condensed consolidated balance sheets. In addition, as part of the sale of the Asia Pacific operating segment in 2009, the Company obtained an option, which expires in June 2020, to repurchase the Asia Pacific business pursuant to the terms of the option agreement. |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Basic and diluted net income (loss) per share | ' | |||||||
The following table sets forth the calculation of basic and diluted net income per share (in thousands, except per share amounts): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Basic net income per share: | ||||||||
Net income | $ | 4,638 | $ | 5,595 | ||||
Weighted average common shares | 14,880 | 15,362 | ||||||
Basic net income per share | $ | 0.31 | $ | 0.36 | ||||
Diluted net income per share: | ||||||||
Net income | $ | 4,638 | $ | 5,595 | ||||
Weighted average common shares | 14,880 | 15,362 | ||||||
Effect of dilutive securities: stock options | 90 | 9 | ||||||
Diluted weighted average common shares | 14,970 | 15,371 | ||||||
Diluted net income per share | $ | 0.31 | $ | 0.36 | ||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Presentation of fair value of financial assets using the inputs | ' | |||||||||||||||
The fair value of these financial assets was determined using the following inputs at March 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant | Significant | ||||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Balance at March 31, 2014 | ||||||||||||||||
Money market funds | $ | 223 | $ | 223 | $ | — | $ | — | ||||||||
Total | $ | 223 | $ | 223 | $ | — | $ | — | ||||||||
Balance at December 31, 2013 | ||||||||||||||||
Money market funds | $ | 733 | $ | 733 | $ | — | $ | — | ||||||||
Total | $ | 733 | $ | 733 | $ | — | $ | — | ||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Summary of intangible assets | ' | |||||||
The details of intangible assets consist of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Internet domain names and technology | $ | 2,819 | $ | 2,813 | ||||
Accumulated amortization | (2,470 | ) | (2,409 | ) | ||||
Total | $ | 349 | $ | 404 | ||||
Summary of future expected amortization expense related to intangible assets | ' | |||||||
Future expected amortization expense related to intangible assets at March 31, 2014 is as follows (in thousands): | ||||||||
Remainder of 2014 | $ | 178 | ||||||
2015 | 171 | |||||||
Total | $ | 349 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Statement of Comprehensive Income [Abstract] | ' | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||
The following table summarizes the changes in accumulated balances of other comprehensive loss (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | (530 | ) | $ | (737 | ) | |||
Other comprehensive income due to foreign currency transaction | (83 | ) | (1,217 | ) | |||||
Ending balance | $ | (613 | ) | (1,954 | ) | ||||
There were no amounts reclassified from accumulated other comprehensive income for the three months ended March 31, 2014 and 2013. Accumulated other comprehensive income consists of foreign currency translation gain or loss. |
Segment_Reporting_and_Signific1
Segment Reporting and Significant Customer Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Summary of operating results from continuing operations and assets by business segment | ' | |||||||||||||||
The following is a summary of operating results and assets (in thousands) by business segment: | ||||||||||||||||
Three Months Ended March 31, 2014 | North | Europe | Elimination | Consolidated | ||||||||||||
America | ||||||||||||||||
Revenues from unaffiliated customers | $ | 26,353 | $ | 13,842 | $ | — | $ | 40,195 | ||||||||
Intersegment revenues | 221 | 12 | (233 | ) | — | |||||||||||
Total net revenues | 26,574 | 13,854 | (233 | ) | 40,195 | |||||||||||
Operating income | $ | 4,604 | $ | 2,393 | $ | — | $ | 6,997 | ||||||||
Three Months Ended March 31, 2013 | North | Europe | Elimination | Consolidated | ||||||||||||
America | ||||||||||||||||
Revenues from unaffiliated customers | $ | 29,911 | $ | 12,266 | $ | — | $ | 42,177 | ||||||||
Intersegment revenues | 262 | 108 | (370 | ) | — | |||||||||||
Total net revenues | 30,173 | 12,374 | (370 | ) | 42,177 | |||||||||||
Operating income | $ | 5,484 | $ | 2,552 | $ | — | $ | 8,036 | ||||||||
As of March 31, 2014 | North | Europe | Elimination | Consolidated | ||||||||||||
America | ||||||||||||||||
Long-lived assets | $ | 8,692 | $ | 1,962 | $ | — | $ | 10,654 | ||||||||
Total assets | $ | 77,470 | $ | 51,012 | $ | (31,239 | ) | $ | 97,243 | |||||||
Revenue for each segment recognized based on customer location | ' | |||||||||||||||
As of March 31, 2014 | North | Europe | Elimination | Consolidated | ||||||||||||
America | ||||||||||||||||
Long-lived assets | $ | 8,692 | $ | 1,962 | $ | — | $ | 10,654 | ||||||||
Total assets | $ | 77,470 | $ | 51,012 | $ | (31,239 | ) | $ | 97,243 | |||||||
As of December 31, 2013 | North | Europe | Elimination | Consolidated | ||||||||||||
America | ||||||||||||||||
Long-lived assets | $ | 6,572 | $ | 2,077 | $ | — | $ | 8,649 | ||||||||
Total assets | $ | 96,278 | $ | 49,668 | $ | (31,144 | ) | $ | 114,802 | |||||||
Breakdown of revenues by type and segment | ' | |||||||||||||||
The following table sets forth the breakdown of revenues (in thousands) by type and segment. Travel revenue includes travel publications (Top 20, Website, Newsflash, Travelzoo Network) and Getaways vouchers. Search revenue includes SuperSearch and Fly.com. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings). | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
North America | ||||||||||||||||
Travel | $ | 17,229 | $ | 17,490 | ||||||||||||
Search | 3,854 | 5,703 | ||||||||||||||
Local | 5,270 | 6,718 | ||||||||||||||
Total North America revenues | $ | 26,353 | $ | 29,911 | ||||||||||||
Europe | ||||||||||||||||
Travel | $ | 11,193 | $ | 9,292 | ||||||||||||
Search | 979 | 870 | ||||||||||||||
Local | 1,670 | 2,104 | ||||||||||||||
Total Europe revenues | $ | 13,842 | $ | 12,266 | ||||||||||||
Consolidated | ||||||||||||||||
Travel | $ | 28,422 | $ | 26,782 | ||||||||||||
Search | 4,833 | 6,573 | ||||||||||||||
Local | 6,940 | 8,822 | ||||||||||||||
Total revenues | $ | 40,195 | $ | 42,177 | ||||||||||||
Revenue by geography is based on the billing address of the advertiser. Long-lived assets attributed to the U.S. and international geographies are based upon the country in which the asset is located or owned. | ||||||||||||||||
The following table sets forth revenue for individual countries that exceed 10% of total revenue (in thousands): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Revenue | ||||||||||||||||
United States | $ | 24,740 | $ | 27,846 | ||||||||||||
United Kingdom | 9,212 | 8,424 | ||||||||||||||
Rest of the world | 6,243 | 5,907 | ||||||||||||||
Total revenues | $ | 40,195 | $ | 42,177 | ||||||||||||
The following table sets forth long lived asset by geographic area (in thousands): | ||||||||||||||||
As of March 31, | As of December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
United States | $ | 8,672 | $ | 6,557 | ||||||||||||
Rest of the world | 1,982 | 2,092 | ||||||||||||||
Total long lived assets | $ | 10,654 | $ | 8,649 | ||||||||||||
The_Company_and_Basis_of_Prese1
The Company and Basis of Presentation (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||||
Apr. 27, 2011 | Apr. 12, 2011 | Oct. 31, 2013 | Mar. 31, 2012 | Apr. 30, 2002 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2001 | Dec. 31, 1998 | Dec. 31, 2013 | Apr. 25, 2004 | Apr. 24, 2004 | Apr. 30, 2002 | Mar. 31, 2014 | Oct. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
state | Subscriber | Netsurfer_Stockholders | Travel zoo.com corporation | Board of Directors Chairman | Liability For Unexchanged Promotional Shares [Member] | Liability For Unexchanged Promotional Shares [Member] | Liability For Unexchanged Promotional Shares [Member] | Unclaimed Property Review [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | ||||||||||
state | state | Unclaimed Property Review [Member] | Unclaimed Property Review [Member] | Unclaimed Property Review [Member] | |||||||||||||||||
Related Party Transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Shares Under Merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
The Company and Basis of Presentation (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of outstanding shares held by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.00% | ' | ' | ' | ' | ' | ' | ' |
Period for receiving shares under merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Charge related to unexchanged merger shares contingency | ' | ' | ' | $3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,000,000 | ' | ' | ' | $22,000,000 |
Total number of states that have raised claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35 | ' | ' | ' | ' | ' | ' |
Approximate number of shares of the Company claimed in the multi-state settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' |
Additional number of shares of the Company that may be claimed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' |
Charge during period for the unexchanged shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,000,000 | ' | ' | ' | ' | ' |
Voting Rights, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.40% | ' | ' | ' | ' | ' | ' | ' |
Payments for Legal Settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | 12,300,000 |
Loss Contingency, Claims Settled, Number | ' | ' | 35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35 | ' | ' | ' |
Loss Contingency, Pending Claims, Additional Number of Shares of Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 400,000 | ' | ' |
The Company and Basis of Presentation (Additional Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of subscribers | ' | ' | ' | ' | ' | 27,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Issued via Internet | ' | ' | ' | ' | ' | ' | ' | ' | 5,155,874 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Netsurfer Stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding shares of Silicon Channels Corporation to Travelzoo Inc. exchanged | ' | ' | ' | ' | ' | ' | ' | 8,129,273 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares acquired | ' | ' | ' | ' | ' | ' | ' | 2,158,349 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price per share of additional shares acquired | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Time of option exercised | ' | ' | ' | ' | ' | ' | ' | 'January 2009 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of Parent company outstanding | ' | ' | ' | ' | 11,295,874 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of Parent company exchanged for shares of Subsidiary company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,180,342 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares outstanding | ' | ' | ' | ' | ' | 14,747,000 | ' | ' | ' | 14,991,000 | 15,309,615 | 19,425,147 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock outstanding | ' | ' | ' | ' | ' | 14,746,954 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares identified as demandable | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payment to receive a complete release of claims | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum age of stockholders for issuance of shares | ' | ' | ' | ' | ' | '18 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge in general and administrative expenses | ' | ' | ' | ' | ' | $1,000 | $6,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Basic net income (loss) per share: | ' | ' |
Net income | $4,638 | $5,595 |
Weighted average common shares | 14,880 | 15,362 |
Basic net income (loss) per share (in dollars per share) | $0.31 | $0.36 |
Diluted net income (loss) per share: | ' | ' |
Net income | $4,638 | $5,595 |
Weighted average common shares | 14,880 | 15,362 |
Effect of dilutive securities: stock options | 90 | 9 |
Diluted weighted average common shares | 14,970 | 15,371 |
Diluted net income per share | $0.31 | $0.36 |
Net_Income_Per_Share_Details_T
Net Income Per Share (Details Textual) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Net Income (Loss) Per Share (Textual) [Abstract] | ' | ' |
Anti-dilutive shares not included in computation of net income (loss) per common share | 175,000 | 100,000 |
Financial_Instruments_Details_
Financial Instruments (Details Textual) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Financial Instruments (Additional Textual) [Abstract] | ' |
Maximum time for maturing highly liquid investments | '3 months |
Certificates of Deposit | ' |
Financial Instruments (Textual) [Abstract] | ' |
Restricted cash | 675 |
Deposits | ' |
Financial Instruments (Textual) [Abstract] | ' |
Restricted cash | 805 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Presentation of fair value of financial assets using the inputs | ' | ' |
Total financial assets | $223 | $733 |
Money market funds | ' | ' |
Presentation of fair value of financial assets using the inputs | ' | ' |
Total financial assets | 223 | 733 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Presentation of fair value of financial assets using the inputs | ' | ' |
Total financial assets | 223 | 733 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ' | ' |
Presentation of fair value of financial assets using the inputs | ' | ' |
Total financial assets | 223 | 733 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Presentation of fair value of financial assets using the inputs | ' | ' |
Total financial assets | ' | ' |
Significant Other Observable Inputs (Level 2) | Money market funds | ' | ' |
Presentation of fair value of financial assets using the inputs | ' | ' |
Total financial assets | ' | ' |
Significant Unobservable Inputs (Level 3) | ' | ' |
Presentation of fair value of financial assets using the inputs | ' | ' |
Total financial assets | ' | ' |
Significant Unobservable Inputs (Level 3) | Money market funds | ' | ' |
Presentation of fair value of financial assets using the inputs | ' | ' |
Total financial assets | ' | ' |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of intangible assets | ' | ' |
Internet domain names and technology | $2,819 | $2,813 |
Accumulated amortization | -2,470 | -2,409 |
Total | $349 | $404 |
Intangible_Assets_Details_1
Intangible Assets (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of future expected amortization expense related to intangible assets | ' | ' |
Remainder of 2014 | $178 | ' |
2015 | 171 | ' |
Total | $349 | $404 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Intangible Assets (Textual) [Abstract] | ' | ' |
Amortization expense | $61 | $157 |
Minimum | ' | ' |
Intangible Assets (Textual) [Abstract] | ' | ' |
Intangible assets, useful life | '3 years | ' |
Maximum | ' | ' |
Intangible Assets (Textual) [Abstract] | ' | ' |
Intangible assets, useful life | '5 years | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
Jan. 27, 2012 | Apr. 27, 2011 | Apr. 12, 2011 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | |
Liability For Unexchanged Promotional Shares [Member] | Liability For Unexchanged Promotional Shares [Member] | Liability For Unexchanged Promotional Shares [Member] | Pending Litigation [Member] | Pending Litigation [Member] | ||||||||
state | Unclaimed Property Review [Member] | Unclaimed Property Review [Member] | ||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Claims for breaches of fiduciary duty and unjust enrichment | $3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share identified as demandable | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payment to receive a complete release of claims | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge related to unexchanged merger shares contingency | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | 3,000,000 | ' | 22,000,000 |
Loss Contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total number of states that have raised claims | ' | ' | ' | ' | ' | ' | ' | 35 | ' | ' | ' | ' |
Approximate number of shares of the Company claimed in the multi-state settlement | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' |
Additional number of shares of the Company that may be claimed | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' |
Charge during period for the unexchanged shares | ' | ' | ' | ' | ' | ' | ' | ' | 22,000,000 | ' | ' | ' |
Payments for Legal Settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | 12,300,000 |
Charge in general and administrative expenses | ' | ' | ' | ' | 1,000 | 6,000 | ' | ' | ' | ' | ' | ' |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments under operating leases | ' | ' | ' | ' | 31,762,000 | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments under operating leases due in 2014 | ' | ' | ' | ' | 3,356,000 | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments under operating leases due in 2015 | ' | ' | ' | ' | 4,853,000 | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments under operating leases due in 2016 | ' | ' | ' | ' | 4,140,000 | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments under operating leases due in 2017 | ' | ' | ' | ' | 3,657,000 | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments under operating leases due in 2018 | ' | ' | ' | ' | 3,146,000 | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments under operating leases due Thereafter | ' | ' | ' | ' | 12,610,000 | ' | ' | ' | ' | ' | ' | ' |
Local deals and getaway merchant payables | ' | ' | ' | ' | $24,100,000 | ' | $27,200,000 | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Income Taxes (Textual) [Abstract] | ' | ' | ' |
Effective tax rate | 34.90% | 30.60% | ' |
Undistributed earnings on a book basis for the non-U.S. subsidiaries | $2.90 | ' | ' |
Total unrecognized tax benefits | 9.3 | ' | ' |
Unrecognized tax benefits affecting the company's effective income tax rate | 7.9 | ' | ' |
Unrecognized tax benefits to be recorded in discontinued operations | 1.4 | ' | ' |
Accrued interest and penalties | $1.20 | ' | $1.10 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' |
Beginning balance | ($530,000) | ' |
Ending balance | -613,000 | ' |
Amounts reclassified from Accumulated Other Comprehensive Income | 0 | 0 |
Foreign Currency Translation | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' |
Beginning balance | -530,000 | -737,000 |
Other comprehensive income due to foreign currency transaction | -83,000 | -1,217,000 |
Ending balance | ($613,000) | ($1,954,000) |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (Stock Options [Member], USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2014 | Nov. 30, 2009 | Mar. 31, 2014 | Mar. 31, 2013 | Jan. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Jul. 31, 2013 | Mar. 31, 2014 | |
November 2009 Plan | November 2009 Plan | November 2009 Plan | January 2012 Plan | January 2012 Plan | January 2012 Plan | July 2013 Plan | July 2013 Plan | ||
Stock-Based Compensation (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee options granted to purchase shares of common stock | ' | 300,000 | ' | ' | 100,000 | ' | ' | 75,000 | ' |
Exercise price of employee option shares of common stock | ' | $14.97 | ' | ' | $28.98 | ' | ' | $29.58 | ' |
Options vest and become exercisable annually | ' | 75,000 | ' | ' | 25,000 | ' | ' | 25,000 | ' |
Options Vested | ' | ' | 225,000 | ' | ' | 50,000 | ' | ' | 0 |
Options outstanding | ' | ' | 300,000 | ' | ' | 100,000 | ' | ' | 75,000 |
Total stock-based compensation | ' | ' | $187,000 | $187,000 | ' | $119,000 | $119,000 | ' | $89,000 |
Unrecognized stock-based compensation expense | ' | ' | $187,000 | ' | ' | $854,000 | ' | ' | $1,200,000 |
Expected duration for recognition of stock based compensation expense | ' | ' | '0 years 3 months | ' | ' | '1 year 10 months | ' | ' | '3 years 5 months |
Share based payment award, options, valuation assumption, forfeiture rate | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Repurchase_Program_Detai
Stock Repurchase Program (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2013 | Jan. 31, 2014 | Jul. 31, 2012 | Aug. 30, 2011 |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Shares | 244,000 | 439,000 | 161,000 | 500,000 | 371,000 | ' | ' | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | ' | ' | ' | ' | ' | 500,000 | 1,000,000 | 500,000 |
Stock Repurchased During Period, Value | $5.60 | $7.90 | $3.60 | $15.10 | $7.80 | ' | ' | ' |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | ' | ' | ' | ' | 29,000 | ' | ' | ' |
Treasury Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Shares | ' | ' | ' | 500,000 | ' | ' | ' | ' |
Reverse_Forward_Stock_Split_De
Reverse / Forward Stock Split (Details) (USD $) | 0 Months Ended | 2 Months Ended | 3 Months Ended | |
Nov. 06, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Feb. 06, 2014 | |
Class of Stock [Line Items] | ' | ' | ' | ' |
Stock Issued During Period, Shares, Reverse Stock Splits | 643,218 | ' | ' | ' |
Proceeds from Issuance of Common Stock | ' | $13,600,000 | ' | ' |
Reserve for unexchanged promotional shares | ' | 13,668,000 | 212,000 | 13,400,000 |
Adjustments to Additional Paid in Capital, Stock Split | ' | ' | $346,000 | ' |
Reverse Stock Split [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 0.04 | ' | ' | ' |
Forward Stock Split [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 | ' | ' | ' |
Segment_Reporting_and_Signific2
Segment Reporting and Significant Customer Information - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Segments | |||
Segments (Textual) [Abstract] | ' | ' | ' |
Number of reportable operating segments | 2 | ' | ' |
Percentage of revenue | 10.00% | 10.00% | ' |
Percentage of accounts receivable | 10.00% | ' | 10.00% |
Segment_Reporting_and_Signific3
Segment Reporting and Significant Customer Information - Operating Results from Continuing Operations and Assets by Business Segment (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Summary of operating results from continuing operations and assets by business segment | ' | ' |
Revenues | $40,195 | $42,177 |
Operating income | 6,997 | 8,036 |
Europe | ' | ' |
Summary of operating results from continuing operations and assets by business segment | ' | ' |
Revenues | 13,842 | 12,266 |
North America [Member] | ' | ' |
Summary of operating results from continuing operations and assets by business segment | ' | ' |
Revenues | 26,353 | 29,911 |
Elimination | ' | ' |
Summary of operating results from continuing operations and assets by business segment | ' | ' |
Revenues | -233 | -370 |
Operating income | 0 | 0 |
Elimination | Europe | ' | ' |
Summary of operating results from continuing operations and assets by business segment | ' | ' |
Revenues | 12 | 108 |
Elimination | North America [Member] | ' | ' |
Summary of operating results from continuing operations and assets by business segment | ' | ' |
Revenues | 221 | 262 |
Operating Segments [Member] | Europe | ' | ' |
Summary of operating results from continuing operations and assets by business segment | ' | ' |
Revenues | 13,854 | 12,374 |
Operating income | 2,393 | 2,552 |
Operating Segments [Member] | North America [Member] | ' | ' |
Summary of operating results from continuing operations and assets by business segment | ' | ' |
Revenues | 26,574 | 30,173 |
Operating income | $4,604 | $5,484 |
Segment_Reporting_and_Signific4
Segment Reporting and Significant Customer Information - Assets by Segment (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenue for each segment recognized based on customer location | ' | ' |
Long-lived assets | $10,654 | $8,649 |
Total assets | 97,243 | 114,802 |
Operating Segments [Member] | North America [Member] | ' | ' |
Revenue for each segment recognized based on customer location | ' | ' |
Long-lived assets | 8,692 | 6,572 |
Total assets | 77,470 | 96,278 |
Operating Segments [Member] | Europe [Member] | ' | ' |
Revenue for each segment recognized based on customer location | ' | ' |
Long-lived assets | 1,962 | 2,077 |
Total assets | 51,012 | 49,668 |
Elimination | ' | ' |
Revenue for each segment recognized based on customer location | ' | ' |
Long-lived assets | 0 | 0 |
Total assets | ($31,239) | ($31,144) |
Segment_Reporting_and_Signific5
Segment Reporting and Significant Customer Information - Revenue by Type and Segment (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Breakdown of revenues by type and segment | ' | ' |
Revenues | $40,195 | $42,177 |
Travel | ' | ' |
Breakdown of revenues by type and segment | ' | ' |
Revenues | 28,422 | 26,782 |
Search | ' | ' |
Breakdown of revenues by type and segment | ' | ' |
Revenues | 4,833 | 6,573 |
Local | ' | ' |
Breakdown of revenues by type and segment | ' | ' |
Revenues | 6,940 | 8,822 |
North America [Member] | ' | ' |
Breakdown of revenues by type and segment | ' | ' |
Revenues | 26,353 | 29,911 |
North America [Member] | Travel | ' | ' |
Breakdown of revenues by type and segment | ' | ' |
Revenues | 17,229 | 17,490 |
North America [Member] | Search | ' | ' |
Breakdown of revenues by type and segment | ' | ' |
Revenues | 3,854 | 5,703 |
North America [Member] | Local | ' | ' |
Breakdown of revenues by type and segment | ' | ' |
Revenues | 5,270 | 6,718 |
Europe [Member] | ' | ' |
Breakdown of revenues by type and segment | ' | ' |
Revenues | 13,842 | 12,266 |
Europe [Member] | Travel | ' | ' |
Breakdown of revenues by type and segment | ' | ' |
Revenues | 11,193 | 9,292 |
Europe [Member] | Search | ' | ' |
Breakdown of revenues by type and segment | ' | ' |
Revenues | 979 | 870 |
Europe [Member] | Local | ' | ' |
Breakdown of revenues by type and segment | ' | ' |
Revenues | $1,670 | $2,104 |
Segment_Reporting_and_Signific6
Segment Reporting and Significant Customer Information - Revenue for Individual Countries that Exceed 10% of Total Revenue (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue, Major Customer [Line Items] | ' | ' |
Sales Revenue, Services, Net | $40,195 | $42,177 |
UNITED STATES | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Sales Revenue, Services, Net | 24,740 | 27,846 |
UNITED KINGDOM | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Sales Revenue, Services, Net | 9,212 | 8,424 |
Rest of The World [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Sales Revenue, Services, Net | $6,243 | $5,907 |
Segment_Reporting_and_Signific7
Segment Reporting and Significant Customer Information - Long Lives Assets by Geographic Area (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets | ' | ' |
Long-Lived Assets | $10,654 | $8,649 |
UNITED STATES | ' | ' |
Revenues from External Customers and Long-Lived Assets | ' | ' |
Long-Lived Assets | 8,672 | 6,557 |
Rest of The World [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets | ' | ' |
Long-Lived Assets | $1,982 | $2,092 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Board of Directors Chairman [Member] | ' | ' | ' |
Related Party Transaction | ' | ' | ' |
Percent of outstanding shares held by related party | 49.00% | ' | ' |
Voting Rights, Percentage | 50.40% | ' | ' |
Travelzoo (Asia) Limited and Travelzoo Japan K.K. [Member] | ' | ' | ' |
Related Party Transaction | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | $156,000 | $295,000 | ' |
Company receivables part of prepaid expenses and other current assets | 976,000 | ' | 760,000 |
Accounts Payable, Related Parties, Current | $561,000 | ' | $501,000 |