Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 25, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Travelzoo | |
Entity Central Index Key | 0001133311 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 11,865,402 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 19,946 | $ 18,017 |
Accounts receivable, less allowance for doubtful accounts of $792 and $692 as of March 31, 2019 and December 31, 2018, respectively | 15,579 | 12,646 |
Income tax receivable | 0 | 389 |
Deposits | 88 | 167 |
Prepaid expenses and other | 1,607 | 1,947 |
Total current assets | 37,220 | 33,166 |
Deposits and other | 689 | 685 |
Deferred tax assets | 1,284 | 1,645 |
Restricted cash | 1,325 | 1,444 |
Investment in WeekenGO | 2,483 | 2,694 |
Operating lease right-of-use assets | 14,264 | |
Property and equipment, net | 3,604 | 3,790 |
Total assets | 60,869 | 43,424 |
Current liabilities: | ||
Accounts payable | 16,180 | 17,129 |
Accrued expenses and other | 9,067 | 7,853 |
Deferred revenue | 1,199 | 1,339 |
Operating lease liabilities | 5,508 | |
Income tax payable | 1,519 | 489 |
Total current liabilities | 33,473 | 26,810 |
Long-term tax liabilities | 425 | 418 |
Long-term operating lease liabilities | 11,251 | |
Long-term deferred rent and other | 83 | 2,137 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value (40,000 shares authorized; 11,865 and 11,962 shares issued and outstanding as of March 31, 2019 and December 31, 2018) | 119 | 120 |
Additional paid in capital | 0 | 0 |
Retained earnings | 19,821 | 18,153 |
Accumulated other comprehensive loss | (4,303) | (4,214) |
Total stockholders’ equity | 15,637 | 14,059 |
Total liabilities and stockholders’ equity | $ 60,869 | $ 43,424 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 792 | $ 692 |
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) | 11,865,000 | 11,962,000 |
Common stock, shares outstanding (in shares) | 11,865,000 | 11,962,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 30,825 | $ 30,884 |
Cost of revenues | 2,946 | 3,385 |
Gross profit | 27,879 | 27,499 |
Operating expenses: | ||
Sales and marketing | 15,606 | 15,542 |
Product development | 1,703 | 2,511 |
General and administrative | 5,599 | 5,789 |
Total operating expenses | 22,908 | 23,842 |
Income from operations | 4,971 | 3,657 |
Other income (expense), net | (99) | 161 |
Income before income taxes | 4,872 | 3,818 |
Income tax expense | 1,752 | 1,316 |
Net income | $ 3,120 | $ 2,502 |
Net income per share - basic (in dollars per share) | $ 0.26 | $ 0.20 |
Net income per share - diluted (in dollars per share) | $ 0.26 | $ 0.20 |
Shares used in computing basic net income (loss) per share (in shares) | 11,914 | 12,462 |
Shares used in computing diluted net income (loss) per share (in shares) | 12,224 | 12,462 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3,120 | $ 2,502 |
Other comprehensive loss: | ||
Foreign currency translation adjustment | (89) | (183) |
Total comprehensive income | $ 3,031 | $ 2,319 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 3,120 | $ 2,502 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 330 | 384 |
Stock-based compensation | 163 | 173 |
Deferred income tax | 341 | (110) |
Loss on equity investment in WeekenGO | 159 | 0 |
Net foreign currency effect | (21) | (171) |
Other | 77 | (83) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,980) | (997) |
Income tax receivable | 389 | 428 |
Prepaid expenses and other | 425 | (10) |
Accounts payable | (1,101) | (3,185) |
Accrued expenses and other | 1,587 | 1,024 |
Income tax payable | 988 | 217 |
Other liabilities | (71) | 7 |
Net cash provided by operating activities | 3,406 | 179 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (131) | (65) |
Net cash used in investing activities | (131) | (65) |
Cash flows from financing activities: | ||
Repurchase of common stock | (1,591) | 0 |
Taxes paid for net share settlement of equity awards | (26) | 0 |
Net cash used in financing activities | (1,617) | 0 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 152 | 456 |
Net increase in cash, cash equivalents and restricted cash | 1,810 | 570 |
Cash, cash equivalents and restricted cash at beginning of period | 19,461 | 24,001 |
Cash, cash equivalents and restricted cash at end of period | 21,271 | 24,571 |
Supplemental disclosure of cash flow information: | ||
Cash paid (refunded) for income taxes, net | (60) | $ 779 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 1,805 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows | $ 1,277 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2017 | 12,462 | ||||
Beginning balance at Dec. 31, 2017 | $ 13,078 | $ 125 | $ 16,550 | $ (3,597) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 173 | $ 173 | |||
Foreign currency translation adjustment | (183) | (183) | |||
Net income | 2,502 | 2,502 | |||
Ending balance (in shares) at Mar. 31, 2018 | 12,462 | ||||
Ending balance at Mar. 31, 2018 | 16,884 | $ 125 | 173 | 20,366 | (3,780) |
Beginning balance (in shares) at Dec. 31, 2018 | 11,962 | ||||
Beginning balance at Dec. 31, 2018 | 14,059 | $ 120 | 0 | 18,153 | (4,214) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 163 | 163 | |||
Repurchase and retirement of common stock, net (in shares) | (100) | ||||
Repurchase and retirement of common stock | (1,590) | $ (1) | (138) | (1,451) | |
Taxes paid for net share settlement of equity awards (in shares) | 3 | ||||
Taxes paid for net share settlement of equity awards | (26) | (26) | |||
Foreign currency translation adjustment | (89) | (89) | |||
Net income | 3,120 | 3,120 | |||
Ending balance (in shares) at Mar. 31, 2019 | 11,865 | ||||
Ending balance at Mar. 31, 2019 | $ 15,637 | $ 119 | $ (1) | $ 19,822 | $ (4,303) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) The Company and Basis of Presentation Travelzoo® provides our members insider deals and one-of-a-kind experiences personally reviewed by one of our deal experts around the globe. With more than 25 offices worldwide, we have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. For over 15 years we have worked in partnership with top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals. Travelzoo's revenues are generated primarily from advertising fees. Our publications and products include the Travelzoo website, the Travelzoo iPhone and Android apps, the Travelzoo Top 20 e-mail newsletter, the Newsflash e-mail alert service, and the Travelzoo Network , a network of third-party websites that list travel deals published by Travelzoo. Our Travelzoo website includes Local Deals and Getaway listings that allow our members 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. Ralph Bartel, who founded Travelzoo (the "Company") 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. ("Azzurro"). As of March 31, 2019 , Azzurro is the Company's largest stockholder, holding approximately 50.1% of the Company's outstanding shares. 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 state fairly the financial position of the Company and its results of operations and cash flows. These unaudited 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, 2018, included in the Company’s Form 10-K filed with the SEC on March 11, 2019. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Investments in entities where the Company does not have control, but does have significant influence, are accounted for as equity method investments. In April 2018, Travelzoo entered into an agreement with WeekenGO, a start-up company in Germany. WeekenGO uses new technology to promote vacation packages. Travelzoo invested $ 3.0 million in WeekenGO for a 25% ownership interest. The Company accounts for this private company investment using the equity method of accounting by recording its share of the results of WeekenGO in Other income (expense), net on a one-quarter lag basis. In accounting for the investment, the Company allocated $1.0 million of its purchase price to tangible assets and allocated approximately $ 485,000 of the purchase to technology-related intangible assets to be amortized over a three -year life. The remaining $ 1.5 million of the purchase price was allocated to goodwill. During the three months ended March 31, 2019 , the Company recorded $ 210,000 for its share of WeekenGO losses, amortization of basis differences and currency translation adjustment. This equity method investment is reported as a long-term investment on the Company's condensed consolidated balance sheets. In April 2019, the Company invested an additional $673,000 in WeekenGO and increased the Company's ownership interest to 26.6% . WeekenGO signed a $ 2.1 million insertion order for advertising with Travelzoo in April 2018. The Company's advertising services provided to WeekenGO in the three months ended March 31, 2019 were $ 555,000 . The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other future period, and the Company makes no representations related thereto. (b) Recent Accounting Pronouncements Not Yet Adopted In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15, "Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract." The new guidance required a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. The guidance is effective for calendar-year public business entities in 2020. For all other calendar-year entities, it is effective for annual periods beginning in 2021 and interim periods in 2022. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. (c) Recently Adopted Accounting Pronouncements In February 2016, the FASB issued an ASU 2016-02, "Leases," codified in Accounting Standard Codification 842 ("ASC 842"), which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability on its balance sheet. The Company adopted ASC 842 on January 1, 2019, using the alternative modified transition method with no restatement of prior periods or cumulative adjustment to retained earnings. Upon adoption, the Company elected the package of transition practical expedients: (i) not to reassess prior conclusions related to whether any expired or existing contracts are or contain leases; (ii) not to reassess the lease classification for any expired or existing leases; (iii) not to reassess initial direct costs for existing leases; and (iv) not to reassess certain land easements. Upon adoption of the standard, the Company recognized an operating lease right-of-use assets of approximately $13.4 million and a corresponding operating lease liability of approximately $16.0 million , which includes reclassifying existing deferred rent liability of $2.6 million to operating lease right-of-use assets. (d) Significant Accounting Policies Below are the significant accounting policies as a result of the recently adopted accounting pronouncements. For a comprehensive description of our accounting policies, refer to our Annual Report on Form 10-K for the year ended December 31, 2018. Leases The Company determines if an arrangement contains a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease payments used to determine the operating lease assets may include lease incentives and stated rent increases. The Company does not include options to extend or terminate until it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. The Company elected not to recognize leases with an initial term of 12 months or less on its unaudited condensed consolidated balance sheets. The Company’s leases are reflected in operating lease ROU assets, operating lease liabilities and long-term operating lease liabilities in our unaudited condensed consolidated balance sheets. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company also has a real estate lease agreement which is subleased to a third party. The Company recognizes sublease income in Other income (expense), net on a straight-line basis over the lease term in its condensed consolidated statements of income. Cash, Cash Equivalents and Restricted Cash Restricted cash includes cash and cash equivalents that is restricted through legal contracts, regulations or our intention to use the cash for a specific purpose. Our restricted cash primarily relates to refundable deposits and funds held in escrow. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets to the total amounts shown in the unaudited condensed consolidated statements of cash flows: March 31, December 31, 2019 2018 Cash and cash equivalents $ 19,946 $ 18,017 Restricted cash 1,325 1,444 Total cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows $ 21,271 $ 19,461 The Company’s restricted cash was included in noncurrent assets as of March 31, 2019 and December 31, 2018. Revenue Recognition The Company recognizes revenues when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company generates revenues primarily by delivering advertising on the Travelzoo website, in the Top 20 email newsletter, in Newsflash and from the Travelzoo Network. The Company also generates transaction-based revenues from the sale of vouchers through our Local Deals and Getaway e-mail alert services and providing hotel bookings. The Company's disaggregated revenues are included in "Note 8: Segment Reporting and Significant Customer Information". For fixed-fee website advertising, the Company recognizes revenues ratably over the contracted placement period. For Top 20 email newsletter and other email products, the Company recognizes revenues when the emails are delivered to its members. The Company offers advertising on a cost-per-click basis, which means that an advertiser pays the Company only when a user clicks on an ad on Travelzoo properties or Travelzoo Network members’ properties. For these customers, the Company recognizes revenues each time a user clicks on the ad. The Company also offers advertising on other bases, such as cost-per-impression, which means that an advertiser pays the Company based on the number of times their advertisement is displayed on Travelzoo properties, email advertisements, Travelzoo Network properties, or social media properties. For these customers, the Company recognizes revenues each time an ad is displayed or email delivered. For transaction based revenues, including products such as Local Deals, Getaway and hotel platform, the Company evaluates whether it is the principal (i.e., report revenue on a gross basis) versus an agent (i.e., report revenue on a net basis). The Company reports transaction revenue on a net basis because the supplier is primarily responsible for providing the underlying service and we do not control the service provided by the supplier prior to its transfer to the customer. For Local Deals and Getaway products, the Company earns a fee for acting as an agent for the sale of vouchers that can be redeemed for services with third-party merchants. Revenues are presented net of the amounts due to the third-party merchants for fulfilling the underlying services. Certain merchant contracts allow the Company to retain the proceeds from unredeemed vouchers. With these contracts, the Company estimates the value of vouchers that will ultimately not be redeemed and records the estimate in the same period as the voucher sale. Commission revenue related to our hotel platform is recognized ratably over the period of guest stay, net of an allowance for cancellations based upon historical patterns. For arrangements for booking non-cancelable reservations where the Company’s performance obligation is deemed to be the successful booking of a hotel reservation, we record revenue for the commissions upon completion of the hotel booking. The Company’s contracts with customers may include multiple performance obligations in which the Company allocates revenues to each performance obligation based on its standalone selling price. The Company determines standalone selling price based on its overall pricing objectives, taking into consideration the type of services, geographical region of the customers, normal rate card pricing and customary discounts. Standalone selling price is generally determined based on the prices charged to customers when the product is sold separately. The Company relies upon the following practical expedients and exemptions allowed for in the ASC 606. The Company expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded in sales and marketing expenses. In addition, the Company does not disclose the value of unsatisfied performance obligations for (a) contracts with an original expected length of one year or less and (b) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services performed. Deferred revenue primarily consists of customer prepayments and undelivered performance obligations related to the Company’s contracts with multiple performance obligations. At December 31, 2018 , $1.3 million was recorded as deferred revenue, of which $930,000 was recognized as revenue during the quarter ended March 31, 2019 . |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income 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, 2019 2018 Numerator: Net income $ 3,120 $ 2,502 Denominator: Weighted average common shares—basic 11,914 12,462 Effect of dilutive securities: stock options 310 — Weighted average common shares—diluted 12,224 12,462 Net income per share—basic $ 0.26 $ 0.20 Net income per share—diluted $ 0.26 $ 0.20 For the three months ended March 31, 2019 and March 31, 2018 , options to purchase 150,000 and 950,000 shares of common stock were not included in the computation of diluted net income per share because the effect would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company was formed as a result of a combination and merger of entities founded by the Company’s principal stockholder, Ralph Bartel. In 2002, Travelzoo.com Corporation was merged into Travelzoo. 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 in exchange for each share of common stock of Travelzoo.com Corporation. In 2004, two years following the effective date of the merger, certain promotional shares remained unexchanged. As the right to exchange these promotional shares expired, no additional shares were reserved for issuance. Thereafter, the Company began to offer a voluntary cash program for those who established that they had satisfied certain prerequisite qualifications for Netsurfer promotional shares as further described below. During 2010 through 2014, the Company became subject to unclaimed property audits of various states in the United States related to the above unexchanged promotional shares and completed settlements with all states. Although the Company has settled the unclaimed property claims with all states, the Company may still receive inquiries from certain potential Netsurfer promotional stockholders that had not provided their state of residence to the Company by April 25, 2004. Therefore, the Company is continuing its voluntary program under which it makes cash payments to individuals related to the promotional shares for individuals whose residence was unknown by the Company and who establish that they satisfy the original conditions required for them to receive shares of Travelzoo.com Corporation, and who failed to submit requests to convert their shares into shares of Travelzoo within the required time period. This voluntary program is not available for individuals whose promotional shares have been escheated to a state by the Company, except those individuals for which their residence was unknown to the Company. The Company did not make any payments for the three months ended March 31, 2019 and 2018 . The total cost of this program cannot be reliably estimated because it is based on the ultimate number of valid requests received and future levels of the Company’s common stock price. 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 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 order to receive payment under this voluntary program, a person is required to establish that such person validly held shares in Travelzoo.com Corporation. The Company has operating leases. Refer to Note 9 for contractual commitments as of March 31, 2019 . Local Deals and Getaway merchant payables included in accounts payable were $11.2 million and $11.8 million , as of March 31, 2019 and December 31, 2018 , respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
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, Japan, Hong Kong, and the U.K. For the three months ended March 31, 2019 and 2018 , the Company's effective tax rate was 36% and 34% , respectively. The Company's effective tax rate increased for the three months ended March 31, 2019 from the corresponding three months ended March 31, 2018 , due primarily to the geographic mix of income from continuing operations, including a relative increase in foreign losses not benefited. The Tax Act created a new requirement that certain income such as Global Intangible Low-Taxed Income (“GILTI”) earned by a controlled foreign corporation (“CFC”) must be included in the gross income of the CFC U.S. shareholder. During the three months ended March 31, 2019 , the Company provided for the impact in the calculation of the annual effective tax rate. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year the tax is incurred. We have elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred. As of March 31, 2019 , the Company is permanently reinvested in certain of its non-U.S. subsidiaries and does not have a deferred tax liability related to its undistributed foreign earnings. The estimated amount of the unrecognized deferred tax liability attributed to future withholding taxes on dividend distributions of undistributed earnings for certain non-U.S. subsidiaries, which the Company intends to reinvest the related earnings indefinitely in its operations outside the U.S., is approximately $440,000 . The Company maintains liabilities for uncertain tax positions. At March 31, 2019 , the Company had approximately $213,000 in total unrecognized tax benefits, which if recognized, would favorably affect the Company’s effective income tax rate. The Company’s policy is to include interest and penalties related to unrecognized tax positions in income tax expense. 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, 2019 and December 31, 2018 , the Company had approximately $218,000 and $212,000 in accrued interest, respectively. 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 certain years after 2013 and is subject to California tax examinations for years after 2007. The material foreign jurisdictions where the Company is subject to potential examinations by tax authorities are the France, Germany, Spain and United Kingdom for tax years after 2011. We do not know what our income taxes will be in future periods. There may be fluctuations that have a material impact on our results of operations. Our income taxes are dependent on numerous factors such as the geographic mix of our taxable income, federal and state and foreign country tax law and regulations and changes thereto, the determination of whether valuation allowances for certain tax assets are required or not, audits of prior years' tax returns resulting in adjustments, resolution of uncertain tax positions and different treatment for certain items for tax versus books. We expect fluctuations in our income taxes from year to year and from quarter to quarter. Some of the fluctuations may be significant and have a material impact on our results of operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss (in thousands): Three Months Ended March 31, 2019 2018 Beginning balance $ (4,214 ) $ (3,597 ) Other comprehensive loss due to foreign currency translation, net of tax (89 ) (183 ) Ending balance $ (4,303 ) $ (3,780 ) There were no amounts reclassified from accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018 . |
Stock-Based Compensation and St
Stock-Based Compensation and Stock Options | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Stock Options | Stock-Based Compensation and Stock Options The Company accounts for its employee stock options under the fair value method, which requires stock-based compensation to be estimated using the fair value on the date of grant using an option-pricing model. The value of the portion of the award that is expected to vest is recognized on a straight-line basis as expense over the related employees’ requisite service periods in the Company’s condensed consolidated statements of operations. In January 2012, the Company granted certain executives stock options to purchase 100,000 shares of common stock with an exercise price of $28.98 , of which 25,000 options became exercisable annually starting January 23, 2013. The options expire in January 2022. During 2014, 25,000 options were canceled and 25,000 options were forfeited upon the departure of an executive. During the three months ended March 31, 2019 , the remaining 50,000 options were canceled upon the departure of an executive. Stock-based compensation related to these options was fully expensed. In September 2015, the Company granted an executive stock options to purchase 400,000 shares of common stock with an exercise price of $8.07 , of which 50,000 options became exercisable quarterly starting March 31, 2016. The options expire in September 2025. Stock-based compensation related to these options was fully expensed. As of March 31, 2019 , 400,000 options were vested and outstanding. In March 2016, the Company granted certain executives stock options to purchase 150,000 shares of common stock with an exercise price of $8.55 , of which 37,500 options vest and become exercisable annually starting on March 7, 2017. The options expire in March 2026. In 2017, 37,500 options were forfeited and 12,500 options were canceled upon the departure of an executive and the compensation expense of $19,000 was reversed. In 2018, 50,000 options were forfeited upon the departure of an executive and the compensation expense of $59,000 was reversed. During the three months ended March 31, 2019 , the remaining 50,000 options were net exercised for 3,000 shares of common stock. In October 2017, the Company granted an executive stock options to purchase 400,000 shares of common stock with an exercise price of $6.95 , of which 50,000 shares are exercisable quarterly starting March 31, 2018 and ending on December 31, 2019. The options expire in 2027. As of March 31, 2019 , 400,000 options were outstanding and 250,000 of these options were vested. Total stock-based compensation for the three months ended March 31, 2019 , related to these option grants was $143,000 . As of March 31, 2019 , there was approximately $430,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 0.8 years . In April 2018, the Company granted an employee stock options to purchase 50,000 shares of common stock with an exercise price of $10.50 . The options vest in twelve equal installments. The first installment vested on April 26, 2018 , and the remaining eleven installments vest from June 30, 2018 to December 31, 2020 . During the three months ended March 31, 2019 , the Company recognized $34,000 stock-based compensation and canceled the 50,000 options upon the departure of the employee. In May 2018, the Company granted an employee options to purchase 50,000 shares of common stock with an exercise price of $14.70 , of which 12,500 options will vest and become exercisable annually starting on May 2019. As of March 31, 2019 , 50,000 options were outstanding and none of these options was vested. Total stock-based compensation for the three months ended March 31, 2019 , related to these option grants was $22,000 . As of March 31, 2019 , there was approximately $280,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 3.1 years . In June 2018, the Company granted an employee options to purchase 50,000 shares of common stock with an exercise price of $16.65 , of which 12,500 options will vest and become exercisable annually starting on June 2019 . As of March 31, 2019 , 50,000 options were outstanding and none of these options was vested. Total stock-based compensation for the three months ended March 31, 2019 , related to these option grants was $25,000 . As of March 31, 2019 , there was approximately $327,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 3.2 years . |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program The Company's stock repurchase programs assist in offsetting the impact of dilution from employee equity compensation and assist with capital allocation. Management is allowed discretion in the execution of the repurchase program based upon market conditions and consideration of capital allocation. In February 2019, the Company entered into a Stock Repurchase Agreement with Azzurro, a majority shareholder of the Company and repurchased 100,000 shares of the Company’s common stock for an aggregate purchase price of $1.6 million , which were retired and recorded as a reduction of additional paid-in capital until extinguished with the remaining amount reflected as a reduction of retained earnings. In May 2019, the Company announced a stock repurchase program authorizing the repurchase of up to 1,000,000 shares of the Company’s outstanding common stock. |
Segment Reporting and Significa
Segment Reporting and Significant Customer Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segments Reporting and Significant Customer Information | Segment Reporting and Significant Customer Information The Company manages its business geographically and has three reportable operating segments: Asia Pacific, Europe and North America. Asia Pacific consists of the Company's operations in Australia, China, Hong Kong, Japan, Taiwan, and Southeast Asia. Europe consists of the Company’s operations in France, Germany, Spain, and the U.K. North America consists of the Company’s operations in Canada and the U.S. Management relies on an internal management reporting process that provides revenue and segment operating profit (loss) for making financial decisions and allocating resources. Management believes that segment revenues and operating profit (loss) are appropriate measures of evaluating the operational performance of the Company’s segments. The following is a summary of operating results (in thousands) by business segment: Three Months Ended March 31, 2019 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 1,635 $ 11,054 $ 18,136 $ 30,825 Intersegment revenues (expenses) 30 (481 ) 451 — Total net revenues 1,665 10,573 18,587 30,825 Operating profit (loss) $ (1,635 ) $ 2,137 $ 4,469 $ 4,971 Three Months Ended March 31, 2018 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 2,042 $ 10,332 $ 18,510 $ 30,884 Intersegment revenues (expenses) (20 ) (52 ) 72 — Total net revenues 2,022 10,280 18,582 30,884 Operating profit (loss) $ (1,740 ) $ 1,966 $ 3,431 $ 3,657 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. Revenues from unaffiliated customers excludes intersegment revenues and represents revenue with parties unaffiliated with Travelzoo and its wholly owned subsidiaries. For the three months ended March 31, 2019 and 2018 , the Company did not have any customers that accounted for 10% or more of revenue. As of March 31, 2019 and December 31, 2018 , 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 category and segment. Travel revenue includes travel publications ( Top 20 , Website , Newsflash , Travelzoo Network ), Getaway vouchers and hotel platform. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings). Three Months Ended March 31, 2019 2018 Asia Pacific Travel $ 1,600 $ 1,901 Local 65 121 Total Asia Pacific revenues $ 1,665 $ 2,022 Europe Travel $ 9,512 $ 9,053 Local 1,061 1,227 Total Europe revenues $ 10,573 $ 10,280 North America Travel $ 16,317 $ 16,036 Local 2,270 2,546 Total North America revenues $ 18,587 $ 18,582 Consolidated Travel $ 27,429 $ 26,990 Local 3,396 3,894 Total revenues $ 30,825 $ 30,884 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 countries that exceed 10% of total revenue (in thousands): Three Months Ended March 31, 2019 2018 Revenue United States $ 16,895 $ 17,118 United Kingdom 5,859 5,860 Germany 3,641 3,659 Rest of the world 4,430 4,247 Total revenues $ 30,825 $ 30,884 The following table sets forth property and equipment by geographic area (in thousands): March 31, December 31, 2019 2018 United States $ 2,875 $ 3,035 Rest of the world 729 755 Total long lived assets $ 3,604 $ 3,790 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | The Company has operating leases for real estate and certain equipment. The Company leases office space in Australia, Canada, China, France, Germany, Hong Kong, Japan, Singapore, Spain, Taiwan, the U.K., and the U.S. under operating leases. Our leases have remaining lease terms ranging from less than one year to November 2024. Certain leases include one or more options to renew. In addition, we sublease certain real estate to a third party. All of our leases qualify as operating leases. The following table summarizes the components of lease expense for the three months ended March 31, 2019 ((in thousands): March 31, 2019 Operating lease cost $ 1,184 Short-term lease cost 415 Variable lease cost 300 Sublease income (84 ) Total lease cost $ 1,815 For the three months ended March 31, 2019 , cash payments against the operating lease liabilities totaled $1.3 million . ROU assets obtained in exchange for lease obligations was $1.8 million for three months ended March 31, 2019 . The following table summarizes the presentation in our condensed consolidated balance sheets of our operating leases (in thousands): March 31, 2019 Assets: Operating lease right-of-use assets $ 14,264 Liabilities: Operating lease liabilities $ 5,508 Long-term operating lease liabilities 11,251 Total operating lease liabilities $ 16,759 Weighted average remaining lease term (years) 3.95 Weighted average discount rate 5.1 % Maturities of lease liabilities were as follows (in thousands): Years ending December 31, 2019 (excluding the three months ended March 31, 2019) $ 4,257 2020 5,111 2021 3,666 2022 2,365 2023 2,044 Thereafter 1,157 Total lease payments 18,600 Less interest (1,841 ) Present value of operating lease liabilities $ 16,759 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements Not Yet Adopted and Recently Adopted Accounting Pronouncements | Recent Accounting Pronouncements Not Yet Adopted In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15, "Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract." The new guidance required a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. The guidance is effective for calendar-year public business entities in 2020. For all other calendar-year entities, it is effective for annual periods beginning in 2021 and interim periods in 2022. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. (c) Recently Adopted Accounting Pronouncements In February 2016, the FASB issued an ASU 2016-02, "Leases," codified in Accounting Standard Codification 842 ("ASC 842"), which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability on its balance sheet. The Company adopted ASC 842 on January 1, 2019, using the alternative modified transition method with no restatement of prior periods or cumulative adjustment to retained earnings. Upon adoption, the Company elected the package of transition practical expedients: (i) not to reassess prior conclusions related to whether any expired or existing contracts are or contain leases; (ii) not to reassess the lease classification for any expired or existing leases; (iii) not to reassess initial direct costs for existing leases; and (iv) not to reassess certain land easements. |
Leases | Leases The Company determines if an arrangement contains a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease payments used to determine the operating lease assets may include lease incentives and stated rent increases. The Company does not include options to extend or terminate until it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. The Company elected not to recognize leases with an initial term of 12 months or less on its unaudited condensed consolidated balance sheets. The Company’s leases are reflected in operating lease ROU assets, operating lease liabilities and long-term operating lease liabilities in our unaudited condensed consolidated balance sheets. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company also has a real estate lease agreement which is subleased to a third party. The Company recognizes sublease income in Other income (expense), net on a straight-line basis over the lease term in its condensed consolidated statements of income. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Restricted cash includes cash and cash equivalents that is restricted through legal contracts, regulations or our intention to use the cash for a specific purpose. Our restricted cash primarily relates to refundable deposits and funds held in escrow. |
Revenue Recognition | Revenue Recognition The Company recognizes revenues when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company generates revenues primarily by delivering advertising on the Travelzoo website, in the Top 20 email newsletter, in Newsflash and from the Travelzoo Network. The Company also generates transaction-based revenues from the sale of vouchers through our Local Deals and Getaway e-mail alert services and providing hotel bookings. The Company's disaggregated revenues are included in "Note 8: Segment Reporting and Significant Customer Information". For fixed-fee website advertising, the Company recognizes revenues ratably over the contracted placement period. For Top 20 email newsletter and other email products, the Company recognizes revenues when the emails are delivered to its members. The Company offers advertising on a cost-per-click basis, which means that an advertiser pays the Company only when a user clicks on an ad on Travelzoo properties or Travelzoo Network members’ properties. For these customers, the Company recognizes revenues each time a user clicks on the ad. The Company also offers advertising on other bases, such as cost-per-impression, which means that an advertiser pays the Company based on the number of times their advertisement is displayed on Travelzoo properties, email advertisements, Travelzoo Network properties, or social media properties. For these customers, the Company recognizes revenues each time an ad is displayed or email delivered. For transaction based revenues, including products such as Local Deals, Getaway and hotel platform, the Company evaluates whether it is the principal (i.e., report revenue on a gross basis) versus an agent (i.e., report revenue on a net basis). The Company reports transaction revenue on a net basis because the supplier is primarily responsible for providing the underlying service and we do not control the service provided by the supplier prior to its transfer to the customer. For Local Deals and Getaway products, the Company earns a fee for acting as an agent for the sale of vouchers that can be redeemed for services with third-party merchants. Revenues are presented net of the amounts due to the third-party merchants for fulfilling the underlying services. Certain merchant contracts allow the Company to retain the proceeds from unredeemed vouchers. With these contracts, the Company estimates the value of vouchers that will ultimately not be redeemed and records the estimate in the same period as the voucher sale. Commission revenue related to our hotel platform is recognized ratably over the period of guest stay, net of an allowance for cancellations based upon historical patterns. For arrangements for booking non-cancelable reservations where the Company’s performance obligation is deemed to be the successful booking of a hotel reservation, we record revenue for the commissions upon completion of the hotel booking. The Company’s contracts with customers may include multiple performance obligations in which the Company allocates revenues to each performance obligation based on its standalone selling price. The Company determines standalone selling price based on its overall pricing objectives, taking into consideration the type of services, geographical region of the customers, normal rate card pricing and customary discounts. Standalone selling price is generally determined based on the prices charged to customers when the product is sold separately. The Company relies upon the following practical expedients and exemptions allowed for in the ASC 606. The Company expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded in sales and marketing expenses. In addition, the Company does not disclose the value of unsatisfied performance obligations for (a) contracts with an original expected length of one year or less and (b) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services performed. Deferred revenue primarily consists of customer prepayments and undelivered performance obligations related to the Company’s contracts with multiple performance obligations. At December 31, 2018 , $1.3 million was recorded as deferred revenue, of which $930,000 was recognized as revenue during the quarter ended March 31, 2019 . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets to the total amounts shown in the unaudited condensed consolidated statements of cash flows: March 31, December 31, 2019 2018 Cash and cash equivalents $ 19,946 $ 18,017 Restricted cash 1,325 1,444 Total cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows $ 21,271 $ 19,461 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and diluted net income 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, 2019 2018 Numerator: Net income $ 3,120 $ 2,502 Denominator: Weighted average common shares—basic 11,914 12,462 Effect of dilutive securities: stock options 310 — Weighted average common shares—diluted 12,224 12,462 Net income per share—basic $ 0.26 $ 0.20 Net income per share—diluted $ 0.26 $ 0.20 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of changes in accumulated balances of other comprehensive loss | The following table summarizes the changes in accumulated other comprehensive loss (in thousands): Three Months Ended March 31, 2019 2018 Beginning balance $ (4,214 ) $ (3,597 ) Other comprehensive loss due to foreign currency translation, net of tax (89 ) (183 ) Ending balance $ (4,303 ) $ (3,780 ) |
Segment Reporting and Signifi_2
Segment Reporting and Significant Customer Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of operating results from continuing operations and assets by business segment | The following is a summary of operating results (in thousands) by business segment: Three Months Ended March 31, 2019 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 1,635 $ 11,054 $ 18,136 $ 30,825 Intersegment revenues (expenses) 30 (481 ) 451 — Total net revenues 1,665 10,573 18,587 30,825 Operating profit (loss) $ (1,635 ) $ 2,137 $ 4,469 $ 4,971 Three Months Ended March 31, 2018 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 2,042 $ 10,332 $ 18,510 $ 30,884 Intersegment revenues (expenses) (20 ) (52 ) 72 — Total net revenues 2,022 10,280 18,582 30,884 Operating profit (loss) $ (1,740 ) $ 1,966 $ 3,431 $ 3,657 |
Schedule of revenue and long lived assets by geographical location | The following table sets forth the breakdown of revenues (in thousands) by category and segment. Travel revenue includes travel publications ( Top 20 , Website , Newsflash , Travelzoo Network ), Getaway vouchers and hotel platform. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings). Three Months Ended March 31, 2019 2018 Asia Pacific Travel $ 1,600 $ 1,901 Local 65 121 Total Asia Pacific revenues $ 1,665 $ 2,022 Europe Travel $ 9,512 $ 9,053 Local 1,061 1,227 Total Europe revenues $ 10,573 $ 10,280 North America Travel $ 16,317 $ 16,036 Local 2,270 2,546 Total North America revenues $ 18,587 $ 18,582 Consolidated Travel $ 27,429 $ 26,990 Local 3,396 3,894 Total revenues $ 30,825 $ 30,884 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 countries that exceed 10% of total revenue (in thousands): Three Months Ended March 31, 2019 2018 Revenue United States $ 16,895 $ 17,118 United Kingdom 5,859 5,860 Germany 3,641 3,659 Rest of the world 4,430 4,247 Total revenues $ 30,825 $ 30,884 The following table sets forth property and equipment by geographic area (in thousands): March 31, December 31, 2019 2018 United States $ 2,875 $ 3,035 Rest of the world 729 755 Total long lived assets $ 3,604 $ 3,790 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease cost | The following table summarizes the components of lease expense for the three months ended March 31, 2019 ((in thousands): March 31, 2019 Operating lease cost $ 1,184 Short-term lease cost 415 Variable lease cost 300 Sublease income (84 ) Total lease cost $ 1,815 |
Lease assets and liabilities | The following table summarizes the presentation in our condensed consolidated balance sheets of our operating leases (in thousands): March 31, 2019 Assets: Operating lease right-of-use assets $ 14,264 Liabilities: Operating lease liabilities $ 5,508 Long-term operating lease liabilities 11,251 Total operating lease liabilities $ 16,759 Weighted average remaining lease term (years) 3.95 Weighted average discount rate 5.1 % |
Lease liability maturity | Maturities of lease liabilities were as follows (in thousands): Years ending December 31, 2019 (excluding the three months ended March 31, 2019) $ 4,257 2020 5,111 2021 3,666 2022 2,365 2023 2,044 Thereafter 1,157 Total lease payments 18,600 Less interest (1,841 ) Present value of operating lease liabilities $ 16,759 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | Mar. 31, 2019USD ($)office | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Related Party Transaction | |||||
Operating lease right-of-use assets | $ 14,264,000 | ||||
Operating lease liability | 16,759,000 | ||||
Deferred revenue | $ 1,300,000 | ||||
Deferred revenue recognized | $ 930,000 | ||||
Majority Shareholder | |||||
Related Party Transaction | |||||
Percent of outstanding shares held by related party | 50.10% | ||||
Minimum | |||||
Related Party Transaction | |||||
Number of offices | office | 25 | ||||
Accounting Standards Update 2016-02 | |||||
Related Party Transaction | |||||
Operating lease right-of-use assets | $ 13,400,000 | ||||
Operating lease liability | 16,000,000 | ||||
Reclassification of deferred rent liability to operating lease right of use asset | $ 2,600,000 | ||||
WeekenGO | |||||
Related Party Transaction | |||||
Payment to acquire equity method investment | $ 3,000,000 | ||||
Equity method investment ownership percentage | 25.00% | ||||
Equity method purchase price allocation, tangible assets | $ 1,000,000 | ||||
Goodwill | 1,500,000 | ||||
Loss from share of equity loss and intangible asset amortization | $ 210,000 | ||||
WeekenGO | Equity Method Investee | |||||
Related Party Transaction | |||||
Insertion order signed to advertise with TravelZoo | 2,100,000 | ||||
Advertising services purchased | $ 555,000 | ||||
WeekenGO | Technology related intangible | |||||
Related Party Transaction | |||||
Equity method purchase price allocation, intangible assets | $ 485,000 | ||||
Intangible assets, useful life (in years) | 3 years | ||||
Subsequent Event | WeekenGO | |||||
Related Party Transaction | |||||
Payment to acquire equity method investment | $ 673,000 | ||||
Equity method investment ownership percentage | 26.60% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 19,946 | $ 18,017 | ||
Restricted cash | 1,325 | 1,444 | ||
Total cash, cash equivalents and restricted cash | $ 21,271 | $ 19,461 | $ 24,571 | $ 24,001 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income | $ 3,120 | $ 2,502 |
Denominator: | ||
Weighted average common shares - basic (in shares) | 11,914,000 | 12,462,000 |
Effect of dilutive securities: stock options (in shares) | 310,000 | 0 |
Weighted average common shares - diluted (in shares) | 12,224,000 | 12,462,000 |
Net income per share - basic (in dollars per share) | $ 0.26 | $ 0.20 |
Net income per share - diluted (in dollars per share) | $ 0.26 | $ 0.20 |
Anti-dilutive shares not included in computation of net income (loss) per common share (in shares) | 150,000 | 950,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2004 | Dec. 31, 2002 | Mar. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||||
Local deals and getaway merchant payables | $ 11.2 | $ 11.8 | ||
Travel Zoo Com Corporation | ||||
Business Acquisition [Line Items] | ||||
Period for receiving shares under merger (in years) | 2 years | 2 years | ||
Number of shares exchanged under merger (in shares) | 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 36.00% | 34.00% | |
Unrecognized deferred tax liability | $ 440,000 | ||
Total unrecognized tax benefits | 213,000 | ||
Accrued interest and penalties | $ 218,000 | $ 212,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | $ 14,059,000 | $ 13,078,000 |
Ending balance | 15,637,000 | 16,884,000 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (4,214,000) | (3,597,000) |
Ending balance | (4,303,000) | (3,780,000) |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Other comprehensive loss due to foreign currency translation, net of tax | $ (89,000) | $ (183,000) |
Stock-Based Compensation and _2
Stock-Based Compensation and Stock Options (Details) - Stock Options $ / shares in Units, $ in Thousands | Mar. 31, 2019USD ($)shares | Jun. 30, 2018$ / sharesshares | May 31, 2018$ / sharesshares | Apr. 30, 2018installment$ / sharesshares | Oct. 31, 2017$ / sharesshares | Mar. 31, 2016$ / sharesshares | Sep. 30, 2015$ / sharesshares | Jan. 31, 2012$ / sharesshares | Mar. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2014shares |
January 2012 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||
Employee options granted to purchase shares of common stock (in shares) | 100,000 | |||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 28.98 | |||||||||||
Options vested and become exercisable annually (in shares) | 25,000 | |||||||||||
Options canceled (in shares) | 50,000 | 25,000 | ||||||||||
Options forfeited (in shares) | 25,000 | |||||||||||
September 2015 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||
Employee options granted to purchase shares of common stock (in shares) | 400,000 | |||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 8.07 | |||||||||||
Options vested and become exercisable quarterly (in shares) | 50,000 | |||||||||||
Options vested (in shares) | 400,000 | |||||||||||
Options outstanding (in shares) | 400,000 | 400,000 | ||||||||||
March 2016 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||
Employee options granted to purchase shares of common stock (in shares) | 150,000 | |||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 8.55 | |||||||||||
Options vested and become exercisable annually (in shares) | 37,500 | |||||||||||
Options exercised (in shares) | 50,000 | |||||||||||
Shares issued upon exercise of options (in shares) | 3,000 | 3,000 | ||||||||||
October 2017 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||
Employee options granted to purchase shares of common stock (in shares) | 400,000 | |||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 6.95 | |||||||||||
Options vested and become exercisable quarterly (in shares) | 50,000 | |||||||||||
Options vested (in shares) | 250,000 | |||||||||||
Total stock-based compensation expense | $ | $ 143 | |||||||||||
Options outstanding (in shares) | 400,000 | 400,000 | ||||||||||
Unrecognized stock-based compensation expense | $ | $ 430 | $ 430 | ||||||||||
Expected duration for recognition of stock based compensation expense (in years) | 9 months | |||||||||||
April 2018 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||
Employee options granted to purchase shares of common stock (in shares) | 50,000 | |||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 10.50 | |||||||||||
Options canceled (in shares) | 50,000 | |||||||||||
Total stock-based compensation expense | $ | $ 34 | |||||||||||
Number of installments | installment | 12 | |||||||||||
May 2018 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||
Employee options granted to purchase shares of common stock (in shares) | 50,000 | |||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 14.70 | |||||||||||
Options vested and become exercisable annually (in shares) | 12,500 | |||||||||||
Options vested (in shares) | 0 | |||||||||||
Total stock-based compensation expense | $ | $ 22 | |||||||||||
Options outstanding (in shares) | 50,000 | 50,000 | ||||||||||
Unrecognized stock-based compensation expense | $ | $ 280 | $ 280 | ||||||||||
Expected duration for recognition of stock based compensation expense (in years) | 3 years 1 month 15 days | |||||||||||
Executive Officer | March 2016 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||
Options canceled (in shares) | 13,000 | |||||||||||
Options forfeited (in shares) | 50,000 | 38,000 | ||||||||||
Total stock-based compensation expense | $ | $ (59) | $ 19 | ||||||||||
Employee | June 2018 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||
Employee options granted to purchase shares of common stock (in shares) | 50,000 | |||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 16.65 | |||||||||||
Options vested and become exercisable annually (in shares) | 12,500 | |||||||||||
Options vested (in shares) | 0 | |||||||||||
Total stock-based compensation expense | $ | $ 25 | |||||||||||
Options outstanding (in shares) | 50,000 | 50,000 | ||||||||||
Unrecognized stock-based compensation expense | $ | $ 327 | $ 327 | ||||||||||
Expected duration for recognition of stock based compensation expense (in years) | 3 years 2 months 23 days |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ in Millions | 1 Months Ended | |
Feb. 28, 2019 | May 31, 2019 | |
February 2019 Plan | ||
Class of Stock [Line Items] | ||
Shares repurchase and retired during period (in shares) | 100,000 | |
Stock repurchased during period, value | $ 1.6 | |
Scenario, Forecast | ||
Class of Stock [Line Items] | ||
Number of shares authorized for repurchase (in shares) | 1,000,000 |
Segment Reporting and Signifi_3
Segment Reporting and Significant Customer Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable operating segments | 3 |
Segment Reporting and Signifi_4
Segment Reporting and Significant Customer Information - Operating Results from Continuing Operations and Assets by Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets | ||
Revenues | $ 30,825 | $ 30,884 |
Operating profit (loss) | 4,971 | 3,657 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets | ||
Revenues | 1,665 | 2,022 |
Operating profit (loss) | (1,635) | (1,740) |
Europe | ||
Revenues from External Customers and Long-Lived Assets | ||
Revenues | 10,573 | 10,280 |
Operating profit (loss) | 2,137 | 1,966 |
North America | ||
Revenues from External Customers and Long-Lived Assets | ||
Revenues | 18,587 | 18,582 |
Operating profit (loss) | 4,469 | 3,431 |
Operating Segments | Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets | ||
Revenues | 1,635 | 2,042 |
Operating Segments | Europe | ||
Revenues from External Customers and Long-Lived Assets | ||
Revenues | 11,054 | 10,332 |
Operating Segments | North America | ||
Revenues from External Customers and Long-Lived Assets | ||
Revenues | 18,136 | 18,510 |
Intersegment revenues (expenses) | Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets | ||
Revenues | 30 | (20) |
Intersegment revenues (expenses) | Europe | ||
Revenues from External Customers and Long-Lived Assets | ||
Revenues | (481) | (52) |
Intersegment revenues (expenses) | North America | ||
Revenues from External Customers and Long-Lived Assets | ||
Revenues | $ 451 | $ 72 |
Segment Reporting and Signifi_5
Segment Reporting and Significant Customer Information - Revenue by Type and Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets | ||
Total revenues | $ 30,825 | $ 30,884 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets | ||
Total revenues | 1,665 | 2,022 |
Europe | ||
Revenues from External Customers and Long-Lived Assets | ||
Total revenues | 10,573 | 10,280 |
North America | ||
Revenues from External Customers and Long-Lived Assets | ||
Total revenues | 18,587 | 18,582 |
Travel | ||
Revenues from External Customers and Long-Lived Assets | ||
Total revenues | 27,429 | 26,990 |
Travel | Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets | ||
Total revenues | 1,600 | 1,901 |
Travel | Europe | ||
Revenues from External Customers and Long-Lived Assets | ||
Total revenues | 9,512 | 9,053 |
Travel | North America | ||
Revenues from External Customers and Long-Lived Assets | ||
Total revenues | 16,317 | 16,036 |
Local | ||
Revenues from External Customers and Long-Lived Assets | ||
Total revenues | 3,396 | 3,894 |
Local | Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets | ||
Total revenues | 65 | 121 |
Local | Europe | ||
Revenues from External Customers and Long-Lived Assets | ||
Total revenues | 1,061 | 1,227 |
Local | North America | ||
Revenues from External Customers and Long-Lived Assets | ||
Total revenues | $ 2,270 | $ 2,546 |
Segment Reporting and Signifi_6
Segment Reporting and Significant Customer Information - Revenue for Individual Countries that Exceed 10% of Total Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 30,825 | $ 30,884 |
United States | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 16,895 | 17,118 |
United Kingdom | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 5,859 | 5,860 |
Germany | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 3,641 | 3,659 |
Rest of the world | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 4,430 | $ 4,247 |
Segment Reporting and Signifi_7
Segment Reporting and Significant Customer Information - Long Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets | ||
Long-lived assets | $ 3,604 | $ 3,790 |
United States | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-lived assets | 2,875 | 3,035 |
Rest of the world | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-lived assets | $ 729 | $ 755 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,184 |
Short-term lease cost | 415 |
Variable lease cost | 300 |
Sublease income | (84) |
Lease cost | 1,815 |
Operating cash flows | 1,277 |
Operating leases | $ 1,805 |
Leases - Lease Balance Sheet In
Leases - Lease Balance Sheet Information (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Assets: | |
Operating lease right-of-use assets | $ 14,264 |
Liabilities: | |
Operating lease liabilities | 5,508 |
Long-term operating lease liabilities | 11,251 |
Total operating lease liabilities | $ 16,759 |
Weighted average remaining lease term (years) | 3 years 11 months 12 days |
Weighted average discount rate | 5.10% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liability Maturity (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 Remaining | $ 4,257 |
2020 | 5,111 |
2021 | 3,666 |
2022 | 2,365 |
2023 | 2,044 |
Thereafter | 1,157 |
Total lease payments | 18,600 |
Less interest | (1,841) |
Present value of operating lease liabilities | $ 16,759 |
Uncategorized Items - tzoo-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,314,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,314,000 |