- Revenue of
$22.0 million , up 2% year-over-year - Consolidated operating profit of
$5.6 million - Non-GAAP consolidated operating profit of
$6.0 million - Cash flow from operations of
$4.6 million - Earnings per share (EPS) of
$0.31
Net income attributable to
Non-GAAP operating profit was
"We will continue to leverage
"With more than 30 million members, 8 million mobile app users, and 4 million social media followers,
Cash Position
As of
Jack's Flight Club
New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was
In
Members and Subscribers
As of
Discontinued Operations
In
Income Taxes
A provision of
Looking Ahead
For Q2 2024, we expect continued growth in revenue year-over-year, albeit at a smaller pace than in 2023. We also expect for Q2 2024 higher profitability year-over-year. In
Non-GAAP Financial Measures
Management calculates non-GAAP operating income when evaluating the financial performance of the business.
Conference Call
- download the management presentation (PDF format) to be discussed in the conference call
- access the webcast.
About
We, Travelzoo®, are the club for travel enthusiasts. Our 30 million members receive exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words "expect", "predict", "project", "anticipate", "believe", "estimate", "intend", "plan", "seek" and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the
|
|||
Condensed Consolidated Statements of Operations |
|||
(Unaudited) |
|||
(In thousands, except per share amounts) |
|||
|
|||
|
Three months ended |
||
|
|
||
|
2024 |
|
2023 |
Revenues |
$ 21,985 |
|
$ 21,601 |
Cost of revenues |
2,640 |
|
2,691 |
Gross profit |
19,345 |
|
18,910 |
Operating expenses: |
|
|
|
Sales and marketing |
8,598 |
|
9,296 |
Product development |
566 |
|
490 |
General and administrative |
4,590 |
|
4,413 |
Total operating expenses |
13,754 |
|
14,199 |
Operating income |
5,591 |
|
4,711 |
Other income, net |
139 |
|
350 |
Income from continuing operations before income taxes |
5,730 |
|
5,061 |
Income tax expense |
1,505 |
|
1,378 |
Income from continuing operations |
4,225 |
|
3,683 |
Loss from discontinued operations, net of tax |
— |
|
(2) |
Net income |
4,225 |
|
3,681 |
Net income (loss) attributable to non-controlling interest |
(11) |
|
8 |
Net income attributable to |
$ 4,236 |
|
$ 3,673 |
|
|
|
|
Net income attributable to Travelzoo—continuing operations |
$ 4,236 |
|
$ 3,675 |
Net loss attributable to Travelzoo—discontinued operations |
$ — |
|
$ (2) |
|
|
|
|
Income per share—basic |
|
|
|
Continuing operations |
$ 0.31 |
|
$ 0.23 |
Discontinued operations |
$ — |
|
$ — |
Net income per share—basic |
$ 0.31 |
|
$ 0.23 |
|
|
|
|
Income per share—diluted |
|
|
|
Continuing operations |
$ 0.31 |
|
$ 0.23 |
Discontinued operations |
$ — |
|
$ — |
Net income per share—diluted |
$ 0.31 |
|
$ 0.23 |
Shares used in per share calculation from continuing operations—basic |
13,489 |
|
15,697 |
Shares used in per share calculation from discontinued operations—basic |
13,489 |
|
15,697 |
Shares used in per share calculation from continuing operations—diluted |
13,625 |
|
15,779 |
Shares used in per share calculation from discontinued operations—diluted |
13,625 |
|
15,779 |
|
|||
Condensed Consolidated Balance Sheets |
|||
(Unaudited) |
|||
(In thousands) |
|||
|
|||
|
|
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 16,190 |
|
$ 15,713 |
Accounts receivable, net |
13,151 |
|
12,965 |
Prepaid income taxes |
566 |
|
629 |
Prepaid expenses and other |
1,681 |
|
1,460 |
Assets from discontinued operations |
1 |
|
1 |
Total current assets |
31,589 |
|
30,768 |
Deposits and other |
225 |
|
1,115 |
Deferred tax assets |
3,107 |
|
3,196 |
Restricted cash |
675 |
|
675 |
Operating lease right-of-use assets |
5,892 |
|
6,015 |
Property and equipment, net |
532 |
|
578 |
Intangible assets, net |
1,773 |
|
2,091 |
|
10,944 |
|
10,944 |
Total assets |
$ 54,737 |
|
$ 55,382 |
Liabilities and Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ 5,514 |
|
$ 4,546 |
Merchant payables |
17,827 |
|
20,622 |
Accrued expenses and other |
3,634 |
|
3,658 |
Deferred revenue |
3,247 |
|
2,044 |
Income tax payable |
805 |
|
766 |
Operating lease liabilities |
2,463 |
|
2,530 |
Liabilities from discontinued operations |
24 |
|
24 |
Total current liabilities |
33,514 |
|
34,190 |
Long-term tax liabilities |
5,596 |
|
4,681 |
Long-term operating lease liabilities |
6,458 |
|
6,717 |
Other long-term liabilities |
377 |
|
911 |
Total liabilities |
45,945 |
|
46,499 |
Common stock |
132 |
|
136 |
Tax indemnification |
(9,537) |
|
(9,537) |
Note receivable from shareholder |
(1,753) |
|
(1,753) |
Additional paid-in capital |
— |
|
439 |
Retained earnings |
20,125 |
|
19,508 |
Accumulated other comprehensive loss |
(4,861) |
|
(4,607) |
Total |
4,106 |
|
4,186 |
Non-controlling interest |
4,686 |
|
4,697 |
Total stockholder's equity |
8,792 |
|
8,883 |
Total liabilities and equity |
$ 54,737 |
|
$ 55,382 |
|
|||
Condensed Consolidated Statements of Cash Flows |
|||
(Unaudited) |
|||
(In thousands) |
|||
|
|||
|
Three months ended |
||
|
|
||
|
2024 |
|
2023 |
Cash flows from operating activities: |
|
|
|
Net income |
$ 4,225 |
|
$ 3,681 |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
Depreciation and amortization |
383 |
|
478 |
Stock-based compensation |
95 |
|
396 |
Deferred income tax |
(15) |
|
(68) |
Net foreign currency effects |
3 |
|
3 |
Net recoveries of accounts receivable and refund reserves |
(33) |
|
(712) |
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
(235) |
|
372 |
Prepaid income taxes |
63 |
|
407 |
Prepaid expenses, deposits and other |
582 |
|
160 |
Accounts payable |
1,008 |
|
(1,321) |
Merchant payables |
(2,678) |
|
(4,591) |
Accrued expenses and other |
972 |
|
911 |
Income tax payable |
54 |
|
— |
Other liabilities |
197 |
|
819 |
Net cash provided by operating activities |
4,621 |
|
535 |
Cash flows from investing activities: |
|
|
|
Proceeds from repayment of note receivable |
— |
|
39 |
Purchases of property and equipment |
(35) |
|
(111) |
Net cash used in investing activities |
(35) |
|
(72) |
Cash flows from financing activities: |
|
|
|
Repurchase of common stock |
(3,872) |
|
(186) |
Net cash used in financing activities |
(3,872) |
|
(186) |
Effect of exchange rate on cash, cash equivalents and restricted cash |
(238) |
|
171 |
Net increase in cash, cash equivalents and restricted cash |
476 |
|
448 |
Cash, cash equivalents and restricted cash at beginning of period |
16,389 |
|
19,378 |
Cash, cash equivalents and restricted cash at end of period |
$ 16,865 |
|
$ 19,826 |
|
|||||||||
Segment Information from Continuing Operations |
|||||||||
(Unaudited) |
|||||||||
(In thousands) |
|||||||||
|
|||||||||
Three months ended |
America |
|
|
|
Jack's |
|
New |
|
Consolidated |
Revenues from unaffiliated customers |
$ 14,273 |
|
$ 6,580 |
|
$ 1,100 |
|
$ 32 |
|
$ 21,985 |
Intersegment revenues |
(45) |
|
82 |
|
(37) |
|
— |
|
— |
Total net revenues |
14,228 |
|
6,662 |
|
1,063 |
|
32 |
|
21,985 |
Operating income (loss) |
$ 4,438 |
|
$ 1,382 |
|
$ (99) |
|
$ (130) |
|
$ 5,591 |
|
|
|
|
|
|
|
|
|
|
Three months ended |
America |
|
|
|
Jack's |
|
New |
|
Consolidated |
Revenues from unaffiliated customers |
$ 14,567 |
|
$ 6,078 |
|
$ 948 |
|
$ 8 |
|
$ 21,601 |
Intersegment revenues |
191 |
|
(191) |
|
— |
|
— |
|
— |
Total net revenues |
14,758 |
|
5,887 |
|
948 |
|
8 |
|
21,601 |
Operating income (loss) |
$ 4,516 |
|
$ 457 |
|
$ (45) |
|
$ (217) |
|
$ 4,711 |
|
|||
Reconciliation of GAAP to Non-GAAP Information |
|||
(Unaudited) |
|||
(In thousands, except per share amounts) |
|||
|
|||
|
Three months ended |
||
|
|
||
|
2024 |
|
2023 |
GAAP operating expense |
$ 13,754 |
|
$ 14,199 |
Non-GAAP adjustments: |
|
|
|
Amortization of intangibles (A) |
317 |
|
398 |
Stock option expenses (B) |
95 |
|
396 |
Severance-related expenses (C) |
— |
|
39 |
Non-GAAP operating expense |
13,342 |
|
13,366 |
|
|
|
|
GAAP operating income |
5,591 |
|
4,711 |
Non-GAAP adjustments (A through C) |
412 |
|
833 |
Non-GAAP operating income |
6,003 |
|
5,544 |
Investor Relations:
ir@travelzoo.com
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