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| 8-K - TRAVELZOO | form8-k.htm |
Exhibit 99.1
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Travelzoo
590 Madison Avenue
37th Floor
New York, NY 10022
Media Contact:
Christie McConnell
+1 (212) 484-4912
cmcconnell@travelzoo.com
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FOR IMMEDIATE RELEASE
Travelzoo Reports Fourth Quarter 2011 Results
NEW YORK, January 26, 2012 -- Travelzoo Inc. (NASDAQ: TZOO):
Fourth Quarter 2011 Financial Highlights:
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Revenue of $35.2 million, up 23% year-over-year
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Operating income of $8.2 million, up 22% year-over-year
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Net income of $6.4 million, up 70% year-over-year
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Earnings per share of $0.40, compared to $0.23 in the prior-year period
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Travelzoo Inc., a global Internet media company, today announced financial results for the fourth quarter ended December 31, 2011, with revenue of $35.2 million, an increase of 23% year-over-year. Operating income was $8.2 million, up 22% year-over-year. Net income was $6.4 million, with diluted earnings per share (EPS) of $0.40, up from $0.23 in the prior-year period.
"In a typically slower period for travel advertising, Q4 revenues grew faster year-over-year than in any such quarter in the past four years," said Chris Loughlin, chief executive officer of Travelzoo. "We remain positive about our Local Deals business, in which we differentiate from others by focusing on higher quality deals, as well as our ability to run and grow this business profitably. In the past two quarters, we have focused on putting the systems and teams in place that we intend to use in 2012 to continue to scale the business with attractive profitability."
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North America
North America business segment revenue for the fourth quarter grew 16% year-over-year to $25.6 million. Operating profit for the fourth quarter was $6.5 million, or 25% of revenue, down from $6.7 million, or 30% of revenue, in the prior-year period.
Europe
Europe business segment revenue for the fourth quarter grew 48% year-over-year to $9.7 million. In local currency terms, revenue for the fourth quarter grew 49% year-over-year. Operating profit for the fourth quarter was $1.7 million, compared to an operating profit of $22,000 in the prior-year period.
Subscribers
Travelzoo had a total unduplicated number of newsletter subscribers in North America and Europe of 21.5 million as of December 31, 2011, up 14% from December 31, 2010. In North America, total unduplicated number of subscribers was 15.7 million as of December 31, 2011, up 10% from December 31, 2010. In Europe, total unduplicated number of subscribers was 5.8 million as of December 31, 2011, up 26% from December 31.
Income Taxes
Income tax expense was $1.9 million, compared to $3.0 million in the prior-year period. The effective income tax rate was 23%, down from 44% in the prior-year period.
Asset Management
During the fourth quarter 2011, Travelzoo generated $7.1 million of cash from operating activities. Accounts receivable remained unchanged at $13.3 million compared to prior-year period. Accounts payable increased by $11.8 million over the prior-year period to $21.7 million. Capital expenditures were $558,000, up from $138,000 in the prior-year period. Travelzoo exited the fourth quarter with $38.7 million in cash and cash equivalents.
Conference Call
Travelzoo will host a conference call to discuss fourth quarter results at 11:00 a.m. ET today. Please visit http://www.travelzoo.com/earnings to
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download the management presentation (PDF format) to be discussed in the conference call;
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access the webcast.
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About Travelzoo
Travelzoo Inc. is a global Internet media company. With more than 24 million subscribers in North America, Europe, and Asia Pacific and 25 offices worldwide, Travelzoo® publishes deals from more than 2,000 travel and entertainment companies. Travelzoo’s deal experts review offers to find the best deals and confirm their true value. In Asia Pacific, Travelzoo is independently owned and operated by Travelzoo (Asia) Ltd. and Travelzooo Japan K.K. under a license agreement with Travelzoo Inc.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect,” “predict,” “project,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions, and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release. Travelzoo and Top 20 are registered trademarks of Travelzoo Inc. All other company and product names mentioned are trademarks of their respective owners.
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