• Travelzoo Reports Fourth Quarter 2021 Results

    Источник: Nasdaq GlobeNewswire / 03 мар 2022 07:30:01   America/New_York

    NEW YORK, March 03, 2022 (GLOBE NEWSWIRE) -- Travelzoo® (NASDAQ: TZOO):

    • Consolidated revenue of $14.1 million, up 13% year-over-year
    • Non-GAAP consolidated operating loss of $2.1 million
    • Earnings per share (EPS) of ($0.25) attributable to Travelzoo from continuing operations

    Travelzoo, a global Internet media company that provides exclusive offers and experiences for members, today announced financial results for the fourth quarter ended December 31, 2021. Consolidated revenue was $14.1 million, up 13% from $12.5 million year-over-year and down 10% from the prior quarter. Reported revenue excludes revenue from discontinued operations in Asia Pacific. Travelzoo's reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members.

    The reported net loss attributable to Travelzoo from continuing operations was $3.0 million for Q4 2021. At the consolidated level, including minority interests, the reported net loss from continuing operations was $3.0 million. EPS from continuing operations was ($0.25), compared to $0.02 in the prior-year period. GAAP operating loss was $3.4 million.

    Non-GAAP operating loss was $2.1 million. The calculation of non-GAAP operating profit (loss) excludes amortization of intangibles ($0.3 million), stock option expenses ($1.0 million), and severance-related expenses ($0.1 million). See section “Non-GAAP Financial Measures” below.

    “The surge of the Omicron variant and related increased safety measures during Q4 2021 affected our reported revenue and operating income,” said Holger Bartel, Global CEO. "We believe this to be a short-term effect. We expect the Company’s financial performance to significantly improve in 2022.”

    Cash Position
    As of December 31, 2021, consolidated cash, cash equivalents and restricted cash were $45.0 million. Net cash used in operations was $17.4 million. Cash was used primarily in connection with the payment of accounts payable and merchant payables as well an increase in accounts receivables of $8.8 million related to switching to a more efficient payment processor. The switch also increased deposits by $5.5 million during a transition period. There were no significant capital expenditures.

    Reserve
    Reported revenues are net of a reserve of $4.7 million related to commissions earned from refundable vouchers sold. The reserve is booked as contra revenue, which lowered revenue and operating income by $1.6 million for the quarter.

    Travelzoo North America
    North America business segment revenue decreased 3% year-over-year to $8.6 million. Operating loss for Q4 2021 was $2.2 million, compared to an operating profit of $1.3 million in the prior-year period.

    Travelzoo Europe
    Europe business segment revenue increased 77% year-over-year to $4.8 million. Operating loss for Q4 2021 was $1.2 million, compared to an operating loss of $2.4 million in the prior-year period.

    Jack’s Flight Club
    On January 13, 2020, Travelzoo acquired 60% of Jack’s Flight Club, a membership subscription service. Jack’s Flight Club revenue decreased 13% year-over-year to $803,000. Non-GAAP operating income for Q4 2021 was $292,000, compared to Non-GAAP operating income of $532,000 in the prior-year period. After consolidation with Travelzoo, which includes $275,000 in amortization of intangible assets related to the accounting of the acquisition, Jack’s Flight Club's reported net loss was $19,000, with $11,000 attributable to Travelzoo.

    Licensing
    In June of 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Japan for the exclusive use of Travelzoo’s brand, business model, and members in Japan. In August of 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Australia for the exclusive use of Travelzoo’s brand, business models, and members in Australia, New Zealand, and Singapore. Under these arrangements, Travelzoo’s existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue is booked with a lag of one quarter. Travelzoo recorded $1,000 in licensing revenue from the licensee in Australia, New Zealand, and Singapore in Q4 2021. Licensing revenue is expected to increase going forward.

    Members and Subscribers
    As of December 31, 2021, we had 30.3 million members worldwide. In North America, the unduplicated number of Travelzoo members was 16.9 million as of December 31, 2021, up 4% from December 31, 2020. In Europe, the unduplicated number of Travelzoo members was 8.4 million as of December 31, 2021, down 4% from December 31, 2020. Jack’s Flight Club had 1.8 million subscribers as of December 31, 2021, up 6% from December 31, 2020.

    Discontinued Operations
    As announced in a press release on March 10, 2020, Travelzoo decided to exit its Asia Pacific business and operate it as a licensing business going forward. Consequently, the Asia Pacific business has been classified as discontinued operations since March 31, 2020. Prior periods have been reclassified to conform with the current presentation. Certain reclassifications have been made for current and prior periods between the continued operations and the discontinued operations in accordance with U.S. GAAP.

    Income Taxes
    Income tax benefit was $248,000 in Q4 2021, compared to an income tax benefit of $368,000 in the prior-year period.

    Non-GAAP Financial Measures
    Management calculates non-GAAP operating income when evaluating the financial performance of the business. Travelzoo’s calculation of non-GAAP operating income, also called “non-GAAP operating profit (loss)” in this press release and today’s earnings conference call, excludes the following items: impairment of intangibles and goodwill, amortization of intangibles, stock option expenses, and severance- related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in the United States of America ("GAAP"). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.

    Looking Ahead
    We currently expect substantially higher revenue and a return to profitability in Q1 2022. We continue to see a trend of recovery of our revenue. However, there could be unexpected fluctuations in the short term. During the pandemic, we have been able to lower our fixed costs. We believe we can keep our fixed costs relatively low in the foreseeable future—while revenue is expected to grow.

    Conference Call
    Travelzoo will host a conference call to discuss third quarter results today at 11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to download the management presentation (PDF format) to be discussed in the conference call; and access the webcast.

    About Travelzoo
    Travelzoo® provides its 30 million members 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 Travelzoo members access to irresistible deals.

    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, Top 20, and Jack's Flight Club are registered trademarks of Travelzoo.

     
    Travelzoo
    Condensed Consolidated Statements of Operations
    (Unaudited)
    (In thousands, except per share amounts)
         
      Three months ended Twelve months ended
      December 31, December 31,
       2021   2020   2021   2020 
    Revenues $14,139  $12,483  $63,190  $53,601 
    Cost of revenues  2,993   2,795   11,525   10,563 
      Gross profit  11,146   9,688   51,665   43,038 
    Operating expenses:        
    Sales and marketing  8,455   6,305   30,294   30,616 
    Product development  538   495   2,590   3,081 
    General and administrative  5,573   3,785   19,753   20,494 
    Impairment of intangible asset and goodwill           2,920 
      Total operating expenses  14,566   10,585   52,637   57,111 
    Operating loss  (3,420)  (897)  (972)  (14,073)
    Other income, net  144   677   4,006   455 
    Income (loss) from continuing operations before income taxes  (3,276)  (220)  3,034   (13,618)
    Income tax expense (benefit)  (248)  (368)  1,863   (2,438)
    Income (loss) from continuing operations  (3,028)  148   1,171   (11,180)
    Income (loss) from discontinued operations, net of tax  (8)  554   (13)  (3,390)
    Net income (loss)  (3,036)  702   1,158   (14,570)
    Net loss attributable to non-controlling interest  (8)  (25)  (9)  (1,147)
    Net income (loss) attributable to Travelzoo $(3,028) $727  $1,167  $(13,423)
             
    Net income (loss) attributable to Travelzoo—continuing operations $(3,020) $173  $1,180  $(10,033)
    Net income (loss) attributable to Travelzoo—discontinued operations $(8) $554  $(13) $(3,390)
             
    Income (loss) per share—basic        
    Continuing operations $(0.25) $0.01  $0.10  $(0.88)
    Discontinued operations $  $0.05  $  $(0.30)
    Net income (loss) per share —basic $(0.25) $0.06  $0.10  $(1.18)
             
    Income (loss) per share—diluted        
    Continuing operations $(0.25) $0.01  $0.09  $(0.88)
    Discontinued operations $  $0.05  $  $(0.30)
    Net income (loss) per share—diluted $(0.25) $0.06  $0.09  $(1.18)
    Shares used in per share calculation from continuing operations—basic  12,050   11,315   11,646   11,344 
    Shares used in per share calculation from discontinued operations—basic  12,050   11,315   11,646   11,344 
    Shares used in per share calculation from continuing operations—diluted  12,050   12,605   12,991   11,344 
    Shares used in per share calculation from discontinued operations—diluted  12,050   12,605   11,646   11,344 


    Travelzoo
    Condensed Consolidated Balance Sheets
    (Unaudited)
    (In thousands)
     
     December 31,
    2021
     December 31,
    2020
    Assets   
    Current assets:   
    Cash and cash equivalents$43,815  $63,061 
    Accounts receivable, net 15,305   4,519 
    Prepaid income taxes 3,239   931 
    Deposits 190   137 
    Prepaid expenses and other 2,851   1,166 
    Assets from discontinued operations 71   230 
      Total current assets 65,471   70,044 
    Deposits and other 6,784   745 
    Deferred tax assets 3,949   5,067 
    Restricted cash 1,142   1,178 
    Operating lease right-of-use assets 7,700   8,541 
    Property and equipment, net 659   1,347 
    Intangible assets, net 3,426   4,534 
    Goodwill 10,944   10,944 
      Total assets$100,075  $102,400 
    Liabilities and Stockholders’ Equity (Deficit)   
    Current liabilities:   
    Accounts payable$3,981  $6,996 
    Merchant payables 68,678   57,104 
    Accrued expenses and other 9,734   8,649 
    Deferred revenue 1,733   2,688 
    Operating lease liabilities 3,180   3,587 
    PPP notes payable (current portion)    2,849 
    Income tax payable 185   326 
    Liabilities from discontinued operations 485   671 
      Total current liabilities 87,976   82,870 
    PPP notes payables    814 
    Deferred tax liabilities    357 
    Long-term operating lease liabilities 9,111   10,774 
    Other long-term liabilities 2,364   1,085 
      Total liabilities 99,451   95,900 
    Non-controlling interest 4,600   4,609 
    Common stock 126   114 
    Treasury stock (at cost) (5,488)   
    Additional paid-in capital 4,415   6,239 
    Retained earnings (accumulated deficit) 764   (403)
    Accumulated other comprehensive loss (3,793)  (4,059)
      Total stockholders’ equity (deficit) (3,976)  1,891 
      Total liabilities and stockholders’ equity (deficit)$100,075  $102,400 


    Travelzoo
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
    (In thousands)
         
      Three months ended Twelve months ended
      December 31, December 31,
       2021   2020   2021   2020 
    Cash flows from operating activities:        
    Net income (loss) $(3,036) $702  $1,158  $(14,570)
    Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:        
    Depreciation and amortization  412   508   1,820   2,314 
    Stock-based compensation  960   960   3,748   6,203 
    Deferred income tax  (259)  (1,666)  813   (3,413)
    Impairment of intangible assets and goodwill           2,920 
    Gain on notes payable settlement           (1,500)
    Gain on long-lived assets     (822)     (385)
    Loss on equity investment in WeGo           474 
    Gain on sale of equity investment in WeGo     (468)     (468)
    Gain on PPP notes payable forgiveness        (3,588)   
    Net foreign currency effects  (73)  (143)  (373)  (685)
    Provision for (reversal of) loss on accounts receivable and other reserves  1,667   1,452   (58)  5,375 
    Changes in operating assets and liabilities, net of acquisitions:        
    Accounts receivable  (6,321)  (50)  (10,169)  6,196 
    Prepaid income taxes  (366)  (610)  (2,373)  75 
    Prepaid expenses and other  1,381   (443)  (8,092)  1,183 
    Accounts payable  (7,765)  (13,457)  (2,740)  (748)
    Merchant payables  (4,307)  23,604   12,179   44,136 
    Accrued expenses and other  785   (731)  333   (2,112)
    Income tax payable  125   (61)  (138)  (540)
    Other liabilities  (563)  660   (597)  2,564 
    Net cash provided by (used in) operating activities  (17,360)  9,435   (8,077)  47,019 
    Cash flows from investing activities:                
    Acquisition of business, net of cash acquired           (679)
    Other investment           (430)
    Proceeds from investment  133      133    
    Proceeds from sale of equity investment in WeGo     2,607      2,607 
    Purchases of property and equipment  (5)  (1)  (29)  (253)
    Proceeds from sale of long-lived assets     822      822 
    Net cash provided by investing activities  128   3,428   104   2,067 
    Cash flows from financing activities:        
    Repurchase of common stock  (3,905)     (5,488)  (1,205)
    Payment of promissory notes     (1,700)  (110)  (9,500)
    Proceeds from notes payable           3,663 
    Exercise of stock options and taxes paid for net share settlement  (148)  60   (5,572)  60 
    Net cash used in financing activities  (4,053)  (1,640)  (11,170)  (6,982)
    Effect of exchange rate on cash, cash equivalents and restricted cash  (127)  1,178   (253)  1,571 
    Net increase (decrease) in cash, cash equivalents and restricted cash  (21,412)  12,401   (19,396)  43,675 
    Cash, cash equivalents and restricted cash at beginning of period  66,401   51,984   64,385   20,710 
    Cash, cash equivalents and restricted cash at end of period $44,989  $64,385  $44,989  $64,385 


    Travelzoo
    Segment Information from Continuing Operations
    (Unaudited)
    (In thousands)
     
    Three months ended December 31, 2021Travelzoo
    North

    America
     Travelzoo
    Europe
     Jack's Flight
    Club
     Elimination Consolidated
    Revenue from unaffiliated customers$8,678  $4,658  $803 $ $14,139 
    Intersegment revenue (99)  99        
    Total net revenues 8,579   4,757   803    14,139 
    Operating income (loss)$(2,240) $(1,197) $17 $ $(3,420)
              
    Three months ended December 31, 2020Travelzoo
    North

    America
     Travelzoo
    Europe
     Jack's Flight
    Club
     Elimination Consolidated
    Revenue from unaffiliated customers$8,858  $2,703  $922 $ $12,483 
    Intersegment revenue 12   (12)       
    Total net revenues 8,870   2,691   922    12,483 
    Operating income (loss)$1,318  $(2,414) $199 $ $(897)


    Twelve months ended December 31, 2021Travelzoo
    North

    America
     Travelzoo
    Europe
     Jack's Flight
    Club
     Elimination Consolidated
    Revenue from unaffiliated customers$41,683  $18,161  $3,346  $  $63,190 
    Intersegment revenue 363   (363)         
    Total net revenues 42,046   17,798   3,346      63,190 
    Operating income (loss)$414  $(1,520) $134  $  $(972)
              
    Twelve months ended December 31, 2020Travelzoo
    North

    America
     Travelzoo
    Europe
     Jack's Flight
    Club
     Elimination Consolidated
    Revenue from unaffiliated customers$34,663  $15,409  $3,537  $(8) $53,601 
    Intersegment revenue 249   (257)     8    
    Total net revenues 34,912   15,152   3,537      53,601 
    Operating loss$(5,056) $(6,195) $(2,814) $(8) $(14,073)


    Travelzoo
    Reconciliation of GAAP to Non-GAAP Information
    (Unaudited)
    (In thousands, except per share amounts)
         
      Three months ended Twelve months ended
      December 31, December 31,
       2021   2020   2021   2020 
    GAAP operating expense $14,566  $10,585  $52,637  $57,111 
    Non-GAAP adjustments:        
    Impairment of intangible and goodwill (A)           2,920 
    Amortization of intangibles (B)  275   333   1,108   1,277 
    Stock option expenses (C)  960   958   3,747   6,201 
    Severance-related expenses (D)  87   153   580   1,292 
    Non-GAAP operating expense  13,244   9,141   47,202   45,421 
             
    GAAP operating loss  (3,420)  (897)  (972)  (14,073)
    Non-GAAP adjustments (A through D)  1,322   1,444   5,435   11,690 
    Non-GAAP operating income (loss)  (2,098)  547   4,463   (2,383)
                     

    Investor Relations:
    Almira Pusch
    ir@travelzoo.com 


    Primary Logo

Опубликовать