Travelzoo Reviews Fourth Quarter 2021 Outcomes

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

  • Consolidated income of $14.1 million, up 13% year-over-year
  • Non-GAAP consolidated working lack of $2.1 million
  • Earnings per share (EPS) of ($0.25) attributable to Travelzoo from persevering with operations

Travelzoo, a world Web media firm that gives unique provides and experiences for members, in the present day introduced monetary outcomes for the fourth quarter ended December 31, 2021. Consolidated income was $14.1 million, up 13% from $12.5 million year-over-year and down 10% from the prior quarter. Reported income excludes income from discontinued operations in Asia Pacific. Travelzoo’s reported income consists of promoting revenues and commissions, derived from and generated in reference to purchases made by Travelzoo members.

The reported web loss attributable to Travelzoo from persevering with operations was $3.0 million for This fall 2021. On the consolidated stage, together with minority pursuits, the reported web loss from persevering with operations was $3.0 million. EPS from persevering with operations was ($0.25), in comparison with $0.02 within the prior-year interval. GAAP working loss was $3.4 million.

Non-GAAP working loss was $2.1 million. The calculation of non-GAAP working revenue (loss) excludes amortization of intangibles ($0.3 million), inventory possibility bills ($1.0 million), and severance-related bills ($0.1 million). See part “Non-GAAP Monetary Measures” under.

“The surge of the Omicron variant and associated elevated security measures throughout This fall 2021 affected our reported income and working earnings,” mentioned Holger Bartel, International CEO. “We imagine this to be a short-term impact. We count on the Firm’s monetary efficiency to considerably enhance in 2022.”

Money Place
As of December 31, 2021, consolidated money, money equivalents and restricted money have been $45.0 million. Web money utilized in operations was $17.4 million. Money was used primarily in reference to the fee of accounts payable and service provider payables as nicely a rise in accounts receivables of $8.8 million associated to switching to a extra environment friendly fee processor. The change additionally elevated deposits by $5.5 million throughout a transition interval. There have been no vital capital expenditures.

Reserve
Reported revenues are web of a reserve of $4.7 million associated to commissions earned from refundable vouchers bought. The reserve is booked as contra income, which lowered income and working earnings by $1.6 million for the quarter.

Travelzoo North America
North America enterprise section income decreased 3% year-over-year to $8.6 million. Working loss for This fall 2021 was $2.2 million, in comparison with an working revenue of $1.3 million within the prior-year interval.

Travelzoo Europe
Europe enterprise section income elevated 77% year-over-year to $4.8 million. Working loss for This fall 2021 was $1.2 million, in comparison with an working lack of $2.4 million within the prior-year interval.

Jack’s Flight Membership
On January 13, 2020, Travelzoo acquired 60% of Jack’s Flight Membership, a membership subscription service. Jack’s Flight Membership income decreased 13% year-over-year to $803,000. Non-GAAP working earnings for This fall 2021 was $292,000, in comparison with Non-GAAP working earnings of $532,000 within the prior-year interval. After consolidation with Travelzoo, which incorporates $275,000 in amortization of intangible belongings associated to the accounting of the acquisition, Jack’s Flight Membership’s reported web loss was $19,000, with $11,000 attributable to Travelzoo.

Licensing
In June of 2020, Travelzoo entered right into a royalty-bearing licensing settlement with a neighborhood licensee in Japan for the unique use of Travelzoo’s model, enterprise mannequin, and members in Japan. In August of 2020, Travelzoo entered right into a royalty-bearing licensing settlement with a neighborhood licensee in Australia for the unique use of Travelzoo’s model, enterprise fashions, and members in Australia, New Zealand, and Singapore. Beneath these preparations, Travelzoo’s present members in Australia, Japan, New Zealand, and Singapore will proceed to be owned by Travelzoo because the licensor. Licensing income is booked with a lag of 1 quarter. Travelzoo recorded $1,000 in licensing income from the licensee in Australia, New Zealand, and Singapore in This fall 2021. Licensing income is predicted to extend going ahead.

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

Discontinued Operations
As introduced in a press launch on March 10, 2020, Travelzoo determined to exit its Asia Pacific enterprise and function it as a licensing enterprise going ahead. Consequently, the Asia Pacific enterprise has been labeled as discontinued operations since March 31, 2020. Prior intervals have been reclassified to adapt with the present presentation. Sure reclassifications have been made for present and prior intervals between the continued operations and the discontinued operations in accordance with U.S. GAAP.

Revenue Taxes
Revenue tax profit was $248,000 in This fall 2021, in comparison with an earnings tax good thing about $368,000 within the prior-year interval.

Non-GAAP Monetary Measures
Administration calculates non-GAAP working earnings when evaluating the monetary efficiency of the enterprise. Travelzoo’s calculation of non-GAAP working earnings, additionally referred to as “non-GAAP working revenue (loss)” on this press launch and in the present day’s earnings convention name, excludes the next objects: impairment of intangibles and goodwill, amortization of intangibles, inventory possibility bills, and severance- associated bills. This press launch features a desk which reconciles GAAP working earnings to the calculation of non-GAAP working earnings. Non-GAAP working earnings just isn’t required by, or introduced in accordance with, typically accepted accounting ideas in the USA of America (“GAAP”). This data ought to be thought of as supplemental in nature and shouldn’t be thought of in isolation or as an alternative choice to the monetary data ready in accordance with GAAP. As well as, these non-GAAP monetary measures might not be the identical as equally titled measures reported by different firms.

Trying Forward
We presently count on considerably increased income and a return to profitability in Q1 2022. We proceed to see a pattern of restoration of our income. Nonetheless, there might be sudden fluctuations within the brief time period. In the course of the pandemic, we’ve got been capable of decrease our mounted prices. We imagine we will preserve our mounted prices comparatively low within the foreseeable future—whereas income is predicted to develop.

Convention Name
Travelzoo will host a convention name to debate third quarter outcomes in the present day at 11:00 a.m. ET. Please go to http://ir.travelzoo.com/events-presentations to obtain the administration presentation (PDF format) to be mentioned within the convention name; and entry the webcast.

About Travelzoo
Travelzoo® gives its 30 million members unique provides and one-of-a-kind experiences personally reviewed by our deal specialists across the globe. We’ve our finger on the heartbeat of excellent journey, leisure, and way of life experiences. We work in partnership with greater than 5,000 prime journey suppliers—our long-standing relationships give Travelzoo members entry to irresistible offers.

Sure statements contained on this press launch that aren’t historic details could also be forward-looking statements throughout the that means of Part 27A of the Securities Act of 1933 and Part 21E of the Securities and Change Act of 1934. These forward-looking statements might embody, however aren’t restricted to, statements about our plans, aims, expectations, prospects and intentions, markets wherein we take part and different statements contained on this press launch that aren’t historic details. When used on this press launch, the phrases “count on”, “predict”, “mission”, “anticipate”, “imagine”, “estimate”, “intend”, “plan”, “search” and comparable expressions are typically meant to determine forward-looking statements. As a result of these forward-looking statements contain dangers and uncertainties, there are vital components that might trigger precise outcomes to vary materially from these expressed or implied by these forward-looking statements, together with adjustments in our plans, aims, expectations, prospects and intentions and different components mentioned in our filings with the SEC. We can’t assure any future ranges of exercise, efficiency or achievements. Travelzoo undertakes no obligation to replace forward-looking statements to mirror occasions or circumstances occurring after the date of this press launch.

Travelzoo, Prime 20, and Jack’s Flight Membership are registered emblems of Travelzoo.

 
Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In hundreds, besides per share quantities)
         
    Three months ended   Twelve months ended
    December 31,   December 31,
      2021       2020       2021       2020  
Revenues   $ 14,139     $ 12,483     $ 63,190     $ 53,601  
Price of revenues     2,993       2,795       11,525       10,563  
  Gross revenue     11,146       9,688       51,665       43,038  
Working bills:                
Gross sales and advertising     8,455       6,305       30,294       30,616  
Product growth     538       495       2,590       3,081  
Common and administrative     5,573       3,785       19,753       20,494  
Impairment of intangible asset and goodwill                       2,920  
  Complete working bills     14,566       10,585       52,637       57,111  
Working loss     (3,420 )     (897 )     (972 )     (14,073 )
Different earnings, web     144       677       4,006       455  
Revenue (loss) from persevering with operations earlier than earnings taxes     (3,276 )     (220 )     3,034       (13,618 )
Revenue tax expense (profit)     (248 )     (368 )     1,863       (2,438 )
Revenue (loss) from persevering with operations     (3,028 )     148       1,171       (11,180 )
Revenue (loss) from discontinued operations, web of tax     (8 )     554       (13 )     (3,390 )
Web earnings (loss)     (3,036 )     702       1,158       (14,570 )
Web loss attributable to non-controlling curiosity     (8 )     (25 )     (9 )     (1,147 )
Web earnings (loss) attributable to Travelzoo   $ (3,028 )   $ 727     $ 1,167     $ (13,423 )
                 
Web earnings (loss) attributable to Travelzoo—persevering with operations   $ (3,020 )   $ 173     $ 1,180     $ (10,033 )
Web earnings (loss) attributable to Travelzoo—discontinued operations   $ (8 )   $ 554     $ (13 )   $ (3,390 )
                 
Revenue (loss) per share—primary                
Persevering with operations   $ (0.25 )   $ 0.01     $ 0.10     $ (0.88 )
Discontinued operations   $     $ 0.05     $     $ (0.30 )
Web earnings (loss) per share —primary   $ (0.25 )   $ 0.06     $ 0.10     $ (1.18 )
                 
Revenue (loss) per share—diluted                
Persevering with operations   $ (0.25 )   $ 0.01     $ 0.09     $ (0.88 )
Discontinued operations   $     $ 0.05     $     $ (0.30 )
Web earnings (loss) per share—diluted   $ (0.25 )   $ 0.06     $ 0.09     $ (1.18 )
Shares utilized in per share calculation from persevering with operations—primary     12,050       11,315       11,646       11,344  
Shares utilized in per share calculation from discontinued operations—primary     12,050       11,315       11,646       11,344  
Shares utilized in per share calculation from persevering with operations—diluted     12,050       12,605       12,991       11,344  
Shares utilized in per share calculation from discontinued operations—diluted     12,050       12,605       11,646       11,344  
Travelzoo
Condensed Consolidated Steadiness Sheets
(Unaudited)
(In hundreds)
 
  December 31,
2021
  December 31,
2020
Property      
Present belongings:      
Money and money equivalents $ 43,815     $ 63,061  
Accounts receivable, web   15,305       4,519  
Pay as you go earnings taxes   3,239       931  
Deposits   190       137  
Pay as you go bills and different   2,851       1,166  
Property from discontinued operations   71       230  
  Complete present belongings   65,471       70,044  
Deposits and different   6,784       745  
Deferred tax belongings   3,949       5,067  
Restricted money   1,142       1,178  
Working lease right-of-use belongings   7,700       8,541  
Property and tools, web   659       1,347  
Intangible belongings, web   3,426       4,534  
Goodwill   10,944       10,944  
  Complete belongings $ 100,075     $ 102,400  
Liabilities and Stockholders’ Fairness (Deficit)      
Present liabilities:      
Accounts payable $ 3,981     $ 6,996  
Service provider payables   68,678       57,104  
Accrued bills and different   9,734       8,649  
Deferred income   1,733       2,688  
Working lease liabilities   3,180       3,587  
PPP notes payable (present portion)         2,849  
Revenue tax payable   185       326  
Liabilities from discontinued operations   485       671  
  Complete present liabilities   87,976       82,870  
PPP notes payables         814  
Deferred tax liabilities         357  
Lengthy-term working lease liabilities   9,111       10,774  
Different long-term liabilities   2,364       1,085  
  Complete liabilities   99,451       95,900  
Non-controlling curiosity   4,600       4,609  
Widespread inventory   126       114  
Treasury inventory (at price)   (5,488 )      
Further paid-in capital   4,415       6,239  
Retained earnings (accrued deficit)   764       (403 )
Collected different complete loss   (3,793 )     (4,059 )
  Complete stockholders’ fairness (deficit)   (3,976 )     1,891  
  Complete liabilities and stockholders’ fairness (deficit) $ 100,075     $ 102,400  
Travelzoo
Condensed Consolidated Statements of Money Flows
(Unaudited)
(In hundreds)
         
    Three months ended   Twelve months ended
    December 31,   December 31,
      2021       2020       2021       2020  
Money flows from working actions:                
Web earnings (loss)   $ (3,036 )   $ 702     $ 1,158     $ (14,570 )
Changes to reconcile web earnings (loss) to web money offered by (utilized in) working actions:                
Depreciation and amortization     412       508       1,820       2,314  
Inventory-based compensation     960       960       3,748       6,203  
Deferred earnings tax     (259 )     (1,666 )     813       (3,413 )
Impairment of intangible belongings and goodwill                       2,920  
Acquire on notes payable settlement                       (1,500 )
Acquire on long-lived belongings           (822 )           (385 )
Loss on fairness funding in WeGo                       474  
Acquire on sale of fairness funding in WeGo           (468 )           (468 )
Acquire on PPP notes payable forgiveness                 (3,588 )      
Web overseas foreign money results     (73 )     (143 )     (373 )     (685 )
Provision for (reversal of) loss on accounts receivable and different reserves     1,667       1,452       (58 )     5,375  
Adjustments in working belongings and liabilities, web of acquisitions:                
Accounts receivable     (6,321 )     (50 )     (10,169 )     6,196  
Pay as you go earnings taxes     (366 )     (610 )     (2,373 )     75  
Pay as you go bills and different     1,381       (443 )     (8,092 )     1,183  
Accounts payable     (7,765 )     (13,457 )     (2,740 )     (748 )
Service provider payables     (4,307 )     23,604       12,179       44,136  
Accrued bills and different     785       (731 )     333       (2,112 )
Revenue tax payable     125       (61 )     (138 )     (540 )
Different liabilities     (563 )     660       (597 )     2,564  
Web money offered by (utilized in) working actions     (17,360 )     9,435       (8,077 )     47,019  
Money flows from investing actions:                                
Acquisition of enterprise, web of money acquired                       (679 )
Different funding                       (430 )
Proceeds from funding     133             133        
Proceeds from sale of fairness funding in WeGo           2,607             2,607  
Purchases of property and tools     (5 )     (1 )     (29 )     (253 )
Proceeds from sale of long-lived belongings           822             822  
Web money offered by investing actions     128       3,428       104       2,067  
Money flows from financing actions:                
Repurchase of frequent inventory     (3,905 )           (5,488 )     (1,205 )
Cost of promissory notes           (1,700 )     (110 )     (9,500 )
Proceeds from notes payable                       3,663  
Train of inventory choices and taxes paid for web share settlement     (148 )     60       (5,572 )     60  
Web money utilized in financing actions     (4,053 )     (1,640 )     (11,170 )     (6,982 )
Impact of change fee on money, money equivalents and restricted money     (127 )     1,178       (253 )     1,571  
Web improve (lower) in money, money equivalents and restricted money     (21,412 )     12,401       (19,396 )     43,675  
Money, money equivalents and restricted money at starting of interval     66,401       51,984       64,385       20,710  
Money, money equivalents and restricted money at finish of interval   $ 44,989     $ 64,385     $ 44,989     $ 64,385  
Travelzoo
Section Info from Persevering with Operations
(Unaudited)
(In hundreds)
 
Three months ended December 31, 2021 Travelzoo
North

America
  Travelzoo
Europe
  Jack’s Flight
Membership
  Elimination   Consolidated
Income from unaffiliated clients $ 8,678     $ 4,658     $ 803   $   $ 14,139  
Intersegment income   (99 )     99                
Complete web revenues   8,579       4,757       803         14,139  
Working earnings (loss) $ (2,240 )   $ (1,197 )   $ 17   $   $ (3,420 )
                   
Three months ended December 31, 2020 Travelzoo
North

America
  Travelzoo
Europe
  Jack’s Flight
Membership
  Elimination   Consolidated
Income from unaffiliated clients $ 8,858     $ 2,703     $ 922   $   $ 12,483  
Intersegment income   12       (12 )              
Complete web revenues   8,870       2,691       922         12,483  
Working earnings (loss) $ 1,318     $ (2,414 )   $ 199   $   $ (897 )
Twelve months ended December 31, 2021 Travelzoo
North

America
  Travelzoo
Europe
  Jack’s Flight
Membership
  Elimination   Consolidated
Income from unaffiliated clients $ 41,683     $ 18,161     $ 3,346     $     $ 63,190  
Intersegment income   363       (363 )                  
Complete web revenues   42,046       17,798       3,346             63,190  
Working earnings (loss) $ 414     $ (1,520 )   $ 134     $     $ (972 )
                   
Twelve months ended December 31, 2020 Travelzoo
North

America
  Travelzoo
Europe
  Jack’s Flight
Membership
  Elimination   Consolidated
Income from unaffiliated clients $ 34,663     $ 15,409     $ 3,537     $ (8 )   $ 53,601  
Intersegment income   249       (257 )           8        
Complete web revenues   34,912       15,152       3,537             53,601  
Working loss $ (5,056 )   $ (6,195 )   $ (2,814 )   $ (8 )   $ (14,073 )
Travelzoo
Reconciliation of GAAP to Non-GAAP Info
(Unaudited)
(In hundreds, besides per share quantities)
         
    Three months ended   Twelve months ended
    December 31,   December 31,
      2021       2020       2021       2020  
GAAP working expense   $ 14,566     $ 10,585     $ 52,637     $ 57,111  
Non-GAAP changes:                
Impairment of intangible and goodwill (A)                       2,920  
Amortization of intangibles (B)     275       333       1,108       1,277  
Inventory possibility bills (C)     960       958       3,747       6,201  
Severance-related bills (D)     87       153       580       1,292  
Non-GAAP working expense     13,244       9,141       47,202       45,421  
                 
GAAP working loss     (3,420 )     (897 )     (972 )     (14,073 )
Non-GAAP changes (A by D)     1,322       1,444       5,435       11,690  
Non-GAAP working earnings (loss)     (2,098 )     547       4,463       (2,383 )
                                 

Investor Relations:
Almira Pusch
ir@travelzoo.com 

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