TravelZoo Inc. (TZOO)

[wagsten]

Travelzoo Reports First Quarter 2004 Results: Record Revenues and Record Profit
Monday, April 12, 2004 09:01 AM ET

NEW YORK--(BUSINESS WIRE)--April 12, 2004--Travelzoo Inc. (NASDAQ: TZOO, news), the Internet's largest publisher of sales and specials from hundreds of travel companies, today reported record revenues and record profit for the first quarter ended March 31, 2004.


First Quarter 2004 Financial Highlights:

-- Revenues increased 74% from same period last year

-- Sequential quarterly revenue increase of 24%

-- Net profit increased 162% from same period last year

-- Pre-tax profit margin of 27%

Travelzoo Inc. reported revenues of approximately $6.5 million for the first quarter ended March 31, 2004, an increase of 74% over revenues of approximately $3.7 million for the same period last year, and a quarterly sequential increase of 24% over revenues of approximately $5.2 million for the fourth quarter ended December 31, 2003.

The Company reported a net income of approximately $1.0 million for the first quarter of 2004 compared to a net income of approximately $385,000 for the same period in 2003.

Earnings per share for the first quarter of 2004 were $0.05 per basic and diluted share, up 150% from $0.02 in the same period last year.

Income before income taxes for the first quarter ended March 31, 2004 was approximately $1.7 million or 27% of revenues, compared to approximately $652,000, or 18% of revenues, for the same period last year.

"Travelzoo's performance met our high expectations, delivering one of the most successful quarters in the Company's history," said Ralph Bartel, CEO of Travelzoo.

About Travelzoo

Travelzoo Inc. is the Internet's largest publisher of sales and specials from hundreds of travel companies. Travelzoo's publications include the Travelzoo® website (http://www.travelzoo.com), the Top 20® and Weekend.com® e-mail newsletters, and Newsflash™. With over 7 million subscribers, Travelzoo lists sales and specials from more than 300 advertisers, including Alamo Rent A Car, American Airlines, Carnival Cruise Lines, Europe Express, Fairmont Hotels & Resorts, Hertz, JetBlue Airways, Kimpton Hotels, Liberty Travel, Lufthansa, Mark Travel, Marriott, Omni Hotels, Orbitz, Pleasant Holidays, Royal Caribbean Cruises, Spirit Airlines, Starwood Hotels & Resorts Worldwide, SunTrips, The Venetian, Travelocity, United Airlines, US Airways, Virgin Atlantic Airways and Wyndham Hotels & Resorts.

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 Weekend.com are registered trademarks of Travelzoo Inc. All other company and product names mentioned are trademarks of their respective owners.



Travelzoo Inc.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share amounts)

Three months ended
March 31,
2004 2003
--------- ---------
Revenues $6,462 $3,714

Cost of Revenues 179 83
--------- ---------
Gross Profit 6,283 3,631
Operating Expenses:
Sales and Marketing 3,457 1,924
General and Administrative 1,115 1,057
Merger Expenses - -
--------- ---------
Total Operating Expenses 4,572 2,981
--------- ---------
Income from Operations 1,711 650
Interest Income 5 2
--------- ---------
Income before Income Taxes 1,716 652
--------- ---------
Income Taxes 707 267
--------- ---------
Net Income $1,009 $385
========= =========

Basic Net Income per Share $0.05 $0.02
Diluted Net Income per Share 0.05 0.02

Shares Used in Computing
Basic Net Income per Share 19,425 19,425
Shares Used in Computing
Diluted Net Income per Share 20,648 20,505

Travelzoo Inc.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)

March 31, December 31,
2004 2003
----------- -----------
ASSETS
Cash $3,424 $3,522
Accounts Receivable, net 3,322 2,370
Deposits 2 97
Other Current Assets 176 132
Deferred Income Taxes 225 225
----------- -----------
Total Current Assets 7,149 6,346
----------- -----------
Deposits 142 42
Deferred Income Taxes 28 27
Property and Equipment, net 150 164
Intangible Assets, net 130 147
----------- -----------
Total Assets $7,599 $6,726
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable 741 224
Accrued Expenses 1,161 1,328
Deferred Revenue 75 22
Income Tax Payable 772 1,311
----------- -----------
Total Liabilities 2,749 2,885
----------- -----------
Common Stock 194 194
Additional paid-in capital (116) (116)
Retained Earnings 4,772 3,763
----------- -----------
Total Stockholders' Equity 4,850 3,841
----------- -----------
Total Liabilities and
Stockholders' Equity $7,599 $6,726
=========== ===========




CONTACT: Travelzoo Inc.
Kelly Ford, 212-521-4216
[e-mail]