NEW YORK--(BUSINESS WIRE)-- Travelzoo Inc. (NASDAQ:TZOO - News):
•Revenue of $38.7 million, up 40% year-over-year
•Operating profit of $9.2 million, up 62% year-over-year
•Net income of $5.9 million, up 62% year-over-year
•Earnings per share of $0.36, compared to $0.22 in the prior year period
Travelzoo Inc., a global Internet media company, today announced financial results for the third quarter ended September 30, 2011, with revenue of $38.7 million, an increase of 40% year-over-year. Operating profit was $9.2 million, up 62% year-over-year. Net income was $5.9 million, with diluted net income per share (EPS) of $0.36, up from $0.22 in the prior-year period.
“In a typically slow third quarter, Travelzoo's growth accelerated; revenues grew at the fastest pace in five years and reached record levels in both North America and Europe," said Chris Loughlin, chief executive officer of Travelzoo. "Our expansion into local deals focuses on growing both the top and the bottom line. Operating margins improved, and operating income and earnings per share increased even more than revenues.
North America
North America business segment revenue grew 32% year-over-year to $28.1 million. Operating profit was $7.8 million, or 28% of revenue, up from $5.5 million, or 26% of revenue, in the prior-year period.
Subscribers
Travelzoo had a total unduplicated number of newsletter subscribers in North America and Europe of 21.3 million as of September 30, 2011, up 14% from September 30, 2010, and up 3% from June 30, 2011. In North America, total unduplicated number of subscribers was 15.6 million as of September 30, 2011, up 10% from September 30, 2010 and up 2% from June 30, 2011. In Europe, total unduplicated number of subscribers was 5.7 million as of September 30, 2011, up 27% from September 30, 2010 and up 5% from June 30, 2011.
Asset Management
During the third quarter, Travelzoo generated $9.1 million of cash from operating activities. Accounts receivable decreased by $1.9 million quarter-over-quarter and decreased by $86,000 over the prior-year period to $14.1 million. Accounts payable increased by $1.5 million quarter-over-quarter and increased by $9.8 million over the prior-year period to $17.2 million. Capital expenditures were $847,000, up from $356,000 in the prior quarter and up from $391,000 in the prior-year period. Travelzoo exited the third quarter with $32.4 million in cash and cash equivalents.
