Travelzoo 2004 Annual Report Download - page 64

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TRAVELZOO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
SigniÑcant customer information is as follows:
Percent of
Percentage of Accounts
Total Revenue Receivable
Year Ended December 31, December 31,
Customer 2004 2003 2002 2004 2003
A ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12% * * 19% *
BÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ * 10% 15% 13% 14%
C ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ * 11% 14% 11% *
All of the above customers are located in the United States of America.
* Less than 10%
All sales during the years ended December 31, 2004, 2003, and 2002 were made in the United States of
America. All tangible assets as of December 31, 2004 and 2003 were located in the United States of America.
(7) Unaudited Quarterly Information
The following represents unaudited quarterly Ñnancial data for 2004 and 2003.
Quarters Ended
Dec 31, Sept 30, June 30, Mar 31, Dec 31, Sept 30, June 30, Mar 31,
2004 2004 2004 2004 2003 2003 2003 2003
(In thousands)
Revenues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $10,509 $9,507 $7,201 $6,462 $5,201 $4,785 $4,291 $3,714
Cost of revenues ÏÏÏÏÏÏÏÏÏÏÏ 166 183 166 179 141 93 81 83
Gross proÑt ÏÏÏÏÏÏÏÏÏ 10,343 9,324 7,035 6,283 5,060 4,692 4,210 3,631
Operating expenses:
Sales and marketing ÏÏÏÏÏÏ 4,268 4,339 3,667 3,457 2,821 2,526 2,295 1,924
General and administrative 2,348 1,657 1,101 1,115 1,214 1,115 903 1,057
Merger expenses ÏÏÏÏÏÏÏÏÏ Ì Ì Ì Ì Ì Ì Ì Ì
Total operating
expenses ÏÏÏÏÏÏÏÏÏÏ 6,616 5,996 4,768 4,572 4,035 3,641 3,198 2,981
Income from operations ÏÏÏÏÏ 3,727 3,328 2,267 1711 1,025 1,051 1,012 650
Interest income ÏÏÏÏÏÏÏÏÏÏÏÏ 106 9 6 5 5 3 3 2
Income before income taxes 3,833 3,337 2,274 1,716 1,030 1,054 1,015 652
Income tax expense ÏÏÏÏÏÏÏÏ 2,104 1,371 940 707 577 437 419 267
Net income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 1,729 $1,966 $1,334 $1,009 $ 453 $ 617 $ 596 $ 385
Basic net income per share ÏÏ $ .11 $ .13 $ .08 $ .05 $ .03 $ .03 $ .03 $ .02
Diluted net income per share $ .09 $ .11 $ .08 $ .05 $ .02 $ .03 $ .03 $ .02
The quarterly data presented above for the three months ended September 30, 2004 reÖects a
reclassiÑcation to general and administrative expenses of $220,000 of expenses previously reported as other
non-operating expenses.
46