Travelzoo 2002 Annual Report Download - page 32

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Item 6. Selected Consolidated Financial Data
The selected consolidated Ñnancial data set forth below are derived from audited consolidated Ñnancial
statements. The following consolidated selected Ñnancial data is qualiÑed in its entirety by, and should be read
in conjunction with, ""Management's Discussion and Analysis of Financial Condition and Results of
Operations'' and the consolidated Ñnancial statements and the notes to those statements included elsewhere
herein.
Consolidated Statement of Operations Data:
Period from
May 21, 1998
Year Ended December 31, (inception) to
2002 2001 2000 1999 December 31, 1998
(In thousands, except per share data)
Net revenues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 9,848 $ 6,148 $ 3,950 $ 954 $ 84
Net incomeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 853 364 362 105 29
Net income per share Ì basic ÏÏÏÏ $ 0.04 $ 0.02 $ 0.02 $ 0.01 $ Ì
Net income per share Ì diluted ÏÏ $ 0.04 $ 0.02 $ 0.02 $ 0.01 $ Ì
Shares used in per share
calculation Ì basic ÏÏÏÏÏÏÏÏÏÏÏ 19,425 19,425 19,373 19,323 9,432
Shares used in per share
calculation Ì diluted ÏÏÏÏÏÏÏÏÏÏ 19,896 19,425 19,467 19,355 9,432
Consolidated Balance Sheet Data:
December 31,
2002 2001 2000 1999 1998
Cash and cash equivalents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,258 $ 610 $ 46 $ 11 $ 12
Working capitalÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,340 425 186 171 78
Total assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,240 2,131 1,556 405 107
Long-term debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì Ì Ì
Stockholder's EquityÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,791 $ 938 $ 574 $194 $ 89
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of Travelzoo's Ñnancial condition and results of operations should
be read in conjunction with, and is qualiÑed in its entirety by reference to, the consolidated Ñnancial
statements and the notes to those statements appearing elsewhere in this report.
Overview
Travelzoo Inc. is an Internet media company that publishes sales and specials for hundreds of travel
companies. As the Internet is becoming consumers' preferred medium to search for travel oÅers, we provide
airlines, hotels, cruise lines, vacation packagers, and other travel companies with a fast, Öexible, and cost-
eÅective way to reach millions of users. Our products include the Travelzoo website, the Travelzoo Top 20
newsletter, and the Weekend.com newsletter.
Our revenues are primarily derived from the sale of advertising on our Travelzoo website and in our
Travelzoo Top 20 e-mail newsletter.
Critical Accounting Policies
We believe that there are a number of accounting policies that are critical to understanding our historical
and future performance, as these policies aÅect the reported amounts of revenue and the more signiÑcant
areas involving management's judgments and estimates. These signiÑcant accounting policies relate to revenue
16