Travelzoo 2003 Annual Report Download - page 37

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in conjunction with, ""Management's Discussion and Analysis of Financial Condition and Results of
Operations'' and the consolidated Ñnancial statements and the notes thereto included elsewhere herein.
Consolidated Statement of Operations Data:
Year Ended December 31,
2003 2002 2001 2000 1999
(In thousands, except per share data)
Revenues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $17,991 $ 9,848 $ 6,148 $ 3,950 $ 954
Net income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,050 853 364 362 105
Net income per share Ì basicÏÏÏÏÏÏÏÏÏÏÏ $ 0.11 $ 0.04 $ 0.02 $ 0.02 $ 0.01
Net income per share Ì diluted ÏÏÏÏÏÏÏÏÏ $ 0.10 $ 0.04 $ 0.02 $ 0.02 $ 0.01
Shares used in per share calculation Ì
basic ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19,425 19,425 19,425 19,373 19,323
Shares used in per share calculation Ì
diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20,527 19,896 19,425 19,467 19,355
Consolidated Balance Sheet Data:
December 31,
2003 2002 2001 2000 1999
Cash and cash equivalents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $3,522 $1,258 $ 610 $ 46 $ 11
Working capital ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,460 1,340 425 186 171
Total assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6,726 3,240 2,131 1,556 405
Long-term debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ ÌÌÌÌÌ
Stockholder's Equity ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $3,841 $1,791 $ 938 $ 574 $194
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 thereto 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. While our products provide advertising opportunities for travel
companies, they also provide Internet users with a free source of information on current sales and specials
from hundreds of travel companies. Our products include the Travelzoo website, the Travelzoo Top 20
newsletter, NewsÖash, and the Weekend.com newsletter. More than 300 travel companies purchase our
advertising services.
Our revenues are advertising revenues, consisting of listing fees paid by travel companies to advertise
their special oÅers on the Travelzoo website and in the Travelzoo Top 20 e-mail newsletter, the NewsÖash
e-mail product, the Weekend.com e-mail newsletter, and banner advertising sales. Revenues are principally
generated from the sale of advertising on our Travelzoo website and in our Travelzoo Top 20 newsletter.
Listing fees are based on placement, number of listings, number of impressions, or number of clickthroughs.
Banner advertising rates are based on CPM rates (cost per thousand impressions). Smaller advertising
agreements Ì typically $2,000 or less per month Ì typically renew automatically each month if they are not
terminated by the client. Larger agreements are typically related to advertising campaigns and are not
automatically renewed.
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