Travelzoo 2009 Annual Report Download - page 87

(12) Unaudited Quarterly Information
The following represents unaudited quarterly financial data for 2009 and 2008:
Dec 31,
2009
Sept 30,
2009
June 30,
2009
Mar 31,
2009
Dec 31,
2008
Sept 30,
2008
June 30,
2008
Mar 31,
2008
Quarters Ended
(In thousands, except per share amounts)
Revenues . . ....................... $23,779 $23,576 $23,638 $22,980 $19,609 $18,600 $21,680 $20,928
Cost of revenues . . .................. 1,488 1,464 1,458 1,218 908 819 599 516
Gross profit .................. 22,291 22,112 22,180 21,762 18,701 17,781 21,081 20,412
Operating expenses:
Sales and marketing . . . ............ 12,258 13,437 12,599 11,414 10,601 10,326 10,625 11,745
General and administrative........... 6,509 6,395 6,211 5,814 5,703 5,480 5,540 4,643
Total operating expenses . . . ....... 18,767 19,832 18,810 17,228 16,304 15,806 16,165 16,388
Operating income from continuing
operations ....................... 3,524 2,280 3,370 4,534 2,397 1,975 4,916 4,024
Interest income and other income. ....... 21 8 13 19 18 59 74 133
Gain (loss) on foreign currency . . ....... (94) 320 (116) (187) 424 (69) (2) 141
Income from continuing operations before
income tax expense ................ 3,451 2,608 3,267 4,366 2,839 1,965 4,988 4,298
Income tax expense ................. 1,981 1,308 1,659 2,325 1,114 1,451 2,993 2,619
Income from continuing operations, net of
tax............................ 1,470 1,300 1,608 2,041 1,725 514 1,995 1,679
Income (loss) from discontinued
operations, net of tax . . . ............ 3,863 (1,595) (1,799) (1,703) (1,853) (2,303) (3,188) (2,685)
Net income (loss) . .................. $ 5,333 $ (295) $ (191) $ 338 $ (128) $ (1,789) $ (1,193) $ (1,006)
Basic net income (loss) per share from
Continuing operations ................ $ .09 $ .08 $ .10 $ .13 $ .12 $ .04 $ .14 $ .12
Discontinue operations . . . ............ $ .23 $ (.10) $ (.11) $ (.10) $ (.13) $ (.16) $ (.22) $ (.19)
Net income (loss) per share ............ $ .32 $ (.02) $ (.01) $ .02 $ (.01) $ (.13) $ (.08) $ (.07)
Diluted net income (loss) per share from: . .
Continuing operations ................ $ .09 $ .08 $ .10 $ .13 $ .11 $ .03 $ .12 $ .10
Discontinue operations . . . ............ $ .23 $ (.10) $ (.11) $ (.10) $ (.12) $ (.14) $ (.20) $ (.17)
Net income (loss) per share ............ $ .32 $ (.02) $ (.01) $ .02 $ (.01) $ (.11) $ (.07) $ (.06)
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
As of December 31, 2009, we carried out an evaluation, under the supervision and with the participation of the
Company’s management, including the Company’s Chief Executive Officer along with the Company’s Chief
Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures
pursuant to Exchange Act Rule 13a-15(e). Based upon that evaluation, the Company’s Chief Executive Officer
along with the Company’s Chief Financial Officer concluded that the Company’s disclosure controls and
procedures are effective as of December 31, 2009 to ensure that information required to be disclosed in the
reports that the Company files or submits under the Exchange Act, including this report, is recorded, processed,
summarized and reported, within the time periods specified in the Commission’s rules and forms, and to ensure that
information required to be disclosed in such reports is accumulated and communicated to management, including
the Company’s Chief Executive Officer and the Company’s Chief Financial Officer, to allow timely decisions
regarding required disclosure. For these purposes, “disclosure controls and procedures” means controls and other
procedures of the Company that are designed to ensure that information required to be disclosed by the Company in
the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within
the time periods specified in the Commission’s rules and forms. “Disclosure controls and procedures” include,
without limitation, controls and procedures designed to ensure that information required to be disclosed by the
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