Travelzoo 2013 Annual Report Download - page 105

Download and view the complete annual report

Please find page 105 of the 2013 Travelzoo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

70
Option activities during the years ended December 31, 2011, 2012, and 2013 were as follows:
Shares Weighted-Average
Exercise Price
Weighted-Average
Remaining
Contractual Life
Aggregate
Intrinsic
Value
(In thousands)
Outstanding at January 1, 2011 317,725 $ 14.26 8.44 years $ 8,616
Exercised (17,725) $ 2.28
Outstanding at December 31, 2011 300,000 $ 14.97 7.89 years $ 2,883
Exercisable and fully vested at
December 31, 2011 75,000 $ 14.97 7.89 years $ 721
Outstanding at January 1, 2012 300,000 $ 14.97
Options granted 100,000 $ 28.98
Outstanding at December 31, 2012 400,000 $ 18.47 7.43 years $ 1,206
Exercisable and fully vested at
December 31, 2012 150,000 $ 14.97 6.89 years $ 603
Outstanding at January 1, 2013 400,000 $ 18.47
Options granted 75,000 $ 29.58
Outstanding at December 31, 2013 475,000 $ 20.23 6.93 years $ 1,905
Exercisable and fully vested at
December 31, 2013 250,000 $ 16.37 6.10 years $ 1,429
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the
Company’s closing stock price on the last trading day of years ended December 31, 2013, 2012 and 2011 and the exercise
price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option
holders exercised their options on December 31, 2013, 2012, and 2011. This amount changes based on the fair market value of
the Company’s stock. The Company’s policy is to issue shares from the authorized shares to fulfill stock option exercises.
The total intrinsic value of options exercised in the year ended December 31, 2011 was $628,000.
Outstanding options at December 31, 2013 were as follows:
Exercise Price Shares
Outstanding
Options
Outstanding
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
Shares
Outstanding
and
Exercisable
Options
Exercisable
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
$ 14.97 300,000 5.89 years $ 14.97 225,000 5.89 years $ 14.97
$ 28.98 100,000 8.07 years $ 28.98 25,000 8.07 years $ 28.98
$ 29.58 75,000 9.56 years $ 29.58 — — $ 29.58
Note 10: Stock Repurchase Program
The Company's repurchase programs assist in offsetting the impact of dilution from employee equity compensation and
for capital allocation purposes. Management is allowed discretion in the execution of the repurchase program based upon
market conditions and consideration of capital allocation.
In August 2011, the Company announced a share repurchase program authorizing the repurchase of up to 500,000 shares
of common stock. During the year ended December 31, 2011, the Company repurchased 500,000 shares of common stock for
an aggregate purchase price of $15.1 million and completed the share repurchases under this program. The 500,000
repurchased shares were recorded as part of treasury stock as of December 31, 2011 and were retired as of December 31, 2012.