Travelzoo 2014 Annual Report Download - page 113

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Note 14: Unaudited Quarterly Information
The following represents unaudited quarterly financial data (in thousands, except per share amounts) for 2014 and 2013:
Quarter Ended
Dec 31,
2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Revenues $ 31,498 $ 33,500 $ 36,883 40,195 $ 37,474 $ 37,256 $ 41,327 $ 42,177
Cost of revenues 4,280 4,475 4,374 4,777 4,670 4,322 4,425 3,985
Gross profit 27,218 29,025 32,509 35,418 32,804 32,934 36,902 38,192
Operating expenses:
Sales and marketing 16,550 17,535 15,305 17,843 17,305 18,449 19,457 19,659
General and
administrative 11,266 11,056 10,570 10,578 11,026 10,510 9,651 10,497
Unexchanged
promotional shares (1,833) (2,250) (3,500) — — 22,000 — —
Total operating
expenses 25,983 26,341 22,375 28,421 28,331 50,959 29,108 30,156
Income (loss) from
operations 1,235 2,684 10,134 6,997 4,473 (18,025) 7,794 8,036
Other income (expense) (47) 10 56 122 62 224 112 31
Income (loss) before income
tax 1,188 2,694 10,190 7,119 4,535 (17,801) 7,906 8,067
Income taxes (66) 158 2,266 2,481 1,305 1,235 2,706 2,472
Net income (loss) $ 1,254 $ 2,536 $ 7,924 $ 4,638 $ 3,230 $ (19,036) $ 5,200 $ 5,595
Basic net income (loss) per
share 0.09 0.17 0.54 0.31 0.21 (1.24) 0.34 0.36
Diluted net income (loss)
per share $ 0.09 $ 0.17 $ 0.54 $ 0.31 $ 0.21 $ (1.24) $ 0.34 $ 0.36
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
As of December 31, 2014, 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, 2014 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 Company in the reports that it files or submits
under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive
and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding
required disclosure.