Travelzoo 2015 Annual Report Download - page 121

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Note 14: Unaudited Quarterly Information
The following represents unaudited quarterly financial data (in thousands, except per share amounts) for 2015 and 2014:
Quarter Ended
Dec 31,
2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Revenues $ 32,051 $ 33,728 $ 36,792 39,145 $ 34,291 $ 36,307 $ 39,599 $ 43,043
Cost of revenues 4,328 4,742 5,208 4,546 4,640 4,813 4,648 5,073
Gross profit 27,723 28,986 31,584 34,599 29,651 31,494 34,951 37,970
Operating expenses:
Sales and marketing 17,161 19,089 20,715 22,077 20,729 21,570 19,298 21,914
General and
administrative 6,270 6,120 5,335 6,451 7,603 7,220 7,139 7,040
Product Development 3,316 2,917 3,206 3,089 2,956 3,108 2,786 2,476
Unexchanged
promotional shares — — — — (1,833)(2,250)(3,500) —
Total operating
expenses 26,747 28,126 29,256 31,617 29,455 29,648 25,723 31,430
Income from operations 976 860 2,328 2,982 196 1,846 9,228 6,540
Other income (expense) (376) (202) (218)(446)(348) 95 154 190
Income (loss) before income
tax 600 658 2,110 2,536 (152) 1,941 9,382 6,730
Income taxes 165 (8,199) 1,268 1,806 (66) 158 2,266 2,481
Net income (loss) $ 435 $ 8,857 $ 842 $ 730 $ (86) $ 1,783 $ 7,116 $ 4,249
Basic net income (loss) per
share $ 0.03 $ 0.60 $ 0.06 $ 0.05 $ (0.01) $ 0.12 $ 0.48 $ 0.29
Diluted net income (loss)
per share $ 0.03 $ 0.60 $ 0.06 $ 0.05 $ (0.01) $ 0.12 $ 0.48 $ 0.29
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
As of December 31, 2015, 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, 2015 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.