Travelzoo 2015 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 of the 2015 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 132

  • 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
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

44
Europe net revenues decreased $3.8 million in 2015 compared to 2014 (see “Revenues” above). Europe expenses
decreased $1.9 million from 2014 to 2015. This decrease was primarily due to a $2.1 million decrease in salary and employee
related expense due in part to a decrease in headcount, a $1.1 million decrease in search traffic acquisition costs offset by a $1.9
million increase in member acquisition and marketing costs.
Europe net revenues decreased $64,000 in 2014 compared to 2013 (see “Revenues” above). Europe expenses increased
$2.0 million from 2013 to 2014. This increase was primarily due to a $1.8 million increase in member acquisition costs.
Foreign currency movements relative to the U.S. dollar negatively impacted our local currency income from our
operations in Europe by approximately $41,000 for 2015. Foreign currency movements relative to the U.S. dollar positively
impacted our local currency income from our operations in Europe by approximately $325,000 for 2014. Foreign currency
movements relative to the U.S. dollar negatively impacted our local currency income from our operations in Europe by
approximately $55,000 for 2013.
North America
Year Ended December 31,
2015 2014 2013
(In thousands)
Revenues $ 88,901 $ 96,191 $ 112,520
Income from operations $ 5,710 $ 7,787 $ 16,769
Income from operations as a % of revenues 6% 8% 15%
North America net revenues decreased $7.3 million in 2015 compared to 2014 (see “Revenues” above). North America
expenses decreased $5.2 million from 2014 to 2015. This decrease was primarily due to a $5.5 million decrease in salary and
employee related expense due in part to a decrease in headcount offset by a $1.0 million increase in member acquisition costs.
North America net revenues decreased $16.3 million in 2014 compared to 2013 (see “Revenues” above). North America
expenses decreased $7.3 million from 2014 to 2013. This decrease was primarily due to a $5.3 million decrease in Search
traffic acquisition costs and a $1.3 million decrease in salary and employee related expense.
Liquidity and Capital Resources
As of December 31, 2015, we had $35.1 million in cash and cash equivalents, of which $22.6 million was held outside
the U.S. in certain of our foreign operations. If these assets are distributed to the U.S., we may be subject to additional U.S.
taxes in certain circumstances. Cash and cash equivalents decreased from $55.4 million as of December 31, 2014 primarily as a
result of cash used in acquiring the Travelzoo Asia Pacific business, effect of exchange rate changes on cash and cash
equivalents, partially offset by cash provided by operating activities as explained below. We expect that cash on hand will be
sufficient to provide for working capital needs for at least the next twelve months.
Year Ended December 31,
2015 2014 2013
( In thousands)
Net cash provided by operating activities $ 4,192 $ (1,587) $ 15,963
Net cash used in investing activities (1,218)(3,587)(3,603)
Net cash used in financing activities (20,012)(4,693)(8,452)
Effect of exchange rate changes on cash and cash equivalents (3,251)(3,384) 71
Net increase (decrease) in cash and cash equivalents $(20,289) $ (13,251) $ 3,979
Net cash provided by operating activities is net income adjusted for certain non-cash items and changes in assets and
liabilities. Net cash provided by operating activities was $4.2 million for 2015, which consisted of a net income of $10.9
million, adjustments for non-cash items of $4.0 million and a $10.6 million decrease in cash from changes in operating assets