Travelzoo Inc. (TZOO) has reported an 116.78 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $0.94 million, or $0.07 a share in the quarter, compared with $0.44 million, or $0.03 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $0.94 million, or $0.07 a share compared with $0.44 million or $0.03 a share, a year ago.
Revenue during the quarter dropped 8.70 percent to $29.26 million from $32.05 million in the previous year period. Gross margin for the quarter expanded 212 basis points over the previous year period to 88.62 percent. Total expenses were 93.37 percent of quarterly revenues, down from 96.95 percent for the same period last year. This has led to an improvement of 358 basis points in operating margin to 6.63 percent.
Operating income for the quarter was $1.94 million, compared with $0.98 million in the previous year period.
"We completed 2016 with the successful launch of the new Travelzoo site along with increased operating profits and cash flows," said Holger Bartel, chairman and Global chief executive officer. "In 2017, we will further increase the number of exclusive offers negotiated for our members."
Operating cash flow improves significantly
Travelzoo Inc. has generated cash of $8.72 million from operating activities during the year, up 108.06 percent or $4.53 million, when compared with the last year.
The company has spent $0.91 million cash to meet investing activities during the year as against cash outgo of $1.22 million in the last year.
The company has spent $15.26 million cash to carry out financing activities during the year as against cash outgo of $20.01 million in the last year period.
Cash and cash equivalents stood at $26.84 million as on Dec. 31, 2016, down 23.60 percent or $8.29 million from $35.13 million on Dec. 31, 2015.
Working capital declines
Travelzoo Inc. has witnessed a decline in the working capital over the last year. It stood at $14.64 million as at Dec. 31, 2016, down 8.74 percent or $1.40 million from $16.05 million on Dec. 31, 2015. Current ratio was at 1.49 as on Dec. 31, 2016, up from 1.39 on Dec. 31, 2015.
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