On Feb. 6, Internet publisher of travel information Travelzoo (NASDAQ:TZOO) released fourth-quarter earnings for the period ended Dec. 31.

  • To get the full tour of Travelzoo, read the earnings take here.
  • Revenues increased 27% to $17.7 million, with the bottom line increasing 159% year over year. This was achieved by an increase in revenue combined with lower operating expenses.
  • The revenues from the North America business segment, which accounts for 95% of the company's sales, increased by 23%.
  • With only $23,000 in capital expenditure this quarter, the company is sitting on a large chunk of free cash flow at $5.4 million, up 182%.
  • Travelzoo only has a one-star rating (out of five) in CAPS, The Motley Fool's interactive stock database.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$17,652

$13,901

27.0%

Net Profit

$4,285

$1,654

159.1%

EPS

$0.26

$0.10

160.0%

Diluted Shares

16,459

17,409

(5.5%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

98.6%

98.2%

0.3

Operating Margin

43.5%

25.4%

18.1

Net Margin

24.3%

11.9%

12.4

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$33,415

$44,356

(24.7%)

Accounts Rec.

$7,274

$9,020

(19.4%)


Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$2,839

$2,373

19.6%

Long-Term Debt

N/A

N/A

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

Q4 2006

Q4 2005

Change

Cash From Ops.

$5,472

$1,975

177.1%

Capital Expenditures

$23

$39

(41.0%)

Free Cash Flow

$5,449

$1,936

181.5%



Find out why Fools always follow the money.

Related Companies:

  • Expedia (NASDAQ:EXPE)
  • Priceline.com (NASDAQ:PCLN)
  • Sabre Holdings (NYSE:TSG)

Related Foolishness:

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