Travelzoo Tramples the Numbers: Fool by Numbers

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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:

• Feeding Time at Travelzoo
• Travelzoo's a Gazelle Again
• Travelzoo Trumpets: Fool by Numbers

Priceline.com is a Stock Advisor recommendation. To find out all the reasons why, take a free 30-day trial to the newsletter service today.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.