On Tuesday, Travelzoo (NASDAQ:TZOO) released Q3 earnings for the period ended Sept. 30.

  • Travelzoo's European operations grew sales by more than 160%.
  • The company increased its operating margins by 48%, or 15 percentage points.
  • For the full analysis on Travelzoo, see our Take on the company's earnings.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$18.2

$17.6

$13.4

31.4%

Net Profit

--

$4.6

$2.3

98%

EPS

$0.24

$0.28

$0.13

115.4%

Diluted Shares

--

16.5

17.7

(7%)



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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

98.68%

98.32%

0.36

Operating Margin

46.24%

31.23%

15.01

Net Margin

25.88%

17.17%

8.71

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$28.0

$42.6

(34.4%)

Accounts Rec.

$8.83

$8.3

6.3%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$2.5

$0.7

256.6%



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$11.84

$6.15

92.5%

Capital Expenditures

$0.1

$0.12

(17.9%)

Free Cash Flow

$11.7

$6.03

94.6%



Find out why Fools always follow the money.

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  • Expedia (NASDAQ:EXPE)
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  • Sabre Holdings (NYSE:TSG)

Related Foolishness:

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