Travelzoo Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company's revenues were $37,475,000 against $37,028,000 a year ago. Income from operations was $4,473,000 against $4,357,000 a year ago. Income before income taxes was $4,534,000 against $4,449,000 a year ago. Net income was $3,230,000 or $0.21 per diluted share against $3,757,000 or $0.24 per diluted share a year ago. Net cash used in operating activities was $1,815,000 against net cash provided by operating activities of $13,010,000 a year ago. Purchases of property and equipment were $1,866,000 against $698,000 a year ago. Earnings per share are lower than prior year's earnings per share due primarily to increased taxes compared to prior period.

For the year, the company's revenues were $158,234,000 against $151,168,000 a year ago. Income from operations was $2,278,000 against $25,489,000 a year ago. Income before income taxes was $2,707,000 against $25,798,000 a year ago. Net loss was $5,011,000 or $0.33 per basic and diluted share against income of $18,198,000 or $1.14 per diluted share a year ago. Net cash provided by operating activities was $16,852,000 against $36,700,000 a year ago. Purchases of property and equipment were $5,461,000 against $2,744,000 a year ago. Non-GAAP operating income was $24,278,000 against $28,489,000 a year ago. Non-GAAP net income was $16,989,000 or $1.11 per share against $21,198,000 or $1.33 per share a year ago. The business generated $10.5 million in adjusted operating cash flow. This cash flow is adjusted for $12.3 million cash payment made this quarter to settle a portion of the disputes over the unclaimed property, which was accrued last quarter as part of that $22 million charge.

In the first quarter of 2014, the company will put the stronger focus on profitability, which could result in an revenue decline of approximately $1.5 million from SuperSearch product versus the prior year period; they expect local revenue with will be seasonally lower; and expect to continue investment in the hotel booking platform, resulting in approximately $0.05 EPS impact, about $0.01 more than the impact in fourth quarter of 2013.