| Segment Reporting |
8. Segment Reporting
Ambassador Programs and Other's gross margin is comprised of gross receipts less direct program costs, including accommodations, transportation, speakers, facilitators, and event costs. BookRags' gross margin is comprised of content and subscription and advertising revenues via www.BookRags.com, less affiliate commissions and amortization of intangible assets directly associated with sales.
Segment information for the three and six months ended June 30, 2013 and 2012 were as follows (in thousands):
| | Three months ended June 30, 2013 | | Three months ended June 30, 2012 | | | | Ambassador Programs | | | | | | | | | Ambassador Programs | | | | | | | | | | and Other1 | | BookRags | | Consolidated | | | and Other1 | | BookRags | | Consolidated | Total revenue | | $ | 23,453 | | $ | 1,029 | | $ | 24,482 | | $ | 30,801 | | $ | 1,005 | | $ | 31,806 | Gross margin | | $ | 21,900 | | $ | 903 | | $ | 22,803 | | $ | 28,788 | | $ | 872 | | $ | 29,660 | Depreciation and amortization | | $ | 1,255 | | $ | 131 | | $ | 1,386 | | $ | 1,096 | | $ | 133 | | $ | 1,229 | Operating income | | $ | 12,165 | | $ | 377 | | $ | 12,542 | | $ | 18,451 | | $ | 342 | | $ | 18,793 | Income tax provision | | $ | 4,442 | | $ | 169 | | $ | 4,611 | | $ | 5,160 | | $ | 48 | | $ | 5,208 | Net income | | $ | 7,884 | | $ | 208 | | $ | 8,092 | | $ | 13,884 | | $ | 314 | | $ | 14,198 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended June 30, 2013 | | Six months ended June 30, 2012 | | | | Ambassador Programs | | | | | | | | | Ambassador Programs | | | | | | | | | | and Other1 | | BookRags | | Consolidated | | | and Other1 | | BookRags | | Consolidated | Total revenue | | $ | 25,347 | | $ | 2,028 | | $ | 27,375 | | $ | 32,068 | | $ | 2,203 | | $ | 34,271 | Gross margin | | $ | 22,422 | | $ | 1,773 | | $ | 24,195 | | $ | 29,169 | | $ | 1,900 | | $ | 31,069 | Depreciation and amortization | | $ | 2,419 | | $ | 292 | | $ | 2,711 | | $ | 2,137 | | $ | 275 | | $ | 2,412 | Operating income (loss) | | $ | (960) | | $ | 709 | | $ | (251) | | $ | 6,489 | | $ | 819 | | $ | 7,308 | Income tax provision (benefit) | | $ | (265) | | $ | 289 | | $ | 24 | | $ | 1,679 | | $ | 193 | | $ | 1,872 | Net income (loss) | | $ | (387) | | $ | 420 | | $ | 33 | | $ | 5,636 | | $ | 656 | | $ | 6,292 | Total additions to property and equipment | $ | 1,600 | | $ | 189 | | $ | 1,789 | | $ | 3,283 | | $ | 113 | | $ | 3,396 | Total additions to intangibles | $ | - | | $ | 164 | | $ | 164 | | $ | - | | $ | 293 | | $ | 293 | Intangibles | $ | - | | $ | 3,540 | | $ | 3,540 | | $ | - | | $ | 3,505 | | $ | 3,505 | Total assets | | $ | 108,061 | | $ | 15,409 | | $ | 123,470 | | $ | 132,802 | | $ | 17,199 | | $ | 150,001 |
1Ambassador Programs and Other include all travel programs offered by Ambassador Programs and World Adventures Unlimited as well as corporate overhead.
Any intercompany sales or services provided are eliminated upon consolidation. |