| Segment Reporting |
10. 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 nine months ended September 30, 2013 and 2012 were as follows (in thousands):
| | Three months ended September 30, 2013 | | Three months ended September 30, 2012 | | | | Ambassador Programs and Other1 | | | | | | Ambassador Programs and Other1 | | | | | | | | | | | | | | | BookRags | | Consolidated | | BookRags | | Consolidated | | Total revenue | $ | 21,367 | | $ | 910 | | $ | 22,277 | | $ | 21,529 | | $ | 903 | | $ | 22,432 | | Gross margin | $ | 17,239 | | $ | 785 | | $ | 18,024 | | $ | 18,256 | | $ | 785 | | $ | 19,041 | | Depreciation and amortization | $ | 1,230 | | $ | 141 | | $ | 1,371 | | $ | 1,236 | | $ | 138 | | $ | 1,374 | | Operating income (loss) | $ | (2,878 | ) | $ | 249 | | $ | (2,629 | ) | $ | 3,991 | | $ | 239 | | $ | 4,230 | | Income tax benefit (provision) | $ | 1,004 | | $ | (61 | ) | $ | 943 | | $ | 569 | | $ | 93 | | $ | 662 | | Net income (loss) | $ | (1,803 | ) | $ | 189 | | $ | (1,614 | ) | $ | 5,131 | | $ | 354 | | $ | 5,485 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2013 | | Nine months ended September 30, 2012 | | | | Ambassador Programs and Other1 | | | | | | | | Ambassador Programs and Other1 | | | | | | | | | | | | | | | | | | | | | BookRags | | Consolidated | | BookRags | | Consolidated | | Total revenue | $ | 46,714 | | $ | 2,938 | | $ | 49,652 | | $ | 53,597 | | $ | 3,106 | | $ | 56,703 | | Gross margin | $ | 39,661 | | $ | 2,558 | | $ | 42,219 | | $ | 47,425 | | $ | 2,685 | | $ | 50,110 | | Depreciation and amortization | $ | 3,655 | | $ | 433 | | $ | 4,088 | | $ | 3,373 | | $ | 413 | | $ | 3,786 | | Operating income (loss) | $ | (3,838 | ) | $ | 958 | | $ | (2,880 | ) | $ | 10,480 | | $ | 1,058 | | $ | 11,538 | | Income tax benefit (provision) | $ | 1,269 | | $ | (350 | ) | $ | 919 | | $ | (1,110 | ) | $ | (100 | ) | $ | (1,210 | ) | Net income (loss) | $ | (2,190 | ) | $ | 609 | | $ | (1,581 | ) | $ | 10,767 | | $ | 1,010 | | $ | 11,777 | | Total additions to property and equipment, net | $ | 2,501 | | $ | 313 | | $ | 2,814 | | $ | 4,290 | | $ | 289 | | $ | 4,579 | | Total additions to intangibles | $ | - | | $ | 251 | | $ | 251 | | $ | - | | $ | 418 | | $ | 418 | | Intangibles | $ | - | | $ | 3,529 | | $ | 3,529 | | $ | - | | $ | 3,541 | | $ | 3,541 | | Total assets | $ | 67,672 | | $ | 15,059 | | $ | 82,731 | | $ | 87,940 | | $ | 17,295 | | $ | 105,235 | |
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. |