Ambassadors Group, Inc. (Nasdaq:EPAX), a leading provider of
educational travel experiences and online education research
materials, today announced its results for the third quarter and
nine months ended September 30, 2011.
Overview
- Year-to-date net income of $10.8 million, or $0.60 per diluted
share, compared to $14.8 million, or $0.77 per diluted share, in
the same period last year.
- Gross revenue, from all sources including non-directly
delivered programs, for the nine months ended September 30, 2011 of
$150.2 million compared to $152.0 in the prior year period.
- Year-to-date reported total revenue of $64.5 million compared
to $71.3 million in the same period last year.
- Year-to-date gross margin of 38.0 percent compared to 40.6
percent in the same period last year.
- Maintained strong balance sheet and liquidity position; Cash
and cash equivalents and available-for-sale securities balance of
$52.6 million and no debt outstanding.
- Repurchased approximately 216,000 shares of common stock for
$1.5 million during the third quarter and paid quarterly dividend
of $0.06 per share.
- Enrolled revenue for 2012 programs is down 14 percent
year-over-year; enrolled revenue for the core Student Ambassadors
Programs is down 13 percent year-over-year.
Financial Highlights
(in thousands except percent and per share
data)
|
UNAUDITED |
|
|
|
|
Quarter ended
September 30, |
Nine months ended
September 30, |
|
2011 |
2010 |
2011 |
2010 |
Gross revenue, all travel programs |
$ 60,318 |
$ 65,105 |
$ 147,354 |
$ 149,831 |
Internet content and advertising revenue |
$ 934 |
$ 638 |
$ 2,851 |
$ 2,153 |
Gross margin, all travel programs |
$ 22,461 |
$ 25,111 |
$ 54,697 |
$ 59,915 |
Gross margin, internet content and
advertising |
$ 790 |
$ 524 |
$ 2,445 |
$ 1,822 |
Gross margin percentage |
38.0% |
39.0% |
38.0% |
40.6% |
Operating expense |
$ 15,796 |
$ 15,682 |
$ 43,833 |
$ 41,171 |
Net income before special items |
$ 6,466 |
$ 7,460 |
$ 11,929 |
$ 15,462 |
Net income |
$ 6,052 |
$ 7,142 |
$ 10,754 |
$ 14,836 |
Income per diluted share |
$ 0.34 |
$ 0.37 |
$ 0.60 |
$ 0.77 |
Commenting on the Company's results, Jeff Thomas, Ambassador
Group's President and Chief Executive Officer, said, "We completed
the peak 2011 summer travel season and it was consistent with our
tempered outlook. So far this year, we have traveled 23,437
delegates. This is a 7 percent decline versus last year, which
reflects the reduction in travelers on our non-core programs we
expected. However, we saw a 4 percent year-over-year increase
in delegates traveled on our flagship Student Ambassadors
Programs. We are pleased that our core product fared better,
but we are certainly disappointed with both the current year
performance and the early indicators for the 2012 campaign."
Thomas continued, "While feedback for our Student Ambassadors
Program remains positive underscored by continued strong Net
Promoter scores, we believe sustained economic uncertainty and
continued sluggish consumer confidence weighs on many families'
decision to send their child abroad. Looking to the 2012
travel season for our core product, we have 16,239 delegates
enrolled as of October 23, 2011, a decrease of 13 percent compared
to the same time last year. At the time we launched our
primary campaign, we faced a confluence of negative factors
including extreme stock market volatility, headlines associated
with future economic uncertainty and additional negative consumer
data. We believe these factors negatively influenced consumer
psychology at a critical point in time for our marketing efforts.
In response, we are implementing additional marketing
activities to increase travelers for 2012. This includes a
winter campaign push incorporating alternative marketing channels
particularly in the digital domain. We also have various
initiatives focused on staying engaged with delegate families to
increase their probability of conversion. At the same time,
and consistent with a disciplined spending approach, we will be
making necessary adjustments to our corporate operating budgets to
both offset these additional marketing costs and align our
infrastructure with expected revenue levels for 2012."
Thomas concluded, "This news curbs our expectations for 2012.
However, we continue to maintain a strong balance sheet with no
outstanding debt. This provides us the financial flexibility
to navigate the current environment and support the Company through
what will now be a longer recovery period than we had initially
envisioned. In the meantime, we remain committed to returning
capital to our shareholders."
Third Quarter 2011 Results
During the third quarter of 2011, total revenue of $26.7 million
declined 11 percent compared to $29.9 million during the prior year
quarter. The Company traveled 9,855 delegates, an 11 percent
decrease compared to 11,025 during the prior year quarter taking
into account a modest increase in delegates traveling on the core
Student Ambassadors Programs. The decrease in delegates
traveled and resulting travel-related revenue more than offset the
46 percent increase in internet content and advertising revenue
related to BookRags, the Company's internet research business. Net
income for the third quarter of 2011 was $6.1 million, or $0.34 per
diluted share, compared to net income of $7.1 million, or $0.37 per
diluted share, in the prior year period.
Gross margin for the quarter was $23.3 million, down from $25.6
million in the third quarter of 2010 primarily related to the
aforementioned revenue decline. Gross margin percentage
decreased to 38 percent from 39 percent in the prior year period
due to change in product destination mix and increased air travel
costs across all international programs. Gross margin is
calculated as the sum of gross revenue non-directly delivered
programs, gross revenue directly delivered programs and internet
content and advertising revenue less cost of sales non-directly
delivered programs, costs of sales directly delivered programs and
cost of sales internet content and advertising. Gross margin
percentage is calculated as gross margin divided by the sum of
gross revenue non-directly delivered programs, gross revenue
directly delivered programs and internet content and advertising
revenue.
Third quarter 2011 operating expenses of $15.8 million were
in-line with the prior year period.
Nine Months Ended September 30, 2011
Results
During the nine months ended September 30, 2011, total revenue
of $64.5 million declined 10 percent compared to $71.3 million in
the same period last year. The Company traveled 23,437
delegates, a 7 percent decrease compared to 25,224 delegates in the
same period last year. This decrease and resulting
travel-related revenue more than offset the 32 percent increase in
internet content and advertising revenue related to
BookRags. Net income for the nine months ended September 30,
2011 was $10.8 million, or $0.60 per diluted share, compared to net
income of $14.8 million, or $0.77 per diluted share, in the prior
year period.
Gross margin for the nine months ended September 30, 2011 was
$57.1 million, down from $61.7 million in the same period last
year. Gross margin percentage decreased to 38.0 percent from
40.6 percent in the same period last year primarily due to a change
in product destination mix and higher land and air travel costs
across all international programs.
Total operating expenses for the nine months ended September 30,
2011 increased 6 percent compared to the same period last year,
primarily due to higher legal expenses and incremental costs
associated with retention and marketing initiatives.
Balance Sheet and Liquidity
Total assets at September 30, 2011 were $108.9 million,
including $52.6 million in cash, cash equivalents and short-term
available-for-sale securities. Long-lived assets totaled $40.6
million reflecting goodwill and intangible assets of the BookRags
business, technology, hardware and systems used to deliver
services, and the Company's office building. Total liabilities
were $22.9 million, including $9.0 million in participant deposits
for future travel. The Company has no debt
outstanding. Deployable cash at September 30, 2011 was $46.1
million.
The Company paid a quarterly dividend of $0.06 per share on
September 8, 2011. In addition, during the third quarter of
2011, the Company repurchased approximately 216,000 shares for
approximately $1.5 million including brokerage fees. At
September 30, 2011, the Company had 17,495,344 shares of common
stock issued and outstanding.
The following table summarizes the cash flows as further
disclosed in the accompanying financial statements. Free cash
flow, a non-GAAP measure, which is defined as cash flow from
operations less purchase of property, equipment and intangibles, is
also noted (in thousands):
|
UNAUDITED |
|
Nine months ended
September 30, |
|
2011 |
2010 |
Cash flow from operations |
$(14,685) |
$8,896 |
Purchases of property, equipment and
intangibles |
(2,893) |
(4,259) |
Free cash flow |
(17,578) |
4,637 |
|
|
|
Net sale (purchase) of available-for-sale
securities |
26,447 |
(1,601) |
Dividend payments to shareholders |
(3,203) |
(3,452) |
Repurchase of common stock |
(7,590) |
(4,830) |
Other cash flows, net |
303 |
809 |
Net change in cash and cash equivalents |
$(1,621) |
$(4,437) |
The change in cash flow from operations between periods, and in
turn free cash flow, was driven primarily by an increase in prepaid
program costs and expenses in an effort to reduce risks associated
with rising air travel costs, a decline in participant deposits due
to the decline in enrollments for future travel periods and lower
net income year-over-year.
Deployable cash and free cash flow are non-GAAP measures defined
in the attached schedules.
Outlook for Full Year 2011
Based on current visibility for the balance of the year, the
Company is adjusting its previously provided guidance as
follows:
- Consolidated gross revenues for all programs and operations to
be down 4 percent to 5 percent compared to 2010;
- Consolidated gross margin as a percentage of gross revenue for
all programs and operations of 38.0 percent to 39.0 percent;
and
- Net income before any special items of between $4.0 million and
$5.0 million.
Special items for the quarter and year-to-date currently include
legal costs associated with the class action law suit and ongoing
SEC inquiry and the impact of de-designation of foreign currency
positions. A table outlining those special items is included
at the end of this release.
Outlook for 2012
As of October 23, 2011, enrolled revenue for 2012 travel
programs was $116.7 million, down 14 percent from the same point
last year, based on enrolled travelers of 18,029 compared to
21,346. These results reflect the expected decline in
enrollments in the Citizen and Leadership Ambassadors Programs as
the Company uses 2012 as a transition year to reposition these
programs. Enrolled revenue for the Company's core product,
Student Ambassadors, is down 13 percent to $111.8 million compared
to $128.3 million at the same date last year.
Enrolled revenue consists of estimated gross receipts to be
recognized, in the future, upon travel of an enrolled participant
and revenue recognized for any delegates who have completed travel.
Net enrollments consist of all participants who have enrolled in
the Company's programs less those that have already withdrawn.
Enrolled revenue may not result in actual gross receipts eventually
recognized by the Company due to both withdrawals from the
Company's programs and expected future enrollments.
Conference Call and Webcast Information
The Company will host a conference call to discuss third quarter
2011 results of operations on Thursday, October 27, 2011, at 11:30
a.m. Eastern Time (8:30 a.m. Pacific Time). Participants
can access the call via the internet at
www.ambassadorsgroup.com/EPAX. The call can also be
accessed by dialing 888-297-0353 or 719-325-2271
(international) and providing the pass code:
8334223. Approximately 24 hours following the
call, a webcast will be available through January 20, 2012 at
www.ambassadorsgroup.com/EPAX. A replay of the call will
also be available through November 1, 2011 and can be accessed
by dialing 888-203-1112 and providing the pass code:
8334223.
About Ambassadors Group, Inc.
Ambassadors Group, Inc. (Nasdaq:EPAX) is a socially conscious
education company located in Spokane, Washington. Ambassadors
Group, Inc. is the parent company of Ambassador Programs, Inc.,
World Adventures Unlimited, Inc. and BookRags, Inc., an educational
research website. The Company also oversees the Washington School
of World Studies, an accredited travel study and distance learning
school. Additional information about Ambassadors Group, Inc. and
its subsidiaries is available at www.ambassadorsgroup.com. In this
press release, "Company", "we", "us", and "our" refer to
Ambassadors Group, Inc. and its subsidiaries.
The Ambassadors Group, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3541
Forward-Looking Statements
This press release contains forward-looking statements regarding
actual and expected financial performance and the reasons for
variances between period-to-period results. Forward-looking
statements, which are included per the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995, may involve
known and unknown risks, uncertainties and other factors that may
cause actual results and performance in future periods to be
materially different from any future results or performance
suggested by the forward-looking statements in this release. Such
forward-looking statements speak only as of the date of this
release and may not reflect risks related to international unrest,
outbreak of disease, conditions in the travel industry, the direct
marketing environment, changes in economic conditions and changes
in the competitive environment. We expressly disclaim any
obligation to provide public updates or revisions to any
forward-looking statements found herein to reflect any changes in
expectations or any change in events. Although we believe the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, we can give no assurance that our
expectations will be met. For a more complete discussion of certain
risks and uncertainties that could cause actual results to differ
materially from anticipated results, please refer to the
Ambassadors Group, Inc. 10-K filed March 11, 2011, and its proxy
statement filed April 12, 2011.
AMBASSADORS GROUP,
INC. |
CONSOLIDATED STATEMENTS
OF OPERATIONS |
|
(in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED |
|
Quarter ended
September 30, |
|
2011 |
2010 |
$ Change |
% Change |
Net revenue, non-directly delivered programs
(1) |
$ 20,673 |
$ 21,991 |
(1,318) |
-6% |
Gross revenue, directly delivered
programs (2) |
5,135 |
7,307 |
(2,172) |
-30% |
Internet content and advertising revenue |
934 |
638 |
296 |
46% |
Total
revenue |
26,742 |
29,936 |
(3,194) |
-11% |
Cost of sales, directly delivered programs
(2) |
3,347 |
4,187 |
(840) |
-20% |
Cost of sales, internet content and
advertising |
144 |
114 |
30 |
26% |
Gross margin
(3) |
23,251 |
25,635 |
(2,384) |
-9% |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Selling and marketing |
11,872 |
11,811 |
61 |
1% |
General and administration |
3,924 |
3,871 |
53 |
1% |
Total operating expenses |
15,796 |
15,682 |
114 |
1% |
|
|
|
|
|
Operating
income |
7,455 |
9,953 |
(2,498) |
-25% |
|
|
|
|
|
Other income (expense) |
|
|
|
|
Interest and dividend income |
339 |
362 |
(23) |
-6% |
Foreign currency expense and other |
(15) |
15 |
(30) |
-200% |
Total other income |
324 |
377 |
(53) |
-14% |
Income before income
tax provision |
7,779 |
10,330 |
(2,551) |
-25% |
Income tax provision |
(1,727) |
(3,188) |
1,461 |
-46% |
Net
income |
$ 6,052 |
$ 7,142 |
$(1,090) |
-15% |
|
|
|
|
|
Weighted average shares outstanding –
basic |
17,611 |
18,979 |
(1,368) |
-7% |
Weighted average shares outstanding –
diluted |
17,693 |
19,185 |
(1,492) |
-8% |
|
|
|
|
|
Net income per share — basic |
$ 0.34 |
$ 0.38 |
$ (0.04) |
-11% |
Net income per share — diluted |
$ 0.34 |
$ 0.37 |
$ (0.03) |
-8% |
(1) Net revenue, non-directly delivered programs
consists of gross revenue, less program pass-through expenses for
non-directly delivered programs because we primarily engage
third-party operators to perform these services.
|
UNAUDITED |
|
Quarter ended
September 30, |
|
2011 |
2010 |
% Change |
Gross revenue |
$ 55,183 |
$ 57,798 |
-5% |
Cost of sales |
34,510 |
35,807 |
-4% |
Net revenue |
$ 20,673 |
$ 21,991 |
-6% |
(2) Gross revenue and cost of sales for directly
delivered programs are reported as separate items because we plan,
organize and operate all activities, including speakers,
facilitators, events, accommodations and transportation.
(3) Gross margin is calculated as the sum of gross
revenue non-directly delivered programs, gross revenue directly
delivered programs and internet content and advertising revenue
less cost of sales non-directly delivered programs, costs of sales
directly delivered programs and cost of sales internet content and
advertising. Gross margin percentage is calculated as gross
margin divided by the sum of gross revenue non-directly delivered
programs, gross revenue directly delivered programs and internet
content and advertising revenue.
AMBASSADORS
GROUP, INC. |
CONSOLIDATED
STATEMENTS OF OPERATIONS |
(in thousands,
except per share data) |
|
|
|
|
|
|
UNAUDITED |
|
Nine
months ended September 30, |
|
2011 |
2010 |
$
Change |
%
Change |
Net revenue, non-directly delivered programs
(1) |
$ 51,253 |
$ 53,227 |
$ (1,974) |
-4% |
Gross revenue, directly delivered
programs (2) |
10,357 |
15,956 |
(5,599) |
-35% |
Internet content and advertising revenue |
2,851 |
2,153 |
698 |
32% |
Total
revenue |
64,461 |
71,336 |
(6,875) |
-10% |
Cost of sales, directly delivered programs
(2) |
6,913 |
9,268 |
(2,355) |
-25% |
Cost of sales, internet content and
advertising |
406 |
331 |
75 |
23% |
Gross margin
(3) |
57,142 |
61,737 |
(4,595) |
-7% |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Selling and marketing |
31,406 |
30,194 |
1,212 |
4% |
General and administration |
12,427 |
10,977 |
1,450 |
13% |
Total operating expenses |
43,833 |
41,171 |
2,662 |
6% |
|
|
|
|
|
Operating
income |
13,309 |
20,566 |
(7,257) |
-35% |
|
|
|
|
|
Other income (expense) |
|
|
|
|
Interest and dividend income |
1,090 |
1,236 |
(146) |
-12% |
Foreign currency expense and other |
156 |
1 |
155 |
15500% |
Total other income |
1,246 |
1,237 |
9 |
1% |
Income before income
tax provision |
14,555 |
21,803 |
(7,248) |
-33% |
Income tax provision |
(3,801) |
(6,967) |
3,166 |
-45% |
Net
income |
$ 10,754 |
$ 14,836 |
$ (4,082) |
-28% |
|
|
|
|
|
Weighted average shares outstanding –
basic |
17,750 |
19,069 |
(1,319) |
-7% |
Weighted average shares outstanding –
diluted |
17,896 |
19,294 |
(1,398) |
-7% |
|
|
|
|
|
Net income per share — basic |
$ 0.61 |
$ 0.78 |
$ (0.17) |
-22% |
Net income per share — diluted |
0.60 |
$ 0.77 |
$ (0.17) |
-22% |
(1) Net revenue, non-directly delivered programs
consists of gross revenue, less program pass-through expenses for
non-directly delivered programs because we primarily engage
third-party operators to perform these services.
|
UNAUDITED |
|
Nine months ended
September 30, |
|
2011 |
2010 |
% Change |
Gross revenue |
$ 136,997 |
$ 133,875 |
2% |
Cost of sales |
85,744 |
80,648 |
6% |
Net revenue |
$ 51,253 |
$ 53,227 |
-4% |
(2) Gross revenue and cost of sales for directly
delivered programs are reported as separate items because we plan,
organize and operate all activities, including speakers,
facilitators, events, accommodations and transportation.
(3) Gross margin is calculated as the sum of gross
revenue non-directly delivered programs, gross revenue directly
delivered programs and internet content and advertising revenue
less cost of sales non-directly delivered programs, costs of sales
directly delivered programs and cost of sales internet content and
advertising. Gross margin percentage is calculated as gross
margin divided by the sum of gross revenue non-directly delivered
programs, gross revenue directly delivered programs and internet
content and advertising revenue.
AMBASSADORS GROUP,
INC. |
CONSOLIDATED BALANCE
SHEETS |
(in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED |
AUDITED |
|
September
30, |
December 31, |
|
2011 |
2010 |
2010 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 5,217 |
$ 3,219 |
$ 6,838 |
Available-for-sale securities |
47,398 |
74,615 |
72,540 |
Foreign currency exchange
contracts |
-- |
1,340 |
1,864 |
Prepaid program cost and expenses |
13,946 |
6,053 |
3,230 |
Accounts receivable |
1,140 |
956 |
1,976 |
Deferred tax asset |
597 |
-- |
-- |
Total current
assets |
68,298 |
86,183 |
86,448 |
Property and equipment, net |
26,652 |
28,912 |
27,625 |
Available-for-sale securities |
703 |
1,263 |
1,250 |
Intangibles |
3,398 |
3,253 |
3,367 |
Goodwill |
9,781 |
9,781 |
9,781 |
Other long-term assets |
85 |
110 |
85 |
Total assets |
$ 108,917 |
$ 129,502 |
$ 128,556 |
|
|
|
|
Liabilities and Stockholders'
Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued
expenses |
$ 11,375 |
$ 11,556 |
$ 5,954 |
Participants' deposits |
9,014 |
15,219 |
34,436 |
Foreign currency exchange
contracts |
1,225 |
-- |
-- |
Deferred tax liability |
-- |
109 |
668 |
Other liabilities |
105 |
114 |
107 |
Total current
liabilities |
21,719 |
26,998 |
41,165 |
Deferred tax liability |
1,177 |
54 |
1,353 |
Total liabilities |
22,896 |
27,052 |
42,518 |
Stockholders' equity |
86,021 |
102,450 |
86,038 |
Total liabilities and stockholders'
equity |
$ 108,917 |
$ 129,502 |
$ 128,556 |
|
AMBASSADORS GROUP,
INC. |
CONSOLIDATED STATEMENTS
OF CASH FLOWS |
(in
thousands) |
|
|
|
|
UNAUDITED |
|
September
30, |
|
2011 |
2010 |
Cash flows from operating
activities: |
|
|
Net income |
$ 10,754 |
$ 14,836 |
Adjustments to reconcile net income to net
cash provided by operating activities: |
|
|
Depreciation and
amortization |
3,573 |
3,500 |
Stock-based compensation |
1,294 |
1,551 |
Deferred income tax
benefit |
(619) |
(321) |
Loss on disposition and
impairment of property and equipment |
123 |
419 |
Excess tax benefit from
stock-based compensation |
(27) |
(77) |
Change in assets and
liabilities: |
|
|
Accounts receivable and other
assets |
836 |
1,064 |
Prepaid program costs and
expenses |
(10,716) |
(2,878) |
Accounts payable, accrued
expenses, and other current liabilities |
5,519 |
6,721 |
Participants' deposits |
(25,422) |
(15,919) |
Net cash provided (used) by operating
activities |
(14,685) |
8,896 |
|
|
|
Cash flows from investing
activities: |
|
|
Purchase of available for sale
securities |
(48,674) |
(52,961) |
Proceeds from sale of
available-for-sale securities |
75,121 |
51,360 |
Purchase and construction of
property and equipment |
(2,536) |
(3,534) |
Proceeds from sale of property
and equipment |
49 |
75 |
Purchase of intangibles |
(357) |
(725) |
Net cash provided (used) in investing
activities |
23,603 |
(5,785) |
|
|
|
Cash flows from financing
activities: |
|
|
Repurchase of Common Stock |
(7,590) |
(4,830) |
Dividend payment to
shareholders |
(3,203) |
(3,452) |
Proceeds from exercise of stock
options |
227 |
657 |
Excess tax benefit from
stock-based compensation |
27 |
77 |
Net cash used in financing
activities |
(10,539) |
(7,548) |
|
|
|
Net decrease in cash and cash
equivalents |
(1,621) |
(4,437) |
Cash and cash equivalents, beginning of
period |
6,838 |
7,656 |
Cash and cash equivalents, end of
period |
$ 5,217 |
$ 3,219 |
Deployable Cash
Deployable cash is a non-GAAP liquidity measurement and is
calculated as the sum of cash and cash equivalents, short-term
available-for-sale securities, and prepaid program costs and
expenses, less the sum of accounts payable, accrued expenses and
other short-term liabilities (excluding deferred taxes) and
participant deposits. We believe this non-GAAP measurement is
useful to investors in understanding important characteristics of
our business.
The following summarizes deployable cash as September 30, 2011
and 2010 and December 31, 2010 (in thousands):
|
UNAUDITED |
|
September
30, |
December 31, |
|
2011 |
2010 |
2010 |
Cash, cash equivalents and short-term
available-for-sale securities |
$ 52,615 |
$ 77,834 |
$ 79,378 |
Prepaid program cost and expenses |
13,946 |
6,053 |
3,230 |
Less: Participants' deposits |
(9,014) |
(15,219) |
(34,436) |
Less: Accounts payable / accruals / other
liabilities |
(11,480) |
(11,670) |
(6,061) |
Deployable cash |
$ 46,067 |
$ 56,998 |
$ 42,111 |
Special Items
The Company impaired assets and incurred losses on the sale of
equipment primarily related to its print facility and moving those
activities to an outsourced vendor. Also, the Company recognized a
foreign currency gain from de-designating Japanese Yen
contracts.
Lastly, as previously disclosed, the Company was party to a
shareholder class action suit and is party to an inquiry by the
U.S. Securities and Exchange Commission ("SEC") more fully
described in the Company's filings with the SEC on Form 10-K and
10-Q available on the Company's website www.ambassadorsgroup.com or
at the SEC website www.sec.gov.
As a result of these events, the operations as presented in the
accompanying financial statements for the nine months ended
September 30, 2011 and 2010 do not reflect a meaningful comparison
between periods or in relation to the operational activities of the
Company. In order to provide more meaningful disclosure, the
following table represents a reconciliation of certain earnings
measures before special items to those same items after the impact
of special items (in thousands except per share data):
|
UNAUDITED |
|
Net
Income |
EPS |
|
Three months
ended September 30, |
Three months
ended September 30, |
|
|
|
2011 |
2010 |
2011 |
2010 |
Amount before special
items |
$ 6,466 |
$ 7,460 |
$ 0.36 |
$ 0.39 |
Asset impairments and loss on sale |
(56) |
(146) |
-- |
(0.01) |
Legal fees – class action and SEC,
net |
(476) |
(314) |
(0.03) |
(0.02) |
Tax impact |
118 |
142 |
0.01 |
0.01 |
Amount per consolidated statement of
operations |
$ 6,052 |
$ 7,142 |
$ 0.34 |
$ 0.37 |
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED |
|
Net
Income |
EPS |
|
Nine months ended
September 30, |
Nine months ended
September 30, |
|
2011 |
2010 |
2011 |
2010 |
Amount before special
items |
$ 11,929 |
$ 15,462 |
$ 0.67 |
$ 0.80 |
Asset impairments and loss on sale |
(122) |
(389) |
(0.01) |
(0.02) |
Foreign currency de-designation gain |
183 |
-- |
0.01 |
-- |
Legal fees – class action and SEC,
net |
(1,651) |
(531) |
(0.09) |
(0.03) |
Tax impact |
415 |
294 |
0.02 |
0.02 |
Amount per consolidated statement of
operations |
$ 10,754 |
$ 14,836 |
$ 0.60 |
$ 0.77 |
CONTACT: Anthony Dombrowik
(509) 568-7800
Investor Relations:
Stacy Feit
Financial Relations Board
(213) 486-6549
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