Ambassadors Group, Inc. (Nasdaq:EPAX), a leading provider of
educational travel experiences and online education research
materials, today announced its results for the fourth quarter and
year ended December 31, 2011.
Overview
- Full year 2011 net income of $3.0 million, or $0.17 per diluted
share, compared to $8.1 million, or $0.42 per diluted share, in
2010. Net income before special items of $4.6 million for
2011.
- 2011 gross revenue, from all sources including non-directly
delivered travel programs, of $155.1 million compared to $162.0
million in 2010, down 4.3 percent year-over-year.
- Full year total revenue reported of $66.4 million compared to
$76.1 million last year.
- 2011 gross margin of 38.1 percent compared to 40.8 percent in
2010.
- Maintained strong balance sheet and liquidity position; cash
and cash equivalents and available-for-sale securities balance of
$58.6 million and no debt outstanding.
- Traveled 23,928 delegates during 2011 compared to 26,657
delegates last year.
- Enrolled revenue for 2012 programs is down 10.5 percent
year-over-year; enrolled revenue for the core Student Ambassadors
Programs is down 9.6 percent year-over-year.
Financial
Highlights |
|
|
|
|
(in thousands except percent and per
share data) |
|
|
UNAUDITED |
|
Quarter ended
December 31, |
Year ended
December 31, |
|
2011 |
2010 |
2011 |
2010 |
Gross revenue, all travel programs |
$3,679 |
$9,091 |
$151,035 |
$158,922 |
Internet content and advertising revenue |
$1,195 |
$952 |
$4,046 |
$3,105 |
Gross revenue, all sources |
$4,874 |
$10,043 |
$155,081 |
$162,027 |
Gross margin, all travel programs |
$873 |
$3,535 |
$55,570 |
$63,450 |
Gross margin, internet content and
advertising |
$1,026 |
$829 |
$3,471 |
$2,651 |
Gross margin percentage |
39.0% |
43.5% |
38.1% |
40.8% |
Operating expense |
$13,098 |
$14,834 |
$56,931 |
$56,005 |
Net income (loss) before special items |
$(7,488) |
$(6,014) |
$4,565 |
$9,519 |
Net income (loss) |
$(7,798) |
$(6,720) |
$2,956 |
$8,116 |
Income (loss) per diluted share |
$(0.45) |
$(0.36) |
$0.17 |
$0.42 |
Commenting on the Company's results, Jeff Thomas, Ambassador
Group's President and Chief Executive Officer, said, "We entered
2011 cautiously optimistic about the recovery of the student travel
industry. As the year progressed, we did not see as strong of a
rebound as we had anticipated. While we traveled four percent
more delegates on our core Student Ambassadors program in 2011, we
traveled fewer delegates on our non-core programs, Citizens and
Student Leadership. Across all programs, the number of
delegates declined 10 percent compared to 2010. This decline
coupled with margin pressure stemming primarily from higher air
transportation costs impacted our profitability in 2011. While
the student travel industry as a whole has experienced similar
traveler declines and cost pressures, this difficult operating
environment has increased our cost to acquire a traveler to a level
that we acknowledge must be reduced to improve our long-term
profitability profile."
Thomas continued, "In the face of declines for the 2012 travel
season, we are focused on additional initiatives to improve
enrollments. At the time of our last update, our enrolled
revenue for the core Student Ambassadors Program was down 13
percent year-over-year. Through our winter campaign and other
initiatives, we were able to generate additional Student Ambassador
enrollments for the upcoming travel season thereby improving our
enrolled revenue, which is now down 9.6 percent
year-over-year. Having completed the majority of our sales and
marketing activities for the 2012 travel season, we are now focused
on our retention efforts.
"Looking further ahead, we are confident that we have
opportunities to expand our business and are focused on several
initiatives to strengthen our business over the next several
years. We are working to increase the productivity of our
marketing budget by augmenting the third party analytics we employ
to better target prospective travelers in more favorable
demographics while also continuing to invest in a long-term digital
strategy. To that end, our recent digital promotions have
generated a substantial number of high quality leads, which we
believe is a positive step on the path to conversion in the digital
arena. In addition, we plan to align ourselves with other
student and educational organizations and are in the process of
finalizing a strategic branding opportunity with a nationally
recognized educational publishing company, which we believe will
significantly increase our visibility among our target consumer
base. Through these strategic initiatives, our intent is to
make our upfront fixed marketing costs more effective with an eye
toward traveling a greater number of delegates and improving the
profitability of our business. Our operations will continue to
be volume dependent and a bulk of our marketing budget will
continue to be expended in the year in advance of the following
peak travel season. We believe a more focused marketing effort
will improve the productivity of our campaigns, ultimately
improving our cost to acquire travelers as student travel industry
volumes recover."
Thomas concluded, "In order to better align our corporate cost
structure with our anticipated 2012 revenue level, we are
implementing various cost cutting plans to reduce our variable
expense budget by approximately $4.5 to $5.5 million. A portion of
this cost savings will be used to offset the investments in the
aforementioned marketing initiatives. In the meantime, we
remain committed to offering a premium product that delivers a
unique cultural education experience for our delegates. Our
strong balance sheet with no outstanding debt gives us the
financial flexibility to manage through this transition period
while continuing to return capital to our shareholders."
Fourth Quarter 2011 Results
During the fourth quarter of 2011, total revenue of $2.0 million
declined 59 percent from $4.8 million during the prior year
quarter. The Company traveled 491 delegates compared to 1,433
during the prior year quarter, reflecting an expected reduction in
travelers on its non-core programs. This decrease in
travel-related revenue was somewhat offset by the 26 percent
increase in internet content and advertising revenue related to
BookRags, the Company's online education research business. Net
loss for the fourth quarter was $7.8 million, or $0.45 per diluted
share, compared to a net loss of $6.7 million, or $0.36 per diluted
share, in the prior year period.
Gross margin for the quarter was $1.9 million, down from $4.4
million in the fourth quarter of 2010 primarily due to the
aforementioned revenue decline. Gross margin percentage
decreased to 39.0 percent from 43.5 percent in the prior year
period due to increased air travel costs and lower absorption of
fixed costs as a result of the lower delegate count. 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.
Fourth quarter 2011 operating expenses of $13.1 million declined
12 percent, compared to operating expenses of $14.8 million in the
prior year period.
Full Year 2011 Results
For the year ended December 31, 2011, the Company reported total
revenue of $66.4 million, down 13 percent compared to $76.1 million
in 2010 having traveled 23,928 delegates compared to 26,657
delegates last year. This decrease in delegates traveled and
resulting revenue was partially offset by a 30 percent increase in
internet content and advertising revenue from BookRags. 2011
net income was $3.0 million, or $0.17 per diluted share, compared
to net income of $8.1 million, or $0.42 per diluted share, in
2010.
2011 gross margin was $59.0 million, down from $66.1 million
last year. Gross margin percentage decreased to 38.1 percent
from 40.8 percent in the prior 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 2011 increased two percent compared
to 2010, primarily due to higher legal expenses and incremental
costs associated with retention and marketing
initiatives.
Balance Sheet and Liquidity
Total assets at December 31, 2011 were $114.1 million, including
$58.6 million in cash, cash equivalents and short-term
available-for-sale securities. Long-lived assets totaled $40.1
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 $37.1 million, including $27.4 million in participant deposits
for future travel. The Company has no debt outstanding, with
deployable cash at December 31, 2011 of $38.6 million.
The Company paid a quarterly dividend of $0.06 per share on
December 7, 2011.
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 |
|
Year ended
December 31, |
|
2011 |
2010 |
Cash flow from operations |
$(6,655) |
$21,639 |
Purchases of property, equipment and
intangibles |
(3,594) |
(5,402) |
Free cash flow |
(10,249) |
16,237 |
|
|
|
Net sale of available-for-sale
securities |
34,342 |
433 |
Dividend payments to shareholders |
(4,258) |
(4,594) |
Repurchase of common stock |
(7,590) |
(13,406) |
Other cash flows, net |
436 |
512 |
Net change in cash and cash equivalents |
$12,681 |
$(818) |
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.
Free cash flow is a non-GAAP measure defined in the attached
schedules.
Outlook for 2012
As of February 5, 2012, enrolled revenue for 2012 travel
programs was $158.1 million, down 10.5 percent from the same point
last year, based on enrolled travelers of 24,966 compared to
28,172. Enrolled revenue for the Company's core product,
Student Ambassadors, is down 9.6 percent to $148.4 million compared
to $164.2 million at the same date last year, based on enrolled
travelers of 21,548 compared to 24,003.
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.
Inclusive of the cost reductions and based on current visibility
for the balance of the year, the Company is providing guidance as
follows:
- Consolidated gross revenues for all programs and operations to
be between $135 million and $145 million
- Consolidated gross margin as a percentage of gross revenue for
all programs and operations of 36 percent to 38 percent;
and
- Net income before any special items of between $3 million and
$5 million.
Conference Call and Webcast Information
The Company will host a conference call to discuss fourth
quarter and full year 2011 results of operations on Thursday,
February 9, 2012, 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 888-428-9506 or 719-325-2481
(international) and providing the pass code:
1402120. Approximately 24 hours following the
call, a webcast will be available through April 2, 2012 at
www.ambassadorsgroup.com/EPAX. A replay of the call will
also be available through February 14, 2012 and can be
accessed by dialing 888-203-1112 or 719-457-0820 (international)
and providing the pass code: 1402120.
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
December 31, |
|
2011 |
2010 |
$ Change |
% Change |
Net revenue, non-directly delivered programs
(1) |
$713 |
$3,391 |
$(2,678) |
-79% |
Gross revenue, directly delivered
programs (2) |
70 |
467 |
(397) |
-85% |
Internet content and advertising revenue |
1,195 |
952 |
243 |
26% |
Total revenue |
1,978 |
4,810 |
(2,832) |
-59% |
Cost of sales, directly delivered programs
(2) |
(90) |
323 |
(413) |
-128% |
Cost of sales, internet content and
advertising |
169 |
123 |
46 |
37% |
Gross margin (3) |
1,899 |
4,364 |
(2,465) |
-56% |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Selling and marketing |
8,961 |
11,686 |
(2,725) |
-23% |
General and administration |
4,137 |
3,148 |
989 |
31% |
Total operating expenses |
13,098 |
14,834 |
(1,736) |
-12% |
|
|
|
|
|
Operating loss |
(11,199) |
(10,470) |
(729) |
-7% |
|
|
|
|
|
Other income (expense) |
|
|
|
|
Interest and dividend income |
250 |
265 |
(15) |
-6% |
Foreign currency expense and other |
(1) |
(1) |
-- |
0% |
Total other income |
249 |
264 |
(15) |
-6% |
Loss before income tax
benefit |
(10,950) |
(10,206) |
(744) |
-7% |
Income tax benefit |
3,152 |
3,486 |
(334) |
-9% |
Net loss |
$(7,798) |
$(6,720) |
$(1,078) |
-16% |
|
|
|
|
|
Weighted average shares outstanding –
basic |
17,493 |
18,920 |
(1,427) |
-8% |
Weighted average shares outstanding –
diluted |
17,493 |
18,920 |
(1,427) |
-8% |
|
|
|
|
|
Net loss per share — basic |
$(0.45) |
$(0.36) |
$(0.09) |
-25% |
Net loss per share — diluted |
$(0.45) |
$(0.36) |
$(0.09) |
-25% |
|
|
|
|
|
(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
December 31, |
|
2011 |
2010 |
% Change |
Gross revenue |
$3,610 |
$8,624 |
-58% |
Cost of sales |
2,897 |
5,233 |
-45% |
Net revenue |
$713 |
$3,391 |
-79% |
|
(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 |
|
Year ended
December 31, |
|
2011 |
2010 |
$ Change |
% Change |
Net revenue, non-directly delivered programs
(1) |
$51,966 |
$56,618 |
$(4,652) |
-8% |
Gross revenue, directly delivered
programs (2) |
10,426 |
16,423 |
(5,997) |
-37% |
Internet content and advertising revenue |
4,046 |
3,105 |
941 |
30% |
Total revenue |
66,438 |
76,146 |
(9,708) |
-13% |
Cost of sales, directly delivered programs
(2) |
6,822 |
9,591 |
(2,769) |
-29% |
Cost of sales, internet content and
advertising |
575 |
454 |
121 |
27% |
Gross margin (3) |
59,041 |
66,101 |
(7,060) |
-11% |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Selling and marketing |
40,367 |
41,880 |
(1,513) |
-4% |
General and administration |
16,564 |
14,125 |
2,439 |
17% |
Total operating expenses |
56,931 |
56,005 |
926 |
2% |
|
|
|
|
|
Operating income |
2,110 |
10,096 |
(7,986) |
-79% |
|
|
|
|
|
Other income (expense) |
|
|
|
|
Interest and dividend income |
1,340 |
1,501 |
(161) |
-11% |
Foreign currency expense and other |
155 |
-- |
155 |
100% |
Total other income |
1,495 |
1,501 |
(6) |
0% |
Income before income tax
provision |
3,605 |
11,597 |
(7,992) |
-69% |
Income tax provision |
(649) |
(3,481) |
2,832 |
-81% |
Net income |
$2,956 |
$8,116 |
$(5,160) |
-64% |
|
|
|
|
|
Weighted average shares outstanding –
basic |
17,746 |
19,085 |
(1,339) |
-7% |
Weighted average shares outstanding –
diluted |
17,869 |
19,303 |
(1,434) |
-7% |
|
|
|
|
|
Net income per share — basic |
$0.17 |
$0.43 |
$(0.26) |
-60% |
Net income per share — diluted |
$0.17 |
$0.42 |
$(0.25) |
-60% |
|
|
|
|
|
(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 |
|
Year ended
December 31, |
|
2011 |
2010 |
% Change |
Gross revenue |
$140,609 |
$142,499 |
-1% |
Cost of sales |
88,643 |
85,881 |
3% |
Net revenue |
$51,996 |
$56,618 |
-8% |
|
(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 |
|
|
2011 |
2010 |
% Change |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$19,519 |
$6,838 |
185% |
Available-for-sale securities |
39,128 |
72,540 |
-46% |
Foreign currency exchange
contracts |
-- |
1,864 |
-100% |
Prepaid program cost and expenses |
13,299 |
3,230 |
312% |
Accounts receivable |
1,395 |
1,976 |
-29% |
Deferred tax asset |
668 |
-- |
100% |
Total current
assets |
74,009 |
86,448 |
-14% |
Property and equipment, net |
26,104 |
27,625 |
-6% |
Available-for-sale securities |
700 |
1,250 |
-44% |
Intangibles |
3,421 |
3,367 |
2% |
Goodwill |
9,781 |
9,781 |
0% |
Other long-term assets |
85 |
85 |
0% |
Total assets |
$114,100 |
$128,556 |
-11% |
|
|
|
|
Liabilities and Stockholders'
Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued
expenses |
$5,858 |
$5,954 |
-2% |
Participants' deposits |
27,396 |
34,436 |
-20% |
Foreign currency exchange
contracts |
1,671 |
-- |
100% |
Deferred tax liability |
-- |
668 |
-100% |
Other liabilities |
112 |
107 |
5% |
Total current
liabilities |
35,037 |
41,165 |
-15% |
Foreign currency exchange
contracts |
102 |
-- |
100% |
Deferred tax liability |
2,004 |
1,353 |
48% |
Total liabilities |
37,143 |
42,518 |
-13% |
Stockholders' equity |
76,957 |
86,038 |
-11% |
Total liabilities and stockholders'
equity |
$114,100 |
$128,556 |
-11% |
|
|
AMBASSADORS GROUP,
INC. |
CONSOLIDATED STATEMENTS
OF CASH FLOWS |
(in
thousands) |
|
|
UNAUDITED |
|
2011 |
2010 |
Cash flows from operating
activities: |
|
|
Net income |
$2,956 |
$8,116 |
Adjustments to reconcile net income to net
cash provided by (used in) operating activities: |
|
|
Depreciation and amortization |
4,742 |
4,646 |
Stock-based compensation |
1,475 |
2,022 |
Deferred income tax benefit |
420 |
1,399 |
Loss on disposition and impairment of
property and equipment |
246 |
1,480 |
Excess (shortfall) tax benefit from
stock-based compensation |
(160) |
441 |
Change in assets and liabilities: |
|
|
Accounts receivable and other assets |
581 |
68 |
Prepaid program costs and expenses |
(10,069) |
(55) |
Accounts payable, accrued expenses, and
other current liabilities |
194 |
223 |
Participants' deposits |
(7,040) |
3,299 |
Net cash provided by (used in)
operating activities |
(6,655) |
21,639 |
|
|
|
Cash flows from investing
activities: |
|
|
Purchase of available for sale
securities |
(48,693) |
(59,331) |
Proceeds from sale of available-for-sale
securities |
83,035 |
59,764 |
Purchase and construction of property and
equipment |
(3,101) |
(4,461) |
Proceeds from sale of property and
equipment |
49 |
253 |
Purchase of intangibles |
(493) |
(941) |
Net cash provided by (used in)
investing activities |
30,797 |
(4,716) |
|
|
|
Cash flows from financing
activities: |
|
|
Repurchase of common stock |
(7,590) |
(13,406) |
Dividend payment to shareholders |
(4,258) |
(4,594) |
Proceeds from exercise of stock
options |
227 |
700 |
Excess (shortfall) tax benefit from
stock-based compensation |
160 |
(441) |
Net cash used in financing
activities |
(11,461) |
(17,741) |
|
|
|
Net increase (decrease) in cash and cash
equivalents |
12,681 |
(818) |
Cash and cash equivalents, beginning of
period |
6,838 |
7,656 |
Cash and cash equivalents, end of
period |
$19,519 |
$6,838 |
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 December 31, 2011
and 2010 (in thousands):
|
|
UNAUDITED |
|
|
December
31, |
|
|
2011 |
2010 |
Cash, cash equivalents and short-term
available-for-sale securities |
$58,647 |
$79,378 |
Prepaid program cost and expenses |
13,299 |
3,230 |
Less: Participants' deposits |
(27,396) |
(34,436) |
Less: Accounts payable / accruals / other
liabilities |
(5,970) |
(6,061) |
Deployable cash |
$38,580 |
$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. In 2010, the Company made
separation payments related to closing this print facility. In
2011, 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 full year ended December
31, 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
Loss |
EPS |
|
Three months
ended December 31, |
Three months
ended December 31, |
|
2011 |
2010 |
2011 |
2010 |
Amount before special
items |
$(7,488) |
$(6,014) |
$(0.43) |
$(0.32) |
Asset impairments and loss on sale |
(114) |
(1,062) |
(0.01) |
(0.06) |
Legal fees – class action and SEC,
net |
(258) |
329 |
(0.01) |
0.02 |
Separation Payments |
-- |
(339) |
-- |
(0.02) |
Tax impact |
62 |
366 |
-- |
0.02 |
Amount per consolidated statement of
operations |
$(7,798) |
$(6,720) |
$(0.45) |
$(0.36) |
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED |
|
Net
income |
EPS |
|
Year ended
December, |
Year eneded
December 31, |
|
2011 |
2010 |
2011 |
2010 |
Amount before special
items |
$4,565 |
$9,519 |
$0.26 |
$0.50 |
Asset impairments and loss on sale |
(236) |
(1,462) |
(0.01) |
(0.08) |
Foreign currency de-designation gain |
183 |
-- |
0.01 |
-- |
Legal fees – class action and SEC,
net |
(1,909) |
(202) |
(0.11) |
(0.01) |
Separation Payments |
-- |
(339) |
-- |
(0.02) |
Tax impact |
353 |
600 |
0.02 |
0.03 |
Amount per consolidated statement of
operations |
$2,956 |
$8,116 |
$0.17 |
$0.42 |
CONTACT: Company Contact:
Anthony Dombrowik
(509) 568-7800
Investor Relations:
Stacy Feit
Financial Relations Board
(213) 486-6549
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