AMIE » Topics » AMBASSADORS INTERNATIONAL, INC. REPORTS THIRD QUARTER OF 2006 FINANCIAL RESULTS

This excerpt taken from the AMIE 8-K filed Oct 25, 2006.

AMBASSADORS INTERNATIONAL, INC. REPORTS THIRD QUARTER OF 2006 FINANCIAL RESULTS

Newport Beach, California, October 25, 2006 - Ambassadors International, Inc. (NASDAQ:AMIE) reported revenue of $57.6 million for the three months ended September 30, 2006, up from $6.4 million for the three months ended September 30, 2005. In addition, the Company reported net income of $7.6 million, or $0.66 per diluted share, for the three months ended September 30, 2006, compared to net income of $0.4 million, or $0.04 per diluted share, for the three months ended September 30, 2005.

We achieved revenues of $57.6 million in the third quarter of 2006, an increase of $51.2 million from the third quarter of 2005. For the quarter ended September 30, 2006, the increase in revenue resulted from the addition of $35.0 million in cruise-related revenue from our cruise segment which commenced operations on January 13, 2006. In addition, our marine revenue increased $16.5 million over 2005 as a result of the addition of our Bellingham Marine operations which commenced on July 21, 2006 and our shipyard operations which commenced on April 1, 2006.

Our costs and operating expenses increased $42.2 million in the third quarter of 2006 from the third quarter of 2005. This increase was primarily due to $26.3 million in cruise operating expenses and other selling, general and administrative and depreciation expenses associated with our cruise segment. In addition, our cost of marine revenue increased $13.0 million related to revenues generated from our new Bellingham Marine and shipyard operations.

We reported other income (expense) for the three months ended September 30, 2006 of $0.2 million, compared to $1.2 million for the three months ended September 30, 2005. The decline was a result of approximately $1.0 million of interest expense related to long-term debt assumed in our cruise acquisitions consummated in the first and second quarters of 2006. Our other income (expense) was favorably impacted by realized gains of $0.3 million which resulted from sales of available-for-sale securities and improved yields on our investment portfolio resulting from higher interest rates in the third quarter of 2006 compared to the third quarter of 2005.

We reported an income tax provision of $1.1 million for the three months ended September 30, 2006, compared to $0.3 million for the three months ended September 30, 2005. The effective tax rate for the three months ended September 30, 2006 was 12.7%, compared to 38.5% for the three months ended September 30, 2005. The decrease in the rate is due to the reversal of the valuation allowance on our deferred tax assets of approximately $2.3 million.

 

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This excerpt taken from the AMIE 8-K filed Jul 27, 2006.

AMBASSADORS INTERNATIONAL, INC. REPORTS SECOND QUARTER OF 2006 FINANCIAL RESULTS

Newport Beach, California, July 26, 2006 - Ambassadors International, Inc. (NASDAQ:AMIE) reported revenue of $29.7 million for the three months ended June 30, 2006, up from $7.8 million for the three months ended June 30, 2005. In addition, the Company reported net income of $1.7 million, or $0.15 per diluted share, for the three months ended June 30, 2006, compared to net income of $1.3 million, or $0.13 per diluted share, for the three months ended June 30, 2005.

Joe Ueberroth, President and CEO of the Company, stated, “We are pleased with the operational progress in our cruise operations thus far and are encouraged by our stronger-than-expected bookings to date for 2006 and 2007. In our initial projections at the time of our cruise acquisitions, we shared that we anticipated generating 2006 pretax income of approximately $3.1 million in our cruise segment. With our improved visibility for 2006, and despite the unexpected grounding of the Empress of the North earlier this year, we now believe that our cruise segment should generate pretax income of approximately $8.0 million in 2006.”

“Additionally, we are excited with our acquisition of Bellingham Marine Industries and the recent launch of our BellPort Newport Harbor Shipyard operations. These additional operations solidify our position in the marine industry. We believe that our combined marine operations should contribute pretax income of $3.5 million to the company in 2006.”

We achieved revenues of $29.7 million in the second quarter of 2006, an increase of $21.8 million from 2005. For the quarter ended June 30, 2006, the increase in revenue resulted from the addition of $21.8 million in cruise-related revenue from our cruise segment which commenced operations on January 13, 2006. In addition, our marine revenue increased $2.0 million over 2005 as a result of our shipyard operations which began on April 1, 2006. These increases were partially offset by lower travel, incentive and event related revenue, as well as lower net insurance premiums earned, both a result of decreased business in the second quarter.

Our costs and operating expenses increased $21.1 million in the second quarter of 2006 from 2005. This increase was primarily due to $19.5 million in cruise operating expenses and other selling, general and administration and depreciation expenses associated with our new cruise segment. In addition, our cost of marine revenue increased $1.1 million related to revenues generated from our new shipyard operations. As of January 1, 2006, the Company adopted Statement of Financial Accounting Standards No. 123R, “Share-Based Payment” and recorded approximately $0.2 million in general and administrative expenses related to employee stock options.

 

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On March 24, 2006, the Empress of the North vessel ran aground. No passengers or crew were injured during the incident. The vessel was in dry dock for repairs for approximately four weeks and the vessel returned to operations on April 16, 2006. As a result of this event and ensuing repairs, we canceled three cruises which resulted in lost revenue of approximately $1.4 million in the second quarter. Additionally, included in cruise operating expenses for the second quarter are vessel repair, passenger relocation and crew expenses totaling approximately $2.4 million incurred as a result of the grounding. These expenses were offset by insurance recoveries of $1.6 received in the second quarter of 2006. We continue to pursue additional insurance recoveries from this incident.

We reported other income (expense) for the three months ended June 30, 2006 of $1.0 million, compared to $1.4 million for the three months ended June 30, 2005. The decline was a result of approximately $0.7 million of interest expense related to long-term debt assumed in our cruise acquisitions consummated in the first and second quarters of 2006 and decreases in our net earnings on minority investments in 2006 of $0.6 million. Our other income (expense) was favorably impacted by realized gains of $0.7 million which resulted from sales of available-for-sale securities and improved yields on our investment portfolio of $0.2 million resulting from higher interest rates in 2006 compared to 2005.

EXCERPTS ON THIS PAGE:

8-K
Oct 25, 2006
8-K
Jul 27, 2006

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