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Ambassadors Group, Inc. Reports Fourth Quarter 2012 Results

Stocks in this article: EPAX

SPOKANE, Wash., Feb. 6, 2013 (GLOBE NEWSWIRE) -- 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, 2012.

Overview

  • Gross revenue, from all sources including non-directly delivered programs, for the year ended December 31, 2012 of $139.9 million compared to $155.1 million in 2011. Full year 2012 total reported revenue of $58.1 million compared to $66.4 million last year.  
  • Full year 2012 net income of $1.7 million, or $0.10 per diluted share, compared to $3.0 million, or $0.17 per diluted share, in 2011. Net income before special items of $3.2 million compared to $4.6 million in 2011.  
  • Traveled 21,252 delegates in 2012 compared to 23,928 delegates in 2011.  
  • 2012 gross margin of 36.7 percent compared to 38.1 percent last year.  
  • For the full year 2012, total operating expenses down $5.9 million compared to 2011.  
  • Company completed approximately 48 percent of its $25 million return of capital commitment; paid $8.8 million special dividend and executed $3.1 million share repurchase during the fourth quarter of 2012.  
  • Cash and cash equivalents and available-for-sale securities balance of $38.3 million and no debt outstanding.  
  • Enrolled revenue for 2013 programs down 19.2 percent year-over-year for all programs and 21.7 percent year-over-year for the core Student Ambassadors Programs.  
  • Withdraw rates for enrolled students trending 10.9 percent better than 2012. 
Financial Highlights (in thousands except percent and per share data)
  UNAUDITED
  Quarter ended December 31, Year ended December 31, 
  2012 2011 2012 2011
Gross revenue, all travel programs  $ 1,179  $ 3,679  $ 135,742  $ 151,035
Internet content and advertising revenue  $ 1,101  $ 1,195  $ 4,207 $ 4,046
Gross revenue, all sources  $ 2,280  $ 4,874  $ 139,949  $ 155,081
Gross margin, all travel programs  $ 313  $ 873  $ 47,738  $ 55,570
Gross margin, internet content and advertising  $ 968  $ 1,026  $ 3,653  $ 3,471
Gross margin percentage 56.2% 39.0% 36.7% 38.1%
Operating expense  $ 12,497  $ 13,098  $ 51,069  $ 56,931
Operating income, internet content and advertising  $ 269 $ 315  $ 1,327  $ 1 ,176
Net income (loss) before special items  $ (10,064)  $ (7,488)  $ 3,208  $ 4,565
Net income (loss)  $ (10,033)  $ (7,798)  $ 1,744  $ 2,956
Income (loss) per diluted share  $ (0.58)  $ (0.45)  $ 0.10  $ 0.17

Commenting on the Company's results, Jeff Thomas, Ambassador Group's President and Chief Executive Officer said, "We completed 2012 in line with our expectations. During the year, we focused our efforts on executing our strategic plan to continue to evolve our multichannel marketing approach to secure travelers, right size our cost structure and return value to shareholders. We have made significant progress in all three of these areas."

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