Thomas concluded, "While we still expect 2013 travel to be less than in 2012 and we are cognizant of the challenges we face, we remain concentrated on adapting our marketing in ways that will support our long term success in order to focus our efforts on creating shareholder value."
Fourth Quarter 2012 Results
During the fourth quarter of 2012, the Company traveled 162 delegates, compared to 491 delegates during the prior year quarter, reflecting anticipated decline in the Company's Citizen Ambassador program. Total revenue of $1.3 million declined 32 percent from $2.0 million during the prior year quarter primarily driven by a 68 percent decline in travel-related revenue. Net loss for the fourth quarter of 2012 was $10.0 million, or $0.58 per diluted share, compared to a net loss of $7.8 million, or $0.45 per diluted share, in the prior year period.
Gross margin for the quarter was $1.3 million, down from $1.9 million in the fourth quarter of 2011 primarily related to the aforementioned revenue decline. Gross margin percentage increased to 56.2 percent from 39.0 percent in the prior year period primarily due to a higher mix of revenue from BookRags, the Company's online education research business. 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.Full Year 2012 Results For the year ended December 31, 2012, the Company traveled 21,252 delegates, an 11 percent decrease compared to 23,928 delegates in 2011. Total revenue of $58.1 million declined 13 percent from $66.4 million last year, driven primarily by a 14 percent decline in travel-related revenue, partially offset by a 4 percent increase in internet content and advertising revenue related to BookRags. 2012 net income was $1.7 million, or $0.10 per diluted share, compared to net income of $3.0 million, or $0.17 per diluted share, in 2011.
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