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Ambassadors Group, Inc. Reports Second Quarter 2013 Results

SPOKANE, Wash., July 31, 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 second quarter ended June 30, 2013.

Overview

  • Gross revenue, from all sources including non-directly delivered programs, of $65.4 million during the first six months of 2013 compared to $84.1 million in the prior year period. Traveled 9,800 delegates compared to 12,789 delegates in the same period in 2012.
  • Net income before special items of $1.3 million compared to $7.6 million in the 2012 period. Net income of $33 thousand compared to $6.3 million in the prior year period.
  • Year-to-date gross margin of 37.0 percent, the same as in the 2012 period.
  • Selling and marketing expenses increased during the 2013 period to support the Company's first significant spring sales campaign for 2014 travel; however, pulling those leads into the spring will result in lower second half expenditures and full year 2013 expenditures are expected to be below the 2012 level.
  • General and administration expenses for the first six months of 2013 were flat year-over-year. Excluding the impact of special items in both periods, these expenses were down $0.5 million.
  • Cash and cash equivalents and available-for-sale securities balance of $55.9 million; no debt outstanding.
  • Enrolled revenue for 2013 programs down 17.3 percent year-over-year for all programs and 20.6 percent year-over-year for the core Student Ambassadors Programs.

Financial Highlights

( in thousands except percent and per share data)

  UNAUDITED
  Quarter ended June 30, Six months ended June 30,
  2013 2012 2013 2012
Gross revenue, all travel programs  $ 61,476  $ 80,361  $ 63,370  $ 81,850
Internet content and advertising revenue  $ 1,029  $ 1,005  $ 2,028  $ 2,203
Gross revenue, all sources  $ 62,505  $ 81,366  $ 65,398  $ 84,053
Gross margin, all travel programs  $ 21,900  $ 28,788  $ 22,422  $ 29,169
Gross margin, internet content and advertising  $ 903  $ 872  $ 1,773  $ 1,900
Gross margin, all sources  $ 22,803  $ 29,660  $ 24,195  $ 31,069
Gross margin percentage  36.5%  36.5%  37.0%  37.0%
Operating expense  $ 10,261  $ 10,867  $ 24,446  $ 23,761
Operating expense, before special items  $ 10,258  $ 9,885  $ 22,253  $ 22,046
Operating income, internet content and advertising  $ 377  $ 342  $ 709  $ 819
Net Income before special items  $ 8,094  $ 14,916  $ 1,303  $ 7,614
Net Income  $ 8,092  $ 14,198  $ 33  $ 6,292
Income per diluted share  $ 0.48  $ 0.81  $ 0.00  $ 0.36

Commenting on the Company's results, Anthony Dombrowik, Ambassadors Group Interim Chief Executive Officer said, "Our peak summer travel season commenced in June and during the second quarter, we traveled 9,228 delegates on our programs to 29 countries.  Our travelers are sharing their experiences through social media channels to an unprecedented degree and we are thrilled to be a central part of the thousands of these conversations. We continue to deliver a unique, valuable experience to our delegates as evidenced by the increase in the Net Promoter scores we have received so far. Along with our strong product offerings, we believe an increase in on-program digital contact as well as our new CRM system, which supports both our 24/7 delegate care system and our sales efforts, are contributing to even stronger customer satisfaction and brand affinity."

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