SPOKANE, Wash., April 30, 2014 (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 first quarter ended March 31, 2014.
- Gross revenue, from all sources including non-directly delivered programs, of $1.6 million during the seasonally slower first quarter compared to $2.9 million in the prior year period. Traveled 183 delegates compared to 572 delegates in the first quarter of 2013, which included the Presidential Inauguration Program that traveled in January 2013.
- Gross margin of $1.1 million compared to $1.4 million in the 2013 period.
- Operating expenses for the quarter, excluding the impact of special items, of $10.0 million, a decrease of $2.0 million year-over-year.
- Net loss before special items of $7.3 million compared to $6.7 million last year; Net loss of $7.6 million, compared to net loss of $8.1 million in the first quarter of 2013.
- Cash and cash equivalents and available-for-sale securities balance of $64.4 million; deployable cash, as defined, of $15.0 million and no debt outstanding.
- Enrolled revenue for 2014 programs down 6.8 percent year-over-year for all programs and 8.4 percent year-over-year for core Student Ambassador Programs. Prior year enrolled travelers for Discovery Student Adventures and People to People China programs have been excluded for year-over-year comparability given the Company's decision during the third quarter of 2013 to no longer operate these programs in 2014.
|( in thousands except percent and per share data)|
|Quarter ended March 31,|
|Gross revenue, all travel programs||$560||$1,894|
|Internet content and advertising revenue||$1,008||$999|
|Gross revenue, all sources||$1,568||$2,893|
|Gross margin, all travel programs||$180||$522|
|Gross margin, internet content and advertising||$876||$870|
|Gross margin, all sources||$1,056||$1,392|
|Gross margin percentage||67.3%||48.1%|
|Operating expense, before special items||$9,952||$11,994|
|Operating income, internet content and advertising||$336||$332|
|Net loss before special items||$(7,310)||$(6,663)|
|Loss per diluted share before special items||$(0.44)||$(0.39)|
|Loss per diluted share||$(0.45)||$(0.47)|
Commenting on the Company's results, Anthony Dombrowik, Ambassadors Group Interim Chief Executive Officer said, "We gained efficiencies this quarter, evidenced by the $2 million reduction in operating expenses before special items. As we continue to focus on protecting our profitability, we are targeting a $3 million to $4 million reduction in operating expenses on a full year basis during 2014, in addition to the $10.8 million of cost savings achieved in 2012 and 2013."