SEATTLE, May 12 /PRNewswire-FirstCall/ -- Ambassadors
International, Inc. (the "Company") (Nasdaq: AMIE) announced today
its financial results for the first quarter ended March 31, 2010.
Key Highlights
Total revenue from continuing operations for the three months
ended March 31, 2010 was $12.6 million, compared to $16.1 million for the three months ended
March 31, 2009. The results
were better than the Company's forecast and budget for first
quarter 2010, even though first quarter revenue was lower than in
2009. In first quarter 2010, Windstar Cruises experienced a
capacity decrease of 3.9%. Windstar operated 14 days less than in
first quarter 2009 due to the scheduled Wind Spirit dry dock
and experienced a decrease in charter and incentive revenue due to
global economic conditions over the last 12 months.
Cruise operating expenses were $11.7
million for the three months ended March 31, 2010 compared to $13.2 million for the three months ended
March 31, 2009. The decrease in
cruise operating expenses is primarily due to the reduction in
materials and services and efficiencies gained following the
transition of the ship management from a third party management
company to in-house personnel in September of 2009.
Net loss for the three months ended March
31, 2010 was $5.8 million
compared to $11.4 million for the
three months ended March 31,
2009.
2010 Outlook
"Windstar experienced a strong wave season this year, with wave
season booking volume from January through March 2010 significantly ahead of last year,"
said Art Rodney, Interim Chief
Executive Officer, Ambassadors International, Inc. "It will still
be a challenging year. We are still feeling the effect of the
decrease in charter and incentive business in 2010. However,
we are experiencing positive improvement in per diems and load
factors for the second half of the year."
2011 Outlook
"For 2011, Windstar's bookings for charter and incentive
sailings have increased significantly in recent months when
compared to the same timeframe a year ago," said Rodney. "Also, we
are very pleased with early bookings we have received for our new
itineraries featuring the Baltic and the Holy Land."
Ambassadors continues to execute on the plan announced in
February 2009 to focus all capital
and efforts on Windstar Cruises and the small ship luxury segment.
Ambassadors has been successful in restructuring a
significant amount of the Company's Convertible Notes in the fall
2009 Exchange Offer and obtaining a $15
million working capital credit facility to provide funding
for operations over the next two years. In addition to reducing
outstanding indebtedness and obtaining a credit facility, the
Company has also been successful in restructuring the core business
activities to allow the Company to dedicate liquidity resources to
the operations and growth of Windstar Cruises.
Windstar Cruises continues to provide its loyal guests with the
award-winning, yet casually elegant experience the line is known
for. Windstar remains a strong, award-winning product and is
currently implementing its next phase of its Degrees of Difference
initiative featuring added amenities and enhancements to the fleet
which will be completed in the summer of 2010.
Ambassadors International, Inc. will host a conference call to
discuss the results of operations on Wednesday, May 12, 2010 at 1:15 p.m. Pacific Daylight Time. Interested
parties may join the call by dialing (877) 842-7102, conference ID
#: AMIE. The conference call may also by joined via the Internet at
http://www.ambassadors.com. For conference replay access, parties
may dial (800) 642-1687, conference ID #:75200967 and follow the
prompts. Post-call replay will be available two days following the
completion of our call.
About Ambassadors International, Inc.
Ambassadors International, Inc. is primarily a cruise company
with headquarters in Seattle,
Washington. The Company operates Windstar Cruises, a
three-ship fleet of luxury yachts that explore the hidden harbors
and secluded coves of the world's most sought-after destinations.
Carrying just 148 to 312 guests, the luxurious ships of Windstar
cruise to nearly 50 nations, calling at 100 ports throughout
Europe, the Caribbean and the Americas. In this
press release, any reference to "Company," "Ambassadors,"
"management," "we," "us" and "our" refers to Ambassadors
International, Inc. and its management team.
Forward-Looking Statements
This press release contains forward-looking statements that are
based on our current expectations and entail various risks and
uncertainties that could cause our actual results to differ
materially from those suggested in our forward-looking statements.
We believe that such risks and uncertainties include, among others,
our ability to refinance our debt or to obtain additional financing
at reasonable rates; our ability to continue to operate as a going
concern; our ability to effectively and efficiently operate our
cruise business; customer cancellation rates; competitive
conditions in the industry in which we operate; marketing expenses;
extreme weather conditions; the impact of new laws and regulations
affecting our business; negative incidents involving cruise ships,
including those involving the health and safety of passengers;
cruise ship maintenance problems; reduced consumer demand for
vacations and cruise vacations; changes in fuel, food, payroll,
insurance and security costs; changes in relationships with certain
travel providers; changes in vacation industry capacity; and other
economic factors and other considerations affecting the travel
industry and other factors discussed more specifically in our
annual, quarterly and current reports filed with the SEC on Forms
10-K, 10-Q and 8-K. We are providing this information as of the
date of this release and do not undertake any obligation to update
any forward-looking statements contained in this document as a
result of new information, future events or otherwise.
Additional Information
For further information, please contact Tammy Smolkowski of Ambassadors International,
Inc. at (206) 292-9606.
SOURCE Ambassadors International, Inc.