Ambassadors Group Reports Earnings Per Share of $0.88 for the Second Quarter 2002.Business Editors SPOKANE Spokane, city, United States Spokane (spōkăn`), city (1990 pop. 177,196), seat of Spokane co., E Wash., at the spectacular falls of the Spokane River; inc. 1881. , Wash.--(BUSINESS WIRE)--July 18, 2002 Ambassadors Group The Ambassadors Group was originally an operating division of Ambassadors International, Inc., but was divested into a separate corporation in 2002 to form the company under its current name. , Inc. (Nasdaq:EPAX EPAX Electronic Private Automatic Exchange ), a leading provider of educational travel experiences, announced earnings per share of $0.88 in the second quarter of 2002, comparable to the earnings in the second quarter of 2001 of $1.07 per share. Net revenue decreased to $17.4 million in the second quarter of 2002 from $20.5 million in the comparable quarter of 2001. Gross receipts the total of the receipts, before they are diminished by any deduction, as for expenses; - distinguished from net profits. - Bouvier. See under Gross, a. os> See also: Gross Receipt decreased to $49.5 million in the second quarter of 2002 from $58.7 million in the comparable quarter of 2001. Net revenue decreased 15%, from $20.5 million to $17.4 million. The decrease in gross program receipts and net revenue was driven by a decline in the number of program participants. As expected, the attacks of 9.11 have negatively impacted participation rates in Ambassadors' travel programs in 2002. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased to $4.4 million in the second quarter of 2002 from $5.4 million in the second quarter of 2001, a $1.0 million or 18% decrease. The reduced level of operating expenses is the result of a cost management program that was put in place in the wake of 9.11, which includes compensation adjustments, a reduced level of staffing, and a scaled down marketing effort. All of these changes resulted in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $12.9 million in the second quarter of 2002 in comparison to $15.1 million in the second quarter of 2001. The Company's cash, cash equivalent and available-for-sale securities balances at June June: see month. 30, 2002, and Dec. 31, 2001, were reported at $56.8 million and $39.8 million, of which $40.9 million and $16.6 million represented participant deposits, respectively. Jeff Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Ambassadors Group, Inc., stated, "As expected, the terrorism of 9.11 and its psychic psychic /psy·chic/ (si´kik) 1. pertaining to the psyche. 2. mental (1). psy·chic adj. 1. impact on the traveling public has interrupted in·ter·rupt v. in·ter·rupt·ed, in·ter·rupt·ing, in·ter·rupts v.tr. 1. To break the continuity or uniformity of: Rain interrupted our baseball game. 2. seven years of growth. However, we are pleased that our unique educational travel programs and mission of peace through understanding have enabled us to do better than initially forecasted. We believe that our core program elements of personal growth, cultural understanding and emphasis on safety are even more important today. "In addition, we made a series of adjustments to marketing, operations and budgeting that enabled greater operational efficiency and effectiveness throughout the last 10 months. We are now starting to market for 2003, which will give us some insight into how our programs will be received and provide additional data for decision making about the next 12-18 months." Ambassadors Group, Inc. will host a conference call to discuss results of operations and the outlook for 2002, Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , July July: see month. 19, 2002, at 8:30 a.m., Pacific time. Interested parties may join the call by dialing 800/530-8983. The conference call may also be joined via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.AmbassadorsGroup.com/EPAX. For post view access, parties may dial 800/633-8284 with the reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 20740978 and follow the prompts, or visit the www.AmbassadorsGroup.com/EPAX website. Post view dial in access will be available beginning July 19, 2002, at 10:30 a.m. Pacific time through July 20, 2002 at 10:30 a.m. Pacific Time. Post view webcast access will be available following the conference call through Aug. 19, 2002. Ambassadors Group, Inc. is a leading educational travel company that organizes and promotes international and domestic programs for students, athletes, and professionals. These programs provide the opportunities for grade school, junior, and senior high school students to visit foreign and domestic destinations to learn about the history, government, economy and culture of such areas, as well as for junior and senior high school athletes to participate in domestic and international sports challenges Sports Challenge was a sports-centered game show that aired in weekly syndication from 1971 to 1979, with a separate version airing briefly on CBS in 1973. Dick Enberg was host. Johnny Gilbert, Art James, and John Harlan announced. . The Company's professional programs emphasize meetings and seminars between participants and persons in similar professions abroad. The Company is headquartered and located in Spokane, Washington Spokane (pronounced [spoʊ̯ˈkæn]) is a city located in Eastern Washington. The seat of Spokane County, Spokane is the metropolitan center of the Inland Northwest, the second largest city in Washington state, and . Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements regarding the Company's actual and expected financial performance, the reasons for variances between quarter-to-quarter results, and the Company's spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. from it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have parent, Ambassadors International, Inc. Forward-looking statements, which are included per the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. Such forward-looking statements speak only as of the date of this release, and could involve risks including current investor reaction to the spin-off of the Company from it's parent, Ambassadors International, Inc., overall conditions in the travel services and educational travel services markets, and general economic conditions. The Company expressly disclaims any obligation to provide public updates or revisions to any forward-looking statements found herein to reflect any changes in Company expectations or any change in events. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. . For a more complete discussion of these and other factors, please refer to Ambassadors Group, Inc. 10K filed on March 27, 2002 and Form 10 Registration Statement, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , initially filed on November November: see month. 15, 2001.
The following summarizes the Company's financial information
(unaudited) for the quarters and six months ended June 30, 2002 and
2001 (in thousands, except per share amounts):
Quarter ended June 30, 2002 2001
---------------------- -------- --------
Gross program receipts $ 49,462 $ 58,730
Net revenue 17,367 20,500
Operating expenses:
Selling and tour promotion 2,570 3,243
General and administration 1,856 2,154
-------- --------
Total operating expenses 4,426 5,397
Operating income $ 12,941 $ 15,103
Other income, net 337 783
Income before tax 13,278 15,886
-------- --------
Net income $ 8,843 $ 10,485
Weighted average shares outstanding - basic 9,831 9,813
Earnings per share - basic $ 0.90 $ 1.07
Weighted average shares outstanding - diluted 10,093 9,813
Earnings per share - diluted $ 0.88 $ 1.07
Six months ended June 30, 2002 2001
------------------------- -------- --------
Gross program receipts $ 51,833 $ 63,697
Net revenue 18,033 22,439
Operating expenses:
Selling and tour promotion 4,361 6,410
General and administration 3,558 4,075
-------- --------
Total operating expenses 7,919 10,485
Operating income $ 10,114 $ 11,954
Other income, net 529 1,390
Income before tax 10,643 13,344
-------- --------
Net income $ 7,078 $ 8,808
======== ========
Weighted average shares outstanding - basic 9,824 9,813
Earnings per share - basic $ 0.72 $ 0.90
Weighted average shares outstanding - diluted 10,114 9,813
Earnings per share - diluted $ 0.70 $ 0.90
The Company has a single operating segment consisting of the
educational travel and sports programs for students, athletes and
professionals. These programs have similar economic characteristics
and offer comparable products to participants, as well as utilize
similar processes for the program marketing.
The following summarizes the Company's balance sheets as of June 30,
2002 and Dec. 31, 2001 (in thousands):
June 30, Dec. 31,
2002 2001
(unaudited)
-------- --------
Assets
------
Cash and cash equivalents $ 31,030 $ 16,518
Restricted cash equivalents 12 12
Available-for-sale securities 25,750 23,243
Foreign currency exchange contracts 588 -
Prepaid program cost and expenses 17,536 1,501
Deferred tax asset 75 301
Other current assets 305 143
-------- --------
Total current assets 75,296 41,718
Property and equipment, net 2,109 2,457
Deferred income tax 1,878 1,878
Other assets 265 70
-------- --------
Total assets $ 79,548 $ 46,123
========= =========
Liabilities and Stockholders' Equity
------------------------------------
Accounts payable and accrued expenses $ 15,514 $ 4,230
Participants' deposits 40,913 16,551
Deferred Tax Liability 217 -
Foreign currency exchange contracts - 503
-------- --------
Total current liabilities 56,644 21,284
Stockholders' equity 22,904 24,839
-------- --------
Total liabilities and stockholders' equity $ 79,548 $ 46,123
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