Ambassadors International Reports Break-Even First Quarter

Apr 23, 2001, 01:00 ET from Ambassadors International, Inc.

    SPOKANE, Wash., April 23 /PRNewswire Interactive Press Release/ --
 Ambassadors International, Inc. (Nasdaq:   AMIE), a leading travel services
 group, increased gross revenues 60% to $27.8 million from $17.4 million during
 the quarters ended March 31, 2001 and 2000, respectively.  Net revenues
 increased 46% to $8.1 million in 2001 from $5.5 million in 2000.  These
 increases resulted in the Company reporting an immaterial loss of less than
 $20,000, translating into per share results of $0.00, during the quarter ended
 March 31, 2001 in comparison to a $1.5 million loss, or $0.16 per share,
 during the quarter ended March 31, 2000.
     Gross program receipts increased 60%, or $10.3 million, to $27.8 million
 in 2001 as a result of a greater number of programs operated by the
 Performance and Education Groups.  These programs represent a change in the
 revenue mix, resulting in a decrease in gross margins to 29% in 2001 from
 32% in 2000.
     Operating expenses were $10.2 million in 2001, compared to $9.0 million in
 2000, an increase of 13%.  This increase was primarily due to increased costs
 from the increased program volume during the first quarter of 2001 in
 comparison to 2000.
     The net loss per share for the quarter ended March 31, 2001 was calculated
 using 9.6 million weighted average shares outstanding compared to 9.5 million
 weighted average shares outstanding for the quarter ended March 31, 2000.  The
 increase was caused by exercised stock options, as the Company continues to
 reward employees through its incentive stock option plan.
     The Company's cash position remained strong, as free cash increased
 16% year over year to $79.5 million on March 31, 2001 in comparison to
 $68.4 million on March 31, 2000.  On March 31, 2001, the Company's balance
 sheet reflected cash, cash equivalents and available for sale securities of
 $147.6 million, of which $68.1 million was customer deposits.  On
 March 31, 2000, the Company's cash, cash equivalents and available for sale
 securities were $122.8 million, of which $54.4 million was customer deposits.
     The Company recently announced it is considering a transaction in which it
 would spin-off its wholly owned subsidiary, Ambassadors Education Group, Inc.,
 whereby the stockholders of the Company would receive a distribution of all
 the common stock of the Education Group.  If the spin-off occurs, Ambassadors
 expects that a public market would exist for Education Group's common stock,
 and therefore, each stockholder would then own shares of common stock of two
 publicly held corporations.  If the spin-off occurs, Education Group will file
 an application to have its common stock listed on Nasdaq.
     John Ueberroth, Chief Executive Officer of Ambassadors International,
 stated, "We are pleased that the Company did not post its expected seasonal
 first quarter loss.  Our first breakeven first quarter is the result of a
 number of factors, many of which can be classified as timing.  The Education
 Group has been successful in traveling a greater number of delegates in the
 first quarter this year.  By shifting a greater number of delegates into the
 first quarter, we believe we can develop a more sustainable, long-term growth
 model. In addition, due to our higher than anticipated cash balances
 throughout the first quarter, we recognized a greater than expected level of
 interest income for the quarter."
     Ambassadors International will host a conference call to discuss results
 of operations, the outlook for 2001, and the potential spin off of the
 Education Group on Tuesday, April 24, 2001, at 8:30 a.m., Pacific Daylight
 Time.  Interested parties may join the call by dialing 800-840-6217.  The
 conference call may also be joined via the Internet at
 www.Ambassadors.com/AMIE/Investor.html .  For post view access, parties may
 dial 800-633-8284 with the reservation number 18619501 and follow the prompts,
 or visit the www.Ambassadors.com/AMIE/Investor.html website.  Post view dial
 in access will be available beginning April 24, 2001 at 10:30 a.m.
 Pacific Daylight Time through April 25, 2001 at 10:30 a.m. Pacific Daylight
 Time.  Post view webcast access will be available beginning after the
 conference call through May 2, 2001.
     Ambassadors International, Inc. organizes and promotes international
 educational travel and sports programs on a worldwide basis for students,
 athletes, and professionals.  The Company develops, markets and manages
 meetings and incentive programs for a nationwide roster of corporate clients
 that utilize incentive travel, merchandise award programs and corporate
 meeting management services.   The Company also provides comprehensive hotel
 reservation, registration and travel services for meetings, conventions,
 expositions and trade shows.  The Company is headquartered in Spokane, Wash.,
 and has offices in Newport Beach, Calif., San Francisco, Calif., Atlanta, Ga.,
 Winnebago, Ill., St. Louis, Mo., and Alexandria, Va.
 
     Forward-Looking Statements
     This press release contains forward-looking statements regarding the
 Company's actual and expected financial performance and the reasons for
 variances between year to year and quarter to quarter results.
 Forward-looking statements, which are included per the "safe harbor"
 provisions of the Private Securities Litigation Reform Act 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.  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.  From time to time,
 these risks are discussed in the Company's filings with the Securities and
 Exchange Commission.
     Summary unaudited financial information for the quarters ended March 31,
 2001 and 2000 are as follows (in thousands, except per share amounts):
 
     Quarter ended March 31                             2001           2000
 
     Gross program receipts                           $27,802        $17,429
     Net revenue
                                                        8,069          5,541
     Operating expenses:
      Selling and tour promotion                        4,697          4,299
      General and administration                        5,463          4,654
     Total operating expenses                          10,160          8,953
 
     Operating loss                                     2,091          3,412
     Other income, net                                  2,064          1,136
 
     Net loss
                                                          $18         $1,502
     Weighted average shares outstanding
      - basic and diluted                               9,570          9,505
 
     Loss per share
      - basic and diluted                               $0.00          $0.16
 
     CONTACT:  Jeff Thomas of Ambassadors International, Inc., 509-534-6200.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X11596745
 
 

SOURCE Ambassadors International, Inc.
    SPOKANE, Wash., April 23 /PRNewswire Interactive Press Release/ --
 Ambassadors International, Inc. (Nasdaq:   AMIE), a leading travel services
 group, increased gross revenues 60% to $27.8 million from $17.4 million during
 the quarters ended March 31, 2001 and 2000, respectively.  Net revenues
 increased 46% to $8.1 million in 2001 from $5.5 million in 2000.  These
 increases resulted in the Company reporting an immaterial loss of less than
 $20,000, translating into per share results of $0.00, during the quarter ended
 March 31, 2001 in comparison to a $1.5 million loss, or $0.16 per share,
 during the quarter ended March 31, 2000.
     Gross program receipts increased 60%, or $10.3 million, to $27.8 million
 in 2001 as a result of a greater number of programs operated by the
 Performance and Education Groups.  These programs represent a change in the
 revenue mix, resulting in a decrease in gross margins to 29% in 2001 from
 32% in 2000.
     Operating expenses were $10.2 million in 2001, compared to $9.0 million in
 2000, an increase of 13%.  This increase was primarily due to increased costs
 from the increased program volume during the first quarter of 2001 in
 comparison to 2000.
     The net loss per share for the quarter ended March 31, 2001 was calculated
 using 9.6 million weighted average shares outstanding compared to 9.5 million
 weighted average shares outstanding for the quarter ended March 31, 2000.  The
 increase was caused by exercised stock options, as the Company continues to
 reward employees through its incentive stock option plan.
     The Company's cash position remained strong, as free cash increased
 16% year over year to $79.5 million on March 31, 2001 in comparison to
 $68.4 million on March 31, 2000.  On March 31, 2001, the Company's balance
 sheet reflected cash, cash equivalents and available for sale securities of
 $147.6 million, of which $68.1 million was customer deposits.  On
 March 31, 2000, the Company's cash, cash equivalents and available for sale
 securities were $122.8 million, of which $54.4 million was customer deposits.
     The Company recently announced it is considering a transaction in which it
 would spin-off its wholly owned subsidiary, Ambassadors Education Group, Inc.,
 whereby the stockholders of the Company would receive a distribution of all
 the common stock of the Education Group.  If the spin-off occurs, Ambassadors
 expects that a public market would exist for Education Group's common stock,
 and therefore, each stockholder would then own shares of common stock of two
 publicly held corporations.  If the spin-off occurs, Education Group will file
 an application to have its common stock listed on Nasdaq.
     John Ueberroth, Chief Executive Officer of Ambassadors International,
 stated, "We are pleased that the Company did not post its expected seasonal
 first quarter loss.  Our first breakeven first quarter is the result of a
 number of factors, many of which can be classified as timing.  The Education
 Group has been successful in traveling a greater number of delegates in the
 first quarter this year.  By shifting a greater number of delegates into the
 first quarter, we believe we can develop a more sustainable, long-term growth
 model. In addition, due to our higher than anticipated cash balances
 throughout the first quarter, we recognized a greater than expected level of
 interest income for the quarter."
     Ambassadors International will host a conference call to discuss results
 of operations, the outlook for 2001, and the potential spin off of the
 Education Group on Tuesday, April 24, 2001, at 8:30 a.m., Pacific Daylight
 Time.  Interested parties may join the call by dialing 800-840-6217.  The
 conference call may also be joined via the Internet at
 www.Ambassadors.com/AMIE/Investor.html .  For post view access, parties may
 dial 800-633-8284 with the reservation number 18619501 and follow the prompts,
 or visit the www.Ambassadors.com/AMIE/Investor.html website.  Post view dial
 in access will be available beginning April 24, 2001 at 10:30 a.m.
 Pacific Daylight Time through April 25, 2001 at 10:30 a.m. Pacific Daylight
 Time.  Post view webcast access will be available beginning after the
 conference call through May 2, 2001.
     Ambassadors International, Inc. organizes and promotes international
 educational travel and sports programs on a worldwide basis for students,
 athletes, and professionals.  The Company develops, markets and manages
 meetings and incentive programs for a nationwide roster of corporate clients
 that utilize incentive travel, merchandise award programs and corporate
 meeting management services.   The Company also provides comprehensive hotel
 reservation, registration and travel services for meetings, conventions,
 expositions and trade shows.  The Company is headquartered in Spokane, Wash.,
 and has offices in Newport Beach, Calif., San Francisco, Calif., Atlanta, Ga.,
 Winnebago, Ill., St. Louis, Mo., and Alexandria, Va.
 
     Forward-Looking Statements
     This press release contains forward-looking statements regarding the
 Company's actual and expected financial performance and the reasons for
 variances between year to year and quarter to quarter results.
 Forward-looking statements, which are included per the "safe harbor"
 provisions of the Private Securities Litigation Reform Act 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.  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.  From time to time,
 these risks are discussed in the Company's filings with the Securities and
 Exchange Commission.
     Summary unaudited financial information for the quarters ended March 31,
 2001 and 2000 are as follows (in thousands, except per share amounts):
 
     Quarter ended March 31                             2001           2000
 
     Gross program receipts                           $27,802        $17,429
     Net revenue
                                                        8,069          5,541
     Operating expenses:
      Selling and tour promotion                        4,697          4,299
      General and administration                        5,463          4,654
     Total operating expenses                          10,160          8,953
 
     Operating loss                                     2,091          3,412
     Other income, net                                  2,064          1,136
 
     Net loss
                                                          $18         $1,502
     Weighted average shares outstanding
      - basic and diluted                               9,570          9,505
 
     Loss per share
      - basic and diluted                               $0.00          $0.16
 
     CONTACT:  Jeff Thomas of Ambassadors International, Inc., 509-534-6200.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X11596745
 
 SOURCE  Ambassadors International, Inc.