Ambassadors International, Inc. (the “Company”) (Nasdaq: AMIE) announced today its financial results for the third quarter ended September 30, 2010.
Key Highlights
Ambassadors reported positive operating income of $0.6 million from continuing operations for the three months ended September 30, 2010 compared to an operating loss from continuing operations of $32.7 million for the three months ended September 30, 2009.
Revenues from continuing operations for the three months ended September 30, 2010 were $19.8 million, compared to $17.7 million for the three months ended September 30, 2009. The increase in revenue was primarily due to increased net fares per passenger during the third quarter of 2010.
Cruise operating expenses were $13.9 million for the three months ended September 30, 2010 compared to $13.3 for the three months ended September 30, 2009. The increase in cruise operating expenses was primarily due to an increase in fuel costs and the amortization of prior drydock expenditures, offset by cost savings in port fees and insurance following the transition of the ship management to in-house personnel in September of 2009.
Net loss for the three months ended September 30, 2010 was $0.6 million compared to a net loss of $35.2 million for the three months ended September 30, 2009.
2010 Outlook
“There is still uncertainty in the economy and the travel market continues to be challenging,” said Hans Birkholz, CEO of Ambassadors International Inc., and Windstar Cruises. “As a result, we continue to experience significant pressure on price points.”
“We do feel comfortable about our liquidity position, with cash and cash equivalents on hand and the full availability of our revolving credit facility,” said Birkholz.
2011 Outlook
“While we remain optimistic about our advance bookings for 2011 for both our charter and FIT business, the economy still has not fully recovered, and the Company continues to be impacted by this,” said Birkholz. “Our plan for 2011 is to continue to aggressively market Windstar’s value proposition in conjunction with strong offers to drive revenue.”
