Ambassadors Group, Inc. (Nasdaq:EPAX), a leading provider of
educational travel, today announced its results for the fourth
quarter and full year ended December 31, 2014. Highlights of the
full year results are as follows:
Overview
- Net loss before special items of $3.6 million compared to a net
loss of $0.7 million in 2013. After the impact of restructuring
charges and the write-down of certain assets, the Company incurred
a net loss of $17.5 million compared to a net loss of $7.1 million
in the prior year.
- Gross revenue from continuing operations, including
non-directly delivered programs, of $99.5 million during 2014
compared to $112.2 million in the prior year. During 2014, the
Company traveled 16,092 delegates compared to 18,251 delegates in
the same period in 2013.
- Year-to-date gross margin from continuing operations of 33.5
percent compared to 35.8 percent in 2013, as the current year was
impacted by unfavorable Euro and British Pound foreign exchange
rates, lower traveler to leader ratios, and a program merchandise
write-down.
- Year-to-date, special items totaled $13.9 million for
discontinued operations, asset impairments, restructuring charges,
separation costs, and from the sale of our corporate
headquarters.
- Operating expenses for the year ended December 31, 2014,
excluding special items, totaled $37.1 million, a decrease of $4.7
million, or 11.3 percent, year-over-year.
- Cash totaled $61.5 million at December 31, 2014 compared to
$45.6 million on December 31, 2013, a $15.9 million increase
year-over-year. Deployable cash, as defined on page 9, totaled
$36.9 million compared to $22.6 million in the prior year
period.
- Enrolled revenue for 2015 programs down 25.3 percent
year-over-year for all programs and 27.9 percent year-over-year for
core Student Ambassadors Programs. While still a significant
year-over-year decline, it has improved since the Company last
reported 2015 enrolled revenue.
Financial
Highlights |
(in thousands except per
share data) |
|
UNAUDITED |
|
Quarter ended December 31, |
Year
ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
Gross revenue, all travel programs |
$ 2,498 |
$ 1,980 |
$ 99,479 |
$ 112,244 |
Gross margin, all travel programs |
$ 894 |
$ 513 |
$ 33,284 |
$ 40,174 |
Operating expense from continuing
operations |
$ 8,998 |
$ 9,760 |
$ 42,619 |
$ 53,259 |
Operating expense from continuing operations
before special items |
$ 8,669 |
$ 9,147 |
$ 37,111 |
$ 41,815 |
Loss from continuing operations |
$ (7,977) |
$ (5,721) |
$ (9,262) |
$ (7,911) |
Income (loss) from continuing operations
before special items |
$ (7,648) |
$ (5,108) |
$ (3,754) |
$ 3,533 |
Income (loss) from discontinued operations,
net of tax |
$ (167) |
$ 225 |
$ (8,280) |
$ 834 |
Net loss |
$ (8,144) |
$ (5,496) |
$ (17,542) |
$ (7,077) |
Net loss before special items |
$ (7,658) |
$ (5,334) |
$ (3,646) |
$ (686) |
Loss per diluted share |
$ (0.48) |
$ (0.33) |
$ (1.03) |
$ (0.42) |
Loss per diluted share before special
items |
$ (0.45) |
$ (0.32) |
$ (0.21) |
$ (0.03) |
Ambassador's Group Chief Executive Officer, Philip B. Livingston
commented on the Company's results and the outlook for 2015
travel:
"The fourth quarter is off-season for our business cycle so the
results of the period reflect costs of ongoing operations with
little revenue. Deployable cash went up again this quarter
with the sale of our corporate headquarters facility. We now
have $36.9 million of deployable cash with the nature of our
operations producing cash in advance of the travel season. At
this point in time, deposits and payments received by future
travelers are greater on a per delegate basis than we have
experienced in recent years, and our rate of program withdrawals is
trending lower than at this time last year. We look forward
to traveling approximately 14,000 total travelers in 2015 versus
16,000 traveled in 2014. Our plans to bring our programs and
marketing into better alignment with our customer needs have
advanced significantly and we should be able to launch revised
offerings in the second quarter of 2015. Increasing choice
and flexibility for our customers, providing more time-efficient
and increased authentic cultural immersion are important components
to the changes we are considering."
Fourth Quarter 2014 Results
During the fourth quarter of 2014, the Company traveled 381
delegates compared to 311 delegates during the prior year quarter
primarily due to the mix of programs offered in each
period. Total revenue from continuing operations of $0.8
million increased 58 percent from $0.5 million in the prior
year quarter driven by the higher traveler count year-over-year.
Gross margin from continuing operations for the quarter was $0.9
million compared to $0.5 million in the fourth quarter of 2013, and
gross margin percentage was 35.8 percent compared to 25.9 percent
in the prior year period. Gross margin is calculated as the sum of
gross revenue non-directly delivered programs and gross revenue
directly delivered programs less cost of sales non-directly
delivered programs and costs of sales directly delivered
programs. The higher current period gross margin percentage is
reflective of increased travel and lower cost of sales from
adjustments for prior period travel costs.
Fourth quarter operating expenses from continuing operations
were $9.0 million compared to $9.8 million in the prior year
period. Excluding special items, fourth quarter 2014 operating
expenses were $8.7 million, a decline of $0.5 million, or 5.2
percent, compared to the same time in 2013. Other income was
negatively impacted in the current period due to realized losses on
the early redemption of securities as well as from foreign exchange
expense to record hedge ineffectiveness.
The Company reported a net loss during the fourth quarter of
2014 of $8.1 million, or $0.48 per diluted share, compared to a net
loss of $5.5 million, or $0.33 per diluted share, in
2013.
Full Year December 31, 2014 Results
During the year ended December 31, 2014, the Company traveled
16,092 delegates compared to 18,251 delegates during 2013, a 12
percent decline year-over-year. The prior year includes 917
Discovery Student Adventures and China traveled students affecting
year-over-year comparability given the Company's decision to not
operate these programs in 2014. Total revenue from continuing
operations of $39.6 million declined 16.2 percent from $47.2
million in the same period last year driven by the decline in
travelers. Gross margin from continuing operations for 2014
was $33.3 million, down from $40.2 million in 2013, with gross
margin percentage at 33.5 percent compared to the prior year at
35.8 percent. The lower current period gross margin percentage is
reflective of higher land vendor program costs from higher foreign
exchange rates, a higher ratio of teacher leaders to traveling
students, and lower overall travelling group sizes negatively
impacting fixed costs year-over-year, as well as a program
merchandise write-down of $0.6 million in the current year.
Year-to-date, operating expenses from continuing operations
excluding special items decreased $4.7 million, or 11.3 percent
compared to the prior year, to $37.1 million. These savings
over the prior year are the result of the Company's continued
streamlining of operations and restructuring activities to focus on
its core Student Ambassador programs and cost cutting
initiatives.
Special items of $13.9 million, before tax impact, for 2014 are
more fully described in a table to this release, and include
discontinued operations from the third quarter 2014 sale of
BookRags, restructuring charges, asset impairment and other charges
of $2.5 million related to the sale of the Company's corporate
headquarters, and separation and other related benefit costs from
the workforce reduction and other personnel changes.
During the second quarter of 2014, the Company recorded a
valuation allowance on its deferred tax assets, resulting in a
reduced deferred tax benefit of $0.2 million for the year-to-date
period. The Company does not anticipate having current tax
expense until its net operating loss carry forward has been
absorbed.
During the third quarter of 2014, the Company announced it had
consummated the sale of its wholly-owned subsidiary
BookRags. All activities related to BookRags are reflected as
discontinued operations for all periods presented, and for
comparability of ongoing business activities, are included within
special items.
Net loss for the year ended December 31, 2014 was $17.5 million,
or $1.03 per diluted share, compared to a net loss of $7.1 million,
or $0.42 per diluted share, in the prior year period.
Balance Sheet and Liquidity
Total assets at December 31, 2014 were $66.5 million compared to
$88.4 million one year ago. Cash, cash equivalents and
short-term available-for-sale securities increased $15.9 million to
$61.5 million at December 31, 2014 compared to the balance at
December 31, 2013. The Company sold BookRags during the third
quarter of 2014 for $5.0 million and during the fourth quarter of
2014, sold its corporate headquarters for $9.0 million in gross
proceeds, increasing its cash balance. Long-term assets
totaled $2.6 million at December 31, 2014 compared to $32.6 million
at December 31, 2013, the decrease also reflective of these two
transactions. Total liabilities were $27.3 million, including
$23.2 million in participant deposits for future
travel. Participant deposits are down 12.1 percent from one
year ago. Deployable cash, a non-GAAP measure defined in the
attached schedules, at December 31, 2014, totaled $36.9 million, a
$14.2 million increase over 2013.
The below table summarizes the cash flows as further disclosed
in the accompanying financial statements. Free cash flow, a
non-GAAP measure is defined as cash flow from operations less
purchase of property, equipment and intangibles, is also noted (in
thousands). We believe this non-GAAP measurement is useful to
investors in understanding the cash generated or distributed within
the current period for future use in operations.
|
UNAUDITED |
|
Twelve months ended December 31, |
|
2014 |
2013 |
Net cash provided by operating
activities |
$ 2,876 |
$ 14,755 |
Purchases of property, equipment and
intangibles |
(1,438) |
(3,454) |
Free cash flow |
1,438 |
11,301 |
|
|
|
Net purchase of available-for-sale
securities |
(22,237) |
(4,320) |
Dividend payments to shareholders |
-- |
(1,017) |
Repurchase of common stock |
(203) |
(510) |
Other cash flows, net |
13,531 |
(2,131) |
Net increase (decrease) in cash and cash
equivalents |
$ (7,471) |
$ 3,323 |
2015 Travel Season
As of February 8, 2015, enrolled revenue for 2015 travel
programs was $89.1 million, down 25.3 percent from the same point
last year, based on enrolled travelers of 14,870 compared to
19,000. Enrolled revenue for the Company's core product, Student
Ambassadors, is down 27.9 percent to $79.3 million compared to
$110.0 million at the same date last year, based on enrolled
travelers of 11,221 compared to 15,512. For the full year 2015, the
Company estimates a range of between 9,000 and 10,000 total Student
Ambassador travelers compared to 12,265 total travelers in
2014.
Enrolled revenue consists of estimated gross receipts to be
recognized upon travel of an enrolled participant and revenue
recognized for any delegates who have completed travel for the
travel year referenced. Reported net enrollments consist of all
participants who have enrolled in the Company's programs less those
that have already withdrawn, including travel that has been
completed. Enrolled revenue may not result in actual gross
receipts eventually recognized by the Company due to both
withdrawals from the Company's programs and expected future
enrollments.
About Ambassadors Group, Inc.
Ambassadors Group, Inc. (Nasdaq:EPAX) is an education and
student travel company located in Spokane, Washington.
Additional information about Ambassadors Group, Inc. is
available at www.peopletopeople.com and www.ambassadorsgroup.com.
In this press release, "Company", "we", "us", and "our" refer to
Ambassadors Group, Inc. and its subsidiaries.
Forward-Looking Statements
This press release contains forward-looking statements regarding
actual and expected financial performance and the reasons for
variances between period-to-period 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 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 may not reflect risks related to international unrest,
outbreak of disease, conditions in the travel industry, the direct
marketing environment, changes in economic conditions, changes in
foreign currency rates and changes in the competitive environment.
We expressly disclaim any obligation to provide public updates or
revisions to any forward-looking statements to reflect any changes
in expectations or any change in events. Although we believe the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, we can give no assurance that our
expectations will be met. For a more complete discussion of certain
risks and uncertainties that could cause actual results to differ
materially from anticipated results, please refer to the
Ambassadors Group, Inc. 10-K filed with the SEC on March 27, 2014,
and its proxy statement filed with the SEC on April 11, 2014.
AMBASSADORS GROUP,
INC. |
CONSOLIDATED
STATEMENTS OF OPERATIONS |
(in thousands,
except per share data) |
|
|
UNAUDITED |
|
Quarter ended December 31, |
|
2014 |
2013 |
Net revenue, non-directly delivered programs
(1) |
$ 797 |
$ 498 |
Gross revenue, directly delivered
programs (2) |
-- |
8 |
Total
revenue |
797 |
506 |
Cost of sales, directly delivered programs
(2) |
(97) |
(7) |
Gross margin
(3) |
894 |
513 |
|
|
|
Operating expenses: |
|
|
Selling and marketing |
6,269 |
6,544 |
General and administration |
2,390 |
2,755 |
Restructuring costs |
172 |
456 |
Asset impairments |
167 |
5 |
Total operating expenses |
8,998 |
9,760 |
|
|
|
Operating
loss |
(8,104) |
(9,247) |
|
|
|
Other income (expense): |
|
|
Interest, dividend income, and
gain (loss) on sale of securities |
(8) |
174 |
Foreign currency and other
income (expense) |
(103) |
1 |
Total other income
(expense) |
(111) |
175 |
Loss before income tax
benefit |
(8,215) |
(9,072) |
Income tax benefit |
238 |
3,351 |
|
|
|
Loss from continuing
operations |
(7,977) |
(5,721) |
|
|
|
Discontinued operations: |
|
|
Income (loss) from discontinued
segment |
(18) |
344 |
Income tax provision |
(149) |
(119) |
Net income (loss) from discontinued
operations |
(167) |
225 |
|
|
|
Net Loss |
$ (8,144) |
$ (5,496) |
|
|
|
Weighted average shares outstanding –
basic |
17,083 |
16,746 |
Weighted average shares outstanding –
diluted |
17,083 |
16,746 |
|
|
|
Loss from continuing operations per share —
basic |
$ (0.47) |
$ (0.34) |
Loss from continuing operations per share —
diluted |
$ (0.47) |
$ (0.34) |
|
|
|
Income (loss) from discontinued segment per
share — basic |
$ (0.01) |
$ 0.01 |
Income (loss) from discontinued segment per
share — diluted |
$ (0.01) |
$ 0.01 |
(1) Net revenue, non-directly delivered programs consists of
gross revenue, less program pass-through expenses for non-directly
delivered programs because we primarily engage third-party
operators to perform these services.
|
UNAUDITED |
|
Quarter ended December 31, |
|
2014 |
2013 |
%
Change |
Gross revenue |
$ 2,498 |
$ 1,972 |
27% |
Cost of sales |
1,701 |
1,474 |
15% |
Net revenue |
$ 797 |
$ 498 |
60% |
(2) Gross revenue and cost of sales for directly delivered
programs are reported as separate items because we plan, organize
and operate all activities, including speakers, facilitators,
events, accommodations and transportation.
(3) Gross margin is calculated as the sum of gross revenue
non-directly delivered programs and gross revenue directly
delivered programs less cost of sales non-directly delivered
programs and costs of sales directly delivered programs. Gross
margin percentage is calculated as gross margin divided by the sum
of gross revenue non-directly delivered programs and gross revenue
directly delivered programs.
AMBASSADORS GROUP,
INC. |
CONSOLIDATED STATEMENTS
OF OPERATIONS |
(in thousands, except
per share data) |
|
UNAUDITED |
|
Year
ended December 31, |
|
2014 |
2013 |
Net revenue, non-directly delivered programs
(1) |
$ 29,823 |
$ 36,752 |
Gross revenue, directly delivered
programs (2) |
9,734 |
10,468 |
Total
revenue |
39,557 |
47,220 |
Cost of sales, directly delivered programs
(2) |
5,719 |
7,046 |
Cost of sales, program merchandise
markdown |
554 |
-- |
Gross margin
(3) |
33,284 |
40,174 |
|
|
|
Operating expenses: |
|
|
Selling and marketing |
27,137 |
30,819 |
General and administration |
11,037 |
13,762 |
Restructuring costs |
1,928 |
2,212 |
Asset impairments |
2,517 |
6,466 |
Total operating expenses |
42,619 |
53,259 |
|
|
|
Operating
loss |
(9,335) |
(13,085) |
|
|
|
Other income (expense): |
|
|
Interest, dividend income, and
gain (loss) on sale of securities |
348 |
531 |
Foreign currency and other
income (expense) |
(97) |
23 |
Total other income |
251 |
554 |
Loss before income tax
benefit (provision) |
(9,084) |
(12,531) |
Income tax benefit (provision) |
(178) |
4,620 |
|
|
|
Loss from continuing
operations |
(9,262) |
(7,911) |
|
|
|
Discontinued operations: |
|
|
Income (loss) from discontinued
segment, including impairment and loss on disposal of $9.7
million |
(9,316) |
1,303 |
Income tax benefit
(provision) |
1,036 |
(469) |
Net income (loss) from discontinued
operations |
(8,280) |
834 |
|
|
|
Net Loss |
$ (17,542) |
$ (7,077) |
|
|
|
Weighted average shares outstanding –
basic |
17,052 |
16,713 |
Weighted average shares outstanding –
diluted |
17,052 |
16,713 |
|
|
|
Loss from continuing operations per share —
basic |
$ (0.54) |
$ (0.47) |
Loss from continuing operations per share —
diluted |
$ (0.54) |
$ (0.47) |
|
|
|
Income (loss) from discontinued segment,
including impairment per share — basic |
$ (0.49) |
$ 0.05 |
Income (loss) from discontinued segment,
including impairment per share — diluted |
$ (0.49) |
$ 0.05 |
(1) Net revenue, non-directly delivered programs consists of
gross revenue, less program pass-through expenses for non-directly
delivered programs because we primarily engage third-party
operators to perform these services.
|
UNAUDITED |
|
Year
ended December 31, |
|
2014 |
2013 |
%
Change |
Gross revenue |
$ 89,745 |
$ 101,776 |
-12% |
Cost of sales |
59,922 |
65,024 |
-8% |
Net revenue |
$ 29,823 |
$ 36,752 |
-19% |
(2) Gross revenue and cost of sales for directly delivered
programs are reported as separate items because we plan, organize
and operate all activities, including speakers, facilitators,
events, accommodations and transportation.
(3) Gross margin is calculated as the sum of gross revenue
non-directly delivered programs and gross revenue directly
delivered programs less cost of sales non-directly delivered
programs and costs of sales directly delivered programs. Gross
margin percentage is calculated as gross margin divided by the sum
of gross revenue non-directly delivered programs and gross revenue
directly delivered programs.
AMBASSADORS GROUP,
INC. |
CONSOLIDATED BALANCE
SHEETS |
(in thousands, except
per share data) |
|
|
UNAUDITED |
AUDITED |
|
December
31, |
December
31, |
|
2014 |
2013 |
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 2,002 |
$ 9,473 |
Restricted cash |
400 |
-- |
Available-for-sale securities |
59,502 |
36,174 |
Prepaid program cost and expenses |
1,335 |
7,069 |
Accounts receivable |
666 |
1,792 |
Deferred tax assets |
-- |
1,295 |
Total current assets |
63,905 |
55,803 |
Property and equipment, net |
2,429 |
18,452 |
Available-for-sale securities |
-- |
719 |
Intangibles |
-- |
3,522 |
Goodwill |
70 |
9,781 |
Other long-term assets |
81 |
82 |
Total assets |
$ 66,485 |
$ 88,359 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
Current liabilities: |
|
|
Accounts payable and accrued expenses |
$ 2,794 |
$ 3,587 |
Participants' deposits |
23,161 |
26,362 |
Foreign currency exchange contracts |
1,345 |
244 |
Deferred tax liabilities |
18 |
-- |
Other liabilities |
1 |
119 |
Total current
liabilities |
27,319 |
30,312 |
Foreign currency exchange contracts |
-- |
52 |
Deferred tax liabilities |
6 |
2,087 |
Total liabilities |
27,325 |
32,451 |
Stockholders' equity |
39,160 |
55,908 |
Total liabilities and stockholders'
equity |
$ 66,485 |
$ 88,359 |
|
|
|
|
AMBASSADORS GROUP,
INC. |
CONSOLIDATED STATEMENTS
OF CASH FLOWS |
(in
thousands) |
|
|
UNAUDITED |
|
December 31, |
|
2014 |
2013 |
Cash flows from operating
activities: |
|
|
Net loss |
$ (17,542) |
$ (7,077) |
Adjustments to reconcile net loss to net cash
provided by operating activities: |
|
|
Depreciation and
amortization |
5,755 |
5,368 |
Stock-based compensation |
1,475 |
2,433 |
Deferred income tax
benefit |
(877) |
(3,319) |
Loss on foreign currency
exchange contracts |
99 |
-- |
Loss on available for sale
securities |
150 |
-- |
Loss on disposition and
impairment of property and equipment |
1,933 |
6,466 |
Impairment and loss on sale of
discontinued operations |
9,676 |
-- |
Program merchandise
writedown |
554 |
-- |
Excess tax shortfall from
stock-based compensation |
109 |
2,136 |
Change in assets and liabilities: |
|
|
Accounts receivable and other
assets |
1,070 |
(939) |
Prepaid program costs and
expenses |
5,152 |
9,673 |
Accounts payable, accrued
expenses, and other current liabilities |
(1,477) |
(613) |
Participants' deposits |
(3,201) |
627 |
Net cash provided by operating
activities |
2,876 |
14,755 |
|
|
|
Cash flows from investing
activities: |
|
|
Purchase of available-for-sale
securities |
(47,966) |
(27,448) |
Proceeds from sale of
available-for-sale securities |
25,729 |
23,128 |
Purchase of property and
equipment |
(1,249) |
(3,110) |
Proceeds from sale of property
and equipment |
9,040 |
-- |
Purchase of intangibles |
(189) |
(344) |
Proceeds from sale of BookRags,
Inc. |
4,600 |
-- |
Net cash used in investing
activities |
(10,035) |
(7,774) |
|
|
|
Cash flows from financing
activities: |
|
|
Repurchase of common stock |
(203) |
(510) |
Dividend payment to
shareholders |
-- |
(1,017) |
Proceeds from exercise of stock
options |
-- |
5 |
Excess tax shortfall from
stock-based compensation |
(109) |
(2,136) |
Net cash used in financing
activities |
(312) |
(3,658) |
|
|
|
Net increase (decrease) in cash and cash
equivalents |
(7,471) |
3,323 |
Cash and cash equivalents, beginning of
period |
9,473 |
6,150 |
Cash and cash equivalents, end of
period |
$ 2,002 |
$ 9,473 |
|
|
|
SPECIAL ITEMS
During the third quarter of 2013, the Company initiated a
corporate restructuring plan aimed at streamlining its cost
structure and focusing the business primarily on its core Student
Ambassador Programs in order to promote the long-term health of the
organization. At that time, the Company announced its decision
to restructure two of its travel programs believed no longer
financially viable in their current form – Discovery Student
Adventures and People to People China.
As part of the Company's restructuring plan and as previously
announced, during the second quarter of 2014 the Company completed
a workforce reduction and incurred pre-tax charges of approximately
$1.9 million for severance benefits and other related expenses that
is included within restructuring costs in the table below. Of
the $1.9 million in expense, a $0.4 million non-cash expense
reflected accelerated vesting of previously awarded stock options
and stock grants. In addition, the Company has incurred other
restructuring charges including accelerated depreciation on assets
to be replaced.
During the third quarter of 2014, and in furtherance to its
restructuring plan, the Company announced it consummated a sale of
its wholly-owned subsidiary BookRags. All activities related
to BookRags are reflected as discontinued operations for all
periods presented, and for comparability of ongoing business
activities, are included in special items below. Discontinued
operations for the current year-to-date period include the goodwill
impairment of $9.7 million that was recorded during the second
quarter of 2014.
During the fourth quarter of 2014 the Company closed on the sale
of its corporate headquarters, listed for sale since April 2012,
for $9.0 million in gross proceeds. During the second quarter
of 2014, the Company recorded an asset impairment of $2.0 million
to lower its carrying value to the anticipated sales price. As
part of the transaction, the Company incurred approximately $0.5
million in closing and other fees associated with its
disposition.
In connection with the previously announced termination of the
Company's former interim chief executive officer, during the second
quarter of 2014 the Company incurred pre-tax charges of
approximately $0.7 million for severance benefits and other related
expenses, including a non-cash expense of approximately $0.3
million to reflect accelerated vesting of previously awarded stock
options and stock grants under the terms of the executive's
separation agreement. During the first quarter of 2013, the
Company incurred separation expense of approximately $2.7 million
upon the resignation of two executives.
As a result of these events, the operations as presented in the
accompanying financial statements for the three months and twelve
months ended December 31, 2014 and 2013 do not reflect a meaningful
comparison between periods or in relation to the operational
activities of the Company. In order to provide more meaningful
disclosure, the following table represents a reconciliation of
certain earnings measures before special items to those same items
after the impact of special items (in thousands except per share
data):
|
UNAUDITED |
|
Net
Loss |
EPS |
|
Three
months ended December 31, |
Three
months ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
Amount before special
items |
$ (7,658) |
$ (5,334) |
$ (0.45) |
$ (0.32) |
Discontinued operations, net of tax |
(167) |
225 |
(0.01) |
0.01 |
Asset impairments, loss on sale of
building |
(167) |
(5) |
(0.01) |
-- |
Restructuring costs |
(172) |
(456) |
(0.01) |
(0.03) |
Legal and other fees |
10 |
(152) |
-- |
-- |
Tax impact |
10 |
226 |
-- |
0.01 |
Amount per consolidated statement of
operations |
$ (8,144) |
$ (5,496) |
$ (0.48) |
$ (0.33) |
|
|
|
|
|
|
UNAUDITED |
|
Net
Loss |
EPS |
|
Year
ended December 31, |
Year
ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
Amount before special
items |
$ (3,646) |
$ (686) |
$ (0.21) |
$ (0.04) |
Discontinued operations, net of tax |
(8,280) |
834 |
(0.49) |
0.05 |
Asset impairments, loss on sale of
building |
(2,517) |
(6,466) |
(0.15) |
(0.39) |
Restructuring costs |
(1,928) |
(2,212) |
(0.11) |
(0.13) |
Legal and other fees |
(394) |
23 |
(0.02) |
-- |
Separation payments |
(669) |
(2,789) |
(0.04) |
(0.17) |
Tax impact |
(108) |
4,219 |
(0.01) |
0.25 |
Amount per consolidated statement of
operations |
$ (17,542) |
$ (7,077) |
$ (1.03) |
$ (0.42) |
DEPLOYABLE CASH
Deployable cash is a non-GAAP liquidity measurement and is
calculated as the sum of cash and cash equivalents, short-term
available-for-sale securities, and prepaid program costs and
expenses, less the sum of accounts payable, accrued expenses and
other short-term liabilities (excluding deferred taxes) and
participant deposits. We believe this non-GAAP measurement is
useful to investors in understanding important characteristics of
our business.
The following summarizes deployable cash at December 31, 2014
and 2013, (in thousands):
|
UNAUDITED |
|
December 31, |
|
2014 |
2013 |
Cash, cash equivalents and short-term
available-for-sale securities |
$ 61,504 |
$ 45,647 |
Prepaid program cost and expenses |
1,335 |
7,069 |
Less: Participants' deposits |
(23,161) |
(26,362) |
Less: Accounts payable / accruals / other
liabilities |
(2,794) |
(3,706) |
Deployable cash |
$ 36,884 |
$ 22,648 |
CONTACT: Investor Relations:
Lisa Netz
Ambassadors Group, Inc.
(509) 568-7800
Ambassadors (NASDAQ:EPAX)
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