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Ambassadors Group Inc. (NASDAQ:EPAX), a leading provider of educational
travel experiences, announced $0.80 fully diluted per share earnings for
the quarter ended September 30, 2006, a 17 percent increase over $0.68
fully diluted per share earnings for the same period one year ago. Net
income for the third quarter 2006 was $17.1 million, compared to $14.6
million for the third quarter 2005. Comparing the nine months ended
September 30, 2006 and 2005, fully diluted per share earnings increased
17 percent to $1.50 in 2006 from $1.28 in 2005, and net income increased
to $32.1 million in 2006 from $27.2 million in 2005.
Jeff Thomas, president and chief executive officer of Ambassadors Group,
Inc. stated, “We are pleased with the results
of our 2006 summer travel season. We have continued to grow by focusing
on delivering high-quality, mission-oriented educational travel
programs. This summer, we traveled over 35,000 delegates to over 28
different countries. Our customer surveys continue to demonstrate that
we are delivering on our promises: 98% of our student delegates this
summer said that we meet or beat their program expectations.
“The global environment continues to present
unusual challenges to which we must respond quickly and comprehensively.
For example, we had four groups of students –
approximately 160 students – passing through
London’s Heathrow airport on the day of the ‘near
miss’ in August. As usual, we implemented our
response team to ensure that our students were safe and their parents
well informed.
"Our gross margin was negatively impacted this quarter due to incurring
higher than expected international air fares, driven by increasing
demand for international travel and high fuel prices.
“At the same time as we focus on operating our
business efficiently and effectively, we continue to review and evaluate
our capital deployment plans. Year to date, we have returned $8.3
million to shareowners in the form of dividends ($5.3 million) and share
repurchases ($3.0 million).
“On September 14, 2006, we held a 50th
Anniversary Dinner for People to People International in the Ronald
Reagan building in Washington, DC. Almost 700 people were in attendance
to hear Mary Jean Eisenhower (granddaughter of People to People
International Founder, Dwight D. Eisenhower) and Tom Brokaw discuss the
importance of creating international understanding through personal
interaction.”
Quarter Ended September 30, 2006
Gross program receipts increased 25 percent, to $102.7 million, in the
third quarter 2006 from $82.2 million in the third quarter 2005. Net
revenue increased 15 percent, to $35.1 million, in the third quarter
2006 from $30.4 million in the same period of 2005. The increases in
gross program receipts and net revenue are due to an 18 percent increase
in traveled delegates quarter over quarter. During the third quarters of
2006 and 2005, we traveled approximately 19,500 and 16,500 delegates,
respectively.
Operating expenses were $11.6 million and $9.7 million in the third
quarters 2006 and 2005, respectively. The $1.8 million increase was
attributable to expenses supporting a greater number of delegates
traveling and increased marketing expenses for 2007 travel programs.
Other income increased 65 percent in the third quarter 2006, to $1.3
million from $0.8 million in the third quarter 2005. The increased
interest income was earned through increased rates of return on higher
cash, cash equivalents and available-for-sale security balances held
during the quarter ended September 30, 2006.
Nine Months Ended September 30, 2006
Comparing the nine months ended September 30, 2006 and 2005, gross
program receipts increased 22 percent to $206.9 million from $169.7
million, and net revenue increased 17 percent to $72.8 million from
$62.3 million, respectively. The increased gross program receipts and
net revenue resulted from a 14 percent increase in delegates traveling
in the first nine months of 2006 compared to the first nine months of
2005, partially offset by decreased margins year over year. During the
nine months ended September 30, 2006 and 2005, we traveled approximately
40,600 and 35,600 delegates, respectively.
Operating expenses for the nine months ended September 30, 2006 and 2005
were $29.6 and $24.0 million, respectively. The $5.7 million increase is
attributable to costs associated with the increased number of delegates
traveling, as well as increased selling and tour expenses associated
with our 2006 and 2007 travel programs.
Other income in the nine month period ended September 30, 2006 increased
80 percent to $3.6 million from $2.0 million in the nine months ended
September 30, 2005. This $1.6 million increase resulted from increased
average cash, cash equivalents and available-for-sale security
investment balances and higher interest rates.
Cash Flow and Balance Sheet
Total assets increased 25 percent to $137.7 million at September 30,
2006 from $110.0 million at September 30, 2005. Cash, cash equivalents,
and available-for-sale securities were $120.7 million, 88 percent of
total assets, at September 30, 2006. Our deployable cash (see definition
on final page of the press release) increased $20.3 million, 31 percent,
to $86.0 million and our participant deposits increased $8.9 million, 44
percent, to $29.5 million year on year.
Cash provided by operations during the nine months ended September 30,
2006 decreased $5.1 million to $13.6 million in comparison to $18.7
million for the nine months ended September 30, 2005. This decrease
resulted from increased program deposits and accounts payable activity
for fourth quarter delegate travel in 2006 versus 2005. Cash used in
investing activities increased $6.8 million in the corresponding periods
primarily due to the timing of short-term investment purchases and
expenditures related to the construction of a new corporate headquarters.
Cash used in financing activities increased slightly year over year, to
$5.3 million from $4.9 million during the nine months ended September
30, 2006 and 2005, respectively. This net increase resulted from
quarterly dividends increasing to $5.3 million in 2006 from $4.0 million
in 2005, netted with $1.7 million excess tax benefits from stock based
compensation during 2006.
The following summarizes our statements of operations for the quarters
and the nine months ended September 30, 2006 and 2005 (in thousands,
except per share amounts).
UNAUDITED
Nine months ended September 30,
Three months ended September 30,
2006
2005
2006
2005
Gross program receipts
$
206,852
$
169,665
$
102,733
$
82,161
Net revenue
$
72,778
$
62,318
$
35,093
$
30,447
Operating expenses:
Selling and tour promotion
22,925
19,421
9,176
7,991
General and administration
6,707
4,545
2,399
1,754
Total operating expenses
29,632
23,966
11,575
9,745
Operating income
43,146
38,352
23,518
20,702
Other income, net
3,626
2,010
1,263
765
Income before tax
46,772
40,362
24,781
21,467
Income tax provision
14,654
13,138
7,682
6,855
Net income
$
32,118
$
27,224
$
17,099
$
14,612
Earnings per share – basic
$
1.56
$
1.34
$
0.83
$
0.72
Weighted average shares outstanding –
basic
20,559
20,258
20,609
20,336
Earnings per share – diluted
$
1.50
$
1.28
$
0.80
$
0.68
Weighted average shares outstanding –
diluted
21,390
21,303
21,418
21,379
Gross program receipts reflect total payments received by us for
directly delivered and non-directly delivered programs. Gross program
receipts less program pass-through expenses for non-directly delivered
programs and cost of sales for directly delivered programs constitute
our net revenues. For non-directly delivered programs, we do not
actively deliver the operations of each program. For directly delivered
programs, however, we organize and operate all activities including
speakers, facilitators, events, accommodations and transportation.
We have 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
program marketing.
The following summarizes our balance sheets as of September 30, 2006,
September 30, 2005 and December 31, 2005 (in thousands):
UNAUDITED
September 30,
December 31,
2006
2005
2005
Assets
Cash and cash equivalents
$
26,329
$
22,670
$
26,916
Available-for-sale securities
94,418
76,649
89,688
Foreign currency exchange contracts
687
—
—
Prepaid program cost and expenses
5,927
3,656
1,596
Other current assets
784
1,208
955
Total current assets
128,145
104,183
119,155
Property and equipment, net
8,375
5,032
5,140
Deferred income tax
1,005
660
584
Other assets
167
161
167
Total assets
$
137,692
$
110,036
$
125,046
Liabilities and Stockholders’
Equity
Accounts payable and accruals
$
9,772
$
13,821
$
6,022
Foreign currency exchange contracts
—
1,142
1,896
Other liabilities
1,183
2,646
2,596
Participants’ deposits
29,517
20,568
47,463
Capital lease
188
183
180
Total current liabilities
40,660
38,360
58,157
Capital lease
245
401
387
Total liabilities
40,905
38,761
58,544
Stockholders’ equity
96,787
71,275
66,502
Total liabilities and stockholders’ equity
$
137,692
$
110,036
$
125,046
The following summarizes our statements of cash flows for the nine
months ended September 30, 2006 and 2005 (in thousands):
UNAUDITED
Nine months ended September 30,
2006
2005
Cash flows from operating activities:
Net income
$
32,118
$
27,224
Adjustments to reconcile net income:
Depreciation and amortization
1,083
781
Amortization of unearned compensation
541
307
Excess tax benefit from stock based compensation
(1,703)
—
Stock option expense
1,020
—
Change in assets and liabilities:
Prepaid program costs and expenses
(4,331)
(1,195)
Accounts payable and accrued expenses
3,537
10,096
Participants’ deposits
(17,946)
(18,040)
Other current assets
(699)
(454)
Net cash provided by operating activities
13,620
18,719
Cash flows from investing activities:
Net change in available-for-sale securities and other
(4,593)
(234)
Purchase of property and equipment and other
(4,318)
(1,902)
Net cash used in investing activities
(8,911)
(2,136)
Cash flows from financing activities:
Dividend payment to shareholders
(5,278)
(3,971)
Repurchase of common stock
(2,984)
(2,865)
Proceeds from exercise of stock options
1,397
1,904
Excess tax benefit from stock based compensation
1,703
—
Capital lease payments and other
(134)
(17)
Net cash used in financing activities
(5,296)
(4,949)
Net increase in cash and cash equivalents
(587)
11,634
Cash and cash equivalents, beginning of period
26,916
11,036
Cash and cash equivalents, end of period
$
26,329
$
22,670
Deployable cash is a non-GAAP liquidity measure. Deployable cash is
calculated as the sum of cash and cash equivalents, 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 foreign exchange currency contracts),
participant deposits and the current portion of long-term capital lease.
We believe this non-GAAP measure is useful to investors in understanding
the cash available to deploy for future business opportunities. The
following summarizes our deployable cash as of September 30, 2006,
September 30, 2005 and December 31, 2005 (in thousands):
UNAUDITED
September 30,
December 31,
2006
2005
2005
Cash, cash equivalents and available-for-sale securities
$
120,747
$
99,319
$
116,604
Prepaid program cost and expenses
5,927
3,656
1,596
Less: Participants’ deposits
(29,517)
(20,568)
(47,463)
Less: Accounts payable / accruals / other liabilities
(11,143)
(16,650)
(8,798)
Deployable cash
$
86,014
$
65,757
$
61,939
Quarterly conference call and webcast
We will host a conference call to discuss third quarter 2006 results of
operations on Thursday, October 19, 2006 at 8:30 a.m. Pacific Time. You
may join the call by dialing 866-578-5788 then entering the pass code:
Ambassadors Group. Or, you may also join the call via the Internet at www.ambassadorsgroup.com/EPAX.
For post-view access, you may dial 888-286-8010 with the pass code
49916860 and follow the prompts, or visit www.ambassadorsgroup.com/EPAX.
Post-view dial-in access will be available beginning October 19, 2006 at
1:30 p.m. until December 19, 2006. Post-view Webcast access will be
available following the conference call through December 19, 2006.
Business overview
Ambassadors Group, Inc. is a leading educational travel organization
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 international sports
challenges. Our professional programs emphasize meetings and seminars
between participants and persons in similar professions abroad. We are
headquartered in Spokane, Washington, with associates also in Denver,
Colorado and Washington, D.C. In this press release, “Company,”
“we,” “us,”
and “our” refer to
Ambassadors Group, Inc.
Forward-looking statements
This press release contains forward-looking statements regarding our
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 our 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 the conflict in the Middle East and international
unrest, outbreak of disease, conditions in the travel industry, direct
marketing environment, changes in economic conditions and changes in the
competitive environment. We expressly disclaim any obligation to provide
public updates or revisions to any forward-looking statements found
herein to reflect any changes in our 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 attained. For a more
complete discussion of these and other factors, please refer to the
Ambassadors Group, Inc. 10K filed March 9, 2006 and proxy filed April 7,
2006.
Ambassadors Group Inc. (NASDAQ:EPAX), a leading provider of
educational travel experiences, announced $0.80 fully diluted per
share earnings for the quarter ended September 30, 2006, a 17 percent
increase over $0.68 fully diluted per share earnings for the same
period one year ago. Net income for the third quarter 2006 was $17.1
million, compared to $14.6 million for the third quarter 2005.
Comparing the nine months ended September 30, 2006 and 2005, fully
diluted per share earnings increased 17 percent to $1.50 in 2006 from
$1.28 in 2005, and net income increased to $32.1 million in 2006 from
$27.2 million in 2005.
Jeff Thomas, president and chief executive officer of Ambassadors
Group, Inc. stated, "We are pleased with the results of our 2006
summer travel season. We have continued to grow by focusing on
delivering high-quality, mission-oriented educational travel programs.
This summer, we traveled over 35,000 delegates to over 28 different
countries. Our customer surveys continue to demonstrate that we are
delivering on our promises: 98% of our student delegates this summer
said that we meet or beat their program expectations.
"The global environment continues to present unusual challenges to
which we must respond quickly and comprehensively. For example, we had
four groups of students -- approximately 160 students -- passing
through London's Heathrow airport on the day of the 'near miss' in
August. As usual, we implemented our response team to ensure that our
students were safe and their parents well informed.
"Our gross margin was negatively impacted this quarter due to
incurring higher than expected international air fares, driven by
increasing demand for international travel and high fuel prices.
"At the same time as we focus on operating our business
efficiently and effectively, we continue to review and evaluate our
capital deployment plans. Year to date, we have returned $8.3 million
to shareowners in the form of dividends ($5.3 million) and share
repurchases ($3.0 million).
"On September 14, 2006, we held a 50th Anniversary Dinner for
People to People International in the Ronald Reagan building in
Washington, DC. Almost 700 people were in attendance to hear Mary Jean
Eisenhower (granddaughter of People to People International Founder,
Dwight D. Eisenhower) and Tom Brokaw discuss the importance of
creating international understanding through personal interaction."
Quarter Ended September 30, 2006
Gross program receipts increased 25 percent, to $102.7 million, in
the third quarter 2006 from $82.2 million in the third quarter 2005.
Net revenue increased 15 percent, to $35.1 million, in the third
quarter 2006 from $30.4 million in the same period of 2005. The
increases in gross program receipts and net revenue are due to an 18
percent increase in traveled delegates quarter over quarter. During
the third quarters of 2006 and 2005, we traveled approximately 19,500
and 16,500 delegates, respectively.
Operating expenses were $11.6 million and $9.7 million in the
third quarters 2006 and 2005, respectively. The $1.8 million increase
was attributable to expenses supporting a greater number of delegates
traveling and increased marketing expenses for 2007 travel programs.
Other income increased 65 percent in the third quarter 2006, to
$1.3 million from $0.8 million in the third quarter 2005. The
increased interest income was earned through increased rates of return
on higher cash, cash equivalents and available-for-sale security
balances held during the quarter ended September 30, 2006.
Nine Months Ended September 30, 2006
Comparing the nine months ended September 30, 2006 and 2005, gross
program receipts increased 22 percent to $206.9 million from $169.7
million, and net revenue increased 17 percent to $72.8 million from
$62.3 million, respectively. The increased gross program receipts and
net revenue resulted from a 14 percent increase in delegates traveling
in the first nine months of 2006 compared to the first nine months of
2005, partially offset by decreased margins year over year. During the
nine months ended September 30, 2006 and 2005, we traveled
approximately 40,600 and 35,600 delegates, respectively.
Operating expenses for the nine months ended September 30, 2006
and 2005 were $29.6 and $24.0 million, respectively. The $5.7 million
increase is attributable to costs associated with the increased number
of delegates traveling, as well as increased selling and tour expenses
associated with our 2006 and 2007 travel programs.
Other income in the nine month period ended September 30, 2006
increased 80 percent to $3.6 million from $2.0 million in the nine
months ended September 30, 2005. This $1.6 million increase resulted
from increased average cash, cash equivalents and available-for-sale
security investment balances and higher interest rates.
Cash Flow and Balance Sheet
Total assets increased 25 percent to $137.7 million at September
30, 2006 from $110.0 million at September 30, 2005. Cash, cash
equivalents, and available-for-sale securities were $120.7 million, 88
percent of total assets, at September 30, 2006. Our deployable cash
(see definition on final page of the press release) increased $20.3
million, 31 percent, to $86.0 million and our participant deposits
increased $8.9 million, 44 percent, to $29.5 million year on year.
Cash provided by operations during the nine months ended September
30, 2006 decreased $5.1 million to $13.6 million in comparison to
$18.7 million for the nine months ended September 30, 2005. This
decrease resulted from increased program deposits and accounts payable
activity for fourth quarter delegate travel in 2006 versus 2005. Cash
used in investing activities increased $6.8 million in the
corresponding periods primarily due to the timing of short-term
investment purchases and expenditures related to the construction of a
new corporate headquarters.
Cash used in financing activities increased slightly year over
year, to $5.3 million from $4.9 million during the nine months ended
September 30, 2006 and 2005, respectively. This net increase resulted
from quarterly dividends increasing to $5.3 million in 2006 from $4.0
million in 2005, netted with $1.7 million excess tax benefits from
stock based compensation during 2006.
The following summarizes our statements of operations for the
quarters and the nine months ended September 30, 2006 and 2005 (in
thousands, except per share amounts).
-0-
*T
UNAUDITED
--------------------------------------
Three months
Nine months ended ended
September 30, September 30,
------------------ -----------------
2006 2005 2006 2005
------------------ -----------------
Gross program receipts $206,852 $169,665 $102,733 $ 82,161
Net revenue $ 72,778 $ 62,318 $ 35,093 $ 30,447
Operating expenses:
Selling and tour promotion 22,925 19,421 9,176 7,991
General and administration 6,707 4,545 2,399 1,754
-------- -------- -------- --------
Total operating expenses 29,632 23,966 11,575 9,745
Operating income 43,146 38,352 23,518 20,702
Other income, net 3,626 2,010 1,263 765
-------- -------- -------- --------
Income before tax 46,772 40,362 24,781 21,467
Income tax provision 14,654 13,138 7,682 6,855
-------- -------- -------- --------
Net income $ 32,118 $ 27,224 $ 17,099 $ 14,612
======== ======== ======== ========
Earnings per share - basic $ 1.56 $ 1.34 $ 0.83 $ 0.72
Weighted average shares
outstanding - basic 20,559 20,258 20,609 20,336
Earnings per share - diluted $ 1.50 $ 1.28 $ 0.80 $ 0.68
Weighted average shares
outstanding - diluted 21,390 21,303 21,418 21,379
*T
Gross program receipts reflect total payments received by us for
directly delivered and non-directly delivered programs. Gross program
receipts less program pass-through expenses for non-directly delivered
programs and cost of sales for directly delivered programs constitute
our net revenues. For non-directly delivered programs, we do not
actively deliver the operations of each program. For directly
delivered programs, however, we organize and operate all activities
including speakers, facilitators, events, accommodations and
transportation.
We have 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 program marketing.
The following summarizes our balance sheets as of September 30,
2006, September 30, 2005 and December 31, 2005 (in thousands):
-0-
*T
UNAUDITED
---------------------------------
September 30, December 31,
-------------------- ------------
2006 2005 2005
--------- ---------- ------------
Assets
-------------------------------------
Cash and cash equivalents $ 26,329 $ 22,670 $ 26,916
Available-for-sale securities 94,418 76,649 89,688
Foreign currency exchange contracts 687 -- --
Prepaid program cost and expenses 5,927 3,656 1,596
Other current assets 784 1,208 955
--------- ---------- ------------
Total current assets 128,145 104,183 119,155
Property and equipment, net 8,375 5,032 5,140
Deferred income tax 1,005 660 584
Other assets 167 161 167
--------- ---------- ------------
Total assets $137,692 $110,036 $125,046
========= ========== ============
Liabilities and Stockholders' Equity
-------------------------------------
Accounts payable and accruals $ 9,772 $ 13,821 $ 6,022
Foreign currency exchange contracts -- 1,142 1,896
Other liabilities 1,183 2,646 2,596
Participants' deposits 29,517 20,568 47,463
Capital lease 188 183 180
--------- ---------- ------------
Total current liabilities 40,660 38,360 58,157
Capital lease 245 401 387
--------- ---------- ------------
Total liabilities 40,905 38,761 58,544
--------- ---------- ------------
Stockholders' equity 96,787 71,275 66,502
--------- ---------- ------------
Total liabilities and stockholders'
equity $137,692 $110,036 $125,046
========= ========== ============
*T
The following summarizes our statements of cash flows for the nine
months ended September 30, 2006 and 2005 (in thousands):
-0-
*T
UNAUDITED
Nine months ended
September 30,
------------------
2006 2005
-------- --------
Cash flows from operating activities:
Net income $ 32,118 $ 27,224
Adjustments to reconcile net income:
Depreciation and amortization 1,083 781
Amortization of unearned compensation 541 307
Excess tax benefit from stock based compensation (1,703) --
Stock option expense 1,020 --
Change in assets and liabilities:
Prepaid program costs and expenses (4,331) (1,195)
Accounts payable and accrued expenses 3,537 10,096
Participants' deposits (17,946) (18,040)
Other current assets (699) (454)
--------- ---------
Net cash provided by operating activities 13,620 18,719
--------- ---------
Cash flows from investing activities:
Net change in available-for-sale securities and
other (4,593) (234)
Purchase of property and equipment and other (4,318) (1,902)
--------- ---------
Net cash used in investing activities (8,911) (2,136)
--------- ---------
Cash flows from financing activities:
Dividend payment to shareholders (5,278) (3,971)
Repurchase of common stock (2,984) (2,865)
Proceeds from exercise of stock options 1,397 1,904
Excess tax benefit from stock based compensation 1,703 --
Capital lease payments and other (134) (17)
--------- ---------
Net cash used in financing activities (5,296) (4,949)
--------- ---------
Net increase in cash and cash equivalents (587) 11,634
--------- ---------
Cash and cash equivalents, beginning of period 26,916 11,036
--------- ---------
Cash and cash equivalents, end of period $ 26,329 $ 22,670
========= =========
*T
Deployable cash is a non-GAAP liquidity measure. Deployable cash
is calculated as the sum of cash and cash equivalents, 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 foreign exchange currency contracts),
participant deposits and the current portion of long-term capital
lease. We believe this non-GAAP measure is useful to investors in
understanding the cash available to deploy for future business
opportunities. The following summarizes our deployable cash as of
September 30, 2006, September 30, 2005 and December 31, 2005 (in
thousands):
-0-
*T
UNAUDITED
----------------------------------
September 30, December 31,
2006 2005 2005
----------------------------------
Cash, cash equivalents and
available-for-sale securities $ 120,747 $ 99,319 $ 116,604
Prepaid program cost and expenses 5,927 3,656 1,596
Less: Participants' deposits (29,517) (20,568) (47,463)
Less: Accounts payable / accruals /
other liabilities (11,143) (16,650) (8,798)
---------- ---------- ------------
Deployable cash $ 86,014 $ 65,757 $ 61,939
========== ========== ============
*T
Quarterly conference call and webcast
We will host a conference call to discuss third quarter 2006
results of operations on Thursday, October 19, 2006 at 8:30 a.m.
Pacific Time. You may join the call by dialing 866-578-5788 then
entering the pass code: Ambassadors Group. Or, you may also join the
call via the Internet at www.ambassadorsgroup.com/EPAX. For post-view
access, you may dial 888-286-8010 with the pass code 49916860 and
follow the prompts, or visit www.ambassadorsgroup.com/EPAX. Post-view
dial-in access will be available beginning October 19, 2006 at 1:30
p.m. until December 19, 2006. Post-view Webcast access will be
available following the conference call through December 19, 2006.
Business overview
Ambassadors Group, Inc. is a leading educational travel
organization 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
international sports challenges. Our professional programs emphasize
meetings and seminars between participants and persons in similar
professions abroad. We are headquartered in Spokane, Washington, with
associates also in Denver, Colorado and Washington, D.C. In this press
release, "Company," "we," "us," and "our" refer to Ambassadors Group,
Inc.
Forward-looking statements
This press release contains forward-looking statements regarding
our 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 our
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 the conflict in the Middle East and
international unrest, outbreak of disease, conditions in the travel
industry, direct marketing environment, changes in economic conditions
and changes in the competitive environment. We expressly disclaim any
obligation to provide public updates or revisions to any
forward-looking statements found herein to reflect any changes in our
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 attained. For a more complete discussion of these
and other factors, please refer to the Ambassadors Group, Inc. 10K
filed March 9, 2006 and proxy filed April 7, 2006.