Delaware
|
No. 0-33347
|
91-1957010
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 5.07 | Submission of Matters to a Vote of Security Holders |
Nominee
|
For
|
Authority
Withheld
|
Percent of
Voted
|
Broker Non-
Votes
|
||||||||||||
Lisa O'Dell Rapuano
|
10,169,360
|
204,909
|
98.0
|
%
|
4,615,967
|
|||||||||||
Jefferson P. Gramm
|
10,197,792
|
176,477
|
98.3
|
%
|
4,615,967
|
|||||||||||
Peter H. Kamin
|
10,078,711
|
295,558
|
97.2
|
%
|
4,615,967
|
|||||||||||
Philip B. Livingston
|
10,173,560
|
200,709
|
98.1
|
%
|
4,615,967
|
Shares Voted
|
Percent of Voted
|
Percent of
Outstanding
|
||||||||||
For
|
9,538,099
|
91.9
|
%
|
55.2
|
%
|
|||||||
Against
|
793,671
|
7.7
|
%
|
4.6
|
%
|
|||||||
Abstain
|
42,499
|
0.4
|
%
|
0.3
|
%
|
|||||||
Broker Non-Votes
|
4,615,967
|
26.7
|
%
|
Shares Voted
|
Percent of Voted
|
Percent of
Outstanding
|
||||||||||
For
|
10,070,111
|
97.1
|
%
|
58.3
|
%
|
|||||||
Against
|
302,683
|
2.9
|
%
|
1.8
|
%
|
|||||||
Abstain
|
1,475
|
0.0
|
%
|
0.0
|
%
|
|||||||
Broker Non-Votes
|
4,615,967
|
26.7
|
%
|
Shares Voted
|
Percent of Voted
|
Percent of
Outstanding
|
||||||||||
For
|
14,969,997
|
99.9
|
%
|
86.6
|
%
|
|||||||
Against
|
3,497
|
0.0
|
%
|
0.0
|
%
|
|||||||
Abstain
|
16,742
|
0.1
|
%
|
0.1
|
%
|
Item 9.01 | Financial Statements and Exhibits. |
(d | Exhibits |
Exhibit 99.1: | Press Release, dated May 15, 2015 |
AMBASSADORS GROUP, INC.
|
||
Date May 15, 2015
|
By:
|
|
/s/ Philip B. Livingston
|
||
Philip B. Livingston
|
||
Chief Executive Officer (Principal Executive Officer)
|
Exhibit
Number |
|
Description
|
|
|
Press Release, dated May 15, 2015
|
· | Net loss of $6.6 million compared to a net loss before special items of $7.5 million during the first quarter of 2014. As a result of our seasonal business cycle, the Company typically incurs losses in the first quarter. |
· | Gross revenue from continuing operations, including non-directly delivered programs, of $0.3 million during the first quarter of 2015 compared to $0.4 million in the prior year period. The Company traveled 114 delegates compared to 183 delegates in the first quarter of 2014. |
· | Operating expenses for the quarter were $6.8 million, down 27.3 percent from $9.4 million in the prior year period excluding special items. |
· | Cash totaled $78.6 million at March 31, 2015 compared to $64.4 million on March 31, 2014, a $14.2 million increase year-over-year. Deployable cash, as defined herein, totaled $31.7 million compared to $15.0 million in the prior year period. |
· | Enrolled revenue for 2015 programs is down 17.6 percent year-over-year for all programs and 20.5 percent year-over-year for core Student Ambassadors Programs. |
UNAUDITED
|
||||||||
Quarter ended March 31,
|
||||||||
2015
|
2014
|
|||||||
Gross revenue, all travel programs
|
$
|
390
|
$
|
560
|
||||
Gross margin, all travel programs
|
143
|
180
|
||||||
Operating expense from continuing operations
|
6,847
|
9,701
|
||||||
Operating expense from continuing operations before special items
|
6,847
|
9,412
|
||||||
Loss from continuing operations
|
(6,612
|
)
|
(7,831
|
)
|
||||
Loss from continuing operations before special items
|
(6,612
|
)
|
(7,542
|
)
|
||||
Income from discontinued operations, net of tax
|
-
|
280
|
||||||
Net loss
|
(6,612
|
)
|
(7,551
|
)
|
||||
Net loss before special items
|
(6,612
|
)
|
(7,590
|
)
|
||||
Net loss per diluted share
|
(0.39
|
)
|
(0.45
|
)
|
||||
Net loss per diluted share before special items
|
(0.39
|
)
|
(0.45
|
)
|
UNAUDITED
Three months ended March 31, |
||||||||
2015
|
2014
|
|||||||
Net cash provided by operating activities
|
$
|
17,442
|
$
|
19,365
|
||||
Purchases of property, equipment and intangibles
|
(336
|
)
|
(760
|
)
|
||||
Free cash flow
|
17,106
|
18,605
|
||||||
Net purchase of available-for-sale securities
|
(14,627
|
)
|
(15,489
|
)
|
||||
Other cash flows, net
|
19
|
(15
|
)
|
|||||
Net increase in cash and cash equivalents
|
$
|
2,498
|
$
|
3,101
|
UNAUDITED
|
||||||||
Quarter ended March 31,
|
||||||||
2015
|
2014
|
|||||||
Net revenue, non-directly delivered programs (1)
|
$
|
94
|
$
|
116
|
||||
Gross revenue, directly delivered programs (2)
|
176
|
273
|
||||||
Total revenue
|
270
|
389
|
||||||
Cost of sales, directly delivered programs (2)
|
127
|
209
|
||||||
Gross margin (3)
|
143
|
180
|
||||||
Operating expenses:
|
||||||||
Selling and marketing
|
4,530
|
6,672
|
||||||
General and administration
|
2,317
|
2,921
|
||||||
Restructuring costs
|
-
|
108
|
||||||
Total operating expenses
|
6,847
|
9,701
|
||||||
Operating loss
|
(6,704
|
)
|
(9,521
|
)
|
||||
Other income (expense):
|
||||||||
Interest and dividend income
|
129
|
131
|
||||||
Foreign currency and other income (expense)
|
(37
|
)
|
3
|
|||||
Total other income (expense)
|
92
|
134
|
||||||
Loss before income tax benefit
|
(6,612
|
)
|
(9,387
|
)
|
||||
Income tax benefit
|
-
|
1,556
|
||||||
Loss from continuing operations
|
(6,612
|
)
|
(7,831
|
)
|
||||
Discontinued operations:
|
||||||||
Income from discontinued segment
|
-
|
336
|
||||||
Income tax provision
|
-
|
(56
|
)
|
|||||
Net income from discontinued operations
|
-
|
280
|
||||||
Net Loss
|
$
|
(6,612
|
)
|
$
|
(7,551
|
)
|
||
Weighted average shares outstanding – basic and diluted
|
16,955
|
16,755
|
||||||
Loss from continuing operations per share — basic and diluted
|
$
|
(0.39
|
)
|
$
|
(0.47
|
)
|
||
Income from discontinued segment per share — basic and diluted
|
$
|
-
|
$
|
0.02
|
||||
Total net loss per share - basic and diluted
|
$
|
(0.39
|
)
|
$
|
(0.45
|
)
|
(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 March 31,
|
||||||||||||
2015
|
2014
|
% Change
|
||||||||||
Gross revenue
|
$
|
214
|
$
|
287
|
-25
|
%
|
||||||
Cost of sales
|
120
|
171
|
-30
|
%
|
||||||||
Net revenue
|
$
|
94
|
$
|
116
|
-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. |
UNAUDITED
|
AUDITED
|
|||||||||||
March 31,
|
December 31,
|
|||||||||||
2015
|
2014
|
2014
|
||||||||||
Assets
|
||||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
$
|
4,500
|
$
|
12,574
|
$
|
2,002
|
||||||
Restricted cash
|
400
|
-
|
400
|
|||||||||
Available-for-sale securities
|
74,058
|
51,834
|
59,502
|
|||||||||
Foreign currency exchange contracts
|
-
|
20
|
-
|
|||||||||
Prepaid program cost and expenses
|
6,607
|
14,661
|
1,335
|
|||||||||
Accounts receivable
|
53
|
1,312
|
666
|
|||||||||
Deferred tax assets
|
-
|
2,382
|
-
|
|||||||||
Total current assets
|
85,618
|
82,783
|
63,905
|
|||||||||
Property and equipment, net
|
1,690
|
17,925
|
2,429
|
|||||||||
Available-for-sale securities
|
-
|
723
|
-
|
|||||||||
Foreign currency exchange contracts
|
-
|
15
|
-
|
|||||||||
Intangibles
|
-
|
3,502
|
-
|
|||||||||
Goodwill
|
70
|
9,781
|
70
|
|||||||||
Other long-term assets
|
81
|
84
|
81
|
|||||||||
Total assets
|
$
|
87,459
|
$
|
114,813
|
$
|
66,485
|
||||||
Liabilities and Stockholders’ Equity
|
||||||||||||
Current liabilities:
|
||||||||||||
Accounts payable and accrued expenses
|
$
|
3,117
|
$
|
3,339
|
$
|
2,794
|
||||||
Participants’ deposits
|
50,290
|
59,877
|
23,161
|
|||||||||
Foreign currency exchange contracts
|
2,137
|
134
|
1,345
|
|||||||||
Deferred tax liabilities
|
18
|
-
|
18
|
|||||||||
Other liabilities
|
6
|
130
|
1
|
|||||||||
Total current liabilities
|
55,568
|
63,480
|
27,319
|
|||||||||
Participants’ deposits
|
11
|
712
|
-
|
|||||||||
Deferred tax liabilities
|
6
|
1,835
|
6
|
|||||||||
Total liabilities
|
55,585
|
66,027
|
27,325
|
|||||||||
Stockholders’ equity
|
31,874
|
48,786
|
39,160
|
|||||||||
Total liabilities and stockholders’ equity
|
$
|
87,459
|
$
|
114,813
|
$
|
66,485
|
UNAUDITED
|
||||||||
March 31,
|
||||||||
2015
|
2014
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
(6,612
|
)
|
$
|
(7,551
|
)
|
||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
699
|
1,307
|
||||||
Stock-based compensation
|
289
|
202
|
||||||
Deferred income tax benefit
|
-
|
(1,484
|
)
|
|||||
Loss on foreign currency exchange contracts
|
(99
|
)
|
-
|
|||||
Loss on disposition and impairment of property and equipment
|
357
|
-
|
||||||
Excess tax shortfall from stock-based compensation
|
-
|
15
|
||||||
Change in assets and liabilities:
|
||||||||
Accounts receivable and other assets
|
613
|
478
|
||||||
Prepaid program costs and expenses
|
(5,272
|
)
|
(7,592
|
)
|
||||
Accounts payable, accrued expenses, and other current liabilities
|
327
|
(237
|
)
|
|||||
Participants’ deposits
|
27,140
|
34,227
|
||||||
Net cash provided by operating activities
|
17,442
|
19,365
|
||||||
Cash flows from investing activities:
|
||||||||
Purchase of available-for-sale securities
|
(14,627
|
)
|
(15,609
|
)
|
||||
Proceeds from sale of available-for-sale securities
|
-
|
120
|
||||||
Purchase of property and equipment
|
(336
|
)
|
(678
|
)
|
||||
Proceeds from sale of property and equipment
|
19
|
-
|
||||||
Purchase of intangibles
|
-
|
(82
|
)
|
|||||
Net cash used in investing activities
|
(14,944
|
)
|
(16,249
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Excess tax shortfall from stock-based compensation
|
-
|
(15
|
)
|
|||||
Net cash used in financing activities
|
-
|
(15
|
)
|
|||||
Net increase in cash and cash equivalents
|
2,498
|
3,101
|
||||||
Cash and cash equivalents, beginning of period
|
2,002
|
9,473
|
||||||
Cash and cash equivalents, end of period
|
$
|
4,500
|
$
|
12,574
|
UNAUDITED
|
||||||||||||||||
Net Loss
|
EPS
|
|||||||||||||||
Three months ended March 31,
|
Three months ended March 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Amount before special items
|
$
|
(6,612
|
)
|
$
|
(7,590
|
)
|
$
|
(0.39
|
)
|
$
|
(0.45
|
)
|
||||
Discontinued operations, net of tax
|
-
|
280
|
-
|
0.02
|
||||||||||||
Restructuring costs
|
-
|
(108
|
)
|
-
|
(0.01
|
)
|
||||||||||
Legal and other fees
|
-
|
(181
|
)
|
-
|
(0.01
|
)
|
||||||||||
Tax impact
|
-
|
48
|
-
|
-
|
||||||||||||
Amount per consolidated statement of operations
|
$
|
(6,612
|
)
|
$
|
(7,551
|
)
|
$
|
(0.39
|
)
|
$
|
(0.45
|
)
|
UNAUDITED
|
||||||||
March 31,
|
||||||||
2015
|
2014
|
|||||||
Cash, cash equivalents and short-term available-for-sale securities
|
$
|
78,558
|
$
|
64,408
|
||||
Prepaid program cost and expenses
|
6,607
|
14,661
|
||||||
Less: Participants’ deposits
|
(50,301
|
)
|
(60,589
|
)
|
||||
Less: Accounts payable / accruals / other liabilities
|
(3,123
|
)
|
(3,469
|
)
|
||||
Deployable cash
|
$
|
31,741
|
$
|
15,011
|