Ambassadors Reports $34.7 Million Third-Quarter Loss

Ambassadors International Inc. reported a third-quarter loss of $34.7 million as compared to net income of $9 million during the same period last year. For the three months ended Sept. 30, operating revenues totaled $17.4 million, a reduction of $41.3 million from $58.7 million reported last year.

Operating expenses were $12.6 million, a reduction of $26.8 million from $39.4 million during the 2008 period. The majority of the decrease in revenue and operating expenses is related to Majestic America Line, which has not operated during 2009, and the wind-down of the travel and events segment of the company.

The current quarter includes previously announced non-cash impairment charges of approximately $32 million for the quarter ended Sept. 30, of which $27.7 million relate to Windstar Cruises vessels and $4.3 million to Majestic America Line vessels. Operating income during the current quarter also includes a $1.2 million settlement under a business interruption insurance claim related to a prior period Majestic incident.

For the nine months ended Sept. 30, revenue was $48.8 million, down $86.6 million from $135.4 million for the comparable period last year. Operating expenses were $37.1 million, down $59.4 million.

Net loss was $68.2 million for the nine months ended Sept. 30, compared to a net loss of $6.4 million for the nine month period in 2008. Ambassadors International operates Windstar Cruises and is transitioning its headquarters from Newport Beach, Calif., to Seattle, Wash.