Ambassadors International reported net income of $5.8 million, or $0.48 per share, due largely to a $7. 7 million income tax benefit, on revenues of $80.4 million for the second quarter ended June 30, 2007, compared to net income of $1. 7 million, or $0.15 per share, on revenues of $29. 7 million for the second quarter last year.
Due to acquisitions, the company operated nine ships during this year's second quarter, compared to four ships last year, driving ticket and onboard revenues up $25.4 million, from $21.8 million last year to $47.2 million this year.
Cruise operating expenses and related selling and administrative expenses were reported by Ambassador to be up $30.6 million year-over-year, including operating expenses of $32.9 million this year, compared to $12.2 million last year.
Ambassadors also recorded $5.4 million in costs associated with repairs, passenger relocation and crew expenses as a result of the grounding of the Empress of the North in May, which were partially offset by an estimated $4.1 million of insurance coverage. The company also received $600,000 as partial payment for outstanding insurance claims for the norovirus outbreak on the Mississippi Queen last October.
Ambassadors has also announced that the 1926- built, 176-passenger Delta Queen will be retired after the 2008 season. Legislation exempting her from Coast Guard fire safety regulations expires next November. The riverboat's superstructure is largely made out of wood.
Ambassadors operates the cruise brands Majestic America Line and Windstar Cruises.
Ambassadors' stock has been on a downward slide since earlier this year and traded at $23.68 at press time, down from this year's high of $47.50 in March and a 52-week high of$48.60 last December.