American Classic Voyages (AMCV) has reported a loss of $9.7 million or $0.70 per share on revenues of $189.8 million for the year ended Dec. 31, 1995, compared to a loss of $983,000 or $0.07 on revenues of $195.2 million for the previous year.
The 1995 results included a one-time charge of $5.9 million or $0.28 per share associated with the introduction of the American Queen, while the 1994 results included a one-time charge of $5.7 million.
AMCV attributed the decrease in revenue for 1995 to the removal from service of the Constitution in June, which was largely offset by the addition of the American Queen in the same month.
The almost $9 million differential in income year over-year resulted primarily from the addition of the American Queen, which required increases in sales and marketing, added interest expense to fund the construction costs, and a higher level of depreciation.
Philip C. Calian, AMCV's President and CEO said: "In 1995, to absorb the additional capacity, the company reduced pricing and yields on its other two steamboats by nine percent to maintain occupancies and continue sending new fans of Steamboatin' back to their communities with persuasive referrals."
Calian also said that at American Hawaii Cruises, "we reduced costs to operate cost effectively at a cash flow break even as a one-ship company, albeit temporarily, while building credibility and demand in the Hawaiian marketplace with the Independence.
"This gives us time to further strengthen our niche position in Hawaii, and to bring on additional capacity at attractive yields."
AMCV reported net income of $197,000 or $0.01 per share on revenues of $47.9 million for the quarter ended Dec. 31, 1995, compared to a loss of $1.5 million or $0.11 per share on revenues of $51.8 million for the same quarter the previous year.
At press time, AMCV (NASDAQ) closed at $9 1/8 compared to a 52-week high/low of $13 1/4 - $8 1/4.