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More financial trouble for Windstar Cruises parent company


rogerc1944

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According to Travel Weekly, Windstars parent company is likely heading for delisting by NASDAQ. Here's the story:

 

Ambassadors likely headed for Nasdaq delisting

By: Michelle Baran

August 05, 2010

Ambassadors International, parent company of Windstar Cruises, told the Nasdaq Stock Market that it will likely not meet the requirement that stockholders have equity of at least $10 million, which likely will result in the company's delisting.

 

According to an Securities and Exchange Commission filing, Ambassadors told Nasdaq on Tuesday that it plans on reporting the deficiency in its second-quarter earnings statement on Aug. 9.

 

On May 11, Nasdaq informed Ambassadors of its failure to meet the minimum-bid price requirement of $1 for continued listing on the Nasdaq Global Market.

 

After participating in a Nasdaq hearings panel, the panel granted Ambassadors' request to remain listed as long as Ambassadors had a closing bid price of at least $1 for 10 consecutive trading days by Sept.10, 2010. The company has not yet met that requirement; Ambassadors has closed in the 50-cent range since mid-May.

 

The decision also required that Ambassadors comply with all the other requirements for

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These are tough times for many companies, Windstar especially. I'm a big fan of their product, and serval cruises planned in the future. My recommendation is to book your cruise with a major credit card, which protects you if Windstar is unable to deliver your cruise vacation. As for your air tickets it may be a good idea Not to use Non refundable fares.........now your 99% ready for just about anything. I was onboard the Windspirt recently during a greek isles cruise, and they delivered a nearly perfect (10) cruise experience for the prices they charge.....Including fresh squeezed orange juice every morning, Great food, and a first class crew. I'm going again 8/22 and the 2 weeks in December.

 

I suggest everyone who uses this board book a cruise this year, next year their fares are sure to go up......and they would still be worth it.

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The good news is the old Senior management team, which was just a bunch of worthless Wallstreet garbage is long gone. A new ream is in place. I am hoping they are energized to fill these amazing ships, and smart enough not to adversely change the cruise experience. Most importantly they need a great CFO to keep them listed on the stock exchange so they don't have image problems. Windstar needs businesses to charter their ships to make money.....so the companies public image is real important.

 

Good Luck to Windstar......looking forward to my 8/22 cruise

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This week my final payment is due for the November 17 14 night Trans Atlantic Wind Surf Lisbon - Barbados cruise. The Million Dollar question will Windstar be around in November or will they be pressured to downsize between now and then? Should I risk this or not with making final payment?

 

Things are not good if you can not meet monies owned to creditors. I went to Ambassador Internationals corporate website and read 2000 - 2010 financial statements. does not look good long haul in 2012 they have a major amount of due they must pay to creditors on loans and at this point with restructuring can not get rid of old assets of several river boats. No one back with the last big issues financially was interested in infusing cash as in purchasing them.The out look stated they looked okay through 2010 but was some what questionable after that point do to the huge amount that will be due in 2012 even with good sales volumes / profitability.

 

New management obviously was needed to address the financial challenges but are they to late?

 

Yes I have travel insurance with cancel for any reason added. You still could loose up to 30%. If I cancelled before final payment date I loose nothing. Well actually air I still would still have to file a claim on.

 

Any further thoughts on this?

 

Plan Monday to call a financial type professional to hear the implications of the new developments from the technical and legal sides.

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In last few years have been crazy, so I understand were your coming from. What I would recommend is make sure you pay with a major credit card that way you have no risk for the cruise fare. As for the air fare.....if you can pay a little extra and buy a refundable ticket you'll be ok.. As for the insurance if its the Cruises lines insurance it may be risky...read the fine print....if its an independent company ....read the find print and call the company. Lastly I'd call the CFO and ask him some direct questions in a friendly, concerned way. I'm going on a back to back in December and love the cruise experience Windstar offers, but I used my AMEX card so I'm not worried......worst case we spend 2 weeks in Barbados.

 

Let us know what you find out Monday........I hope they have a plan.......I really want this company to survive.

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The impression a travel agent friend who has a agent friend who had contact with a trade representative got from a meeting prior to the current news piece was Windstar is rebuilding, things are as usual but certain things were sort of skimmed over regarding finances and company stability. They saw the success for the future is based on filling cabins and getting new customers via some new itineraries and trying to upgrade service as needed and upgrading ships being they are old ships . Also they see the need to charter and do heavier incentive and group bookings as a bigger chunk of the market for them. All this takes capital which they are low on.

 

None of this means much if the ship is going down. You must do certain things to save your self and in the interest of the stock holders but at some point one runs out of capital and the banks are at your door and options become limited at best. This is the 3rd time of this since 06. If you look at trending it does not look to promising especially in todays global recession.

 

I do hope they survive and I can take my cruise in 3 months on Wind Surf but wondering about the reality of survival for Windstar sort and long turn.

 

Will report back after my calls Monday to financial people and a few others.

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True but Ambassador International the parent company of Windstar could not find a investor or buyer last round.

 

If you first read the newest article above then read the following from the 2010 First Quarter Financial Summery it does not look so good:

 

Longish but worth posting I hope. Copied from http://phx.corporate-ir.net/phoenix.zhtml?c=76367&p=irol-IRHome

 

Sent to me by a friend who is Senior VP of a major investment firm with degrees from Harvard and Brooking Institute were he also taught for 10 years.

 

Company Info

 

Investor Relations

 

 

Press Release

 

<< Back

 

Ambassadors International, Inc. Announces First Quarter 2010 Results

SEATTLE, May 12, 2010 /PRNewswire via COMTEX/ --Ambassadors International, Inc. (the "Company") (Nasdaq: AMIE) announced today its financial results for the first quarter ended March 31, 2010.

 

Key Highlights

 

Total revenue from continuing operations for the three months ended March 31, 2010 was $12.6 million, compared to $16.1 million for the three months ended March 31, 2009. The results were better than the Company's forecast and budget for first quarter 2010, even though first quarter revenue was lower than in 2009. In first quarter 2010, Windstar Cruises experienced a capacity decrease of 3.9%. Windstar operated 14 days less than in first quarter 2009 due to the scheduled Wind Spirit dry dock and experienced a decrease in charter and incentive revenue due to global economic conditions over the last 12 months.

 

Cruise operating expenses were $11.7 million for the three months ended March 31, 2010 compared to $13.2 million for the three months ended March 31, 2009. The decrease in cruise operating expenses is primarily due to the reduction in materials and services and efficiencies gained following the transition of the ship management from a third party management company to in-house personnel in September of 2009.

 

Net loss for the three months ended March 31, 2010 was $5.8 million compared to $11.4 million for the three months ended March 31, 2009.

 

2010 Outlook

 

"Windstar experienced a strong wave season this year, with wave season booking volume from January through March 2010 significantly ahead of last year," said Art Rodney, Interim Chief Executive Officer, Ambassadors International, Inc. "It will still be a challenging year. We are still feeling the effect of the decrease in charter and incentive business in 2010. However, we are experiencing positive improvement in per diems and load factors for the second half of the year."

 

2011 Outlook

 

"For 2011, Windstar's bookings for charter and incentive sailings have increased significantly in recent months when compared to the same timeframe a year ago," said Rodney. "Also, we are very pleased with early bookings we have received for our new itineraries featuring the Baltic and the Holy Land."

 

Ambassadors continues to execute on the plan announced in February 2009 to focus all capital and efforts on Windstar Cruises and the small ship luxury segment. Ambassadors has been successful in restructuring a significant amount of the Company's Convertible Notes in the fall 2009 Exchange Offer and obtaining a $15 million working capital credit facility to provide funding for operations over the next two years. In addition to reducing outstanding indebtedness and obtaining a credit facility, the Company has also been successful in restructuring the core business activities to allow the Company to dedicate liquidity resources to the operations and growth of Windstar Cruises.

 

Windstar Cruises continues to provide its loyal guests with the award-winning, yet casually elegant experience the line is known for. Windstar remains a strong, award-winning product and is currently implementing its next phase of its Degrees of Difference initiative featuring added amenities and enhancements to the fleet which will be completed in the summer of 2010.

 

Ambassadors International, Inc. will host a conference call to discuss the results of operations on Wednesday, May 12, 2010 at 1:15 p.m. Pacific Daylight Time. Interested parties may join the call by dialing (877) 842-7102, conference ID #: AMIE. The conference call may also by joined via the Internet at http://www.ambassadors.com. For conference replay access, parties may dial (800) 642-1687, conference ID #:75200967 and follow the prompts. Post-call replay will be available two days following the completion of our call.

 

About Ambassadors International, Inc.

 

Ambassadors International, Inc. is primarily a cruise company with headquarters in Seattle, Washington. The Company operates Windstar Cruises, a three-ship fleet of luxury yachts that explore the hidden harbors and secluded coves of the world's most sought-after destinations. Carrying just 148 to 312 guests, the luxurious ships of Windstar cruise to nearly 50 nations, calling at 100 ports throughout Europe, the Caribbean and the Americas. In this press release, any reference to "Company," "Ambassadors," "management," "we," "us" and "our" refers to Ambassadors International, Inc. and its management team.

 

Forward-Looking Statements

 

This press release contains forward-looking statements that are based on our current expectations and entail various risks and uncertainties that could cause our actual results to differ materially from those suggested in our forward-looking statements. We believe that such risks and uncertainties include, among others, our ability to refinance our debt or to obtain additional financing at reasonable rates; our ability to continue to operate as a going concern; our ability to effectively and efficiently operate our cruise business; customer cancellation rates; competitive conditions in the industry in which we operate; marketing expenses; extreme weather conditions; the impact of new laws and regulations affecting our business; negative incidents involving cruise ships, including those involving the health and safety of passengers; cruise ship maintenance problems; reduced consumer demand for vacations and cruise vacations; changes in fuel, food, payroll, insurance and security costs; changes in relationships with certain travel providers; changes in vacation industry capacity; and other economic factors and other considerations affecting the travel industry and other factors discussed more specifically in our annual, quarterly and current reports filed with the SEC on Forms 10-K, 10-Q and 8-K. We are providing this information as of the date of this release and do not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

 

Additional Information

 

For further information, please contact Tammy Smolkowski of Ambassadors International, Inc. at (206) 292-9606.

 

SOURCE Ambassadors International, Inc.

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I lessened the conference call in May ....it's on the internet. They are not in good shape, however.......their loss was almost cut in half and bookings are up in the 2nd half of 2010. They have a credit line to continue operations for at least a year. Most importantly they have a new management team.

 

Anything could happen to adversely change things, but their ship board operation are flawless and the pricing is lower then normal this year.....I expect pricing to go up as demand improves and the charter & incentive markets returns. In any case do as I suggested earlier and you can all but eliminate the financial risk of booking a cruise. Book using major credit card and not buy non refundable air tickets.

 

They have the best cruise product for the money in their class.

 

We Leave Monday for Europe and to sail aboard the 8/22 Windsurf. Will let you know if they are having any onboard issues.

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I chatted with several people this morning on the phone travel agent, financial manager, federal corporate tax judge. The input was short term as in my November Tran Atlantic crossing sounds okay to make final payment and Windstar should deliver being the ships are needed for the busy Caribbean winter season which is important for cash flow being it is a busy booking period the industry calls this time frame late December - mid April The Wave. The above professionals mentioned that if I had a trip I was booking for this coming 2011 spring or summer to hold off to see were Windstar is financially after first quarter of 2011 to play it safe. They also advised to take out travel insurance that has the cancel for any reason as well as use a credit card that covers default for purchases are made via the card which I have done and will do with the final payment. They prefaced this by saying Windstar has limited coverage for contingencies financially if they experience a major issue like accident or economy in general goes way worse, etc.

 

Smooth Sailings and Cruising to All.... hopefully all on Windstar :)

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