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Ambassadors International, which
wants to focus on its Windstar cruise brand and sell other businesses, suffered
a net loss of $33.5 million in 1H09, compared to a loss of $15.4 million a year
earlier. It has also settled a dispute with its former ceo David Giersdorf.
The fresh figure includes non cash impairment charges of $16.7 million and $5.3
million loss from discontinued operations.
G&A expenses were $5.9 million for the six months ended June 30, 2009 compared
to $17.8 million for the six months ended June 30, 2008.
The decrease is attributed to $7.3
million lower G&A expenses incurred by Majestic America Line, $4.5 million lower
G&A expenses incurred by Travel and Events offset by $0.8 million credit in
stock based compensation expense due to non-vested restricted stock forfeitures
upon employee terminations.
Other expense was $2.9 million in 1H09, compared to $3.6 million for the same
period in 2008. “The decrease in other expense is attributed to $1.4 million in
lower interest expense due to the absence of certain Majestic America Line
vessel debt, offset lower income from investments and lower property insurance
recoveries. In 2008 we received $0.6 million in insurance recoveries for the
Queen of the West and the Empress of the North related to incidents in 2006 and
2008, respectively, whereas in 2009 we received $0.1 million in insurance
recoveries related to the 2008 Queen of the West incident,” the company said.
“On February 26, 2008, the Company and several of its subsidiaries were named in
a complaint by David Giersdorf, the former President of ACG in the Superior
Court of Washington for King County. Mr. Giersdorf has alleged he was improperly
terminated and has claimed damages which appear to be in excess of $70.0
million.”
“Mr. Giersdorf’s claims, based on verbal agreements, include the following,
among other things: (i) he left a tenured position with Holland America Line,
which well-positioned him to be the President of this prior employer earning a
multi-million dollar annual salary until retirement and (ii) his assistance in
acquiring Windstar Cruises and his work in the transition of its vendors and
employees entitles him to approximately $54.0 million;. Subsequent to the period
ended June 30, 2009, the Company and Mr. Giersdorf entered into an amicable
settlement of all of Mr. Giersdor’s claims,” Ambassadors said. |
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Worldwide Travel & Cruise Assoc., Inc.
150 S. University Dr. Ste E,
Plantation, FL 33324 - USA
Tel: +1 954 452 8800 Fax: +1 954
252 3945
EMail:
sales@cruiseco.com |
