AMBASSADORS INTERNATIONAL INC - FORM 8-K - EX-99.1 - MONTHLY OPERATING REPORT - May 23, 2011

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8-K - CURRENT REPORT - AMBASSADORS INTERNATIONAL INCambassadors-8k_052311.htm
Exhibit 99.1
 
 
UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
 
  
 
In re:
  
Chapter 11
       
 
AMBASSADORS INTERNATIONAL, INC., et al.,1
  
Case No. 11-11002 (KG)
       
 
Debtors.
  
Jointly Administered
       
     

____________________________________________
   1The Debtors in these chapter 11 cases, along with each Debtor’s individual case number and the last four digits of each Debtor’s federal tax identification number, are: Ambassadors International, Inc. (Case No. 11-11002 (KG)), (8605); Ambassadors Cruise Group, LLC (Case No. 11-11003 (KG)), (2448); Ambassadors, LLC (Case No. 11-11004 (KG)), (0860); EN Boat LLC (Case No. 11-11006 (KG)), (8982); AQ Boat, LLC (Case No. 11-11009 (KG)), (5018); MQ Boat, LLC (Case No. 11-11008 (KG)), (5095); DQ Boat, LLC (Case No. 11-11010 (KG)), (5064); QW Boat Company LLC (Case No. 11-11005 (KG)), (0658); Contessa Boat, LLC (Case No. 11-11007 (KG)), (9452); CQ Boat, LLC (Case No. 11-11011 (KG)), (9511); American West Steamboat Company LLC (Case No. 11-11012 (KG)), (0656); and Ambassadors International Cruise Group (USA), LLC (Case No. 11-11013 (KG)), (7304).  The mailing address for each Debtor is 2101 4th Avenue, Suite 210, Seattle, WA  98121.
 
 
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days after end of month.
 
Submit copy of report to any official committee appointed in the case.
 
REQUIRED DOCUMENTS
Form No.
Document
Attached
Explanation
Attached
Affidavit/Supplement
Attached
Schedule of Cash Receipts and Disbursements
MOR-1
X
    
Bank Reconciliation (or copies of debtor’s bank reconciliations)
MOR-1a
  
X
  
Schedule of Professional Fees Paid
MOR-1b
X
    
Copies of bank statements
    
X
  
Cash disbursements journals
    
X
  
Statement of Operations
MOR-2
X
    
Balance Sheet
MOR-3
X
    
Status of Postpetition Taxes
MOR-4
  
X
  
Copies of IRS Form 6123 or payment receipt
    
X
  
Copies of tax returns filed during reporting period
    
X
  
Summary of Unpaid Postpetition Debts
MOR-4
X
    
Listing of aged accounts payable
MOR-4
X
    
Accounts Receivable Reconciliation and Aging
MOR-5
X
    
Debtor Questionnaire
MOR-5
X
    

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.
 
     
     
/s/ Mark Detillion                                                                     
 
May 20, 2011                                                  
Signature of Authorized Individual*
  
Date
     
     
___________________________________________  
Chief Financial Officer                                   
Mark Detillion
  
Title of Authorized Individual
 
______________________________________________ 
*     Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.
 
 
 
 

 
   
In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: April 2011

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS2
 
Amounts reported should be per the debtor’s books, not the bank statement.  The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed.  The amounts reported in the “CURRENT MONTH - ACTUAL” column must equal the sum of the four bank account columns.  The amounts reported in the “PROJECTED” columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM IR-1) .  Attach copies of the bank statements and the cash disbursements journal.  The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page.  A bank reconciliation must be attached for each account.  [See MOR-1 (CON’T)]
 
         
CURRENT MONTH (ACTUAL)
Ambassadors International, Inc.
Ambassadors International Cruise Group (USA)
American West Steamboat Company LLC
QW Boat Company LLC
  
EN Boat LLC
CQ Boat, LLC
  
CASH BEGINNING OF MONTH
10,489.86
850,321.47
5,179.48
0.00
0.00
0.00
             
RECEIPTS
            
CREDIT CARD PAYMENTS
  
1,538,568.99
        
CASH PAYMENTS
64,983.15
1,104,577.02
  
109,375.00
    
MAJESTIC INSURANCE
        
110,629.29
  
CASH REFUNDS
  
-14,664.89
        
DIP BORROWING
2,000,000.00
3,000,000.00
        
SALE OF ASSETS
            
             
TOTAL RECEIPTS
2,064,983.15
5,628,481.02
  
109,375.00
110,629.29
  
             
DISBURSEMENTS
            
WINDSTAR PAYROLL
  
213,573.09
        
CREW PAYROLL
  
882,235.13
        
FUEL
  
1,013,030.47
        
PORT
  
309,401.13
        
SECURED/RENTAL/LEASES
  
192,217.13
        
COMMISSIONS
  
228,658.34
        
INSURANCE
  
76,611.46
        
PAYMENTS TO OTHER VENDORS
  
1,409,519.18
        
INTERCOMPANY TRANSFERS
  
232,500.00
        
CAPITAL EXPENDITURES AND DRY-DOCK
            
PROFESSIONALS FEES3
142,964.85
36,162.75
        
DISCONTINUED OPERATIONS
    
4,672.90
    
12,846.14
ESTATE WIND-UP COSTS
            
COD VENDOR PAYMENTS
            
BANK FACILITY FEES
  
200,000.00
        
INTEREST PAYMENTS
120,271.23
          
TOTAL DISBURSEMENTS
347,983.24
4,793,908.68
4,672.90
0.00
0.00
12,846.14
             
NET CASH FLOW
347,983.24
          
(RECEIPTS LESS DISBURSEMENTS)
1,716,999.91
          
             
CASH - END OF MONTH
1,949,989.77
1,893,583.76
207,664.734
0.00
0.00
0.00
* COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE
 
[CONTINUED ON NEXT PAGE.]
 
_________________________________________
2   The following Debtors had no receipts or disbursements in April 2011: Ambassadors Cruise Group, LLC; Ambassadors, LLC; AQ Boat, LLC; MQ Boat, LLC; DQ Boat, LLC and Contessa Boat, LLC.
3    The figures in this column only include adequate protection payments and payments made under the Debtors’ postpetition credit facility, not payments to professionals retained by the Debtors.
4    This figure includes receipts of QW Boat Company LLC and EN Boat LLC, net of the disbursements by CQ Boat LLC, as such entities do not have bank accounts.
 
 
 
 
 
 
THE FOLLOWING SECTION MUST BE COMPLETED
 
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
Ambassadors International, Inc.
Ambassadors International Cruise Group (USA)
American West Steamboat Company LLC
QW Boat Company LLC
EN Boat LLC
CQ Boat, LLC
TOTAL DISBURSEMENTS
347,983.24
4,793,908.68
4,672.90
0.00
0.00
12,846.14
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS
$
$
$
$
$
$
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts)
$
$
$
$
$
$
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES
347,983.24
4,793,908.68
4,672.90
0.00
0.00
12,846.14
 
 
 
 
 

 

   
In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: April 2011

DEBTORS’ BANK RECONCILIATION CERTIFICATION
 
To the best of my knowledge and belief, the Debtors have reconciled all bank statements for the reporting period covered by this operating report.  The figures included in this report are the resulting book balances.
 

 
May 20, 2011                                       
/s/ Mark Detillion                                                 
Date
Signature of Responsible Party
Mark Detillion
   

 
 

 
 


In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: April 2011

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
 
This schedule is to include all retained professional payments from case inception to current month.
 

 
None.
 

 
 
 
 

 
In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: April 2011

STATEMENT OF OPERATIONS
 
(Income Statement)
 
The Statement of Operations is to be prepared on an accrual basis.  The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.
 

                         
   
Ambassadors International, Inc.
    
Ambassadors International Cruise Group (USA)
    
Majestic5
    
Consolidated
  
                         
Revenue
                        
Net Guest Revenue
     -       2,507,825       -       2,507,825  
Add On Revenue
     -       173,757       -       173,757  
On Board and Other Revenue
     -       822,969       14,975       837,944  
Net Revenue
     -       3,504,551       14,975       3,519,526  
                                 
Costs and Operating Expenses
                                
Ship Operating Expenses
                                
Compensation and Benefits
     -       917,082       -       917,082  
Purchased Passenger Services
     -       293,905       -       293,905  
Materials and Services
     -       2,400,302       14,476       2,414,777  
Repairs and Maintenance
     -       609,596       -       609,596  
Other Ship Operating Expenses
     -       128,513       -       128,513  
Commissions
     -       224,163       -       224,163  
Total Ship Operating Expenses
     -       4,573,560       14,476       4,588,036  
Selling and Marketing
     -       799,490       -       799,490  
General and Administrative
     644,632       216,993       5,028       866,653  
Depreciation and Amortization
     7,075       525,273       -       532,348  
Total Cost and Operating Expenses
     651,707       6,115,317       19,504       6,786,527  
Operating (Loss) Income
     (651,707 )     (2,610,765 )     (4,529 )     (3,267,001 )
                                 
Other Income (Expense)
                                
Interest and Dividend Income
     -       112       -       112  
Interest Expense
     (423,151 )     (128,053 )     -       (551,203 )
Other Income (Expense)
     -       -       68,398       68,398  
Other Income (Expense), Net
     -       (12,793 )     -       (12,793 )
Total Other Income (Expense)
     (423,151 )     (140,734 )     68,398       (495,486 )
(Loss) from Continuing Operations Before Taxes
     (1,074,858 )     (2,751,499 )     63,869       (3,762,487 )
(Loss) from Continuing Operations
     (1,074,858 )     (2,751,499 )     63,869       (3,762,487 )
Net Income (Loss)
     (1,074,858 )     (2,751,499 )     63,869       (3,762,487 )
                                 

_______________________________________________
5    This column includes EN Boat LLC, AQ Boat, LLC, MQ Boat, LLC, DQ Boat, LLC QW Boat Company LLC, Contessa Boat, LLC, CQ Boat, LLC and American West Steamboat Company LLC, most of which are non-operational.

 
 
 
 
 

In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: April 2011

BALANCE SHEET
 
The Balance Sheet is to be completed on an accrual basis only.  Pre-petition liabilities must be classified separately from postpetition obligations.
 
Period: April 2011
 
   
Ambassadors International, Inc.
    
Ambassadors International Cruise Group (USA)
    
Majestic6
    
Discontinued Operations
    
CONSOLIDATED
  
ASSETS
                              
Current Assets:
                              
Cash & Cash Equivalents
     1,949,581       2,158,565       207,665       -       4,315,810  
Restricted Cash
     70,000       5,982,331       -       -       6,052,331  
Accounts Receivable
     -       75,033       308,043       -       383,076  
Prepaid Exp & Other Current Assets
     282,935       4,884,038       12,783       -       5,179,755  
Inventory
     -       2,445,791       -       -       2,445,791  
Assets Held for Sale
     -       -       4,564,537       -       4,564,537  
Total Current Assets
     2,302,515       15,545,758       5,093,028       -       22,941,301  
Property & Equipment, Net
     108,549       51,794,110       -       -       51,902,659  
Trade Name
     -       1,000,000       -       -       1,000,000  
Other Long-Term Assets
     (0 )     2,042,235       -       -       2,042,235  
TOTAL ASSETS
     2,411,064       70,382,103       5,093,028       -       77,886,195  
                                         
LIABILITIES & STOCKHOLDERS’ EQUITY
                                        
Current Liabilities:
                                        
Accounts Payable
     107,427       3,854,319       581,446       -       4,543,192  
Accrued Expenses
     690,855       3,200,789       855,559       -       4,747,202  
Intercompany Payable
     (135,600,782 )     76,612,605       54,617,771       4,370,405       (0 )
Corporate Concentration Cash
     (3,814,304 )     (213,929 )     14,003,502       (9,975,270 )     -  
Passenger Deposits
     -       17,860,317       -       -       17,860,317  
Credit Facility Term Loan
     -       9,575,000       -       -       9,575,000  
Notes Payable – MARAD
     -       -       958,142       -       958,142  
Notes Payable
     52,074,180       -       -       -       52,074,180  
Liabilities Held for Sale
     -       -       44,669       336,039       380,708  
Credit Facility – D.I.P.
     5,000,000       -       -       -       5,000,000  
Total Current Liabilities
     (81,542,624 )     110,889,101       71,061,088       (5,268,825 )     95,138,740  
                                         
Passenger Deposits Long-Term
     -       524,322       -       -       524,322  
Total Liabilities
     (81,542,624 )     111,413,423       71,061,088       (5,268,825 )     95,663,061  
                                         
Stockholders’ Equity:
                                        
Common Stock
     33,218       -       -       -       33,218  
Additional Paid In Capital
     118,439,551       -       -       714,990       119,154,541  
Other Equity
     (27,629,755 )     12,064,000       9,532,024       6,033,713       (19 )
Retained Earnings (Accumulated Deficit)
     (2,142,547 )     (46,653,644 )     (76,267,080 )     (1,479,877 )     (126,543,148 )
Current Period Earnings (Losses)
     (4,746,779 )     (6,441,676 )     766,996       -       (10,421,459 )
Total Stockholders’ Equity
     83,953,688       (41,031,320 )     (65,968,060 )     5,268,825       (17,776,867 )
TOTAL LIAB. & STOCKHOLDERS’ EQUITY
     2,411,064       70,382,103       5,093,028       -       77,886,195  
                                         

________________________________________________
6   This column includes EN Boat LLC, AQ Boat, LLC, MQ Boat, LLC, DQ Boat, LLC QW Boat Company LLC, Contessa Boat, LLC, CQ Boat, LLC and American West Steamboat Company LLC, most of which are non-operational.
 
 
 
 
 
 

 
In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: April 2011

DEBTORS’ TAX CERTIFICATION
 
To the best of my knowledge and belief, Debtors have made all required tax payments on a timely basis, except for pre-petition liabilities not authorized for payment by the Bankruptcy Court.
 



May 20, 2011                                             
/s/ Mark Detillion                                                        
Date
Signature of Responsible Party
Mark Detillion
   


 
 
 

 

In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: April 2011

SUMMARY OF UNPAID POSTPETITION DEBTS7
 

 
CURRENT
 
Ambassadors International, Inc.
Ambassadors International Cruise Group (USA)
American West Steamboat Company LLC
Accounts Payable
13,785.50
2,046,381.00
  
Wages Payable
  
177,121.00
  
Taxes Payable
      
Rent/Leases-Building
      
Rent/Leases-Equipment
      
Secured Debt/Adequate Protection Payments
      
Professional Fees
      
Amounts Due to Insiders*
      
Other:  Operating Expenses
  
213,037.00
  
Other:  Moorage on Columbia Queen
    
14,000.00
Total Postpetition Debts
13,785.50
2,436,539
14,000.00

All postpetition debts are current.
 
__________________________________________
*    “Insider” is defined in 11 U.S.C. Section 101(31).
 
 
 
 
 
 
 
      
In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: April 2011

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
 
Accounts Receivable Reconciliation
AMOUNT
Total Accounts Receivable at the beginning of the reporting period
N/A
+ Amounts billed during the period
N/A
- Amounts collected during the period
N/A
Total Accounts Receivable at the end of the reporting period
N/A
 
N/A
Accounts Receivable Aging
  
0 - 30 days old
N/A
31 - 60 days old
N/A
61 - 90 days old
N/A
91+ days old
N/A
Total Accounts Receivable
N/A
Amount considered uncollectible (Bad Debt)
N/A
Accounts Receivable (Net)
N/A

DEBTOR QUESTIONNAIRE
 
Must be completed each month
Yes
No
1.Have any assets been sold or transferred outside the normal course of business this reporting period?  If yes, provide an explanation below.
  
X
2.Have any funds been disbursed from any account other than a debtor in possession account this reporting period?  If yes, provide an explanation below.
  
X
3.Have all postpetition tax returns been timely filed?  If no, provide an explanation below.
X
  
4.Are workers compensation, general liability and other necessary insurance coverages in effect?  If no, provide an explanation below.
X
  
5.Has any bank account been opened during the reporting period?  If yes, provide documentation identifying the opened account(s).  If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.
  
X

AMBASSADORS INTERNATIONAL INC Reports