NEW YORK, Aug. 7, 2015 /PRNewswire/ -- Lindblad
Expeditions Holdings, Inc. (NASDAQ: LIND; the "Company"), a global
provider of expedition cruises and adventure travel experiences,
today reported the financial results of Lindblad Expeditions, Inc.
("Lindblad") for the quarter ended June
30, 2015.
As previously announced, on July 8,
2015, Lindblad and Capitol Acquisition Corp. II ("Capitol")
completed their merger. As a result of the merger, Lindblad became
a direct wholly-owned subsidiary of Capitol. Immediately following
the merger, Capitol changed its name to Lindblad Expeditions
Holdings, Inc. and its common stock and warrants began trading on
the NASDAQ Stock Market under the new symbols LIND and LINDW,
respectively.
Lindblad's Second Quarter and First Half 2015 Financial
Highlights
- Lindblad generated tour revenue of $49.5
million in the second quarter of 2015 compared to
$50.8 million in the prior year
quarter, and $105.0 million of tour
revenue in the first half of 2015 compared to $102.2 million in the prior year period
- Net Yield for the second quarter was $963.10 compared to $1,020.45 in the prior year quarter, and
$984.12 in the first half of 2015
compared to $983.22 in the prior year
period
- Adjusted EBITDA for the second quarter was $12.0 million, a 9.1% increase from $11.0 million in the prior year quarter. Adjusted
EBITDA was $26.3 million for the
first half of 2015, a 4.8% increase from $25.1 million in the prior year period
Review of Lindblad's Second Quarter 2015 Results
"We are pleased with our results in the second quarter which
demonstrate consistent performance by our existing fleet. We
delivered a 9.1% increase in Adjusted EBITDA compared to the prior
year quarter, despite a slight decrease in guest ticket revenues
compared to the prior year quarter related to softer demand for
Africa and Indian Ocean based
voyages by the National Geographic Orion. During the
summer of 2016, the Orion will be redeployed to Europe as part of our already planned
integration of the Orion acquisition into our fleet," said
Sven-Olof Lindblad, President and
Chief Executive Officer of Lindblad Expeditions Holdings,
Inc.
Tour revenue in the quarter amounted to $49.5 million, compared to $50.8 million in the second quarter in 2014 which
represents a decrease by 2.6%. The change was primarily the result
of a decrease in guest ticket revenue from $44.0 million in the second quarter of 2014 to
$43.2 million in the same period in
2015, due to an increase in discounts related principally to cabin
revenue received for Africa and
Indian Ocean-based voyages on the Orion. Tour revenues
for the first half of 2015 increased 2.7% compared to the prior
year, to $105.0 million from
$102.2 million in the first half of
2014.
Net Yield in the quarter amounted to $963.10 compared to $1,020.45 in the second quarter of 2014, which
represents a decrease of 5.6%. Lindblad recorded 40,597 Guest
Nights Sold in the period, 4,818 guests, and an occupancy rate of
91.9%. Net Yield for the first half of 2015 amounted to
$984.12 compared to $983.22 in the prior year period.
Adjusted Net Cruise Cost per Available Guest Night amounted to
$690.45 in the second quarter of
2015, compared to $762.18 in the same
period in the prior year, which represents a decrease of 9.4%. The
decrease in Adjusted Net Cruise Cost was primarily driven by a
reduction in the cost of fuel in the second quarter of 2015
compared to 2014 and a decrease in dry dock costs and maintenance
costs for the owned fleet. Adjusted Net Cruise Cost per Available
Guest Night amounted to $696.04 for
the first half of 2015 compared with $703.47 for the same time period in 2014.
Adjusted EBITDA, a non-GAAP financial measure, increased 9.1% in
the second quarter of 2015 to $12.0
million compared to $11.0
million in the same period in 2014. Adjusted EBITDA
increased 4.8% in the first half of 2015 to $26.3 million compared to $25.1 million in the first half of 2014. A
reconciliation between Adjusted EBITDA and GAAP net income is
included in the accompanying financial data.
Full Year 2015
The Company remains confident it will achieve the 2015 financial
projections set forth in the investor presentation filed with the
Securities and Exchange Commission ("SEC") on April 1, 2015 in connection with the merger with
Capitol. Revenue is projected to be $204
million and Adjusted EBITDA is projected to be $45 million for the full year of 2015.
Furthermore, the Company anticipates that it will enter into
contracts to build two new coastal vessels in the third quarter of
2015 with expected deliveries on target for the second quarter of
2017 and 2018. "These new vessels, which will be
100-passenger U.S. flagged ships, will allow us to capitalize on
the strong demand for our expeditions with routes similar to
existing ones where demand is in excess of our capacity," said
Sven-Olof Lindblad. "We are
also reviewing a variety of acquisition opportunities that we
believe would be accretive to our planned expansion. Given
our strong capital position and the fragmented nature of our
industry, we are well positioned to act as a platform to facilitate
consolidation."
In addition, Ian Rogers, the
Company's Chief Financial and Operating Officer commented:
"Although it is too early to provide a detailed picture for 2016,
bookings remain strong with 43% of ticket revenue for the 2016
financial year on the books, as at June 30,
2015, compared with 40% in 2014 for the 2015 financial
year."
Debt Financing and Liquidity
On June 22, 2015, Lindblad
completed the syndication of its new $175.0
million senior secured term loan. The term loan was
increased to $175.0 million from its
original size of $150.0 million at
the time of the initial funding of the loan on May 8, 2015. The interest rate on the loan
was also decreased during syndication by 100 basis points to LIBOR
(subject to a minimum of 1.00%) plus 4.50%. The upsized credit
facility provides greater flexibility to the combined company to,
among other things, make acquisitions and repurchase stock.
As of June 30, 2015, Lindblad's
cash balance was $101 million.
Upon completion of the merger with Capitol and the completion of
the loan syndication, the combined company had approximately
$220 million of cash and restricted
cash.
New Independent Board Member
On August 4, 2015, the Company
announced that it had appointed Bernard W.
Aronson to serve as an independent director. Mr. Aronson is
currently Founding Partner of ACON Investments L.L.C., a middle
market private equity group. He also serves as the U.S. Special
Envoy to the Colombian Peace Process, appointed by President Obama
in February 2015. Mr. Aronson
previously served as a director of Royal Caribbean Cruises Ltd.
from 1993 until 2015, and also serves or has served during the past
five years as a director of Kate Spade Inc., Hyatt Hotels
Corporation, Chroma Oil and Gas, LP, Sequitur Energy, ACON
Franchise Holdings, Mariner Energy and Northern Tier Energy.
He serves on several Non-Profit Boards including The
Nature Conservancy Maryland/DC chapter, The Amazon Conservation
Team, the National Democratic Institute for International Affairs
and is a member of the Council on Foreign Relations.
"We are thrilled to have Bernie join our board of outstanding
individuals. He brings an unparalleled mix of board
experience with some of the biggest success stories in the marine
and broader hospitality industries as well as political
relationships and experience in geographies that are important for
us," said Mark D. Ein, Chairman of
Lindblad Expeditions Holdings, Inc.
Conference Call Scheduled
The Company has scheduled a conference call at 10:00 a.m. Eastern Time on August 7, 2015 to discuss the earnings of
Lindblad. The conference call can be accessed by dialing
(888) 317-6016 (United States) or
(412) 317-6016 (outside the U.S.). A replay of the call will
be available at the Company's investor relations website,
investors.expeditions.com.
About Lindblad Expeditions Holdings, Inc.
Lindblad Expeditions Holdings, Inc. is an expedition travel
company that works in partnership with National Geographic to
inspire people to explore and care about the planet. The
organizations work in tandem to produce innovative marine
expedition programs and to promote conservation and sustainable
tourism around the world. The partnership's educationally oriented
voyages allow guests to interact with and learn from leading
scientists, naturalists and researchers while discovering stunning
natural environments, above and below the sea, through
state-of-the-art exploration tools.
FORWARD LOOKING STATEMENTS
Certain matters discussed in this press release are
"forward-looking statements" intended to qualify for the safe
harbor from liability established by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
include our financial projections and may also generally be
identified as such because the context of such statements will
include words such as "anticipate," "believe," "could," "estimate,"
"expect," "intend," "may," "plan," "potential," "predict,"
"project," "should," "will," "would" or words of similar import.
Similarly, statements that describe the Company's financial
guidance or future plans, objectives or goals are also
forward-looking statements. Such forward-looking statements are
subject to certain risks and uncertainties that could cause results
to differ materially from those expected, including, but not
limited to, the following: (i) the anticipated results of the
merger of Capitol with Lindblad.; (ii) changes adversely affecting
the business in which we are engaged; (iii) management of our
growth and our ability to execute on our planned growth; (iv)
general economic conditions; (v) our business strategy and plans;
(vi) compliance with applicable laws and regulations; (vii)
compliance with the financial and/or operating covenants in our
amended credit agreement; (viii) adverse publicity regarding the
cruise industry in general; (ix) loss of business due to
competition; (x) the result of future financing efforts; and (xi)
those risks described in our filings with the SEC. Stockholders,
potential investors and other readers are urged to consider these
factors carefully in evaluating the forward-looking statements and
are cautioned not to place undue reliance on such forward-looking
statements. The forward-looking statements made herein are made
only as of the date of this press release and the Company
undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events
or otherwise. More detailed information about factors that may
affect our performance may be found in our filings with the SEC,
which are available at http://www.sec.gov or at
http://www.expeditions.com in the Investor Relations section of the
Company's website.
LINDBLAD
EXPEDITIONS, INC. AND SUBSIDIARIES
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
As
of
|
|
|
|
June 30,
2015
|
|
|
December 31,
2014
|
|
|
|
(unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
53,473,021
|
|
|
$
|
39,678,720
|
|
Restricted cash and
marketable securities
|
|
|
47,478,278
|
|
|
|
8,334,632
|
|
Inventories
|
|
|
1,921,917
|
|
|
|
1,700,226
|
|
Marine operating
supplies
|
|
|
5,145,250
|
|
|
|
5,078,552
|
|
Prepaid expenses and
other current assets
|
|
|
10,994,135
|
|
|
|
11,320,698
|
|
Total current
assets
|
|
|
119,012,601
|
|
|
|
66,112,828
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
119,175,217
|
|
|
|
121,873,440
|
|
Due from
shareholder
|
|
|
-
|
|
|
|
1,500,926
|
|
Deferred financing
costs, net
|
|
|
-
|
|
|
|
2,019,503
|
|
Operating
rights
|
|
|
6,528,949
|
|
|
|
6,528,949
|
|
Deferred tax
assets
|
|
|
253,829
|
|
|
|
101,860
|
|
Investment in
CFMF
|
|
|
-
|
|
|
|
47,787,835
|
|
Total
assets
|
|
$
|
244,970,596
|
|
|
$
|
245,925,341
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Unearned passenger
revenues
|
|
$
|
79,042,259
|
|
|
$
|
73,195,195
|
|
Accounts payable and
accrued expenses
|
|
|
18,070,214
|
|
|
|
20,028,315
|
|
Long-term debt -
current
|
|
|
1,500,000
|
|
|
|
4,934,030
|
|
Obligations to
repurchase shares of Class A common stock
|
|
|
4,965,792
|
|
|
|
4,965,792
|
|
Due to
CFMF
|
|
|
-
|
|
|
|
22,733,000
|
|
Total current
liabilities
|
|
|
103,578,265
|
|
|
|
125,856,332
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
138,271,507
|
|
|
|
51,755,608
|
|
Other long term
liabilities
|
|
|
418,070
|
|
|
|
447,145
|
|
Deferred income taxes
- long term
|
|
|
408,226
|
|
|
|
299,035
|
|
Total
liabilities
|
|
|
242,676,068
|
|
|
|
178,358,120
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Common stock, Class
A, no par value, 450,000 shares authorized;
90,000 shares issued and outstanding.
|
|
|
-
|
|
|
|
-
|
|
Common stock, Class
B, no par value, 50,000 shares authorized;
0 issued and outstanding.
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
(59,574,152)
|
|
|
|
21,466,308
|
|
Retained
earnings
|
|
|
61,868,680
|
|
|
|
46,100,913
|
|
Total shareholders'
equity
|
|
|
2,294,528
|
|
|
|
67,567,221
|
|
Total liabilities and
shareholders' equity
|
|
$
|
244,970,596
|
|
|
$
|
245,925,341
|
|
The following table
includes assets to be used to settle liabilities of the
consolidated variable interest entities ("VIEs"). These assets and
liabilities are included in the condensed consolidated balance
sheet above. See Note 2 for additional information on the Company's
VIEs.
|
|
|
|
|
|
As
of
|
|
|
|
June 30,
2015
|
|
|
December 31,
2014
|
|
|
|
(unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,000
|
|
|
$
|
2,000
|
|
Property and
equipment
|
|
|
1,562,701
|
|
|
|
1,755,446
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
|
633,254
|
|
|
|
55,456
|
|
Long-term
debt
|
|
|
-
|
|
|
|
2,170,000
|
|
LINDBLAD
EXPEDITIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Income Statements
(unaudited)
|
|
|
|
|
|
For the Three
Months Ended June 30,
|
|
|
For the Six Months
Ended June 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tour
revenues
|
|
$
|
49,531,025
|
|
|
$
|
50,790,991
|
|
|
$
|
104,951,551
|
|
|
$
|
102,165,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
tours
|
|
|
21,485,767
|
|
|
|
24,100,955
|
|
|
|
45,886,988
|
|
|
|
46,077,828
|
|
Gross
profit
|
|
|
28,045,258
|
|
|
|
26,690,036
|
|
|
|
59,064,563
|
|
|
|
56,087,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
14,556,935
|
|
|
|
7,973,652
|
|
|
|
25,682,431
|
|
|
|
15,242,723
|
|
Selling and
marketing
|
|
|
8,189,162
|
|
|
|
7,730,227
|
|
|
|
17,351,646
|
|
|
|
15,846,423
|
|
Depreciation and
amortization
|
|
|
2,895,026
|
|
|
|
2,873,736
|
|
|
|
5,646,825
|
|
|
|
5,747,794
|
|
Total operating
expenses
|
|
|
25,641,123
|
|
|
|
18,577,615
|
|
|
|
48,680,902
|
|
|
|
36,836,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
2,404,135
|
|
|
|
8,112,421
|
|
|
|
10,383,661
|
|
|
|
19,250,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value
of obligation to repurchase shares of Class A common
stock
|
|
|
-
|
|
|
|
857,565
|
|
|
|
-
|
|
|
|
(572,431)
|
|
Gain (loss) on
foreign currency
|
|
|
(78,329)
|
|
|
|
178,607
|
|
|
|
(194,367)
|
|
|
|
(219,286)
|
|
Gain on transfer of
assets
|
|
|
7,525,926
|
|
|
|
-
|
|
|
|
7,525,926
|
|
|
|
-
|
|
Other income
(expense), net
|
|
|
5,000,000
|
|
|
|
-
|
|
|
|
5,000,000
|
|
|
|
-
|
|
(Loss) on investment
in CFMF
|
|
|
(235,000)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Interest expense,
net
|
|
|
(3,888,204)
|
|
|
|
(1,337,238)
|
|
|
|
(5,077,627)
|
|
|
|
(2,657,499)
|
|
Total other income
(expense)
|
|
|
8,324,393
|
|
|
|
(301,066)
|
|
|
|
7,253,932
|
|
|
|
(3,449,216)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
10,728,528
|
|
|
|
7,811,355
|
|
|
|
17,637,593
|
|
|
|
15,801,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
1,893,259
|
|
|
|
2,646,957
|
|
|
|
1,869,831
|
|
|
|
2,242,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
8,835,269
|
|
|
$
|
5,164,398
|
|
|
$
|
15,767,762
|
|
|
$
|
13,559,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Common
Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to Class A Common Stockholders
|
|
$
|
8,835,269
|
|
|
$
|
4,906,163
|
|
|
$
|
15,767,762
|
|
|
$
|
12,881,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
154,817
|
|
|
|
244,287
|
|
|
|
199,769
|
|
|
|
244,287
|
|
Diluted
|
|
|
159,596
|
|
|
|
244,287
|
|
|
|
203,057
|
|
|
|
244,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
57.07
|
|
|
$
|
20.08
|
|
|
$
|
78.93
|
|
|
$
|
52.73
|
|
Diluted
|
|
$
|
55.36
|
|
|
$
|
20.08
|
|
|
$
|
77.65
|
|
|
$
|
52.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Common
Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to Class B Common Stockholders
|
|
$
|
-
|
|
|
$
|
258,235
|
|
|
$
|
-
|
|
|
$
|
678,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
-
|
|
|
|
12,858
|
|
|
|
-
|
|
|
|
12,858
|
|
Diluted
|
|
|
-
|
|
|
|
12,858
|
|
|
|
-
|
|
|
|
12,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
-
|
|
|
$
|
20.08
|
|
|
$
|
-
|
|
|
$
|
52.73
|
|
Diluted
|
|
$
|
-
|
|
|
$
|
20.08
|
|
|
$
|
-
|
|
|
$
|
52.73
|
|
LINDBLAD
EXPEDITIONS, INC. AND SUBSIDIARIES
Condensed
Consolidated Statements of Cash Flows
(unaudited)
|
|
|
|
|
|
For the Six Months
Ended June 30,
|
|
|
|
2015
|
|
|
2014
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
|
Net income
|
|
$
|
15,767,762
|
|
|
$
|
13,559,204
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
5,646,825
|
|
|
|
5,747,794
|
|
Amortization of debt
discount and deferred financing costs
|
|
|
2,208,948
|
|
|
|
543,303
|
|
Stock-based
compensation
|
|
|
2,427,447
|
|
|
|
-
|
|
Deferred income
taxes
|
|
|
(42,778)
|
|
|
|
277,895
|
|
(Gain) loss on
currency translation
|
|
|
(194,367)
|
|
|
|
(219,286)
|
|
Gain on transfer of
assets
|
|
|
(7,502,668)
|
|
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Inventories and
Marine operating supplies
|
|
|
(251,188)
|
|
|
|
262,949
|
|
Prepaid expenses and
other current assets
|
|
|
316,966
|
|
|
|
(433,860)
|
|
Unearned passenger
revenues
|
|
|
6,021,897
|
|
|
|
(496,242)
|
|
Other long term
liabilities
|
|
|
(29,075)
|
|
|
|
110,120
|
|
Accounts payable and
accrued expenses
|
|
|
(1,168,060)
|
|
|
|
(417,785)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
23,201,709
|
|
|
|
18,934,092
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
|
|
|
Purchase of
investment in CFMF
|
|
|
(68,087,953)
|
|
|
|
-
|
|
Purchase of property
and equipment, net
|
|
|
(2,567,268)
|
|
|
|
(2,336,841)
|
|
Advance from (to)
shareholder
|
|
|
1,500,926
|
|
|
|
(47,163)
|
|
Purchase of
restricted cash and marketable securities
|
|
|
(39,143,646)
|
|
|
|
(7,923,356)
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(108,297,941)
|
|
|
|
(10,307,360)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
|
|
Proceeds from
long-term debt
|
|
|
150,000,000
|
|
|
|
-
|
|
Deferred financing
costs
|
|
|
(10,532,175)
|
|
|
|
-
|
|
Repayments of
long-term debt
|
|
|
(41,003,232)
|
|
|
|
(2,167,434)
|
|
Repurchase of stock
from Class A shareholders
|
|
|
-
|
|
|
|
572,430
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
|
98,464,593
|
|
|
|
(1,595,004)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
|
425,940
|
|
|
|
(230,956)
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
|
13,794,301
|
|
|
|
6,800,772
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of year
|
|
|
39,678,720
|
|
|
|
44,353,563
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of year
|
|
$
|
53,473,021
|
|
|
$
|
51,154,335
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid during the
year for
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
2,087,329
|
|
|
$
|
2,129,629
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
$
|
298,226
|
|
|
$
|
247,645
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
|
Investment in CFMF
liquidation of Junior debt asset, warrant
|
|
$
|
84,903,567
|
|
|
|
-
|
|
CFMF liquidation of
Junior debt long term debt, additional paid in capital
|
|
|
(84,903,567)
|
|
|
|
-
|
|
LINDBLAD
EXPEDITIONS, INC. AND SUBSIDIARIES
Non-GAAP
Information
(unaudited)
|
|
Reconciliation of
Net Income to EBITDA
|
And Adjusted
EBITDA
|
|
|
|
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Net income
|
|
$
|
8,835,269
|
|
|
$
|
5,164,398
|
|
|
$
|
15,767,762
|
|
|
$
|
13,559,204
|
|
Income tax
expense
|
|
|
1,893,259
|
|
|
|
2,646,957
|
|
|
|
1,869,831
|
|
|
|
2,242,492
|
|
Interest expense,
net
|
|
|
3,888,204
|
|
|
|
1,337,238
|
|
|
|
5,077,627
|
|
|
|
2,657,499
|
|
Depreciation and
amortization expense
|
|
|
2,895,026
|
|
|
|
2,873,736
|
|
|
|
5,646,825
|
|
|
|
5,747,794
|
|
EBITDA
|
|
|
17,511,758
|
|
|
|
12,022,329
|
|
|
|
28,362,045
|
|
|
|
24,206,989
|
|
Change in fair value
of obligation to repurchase shares of Class A common
stock
|
|
|
-
|
|
|
|
(857,565)
|
|
|
|
-
|
|
|
|
572,431
|
|
Gain (loss) on
foreign currency translation
|
|
|
78,329
|
|
|
|
(178,607)
|
|
|
|
194,367
|
|
|
|
219,286
|
|
Stock based
compensation
|
|
|
1,213,722
|
|
|
|
-
|
|
|
|
2,427,447
|
|
|
|
-
|
|
Gain on transfer of
assets
|
|
|
(7,525,926)
|
|
|
|
-
|
|
|
|
(7,525,926)
|
|
|
|
-
|
|
Other non-cash
income
|
|
|
(4,765,000)
|
|
|
|
-
|
|
|
|
(5,000,000)
|
|
|
|
-
|
|
Non-recurring merger
related expenses
|
|
|
5,536,354
|
|
|
|
-
|
|
|
|
7,804,602
|
|
|
|
-
|
|
Non-recurring
acquisition related expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
112,000
|
|
Adjusted
EBITDA
|
|
$
|
12,049,237
|
|
|
$
|
10,986,157
|
|
|
$
|
26,262,535
|
|
|
$
|
25,110,706
|
|
Guest
Metrics
|
|
|
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Available Guest
Nights
|
|
|
44,193
|
|
|
|
42,538
|
|
|
|
91,164
|
|
|
|
89,760
|
|
Guest Nights
Sold
|
|
|
40,597
|
|
|
|
40,751
|
|
|
|
83,807
|
|
|
|
85,402
|
|
Occupancy
|
|
|
91.9
|
%
|
|
|
95.8
|
%
|
|
|
91.9
|
%
|
|
|
95.1
|
%
|
Maximum
Guests
|
|
|
5,171
|
|
|
|
5,014
|
|
|
|
10,610
|
|
|
|
10,268
|
|
Number of
Guests
|
|
|
4,818
|
|
|
|
4,829
|
|
|
|
9,806
|
|
|
|
9,804
|
|
Calculation of
Gross Yield and Net Yield
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Guest ticket
revenue
|
|
$
|
43,153,749
|
|
|
$
|
43,970,745
|
|
|
$
|
90,953,547
|
|
|
$
|
89,504,670
|
|
Other
revenue
|
|
|
6,377,276
|
|
|
|
6,820,246
|
|
|
|
13,998,004
|
|
|
|
12,661,010
|
|
Tour
Revenue
|
|
|
49,531,025
|
|
|
|
50,790,991
|
|
|
|
104,951,551
|
|
|
|
102,165,680
|
|
Less:
Commissions
|
|
|
(3,436,535)
|
|
|
|
(3,379,574)
|
|
|
|
(7,123,099)
|
|
|
|
(6,692,010)
|
|
Less: Other
expense
|
|
|
(3,532,318)
|
|
|
|
(4,003,552)
|
|
|
|
(8,112,295)
|
|
|
|
(7,219,797)
|
|
Net
Revenue
|
|
$
|
42,562,172
|
|
|
$
|
43,407,865
|
|
|
$
|
89,716,157
|
|
|
$
|
88,253,873
|
|
Available Guest
Nights
|
|
|
44,193
|
|
|
|
42,538
|
|
|
|
91,164
|
|
|
|
89,760
|
|
Gross
Yield
|
|
$
|
1,120.79
|
|
|
$
|
1,194.01
|
|
|
$
|
1,151.24
|
|
|
$
|
1,138.21
|
|
Net Yield
|
|
$
|
963.10
|
|
|
$
|
1,020.45
|
|
|
$
|
984.12
|
|
|
$
|
983.22
|
|
Calculation of Net
Cruise Cost Metrics
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
|
Six Months Ended June
30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Cost of
tours
|
|
$
|
21,485,767
|
|
|
$
|
24,100,955
|
|
|
$
|
45,886,988
|
|
|
$
|
46,077,828
|
|
Plus: Selling and
marketing
|
|
|
8,189,162
|
|
|
|
7,730,227
|
|
|
|
17,351,646
|
|
|
|
15,846,423
|
|
Plus: General and
administrative
|
|
|
14,556,935
|
|
|
|
7,973,652
|
|
|
|
25,682,431
|
|
|
|
15,242,723
|
|
Gross Cruise
Cost
|
|
$
|
44,231,864
|
|
|
$
|
39,804,834
|
|
|
$
|
88,921,065
|
|
|
$
|
77,166,974
|
|
Less: Commission
expense
|
|
|
(3,436,535)
|
|
|
|
(3,379,574)
|
|
|
|
(7,123,099)
|
|
|
|
(6,692,010)
|
|
Less: Other
expenses
|
|
|
(3,532,318)
|
|
|
|
(4,003,552)
|
|
|
|
(8,112,295)
|
|
|
|
(7,219,797)
|
|
Net Cruise
Cost
|
|
$
|
37,263,011
|
|
|
$
|
32,421,708
|
|
|
$
|
73,685,671
|
|
|
$
|
63,255,167
|
|
Less: Fuel
expense
|
|
|
(1,677,789)
|
|
|
|
(2,740,215)
|
|
|
|
(4,724,586)
|
|
|
|
(6,361,522)
|
|
Net Cruise Cost
Excluding Fuel
|
|
$
|
35,585,222
|
|
|
$
|
29,681,493
|
|
|
$
|
68,961,085
|
|
|
$
|
56,893,645
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based
compensation
|
|
|
(1,213,722)
|
|
|
|
-
|
|
|
|
(2,427,447)
|
|
|
|
-
|
|
Non-recurring merger
related expenses
|
|
|
(5,536,354)
|
|
|
|
-
|
|
|
|
(7,804,602)
|
|
|
|
-
|
|
Non-recurring
acquisition related expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(112,000)
|
|
Adjusted Net
Cruise Cost Excluding Fuel
|
|
$
|
28,835,146
|
|
|
$
|
29,681,493
|
|
|
$
|
58,729,036
|
|
|
$
|
56,781,645
|
|
Available Guest
Nights
|
|
|
44,193
|
|
|
|
42,538
|
|
|
|
91,164
|
|
|
|
89,760
|
|
Gross Cruise Cost per
Available Guest Night
|
|
$
|
1,000.88
|
|
|
$
|
935.75
|
|
|
$
|
975.40
|
|
|
$
|
859.70
|
|
Net Cruise Cost per
Available Guest Night
|
|
$
|
843.19
|
|
|
$
|
762.18
|
|
|
$
|
808.28
|
|
|
$
|
704.71
|
|
Net Cruise Cost
Excluding Fuel per Available Guest Night
|
|
$
|
805.22
|
|
|
$
|
697.76
|
|
|
$
|
756.45
|
|
|
$
|
633.84
|
|
Adjusted Net Cruise
Cost per Available Guest Night
|
|
$
|
690.45
|
|
|
$
|
762.18
|
|
|
$
|
696.04
|
|
|
$
|
703.47
|
|
Adjusted Net Cruise
Cost Excl. Fuel per Available Guest Night
|
|
$
|
652.48
|
|
|
$
|
697.76
|
|
|
$
|
644.21
|
|
|
$
|
632.59
|
|
Key Operational and Financial Metrics
Lindblad uses a variety of operational and financial metrics,
which are defined below, to evaluate its performance and financial
condition. Lindblad uses certain non-GAAP financial measures, such
as EBITDA, Adjusted EBITDA, Net Yields and Net Cruise Costs, to
enable it to analyze its performance and financial condition.
Lindblad utilizes these financial measures to manage its business
on a day-to-day basis and believes that they are the most relevant
measures of performance. Some of these measures are commonly used
in the cruise industry to measure performance. Lindblad believes
these non-GAAP measures provide expanded insight to measure revenue
and cost performance, in addition to the standard GAAP-based
financial measures. There are no specific rules or regulations for
determining non-GAAP measures, and as such, they may not be
comparable to measures used by other companies within the industry.
The presentation of non-GAAP financial information should not be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with
GAAP.
Adjusted EBITDA is net income (loss) excluding
depreciation and amortization, net interest expense, other income
(expense), and income tax benefit (expense), and other supplemental
adjustments. The Company believes Adjusted EBITDA can provide a
more complete understanding of the underlying operating results and
trends and an enhanced overall understanding of the Company's
financial performance and prospects for the future. While Adjusted
EBITDA is not a recognized measure under GAAP, management uses this
financial measure to evaluate and forecast business performance.
Adjusted EBITDA is not intended to be a measure of liquidity or
cash flows from operations or a measure comparable to net income.
The Company's use of Adjusted EBITDA may not be comparable to other
companies within the industry.
Available Guest Nights is a measurement of capacity and
represents double occupancy per cabin (except single occupancy for
a single capacity cabin) multiplied by the number of cruise days
for the period. The Company also records the number of guest nights
available on its limited land programs in this definition.
Gross Cruise Cost represents the sum of cost of tours
plus selling and marketing expense and general and administrative
expense.
Gross Yield represents tour revenue divided by Available
Guest Nights.
Guest Nights Sold represents the number of guests carried
for the period multiplied by the number of nights sailed within the
period.
Maximum Guests is a measure of capacity and represents
the maximum number of guests in a period and is based on double
occupancy per cabin (except single occupancy for a single capacity
cabin).
Net Cruise Cost represents Gross Cruise Cost excluding
commissions and certain other direct costs of guest ticket revenue
and other revenue.
Net Cruise Cost Excluding Fuel represents Net
Cruise Cost excluding fuel costs.
Net Revenue represents tour revenue less commissions and
direct costs of other revenue.
Net Yield represents Net Revenue divided by Available
Guest Nights.
Number of Guests represents the number of guests that
travel with the Company in a period.
Occupancy is calculated by dividing Guest Nights Sold by
Available Guest Nights.
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SOURCE Lindblad Expeditions Holdings, Inc.