NEW YORK, Nov. 7, 2017 /PRNewswire/ --
Third Quarter 2017 Highlights:
- Tour revenues increased 20% to $84.6
million
- Net income attributable to Lindblad increased 25% to
$9.3 million
- Adjusted EBITDA increased 33% to $23.1
million
- Lindblad segment Net Yield increased 4% to $1,048 and Occupancy was 91%
Lindblad Expeditions Holdings, Inc. (NASDAQ: LIND; the "Company"
or "Lindblad"), a global provider of expedition cruises and
adventure travel experiences, today reported financial results for
the quarter ended September 30,
2017.
Sven-Olof Lindblad, President and
Chief Executive Officer, said "Lindblad's strategic investment to
expand our capacity to capitalize on the rapidly growing demand for
expedition travel has begun to deliver significant returns.
Bookings in 2017 are up over 30% versus a year ago and the Company
delivered strong third quarter financial growth fueled by the July
launch of our first new-build vessel, the National Geographic
Quest, while at the same time maintaining high occupancy levels
across our existing fleet. This is only the first step in
expanding our inventory and we are well under way on construction
of her sister ship, the National Geographic Venture, which
will be delivered in the fourth quarter of 2018. We also announced
this morning that we have signed a contract for a new,
state-of-the-art, polar ice class vessel. This contract includes
options for two additional ships and these vessels will enable us
to further immerse our guests in unique and authentic itineraries
and broaden our ability to build additional shareholder value in
the years to come."
THIRD QUARTER RESULTS
Tour Revenues
Third quarter tour revenues of $84.6
million increased $13.8
million, or 20%, as compared to the same period in 2016. The
increase was driven by $11.3 million
of additional contributions from the Lindblad segment and a
$2.5 million increase at Natural
Habitat. The third quarter of 2017 also included the cancellation
of four highly booked voyages on the National Geographic
Quest due to a delay in the launch of the vessel. Excluding the
impact of these voyage cancellations and additional insurance
proceeds received related to the National Geographic Orion,
the Company estimates that total tour revenues would have increased
24% over the prior year period to $87.4
million.
Lindblad segment tour revenues of $67.5
million increased 20% compared to the third quarter a year
ago primarily due to an $11.6 million
increase in ticket revenue, mostly related to the launch of the
National Geographic Quest in July of 2017. The growth in
ticket revenue also reflects a 4% increase in Net Yield to
$1,048, due to increased pricing and
changes in itineraries, as well as Occupancy of 91%, which was in
line with the same period a year ago. Available Guest Nights
increased by 16% primarily due to the addition of the National
Geographic Quest to the fleet and from the cancellation of a
voyage on the National Geographic Orion in the third quarter
of 2016. Excluding the impact of the National Geographic
Quest cancellations and additional insurance proceeds received
related to the National Geographic Orion, the Company
estimates that Lindblad segment tour revenue would have increased
25% over the prior year period to $70.3
million.
Natural Habitat revenues of $17.1
million increased 17% primarily due to higher ticket revenue
from additional guests in the current year.
Net Income
Net income attributable to Lindblad for the third quarter was
$9.3 million, $0.20 per diluted share, as compared with net
income attributable to Lindblad of $7.4
million, $0.16 per diluted
share, in the third quarter of 2016. The $1.9 million improvement was primarily
due to the higher operating results as well as lower
depreciation and amortization due mainly to the accelerated
depreciation associated with the retirement of the National
Geographic Endeavour a year ago. The third quarter of 2017 also
includes $1.7 million of additional
stock-based compensation expense primarily related to grants under
the 2016 CEO Share Allocation Plan, which provides our CEO the
ability to transfer shares from his existing holdings in the
Company to eligible employees, as well as $1.4 million in executive severance expense.
Adjusted EBITDA
Third quarter Adjusted EBITDA of $23.1
million increased $5.7
million, or 33%, as compared to the same period in
2016. The increase was due to $4.5
million of additional contributions from the Lindblad
segment and a $1.2 million increase
at Natural Habitat. Excluding the impact of the voyage
cancellations and insurance proceeds, the Company estimates that
Adjusted EBITDA would have increased 46% over the prior year period
to $25.3 million.
Lindblad segment Adjusted EBITDA of $21.3
million increased 27% compared to the third quarter a year
ago primarily due to the revenue growth partially offset by
increased costs related to the launch of the National Geographic
Quest. Excluding the impact of the voyage cancellations and
insurance proceeds, the Company estimates that Lindblad segment
Adjusted EBITDA would have increased 40% over the prior year period
to $23.5 million.
Natural Habitat Adjusted EBITDA of $1.8
million increased $1.2 million
compared to the third quarter a year ago primarily due to the
revenue growth partially offset by higher cost of tours from
additional guests and increased personnel costs.
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
September
30,
|
|
September
30,
|
(In
thousands)
|
2017
|
|
2016
|
|
Change
|
%
|
|
2017
|
|
2016
*
|
|
Change
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tour
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
$
67,451
|
|
$
56,175
|
|
$
11,276
|
20%
|
|
$
167,891
|
|
$
165,936
|
|
$
1,955
|
1%
|
Natural
Habitat
|
17,133
|
|
14,599
|
|
2,534
|
17%
|
|
35,392
|
|
20,282
|
|
15,110
|
74%
|
Total tour
revenues
|
$
84,584
|
|
$
70,774
|
|
$
13,810
|
20%
|
|
$
203,283
|
|
$
186,218
|
|
$
17,065
|
9%
|
Impact of
voyage cancellations
|
2,860
|
|
-
|
|
2,860
|
NA
|
|
12,478
|
|
-
|
|
12,478
|
NA
|
Total tour revenues
excluding voyage cancellations
|
$
87,444
|
|
$
70,774
|
|
$
16,670
|
24%
|
|
$
215,761
|
|
$
186,218
|
|
$
29,543
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
$
12,070
|
|
$
9,863
|
|
$
2,207
|
22%
|
|
$
12,386
|
|
$
19,038
|
|
$
(6,652)
|
(35%)
|
Natural
Habitat
|
1,479
|
|
306
|
|
1,173
|
383%
|
|
873
|
|
(488)
|
|
1,361
|
(279%)
|
Total operating
income
|
13,549
|
|
10,169
|
|
3,380
|
33%
|
|
13,259
|
|
18,550
|
|
(5,291)
|
(29%)
|
Impact of
voyage cancellations
|
1,981
|
|
-
|
|
1,981
|
NA
|
|
8,923
|
|
-
|
|
8,923
|
NA
|
Total operating
income excluding voyage cancellations
|
$
15,530
|
|
$
10,169
|
|
$
5,360
|
53%
|
|
$
22,182
|
|
$
18,550
|
|
$
3,632
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
$
21,276
|
|
$
16,741
|
|
$
4,535
|
27%
|
|
$
36,766
|
|
$
40,117
|
|
$
(3,351)
|
(8%)
|
Natural
Habitat
|
1,838
|
|
625
|
|
1,213
|
194%
|
|
1,896
|
|
42
|
|
1,854
|
NA
|
Total adjusted
EBITDA
|
23,114
|
|
17,366
|
|
5,748
|
33%
|
|
38,662
|
|
40,159
|
|
(1,497)
|
(4%)
|
Impact of
voyage cancellations
|
2,230
|
|
-
|
|
2,230
|
NA
|
|
9,172
|
|
-
|
|
9,172
|
NA
|
Total adjusted EBITDA
excluding voyage cancellations
|
$
25,344
|
|
$
17,366
|
|
$
7,978
|
46%
|
|
$
47,834
|
|
$
40,159
|
|
$
7,675
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 2016 results for
Natural Habitat represent activity from the acquisition date of May
2016 through September 30, 2016.
|
The impact of the cancelled voyages on tour revenues was
calculated as booked tour revenue at the time of cancellation less
insurance proceeds. The impact of the cancelled voyages on
operating income and Adjusted EBITDA was calculated as booked tour
revenue at the time of cancellation less insurance proceeds and
estimated operating costs.
Liquidity
The Company's cash and cash equivalents were $112.3 million as of September 30, 2017, as compared with $135.4 million as of December 31, 2016. The decrease primarily
reflects purchases of property and equipment of $44.0 million, mostly for the construction of the
two new coastal vessels, and $6.2
million used to repurchase stock and warrants, partially
offset by $29.4 million in net cash
provided by operating activities due in large part to advanced
bookings for future travel.
Free cash flow use was $14.6
million for the nine months ended September 30, 2017 as compared with a use of
$34.9 million in the same period of
2016. The improved results reflect the increased operating
performance, higher bookings for future travel and lower capital
expenditures for new vessels. Free cash flow is defined as net cash
provided by operating activities less purchases of property and
equipment.
LINDBLAD FLEET ACTIVITIES
The Company expanded its travel offerings in July 2017 with the launch of the National
Geographic Quest, which sailed in Alaska and British
Columbia during the summer before voyaging to Costa Rica and Panama for the winter season. The Company's
second new-build coastal vessel, the National Geographic
Venture, is currently expected to launch in the fourth quarter
of 2018.
Following the quarter, the Company announced that it had signed
a contract with Ulstein Verft to build a new polar ice class vessel
for delivery in January 2020, with
potential accelerated delivery to November
2019. This state-of-the-art vessel will join the National
Geographic Explorer and National Geographic Orion as the
third ice class ship in the Lindblad National Geographic fleet,
with the ability to voyage anywhere around the globe and
specializing in polar travel. She will be capable of
exploring deep into the Antarctic and Arctic waters, and will be
built with the Ulstein X-BOW® design allowing for greater comfort
and speed through rough waters. The contract with Ulstein
Verft also includes options to build two additional polar ice class
vessels, the first for delivery twelve months after the initial
vessel and the second for delivery twelve months thereafter.
STOCK AND WARRANT REPURCHASE PLAN
The Company has a $35.0 million
stock and warrant repurchase plan in place which authorizes the
Company to purchase from time to time the Company's outstanding
stock and warrants through open market repurchases and/or in
privately negotiated transactions based on market and business
conditions, applicable legal requirements and other factors. There
were no purchases during the third quarter and as of November 6, 2017, the Company had repurchased 5.4
million warrants and 855,776 shares under the plan for a total of
$22.2 million and had $12.8 million remaining under the plan. As of
November 3, 2017, there were 45.4
million common shares and 10.7 million warrants outstanding.
FINANCIAL OUTLOOK
The Company's current expectations for the full year 2017 are as
follows:
- Tour revenues of $266 - $270
million
- Adjusted EBITDA of $42 - $44
million
This outlook includes the estimated $3.6
million revenue impact and $3.0
million Adjusted EBITDA impact associated with the
cancellation of four voyages during the third quarter due to the
delayed launch of the National Geographic Quest. The current
outlook also includes the estimated $8.9
million revenue impact and estimated $6.2 million Adjusted EBITDA impact associated
with the first quarter cancellation of four voyages on the
National Geographic Orion and two voyages on the National
Geographic Sea Lion for necessary repairs. As of October 31, 2017, the Lindblad segment had 99% of
full year 2017 projected guest ticket revenues on the books versus
101% of full year 2016 revenue at the same time last year. Overall,
bookings thus far in 2017 have increased over 30% compared with the
same period a year ago. The Company continues to anticipate it will
achieve its long-range revenue and Adjusted EBITDA targets.
NON-GAAP FINANCIAL MEASURES
The Company uses a variety of operational and financial metrics,
including non-GAAP financial measures such as Adjusted EBITDA,
Occupancy, Net Yields and Net Cruise Costs, to enable it to analyze
its performance and financial condition. The Company 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 and tourism
industry to evaluate performance. The Company believes these
non-GAAP measures provide expanded insight to assess 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. The definitions of non-GAAP financial measures along with a
reconciliation of non-GAAP financial information to GAAP are
included in the supplemental financial schedules beginning on page
10.
Conference Call Information
The Company has scheduled a conference call at 8:30 a.m. Eastern Time on November 7, 2017 to discuss the earnings of the
Company. The conference call can be accessed by dialing (844)
378-6487 (United States), (855)
669-9657 (Canada) or (412)
542-4182 (outside the U.S.). A replay of the call will be available
at the Company's investor relations website,
http://www.investors.expeditions.com.
About Lindblad Expeditions Holdings, Inc.
Lindblad Expeditions Holdings, Inc. is an expedition travel
company that focuses on ship-based voyages through its Lindblad
Expeditions brand and on land-based travel through its subsidiary,
Natural Habitat Adventures, an adventure travel and ecotourism
company with a focus on responsible nature travel.
Lindblad Expeditions 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.
Natural Habitat partners with the World Wildlife Fund to offer
and promote conservation and sustainable travel that directly
protects nature. Natural Habitat's adventures include polar bear
tours in Churchill, Canada, Alaskan grizzly bear adventures and
African safaris.
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 the Company's 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) changes adversely affecting the
business in which the Company is engaged; (ii) management of the
Company's growth and its ability to execute on its planned growth;
(iii) general economic conditions; (iv) the Company's business
strategy and plans; (v) unscheduled disruptions in our business due
to weather events, mechanical failures, or other events; (vi)
compliance with laws and regulations; (vii) compliance with the
financial and/or operating covenants in the Company's
Second amended and restated 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; (xi) the inability to meet revenue and Adjusted EBITDA
projections; and (xii) those risks described in the Company's
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 the Company's performance may be
found in its 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 HOLDINGS, INC. AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(In thousands,
except share data)
|
|
|
|
|
|
|
As
of
|
|
|
September 30,
2017
|
|
December 31,
2016
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
112,316
|
|
$
135,416
|
Restricted cash and
marketable securities
|
8,704
|
|
9,015
|
Inventories
|
1,783
|
|
1,665
|
Marine operating
supplies
|
4,539
|
|
4,142
|
Prepaid expenses and
other current assets
|
22,887
|
|
20,782
|
Total current
assets
|
150,229
|
|
171,020
|
|
|
|
|
Property and
equipment, net
|
219,498
|
|
186,236
|
Goodwill
|
22,105
|
|
22,105
|
Intangibles,
net
|
9,948
|
|
11,132
|
Other long-term
assets
|
10,831
|
|
13,090
|
Deferred tax
assets
|
7,916
|
|
4,118
|
Total
assets
|
$
420,527
|
|
$
407,701
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
Current
Liabilities:
|
|
|
|
Unearned passenger
revenues
|
$
99,740
|
|
$
91,501
|
Accounts payable and
accrued expenses
|
23,810
|
|
30,662
|
Long-term debt -
current
|
1,750
|
|
1,750
|
Total current
liabilities
|
125,300
|
|
123,913
|
|
|
|
|
Long-term debt, less
current portion
|
164,165
|
|
164,128
|
Other long-term
liabilities
|
703
|
|
681
|
Total
liabilities
|
290,168
|
|
288,722
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
REDEEMABLE
NONCONTROLLING INTEREST
|
5,319
|
|
5,170
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
Preferred stock,
$0.0001 par value, 1,000,000 shares authorized;
|
|
|
|
0 shares issued and
outstanding
|
-
|
|
-
|
Common stock, $0.0001
par value, 200,000,000 shares authorized;
|
|
|
|
45,155,621 and
45,659,762 issued and outstanding as of
|
|
|
|
September 30, 2017,
and December 31, 2016, respectively
|
5
|
|
5
|
Additional paid-in
capital
|
45,213
|
|
43,097
|
Retained
earnings
|
79,822
|
|
70,707
|
Total stockholders'
equity
|
125,040
|
|
113,809
|
Total liabilities,
redeemable noncontrolling interest and stockholders'
equity
|
$
420,527
|
|
$
407,701
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Income
|
(In thousands,
except share and per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Tour
revenues
|
$
84,584
|
|
$
70,774
|
|
$
203,283
|
|
$
186,218
|
|
|
|
|
|
|
|
|
Cost of
tours
|
38,480
|
|
32,446
|
|
99,780
|
|
87,111
|
Gross
profit
|
46,104
|
|
38,328
|
|
103,503
|
|
99,107
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
General and
administrative
|
16,526
|
|
12,915
|
|
46,710
|
|
36,740
|
Selling and
marketing
|
11,676
|
|
10,164
|
|
31,521
|
|
29,294
|
Depreciation and
amortization
|
4,354
|
|
5,080
|
|
12,012
|
|
14,523
|
Total
operating expenses
|
32,556
|
|
28,159
|
|
90,243
|
|
80,557
|
|
|
|
|
|
|
|
|
Operating
income
|
13,548
|
|
10,169
|
|
13,260
|
|
18,550
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Gain (loss) on
foreign currency
|
224
|
|
(5)
|
|
1,047
|
|
(291)
|
Other income
(expense)
|
59
|
|
(38)
|
|
(97)
|
|
(38)
|
Interest expense,
net
|
(2,802)
|
|
(2,476)
|
|
(7,192)
|
|
(7,914)
|
Total other
expense
|
(2,519)
|
|
(2,519)
|
|
(6,242)
|
|
(8,243)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
11,029
|
|
7,650
|
|
7,018
|
|
10,307
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
1,586
|
|
203
|
|
(473)
|
|
(3,113)
|
|
|
|
|
|
|
|
|
Net income
|
9,443
|
|
7,447
|
|
7,491
|
|
13,420
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to noncontrolling interest
|
165
|
|
29
|
|
149
|
|
(119)
|
|
|
|
|
|
|
|
|
Net income
attributable to Lindblad
|
$
9,278
|
|
$
7,418
|
|
$
7,342
|
|
$
13,539
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
$
9,278
|
|
$
7,418
|
|
$
7,342
|
|
$
13,539
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
Basic
|
44,457,656
|
|
45,776,443
|
|
44,528,878
|
|
45,639,608
|
Diluted
|
45,718,513
|
|
46,541,257
|
|
45,609,560
|
|
46,329,880
|
|
|
|
|
|
|
|
|
Net income per share
attributable to Lindblad
|
|
|
|
|
|
|
|
Basic
|
$
0.21
|
|
$
0.16
|
|
$
0.16
|
|
$
0.30
|
Diluted
|
$
0.20
|
|
$
0.16
|
|
$
0.16
|
|
$
0.29
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
For the Nine
Months
Ended
September 30,
|
|
2017
|
|
2016
|
Cash Flows From
Operating Activities
|
|
|
|
Net
income
|
$
7,491
|
|
$
13,420
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
12,012
|
|
14,523
|
Amortization of
National Geographic fee
|
2,180
|
|
2,180
|
Amortization of debt
discount, deferred financing and other, net
|
1,662
|
|
2,582
|
Stock-based
compensation
|
9,464
|
|
3,982
|
Deferred income
taxes
|
(2,017)
|
|
(3,709)
|
(Gain) loss on
currency translation
|
(1,047)
|
|
291
|
Changes in operating
assets and liabilities
|
|
|
|
Inventories and
marine operating supplies
|
(516)
|
|
1,505
|
Prepaid expenses and
other current assets
|
(1,087)
|
|
1,098
|
Unearned passenger
revenues
|
8,062
|
|
(8,620)
|
Other long-term
assets
|
192
|
|
(3,159)
|
Other long-term
liabilities
|
14
|
|
22
|
Accounts payable and
accrued expenses
|
(6,964)
|
|
(8,430)
|
Net cash provided by
operating activities
|
29,446
|
|
15,685
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
Acquisition of
Natural Habitat, Inc., net of $4,904 cash acquired
|
-
|
|
(9,946)
|
Purchases of property
and equipment
|
(44,089)
|
|
(50,598)
|
Redemption of
restricted cash and marketable securities
|
311
|
|
(1,907)
|
Net cash used in
investing activities
|
(43,778)
|
|
(62,451)
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
Payment of deferred
financing costs
|
(312)
|
|
(1,565)
|
Repayments of
long-term debt
|
(1,312)
|
|
(1,312)
|
Repurchase
of employee shares as part of cashless exercise of options or
vesting of
restricted shares for tax purposes
|
(1,182)
|
|
(2,695)
|
Repurchase of
warrants and common shares
|
(6,166)
|
|
(5,420)
|
Net cash used in
financing activities
|
(8,972)
|
|
(10,992)
|
Effect of exchange
rate changes on cash
|
204
|
|
(128)
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
(23,100)
|
|
(57,886)
|
|
|
|
|
Cash and cash
equivalents as of beginning of period
|
135,416
|
|
206,903
|
|
|
|
|
Cash and cash
equivalents as of end of period
|
$
112,316
|
|
$
149,017
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
Cash paid during the
period for:
|
|
|
|
Interest
|
$
7,841
|
|
$
7,427
|
Income
taxes
|
$
965
|
|
$
992
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
Additional paid-in
capital exercise proceeds of option shares
|
$
168
|
|
$
1,123
|
Additional paid-in
capital exchange proceeds used for option shares
|
(168)
|
|
(1,123)
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Supplemental
Financial Schedules
|
(In thousands,
except guest metrics)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income to Adjusted EBITDA
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
(In
thousands)
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016*
|
Net income
|
$
9,443
|
|
$
7,447
|
|
$
7,491
|
|
$
13,420
|
Income tax expense
(benefit)
|
1,586
|
|
203
|
|
(473)
|
|
(3,113)
|
Interest expense,
net
|
2,802
|
|
2,476
|
|
7,192
|
|
7,914
|
Depreciation and
amortization
|
4,354
|
|
5,080
|
|
12,012
|
|
14,523
|
Gain (loss) on
foreign currency
|
(224)
|
|
5
|
|
(1,047)
|
|
291
|
Other (income)
expense, net
|
(59)
|
|
38
|
|
97
|
|
38
|
Stock-based
compensation
|
3,057
|
|
1,359
|
|
9,464
|
|
3,982
|
National Geographic
fee amortization
|
727
|
|
727
|
|
2,180
|
|
2,180
|
Reorganization
costs
|
29
|
|
-
|
|
346
|
|
-
|
Acquisition-related
expenses
|
-
|
|
31
|
|
-
|
|
924
|
One-time severance
costs
|
1,400
|
|
-
|
|
1,400
|
|
-
|
Adjusted EBITDA -
Consolidated
|
23,114
|
|
17,366
|
|
38,662
|
|
40,159
|
Impact of voyage
cancellations
|
2,230
|
|
-
|
|
9,172
|
|
-
|
Adjusted EBITDA -
Consolidated excluding impact of
voyage cancellations
|
$
25,344
|
|
$
17,366
|
|
$
47,834
|
|
$
40,159
|
|
|
|
|
|
|
|
|
* 2016 results for
Natural Habitat represent activity from the acquisition date of May
2016 through September 30, 2016
|
|
Reconciliation of
Operating Income to Adjusted EBITDA
|
|
|
|
|
|
|
Lindblad
Segment
|
|
|
|
|
|
|
|
(In
thousands)
|
For the Three
Months
Ended
September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Operating
income
|
$
12,070
|
|
$
9,863
|
|
$
12,387
|
|
$
19,038
|
Depreciation and
amortization
|
3,994
|
|
4,761
|
|
10,989
|
|
13,993
|
Stock-based
compensation
|
3,057
|
|
1,359
|
|
9,464
|
|
3,982
|
National Geographic
fee amortization
|
727
|
|
727
|
|
2,180
|
|
2,180
|
Reorganization
costs
|
29
|
|
-
|
|
346
|
|
-
|
Acquisition-related
expenses
|
-
|
|
31
|
|
-
|
|
924
|
One-time severance
costs
|
1,400
|
|
-
|
|
1,400
|
|
-
|
Adjusted EBITDA -
Lindblad segment
|
21,276
|
|
16,741
|
|
36,766
|
|
40,117
|
Impact of voyage
cancellations
|
2,230
|
|
-
|
|
9,172
|
|
-
|
Adjusted EBITDA -
Lindblad segment excluding impact
of voyage cancellations
|
$
23,506
|
|
$
16,741
|
|
$
45,938
|
|
$
40,117
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income to Adjusted EBITDA
|
|
|
|
|
|
|
Natural Habitat
Segment
|
|
|
|
|
|
|
|
(In
thousands)
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
*
|
Operating income
(loss)
|
$
1,478
|
|
$
306
|
|
$
873
|
|
$
(488)
|
Depreciation and
amortization
|
360
|
|
319
|
|
1,023
|
|
530
|
Adjusted EBITDA -
Natural Habitat segment
|
$
1,838
|
|
$
625
|
|
$
1,896
|
|
$
42
|
|
|
|
|
|
|
|
|
* 2016 results for
Natural Habitat represent activity from the acquisition date of May
2016 through September 30, 2016
|
Reconciliation of
Free Cash Flow to Net Cash Provided by Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
For the Nine
Months
Ended September 30,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
|
|
$
29,446
|
|
$
15,685
|
Less: purchases of
property and equipment
|
|
|
|
|
(44,089)
|
|
(50,598)
|
Free Cash
Flow
|
|
|
|
|
$
(14,643)
|
|
$
(34,913)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guest Metrics -
Lindblad Segment
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Available Guest
Nights
|
56,398
|
|
48,595
|
|
142,291
|
|
141,665
|
Guest Nights
Sold
|
51,122
|
|
44,139
|
|
124,951
|
|
129,633
|
Occupancy
|
90.6%
|
|
90.8%
|
|
87.8%
|
|
91.5%
|
Maximum
Guests
|
7,518
|
|
6,177
|
|
17,727
|
|
17,118
|
Number of
Guests
|
6,846
|
|
5,632
|
|
15,758
|
|
15,742
|
Voyages
|
97
|
|
84
|
|
244
|
|
231
|
|
|
|
|
|
|
Calculation of
Gross Yield and Net Yield - Lindblad Segment
|
|
|
|
|
|
|
(In thousands, except
for Available Guest Nights, Gross and
Net Yield)
|
For the Three
Months
Ended
September 30,
|
|
For the Nine
Months
Ended September 30,
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Guest ticket
revenues
|
$
61,715
|
|
$
50,089
|
|
$
147,504
|
|
$
146,613
|
Other tour
revenues
|
5,736
|
|
6,086
|
|
20,387
|
|
19,323
|
Tour
Revenues
|
67,451
|
|
56,175
|
|
167,891
|
|
165,936
|
Less: Orion Insurance
Proceeds
|
(248)
|
|
-
|
|
(2,148)
|
|
-
|
Adjusted Tour
Revenues
|
67,203
|
|
56,175
|
|
165,743
|
|
165,936
|
Less:
Commissions
|
(4,559)
|
|
(3,957)
|
|
(12,321)
|
|
(11,725)
|
Less: Other tour
expenses
|
(3,532)
|
|
(3,211)
|
|
(10,622)
|
|
(11,757)
|
Net
Revenue
|
$
59,112
|
|
$
49,007
|
|
$
142,800
|
|
$
142,454
|
Available Guest
Nights
|
56,398
|
|
48,595
|
|
142,291
|
|
141,665
|
Gross
Yield
|
$
1,192
|
|
$
1,156
|
|
$
1,165
|
|
$
1,171
|
Net
Yield
|
1,048
|
|
1,008
|
|
1,004
|
|
1,006
|
|
|
|
|
|
|
|
|
Calculation of Net
Cruise Cost Metrics - Lindblad Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except for
Available Guest Nights,Gross and
Net Cruise Cost)
|
For the Three
Months
Ended
September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cost of
tours
|
$
27,374
|
|
$
22,239
|
|
$
76,915
|
|
$
72,632
|
Plus: Merger-related
expenses
|
-
|
|
-
|
|
-
|
|
-
|
Plus: Selling and
marketing
|
10,358
|
|
8,848
|
|
28,629
|
|
27,511
|
Plus: General and
administrative
|
13,656
|
|
10,464
|
|
38,972
|
|
32,762
|
Gross Cruise
Cost
|
51,388
|
|
41,551
|
|
144,516
|
|
132,905
|
Less: Commission
expense
|
(4,559)
|
|
(3,957)
|
|
(12,321)
|
|
(11,725)
|
Less: Other tour
expenses
|
(3,532)
|
|
(3,211)
|
|
(10,622)
|
|
(11,757)
|
Net Cruise
Cost
|
43,297
|
|
34,383
|
|
121,573
|
|
109,423
|
Less: Fuel
expense
|
(1,894)
|
|
(1,645)
|
|
(4,858)
|
|
(5,307)
|
Net Cruise Cost
Excluding Fuel
|
41,403
|
|
32,738
|
|
116,715
|
|
104,116
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
Stock-based
compensation
|
(3,057)
|
|
(1,359)
|
|
(9,464)
|
|
(3,982)
|
National Geographic
fee amortization
|
(727)
|
|
(727)
|
|
(2,180)
|
|
(2,180)
|
Acquisition-related
expenses
|
-
|
|
(31)
|
|
-
|
|
(924)
|
One-time severance
costs
|
(1,400)
|
|
-
|
|
(1,400)
|
|
-
|
Adjusted Net
Cruise Cost Excluding Fuel
|
$
36,220
|
|
$
30,621
|
|
$
103,671
|
|
$
97,030
|
Adjusted Net
Cruise Cost
|
$
38,114
|
|
$
32,266
|
|
$
108,529
|
|
$
102,337
|
Available Guest
Nights
|
56,398
|
|
48,595
|
|
142,291
|
|
141,665
|
Gross Cruise Cost per
Available Guest Night
|
$
911
|
|
$
855
|
|
$
1,016
|
|
$
938
|
Net Cruise Cost per
Available Guest Night
|
768
|
|
708
|
|
854
|
|
772
|
Net Cruise Cost Excl.
Fuel per Available Guest Night
|
734
|
|
674
|
|
820
|
|
735
|
Adj. Net Cruise Cost
Excl. Fuel per Avail. Guest Night
|
642
|
|
630
|
|
729
|
|
685
|
Adjusted Net
Cruise Cost per Available Guest Night
|
676
|
|
664
|
|
763
|
|
722
|
Operational and Financial Metrics
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. Other supplemental adjustments include certain
non-operating items such as stock-based compensation, executive
severance costs, the National Geographic fee amortization,
merger-related expenses, and acquisition-related expenses. The
Company believes Adjusted EBITDA, when considered along with other
performance measures, is a useful measure as it reflects certain
operating drivers of the business, such as sales growth, operating
costs, selling and administrative expense, and other operating
income and expense. The Company believes Adjusted EBITDA helps
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 as it does not take into account certain requirements,
such as unearned passenger revenues, capital expenditures and
related depreciation, principal and interest payments, and tax
payments. The Company's use of Adjusted EBITDA may not be
comparable to other companies within the industry.
The following metrics apply to the Lindblad segment:
Adjusted Net Cruise Cost represents Net Cruise Cost
adjusted for Non-GAAP other supplemental adjustments which include
certain non-operating items such as stock-based compensation, the
National Geographic fee amortization, merger-related expenses, and
acquisition-related expenses.
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 merger-related expenses, selling and marketing expense, and
general and administrative expense.
Gross Yield represents tour revenues less insurance
proceeds 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 revenues
and other tour revenues.
Net Cruise Cost Excluding Fuel represents Net
Cruise Cost excluding fuel costs.
Net Revenue represents tour revenues less insurance
proceeds, commissions and direct costs of other tour revenues.
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.
Voyages represent the number of ship expeditions
completed during the period.
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content:http://www.prnewswire.com/news-releases/lindblad-expeditions-holdings-inc-reports-2017-third-quarter-financial-results-300550614.html
SOURCE Lindblad Expeditions Holdings, Inc.