NEW YORK, Feb. 28, 2018 /PRNewswire/ --
Full Year 2017 Highlights:
- Tour revenues increased 10% to $266.5
million
- Net loss available to common stockholders was $8.7 million, including a $12.7 million non-cash expense related to U.S.
tax law change
- Adjusted EBITDA increased 4% to $43.5
million
- Repurchased $6.2 million of stock
and warrants
- Lindblad segment Net Yield increased 1% to $985 and Occupancy was 87%
- Bookings in 2017 for future travel increased 26% over bookings
in 2016
- Expanded capacity with the launch of the National Geographic
Quest in July 2017
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 fourth quarter and year ended December
31, 2017.
Sven-Olof Lindblad, President and
Chief Executive Officer, said "Lindblad's financial growth during
2017 highlights the opportunity we have to deliver substantial
returns as we expand our capacity to take advantage of the growing
demand for high quality, authentic experiential travel.
The July launch of our first new-build vessel, the National
Geographic Quest, contributed considerably to the Company's
significant revenue and Adjusted EBITDA growth in the back half of
the year and we are poised to build on that momentum in the years
ahead. Bookings for 2018 travel are 24% above the same point
a year ago for 2017 and we are seeing broad based demand for both
returning and new itineraries. The upcoming year will also
see the next step in our fleet expansion with the anticipated
launch of the National Geographic Venture in December and we
just began cutting the steel last month for our state-of-the-art,
polar ice class vessel, which is expected to be delivered in early
2020. Overall we have contracted to expand our available
guest nights by over 50% from pre-expansion levels so we can
further capitalize on the rapidly growing demand for authentic
expedition travel."
FULL YEAR RESULTS
Tour Revenues
Full year tour revenues of $266.5
million increased $24.2
million, or 10%, as compared to 2016, primarily due to a
$15.2 million increase at Natural
Habitat, which was acquired in May of 2016, and a $9.0 million increase at the Lindblad segment,
despite the estimated $12.4 million
impact from voyage cancellations in 2017. These cancellations
included four expeditions on the National Geographic Orion
to repair the engine, two voyages on the National Geographic Sea
Lion to repair the air conditioning system and four voyages due
to the delayed launch of the National Geographic Quest.
Excluding the impact of these voyage cancellations in 2017, the
Company estimates that total Company tour revenue would have
increased 15% over the prior year to $278.9
million.
Lindblad segment revenues of $216.8
million increased $9.0
million, or 4%, compared to 2016, primarily from a
$7.3 million increase in ticket
revenue, due mostly to increased Available Guest Nights and
slightly higher Net Yield, and a $1.7
million increase in other revenue mainly from $2.3 million of insurance revenue related to the
National Geographic Orion voyage cancellations. Excluding
the impact of the voyage cancellations in 2017, the Company
estimates that Lindblad segment revenue would have increased 10%
over the prior year to $229.2
million.
For the full year, Available Guest Nights increased 3% primarily
due to the launch of the National Geographic Quest in
July 2017 and a full year of charter
expeditions to Cuba, partially
offset by the voyage cancellations on the National Geographic
Orion and National Geographic Sea Lion. Net Yield
increased 1% to $985 from increased
pricing and changes in itineraries. Occupancy decreased to
87% due to lower bookings for 2017 travel throughout the first half
of 2016 and due to the cancellation of the highly booked
voyages.
Natural Habitat revenues of $49.7
million increased $15.2
million, or 44%, compared to a year ago due primarily to a
full year of operating results in 2017 and higher ticket revenue
from additional guests.
Net Income
Net loss available to common stockholders of $8.7 million for 2017, $0.19 per diluted share, decreased $13.5 million as compared with net income
available to common stockholders of $4.9
million, $0.10 per diluted
share, in 2016. The decline versus a year ago reflects the
increased operating results, which were more than offset primarily
by a $12.7 million non-cash impact
from the enactment of the U.S. Tax Cuts and Jobs Act and
$5.2 million of additional
stock-based compensation expense due primarily 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.
Adjusted EBITDA
Full year 2017 Adjusted EBITDA of $43.5
million increased $1.8
million, or 4%, compared to 2016, due to $1.8 million of additional contributions from
Natural Habitat and a slight increase at the Lindblad segment
despite the impact of the voyage cancellations in the current
year. Excluding the impact of the voyage cancellations in
2017, the Company estimates that total Company Adjusted EBITDA
would have increased 26% over the prior year to $52.5 million.
Adjusted EBITDA at the Lindblad segment of $38.7 million increased slightly versus 2016 as
the increased tour revenues and a decline in drydock, employee and
fuel costs were mostly offset by operating costs for the
National Geographic Quest as well as higher charter costs,
primarily related to Cuba. Excluding the impact of the voyage
cancellations, the Company estimates that Lindblad segment Adjusted
EBITDA would have increased 24% over the prior year to $47.7 million.
Natural Habitat Adjusted EBITDA of $4.8
million increased $1.8
million, or 59%, compared to a year ago due primarily to a
full year of operating results in 2017. The current year also
included higher revenues from additional guests which was partially
offset by increased cost of tours from the additional guests as
well as higher personnel costs.
FOURTH QUARTER RESULTS
Tour Revenues
Fourth quarter tour revenues of $63.2
million increased $7.1
million, or 13%, as compared to the same period in 2016. The
increase was driven by $7.0 million
of additional contributions from the Lindblad segment and a
$0.1 million increase at Natural
Habitat.
Lindblad segment tour revenues of $48.9
million increased 17% compared to the fourth quarter a year
ago mainly due to a $6.4 million
increase in ticket revenue, primarily from a 10% increase in
Available Guest Nights mostly related to the launch of the
National Geographic Quest in July of 2017 and the addition
of a trans-Atlantic voyage on the National Geographic
Orion. The growth in ticket revenue also reflects a 6%
increase in Net Yield to $924 due to
increased pricing and changes in itineraries. Occupancy of
86% was in-line with a year ago despite the inclusion of the
trans-Atlantic voyage on the National Geographic Orion,
which had a lower occupancy than traditional expeditions as
anticipated.
Net Income
Net loss available to common stockholders for the fourth quarter
was $16.0 million, $0.36 per diluted share, as compared with a net
loss available to common stockholders of $8.7 million, $0.19
per diluted share, in the fourth quarter of 2016. The decline
versus a year ago reflects the increased operating results, which
were more than offset by a $12.7
million non-cash impact from the enactment of the U.S. Tax
Cuts and Jobs Act and $1.4 million of
higher depreciation and amortization primarily related to the
addition of the National Geographic Quest to the fleet in
July 2017. The fourth quarter of 2016 also included
$1.2 million of other expense
primarily related to the retirement of the National Geographic
Endeavour.
Adjusted EBITDA
Fourth quarter Adjusted EBITDA of $4.8
million increased $3.3
million, or 221%, as compared to the same period in 2016
primarily due to additional contributions from the Lindblad segment
partially offset by $0.1 million
decrease at Natural Habitat.
Lindblad segment Adjusted EBITDA of $1.9
million increased $3.4 million
compared to the fourth quarter a year ago as the increased Tour
Revenues and lower personnel costs were partially offset by higher
operating costs related to the addition of the National
Geographic Quest and higher commission expense related to the
revenue growth.
Natural Habitat Adjusted EBITDA of $2.9
million decreased slightly versus the fourth quarter a year
ago as the revenue growth was more than offset by increased
personnel and marketing costs to drive long-term growth
initiatives.
Segment Results
|
For the three
months ended December 31,
|
|
For the years
ended December 31,
|
(In
thousands)
|
2017
|
|
2016
|
|
Change
|
|
%
|
|
2017
|
|
2016
*
|
|
Change
|
|
%
|
Tour
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
$
48,924
|
|
$
41,900
|
|
$
7,024
|
|
17%
|
|
$ 216,815
|
|
$ 207,836
|
|
$
8,979
|
|
4%
|
Natural
Habitat
|
14,297
|
|
14,228
|
|
69
|
|
0%
|
|
49,689
|
|
34,510
|
|
15,179
|
|
44%
|
Total tour
revenues
|
63,221
|
|
56,128
|
|
7,093
|
|
13%
|
|
266,504
|
|
242,346
|
|
24,158
|
|
10%
|
Impact of
voyage
cancellations
|
(125)
|
|
-
|
|
(125)
|
|
NA
|
|
12,353
|
|
-
|
|
12,353
|
|
NA
|
Total tour
revenues
excluding voyage cancellations
|
$
63,096
|
|
$
56,128
|
|
$
6,968
|
|
12%
|
|
$ 278,857
|
|
$ 242,346
|
|
$36,511
|
|
15%
|
Operating (loss)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
$
(5,093)
|
|
$
(7,245)
|
|
$
2,152
|
|
(30%)
|
|
$
7,292
|
|
$
11,794
|
|
$ (4,502)
|
|
(38%)
|
Natural
Habitat
|
2,579
|
|
2,676
|
|
(97)
|
|
(4%)
|
|
3,452
|
|
2,187
|
|
1,265
|
|
58%
|
Total operating
(loss) income
|
(2,514)
|
|
(4,569)
|
|
2,055
|
|
(45%)
|
|
10,744
|
|
13,981
|
|
(3,237)
|
|
(23%)
|
Impact of voyage
cancellations
|
(125)
|
|
-
|
|
(125)
|
|
NA
|
|
8,798
|
|
-
|
|
8,798
|
|
NA
|
Total operating
(loss) income
excluding voyage cancellations
|
$
(2,639)
|
|
$
(4,569)
|
|
$
1,930
|
|
(42%)
|
|
$
19,542
|
|
$
13,981
|
|
$
5,561
|
|
40%
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
$
1,890
|
|
$
(1,493)
|
|
$
3,383
|
|
227%
|
|
$
38,655
|
|
$
38,624
|
|
$
31
|
|
0%
|
Natural
Habitat
|
2,938
|
|
2,997
|
|
(59)
|
|
(2%)
|
|
4,834
|
|
3,038
|
|
1,796
|
|
59%
|
Total adjusted
EBITDA
|
4,828
|
|
1,504
|
|
3,324
|
|
221%
|
|
43,489
|
|
41,662
|
|
1,827
|
|
4%
|
Impact of voyage
cancellations
|
(125)
|
|
-
|
|
(125)
|
|
NA
|
|
9,047
|
|
-
|
|
9,047
|
|
NA
|
Total adjusted
EBITDA
excluding voyage cancellations
|
$
4,703
|
|
$
1,504
|
|
$
3,199
|
|
213%
|
|
$
52,536
|
|
$
41,662
|
|
$10,874
|
|
26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The 2016 Natural
Habitat segment results represent activity from acquisition date of
May 2016 through
December 31, 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. The cancellation of the
December 28, 2016 voyage on the
National Geographic Orion was not material to the results
for the three and twelve months ended December 31, 2016.
Liquidity
The Company's cash and cash equivalents were $96.4 million as of December 31, 2017, as compared with $135.4 million as of December 31, 2016. The decrease primarily
reflects purchases of property and equipment of $80.5 million, primarily related to the three new
vessel builds, and $6.2 million used
to repurchase stock and warrants, partially offset by $52.9 million in net cash provided by operating
activities due in large part to advanced bookings for future
travel.
Free cash flow use was $27.6
million for the full year 2017 as compared with a use of
$44.5 million in 2016. The improved
results reflect higher bookings for future travel and increased
operating performance partially offset by higher capital
expenditures for new vessels. Free cash flow is defined as net cash
provided by operating activities less purchases of property and
equipment.
On January 8, 2018, the Company
entered into a senior secured credit agreement to make available,
at the Company's option, a loan in an aggregate principal amount
not to exceed $107.7 million for the
purpose of providing financing for up to 80% of the purchase price
of the Company's new expedition ice-class cruise vessel. At
the Company's election, the loan will bear interest either at a
fixed interest rate effectively equal to 5.78% or a floating
interest rate equal to three-month LIBOR plus a margin of 3.00% per
annum.
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.
During the fourth quarter, the Company 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 polar ice class vessel in the Lindblad National Geographic
fleet, with the ability to voyage anywhere around the globe and
specializing in polar travel. The vessel 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. During
2017, the Company repurchased 529,867 warrants and 547,058 shares
of common stock under the plan for a total of $6.2 million. As of February 26, 2018 the Company had repurchased 6.0
million warrants and 864,506 shares of common stock under the plan
and had $12.1 million remaining under
the plan. As of February 26, 2018,
there were 45.8 million shares of common stock and 10.1 million
warrants outstanding.
FINANCIAL OUTLOOK
The Company's current expectations for the full year 2018 are as
follows:
- Tour revenues of $308 -
$315 million (16 – 18% growth)
- Adjusted EBITDA of $54 -
$57 million (24 – 31% growth)
As of February 26, 2018, the
Lindblad segment had 90% of full year 2018 projected guest ticket
revenues on the books versus 85% of full year 2017 revenue at the
same time last year. 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
11.
Conference Call Information
The Company has scheduled a conference call at 8:30 a.m. Eastern Time on February 28, 2018 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;
(xii) delays and costs overruns with respect to the construction
and delivery of newly constructed vessels; and (xiii) 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
|
Consolidated
Balance Sheets
|
(In thousands, except
share and per share data)
|
|
|
|
|
|
As of December
31,
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
96,443
|
|
$
135,416
|
Restricted cash and
marketable securities
|
7,057
|
|
9,015
|
Inventories
|
1,794
|
|
1,665
|
Marine operating
supplies
|
5,045
|
|
4,142
|
Prepaid expenses and
other current assets
|
21,351
|
|
20,782
|
Total
current assets
|
131,690
|
|
171,020
|
|
|
|
|
Property and
equipment, net
|
250,952
|
|
186,236
|
Goodwill
|
22,105
|
|
22,105
|
Intangibles,
net
|
9,554
|
|
11,132
|
Other long-term
assets
|
10,047
|
|
13,090
|
Deferred tax
assets
|
-
|
|
4,118
|
Total
assets
|
$
424,348
|
|
$
407,701
|
|
|
|
|
LIABILITIES
|
|
|
|
Current
Liabilities:
|
|
|
|
Unearned passenger
revenues
|
$
112,238
|
|
$
91,501
|
Accounts payable and
accrued expenses
|
30,422
|
|
30,662
|
Long-term debt -
current
|
1,750
|
|
1,750
|
Total
current liabilities
|
144,410
|
|
123,913
|
|
|
|
|
Long-term debt, less
current portion
|
164,186
|
|
164,128
|
Deferred tax
liabilities
|
2,444
|
|
-
|
Other long-term
liabilities
|
684
|
|
681
|
Total
liabilities
|
311,724
|
|
288,722
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
REDEEMABLE
NONCONTROLLING INTEREST
|
6,302
|
|
5,170
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
Preferred stock,
$0.0001 par value, 1,000,000 shares authorized;
|
|
|
|
no shares issued and
outstanding
|
-
|
|
-
|
Common stock, $0.0001
par value, 200,000,000 shares authorized;
|
|
|
|
45,427,030 and
45,659,762 issued; 44,787,608 and 45,470,219 outstanding
|
|
|
|
as of December 31,
2017 and 2016, respectively
|
5
|
|
5
|
Additional paid-in
capital
|
42,498
|
|
43,097
|
Retained
earnings
|
63,819
|
|
70,707
|
Total
stockholders' equity
|
106,322
|
|
113,809
|
Total
liabilities, stockholders' equity and
redeemable noncontrolling
interest
|
$
424,348
|
|
$
407,701
|
|
|
|
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Consolidated
Statements of Operations
|
(In thousands, except
share and per share data)
|
|
|
|
|
|
|
|
|
|
For the three
months ended
December 31,
|
|
For the years
ended
December 31,
|
|
(unaudited)
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
Tour
revenues
|
$
63,221
|
|
$
56,128
|
|
$
266,504
|
|
$
242,346
|
Cost of
tours
|
35,746
|
|
31,866
|
|
135,526
|
|
118,977
|
Gross
profit
|
27,475
|
|
24,262
|
|
130,978
|
|
123,369
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
General and
administrative
|
13,818
|
|
15,156
|
|
60,529
|
|
51,896
|
Selling and
marketing
|
10,833
|
|
9,778
|
|
42,354
|
|
39,072
|
Depreciation and
amortization
|
5,339
|
|
3,897
|
|
17,351
|
|
18,420
|
Total
operating expenses
|
29,990
|
|
28,831
|
|
120,234
|
|
109,388
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
(2,515)
|
|
(4,569)
|
|
10,744
|
|
13,981
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
(2,544)
|
|
(2,232)
|
|
(9,736)
|
|
(10,146)
|
Gain (loss) on
foreign currency
|
96
|
|
(429)
|
|
1,144
|
|
(720)
|
Other income
(expense)
|
419
|
|
(1,173)
|
|
(133)
|
|
(1,173)
|
Gain (loss) on
transfer of assets
|
-
|
|
(45)
|
|
454
|
|
(83)
|
Total
other expense
|
(2,029)
|
|
(3,879)
|
|
(8,271)
|
|
(12,122)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
(4,544)
|
|
(8,448)
|
|
2,473
|
|
1,859
|
Income tax expense
(benefit)
|
10,475
|
|
(87)
|
|
10,002
|
|
(3,200)
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(15,019)
|
|
$
(8,361)
|
|
$
(7,529)
|
|
$
5,059
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest
|
983
|
|
313
|
|
1,132
|
|
195
|
|
|
|
|
|
|
|
|
Net (loss) income
available to common stockholders
|
$
(16,002)
|
|
$
(8,674)
|
|
$
(8,661)
|
|
$
4,864
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
Basic
|
44,725,667
|
|
45,680,837
|
|
44,576,912
|
|
45,649,971
|
Diluted
|
44,725,667
|
|
45,680,837
|
|
44,576,912
|
|
46,456,921
|
|
|
|
|
|
|
|
|
Net (loss) income per
share available to common
stockholders
|
|
|
|
|
|
|
|
Basic
|
$
(0.36)
|
|
$
(0.19)
|
|
$
(0.19)
|
|
$
0.11
|
Diluted
|
$
(0.36)
|
|
$
(0.19)
|
|
$
(0.19)
|
|
$
0.10
|
|
|
|
|
|
|
|
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
(In
thousands)
|
|
|
For the years
ended
December 31,
|
|
2017
|
|
2016
|
Cash Flows From
Operating Activities
|
|
|
|
Net (loss)
income
|
$
(7,529)
|
|
$
5,059
|
Adjustments to
reconcile net income to net cash
provided by operating activities:
|
|
|
|
Depreciation and
amortization
|
17,351
|
|
18,420
|
Amortization of
National Geographic fee
|
2,907
|
|
2,907
|
Amortization of
deferred financing costs
and other, net
|
2,226
|
|
1,144
|
Stock-based
compensation
|
10,627
|
|
5,411
|
Deferred income
taxes
|
8,336
|
|
(3,326)
|
(Gain) loss on
foreign currency
|
(1,144)
|
|
720
|
Loss (gain) on
disposal and transfer of assets
|
-
|
|
819
|
Changes in operating
assets and liabilities
|
|
|
|
Inventories and
marine operating supplies
|
(1,036)
|
|
1,073
|
Prepaid expenses and
other current assets
|
575
|
|
629
|
Unearned passenger
revenues
|
20,709
|
|
245
|
Other long-term
assets
|
136
|
|
(3,642)
|
Other long-term
liabilities
|
3
|
|
4
|
Accounts payable and
accrued expenses
|
(243)
|
|
1,964
|
Net cash provided by
operating activities
|
52,918
|
|
31,427
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
Purchases of property
and equipment
|
(80,485)
|
|
(75,933)
|
Redemption of
restricted cash and marketable securities
|
1,958
|
|
(555)
|
Acquisition of
Natural Habitat, Inc.,
net of $4,904 cash acquired
|
-
|
|
(9,946)
|
Net cash used in
investing activities
|
(78,527)
|
|
(86,434)
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
Repurchase of common
stock and warrants
|
(6,192)
|
|
(10,343)
|
Repurchase under
stock-based compensation plans and
related tax impacts
|
(5,034)
|
|
(2,694)
|
Repayments of
long-term debt
|
(1,750)
|
|
(1,750)
|
Payment of deferred
financing costs
|
(418)
|
|
(1,565)
|
Net cash used in
financing activities
|
(13,394)
|
|
(16,352)
|
Effect of exchange
rate changes on cash
|
30
|
|
(128)
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
(38,973)
|
|
(71,487)
|
|
|
|
|
Cash and cash
equivalents as of beginning of year
|
135,416
|
|
206,903
|
|
|
|
|
Cash and cash
equivalents as of end of year
|
$
96,443
|
|
$
135,416
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
Cash paid during the
year for:
|
|
|
|
Interest
|
$
10,478
|
|
$
9,896
|
Income
taxes
|
$
965
|
|
$
998
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
Additional paid-in
capital exercise proceeds of option shares
|
$
1,682
|
|
$
1,123
|
Additional paid-in
capital exchange proceeds used for option shares
|
$
(1,682)
|
|
$
(1,123)
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Supplemental
Financial Schedules
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income to Adjusted EBITDA
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
For the three
months ended
December 31,
|
|
For the years
ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
*
|
Net (loss)
income
|
$
(15,019)
|
|
$
(8,361)
|
|
$
(7,529)
|
|
$
5,059
|
Income tax expense
(benefit)
|
10,475
|
|
(87)
|
|
10,002
|
|
(3,200)
|
Interest expense,
net
|
2,544
|
|
2,232
|
|
9,736
|
|
10,146
|
Depreciation and
amortization
|
5,339
|
|
3,897
|
|
17,351
|
|
18,420
|
(Gain) loss on
foreign currency
|
(96)
|
|
429
|
|
(1,144)
|
|
720
|
(Gain) loss on
transfer of assets
|
-
|
|
-
|
|
(454)
|
|
83
|
Other expense
(income), net
|
(419)
|
|
1,218
|
|
133
|
|
1,173
|
Stock-based
compensation
|
1,163
|
|
1,430
|
|
10,627
|
|
5,411
|
National Geographic
fee amortization
|
727
|
|
727
|
|
2,907
|
|
2,907
|
Executive severance
costs
|
9
|
|
-
|
|
1,409
|
|
-
|
Reorganization
costs
|
105
|
|
-
|
|
451
|
|
-
|
Acquisition-related
expenses
|
-
|
|
19
|
|
-
|
|
943
|
Adjusted
EBITDA
|
4,828
|
|
1,504
|
|
43,489
|
|
41,662
|
Impact of voyage
cancellations
|
(125)
|
|
-
|
|
9,047
|
|
-
|
Adjusted EBITDA
excluding impact of
voyage cancellations
|
$
4,703
|
|
$
1,504
|
|
$
52,536
|
|
$
41,662
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income to Adjusted EBITDA
|
|
|
|
|
|
|
Lindblad
Segment
|
|
|
|
|
|
|
|
|
For the three
months ended
December 31,
|
|
For the years
ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Operating (loss)
income
|
$
(5,094)
|
|
$
(7,245)
|
|
$
7,292
|
|
$
11,794
|
Depreciation and
amortization
|
4,980
|
|
3,576
|
|
15,969
|
|
17,569
|
Stock-based
compensation
|
1,163
|
|
1,430
|
|
10,627
|
|
5,411
|
National Geographic
fee amortization
|
727
|
|
727
|
|
2,907
|
|
2,907
|
Executive severance
costs
|
9
|
|
-
|
|
1,409
|
|
-
|
Reorganization
costs
|
105
|
|
-
|
|
451
|
|
-
|
Acquisition-related
expenses
|
-
|
|
19
|
|
-
|
|
943
|
Adjusted
EBITDA
|
1,890
|
|
(1,493)
|
|
38,655
|
|
38,624
|
Impact of voyage
cancellations
|
(125)
|
|
-
|
|
9,047
|
|
-
|
Adjusted EBITDA
excluding impact of
voyage cancellations
|
$
1,765
|
|
$
(1,493)
|
|
$
47,702
|
|
$
38,624
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income to Adjusted EBITDA
|
|
|
|
|
|
|
Natural Habitat
Segment
|
|
|
|
|
|
|
|
|
For the three
months ended
December 31,
|
|
For the years
ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
*
|
Operating
income
|
$
2,578
|
|
$
2,676
|
|
$
3,452
|
|
$
2,187
|
Depreciation and
amortization
|
360
|
|
321
|
|
1,382
|
|
851
|
Adjusted
EBITDA
|
$
2,938
|
|
$
2,997
|
|
$
4,834
|
|
$
3,038
|
|
|
* The 2016 Natural
Habitat segment results represent activity from acquisition date of
May 2016 through
December 31, 2016.
|
|
|
|
|
|
|
|
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Supplemental
Financial Schedules
|
(In thousands, except
for Available Guest Nights,
Gross Yield, Net Yield and guest metrics)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Free Cash Flow to Net Cash Provided by Operating
Activities
|
|
|
|
|
|
|
|
|
|
For the years
ended
December 31,
|
|
|
|
|
|
2017
|
|
2016
|
Net cash provided by
operating activities
|
|
|
|
|
$
52,918
|
|
$
31,427
|
Less: purchases of
property and equipment
|
|
|
|
|
(80,485)
|
|
(75,933)
|
Free Cash
Flow
|
|
|
|
|
$
(27,567)
|
|
$
(44,506)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guest Metrics -
Lindblad Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
December 31,
|
|
For the years
ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Available Guest
Nights
|
44,428
|
|
40,325
|
|
186,719
|
|
181,990
|
Guest Nights
Sold
|
38,305
|
|
34,790
|
|
163,256
|
|
164,423
|
Occupancy
|
86.2%
|
|
86.3%
|
|
87.4%
|
|
90.3%
|
Maximum
Guests
|
5,078
|
|
4,597
|
|
22,805
|
|
21,715
|
Number of
Guests
|
4,382
|
|
3,993
|
|
20,140
|
|
19,735
|
Voyages
|
64
|
|
59
|
|
308
|
|
290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Gross Yield and Net Yield
|
|
|
|
|
|
|
|
Lindblad
Segment
|
|
|
|
|
|
|
|
|
For the three
months ended
December 31,
|
|
For the years
ended
December 31,
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Guest ticket
revenues
|
$
43,609
|
|
$
37,238
|
|
$
191,113
|
|
$
183,851
|
Other tour
revenues
|
5,315
|
|
4,662
|
|
25,701
|
|
23,985
|
Tour
Revenues
|
48,924
|
|
41,900
|
|
216,814
|
|
207,836
|
Less: Orion Insurance
Proceeds
|
(125)
|
|
-
|
|
(2,273)
|
|
-
|
Adjusted Tour
Revenues
|
48,799
|
|
41,900
|
|
214,541
|
|
207,836
|
Less:
Commissions
|
(4,045)
|
|
(3,228)
|
|
(16,365)
|
|
(14,954)
|
Less: Other tour
expenses
|
(3,703)
|
|
(3,495)
|
|
(14,325)
|
|
(15,253)
|
Net
Revenue
|
$
41,051
|
|
$
35,177
|
|
$
183,851
|
|
$
177,629
|
Available Guest
Nights
|
44,428
|
|
40,325
|
|
186,719
|
|
181,990
|
Gross
Yield
|
$
1,098
|
|
$
1,039
|
|
$
1,149
|
|
$
1,142
|
Net
Yield
|
924
|
|
872
|
|
985
|
|
976
|
|
|
|
|
|
|
|
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Supplemental
Financial Schedules
|
(In thousands, except
for Available
Guest Nights, Gross Cruise Cost, Net Cruise Cost
and guest metrics)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the three
months ended
December 31,
|
|
For the years
ended
December 31,
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cost of
tours
|
$
28,129
|
|
$
23,873
|
|
$
105,044
|
|
$
96,505
|
Plus: Selling and
marketing
|
9,799
|
|
8,845
|
|
38,429
|
|
36,356
|
Plus: General and
administrative
|
11,110
|
|
12,851
|
|
50,082
|
|
45,612
|
Gross Cruise
Cost
|
49,038
|
|
45,569
|
|
193,555
|
|
178,473
|
Less: Commission
expense
|
(4,045)
|
|
(3,228)
|
|
(16,365)
|
-
|
(14,954)
|
Less: Other tour
expenses
|
(3,703)
|
|
(3,495)
|
|
(14,325)
|
-
|
(15,253)
|
Net Cruise
Cost
|
41,290
|
|
38,846
|
|
162,865
|
|
148,266
|
Less: Fuel
expense
|
(2,155)
|
|
(1,831)
|
|
(7,013)
|
|
(7,138)
|
Net Cruise Cost
Excluding Fuel
|
39,135
|
|
37,015
|
|
155,852
|
|
141,128
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
Stock-based
compensation
|
(1,163)
|
|
(1,430)
|
|
(10,627)
|
|
(5,411)
|
National Geographic
fee amortization
|
(727)
|
|
(727)
|
|
(2,907)
|
|
(2,907)
|
Executive severance
costs
|
(9)
|
|
-
|
|
(1,409)
|
|
-
|
Acquisition-related
expenses
|
-
|
|
(19)
|
|
-
|
|
(943)
|
Adjusted Net
Cruise Cost Excluding Fuel
|
$
37,236
|
|
$
34,840
|
|
$
140,909
|
|
$
131,867
|
Adjusted Net
Cruise Cost
|
$
39,391
|
|
$
36,671
|
|
$
147,922
|
|
$
139,005
|
Available Guest
Nights
|
44,428
|
|
40,325
|
|
186,719
|
|
181,990
|
Gross Cruise Cost per
Avail. Guest Night
|
$
1,104
|
|
$
1,130
|
|
$
1,037
|
|
$
981
|
Net Cruise Cost per
Avail. Guest Night
|
929
|
|
963
|
|
872
|
|
815
|
Net Cruise Cost Excl.
Fuel per Avail. Guest Night
|
881
|
|
918
|
|
835
|
|
775
|
Adj. Net Cruise Cost
Excl. Fuel per
Avail. Guest Night
|
838
|
|
864
|
|
755
|
|
725
|
Adjusted Net
Cruise Cost per
Avail. Guest Night
|
887
|
|
909
|
|
792
|
|
764
|
|
|
|
|
|
|
|
|
Operational and Financial Metrics
Adjusted EBITDA is net (loss) income excluding
depreciation and amortization, net interest expense, other income
(expense), income tax (expense) benefit, (gain) loss on foreign
currency, (gain) loss on transfer of assets, reorganization costs,
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. 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-fourth-quarter-and-full-year-financial-results-300605505.html
SOURCE Lindblad Expeditions Holdings, Inc.