NEW YORK, Feb. 28, 2019 /PRNewswire/ --
Full Year 2018 Highlights:
- Tour revenues increased 16% to $309.7
million
- Net income available to common stockholders increased
$20.0 million to $11.4 million
- Adjusted EBITDA increased 26% to $54.8
million
- Lindblad segment Net Yield increased 6% to $1,044 and Occupancy increased to 91%
- Bookings from the Lindblad segment in 2018 for future travel
increased 20% over bookings in 2017
- Expanded capacity with the launch of the National Geographic
Venture in December 2018
- Expanded strategic partnership with National Geographic to
include all of the Americas
- Following year end, the Company signed an agreement to build an
additional polar ice class vessel
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, 2018.
Sven-Olof Lindblad, President and
Chief Executive Officer, said,
"Lindblad's strong financial growth and operating momentum during
2018 demonstrates the unique opportunity we have to build long-term
value as we capitalize on the growing demand for expedition travel.
We have significantly increased our overall capacity with the
launch of our two new coastal vessels, the National Geographic
Quest and the National Geographic Venture, and at the
same time have been able to expand our Occupancy and Net Yields
despite the additional inventory. Lindblad's unparalleled track
record of delivering high quality and authentic experiences, along
with our strategic partnership with National Geographic, continues
to generate high levels of repeat guests and is attracting more and
more new travelers who want to immerse themselves in the world's
most remarkable geographies. With additional capacity and a strong
booking environment, 2019 is poised to grow significantly. At the
same time, we continue to build the next drivers of growth with the
National Geographic Endurance scheduled to launch in early
2020 and today we announced that that we have contracted for
another new, state of the art, polar vessel for delivery late in
2021. Overall, we have committed to expanding our available guest
nights by over 60% from pre-expansion levels as we broaden our
ability to build additional shareholder value in the years
ahead."
FULL YEAR RESULTS
Tour Revenues
Full year tour revenues of $309.7 million increased $43.2 million, or 16%, as compared to 2017. The
increase was driven by growth of $29.5 million at
the Lindblad segment and a $13.7 million increase at Natural
Habitat.
Lindblad segment tour revenues of $246.3 million increased $29.5 million, or 14% compared to 2017
primarily driven by 8% growth in Available Guest Nights, most
notably due to the launch of the National Geographic
Quest in July 2017 and the
National Geographic Venture in December 2018, as well as from the impact of
voyage cancellations in the first quarter of 2017 for repairs on
the National Geographic Orion and National Geographic Sea
Lion. The year on year growth also reflects an increase in
Occupancy in 2018 to 91% from 87% in 2017 due to higher
overall demand across the fleet, as well as 6% growth in Net Yield
to $1,044 from increased prices and
changes in itineraries.
Natural Habitat revenues of $63.4
million increased $13.7
million, or 28%, compared to a year ago due primarily to
higher ticket revenue from additional departures and increased
pricing.
Net Income
Net income available to common stockholders of $11.4 million for 2018, $0.24 per diluted share, increased
$20.0 million as compared with a net
loss available to common stockholders of $8.7 million, $0.19
per diluted share, in 2017. The increase versus a year ago
primarily reflects the higher operating results, $6.2 million of lower stock-based compensation
expense and a $9.4 million decrease in tax expense due to a
$12.7 million impact in the fourth
quarter of 2017 from the enactment of the U.S. Tax Cuts and Jobs
Act. The current year also includes a $3.4
million increase in depreciation and amortization due to the
addition of new vessels to the fleet, $2.2
million in foreign currency losses and a $1.1 million increase in interest expense
primarily related to refinancing the Company's credit facility
during the first quarter of 2018.
Adjusted EBITDA
Full year 2018 Adjusted EBITDA of $54.8
million increased $11.4
million, or 26%, compared to 2017. The increase was driven
by growth of $9.2 million at the
Lindblad segment and a $2.2 million increase at Natural
Habitat.
Lindblad segment Adjusted EBITDA of $47.8
million increased $9.2
million, or 24%, as compared to 2017 as the increased tour
revenue were partially offset by higher operating costs primarily
from a full year of operating the National Geographic
Quest and costs associated with the December 2018 launch of the National
Geographic Venture. 2018 also included higher commission
expense associated with the revenue growth, as well as increased
fuel and personnel costs.
Natural Habitat Adjusted EBITDA of $7.0
million increased $2.2
million, or 46%, as compared to 2017 as the revenue growth
was partially offset by higher operating costs related to the
additional departures and increased marketing and personnel costs
to drive long-term growth initiatives.
FOURTH QUARTER RESULTS
Tour Revenues
Fourth quarter tour revenues of $70.6 million increased $7.4 million, or 12%, as compared to the same
period in 2017. The increase was driven by growth of $4.5 million at Natural Habitat and a
$2.9 million increase at the
Lindblad segment.
Lindblad segment tour revenues of $51.8
million increased $2.9
million, or 6%, compared to the fourth quarter a year ago
primarily driven by a 16% increase in Net Yield to $1,071 and an increase in Occupancy
to 91% from 86% in 2017. Net Yield growth was driven by
higher pricing and changes in itineraries, while Occupancy growth
was driven by higher demand across the fleet, most notably on the
National Geographic Orion due to a lower occupancy
trans-Atlantic voyage in the fourth quarter of 2017. Available
Guest Nights declined 9% primarily due to the trans-Atlantic voyage
a year ago, partially offset by the launch of the National
Geographic Venture in December
2018.
Natural Habitat revenues of $18.8
million increased $4.5
million, or 31%, compared to a year ago due primarily to
higher ticket revenue from additional departures and increased
pricing.
Net Income
Net loss available to common stockholders for the fourth quarter
was $4.6 million, $0.10 per diluted share, as compared with a loss
of $16.0 million, $0.36 per diluted share, in the fourth quarter of
2017. The $11.4 million improvement
versus a year ago primarily reflects a $13.1
million decrease in tax expense mainly due to a $12.7 million impact from the enactment of the
U.S. Tax Cuts and Jobs Act in the fourth quarter of 2017, partially
offset by lower operating results and $0.8
million in foreign currency losses.
Adjusted EBITDA
Fourth quarter Adjusted EBITDA of $4.1
million decreased $0.7
million, or 15%, as compared to the same period in 2017 as
growth of $0.9 million at Natural
Habitat was more than offset by a $1.6
million decrease at the Lindblad segment.
Lindblad segment Adjusted EBITDA of $0.3
million decreased $1.6 million
compared to the fourth quarter a year ago as the increased tour
revenues were offset primarily by higher operating costs from the
launch of the National Geographic Venture in December 2018, as well as from increased
commission expense related to the revenue growth and higher
personnel costs.
Natural Habitat Adjusted EBITDA of $3.8
million increased $0.9
million, or 30%, versus the fourth quarter a year ago as the
revenue growth was partially offset by higher operating costs
related to the additional departures and increased marketing and
personnel costs to drive long-term growth initiatives.
Segment
Results
|
|
|
|
|
|
|
|
|
|
For the three
months ended
December 31,
|
|
|
For the years
ended
December 31,
|
|
(In
thousands)
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
%
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
%
|
|
Tour
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
51,817
|
|
|
$
|
48,924
|
|
|
$
|
2,893
|
|
|
|
6%
|
|
|
$
|
246,334
|
|
|
$
|
216,815
|
|
|
$
|
29,519
|
|
|
|
14%
|
|
Natural
Habitat
|
|
|
18,792
|
|
|
|
14,297
|
|
|
|
4,495
|
|
|
|
31%
|
|
|
|
63,400
|
|
|
|
49,689
|
|
|
|
13,711
|
|
|
|
28%
|
|
Total tour
revenues
|
|
$
|
70,609
|
|
|
$
|
63,221
|
|
|
$
|
7,388
|
|
|
|
12%
|
|
|
$
|
309,734
|
|
|
$
|
266,504
|
|
|
$
|
43,230
|
|
|
|
16%
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
(6,957)
|
|
|
$
|
(5,093)
|
|
|
$
|
(1,864)
|
|
|
|
37%
|
|
|
$
|
19,798
|
|
|
$
|
7,291
|
|
|
$
|
12,507
|
|
|
|
172%
|
|
Natural
Habitat
|
|
|
3,436
|
|
|
|
2,580
|
|
|
|
856
|
|
|
|
33%
|
|
|
|
5,540
|
|
|
|
3,452
|
|
|
|
2,088
|
|
|
|
60%
|
|
Total operating
income
|
|
$
|
(3,521)
|
|
|
$
|
(2,513)
|
|
|
$
|
(1,008)
|
|
|
|
40%
|
|
|
$
|
25,338
|
|
|
$
|
10,743
|
|
|
$
|
14,595
|
|
|
|
136%
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
276
|
|
|
$
|
1,890
|
|
|
$
|
(1,614)
|
|
|
|
(85%)
|
|
|
$
|
47,815
|
|
|
$
|
38,655
|
|
|
$
|
9,160
|
|
|
|
24%
|
|
Natural
Habitat
|
|
|
3,819
|
|
|
|
2,938
|
|
|
|
881
|
|
|
|
30%
|
|
|
|
7,031
|
|
|
|
4,834
|
|
|
|
2,197
|
|
|
|
45%
|
|
Total Adjusted
EBITDA
|
|
$
|
4,095
|
|
|
$
|
4,828
|
|
|
$
|
(733)
|
|
|
|
(15%)
|
|
|
$
|
54,846
|
|
|
$
|
43,489
|
|
|
$
|
11,357
|
|
|
|
26%
|
|
Liquidity
The Company's cash, cash equivalents and restricted cash were
$122.2 million as of December 31, 2018, as compared with $103.5 million as of December 31, 2017. The $18.7 million increase primarily reflects
$56.4 million in net cash provided by
operating activities due to the strong operating performance and
$16.5 million in net cash provided by
financing activities, primarily due to the increase in long-term
debt associated with refinancing our credit facility. These
increases were partially offset by $54.3
million in net cash used in investing activities, primarily
related to the construction of two new vessels.
Free cash flow was $2.0 million
for the full year 2018 as compared with a free cash flow use of
$27.6 million in 2017. The
$29.6 million improvement primarily
reflects the strong operating performance in the current year 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.
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 polar ice-class 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.
On March 28, 2018, the Company
refinanced its existing senior secured term loan and revolving
credit facility. The new $200
million, seven-year, senior secured term loan facility bears
interest at LIBOR plus 3.50%, with a potential step down to LIBOR
plus 3.25% depending on the Company's credit rating. The new
$45 million, five-year, revolving
credit facility bears interest at LIBOR plus 3.00%. The
pricing of the new term loan and revolving credit facility
reflected a one percentage point rate reduction compared to the
prior $175 million term loan facility
and $45 million revolving credit
facility. Additionally, the covenants in the new facility
were modified to provide the Company with additional strategic and
operational flexibility. The proceeds from the new term loan were
utilized to pay down the Company's existing term loan with the
remaining additional proceeds available for general corporate
purposes.
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, launched in the December
2018 and is operating in Baja during the winter season before heading
to Alaska for the summer
months.
The Company is currently building a polar ice class vessel, the
National Geographic Endurance, for delivery in January
2020. This state-of-the art vessel will join the National
Geographic Explorer and the National Geographic Orion as
the third polar ice class vessels in the Lindblad National
Geographic fleet, with the ability to voyage anywhere around the
globe and specializing in polar travel. This new 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.
Following year-end, the Company signed a second contract with
Ulstein Verft to build a sister ship to the National Geographic
Endurance for delivery in September
2021. This fourth polar ice class vessel will enable
us to further capitalize on the growth in high quality adventure
travel and broaden the immersive and authentic itineraries we offer
to our guests.
STOCK AND WARRANT REPURCHASE PLAN
The Company currently 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 2018, the Company repurchased 568,446 warrants and
9,030 shares of common stock under the plan for a total of
$0.9 million. As of February 26, 2019 the Company had repurchased 6.0
million warrants and 866,701 shares of common stock under the plan
and had $12.1 million remaining under
the plan. As of February 22, 2019,
there were 45.7 million shares of common stock and 10.1 million
warrants outstanding.
FINANCIAL OUTLOOK
The Company's current expectations for the full year 2019 are as
follows:
- Tour revenues of $350 -
$358 million (13 – 16% growth)
- Adjusted EBITDA of $67 -
$70 million (22 – 28% growth)
As of February 26, 2019, Lindblad
segment bookings for travel during 2019 have increased 10% as
compared with bookings for 2018 as of the same date a year
ago. Additionally, the Lindblad segment had 87% of full
year 2019 projected guest ticket revenues on the books versus
89% of full year 2018 guest ticket revenue at the same time
last year.
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
9.
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://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 credit
agreements; (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,
|
|
|
|
2018
|
|
|
2017
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
113,396
|
|
|
$
|
96,443
|
|
Restricted cash and
marketable securities
|
|
|
8,755
|
|
|
|
7,057
|
|
Marine operating
supplies
|
|
|
5,165
|
|
|
|
5,045
|
|
Inventories
|
|
|
1,604
|
|
|
|
1,794
|
|
Prepaid expenses and
other current assets
|
|
|
21,263
|
|
|
|
21,351
|
|
Total current
assets
|
|
|
150,183
|
|
|
|
131,690
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
285,979
|
|
|
|
250,952
|
|
Goodwill
|
|
|
22,105
|
|
|
|
22,105
|
|
Intangibles,
net
|
|
|
7,975
|
|
|
|
9,554
|
|
Other long-term
assets
|
|
|
7,167
|
|
|
|
10,047
|
|
Total
assets
|
|
$
|
473,409
|
|
|
$
|
424,348
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Unearned passenger
revenues
|
|
$
|
123,489
|
|
|
$
|
112,238
|
|
Accounts payable and
accrued expenses
|
|
|
33,944
|
|
|
|
30,422
|
|
Long-term debt -
current
|
|
|
2,000
|
|
|
|
1,750
|
|
Total current
liabilities
|
|
|
159,433
|
|
|
|
144,410
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
188,089
|
|
|
|
164,186
|
|
Deferred tax
liabilities
|
|
|
2,787
|
|
|
|
2,444
|
|
Other long-term
liabilities
|
|
|
554
|
|
|
|
684
|
|
Total
liabilities
|
|
|
350,863
|
|
|
|
311,724
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REDEEMABLE
NONCONTROLLING INTEREST
|
|
|
6,502
|
|
|
|
6,302
|
|
|
|
|
|
|
|
|
|
|
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;
|
|
|
|
|
|
|
|
|
45,814,925 and
45,427,030 issued, 45,442,728 and 44,787,608 outstanding
|
|
|
|
|
|
|
|
|
as of December 31,
2018 and December 31, 2017, respectively
|
|
|
5
|
|
|
|
5
|
|
Additional paid-in
capital
|
|
|
41,539
|
|
|
|
42,498
|
|
Retained
earnings
|
|
|
75,171
|
|
|
|
63,819
|
|
Accumulated other
comprehensive income
|
|
|
(671)
|
|
|
|
-
|
|
Total stockholders'
equity
|
|
|
116,044
|
|
|
|
106,322
|
|
Total liabilities,
stockholders' equity and redeemable noncontrolling
interest
|
|
$
|
473,409
|
|
|
$
|
424,348
|
|
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,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Tour
revenues
|
|
$
|
70,609
|
|
|
$
|
63,220
|
|
|
$
|
309,734
|
|
|
$
|
266,504
|
|
Cost of
tours
|
|
|
39,098
|
|
|
|
35,746
|
|
|
|
153,743
|
|
|
|
135,526
|
|
Gross
profit
|
|
|
31,511
|
|
|
|
27,474
|
|
|
|
155,991
|
|
|
|
130,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
17,251
|
|
|
|
13,817
|
|
|
|
62,898
|
|
|
|
60,529
|
|
Selling and
marketing
|
|
|
12,076
|
|
|
|
10,833
|
|
|
|
46,987
|
|
|
|
42,354
|
|
Depreciation and
amortization
|
|
|
5,706
|
|
|
|
5,339
|
|
|
|
20,768
|
|
|
|
17,351
|
|
Total operating
expenses
|
|
|
35,033
|
|
|
|
29,989
|
|
|
|
130,653
|
|
|
|
120,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
|
(3,522)
|
|
|
|
(2,515)
|
|
|
|
25,338
|
|
|
|
10,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(2,817)
|
|
|
|
(2,544)
|
|
|
|
(10,830)
|
|
|
|
(9,736)
|
|
(Loss) gain on
foreign currency
|
|
|
(745)
|
|
|
|
96
|
|
|
|
(2,175)
|
|
|
|
1,144
|
|
Other (expense)
income
|
|
|
(45)
|
|
|
|
419
|
|
|
|
(165)
|
|
|
|
(133)
|
|
Gain on transfer of
assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
454
|
|
Total other
expense
|
|
|
(3,607)
|
|
|
|
(2,029)
|
|
|
|
(13,170)
|
|
|
|
(8,271)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes
|
|
|
(7,129)
|
|
|
|
(4,544)
|
|
|
|
12,168
|
|
|
|
2,473
|
|
Income tax (benefit)
expense
|
|
|
(2,577)
|
|
|
|
10,475
|
|
|
|
616
|
|
|
|
10,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
(4,552)
|
|
|
|
(15,019)
|
|
|
|
11,552
|
|
|
|
(7,529)
|
|
Net income
attributable to noncontrolling interest
|
|
|
92
|
|
|
|
983
|
|
|
|
200
|
|
|
|
1,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
available to common stockholders
|
|
$
|
(4,644)
|
|
|
$
|
(16,002)
|
|
|
$
|
11,352
|
|
|
$
|
(8,661)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
45,442,728
|
|
|
|
44,725,667
|
|
|
|
45,378,188
|
|
|
|
44,576,912
|
|
Diluted
|
|
|
45,442,728
|
|
|
|
44,725,667
|
|
|
|
46,340,054
|
|
|
|
44,576,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share available to common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.10)
|
|
|
$
|
(0.36)
|
|
|
$
|
0.25
|
|
|
$
|
(0.19)
|
|
Diluted
|
|
$
|
(0.10)
|
|
|
$
|
(0.36)
|
|
|
$
|
0.24
|
|
|
$
|
(0.19)
|
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
(In
thousands)
|
|
|
|
|
|
|
For the years
ended
December
31,
|
|
|
|
2018
|
|
|
2017
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
11,552
|
|
|
$
|
(7,529)
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
20,768
|
|
|
|
17,351
|
|
Amortization of
National Geographic fee
|
|
|
2,907
|
|
|
|
2,907
|
|
Amortization of
deferred financing costs and other, net
|
|
|
1,909
|
|
|
|
2,226
|
|
Stock-based
compensation
|
|
|
4,405
|
|
|
|
10,627
|
|
Deferred income
taxes
|
|
|
343
|
|
|
|
8,336
|
|
Loss (gain) on
foreign currency
|
|
|
2,175
|
|
|
|
(1,144)
|
|
Write-off of
unamortized issuance costs related to debt refinancing
|
|
|
359
|
|
|
|
-
|
|
Loss on write-off of
assets
|
|
|
129
|
|
|
|
-
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
Marine operating
supplies and inventories
|
|
|
70
|
|
|
|
(1,036)
|
|
Prepaid expenses and
other current assets
|
|
|
(716)
|
|
|
|
575
|
|
Unearned passenger
revenues
|
|
|
11,134
|
|
|
|
20,709
|
|
Other long-term
assets
|
|
|
(698)
|
|
|
|
136
|
|
Other long-term
liabilities
|
|
|
(129)
|
|
|
|
3
|
|
Accounts payable and
accrued expenses
|
|
|
2,149
|
|
|
|
(243)
|
|
Net cash provided by
operating activities
|
|
|
56,357
|
|
|
|
52,918
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(54,345)
|
|
|
|
(80,485)
|
|
Net cash used in
investing activities
|
|
|
(54,345)
|
|
|
|
(80,485)
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
|
|
Proceeds from
long-term debt
|
|
|
200,000
|
|
|
|
-
|
|
Repayments of
long-term debt
|
|
|
(171,625)
|
|
|
|
(1,750)
|
|
Payment of deferred
financing costs
|
|
|
(6,490)
|
|
|
|
(418)
|
|
Repurchase under
stock-based compensation plans and related tax impacts
|
|
|
(4,510)
|
|
|
|
(5,034)
|
|
Repurchase of
warrants and common stock
|
|
|
(854)
|
|
|
|
(6,192)
|
|
Net cash provided by
(used in) financing activities
|
|
|
16,521
|
|
|
|
(13,394)
|
|
Effect of exchange
rate changes on cash
|
|
|
118
|
|
|
|
30
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
|
|
18,651
|
|
|
|
(40,931)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
|
103,500
|
|
|
|
144,431
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
122,151
|
|
|
$
|
103,500
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid during the
period:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
13,391
|
|
|
$
|
10,478
|
|
Income
taxes
|
|
$
|
522
|
|
|
$
|
965
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
|
Additional paid-in
capital exercise proceeds of option shares
|
|
$
|
1,682
|
|
|
$
|
1,682
|
|
Additional paid-in
capital exchange proceeds used for option shares
|
|
$
|
(1,682)
|
|
|
$
|
(1,682)
|
|
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,
|
|
(In
thousands)
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Net (loss)
income
|
|
$
|
(4,552)
|
|
|
$
|
(15,019)
|
|
|
$
|
11,552
|
|
|
$
|
(7,529)
|
|
Interest expense,
net
|
|
|
2,817
|
|
|
|
2,544
|
|
|
|
10,830
|
|
|
|
9,736
|
|
Income tax (benefit)
expense
|
|
|
(2,577)
|
|
|
|
10,475
|
|
|
|
616
|
|
|
|
10,002
|
|
Depreciation and
amortization
|
|
|
5,706
|
|
|
|
5,339
|
|
|
|
20,768
|
|
|
|
17,351
|
|
Loss (gain) on
foreign currency
|
|
|
745
|
|
|
|
(96)
|
|
|
|
2,175
|
|
|
|
(1,144)
|
|
Gain on transfer of
assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(454)
|
|
Other expense
(income), net
|
|
|
45
|
|
|
|
(419)
|
|
|
|
165
|
|
|
|
133
|
|
Stock-based
compensation
|
|
|
1,149
|
|
|
|
1,163
|
|
|
|
4,405
|
|
|
|
10,627
|
|
National Geographic
fee amortization
|
|
|
727
|
|
|
|
727
|
|
|
|
2,907
|
|
|
|
2,907
|
|
Executive severance
costs
|
|
|
-
|
|
|
|
9
|
|
|
|
71
|
|
|
|
1,409
|
|
Reorganization
costs
|
|
|
35
|
|
|
|
104
|
|
|
|
360
|
|
|
|
451
|
|
Debt refinancing
costs
|
|
|
-
|
|
|
|
-
|
|
|
|
997
|
|
|
|
-
|
|
Adjusted
EBITDA
|
|
$
|
4,095
|
|
|
$
|
4,828
|
|
|
$
|
54,846
|
|
|
$
|
43,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income to Adjusted EBITDA
|
Lindblad
Segment
|
|
|
|
|
|
|
|
|
|
For the three
months ended
December 31,
|
|
|
For the years
ended
December
31,
|
|
(In
thousands)
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Operating (loss)
income
|
|
$
|
(6,957)
|
|
|
$
|
(5,093)
|
|
|
$
|
19,798
|
|
|
$
|
7,292
|
|
Depreciation and
amortization
|
|
|
5,322
|
|
|
|
4,980
|
|
|
|
19,277
|
|
|
|
15,969
|
|
Stock-based
compensation
|
|
|
1,149
|
|
|
|
1,163
|
|
|
|
4,405
|
|
|
|
10,627
|
|
National Geographic
fee amortization
|
|
|
727
|
|
|
|
727
|
|
|
|
2,907
|
|
|
|
2,907
|
|
Executive severance
costs
|
|
|
-
|
|
|
|
9
|
|
|
|
71
|
|
|
|
1,409
|
|
Reorganization
costs
|
|
|
35
|
|
|
|
104
|
|
|
|
360
|
|
|
|
451
|
|
Debt refinancing
costs
|
|
|
-
|
|
|
|
-
|
|
|
|
997
|
|
|
|
-
|
|
Adjusted
EBITDA
|
|
$
|
276
|
|
|
$
|
1,890
|
|
|
$
|
47,815
|
|
|
$
|
38,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income to Adjusted EBITDA
|
Natural Habitat
Segment
|
|
|
|
|
|
|
|
|
|
For the three
months ended
December 31,
|
|
|
For the years
ended
December
31,
|
|
(In
thousands)
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Operating
income
|
|
$
|
3,436
|
|
|
$
|
2,578
|
|
|
$
|
5,540
|
|
|
$
|
3,452
|
|
Depreciation and
amortization
|
|
|
383
|
|
|
|
360
|
|
|
|
1,491
|
|
|
|
1,382
|
|
Adjusted
EBITDA
|
|
$
|
3,819
|
|
|
$
|
2,938
|
|
|
$
|
7,031
|
|
|
$
|
4,834
|
|
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,
|
|
|
|
2018
|
|
|
2017
|
|
Net cash provided by
operating activities
|
|
$
|
56,357
|
|
|
$
|
52,918
|
|
Less: purchases of
property and equipment
|
|
|
(54,345)
|
|
|
|
(80,485)
|
|
Free Cash
Flow
|
|
$
|
2,012
|
|
|
$
|
(27,567)
|
|
Guest Metrics -
Lindblad Segment
|
|
|
|
For the three
months
ended
December 31,
|
|
|
For the years
ended
December 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Available Guest
Nights
|
|
|
40,274
|
|
|
|
44,428
|
|
|
|
200,849
|
|
|
|
186,719
|
|
Guest Nights
Sold
|
|
|
36,584
|
|
|
|
38,305
|
|
|
|
182,298
|
|
|
|
163,256
|
|
Occupancy
|
|
|
91%
|
|
|
|
86%
|
|
|
|
91%
|
|
|
|
87%
|
|
Maximum
Guests
|
|
|
5,061
|
|
|
|
5,078
|
|
|
|
25,449
|
|
|
|
22,805
|
|
Number of
Guests
|
|
|
4,549
|
|
|
|
4,382
|
|
|
|
23,102
|
|
|
|
20,140
|
|
Voyages
|
|
|
61
|
|
|
|
64
|
|
|
|
330
|
|
|
|
308
|
|
Calculation of
Gross Yield and Net Yield
|
Lindblad
Segment
|
|
|
|
|
|
|
|
|
|
For the three
months ended
December 31,
|
|
|
For the years
ended
December 31,
|
|
(In thousands, except
for Available Guest Nights, Gross and
Net Yield)
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Guest ticket
revenues
|
|
$
|
46,141
|
|
|
$
|
43,609
|
|
|
$
|
220,841
|
|
|
$
|
191,113
|
|
Other tour
revenues
|
|
|
5,676
|
|
|
|
5,315
|
|
|
|
25,493
|
|
|
|
25,702
|
|
Tour
Revenues
|
|
|
51,817
|
|
|
|
48,924
|
|
|
|
246,334
|
|
|
|
216,815
|
|
Less: Orion Insurance
Proceeds
|
|
|
-
|
|
|
|
(125)
|
|
|
|
-
|
|
|
|
(2,273)
|
|
Adjusted Tour
Revenues
|
|
|
51,817
|
|
|
|
48,799
|
|
|
|
246,334
|
|
|
|
214,542
|
|
Less:
Commissions
|
|
|
(4,544)
|
|
|
|
(4,045)
|
|
|
|
(19,521)
|
|
|
|
(16,365)
|
|
Less: Other tour
expenses
|
|
|
(4,153)
|
|
|
|
(3,703)
|
|
|
|
(17,106)
|
|
|
|
(14,325)
|
|
Net
Revenue
|
|
$
|
43,120
|
|
|
$
|
41,051
|
|
|
$
|
209,707
|
|
|
$
|
183,852
|
|
Available Guest
Nights
|
|
|
40,274
|
|
|
|
44,428
|
|
|
|
200,849
|
|
|
|
186,719
|
|
Gross
Yield
|
|
$
|
1,287
|
|
|
$
|
1,098
|
|
|
$
|
1,226
|
|
|
$
|
1,149
|
|
Net
Yield
|
|
|
1,071
|
|
|
|
924
|
|
|
|
1,044
|
|
|
|
985
|
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Supplemental
Financial Schedules
|
(In thousands, except
for Available
Guest Nights, Gross and Net Cruise Cost Per Avail. Guest Night
and guest metrics)
|
(unaudited)
|
|
|
|
|
|
|
|
(In thousands, except
for Available Guest Nights,
Gross and Net Cruise Cost per Available Guest Night)
|
|
For the three
months ended
December 31,
|
|
|
For the years
ended
December 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Cost of
tours
|
|
$
|
29,004
|
|
|
$
|
28,129
|
|
|
$
|
114,841
|
|
|
$
|
105,044
|
|
Plus: Selling and
marketing
|
|
|
10,626
|
|
|
|
9,799
|
|
|
|
42,325
|
|
|
|
38,429
|
|
Plus: General and
administrative
|
|
|
13,822
|
|
|
|
11,110
|
|
|
|
50,093
|
|
|
|
50,082
|
|
Gross Cruise
Cost
|
|
|
53,452
|
|
|
|
49,038
|
|
|
|
207,259
|
|
|
|
193,555
|
|
Less: Commission
expense
|
|
|
(4,544)
|
|
|
|
(4,045)
|
|
|
|
(19,521)
|
|
|
|
(16,365)
|
|
Less: Other tour
expenses
|
|
|
(4,153)
|
|
|
|
(3,703)
|
|
|
|
(17,106)
|
|
|
|
(14,325)
|
|
Net Cruise
Cost
|
|
|
44,755
|
|
|
|
41,290
|
|
|
|
170,632
|
|
|
|
162,865
|
|
Less: Fuel
expense
|
|
|
(2,352)
|
|
|
|
(2,155)
|
|
|
|
(9,228)
|
|
|
|
(7,013)
|
|
Net Cruise Cost
Excluding Fuel
|
|
|
42,403
|
|
|
|
39,135
|
|
|
|
161,404
|
|
|
|
155,852
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
(1,149)
|
|
|
|
(1,163)
|
|
|
|
(4,405)
|
|
|
|
(10,627)
|
|
National Geographic
fee amortization
|
|
|
(727)
|
|
|
|
(727)
|
|
|
|
(2,907)
|
|
|
|
(2,907)
|
|
Executive severance
costs
|
|
|
-
|
|
|
|
(9)
|
|
|
|
(71)
|
|
|
|
(1,409)
|
|
Reorganization
costs
|
|
|
(35)
|
|
|
|
(104)
|
|
|
|
(360)
|
|
|
|
(451)
|
|
Debt refinancing
costs
|
|
|
-
|
|
|
|
-
|
|
|
|
(997)
|
|
|
|
-
|
|
Adjusted Net
Cruise Cost Excluding Fuel
|
|
$
|
40,492
|
|
|
$
|
37,131
|
|
|
$
|
152,664
|
|
|
$
|
140,458
|
|
Adjusted Net
Cruise Cost
|
|
$
|
42,844
|
|
|
$
|
39,286
|
|
|
$
|
161,892
|
|
|
$
|
147,471
|
|
Available Guest
Nights
|
|
|
40,274
|
|
|
|
44,428
|
|
|
|
200,849
|
|
|
|
186,719
|
|
Gross Cruise Cost per
Available Guest Night
|
|
$
|
1,327
|
|
|
$
|
1,104
|
|
|
$
|
1,032
|
|
|
$
|
1,037
|
|
Net Cruise Cost per
Available Guest Night
|
|
|
1,111
|
|
|
|
929
|
|
|
|
850
|
|
|
|
872
|
|
Net Cruise Cost
Excluding Fuel per Available Guest Night
|
|
|
1,053
|
|
|
|
881
|
|
|
|
804
|
|
|
|
835
|
|
Adjusted Net Cruise
Cost Excluding Fuel per Available Guest Night
|
|
|
1,005
|
|
|
|
836
|
|
|
|
760
|
|
|
|
752
|
|
Adjusted Net
Cruise Cost per Available Guest Night
|
|
|
1,064
|
|
|
|
884
|
|
|
|
806
|
|
|
|
790
|
|
Operational and Financial Metrics
Adjusted EBITDA is net income (loss) 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, debt refinancing fees 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, 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 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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SOURCE Lindblad Expeditions Holdings, Inc.