NEW YORK, August 1, 2019 /PRNewswire/ --
Second Quarter 2019 Highlights:
- Tour revenues increased 10% to $76.7
million
- Net income available to common stockholders increased
$0.9 million to $1.0 million
- Adjusted EBITDA increased 9% to $12.5
million
- Lindblad segment Net Yield increased 3% to $1,030 and Occupancy was 89%
- Commenced exchange offer for all outstanding warrants, expect
to complete full redemption on August 1,
2019
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 June 30, 2019.
Sven-Olof Lindblad, President and
Chief Executive Officer, said "Lindblad's strong second quarter
operating results further demonstrates the opportunity we have to
deliver sustained growth as we expand our capacity while
maintaining high occupancy levels and net yields. The additions of
the National Geographic Quest and the National Geographic
Venture to our fleet over the past two years has substantially
increased our available berths and the growing demand for authentic
expedition travel, along with a diverse base of loyal guests, has
enabled us to fill this new inventory at healthy price points. We
are still in the early days of our expansion plans and with strong
demand across our growing fleet, including robust early bookings
for our two new polar vessels scheduled for delivery in 2020 and
2021, we are poised to build on our sustained momentum in the years
ahead."
SECOND QUARTER RESULTS
Tour Revenues
Second quarter tour revenues of $76.7
million increased $7.2
million, or 10%, as compared to the same period in 2018. The
increase was driven by growth of $5.4 million at the Lindblad segment and a
$1.8 million increase at Natural
Habitat.
Lindblad segment tour revenues of $64.9
million increased $5.4
million, or 9%, compared to the second quarter a year ago
primarily due to a 6% increase in Available Guest Nights, mostly
from the launch of the National Geographic Venture in
December 2018. The year on year
growth also reflects a 3% increase in Net Yield to $1,030 due primarily to higher pricing and
changes in itineraries, partially offset by a slight decline in
Occupancy to 89%.
Natural Habitat revenues of $11.7
million increased $1.8
million, or 18%, compared to the second quarter a year ago
due primarily to higher ticket revenue from additional departures
and increased pricing.
Net Income
Net income available to common stockholders for the second
quarter was $1.0 million,
$0.02 per diluted share, as compared
with net income available to common stockholders of $0.1 million, $0.00
per diluted share, in the second quarter of 2018. The $0.9 million improvement primarily reflects the
higher operating results and $0.5
million in foreign currency gains as compared with
$1.1 million in foreign currency
losses in the second quarter of 2018. These increases were
partially offset primarily by a $1.2
million increase in depreciation and amortization due
largely to the addition of the National Geographic Venture
to the fleet in December 2018.
Adjusted EBITDA
Second quarter Adjusted EBITDA of $12.5
million increased $1.0
million, or 9%, as compared to the same period in 2018. The
increase was driven by growth of $1.3
million at the Lindblad segment slightly offset by a
$0.2 million decrease at Natural
Habitat.
Lindblad segment Adjusted EBITDA of $13.3
million increased $1.3
million, or 11%, as compared to the second quarter a year
ago as the increased tour revenues were partially offset by
operating costs on the National Geographic Venture. The
second quarter also included increased costs due to higher
marketing spend to drive long-term growth initiatives, increased
commission expense related to the revenue growth and higher
personnel costs partially offset by lower drydock expense.
Natural Habitat Adjusted EBITDA was a loss of $0.8 million, a $0.2
million, or 45%, decrease as compared to the second quarter
a year ago as the revenue growth was more than offset by increased
operating costs related to additional departures and higher
marketing and personnel costs to drive long-term growth
initiatives.
|
|
For the three
months ended
June 30,
|
|
|
For the six months
ended
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
Change
|
|
|
%
|
|
|
2019
|
|
|
2018
|
|
|
Change
|
|
|
%
|
|
Tour
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
64,930
|
|
|
$
|
59,556
|
|
|
$
|
5,374
|
|
|
|
9%
|
|
|
$
|
140,968
|
|
|
$
|
130,009
|
|
|
$
|
10,959
|
|
|
|
8%
|
|
Natural
Habitat
|
|
|
11,728
|
|
|
|
9,917
|
|
|
|
1,811
|
|
|
|
18%
|
|
|
|
25,343
|
|
|
|
21,874
|
|
|
|
3,469
|
|
|
|
16%
|
|
Total tour
revenues
|
|
$
|
76,658
|
|
|
$
|
69,473
|
|
|
$
|
7,185
|
|
|
|
10%
|
|
|
$
|
166,311
|
|
|
$
|
151,883
|
|
|
$
|
14,428
|
|
|
|
9%
|
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
5,302
|
|
|
$
|
5,107
|
|
|
$
|
195
|
|
|
|
4%
|
|
|
$
|
18,943
|
|
|
$
|
18,547
|
|
|
$
|
396
|
|
|
|
2%
|
|
Natural
Habitat
|
|
|
(1,181)
|
|
|
|
(900)
|
|
|
|
(281)
|
|
|
|
(31%)
|
|
|
|
(458)
|
|
|
|
32
|
|
|
|
(490)
|
|
|
|
NM
|
|
Total operating
income
|
|
$
|
4,121
|
|
|
$
|
4,207
|
|
|
$
|
(86)
|
|
|
|
(2%)
|
|
|
$
|
18,485
|
|
|
$
|
18,579
|
|
|
$
|
(94)
|
|
|
|
(1%)
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
13,270
|
|
|
$
|
11,982
|
|
|
$
|
1,288
|
|
|
|
11%
|
|
|
$
|
34,200
|
|
|
$
|
32,871
|
|
|
$
|
1,329
|
|
|
|
4%
|
|
Natural
Habitat
|
|
|
(773)
|
|
|
|
(532)
|
|
|
|
(241)
|
|
|
|
(45%)
|
|
|
|
344
|
|
|
|
761
|
|
|
|
(417)
|
|
|
|
(55%)
|
|
Total adjusted
EBITDA
|
|
$
|
12,497
|
|
|
$
|
11,450
|
|
|
$
|
1,047
|
|
|
|
9%
|
|
|
$
|
34,544
|
|
|
$
|
33,632
|
|
|
$
|
912
|
|
|
|
3%
|
|
Liquidity
The Company's cash, cash equivalents and restricted cash were
$112.1 million as of June 30, 2019, as compared with $122.2 million as of December 31, 2018. The decrease primarily
reflects purchases of property and equipment of $42.3 million, mostly related to the construction
of two new vessels, partially offset by $37.2 million in net cash provided by operating
activities due to the strong operating performance and increased
bookings for future travel.
Free cash flow use was $5.0
million for the six months ended June
30, 2019 as compared with a use of $6.7 million in the same period of 2018. The
$1.7 million improvement is primarily
due to the strong operating performance partially offset by higher
capital expenditures for the construction of new vessels. Free cash
flow is defined as net cash provided by operating activities less
purchases of property and equipment.
During the quarter, 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 $122.8 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 6.36% 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 December 2018 with the launch of the National
Geographic Venture, which sailed in Baja during the winter season before heading
to Alaska for the summer
months.
The Company is currently building two new state-of-the-art polar
ice class vessels to further capitalize on the growth in high
quality adventure travel and broaden the immersive and authentic
itineraries we offer to our guests. The National Geographic
Endurance is scheduled for delivery in January 2020 and, in February 2019, we signed a contract for her
sister ship, scheduled for delivery in September 2021. These two vessels will join the
National Geographic Explorer and the National Geographic
Orion to dramatically increase the polar capacity of the
Lindblad National Geographic fleet. They 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.
STOCK AND WARRANT TRANSACTIONS
On June 14, 2019 the Company
commenced an Exchange Offer and Consent Solicitation relating to
its outstanding warrants in order to simplify its corporate
structure and reduce the potential dilutive impact of the warrants.
Each holder of the warrants was offered 0.385 shares of common
stock in exchange for each warrant and consent to amend the warrant
agreement to permit the Company to require that each outstanding
warrant that was not tendered in the Exchange Offer be
converted into 0.36575 shares of common stock. The Exchange Offer
and Consent Solicitation closed on July 17,
2019, with 98.5% of the 10,085,474 warrants exchanged for an
aggregate of 3,824,959 shares of Company common stock. Per the
amended warrant agreement, the remaining warrants are being
exchanged at a ratio of 0.36575 shares of common stock for an
aggregate of approximately 55,000 shares of common stock. Following
such exchange, no warrants will remain outstanding.
The Company currently has a $35
million stock repurchase plan in place. As of July 31, 2019, the Company had repurchased 6.0
million warrants and 866,701 shares under the plan for a total
of $22.9 million and had $12.1 million remaining under the plan. As of
July 31, 2019, there were 49.6
million shares of common stock 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 July 30, 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 99% of full year 2019
projected guest ticket revenues on the books versus 99% 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.
Conference Call Information
The Company has scheduled a conference call at 8:30 a.m. Eastern Time on August 1, 2019 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,
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) our ability to maintain our
relationship with National Geographic (v) the Company's business
strategy and plans; (vi) unscheduled disruptions in our business
due to weather events, mechanical failures, or other events; (vii)
compliance with laws and regulations; (viii) compliance with the
financial and/or operating covenants in the Company's credit
agreements; (ix) adverse publicity regarding the cruise industry in
general; (x) loss of business due to competition; (xi) the result
of future financing efforts; (xii) the inability to meet revenue
and Adjusted EBITDA projections; (xiii) delays and costs overruns
with respect to the construction and delivery of newly constructed
vessels; and (xiv) 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 and per share data)
|
|
|
|
As of
June 30,
2019
|
|
|
As of
December 31, 2018
|
|
ASSETS
|
|
(unaudited)
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
78,746
|
|
|
$
|
113,396
|
|
Restricted
cash
|
|
|
33,305
|
|
|
|
8,755
|
|
Marine operating
supplies
|
|
|
5,086
|
|
|
|
5,165
|
|
Inventories
|
|
|
1,715
|
|
|
|
1,604
|
|
Prepaid expenses and
other current assets
|
|
|
31,297
|
|
|
|
21,263
|
|
Total current
assets
|
|
|
150,149
|
|
|
|
150,183
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
316,709
|
|
|
|
285,979
|
|
Goodwill
|
|
|
22,105
|
|
|
|
22,105
|
|
Intangibles,
net
|
|
|
7,185
|
|
|
|
7,975
|
|
Deferred tax
asset
|
|
|
1,319
|
|
|
|
-
|
|
Right-to-use lease
assets
|
|
|
5,808
|
|
|
|
-
|
|
Other long-term
assets
|
|
|
5,219
|
|
|
|
7,167
|
|
Total
assets
|
|
$
|
508,494
|
|
|
$
|
473,409
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Unearned passenger
revenues
|
|
$
|
145,089
|
|
|
$
|
123,489
|
|
Accounts payable and
accrued expenses
|
|
|
31,200
|
|
|
|
33,944
|
|
Lease liabilities -
current
|
|
|
947
|
|
|
|
-
|
|
Long-term debt -
current
|
|
|
2,000
|
|
|
|
2,000
|
|
Total current
liabilities
|
|
|
179,236
|
|
|
|
159,433
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
185,660
|
|
|
|
188,089
|
|
Deferred tax
liabilities
|
|
|
-
|
|
|
|
2,787
|
|
Lease
liabilities
|
|
|
5,046
|
|
|
|
-
|
|
Other long-term
liabilities
|
|
|
1,259
|
|
|
|
554
|
|
Total
liabilities
|
|
|
371,201
|
|
|
|
350,863
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REDEEMABLE
NONCONTROLLING INTEREST
|
|
|
6,771
|
|
|
|
6,502
|
|
|
|
|
|
|
|
|
|
|
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; 45,801,025 and
45,814,925 issued, 45,662,953 and
45,442,728 outstanding as of June 30, 2019 and
December 31, 2018,
respectively
|
|
|
5
|
|
|
|
5
|
|
Additional paid-in
capital
|
|
|
41,617
|
|
|
|
41,539
|
|
Retained
earnings
|
|
|
90,832
|
|
|
|
75,171
|
|
Accumulated other
comprehensive income
|
|
|
(1,932)
|
|
|
|
(671)
|
|
Total stockholders'
equity
|
|
|
130,522
|
|
|
|
116,044
|
|
Total liabilities,
stockholders' equity and redeemable noncontrolling
interest
|
|
$
|
508,494
|
|
|
$
|
473,409
|
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Operations
|
(In thousands, except
share and per share data)
|
(unaudited)
|
|
|
|
For the three
months ended
June 30,
|
|
|
For the six months
ended
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tour
revenues
|
|
$
|
76,658
|
|
|
$
|
69,473
|
|
|
$
|
166,311
|
|
|
$
|
151,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
tours
|
|
|
37,520
|
|
|
|
33,810
|
|
|
|
76,537
|
|
|
|
69,681
|
|
General and
administrative
|
|
|
16,268
|
|
|
|
15,879
|
|
|
|
32,350
|
|
|
|
30,929
|
|
Selling and
marketing
|
|
|
12,567
|
|
|
|
10,583
|
|
|
|
26,569
|
|
|
|
22,656
|
|
Depreciation and
amortization
|
|
|
6,182
|
|
|
|
4,994
|
|
|
|
12,370
|
|
|
|
10,038
|
|
Total operating
expenses
|
|
|
72,537
|
|
|
|
65,266
|
|
|
|
147,826
|
|
|
|
133,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
4,121
|
|
|
|
4,207
|
|
|
|
18,485
|
|
|
|
18,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(3,188)
|
|
|
|
(2,870)
|
|
|
|
(6,176)
|
|
|
|
(5,604)
|
|
Gain (loss) on foreign
currency
|
|
|
501
|
|
|
|
(1,141)
|
|
|
|
1,157
|
|
|
|
(1,592)
|
|
Other
expense
|
|
|
(30)
|
|
|
|
(128)
|
|
|
|
(49)
|
|
|
|
(120)
|
|
Total other
expense
|
|
|
(2,717)
|
|
|
|
(4,139)
|
|
|
|
(5,068)
|
|
|
|
(7,316)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
1,404
|
|
|
|
68
|
|
|
|
13,417
|
|
|
|
11,263
|
|
Income tax expense
(benefit)
|
|
|
553
|
|
|
|
227
|
|
|
|
(2,513)
|
|
|
|
503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
851
|
|
|
|
(159)
|
|
|
|
15,930
|
|
|
|
10,760
|
|
Net (loss) income
attributable to noncontrolling interest
|
|
|
(137)
|
|
|
|
(293)
|
|
|
|
269
|
|
|
|
(172)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
|
$
|
988
|
|
|
$
|
134
|
|
|
$
|
15,661
|
|
|
$
|
10,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
46,155,981
|
|
|
|
45,894,155
|
|
|
|
45,607,307
|
|
|
|
45,322,541
|
|
Diluted
|
|
|
49,485,004
|
|
|
|
46,442,611
|
|
|
|
48,281,002
|
|
|
|
45,594,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
available to common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.02
|
|
|
$
|
-
|
|
|
$
|
0.34
|
|
|
$
|
0.24
|
|
Diluted
|
|
$
|
0.02
|
|
|
$
|
-
|
|
|
$
|
0.32
|
|
|
$
|
0.24
|
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(unaudited)
|
|
|
|
For the six months
ended
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
15,930
|
|
|
$
|
10,760
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
12,370
|
|
|
|
10,038
|
|
Amortization of
National Geographic fee
|
|
|
1,454
|
|
|
|
1,454
|
|
Amortization of
deferred financing costs and other, net
|
|
|
911
|
|
|
|
1,045
|
|
Stock-based
compensation
|
|
|
1,754
|
|
|
|
1,985
|
|
Deferred income
taxes
|
|
|
(4,106)
|
|
|
|
152
|
|
(Gain) loss on foreign
currency
|
|
|
(1,157)
|
|
|
|
1,592
|
|
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
|
|
|
(32)
|
|
|
|
(39)
|
|
Prepaid expenses and
other current assets
|
|
|
(10,033)
|
|
|
|
(7,048)
|
|
Right-to-use lease
assets
|
|
|
(5,808)
|
|
|
|
-
|
|
Lease
liabilities
|
|
|
5,993
|
|
|
|
-
|
|
Unearned passenger
revenues
|
|
|
21,600
|
|
|
|
9,915
|
|
Other long-term
assets
|
|
|
(767)
|
|
|
|
(1,120)
|
|
Other long-term
liabilities
|
|
|
706
|
|
|
|
15
|
|
Accounts payable and
accrued expenses
|
|
|
(1,587)
|
|
|
|
(4,457)
|
|
Net cash provided by
operating activities
|
|
|
37,228
|
|
|
|
24,780
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(42,311)
|
|
|
|
(31,502)
|
|
Net cash used in
investing activities
|
|
|
(42,311)
|
|
|
|
(31,502)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
|
|
Proceeds from
long-term debt
|
|
|
-
|
|
|
|
200,000
|
|
Repayments of
long-term debt
|
|
|
(1,000)
|
|
|
|
(170,625)
|
|
Payment of deferred
financing costs
|
|
|
(2,340)
|
|
|
|
(6,486)
|
|
Repurchase under
stock-based compensation plans and related tax impacts
|
|
|
(1,653)
|
|
|
|
(4,457)
|
|
Repurchase of warrants
and common stock
|
|
|
(23)
|
|
|
|
(854)
|
|
Net cash (used in)
provided by financing activities
|
|
|
(5,016)
|
|
|
|
17,578
|
|
Effect of exchange
rate changes on cash
|
|
|
-
|
|
|
|
8
|
|
Net (decrease)
increase in cash, cash equivalents and restricted cash
|
|
|
(10,099)
|
|
|
|
10,864
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
|
122,150
|
|
|
|
103,500
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
112,051
|
|
|
$
|
114,364
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid during the
period:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
6,999
|
|
|
$
|
6,534
|
|
Income
taxes
|
|
$
|
564
|
|
|
$
|
776
|
|
Non-cash investing and
financing activities:
|
|
|
|
|
|
|
|
|
Additional paid-in
capital exercise proceeds of option shares
|
|
$
|
225
|
|
|
$
|
1,682
|
|
Additional paid-in
capital exchange proceeds used for option shares
|
|
$
|
(225)
|
|
|
$
|
(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
June 30,
|
|
|
For the six months
ended
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Net income
(loss)
|
|
$
|
851
|
|
|
$
|
(159)
|
|
|
$
|
15,930
|
|
|
$
|
10,760
|
|
Interest expense,
net
|
|
|
3,188
|
|
|
|
2,870
|
|
|
|
6,176
|
|
|
|
5,604
|
|
Income tax expense
(benefit)
|
|
|
553
|
|
|
|
227
|
|
|
|
(2,513)
|
|
|
|
503
|
|
Depreciation and
amortization
|
|
|
6,182
|
|
|
|
4,994
|
|
|
|
12,370
|
|
|
|
10,038
|
|
(Gain) loss on
foreign currency
|
|
|
(501)
|
|
|
|
1,141
|
|
|
|
(1,157)
|
|
|
|
1,592
|
|
Other expense,
net
|
|
|
30
|
|
|
|
128
|
|
|
|
49
|
|
|
|
120
|
|
Stock-based
compensation
|
|
|
1,001
|
|
|
|
1,119
|
|
|
|
1,754
|
|
|
|
1,985
|
|
National Geographic
fee amortization
|
|
|
727
|
|
|
|
727
|
|
|
|
1,454
|
|
|
|
1,454
|
|
Warrant exchange
fees
|
|
|
466
|
|
|
|
-
|
|
|
|
466
|
|
|
|
-
|
|
Executive severance
costs
|
|
|
-
|
|
|
|
287
|
|
|
|
-
|
|
|
|
287
|
|
Reorganization
costs
|
|
|
-
|
|
|
|
113
|
|
|
|
15
|
|
|
|
293
|
|
Debt refinancing
costs
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
|
|
997
|
|
Adjusted
EBITDA
|
|
$
|
12,497
|
|
|
$
|
11,450
|
|
|
$
|
34,544
|
|
|
$
|
33,632
|
|
Reconciliation of
Operating Income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
June 30,
|
|
|
For the six months
ended
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Operating
income
|
|
$
|
5,302
|
|
|
$
|
5,107
|
|
|
$
|
18,943
|
|
|
$
|
18,547
|
|
Depreciation and
amortization
|
|
|
5,774
|
|
|
|
4,626
|
|
|
|
11,568
|
|
|
|
9,309
|
|
Stock-based
compensation
|
|
|
1,001
|
|
|
|
1,119
|
|
|
|
1,754
|
|
|
|
1,985
|
|
National Geographic
fee amortization
|
|
|
727
|
|
|
|
727
|
|
|
|
1,454
|
|
|
|
1,454
|
|
Warrant exchange
fees
|
|
|
466
|
|
|
|
-
|
|
|
|
466
|
|
|
|
-
|
|
Executive severance
costs
|
|
|
-
|
|
|
|
287
|
|
|
|
-
|
|
|
|
287
|
|
Reorganization
costs
|
|
|
-
|
|
|
|
113
|
|
|
|
15
|
|
|
|
293
|
|
Debt refinancing
costs
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
|
|
997
|
|
Adjusted
EBITDA
|
|
$
|
13,270
|
|
|
$
|
11,982
|
|
|
$
|
34,200
|
|
|
$
|
32,871
|
|
Natural Habitat
Segment
|
|
|
|
|
For the three
months ended
June 30,
|
|
|
For the six months
ended
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Operating (loss)
income
|
|
$
|
(1,181)
|
|
|
$
|
(900)
|
|
|
$
|
(458)
|
|
|
$
|
32
|
|
Depreciation and
amortization
|
|
|
408
|
|
|
|
368
|
|
|
|
802
|
|
|
|
729
|
|
Adjusted
EBITDA
|
|
$
|
(773)
|
|
|
$
|
(532)
|
|
|
$
|
344
|
|
|
$
|
761
|
|
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 six months
ended
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
Net cash provided by
operating activities
|
|
$
|
37,228
|
|
|
$
|
24,780
|
|
Less: purchases of
property and equipment
|
|
|
(42,311)
|
|
|
|
(31,502)
|
|
Free Cash
Flow
|
|
$
|
(5,083)
|
|
|
$
|
(6,722)
|
|
|
|
For the three
months ended
June 30,
|
|
|
For the six months
ended
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Available Guest
Nights
|
|
|
53,983
|
|
|
|
50,917
|
|
|
|
112,652
|
|
|
|
104,834
|
|
Guest Nights
Sold
|
|
|
48,216
|
|
|
|
45,786
|
|
|
|
101,829
|
|
|
|
94,721
|
|
Occupancy
|
|
|
89
|
%
|
|
|
90
|
%
|
|
|
90
|
%
|
|
|
90
|
%
|
Maximum
Guests
|
|
|
6,829
|
|
|
|
6,242
|
|
|
|
14,142
|
|
|
|
13,047
|
|
Number of
Guests
|
|
|
6,269
|
|
|
|
5,684
|
|
|
|
12,801
|
|
|
|
11,767
|
|
Voyages
|
|
|
87
|
|
|
|
81
|
|
|
|
180
|
|
|
|
176
|
|
Calculation of
Gross Yield and Net Yield Lindblad Segment
|
|
For the three
months ended
June 30,
|
|
|
For the six months
ended
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Guest ticket
revenues
|
|
$
|
58,416
|
|
|
$
|
53,832
|
|
|
$
|
125,526
|
|
|
$
|
116,512
|
|
Other tour
revenue
|
|
|
6,514
|
|
|
|
5,724
|
|
|
|
15,442
|
|
|
|
13,497
|
|
Tour
Revenues
|
|
|
64,930
|
|
|
|
59,556
|
|
|
|
140,968
|
|
|
|
130,009
|
|
Less:
Commissions
|
|
|
(4,908)
|
|
|
|
(4,369)
|
|
|
|
(10,759)
|
|
|
|
(9,923)
|
|
Less: Other tour
expenses
|
|
|
(4,418)
|
|
|
|
(4,161)
|
|
|
|
(10,104)
|
|
|
|
(8,279)
|
|
Net
Revenue
|
|
$
|
55,604
|
|
|
$
|
51,026
|
|
|
$
|
120,105
|
|
|
$
|
111,807
|
|
Available Guest
Nights
|
|
|
53,983
|
|
|
|
50,917
|
|
|
|
112,652
|
|
|
|
104,834
|
|
Gross
Yield
|
|
$
|
1,203
|
|
|
$
|
1,170
|
|
|
$
|
1,251
|
|
|
$
|
1,240
|
|
Net Yield
|
|
|
1,030
|
|
|
|
1,002
|
|
|
|
1,066
|
|
|
|
1,067
|
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Supplemental
Financial Schedules
|
(unaudited)
|
|
Calculation of
Gross Cruise Cost and Net Cruise Cost
|
|
|
|
|
|
|
Lindblad
Segment
|
|
|
|
|
|
|
(In thousands, except
for Available Guest Nights, Gross and Net
Cruise Cost per Avail. Guest Night)
|
|
For the three
months ended
June 30,
|
|
|
For the six months
ended
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Cost of
tours
|
|
$
|
30,118
|
|
|
$
|
27,510
|
|
|
$
|
61,439
|
|
|
$
|
56,190
|
|
Plus: Selling and
marketing
|
|
|
11,321
|
|
|
|
9,683
|
|
|
|
23,962
|
|
|
|
20,945
|
|
Plus: General and
administrative
|
|
|
12,415
|
|
|
|
12,630
|
|
|
|
25,054
|
|
|
|
25,018
|
|
Gross Cruise
Cost
|
|
|
53,854
|
|
|
|
49,823
|
|
|
|
110,455
|
|
|
|
102,153
|
|
Less:
Commissions
|
|
|
(4,908)
|
|
|
|
(4,369)
|
|
|
|
(10,759)
|
|
|
|
(9,923)
|
|
Less: Other tour
expenses
|
|
|
(4,418)
|
|
|
|
(4,161)
|
|
|
|
(10,104)
|
|
|
|
(8,279)
|
|
Net Cruise
Cost
|
|
|
44,528
|
|
|
|
41,293
|
|
|
|
89,592
|
|
|
|
83,951
|
|
Less: Fuel
Expense
|
|
|
(2,459)
|
|
|
|
(2,599)
|
|
|
|
(5,146)
|
|
|
|
(4,709)
|
|
Net Cruise Cost
Excluding Fuel
|
|
|
42,069
|
|
|
|
38,694
|
|
|
|
84,446
|
|
|
|
79,242
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
(1,001)
|
|
|
|
(1,119)
|
|
|
|
(1,754)
|
|
|
|
(1,985)
|
|
National Geographic
fee amortization
|
|
|
(727)
|
|
|
|
(727)
|
|
|
|
(1,454)
|
|
|
|
(1,454)
|
|
Warrant exchange
fees
|
|
|
(466)
|
|
|
|
-
|
|
|
|
(466)
|
|
|
|
-
|
|
Executive severance
costs
|
|
|
-
|
|
|
|
(287)
|
|
|
|
-
|
|
|
|
(287)
|
|
Reorganization
costs
|
|
|
-
|
|
|
|
(113)
|
|
|
|
(15)
|
|
|
|
(293)
|
|
Debt refinancing
costs
|
|
|
-
|
|
|
|
(3)
|
|
|
|
-
|
|
|
|
(997)
|
|
Adjusted Net
Cruise Cost Excluding Fuel
|
|
$
|
39,875
|
|
|
$
|
36,445
|
|
|
$
|
80,757
|
|
|
$
|
74,226
|
|
Adjusted Net
Cruise Cost
|
|
$
|
42,334
|
|
|
$
|
39,044
|
|
|
$
|
85,903
|
|
|
$
|
78,935
|
|
Available Guest
Nights
|
|
|
53,983
|
|
|
|
50,917
|
|
|
|
112,652
|
|
|
|
104,834
|
|
Gross Cruise Cost per
Available Guest Night
|
|
$
|
998
|
|
|
$
|
979
|
|
|
$
|
980
|
|
|
$
|
974
|
|
Net Cruise Cost per
Available Guest Night
|
|
|
825
|
|
|
|
811
|
|
|
|
795
|
|
|
|
801
|
|
Net Cruise Cost
Excluding Fuel per Available Guest Night
|
|
|
779
|
|
|
|
760
|
|
|
|
750
|
|
|
|
756
|
|
Adjusted Net Cruise
Cost Excluding Fuel per Available Guest Night
|
|
|
739
|
|
|
|
716
|
|
|
|
717
|
|
|
|
708
|
|
Adjusted Net
Cruise Cost per Available Guest Night
|
|
|
784
|
|
|
|
767
|
|
|
|
763
|
|
|
|
753
|
|
Reconciliation of
2019 Adjusted EBITDA guidance:
|
|
(in
millions)
|
|
Full Year
2019
|
|
Income before income
taxes
|
|
$
|
22
|
|
|
|
to
|
|
|
$
|
25
|
|
Depreciation and
amortization
|
|
|
26
|
|
|
|
to
|
|
|
|
25
|
|
Interest expense,
net
|
|
|
12
|
|
|
|
to
|
|
|
|
12
|
|
Stock-based
compensation
|
|
|
4
|
|
|
|
to
|
|
|
|
4
|
|
National Geographic
fee amortization
|
|
|
3
|
|
|
|
to
|
|
|
|
3
|
|
Other
|
|
|
-
|
|
|
|
to
|
|
|
|
1
|
|
Adjusted
EBITDA
|
|
$
|
67
|
|
|
|
to
|
|
|
$
|
70
|
|
A reconciliation of net income to Adjusted EBITDA is not
provided because the Company cannot estimate or predict with
reasonable certainty certain discrete tax items, which could
significantly impact that financial measure.
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, the National Geographic fee amortization, debt
refinancing costs and certain other items. We believe 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. We
believe Adjusted EBITDA helps provide a more complete understanding
of the underlying operating results and trends and an enhanced
overall understanding of our 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. Our 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 certain other items.
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. We also record the number of guest nights
available on our limited land programs in this definition.
Gross Cruise Cost represents the sum of cost of
tours plus, selling and marketing expenses, and general and
administrative expenses.
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 us 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.