NEW YORK, Oct. 30, 2019 /PRNewswire/ --
Third Quarter 2019 Highlights:
- Tour revenues increased 16% to $101.0
million
- Net loss available to common stockholders was $0.5 million, including a $2.7 million non-cash deemed dividend related to
the warrant exchange
- Adjusted EBITDA increased 41% to $24.1
million
- Lindblad segment Net Yield increased 7% to $1,054 and Occupancy increased to 94%
- Completed exchange offer and redeemed all outstanding
warrants
Lindblad Expeditions Holdings, Inc. (NASDAQ: LIND; the "Company"
or "Lindblad"), a global provider of expedition cruises and
adventure travel experiences, today reported financial results for
the quarter ended September 30,
2019.
Sven-Olof Lindblad, President and
Chief Executive Officer, said, "Lindblad delivered another quarter
of strong financial growth and sustained operating momentum this
past quarter as the strategic investments we have made to expand
our capacity are being met by the robust demand for high quality
and immersive adventure travel. Over the past two years
we have dramatically increased the available berths across our
fleet and, as we have added inventory, we have also been able
to grow Occupancy and Net Yields. At the same time, bookings
for future travel have remained strong for both our existing ships,
as well as for our two new state of the art polar builds, the
National Geographic Endurance, scheduled for delivery in
2020, and the recently named National Geographic Resolution,
scheduled for delivery in 2021. With continued demand from
loyal past guests and a rapidly growing population of new travelers
looking for unique expedition experiences with a proven operator,
we are well positioned to create additional shareholder value in
the years ahead."
THIRD QUARTER RESULTS
Tour Revenues
Third quarter tour revenues of $101.0
million increased $13.7
million, or 16%, as compared to the same period in 2018. The
increase was driven by growth of $12.1 million at the Lindblad segment and
$1.7 million at Natural
Habitat.
Lindblad segment tour revenues of $76.6
million increased $12.1
million, or 19%, compared to the third quarter a year ago
primarily due to a 14% 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 7% increase in Net Yield to $1,054 due primarily to higher pricing and
changes in itineraries, as well as an increase in Occupancy to
94%.
Natural Habitat revenues of $24.4
million increased $1.7
million, or 7%, compared to the third quarter 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 third
quarter was $0.5 million,
$0.01 per diluted share, as compared
with net income available to common stockholders of $5.1 million, $0.11
per diluted share, in the third quarter of 2018. The
$5.6 million decrease primarily
reflects improved operating results that were more
than offset by a $4.7 million
increase in income tax expense, a $2.7 million non-cash deemed
dividend related to completing the warrant exchange, a $2.3
million loss on foreign currency and 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
Third quarter Adjusted EBITDA of $24.1 million increased $7.0 million, or 41%, as compared to the same
period in 2018. The increase was driven by growth of $5.9 million at the Lindblad segment and
$1.1 million at Natural
Habitat.
Lindblad segment Adjusted EBITDA of $20.6
million increased $5.9
million, or 40%, as compared to the third quarter a year ago
as the increased tour revenues were partially offset by operating
costs on the National Geographic Venture. The third quarter
also included increased costs due to higher marketing spend to
drive long-term growth initiatives, higher commission expense
related to the revenue growth and increased personnel costs
partially offset by lower value-added tax expense.
Natural Habitat Adjusted EBITDA of $3.5 million increased $1.1 million, or 43%, as compared to the third
quarter a year ago as the revenue growth was partially 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 September 30,
|
|
|
For the nine
months ended September 30,
|
|
|
2019
|
|
|
2018
|
|
|
Change
|
|
|
%
|
|
|
2019
|
|
|
2018
|
|
|
Change
|
|
|
%
|
Tour
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
76,581
|
|
|
$
|
64,507
|
|
|
$
|
12,074
|
|
|
19%
|
|
|
$
|
217,549
|
|
|
$
|
194,516
|
|
|
$
|
23,033
|
|
|
12%
|
Natural
Habitat
|
|
|
24,402
|
|
|
|
22,735
|
|
|
|
1,667
|
|
|
7%
|
|
|
|
49,745
|
|
|
|
44,609
|
|
|
|
5,136
|
|
|
12%
|
Total tour
revenues
|
|
$
|
100,983
|
|
|
$
|
87,242
|
|
|
$
|
13,741
|
|
|
16%
|
|
|
$
|
267,294
|
|
|
$
|
239,125
|
|
|
$
|
28,169
|
|
|
12%
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
12,570
|
|
|
$
|
8,209
|
|
|
$
|
4,361
|
|
|
53%
|
|
|
$
|
31,514
|
|
|
$
|
26,755
|
|
|
$
|
4,759
|
|
|
18%
|
Natural
Habitat
|
|
|
3,089
|
|
|
|
2,072
|
|
|
|
1,017
|
|
|
49%
|
|
|
|
2,631
|
|
|
|
2,105
|
|
|
|
526
|
|
|
25%
|
Total operating
income
|
|
$
|
15,659
|
|
|
$
|
10,281
|
|
|
$
|
5,378
|
|
|
52%
|
|
|
$
|
34,145
|
|
|
$
|
28,860
|
|
|
$
|
5,285
|
|
|
18%
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
20,600
|
|
|
$
|
14,668
|
|
|
$
|
5,932
|
|
|
40%
|
|
|
$
|
54,802
|
|
|
$
|
47,538
|
|
|
$
|
7,264
|
|
|
15%
|
Natural
Habitat
|
|
|
3,510
|
|
|
|
2,451
|
|
|
|
1,059
|
|
|
43%
|
|
|
|
3,854
|
|
|
|
3,213
|
|
|
|
641
|
|
|
20%
|
Total adjusted
EBITDA
|
|
$
|
24,110
|
|
|
$
|
17,119
|
|
|
$
|
6,991
|
|
|
41%
|
|
|
$
|
58,656
|
|
|
$
|
50,751
|
|
|
$
|
7,905
|
|
|
16%
|
Liquidity
The Company's cash, cash equivalents and restricted cash were
$112.1 million as of September 30, 2019, as compared with $122.2 million as of December 31, 2018. The decrease primarily
reflects purchases of property and equipment of $76.7 million, mostly related to the construction
of two new vessels, partially offset by $41.6 million in net cash provided by operating
activities due to the strong operating performance. The
current year also includes $25.1
million in net cash provided by financing activities
primarily due to $30.5 million
borrowings under our second export credit agreement in
conjunction with our second installment payment on the National
Geographic Resolution. The loan bears interest at a
floating interest rate equal to three-month LIBOR plus a margin of
3.00% per annum.
Free cash flow use was $35.2
million for the nine months ended September 30, 2019 as compared with a use of
$6.3 million in the same period of
2018 primarily due to 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.
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 the first quarter of
2020 and, in February 2019, we signed
a contract for her sister ship, the National Geographic
Resolution, scheduled for delivery in the fourth quarter
of 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 August 1, 2019 the Company
completed 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 Company
issued 3,824,959 shares of common stock under the Exchange Offer
with the remaining warrants converted into 45,981 shares of common
stock. Following the Exchange Offer and Consent Solicitation,
no warrants remain outstanding. As the fair value of the
warrants exchanged in the Warrant Exchange offer was less than the
fair value of the common stock issued, the Company recorded a
non-cash deemed dividend of approximately $2.7 million for the incremental fair value
provided to the warrant holders.
The Company currently has a $35
million stock repurchase plan in place. As of October 29, 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
October 29, 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 $341 -
$346 million (10 - 11% growth)
- Adjusted EBITDA of $67 -
$70 million (22 - 28% growth)
As of October 29, 2019, Lindblad
segment bookings for travel during 2019 have increased 11% as
compared with bookings for 2018 as of the same date a year ago.
Additionally, the Lindblad segment had 100% of revised full
year 2019 projected guest ticket revenues on the books versus
100% 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 October 30, 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
September 30,
2019
|
|
|
As of December
31, 2018
|
|
ASSETS
|
|
(unaudited)
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
104,135
|
|
|
$
|
113,396
|
|
Restricted
cash
|
|
|
7,995
|
|
|
|
8,755
|
|
Marine operating
supplies
|
|
|
5,479
|
|
|
|
5,165
|
|
Inventories
|
|
|
1,910
|
|
|
|
1,604
|
|
Prepaid expenses and
other current assets
|
|
|
24,044
|
|
|
|
21,263
|
|
Total current
assets
|
|
|
143,563
|
|
|
|
150,183
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
345,280
|
|
|
|
285,979
|
|
Goodwill
|
|
|
22,105
|
|
|
|
22,105
|
|
Intangibles,
net
|
|
|
6,791
|
|
|
|
7,975
|
|
Right-to-use lease
assets
|
|
|
6,357
|
|
|
|
-
|
|
Other long-term
assets
|
|
|
5,517
|
|
|
|
7,167
|
|
Total
assets
|
|
$
|
529,613
|
|
|
$
|
473,409
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Unearned passenger
revenues
|
|
$
|
124,605
|
|
|
$
|
123,489
|
|
Accounts payable and
accrued expenses
|
|
|
32,914
|
|
|
|
33,944
|
|
Lease liabilities -
current
|
|
|
1,302
|
|
|
|
-
|
|
Long-term debt -
current
|
|
|
2,000
|
|
|
|
2,000
|
|
Total current
liabilities
|
|
|
160,821
|
|
|
|
159,433
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
216,117
|
|
|
|
188,089
|
|
Deferred tax
liabilities
|
|
|
6,964
|
|
|
|
2,787
|
|
Lease
liabilities
|
|
|
5,272
|
|
|
|
-
|
|
Other long-term
liabilities
|
|
|
5,083
|
|
|
|
554
|
|
Total
liabilities
|
|
|
394,257
|
|
|
|
350,863
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REDEEMABLE
NONCONTROLLING INTEREST
|
|
|
7,336
|
|
|
|
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; 49,716,067 and
45,814,925 issued, 49,625,043 and 45,442,728 outstanding as of
September 30, 2019 and
December 31, 2018, respectively
|
|
|
5
|
|
|
|
5
|
|
Additional paid-in
capital
|
|
|
45,377
|
|
|
|
41,539
|
|
Retained
earnings
|
|
|
90,339
|
|
|
|
75,171
|
|
Accumulated other
comprehensive income
|
|
|
(7,701)
|
|
|
|
(671)
|
|
Total stockholders'
equity
|
|
|
128,020
|
|
|
|
116,044
|
|
Total liabilities,
stockholders' equity and redeemable noncontrolling
interest
|
|
$
|
529,613
|
|
|
$
|
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 September 30,
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tour
revenues
|
|
$
|
100,983
|
|
|
$
|
87,242
|
|
|
$
|
267,294
|
|
|
$
|
239,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
tours
|
|
|
48,294
|
|
|
|
44,964
|
|
|
|
124,831
|
|
|
|
114,645
|
|
General and
administrative
|
|
|
15,266
|
|
|
|
14,718
|
|
|
|
47,615
|
|
|
|
45,647
|
|
Selling and
marketing
|
|
|
15,531
|
|
|
|
12,255
|
|
|
|
42,100
|
|
|
|
34,911
|
|
Depreciation and
amortization
|
|
|
6,233
|
|
|
|
5,024
|
|
|
|
18,603
|
|
|
|
15,062
|
|
Total operating
expenses
|
|
|
85,324
|
|
|
|
76,961
|
|
|
|
233,149
|
|
|
|
210,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
15,659
|
|
|
|
10,281
|
|
|
|
34,145
|
|
|
|
28,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(3,214)
|
|
|
|
(2,409)
|
|
|
|
(9,391)
|
|
|
|
(8,013)
|
|
(Loss) gain on foreign
currency
|
|
|
(2,338)
|
|
|
|
163
|
|
|
|
(1,181)
|
|
|
|
(1,430)
|
|
Other (expense)
income
|
|
|
(30)
|
|
|
|
1
|
|
|
|
(79)
|
|
|
|
(118)
|
|
Total other
expense
|
|
|
(5,582)
|
|
|
|
(2,245)
|
|
|
|
(10,651)
|
|
|
|
(9,561)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
10,077
|
|
|
|
8,036
|
|
|
|
23,494
|
|
|
|
19,299
|
|
Income tax
expense
|
|
|
7,351
|
|
|
|
2,690
|
|
|
|
4,838
|
|
|
|
3,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
2,726
|
|
|
|
5,346
|
|
|
|
18,656
|
|
|
|
16,105
|
|
Net income
attributable to noncontrolling interest
|
|
|
565
|
|
|
|
279
|
|
|
|
834
|
|
|
|
107
|
|
Net income
attributable to Lindblad Expeditions Holdings, Inc
|
|
|
2,161
|
|
|
|
5,067
|
|
|
|
17,822
|
|
|
|
15,998
|
|
Non-cash deemed
dividend to warrant holders
|
|
|
2,654
|
|
|
|
-
|
|
|
|
2,654
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
available to common stockholders
|
|
$
|
(493)
|
|
|
$
|
5,067
|
|
|
$
|
15,168
|
|
|
$
|
15,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
48,863,506
|
|
|
|
45,423,127
|
|
|
|
46,704,634
|
|
|
|
45,356,438
|
|
Diluted
|
|
|
48,863,506
|
|
|
|
47,690,395
|
|
|
|
49,091,370
|
|
|
|
45,963,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share available to common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.01)
|
|
|
$
|
0.11
|
|
|
$
|
0.32
|
|
|
$
|
0.35
|
|
Diluted
|
|
$
|
(0.01)
|
|
|
$
|
0.11
|
|
|
$
|
0.31
|
|
|
$
|
0.35
|
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(unaudited)
|
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2019
|
|
|
2018
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
18,656
|
|
|
$
|
16,105
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
18,603
|
|
|
|
15,062
|
|
Amortization of
National Geographic fee
|
|
|
2,181
|
|
|
|
2,181
|
|
Amortization of
deferred financing costs and other, net
|
|
|
1,392
|
|
|
|
1,477
|
|
Stock-based
compensation
|
|
|
2,671
|
|
|
|
3,256
|
|
Deferred income
taxes
|
|
|
4,177
|
|
|
|
2,653
|
|
Loss on foreign
currency
|
|
|
1,181
|
|
|
|
1,430
|
|
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
|
|
|
(620)
|
|
|
|
169
|
|
Prepaid expenses and
other current assets
|
|
|
(2,780)
|
|
|
|
(1,806)
|
|
Right-to-use lease
assets
|
|
|
(6,357)
|
|
|
|
-
|
|
Lease
liabilities
|
|
|
6,574
|
|
|
|
-
|
|
Unearned passenger
revenues
|
|
|
1,116
|
|
|
|
449
|
|
Other long-term
assets
|
|
|
(7,561)
|
|
|
|
(1,981)
|
|
Other long-term
liabilities
|
|
|
4,530
|
|
|
|
22
|
|
Accounts payable and
accrued expenses
|
|
|
(2,213)
|
|
|
|
(247)
|
|
Net cash provided by
operating activities
|
|
|
41,550
|
|
|
|
39,258
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(76,720)
|
|
|
|
(45,510)
|
|
Net cash used in
investing activities
|
|
|
(76,720)
|
|
|
|
(45,510)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
|
|
Proceeds from
long-term debt
|
|
|
30,476
|
|
|
|
200,000
|
|
Repayments of
long-term debt
|
|
|
(1,500)
|
|
|
|
(171,125)
|
|
Payment of deferred
financing costs
|
|
|
(2,340)
|
|
|
|
(6,486)
|
|
Repurchase under
stock-based compensation plans and related tax impacts
|
|
|
(1,778)
|
|
|
|
(4,509)
|
|
Warrants
exercised
|
|
|
314
|
|
|
|
-
|
|
Repurchase of warrants
and common stock
|
|
|
(23)
|
|
|
|
(854)
|
|
Net cash provided by
financing activities
|
|
|
25,149
|
|
|
|
17,026
|
|
Effect of exchange
rate changes on cash
|
|
|
-
|
|
|
|
7
|
|
Net (decrease)
increase in cash, cash equivalents and restricted cash
|
|
|
(10,021)
|
|
|
|
10,781
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
|
122,151
|
|
|
|
103,500
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
112,130
|
|
|
$
|
114,281
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid during the
period:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
10,651
|
|
|
$
|
9,952
|
|
Income
taxes
|
|
$
|
1,893
|
|
|
$
|
468
|
|
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)
|
|
Non-cash deemed
dividend to warrant holders
|
|
$
|
2,654
|
|
|
$
|
-
|
|
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 September 30,
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Net income
|
|
$
|
2,726
|
|
|
$
|
5,346
|
|
|
$
|
18,656
|
|
|
$
|
16,105
|
|
Interest expense,
net
|
|
|
3,214
|
|
|
|
2,409
|
|
|
|
9,391
|
|
|
|
8,013
|
|
Income tax
expense
|
|
|
7,351
|
|
|
|
2,690
|
|
|
|
4,838
|
|
|
|
3,194
|
|
Depreciation and
amortization
|
|
|
6,233
|
|
|
|
5,024
|
|
|
|
18,603
|
|
|
|
15,062
|
|
Loss (gain) on
foreign currency
|
|
|
2,338
|
|
|
|
(163)
|
|
|
|
1,181
|
|
|
|
1,430
|
|
Other expense
(income)
|
|
|
30
|
|
|
|
(1)
|
|
|
|
79
|
|
|
|
118
|
|
Stock-based
compensation
|
|
|
917
|
|
|
|
1,271
|
|
|
|
2,671
|
|
|
|
3,256
|
|
National Geographic
fee amortization
|
|
|
727
|
|
|
|
727
|
|
|
|
2,181
|
|
|
|
2,181
|
|
Warrant exchange
fees
|
|
|
504
|
|
|
|
-
|
|
|
|
970
|
|
|
|
-
|
|
Executive severance
costs
|
|
|
-
|
|
|
|
(215)
|
|
|
|
-
|
|
|
|
71
|
|
Reorganization
costs
|
|
|
70
|
|
|
|
31
|
|
|
|
86
|
|
|
|
324
|
|
Debt refinancing
costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
997
|
|
Adjusted
EBITDA
|
|
$
|
24,110
|
|
|
$
|
17,119
|
|
|
$
|
58,656
|
|
|
$
|
50,751
|
|
|
Reconciliation of
Operating Income to Adjusted EBITDA
Lindblad
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
ended September 30,
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Operating
income
|
|
$
|
12,570
|
|
|
$
|
8,209
|
|
|
$
|
31,514
|
|
|
$
|
26,755
|
|
Depreciation and
amortization
|
|
|
5,812
|
|
|
|
4,645
|
|
|
|
17,380
|
|
|
|
13,954
|
|
Stock-based
compensation
|
|
|
917
|
|
|
|
1,271
|
|
|
|
2,671
|
|
|
|
3,256
|
|
National Geographic
fee amortization
|
|
|
727
|
|
|
|
727
|
|
|
|
2,181
|
|
|
|
2,181
|
|
Warrant exchange
fees
|
|
|
504
|
|
|
|
-
|
|
|
|
970
|
|
|
|
-
|
|
Executive severance
costs
|
|
|
-
|
|
|
|
(215)
|
|
|
|
-
|
|
|
|
71
|
|
Reorganization
costs
|
|
|
70
|
|
|
|
31
|
|
|
|
86
|
|
|
|
324
|
|
Debt refinancing
costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
997
|
|
Adjusted
EBITDA
|
|
$
|
20,600
|
|
|
$
|
14,668
|
|
|
$
|
54,802
|
|
|
$
|
47,538
|
|
|
Natural Habitat
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
ended September 30,
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Operating
income
|
|
$
|
3,089
|
|
|
$
|
2,072
|
|
|
$
|
2,631
|
|
|
$
|
2,105
|
|
Depreciation and
amortization
|
|
|
421
|
|
|
|
379
|
|
|
|
1223
|
|
|
|
1108
|
|
Adjusted
EBITDA
|
|
$
|
3,510
|
|
|
$
|
2,451
|
|
|
$
|
3,854
|
|
|
$
|
3,213
|
|
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 nine
months ended
September 30,
|
|
|
|
2019
|
|
|
2018
|
|
Net cash provided by
operating activities
|
|
$
|
41,550
|
|
|
$
|
39,258
|
|
Less: purchases of
property and equipment
|
|
|
(76,720)
|
|
|
|
(45,510)
|
|
Free Cash
Flow
|
|
$
|
(35,170)
|
|
|
$
|
(6,252)
|
|
|
|
For the three
months
ended
September 30,
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Available Guest
Nights
|
|
|
63,386
|
|
|
|
55,741
|
|
|
|
176,038
|
|
|
|
160,575
|
|
Guest Nights
Sold
|
|
|
59,682
|
|
|
|
50,993
|
|
|
|
161,511
|
|
|
|
145,714
|
|
Occupancy
|
|
|
94
|
%
|
|
|
92
|
%
|
|
|
92
|
%
|
|
|
91
|
%
|
Maximum
Guests
|
|
|
7,721
|
|
|
|
7,137
|
|
|
|
21,863
|
|
|
|
20,388
|
|
Number of
Guests
|
|
|
7,294
|
|
|
|
6,582
|
|
|
|
20,095
|
|
|
|
18,553
|
|
Voyages
|
|
|
98
|
|
|
|
93
|
|
|
|
278
|
|
|
|
269
|
|
|
Calculation of
Gross Yield and Net Yield
Lindblad Segment
|
|
For the three
months
ended September 30,
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Guest ticket
revenues
|
|
$
|
70,319
|
|
|
$
|
58,187
|
|
|
$
|
195,845
|
|
|
$
|
174,699
|
|
Other tour
revenue
|
|
|
6,262
|
|
|
|
6,320
|
|
|
|
21,704
|
|
|
|
19,817
|
|
Tour
Revenues
|
|
|
76,581
|
|
|
|
64,507
|
|
|
|
217,549
|
|
|
|
194,516
|
|
Less:
Commissions
|
|
|
(5,716)
|
|
|
|
(5,055)
|
|
|
|
(16,475)
|
|
|
|
(14,977)
|
|
Less: Other tour
expenses
|
|
|
(4,051)
|
|
|
|
(4,673)
|
|
|
|
(14,155)
|
|
|
|
(12,952)
|
|
Net
Revenue
|
|
$
|
66,814
|
|
|
$
|
54,779
|
|
|
$
|
186,919
|
|
|
$
|
166,587
|
|
Available Guest
Nights
|
|
|
63,386
|
|
|
|
55,741
|
|
|
|
176,038
|
|
|
|
160,575
|
|
Gross
Yield
|
|
$
|
1,208
|
|
|
$
|
1,157
|
|
|
$
|
1,236
|
|
|
$
|
1,211
|
|
Net Yield
|
|
|
1,054
|
|
|
|
983
|
|
|
|
1,062
|
|
|
|
1,037
|
|
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 September 30,
|
|
|
For the nine
months ended
September 30,
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Cost of
tours
|
|
$
|
33,031
|
|
|
$
|
29,647
|
|
|
$
|
94,470
|
|
|
$
|
85,837
|
|
Plus: Selling and
marketing
|
|
|
13,804
|
|
|
|
10,754
|
|
|
|
37,767
|
|
|
|
31,699
|
|
Plus: General and
administrative
|
|
|
11,364
|
|
|
|
11,252
|
|
|
|
36,416
|
|
|
|
36,271
|
|
Gross Cruise
Cost
|
|
|
58,199
|
|
|
|
51,653
|
|
|
|
168,653
|
|
|
|
153,807
|
|
Less:
Commissions
|
|
|
(5,716)
|
|
|
|
(5,055)
|
|
|
|
(16,475)
|
|
|
|
(14,977)
|
|
Less: Other tour
expenses
|
|
|
(4,051)
|
|
|
|
(4,673)
|
|
|
|
(14,155)
|
|
|
|
(12,952)
|
|
Net Cruise
Cost
|
|
|
48,432
|
|
|
|
41,925
|
|
|
|
138,023
|
|
|
|
125,878
|
|
Less: Fuel
Expense
|
|
|
(2,251)
|
|
|
|
(2,168)
|
|
|
|
(7,397)
|
|
|
|
(6,876)
|
|
Net Cruise Cost
Excluding Fuel
|
|
|
46,181
|
|
|
|
39,757
|
|
|
|
130,626
|
|
|
|
119,002
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
(917)
|
|
|
|
(1,271)
|
|
|
|
(2,671)
|
|
|
|
(3,256)
|
|
National Geographic
fee amortization
|
|
|
(727)
|
|
|
|
(727)
|
|
|
|
(2,181)
|
|
|
|
(2,181)
|
|
Warrant exchange
fees
|
|
|
(504)
|
|
|
|
-
|
|
|
|
(970)
|
|
|
|
-
|
|
Executive severance
costs
|
|
|
-
|
|
|
|
215
|
|
|
|
-
|
|
|
|
(71)
|
|
Reorganization
costs
|
|
|
(70)
|
|
|
|
(31)
|
|
|
|
(86)
|
|
|
|
(324)
|
|
Debt refinancing
costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(997)
|
|
Adjusted Net
Cruise Cost Excluding Fuel
|
|
$
|
43,963
|
|
|
$
|
37,943
|
|
|
$
|
124,718
|
|
|
$
|
112,173
|
|
Adjusted Net
Cruise Cost
|
|
$
|
46,214
|
|
|
$
|
40,111
|
|
|
$
|
132,115
|
|
|
$
|
119,049
|
|
Available Guest
Nights
|
|
|
63,386
|
|
|
|
55,741
|
|
|
|
176,038
|
|
|
|
160,575
|
|
Gross Cruise Cost per
Available Guest Night
|
|
$
|
918
|
|
|
$
|
927
|
|
|
$
|
958
|
|
|
$
|
958
|
|
Net Cruise Cost per
Available Guest Night
|
|
|
764
|
|
|
|
752
|
|
|
|
784
|
|
|
|
784
|
|
Net Cruise Cost
Excluding Fuel per Available Guest Night
|
|
|
729
|
|
|
|
713
|
|
|
|
742
|
|
|
|
741
|
|
Adjusted Net Cruise
Cost Excluding Fuel per Available Guest Night
|
|
|
694
|
|
|
|
681
|
|
|
|
708
|
|
|
|
699
|
|
Adjusted Net
Cruise Cost per Available Guest Night
|
|
|
729
|
|
|
|
720
|
|
|
|
750
|
|
|
|
741
|
|
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.
View original
content:http://www.prnewswire.com/news-releases/lindblad-expeditions-holdings-inc-reports-2019-third-quarter-financial-results-300947780.html
SOURCE Lindblad Expeditions Holdings, Inc.