Third Quarter 2022 Highlights:
- Total revenue of $144.8 million
increased $80.3 million versus 2021
and $43.8 million compared with the
third quarter of 2019
- Net loss available to stockholders improved $15.9 million to $9.8
million versus the third quarter of 2021
- Adjusted EBITDA of $18.6 million
increased $25.2 million versus the
third quarter of 2021
- Lindblad segment Net Yield per Available Guest Night increased
24% to $1,014 with Occupancy of
81%
- Strong reservations for future travel with bookings for 2023
23% ahead of bookings for 2020 at the same point in 2019
- Launched the 48 passenger all-suite National Geographic
Islander II, replacing the National Geographic Islander in the
Galapagos
NEW
YORK, Nov. 2, 2022 /PRNewswire/ -- 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 third
quarter ended September 30, 2022.
Dolf Berle, Chief Executive
Officer, said "Lindblad delivered strong financial results this
past quarter as we continued to ramp operations and began to
harness the expanded earnings power of the Company. With
significant demand across both our ship and land-based businesses,
our guests are demonstrating their eagerness to return with us to
exploring the world's most remarkable destinations. The growing
desire for high quality, immersive and authentic experiences drove
the positive earnings contributions during the third quarter, while
also positioning us for continued success in 2023 and beyond, when
we can further leverage the increased fleet capacity and
diversified product offerings we have strategically invested in
over the last two years."
RAMP OF FLEET OPERATIONS
Ramp in Operations
Lindblad resumed operation in June
2021 and, since then, has continually ramped its operations,
providing immersive expeditions in 2022 across all ten of its owned
vessels. During the third quarter of 2022, operations
included trips to Alaska, the
Arctic, the Pacific Northwest, British
Columbia, Canada's Northwest Passage, the Galápagos Islands,
Greenland, Iceland, Norway and South
America. Travel restrictions related to COVID-19 have
diminished dramatically, and the Company will resume operations in
additional geographies in the remainder of 2022 and throughout
2023. Where travel restrictions remain, which primarily
includes a limited number of itineraries impacted by the
Russia-Ukraine conflict, the Company is adjusting
itineraries where possible, and working with guests to
reschedule travel plans and refund payments or issue future travel
certificates, as applicable. Previously, due to the spread of
the COVID-19 virus and the effects of travel restrictions around
the world, the Company had suspended or rescheduled the majority of
its expeditions departing between March 16,
2020 through May 31, 2021.
The Company believes there are a variety of strategic advantages
that enabled it to deploy its ships safely and quickly as travel
restrictions were lifted. Most notably, the size of its owned and
operated vessels, which range from 48 to 148 passengers, allows for
a highly controlled environment that includes stringent cleaning
protocols. The small nature of the Company's ships also allowed it
to efficiently and effectively test its guests and crew prior to
boarding, or as otherwise needed. Additionally, the majority
of expeditions take place in remote locations where human
interactions are limited, so there is less opportunity for external
influence.
Booking Trends
The Company has substantial advance reservations for future
travel despite some continued short-term impact from the COVID-19
virus, including elevated cancellations, as well as itinerary
changes on a few upcoming voyages due to the Russia-Ukraine conflict. Bookings for 2023 are
23% ahead of the bookings for the full year 2020 at the same
point in 2019.
Balance Sheet and Liquidity
As of September 30, 2022, the
Company had $116.4 million in
unrestricted cash and $29.5 million
in restricted cash, primarily related to deposits on future travel
originating from U.S. ports and credit card reserves.
As of September 30, 2022, the
Company had a total debt position of $572.4
million and was in compliance with all of its applicable
debt covenants. During May 2022, the
Company further amended its export credit agreements to extend the
waiver of its net leverage coverage ratio from March 2022 through December 31, 2022.
During February 2022, the Company
issued $360.0 million of 6.75% senior
secured notes, maturing 2027 and entered into a new $45.0 million revolving credit facility. Proceeds
from the senior secured notes were used primarily to pay the
outstanding borrowings under the Company's previously existing
credit agreement, including the term facility, Main Street Loan and
revolving credit facility.
As the Company continues to ramp up operations, it anticipates
strong guest cash receipts from final payments for upcoming
expeditions and trips, as well as deposits for new reservations for
future travel. At the same time, monthly cash usage will increase
as the Company incurs costs in operating expeditions and spends to
advertise upcoming expeditions and trips. There can be no assurance
that cash flows from operations will be available to fund future
obligations or that it will not experience delays or cancellations
with respect to the ramp of our operations.
THIRD QUARTER RESULTS
Tour Revenues
Third quarter tour revenues of $144.8
million increased $80.3
million as compared to the same period in 2021. The increase
was driven by a $50.6 million
increase at the Lindblad segment and a $29.6
million increase at the Land Experiences segment, primarily
due to the ramp in expeditions and trips compared with the third
quarter a year ago and higher pricing. The Land Experiences segment
also includes a full quarter of results for Classic Journeys, LLC
("Classic Journeys"), which was acquired during the fourth quarter
of 2021.
Net Income
Net loss available to stockholders for the
third quarter was $9.8 million,
$0.18 per diluted share, as compared
with net loss available to stockholders of $25.7 million, $0.50 per diluted share, in the third quarter of
2021. The $15.9 million improvement
primarily reflects the ramp in operations, partially offset by
$4.0 million decline in other income
due primarily to the utilization in the third quarter of 2021 of
the CERTS grant for covered expense. The third quarter of 2022 also
included a $2.3 million increase in
interest expense due to additional borrowings and higher rates and
a $1.5 million increase in
depreciation and amortization, primarily due to the addition of the
National Geographic Resolution to the fleet in September 2021.
Adjusted EBITDA
Third quarter Adjusted EBITDA of $18.6 million increased $25.2 million
as compared to the same period in 2021. The increase was driven by
a $16.5 million improvement at the
Lindblad segment and a $8.7
million increase at the Land Experiences segment.
Lindblad segment Adjusted EBITDA of $4.9
million increased $16.5 million as compared to the same
period in 2021, primarily from increased tour revenues, partially
offset by higher cost of tours and increased personnel costs from
the ramp in operations and from higher commissions related to the
revenue and bookings growth.
Land Experiences segment Adjusted EBITDA of $13.7 million increased $8.7 million as
compared to 2021, primarily due to additional trips, partially
offset by higher cost of tours and increased personnel costs
related to the ramp in operations and increased marketing costs to
drive future bookings. The Land Experiences segment also includes a
full quarter of results for Classic Journeys, which was acquired
during the fourth quarter of 2021.
|
|
For the three months
ended
September 30,
|
|
|
For the nine months
ended
September 30,
|
|
(In
thousands)
|
|
2022
|
|
|
2021
|
|
|
Change
|
|
|
%
|
|
|
2022
|
|
|
2021
|
|
|
Change
|
|
|
%
|
|
Tour
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
83,741
|
|
|
$
|
33,100
|
|
|
$
|
50,641
|
|
|
|
153 %
|
|
|
$
|
198,063
|
|
|
$
|
40,264
|
|
|
$
|
157,799
|
|
|
|
392 %
|
|
Land
Experiences
|
|
|
61,042
|
|
|
|
31,407
|
|
|
|
29,635
|
|
|
|
94 %
|
|
|
|
105,477
|
|
|
|
41,291
|
|
|
|
64,186
|
|
|
|
155 %
|
|
Total tour
revenues
|
|
$
|
144,783
|
|
|
$
|
64,507
|
|
|
$
|
80,276
|
|
|
|
124 %
|
|
|
$
|
303,540
|
|
|
$
|
81,555
|
|
|
$
|
221,985
|
|
|
|
272 %
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
(7,142)
|
|
|
$
|
(22,282)
|
|
|
$
|
15,140
|
|
|
|
68 %
|
|
|
$
|
(60,380)
|
|
|
$
|
(80,617)
|
|
|
$
|
20,237
|
|
|
|
25 %
|
|
Land
Experiences
|
|
|
12,950
|
|
|
|
4,630
|
|
|
|
8,320
|
|
|
|
180 %
|
|
|
|
12,629
|
|
|
|
(686)
|
|
|
|
13,315
|
|
|
|
NM
|
|
Total operating income
(loss)
|
|
$
|
5,808
|
|
|
$
|
(17,652)
|
|
|
$
|
23,460
|
|
|
|
NM
|
|
|
$
|
(47,751)
|
|
|
$
|
(81,303)
|
|
|
$
|
33,552
|
|
|
|
41 %
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
4,889
|
|
|
$
|
(11,596)
|
|
|
$
|
16,485
|
|
|
|
NM
|
|
|
$
|
(23,560)
|
|
|
$
|
(51,382)
|
|
|
$
|
27,822
|
|
|
|
54 %
|
|
Land
Experiences
|
|
|
13,699
|
|
|
|
5,001
|
|
|
|
8,698
|
|
|
|
174 %
|
|
|
|
14,735
|
|
|
|
1,017
|
|
|
|
13,718
|
|
|
|
NM
|
|
Total adjusted
EBITDA
|
|
$
|
18,588
|
|
|
$
|
(6,595)
|
|
|
$
|
25,183
|
|
|
|
NM
|
|
|
$
|
(8,825)
|
|
|
$
|
(50,365)
|
|
|
$
|
41,540
|
|
|
|
82 %
|
|
LINDBLAD FLEET ACTIVITIES
The National Geographic Islander II launched in
August 2022, replacing the
National Geographic Islander, and will operate year-round in
the Galápagos Islands. The fully renovated ship is equipped to
provide immersive and authentic expeditions to 48 guests who will
enjoy all suite accommodations, indoor-outdoor dining options and
diverse expedition tools and amenities.
STOCK REPURCHASE PLAN
The Company currently has a $35.0
million stock repurchase plan in place. As of October 26, 2022, the Company had repurchased
875,218 shares and 6.0 million warrants under the plan for a total
of $23.0 million and had $12.0 million remaining under the plan. As of
October 26, 2022, there were 53.1
million shares common stock outstanding. The Company has suspended
all stock repurchases due to restrictions related to the Main
Street Expanded Loan Facility program.
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 November 2, 2022,
to discuss the earnings of the Company. The conference call can be
accessed by dialing (844) 200-6205 (United States), (833) 950-0062 (Canada) or (929) 526-1599 (outside the
U.S.). The access code is 780301. 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
subsidiaries, Natural Habitat Adventures, Off the Beaten Path,
DuVine and Classic Journeys.
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 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.
Classic Journeys is a luxury cultural walking tour company that
operates a portfolio of curated tours centered around cinematic
walks led by expert local guides. Classic Journeys offers active
small-group and private custom journeys in over 50 countries around
the world.
DuVine designs and leads luxury bike tours in the world's most
amazing destinations, from Italy's
sun-bleached villages and the medieval towns of Provence to
Portugal's Douro Valley and the
vineyards of Napa, California.
Guests bike, eat, drink, and sleep their way through these regions
and many more while sampling the finest cuisine, hotels, and
wine.
Off the Beaten Path is an outdoor, active travel company
offering guided small group adventures and private custom journeys
that connect travelers with the wild nature and authentic culture
of their destinations. Off the Beaten Path's trips extend across
the globe, with a focus on exceptional national park experiences in
the Rocky Mountains, Desert Southwest, and Alaska.
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. Many of these risks and
uncertainties are currently amplified by, and will continue to be
amplified by, or in the future may be amplified by, the COVID-19
outbreak. It is not possible to predict or identify all such risks.
There may be additional risks that we consider immaterial or which
are unknown. These factors include, but are not limited to, the
following: (i) suspended operations and disruptions to our business
and operations related to COVID-19; (ii) the impacts of COVID-19
and/or the Russia-Ukraine conflict on our financial condition,
liquidity, results of operations, cash flows, employees, plans and
growth; (iii) the impacts of COVID-19 and/or the Russia/Ukraine conflict on future travel and the
cruise and airline industries in general; (iv) unscheduled
disruptions in our business due to travel restrictions, weather
events, mechanical failures, pandemics or other events; (v)
changes adversely affecting the business in which we are engaged;
(vi) management of our growth and our ability to execute on our
planned growth; (vii) our business strategy and plans; (viii) our
ability to maintain our relationship with National Geographic; (ix)
compliance with new and existing laws and regulations, including
environmental regulations and travel advisories and restrictions;
(x) compliance with the financial and/or operating covenants in our
debt arrangements; (xi) adverse publicity regarding the cruise
industry in general; (xii) loss of business due to
competition; (xiii) the result of future financing
efforts; (xiv) delays and costs overruns with respect to
the construction and delivery of newly constructed vessels; (xv)
the inability to meet revenue and Adjusted EBITDA projections; and
(xvi) 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)
|
|
|
|
September 30,
2022
|
|
|
December 31,
2021
|
|
|
|
(unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
116,446
|
|
|
$
|
150,753
|
|
Restricted
cash
|
|
|
29,524
|
|
|
|
21,940
|
|
Marine operating
supplies
|
|
|
9,608
|
|
|
|
8,275
|
|
Inventories
|
|
|
2,140
|
|
|
|
2,278
|
|
Prepaid expenses and
other current assets
|
|
|
45,252
|
|
|
|
27,094
|
|
Total current
assets
|
|
|
202,970
|
|
|
|
210,340
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
540,385
|
|
|
|
542,418
|
|
Goodwill
|
|
|
42,017
|
|
|
|
42,017
|
|
Intangibles,
net
|
|
|
11,671
|
|
|
|
13,235
|
|
Deferred tax
asset
|
|
|
6,849
|
|
|
|
7,609
|
|
Right-to-use lease
assets
|
|
|
3,439
|
|
|
|
4,402
|
|
Other long-term
assets
|
|
|
4,199
|
|
|
|
7,470
|
|
Total
assets
|
|
$
|
811,530
|
|
|
$
|
827,491
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Unearned passenger
revenues
|
|
$
|
247,005
|
|
|
$
|
212,598
|
|
Accounts payable and
accrued expenses
|
|
|
56,774
|
|
|
|
49,252
|
|
Lease liabilities -
current
|
|
|
1,524
|
|
|
|
1,553
|
|
Long-term debt -
current
|
|
|
24,086
|
|
|
|
26,061
|
|
Total current
liabilities
|
|
|
329,389
|
|
|
|
289,464
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
534,677
|
|
|
|
518,658
|
|
Lease
liabilities
|
|
|
2,212
|
|
|
|
3,178
|
|
Other long-term
liabilities
|
|
|
359
|
|
|
|
247
|
|
Total
liabilities
|
|
|
866,637
|
|
|
|
811,547
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
-
|
|
|
|
-
|
|
Series A redeemable
convertible preferred stock, 165,000 shares authorized; 62,000
and
80,000 shares issued and
outstanding as of September 30, 2022 and
December 31, 2021, respectively
|
|
|
68,090
|
|
|
|
83,901
|
|
Redeemable
noncontrolling interests
|
|
|
31,583
|
|
|
|
10,626
|
|
|
|
|
99,673
|
|
|
|
94,527
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
DEFICIT
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.0001 par value, 1,000,000 shares authorized; 62,000 and 80,000
Series A
shares issued and outstanding
as of September 30, 2022 and December 31, 2021,
respectively
|
|
|
-
|
|
|
|
-
|
|
Common stock, $0.0001
par value, 200,000,000 shares authorized; 53,132,670 and
50,800,786 issued, 53,065,365 and
50,755,546 outstanding as of September 30, 2022
and December 31, 2021, respectively
|
|
|
5
|
|
|
|
5
|
|
Additional paid-in
capital
|
|
|
82,432
|
|
|
|
58,485
|
|
Accumulated
deficit
|
|
|
(237,217)
|
|
|
|
(136,439)
|
|
Accumulated other
comprehensive loss
|
|
|
-
|
|
|
|
(634)
|
|
Total stockholders'
deficit
|
|
|
(154,780)
|
|
|
|
(78,583)
|
|
Total liabilities,
mezzanine equity and stockholders' deficit
|
|
$
|
811,530
|
|
|
$
|
827,491
|
|
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,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tour
revenues
|
|
$
|
144,783
|
|
|
$
|
64,507
|
|
|
$
|
303,540
|
|
|
$
|
81,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
tours
|
|
|
87,576
|
|
|
|
45,600
|
|
|
|
208,023
|
|
|
|
73,270
|
|
General and
administrative
|
|
|
24,535
|
|
|
|
17,023
|
|
|
|
68,882
|
|
|
|
46,123
|
|
Selling and
marketing
|
|
|
16,025
|
|
|
|
10,213
|
|
|
|
41,193
|
|
|
|
17,680
|
|
Depreciation and
amortization
|
|
|
10,839
|
|
|
|
9,323
|
|
|
|
33,193
|
|
|
|
25,785
|
|
Total operating
expenses
|
|
|
138,975
|
|
|
|
82,159
|
|
|
|
351,291
|
|
|
|
162,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
5,808
|
|
|
|
(17,652)
|
|
|
|
(47,751)
|
|
|
|
(81,303)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(8,369)
|
|
|
|
(6,063)
|
|
|
|
(26,500)
|
|
|
|
(17,436)
|
|
Loss on foreign
currency
|
|
|
(872)
|
|
|
|
(1,434)
|
|
|
|
(1,417)
|
|
|
|
(1,165)
|
|
Other (expense)
income
|
|
|
(333)
|
|
|
|
4,357
|
|
|
|
84
|
|
|
|
4,362
|
|
Total other
expense
|
|
|
(9,574)
|
|
|
|
(3,140)
|
|
|
|
(27,833)
|
|
|
|
(14,239)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
(3,766)
|
|
|
|
(20,792)
|
|
|
|
(75,584)
|
|
|
|
(95,542)
|
|
Income tax expense
(benefit)
|
|
|
1,732
|
|
|
|
2,507
|
|
|
|
619
|
|
|
|
(2,648)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(5,498)
|
|
|
|
(23,299)
|
|
|
|
(76,203)
|
|
|
|
(92,894)
|
|
Net income (loss)
attributable to noncontrolling interest
|
|
|
3,228
|
|
|
|
1,039
|
|
|
|
3,000
|
|
|
|
(17)
|
|
Net loss attributable
to Lindblad Expeditions Holdings, Inc.
|
|
|
(8,726)
|
|
|
|
(24,338)
|
|
|
|
(79,203)
|
|
|
|
(92,877)
|
|
Series A redeemable
convertible preferred stock dividend
|
|
|
1,036
|
|
|
|
1,340
|
|
|
|
3,618
|
|
|
|
3,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss available to
stockholders
|
|
$
|
(9,762)
|
|
|
$
|
(25,678)
|
|
|
$
|
(82,821)
|
|
|
$
|
(96,839)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
53,045,329
|
|
|
|
50,110,188
|
|
|
|
51,665,912
|
|
|
|
50,013,191
|
|
Diluted
|
|
|
53,045,329
|
|
|
|
50,110,188
|
|
|
|
51,665,912
|
|
|
|
50,013,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undistributed loss per
share available to stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.18)
|
|
|
$
|
(0.50)
|
|
|
$
|
(1.60)
|
|
|
$
|
(1.87)
|
|
Diluted
|
|
$
|
(0.18)
|
|
|
$
|
(0.50)
|
|
|
$
|
(1.60)
|
|
|
$
|
(1.87)
|
|
LINDBLAD EXPEDITIONS HOLDINGS, INC. AND
SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(unaudited)
|
|
|
|
For the nine months
ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(76,203)
|
|
|
$
|
(92,894)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
33,193
|
|
|
|
25,785
|
|
Amortization of
deferred financing costs and other, net
|
|
|
1,988
|
|
|
|
2,364
|
|
Right-of-use lease
asset
|
|
|
626
|
|
|
|
4
|
|
Stock-based
compensation
|
|
|
5,283
|
|
|
|
4,146
|
|
Deferred income
taxes
|
|
|
759
|
|
|
|
(2,648)
|
|
Change in fair value
of contingent acquisition consideration
|
|
|
111
|
|
|
|
-
|
|
Loss on foreign
currency
|
|
|
1,417
|
|
|
|
1,165
|
|
Write-off of
unamortized issuance costs related to debt refinancing
|
|
|
9,004
|
|
|
|
-
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
Marine operating
supplies and inventories
|
|
|
(1,195)
|
|
|
|
(375)
|
|
Prepaid expenses and
other current assets
|
|
|
(19,575)
|
|
|
|
(8,902)
|
|
Unearned passenger
revenues
|
|
|
34,407
|
|
|
|
62,922
|
|
Other long-term
assets
|
|
|
3,242
|
|
|
|
658
|
|
Other long-term
liabilities
|
|
|
844
|
|
|
|
4,857
|
|
Accounts payable and
accrued expenses
|
|
|
7,526
|
|
|
|
24,438
|
|
Operating lease
liabilities
|
|
|
(658)
|
|
|
|
-
|
|
Net cash provided by
operating activities
|
|
|
769
|
|
|
|
21,520
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(29,566)
|
|
|
|
(89,114)
|
|
Acquisition (net of
cash acquired)
|
|
|
-
|
|
|
|
(7,177)
|
|
Net cash used in
investing activities
|
|
|
(29,566)
|
|
|
|
(96,291)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
|
|
Proceeds from
long-term debt
|
|
|
360,000
|
|
|
|
61,720
|
|
Repayments of
long-term debt
|
|
|
(346,301)
|
|
|
|
(1,530)
|
|
Payment of deferred
financing costs
|
|
|
(10,859)
|
|
|
|
(3,135)
|
|
Repurchase under
stock-based compensation plans and related tax impacts
|
|
|
(766)
|
|
|
|
(1,763)
|
|
Net cash provided by
financing activities
|
|
|
2,074
|
|
|
|
55,292
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
|
|
(26,723)
|
|
|
|
(19,479)
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
|
172,693
|
|
|
|
204,515
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$
|
145,970
|
|
|
$
|
185,036
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid during the
period:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
22,159
|
|
|
$
|
13,300
|
|
Income
taxes
|
|
|
226
|
|
|
|
54
|
|
Non-cash investing and
financing activities:
|
|
|
|
|
|
|
|
|
Non-cash preferred
stock dividend
|
|
$
|
3,618
|
|
|
$
|
3,962
|
|
Value of shares issued
for acquisition
|
|
|
-
|
|
|
|
1,770
|
|
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,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net loss
|
|
$
|
(5,498)
|
|
|
$
|
(23,299)
|
|
|
$
|
(76,203)
|
|
|
$
|
(92,894)
|
|
Interest expense,
net
|
|
|
8,369
|
|
|
|
6,063
|
|
|
|
26,500
|
|
|
|
17,436
|
|
Income tax expense
(benefit)
|
|
|
1,732
|
|
|
|
2,507
|
|
|
|
619
|
|
|
|
(2,648)
|
|
Depreciation and
amortization
|
|
|
10,839
|
|
|
|
9,323
|
|
|
|
33,193
|
|
|
|
25,785
|
|
Gain on foreign
currency
|
|
|
872
|
|
|
|
1,434
|
|
|
|
1,417
|
|
|
|
1,165
|
|
Other expense
(income)
|
|
|
333
|
|
|
|
(4,357)
|
|
|
|
(84)
|
|
|
|
(4,362)
|
|
Stock-based
compensation
|
|
|
1,632
|
|
|
|
1,406
|
|
|
|
5,283
|
|
|
|
4,146
|
|
Other
|
|
|
309
|
|
|
|
328
|
|
|
|
450
|
|
|
|
1,007
|
|
Adjusted
EBITDA
|
|
$
|
18,588
|
|
|
$
|
(6,595)
|
|
|
$
|
(8,825)
|
|
|
$
|
(50,365)
|
|
Reconciliation of
Operating (Loss) Income to Adjusted EBITDA
Lindblad Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
September 30,
|
|
|
For the nine months
ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Operating
loss
|
|
$
|
(7,142)
|
|
|
$
|
(22,282)
|
|
|
$
|
(60,380)
|
|
|
$
|
(80,617)
|
|
Depreciation and
amortization
|
|
|
10,090
|
|
|
|
8,928
|
|
|
|
31,087
|
|
|
|
24,618
|
|
Stock-based
compensation
|
|
|
1,632
|
|
|
|
1,406
|
|
|
|
5,283
|
|
|
|
4,012
|
|
Other
|
|
|
309
|
|
|
|
352
|
|
|
|
450
|
|
|
|
605
|
|
Adjusted
EBITDA
|
|
$
|
4,889
|
|
|
$
|
(11,596)
|
|
|
$
|
(23,560)
|
|
|
$
|
(51,382)
|
|
Land Experiences
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
September 30,
|
|
|
For the nine months
ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Operating income
(loss)
|
|
$
|
12,950
|
|
|
$
|
4,630
|
|
|
$
|
12,629
|
|
|
$
|
(686)
|
|
Depreciation and
amortization
|
|
|
749
|
|
|
|
395
|
|
|
|
2,106
|
|
|
|
1,167
|
|
Stock-based
compensation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
134
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
402
|
|
Adjusted
EBITDA
|
|
$
|
13,699
|
|
|
$
|
5,001
|
|
|
$
|
14,735
|
|
|
$
|
1,017
|
|
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,
|
|
|
|
2022
|
|
|
2021
|
|
Net cash provided by
operating activities
|
|
$
|
769
|
|
|
$
|
21,520
|
|
Less: purchases of
property and equipment
|
|
|
(29,566)
|
|
|
|
(89,114)
|
|
Free Cash
Flow
|
|
$
|
(28,797)
|
|
|
$
|
(67,594)
|
|
|
|
For the three months
ended
September 30,
|
|
|
For the nine months
ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Available Guest
Nights
|
|
|
70,995
|
|
|
|
35,251
|
|
|
|
174,954
|
|
|
|
41,474
|
|
Guest Nights
Sold
|
|
|
57,229
|
|
|
|
28,829
|
|
|
|
130,836
|
|
|
|
33,749
|
|
Occupancy
|
|
|
81
|
%
|
|
|
82
|
%
|
|
|
75
|
%
|
|
|
81
|
%
|
Maximum
Guests
|
|
|
8,826
|
|
|
|
5,493
|
|
|
|
21,785
|
|
|
|
6,514
|
|
Number of
Guests
|
|
|
7,225
|
|
|
|
4,418
|
|
|
|
16,656
|
|
|
|
5,236
|
|
Voyages
|
|
|
114
|
|
|
|
75
|
|
|
|
302
|
|
|
|
89
|
|
Calculation of Gross
and Net Yield per Available Guest Night
|
|
For the three months
ended
September 30,
|
|
|
For the nine months
ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Guest ticket
revenues
|
|
$
|
73,700
|
|
|
$
|
32,325
|
|
|
$
|
174,762
|
|
|
$
|
38,087
|
|
Other tour
revenue
|
|
|
10,041
|
|
|
|
775
|
|
|
|
23,301
|
|
|
|
2,177
|
|
Tour
Revenues
|
|
|
83,741
|
|
|
|
33,100
|
|
|
|
198,063
|
|
|
|
40,264
|
|
Less:
Commissions
|
|
|
(5,728)
|
|
|
|
(2,705)
|
|
|
|
(14,381)
|
|
|
|
(3,248)
|
|
Less: Other tour
expenses
|
|
|
(6,030)
|
|
|
|
(1,545)
|
|
|
|
(21,025)
|
|
|
|
(2,611)
|
|
Net
Yield
|
|
$
|
71,983
|
|
|
$
|
28,850
|
|
|
$
|
162,657
|
|
|
$
|
34,405
|
|
Available Guest
Nights
|
|
|
70,995
|
|
|
|
35,251
|
|
|
|
174,954
|
|
|
|
41,474
|
|
Gross Yield per
Available Guest Night
|
|
$
|
1,180
|
|
|
$
|
939
|
|
|
$
|
1,132
|
|
|
$
|
971
|
|
Net Yield per Available
Guest Night
|
|
|
1,014
|
|
|
|
818
|
|
|
|
930
|
|
|
|
830
|
|
LINDBLAD EXPEDITIONS HOLDINGS, INC. AND
SUBSIDIARIES
|
Supplemental
Financial Schedules
|
(In thousands, except
for Available Guest Nights,
Gross and Net Cruise cost Per Available Guest Night and guest
metrics)
|
(unaudited)
|
|
Calculation of Gross
Cruise Cost and Net Cruise Cost
Lindblad
Segment
|
|
For the three months
ended
September 30,
|
|
|
For the nine months
ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Cost of
tours
|
|
$
|
51,296
|
|
|
$
|
25,842
|
|
|
$
|
145,251
|
|
|
$
|
48,282
|
|
Plus: Selling and
marketing
|
|
|
12,626
|
|
|
|
8,382
|
|
|
|
33,618
|
|
|
|
13,659
|
|
Plus: General and
administrative
|
|
|
16,871
|
|
|
|
12,230
|
|
|
|
48,487
|
|
|
|
34,322
|
|
Gross Cruise
Cost
|
|
|
80,793
|
|
|
|
46,454
|
|
|
|
227,356
|
|
|
|
96,263
|
|
Less:
Commissions
|
|
|
(5,728)
|
|
|
|
(2,705)
|
|
|
|
(14,381)
|
|
|
|
(3,248)
|
|
Less: Other tour
expenses
|
|
|
(6,030)
|
|
|
|
(1,545)
|
|
|
|
(21,025)
|
|
|
|
(2,611)
|
|
Net Cruise
Cost
|
|
|
69,035
|
|
|
|
42,204
|
|
|
|
191,950
|
|
|
|
90,404
|
|
Less: Fuel
Expense
|
|
|
(8,933)
|
|
|
|
(2,357)
|
|
|
|
(21,419)
|
|
|
|
(3,880)
|
|
Net Cruise Cost
Excluding Fuel
|
|
|
60,102
|
|
|
|
39,847
|
|
|
|
170,531
|
|
|
|
86,524
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
(1,632)
|
|
|
|
(1,406)
|
|
|
|
(5,283)
|
|
|
|
(4,012)
|
|
Other
|
|
|
(309)
|
|
|
|
(328)
|
|
|
|
(450)
|
|
|
|
(1,007)
|
|
Adjusted Net Cruise
Cost Excluding Fuel
|
|
$
|
58,161
|
|
|
$
|
38,113
|
|
|
$
|
164,798
|
|
|
$
|
81,505
|
|
Adjusted Net Cruise
Cost
|
|
$
|
67,094
|
|
|
$
|
40,470
|
|
|
$
|
186,217
|
|
|
$
|
85,385
|
|
Available Guest
Nights
|
|
|
70,995
|
|
|
|
35,251
|
|
|
|
174,954
|
|
|
|
41,474
|
|
Gross Cruise Cost per
Available Guest Night
|
|
$
|
1,138
|
|
|
$
|
1,318
|
|
|
$
|
1,300
|
|
|
$
|
2,321
|
|
Net Cruise Cost per
Available Guest Night
|
|
|
972
|
|
|
|
1,197
|
|
|
|
1,097
|
|
|
|
2,180
|
|
Net Cruise Cost
Excluding Fuel per Available Guest Night
|
|
|
847
|
|
|
|
1,130
|
|
|
|
975
|
|
|
|
2,086
|
|
Adjusted Net Cruise
Cost Excluding Fuel per Available Guest Night
|
|
|
819
|
|
|
|
1,081
|
|
|
|
942
|
|
|
|
1,965
|
|
Adjusted Net Cruise
Cost per Available Guest Night
|
|
|
945
|
|
|
|
1,148
|
|
|
|
1,064
|
|
|
|
2,059
|
|
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
costs, acquisition-related expenses and other non-recurring
charges. 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
acquisition-related expenses.
Available Guest Nights is a measurement of
capacity available for sale 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 per Available Guest
Night represents tour revenues 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 Yield represents tour revenues less
commissions and direct costs of other tour revenues.
Net Yield per Available Guest Night represents Net
Yield 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.