NEW YORK, Nov. 2, 2021 /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 quarter ended
September 30, 2021.
Dolf Berle, Chief Executive
Officer, said, "We are extremely excited to have nearly all of our
ships back exploring the world's most remarkable destinations,
providing high-quality and immersive expeditions to our loyal
guests. The pent-up demand for authentic adventure travel is
evident in both the overwhelmingly positive guest response as we
return to destinations that we have been travelling to for decades,
as well as in the sustained booking momentum we are generating
across our fleet. This momentum also goes beyond our ship-based
offerings with our platform of land-based businesses delivering
positive earnings in the quarter, capitalizing on the robust demand
for experiential travel. As we continue to ramp up existing
operations, we have also further expanded our growth opportunities
moving forward with the delivery of our fourth polar ship, the
National Geographic Resolution, and with the acquisition of
leading travel provider Classic Journeys. While not yet fully back
to where we were prior to the pandemic, Lindblad is emerging from
the pandemic as a vibrant company with a strong balance sheet, real
operating momentum and a broader set of opportunities that will
allow us to deliver additional shareholder value in the years
ahead."
RESUMPTION OF FLEET OPERATIONS AND COVID-19 BUSINESS
UPDATE
Return to Operations
The Company resumed ship operations in June 2021 and currently has eight of its ten
operating vessels providing expeditions to guests. During
June 2021, the Company launched three
ships in Alaska and another in the
Galapagos, and, during the third quarter, the Company resumed
operations on the majority of its remaining vessels with additional
ships operating in Alaska, the
Galapagos, Iceland and the Pacific
Northwest. The Company continues to work with local
authorities on plans to operate in additional geographies,
including Antarctica, during the
remainder of the year and early 2022. As the COVID-19 virus effects
travel restrictions in various locations around the world, the
Company also continues to work with its guests to reschedule travel
plans and refund payments, as applicable, for those expeditions and
trips that the Company is not able to operate.
The Company believes there are a variety of strategic advantages
that enable it to deploy its ships safely and quickly, while
mitigating the risk of COVID-19, as travel restrictions are lifted.
The most notable is the size of its owned and operated vessels
which range from 48 to 148 passengers, allowing for a highly
controlled environment that includes stringent cleaning protocols.
The small nature of the Company's ships also allows it to
efficiently and effectively test its guests and crew prior to
boarding. Additionally, all guests age 12 and over, crew and staff
are required to be fully vaccinated and the majority of expeditions
take place in remote locations where human interactions are
limited, so there is less opportunity for external influence.
While the Company's ships were not in operation, the majority of
the fleet was being maintained with minimally required crew
on-board to ensure they complied with all necessary regulations and
could be fully put back into service quickly as needed. Ahead of
launching each ship, crew levels were increased as necessary to
prepare each vessel for operations as well as for crew training and
vaccinations. The Company offices primarily remain closed, and most
employees are working remotely to maintain general business
operations, provide assistance to existing and potential guests and
maintain information technology systems.
The Company continues to adhere to the comprehensive plan
implemented in March 2020 to mitigate
the impact of COVID-19 and preserve and enhance its liquidity
position. Prior to resuming operations, this plan employed a
variety of cost reduction and cash preservation measures, including
reducing ship and land-based expedition costs, such as capital
expenditures, crew payroll, land costs, fuel and food, and
meaningfully reducing general and administrative expenses through
reduced payroll and the elimination of all non-essential travel,
office expenses and discretionary spending. The Company also
accessed available capital under existing debt facilities and
through the issuance of preferred stock. With the majority of
operations resuming, operating costs are ramping back up, but given
the continued uncertainty around COVID-19 and given that guest
counts have not yet returned to traditional levels, the Company
continues to minimize expenditures as appropriate.
Booking Trends
The Company has experienced a substantial negative impact from
the COVID-19 virus including elevated cancellations and softness in
near-term demand. Despite the COVID-19 impact, we continue to see
significant new bookings across the fleet and have substantial
advanced reservations for future travel. Bookings for the full year
2022 are 51% ahead of the bookings for 2021 as of the same date a
year ago and 27% ahead of the bookings for 2020 as of the same date
two years ago.
For voyages that were cancelled or rescheduled, we have offered
guests future travel credits or full refunds, and the majority
of guests have opted for future travel credits.
Balance Sheet and Liquidity
As of September 30, 2021, the
Company had $155.6 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. During
August 2021, the Company received a
$21.0 million grant under the
Coronavirus Economic Relief for Transportation Services ("CERTS")
Act, which provided grants to eligible motorcoach, school bus,
passenger vessel, and pilotage companies. Following the quarter,
the Company received an additional $6.0
million representing the remainder of the CERTS grant.
As of September 30, 2021, the
Company had a total debt position of $561.8
million and was in compliance with all of its debt
covenants. During September 2021, the
Company drew down an additional $46.2
million under its second export credit agreement in
conjunction with its final payment upon delivery of the National
Geographic Resolution. In April
2021, the Company drew down $15.5
million under the second export credit agreement in
conjunction with its fourth installment payment for the vessel.
Throughout 2021 the Company has taken further steps to amend its
credit agreements to provide additional flexibility including:
During June 2021, the Company
amended its export credit facilities to, among other things,
extend the deferral of scheduled amortization payments of the first
export credit facility through December
2021 in the aggregate amount of $15.7
million, extend the effective suspension of the total net
leverage ratio covenant through March
2022, increase the interest rate by 50 basis points and
annualize EBITDA used in the covenant calculation through
December 31, 2022. The deferred
principal payments will amortize quarterly over three years
starting in March 2022.
During April 2021, the Company
amended its term loan and revolving credit agreement to, among
other things, extend the waiver of its total net leverage ratio
covenant through March 31, 2022,
annualize EBITDA used in its covenant calculation through
December 31, 2022 and increase the
interest rate spreads of the Term Facility, excluding the Main
Street Loan and the Revolving Facility, by 50 basis points.
As the Company continues to ramp up operations, monthly cash
usage will increase as it incurs costs in operating expeditions,
prepares additional ships for return to service and spends to
market and advertise upcoming expeditions and trips. The Company
also anticipates a significant increase in guest payments as it
receives final payments for upcoming expeditions and trips, as well
as deposits for new reservations for future travel. Given the
dynamic nature of the COVID-19 pandemic, the Company cannot
reasonably estimate the potential impacts the pandemic will have on
its financial condition, results of operations, cash flows, plans
and growth for the foreseeable future. It is unknown when travel
restrictions and various border closures will be lifted and what
the demand for expedition travel will be once restrictions are no
longer in place.
THIRD QUARTER RESULTS
Tour Revenues
Third quarter tour revenues of $64.5
million increased $63.5
million as compared to the same period in 2020. The increase
was driven by a $33.1 million
increase at the Lindblad segment and a $30.4
million increase at the Land Experiences segment primarily
due to the resumption of additional expeditions and trips during
the third quarter of 2021. The Land Experiences segment also
included the results of Off the Beaten Path LLC ("Off the Beaten
Path") and DuVine Cycling + Adventure Co. ("DuVine"), which were
acquired during the first quarter of 2021.
Net Income
Net loss available to stockholders for the third quarter
was $25.7 million, $0.50 per diluted share, as compared with net
loss available to stockholders of $27.8
million, $0.56 per diluted
share, in the third quarter of 2020. The $2.1 million improvement primarily reflects
the resumption of additional expeditions and trips, as well as a
$4.4 million increase in other income
mainly due to the utilization of the CERTS grant for covered
expenses. These increases were partially offset by a $2.5 million tax expense in the current year
versus a $2.9 million tax benefit in
the third quarter of 2020, $1.4 million foreign currency loss
in the current year versus a $1.0
million foreign currency gain in the third quarter of 2020
and a $1.5 million increase in
interest expense due to additional borrowings and higher rates.
Adjusted EBITDA
Third quarter Adjusted EBITDA loss of $6.6 million improved $10.9 million as compared to the same period in
2020. The increase was driven by a $4.5
million improvement at the Lindblad segment and a
$6.4 million improvement at the
Land Experiences segment.
Lindblad segment Adjusted EBITDA loss of $11.6 million improved $4.5 million versus the third quarter a year ago,
primarily due to the resumption of expeditions, partially offset by
higher cost of tours, increased personnel costs and higher
marketing spend related to ramping up operations as well as
increased credit card commissions related to final payments for
upcoming trips and deposits for future travel.
Land Experiences segment Adjusted EBITDA of $5.0 million improved $6.4 million versus the third quarter a year
ago, primarily due to additional trips, partially offset by higher
cost of tours and increased personnel costs related to the
additional departures and increased marketing costs to drive
long-term growth initiatives. The Land Experiences segment also
included the results of Off the Beaten Path and DuVine, which were
acquired during the first quarter of 2021.
|
|
For the three
months ended
September 30,
|
|
|
For the nine
months ended
September 30,
|
|
(In
thousands)
|
|
2021
|
|
|
2020
|
|
|
Change
|
|
|
%
|
|
|
2021
|
|
|
2020
|
|
|
Change
|
|
|
%
|
|
Tour
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
33,100
|
|
|
$
|
16
|
|
|
$
|
33,084
|
|
|
|
NM
|
|
|
$
|
40,264
|
|
|
$
|
69,533
|
|
|
$
|
(29,269)
|
|
|
|
(42%)
|
|
Land
Experiences
|
|
|
31,407
|
|
|
|
1,003
|
|
|
|
30,404
|
|
|
|
NM
|
|
|
|
41,291
|
|
|
|
12,458
|
|
|
|
28,833
|
|
|
|
231%
|
|
Total tour
revenues
|
|
$
|
64,507
|
|
|
$
|
1,019
|
|
|
$
|
63,488
|
|
|
|
NM
|
|
|
$
|
81,555
|
|
|
$
|
81,991
|
|
|
$
|
(436)
|
|
|
|
(1%)
|
|
Operating (loss)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
(22,282)
|
|
|
$
|
(24,835)
|
|
|
$
|
2,553
|
|
|
|
10%
|
|
|
$
|
(80,617)
|
|
|
$
|
(54,287)
|
|
|
$
|
(26,330)
|
|
|
|
(49%)
|
|
Land
Experiences
|
|
|
4,630
|
|
|
|
(1,979)
|
|
|
|
6,609
|
|
|
|
NM
|
|
|
|
(686)
|
|
|
|
(5,021)
|
|
|
|
4,335
|
|
|
|
86%
|
|
Total operating
loss
|
|
$
|
(17,652)
|
|
|
$
|
(26,814)
|
|
|
$
|
9,162
|
|
|
|
34%
|
|
|
$
|
(81,303)
|
|
|
$
|
(59,308)
|
|
|
$
|
(21,995)
|
|
|
|
(37%)
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
(11,596)
|
|
|
$
|
(16,088)
|
|
|
$
|
4,492
|
|
|
|
28%
|
|
|
$
|
(51,382)
|
|
|
$
|
(29,001)
|
|
|
$
|
(22,381)
|
|
|
|
(77%)
|
|
Land
Experiences
|
|
|
5,001
|
|
|
|
(1,382)
|
|
|
|
6,383
|
|
|
|
NM
|
|
|
|
1,017
|
|
|
|
(3,368)
|
|
|
|
4,385
|
|
|
|
NM
|
|
Total adjusted
EBITDA
|
|
$
|
(6,595)
|
|
|
$
|
(17,470)
|
|
|
$
|
10,875
|
|
|
|
62%
|
|
|
$
|
(50,365)
|
|
|
$
|
(32,369)
|
|
|
$
|
(17,996)
|
|
|
|
(56%)
|
|
STRATEGIC GROWTH INITIATIVES
The Company expanded its travel offerings in September 2021 with the delivery of the
National Geographic Resolution, which will allow us to
further capitalize on the demand for high quality adventure travel
and broaden the immersive and authentic itineraries we offer to our
guests. The National Geographic Resolution joins her sister
ship, the National Geographic Endurance, as well as the
National Geographic Explorer and the National Geographic
Orion, to dramatically increase the polar capacity of the
Company. The new vessel is capable of exploring deep into the
Arctic and Antarctic, and its Ulstein X-BOW® design allows for
greater comfort and speed through rough waters.
Following quarter end, the Company acquired Classic Journeys,
LLC ("Classic Journeys") a leading luxury cultural walking tour
company, further broadening Lindblad's platform of high-quality
experiential product offerings in robust adventure travel sectors.
Classic Journeys provides world-class luxury walking tours focusing
on engaging experiences that immerse guests into the history and
culture of the places they are exploring and the people who live
there. Classic Journeys' tours are highlighted by expert and
well-connected local guides who live in the regions being explored,
luxury boutique accommodations and handcrafted itineraries curated
through years of local connections and experience.
The acquisition of Classic Journeys follows the Company's first
quarter 2021 acquisitions of DuVine, a leading luxury cycling and
adventure travel company, and Off the Beaten Path, a leading active
travel operator with a specialization in U.S. National Parks.
Similar to the acquisition of Natural Habitat, Inc. ("Natural
Habitat"), the Company will leverage its experience and resources
to accelerate the growth of these unique and profitable businesses
and capitalize on the growing demand for authentic and immersive
adventure travel. The aggregate purchase price of these three
majority interests was approximately $23.4
million and was financed through $21.6 million in cash and Lindblad stock of
$1.8 million.
STOCK AND WARRANT REPURCHASE PLAN
The Company currently has a $35
million stock repurchase plan in place. During the third
quarter, the Company did not repurchase any shares. As of
November 2, 2021, the Company had
repurchased 6.0 million warrants and 875,218 shares under the plan
for a total of $23.0 million and had
$12.0 million remaining under the
plan. As of November 1, 2021, there
were 50.2 million shares common stock outstanding. The Company has
currently suspended all stock repurchases given the uncertainty
surrounding COVID-19 and restrictions related to the Main Street
Expanded Loan Facility.
FINANCIAL OUTLOOK
The COVID-19 pandemic has had, and will continue to have, a
significant impact on the Company's financial position and results
of operation. Given the continued uncertainty around the COVID-19
pandemic, the Company is not providing a full year outlook
regarding results of operations at this time and will update its
expectations when it has more clarity around the timing of and
extent of future operations.
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, 2021, 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
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 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.
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 the novel corona virus COVID-19; (ii) the
impacts of the novel coronavirus COVID-19 on our financial
condition, liquidity, results of operations, cash flows, employees,
plans and growth; (iii) the impacts of the novel coronavirus
COVID-19 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)
|
|
|
|
As of
September 30,
2021
|
|
|
As of
December 31,
2020
|
|
|
|
(unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
155,562
|
|
|
$
|
187,531
|
|
Restricted
cash
|
|
|
29,474
|
|
|
|
16,984
|
|
Marine operating
supplies
|
|
|
5,894
|
|
|
|
5,473
|
|
Inventories
|
|
|
2,122
|
|
|
|
2,168
|
|
Prepaid expenses and
other current assets
|
|
|
27,078
|
|
|
|
17,014
|
|
Total current
assets
|
|
|
220,130
|
|
|
|
229,170
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
547,771
|
|
|
|
482,673
|
|
Goodwill
|
|
|
32,772
|
|
|
|
22,105
|
|
Intangibles,
net
|
|
|
10,165
|
|
|
|
4,817
|
|
Deferred tax
asset
|
|
|
8,188
|
|
|
|
5,539
|
|
Right-to-use lease
assets
|
|
|
4,230
|
|
|
|
5,082
|
|
Other long-term
assets
|
|
|
7,374
|
|
|
|
8,063
|
|
Total
assets
|
|
$
|
830,630
|
|
|
$
|
757,449
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Unearned passenger
revenues
|
|
$
|
189,641
|
|
|
$
|
120,737
|
|
Accounts payable and
accrued expenses
|
|
|
48,317
|
|
|
|
22,341
|
|
Lease liabilities -
current
|
|
|
1,418
|
|
|
|
1,475
|
|
Long-term debt -
current
|
|
|
20,260
|
|
|
|
11,255
|
|
Total current
liabilities
|
|
|
259,636
|
|
|
|
155,808
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
526,857
|
|
|
|
471,359
|
|
Lease
liabilities
|
|
|
3,124
|
|
|
|
3,915
|
|
Other long-term
liabilities
|
|
|
95
|
|
|
|
90
|
|
Total
liabilities
|
|
|
789,712
|
|
|
|
631,172
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
Series A redeemable
convertible preferred stock, 165,000 shares authorized; 85,000
shares issued and
outstanding as of September 30, 2021 and December 31, 2020,
respectively
|
|
|
87,785
|
|
|
|
83,825
|
|
Redeemable
noncontrolling interest
|
|
|
10,134
|
|
|
|
7,494
|
|
|
|
|
97,919
|
|
|
|
91,319
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.0001 par value, 1,000,000 shares authorized; 85,000 Series A
shares issued and outstanding as of
September 30, 2021 and December 31, 2020
|
|
|
-
|
|
|
|
-
|
|
Common stock, $0.0001
par value, 200,000,000 shares authorized; 50,191,647 and 49,905,512
issued, 50,146,407 and
49,818,676 outstanding as of September 30, 2021 and December 31,
2020, respectively
|
|
|
5
|
|
|
|
5
|
|
Additional paid-in
capital
|
|
|
52,146
|
|
|
|
48,127
|
|
Accumulated
deficit
|
|
|
(108,411)
|
|
|
|
(11,572)
|
|
Accumulated other
comprehensive loss
|
|
|
(741)
|
|
|
|
(1,602)
|
|
Total stockholders'
(deficit) / equity
|
|
|
(57,001)
|
|
|
|
34,958
|
|
Total liabilities,
mezzanine equity and stockholders' equity
|
|
$
|
830,630
|
|
|
$
|
757,449
|
|
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,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tour
revenues
|
|
$
|
64,507
|
|
|
$
|
1,019
|
|
|
$
|
81,555
|
|
|
$
|
81,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
tours
|
|
|
45,600
|
|
|
|
8,075
|
|
|
|
73,270
|
|
|
|
62,988
|
|
General and
administrative
|
|
|
17,023
|
|
|
|
9,145
|
|
|
|
46,123
|
|
|
|
36,170
|
|
Selling and
marketing
|
|
|
10,213
|
|
|
|
2,128
|
|
|
|
17,680
|
|
|
|
18,413
|
|
Depreciation and
amortization
|
|
|
9,323
|
|
|
|
8,485
|
|
|
|
25,785
|
|
|
|
23,728
|
|
Total operating
expenses
|
|
|
82,159
|
|
|
|
27,833
|
|
|
|
162,858
|
|
|
|
141,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
(17,652)
|
|
|
|
(26,814)
|
|
|
|
(81,303)
|
|
|
|
(59,308)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(6,063)
|
|
|
|
(4,529)
|
|
|
|
(17,436)
|
|
|
|
(11,763)
|
|
(Loss) gain on
foreign currency
|
|
|
(1,434)
|
|
|
|
989
|
|
|
|
(1,165)
|
|
|
|
(6,334)
|
|
Other income
(expense)
|
|
|
4,357
|
|
|
|
(74)
|
|
|
|
4,362
|
|
|
|
(188)
|
|
Total other
expense
|
|
|
(3,140)
|
|
|
|
(3,614)
|
|
|
|
(14,239)
|
|
|
|
(18,285)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
(20,792)
|
|
|
|
(30,428)
|
|
|
|
(95,542)
|
|
|
|
(77,593)
|
|
Income tax expense
(benefit)
|
|
|
2,507
|
|
|
|
(2,893)
|
|
|
|
(2,648)
|
|
|
|
(7,664)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(23,299)
|
|
|
|
(27,535)
|
|
|
|
(92,894)
|
|
|
|
(69,929)
|
|
Net income (loss)
attributable to noncontrolling interest
|
|
|
1,039
|
|
|
|
(156)
|
|
|
|
(17)
|
|
|
|
(956)
|
|
Net loss attributable
to Lindblad Expeditions Holdings, Inc.
|
|
|
(24,338)
|
|
|
|
(27,379)
|
|
|
|
(92,877)
|
|
|
|
(68,973)
|
|
Series A redeemable
convertible preferred stock dividend
|
|
|
1,340
|
|
|
|
425
|
|
|
|
3,962
|
|
|
|
425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss available to
stockholders
|
|
$
|
(25,678)
|
|
|
$
|
(27,804)
|
|
|
$
|
(96,839)
|
|
|
$
|
(69,398)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
50,110,188
|
|
|
|
49,779,525
|
|
|
|
50,013,191
|
|
|
|
49,715,663
|
|
Diluted
|
|
|
50,110,188
|
|
|
|
49,779,525
|
|
|
|
50,013,191
|
|
|
|
49,715,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undistributed loss
per share available to stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.50)
|
|
|
$
|
(0.56)
|
|
|
$
|
(1.87)
|
|
|
$
|
(1.40)
|
|
Diluted
|
|
$
|
(0.50)
|
|
|
$
|
(0.56)
|
|
|
$
|
(1.87)
|
|
|
$
|
(1.40)
|
|
LINDBLAD
EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(unaudited)
|
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2021
|
|
|
2020
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(92,894)
|
|
|
$
|
(69,929)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
25,785
|
|
|
|
23,728
|
|
Amortization of
National Geographic fee
|
|
|
-
|
|
|
|
727
|
|
Amortization of
deferred financing costs and other, net
|
|
|
2,364
|
|
|
|
1,549
|
|
Amortization of
right-to-use lease assets
|
|
|
4
|
|
|
|
149
|
|
Stock-based
compensation
|
|
|
4,146
|
|
|
|
1,911
|
|
Deferred income
taxes
|
|
|
(2,648)
|
|
|
|
(7,710)
|
|
Loss on foreign
currency
|
|
|
1,165
|
|
|
|
6,334
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
Marine operating
supplies and inventories
|
|
|
(375)
|
|
|
|
589
|
|
Prepaid expenses and
other current assets
|
|
|
(8,902)
|
|
|
|
6,320
|
|
Unearned passenger
revenues
|
|
|
62,922
|
|
|
|
(18,362)
|
|
Other long-term
assets
|
|
|
658
|
|
|
|
698
|
|
Other long-term
liabilities
|
|
|
4,857
|
|
|
|
(4,949)
|
|
Accounts payable and
accrued expenses
|
|
|
24,438
|
|
|
|
(12,794)
|
|
Net cash provided by
(used in) operating activities
|
|
|
21,520
|
|
|
|
(71,739)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(89,114)
|
|
|
|
(152,791)
|
|
Acquisition (net of
cash acquired)
|
|
|
(7,177)
|
|
|
|
-
|
|
Net cash used in
investing activities
|
|
|
(96,291)
|
|
|
|
(152,791)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
|
|
Proceeds from
long-term debt
|
|
|
61,720
|
|
|
|
183,339
|
|
Repayments of
long-term debt
|
|
|
(1,530)
|
|
|
|
(1,500)
|
|
Payment of deferred
financing costs
|
|
|
(3,135)
|
|
|
|
(4,877)
|
|
Repurchase under
stock-based compensation plans and related tax impacts
|
|
|
(1,763)
|
|
|
|
(393)
|
|
Proceeds from Series
A preferred stock issuance
|
|
|
-
|
|
|
|
85,000
|
|
Repurchase of
warrants and common stock
|
|
|
-
|
|
|
|
(127)
|
|
Net cash provided by
financing activities
|
|
|
55,292
|
|
|
|
261,442
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
|
|
(19,479)
|
|
|
|
36,912
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
|
204,515
|
|
|
|
109,258
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
185,036
|
|
|
$
|
146,170
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid during the
period:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
13,300
|
|
|
$
|
12,418
|
|
Income
taxes
|
|
$
|
54
|
|
|
$
|
650
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
|
Non-cash preferred
share dividend
|
|
$
|
3,962
|
|
|
$
|
-
|
|
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,
|
|
(In
thousands)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net loss
|
|
$
|
(23,299)
|
|
|
$
|
(27,535)
|
|
|
$
|
(92,894)
|
|
|
$
|
(69,929)
|
|
Interest expense,
net
|
|
|
6,063
|
|
|
|
4,529
|
|
|
|
17,436
|
|
|
|
11,763
|
|
Income tax expense
(benefit)
|
|
|
2,507
|
|
|
|
(2,893)
|
|
|
|
(2,648)
|
|
|
|
(7,664)
|
|
Depreciation and
amortization
|
|
|
9,323
|
|
|
|
8,485
|
|
|
|
25,785
|
|
|
|
23,728
|
|
Loss (gain) on
foreign currency
|
|
|
1,434
|
|
|
|
(989)
|
|
|
|
1,165
|
|
|
|
6,334
|
|
Other (income)
expense
|
|
|
(4,357)
|
|
|
|
74
|
|
|
|
(4,362)
|
|
|
|
188
|
|
Stock-based
compensation
|
|
|
1,406
|
|
|
|
310
|
|
|
|
4,146
|
|
|
|
1,911
|
|
National Geographic
fee amortization
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
727
|
|
Other
|
|
|
328
|
|
|
|
549
|
|
|
|
1,007
|
|
|
|
573
|
|
Adjusted
EBITDA
|
|
$
|
(6,595)
|
|
|
$
|
(17,470)
|
|
|
$
|
(50,365)
|
|
|
$
|
(32,369)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating (Loss) Income to Adjusted EBITDA
Lindblad Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
September 30,
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Operating
loss
|
|
$
|
(22,282)
|
|
|
$
|
(24,835)
|
|
|
$
|
(80,617)
|
|
|
$
|
(54,287)
|
|
Depreciation and
amortization
|
|
|
8,928
|
|
|
|
7,888
|
|
|
|
24,618
|
|
|
|
22,075
|
|
Stock-based
compensation
|
|
|
1,406
|
|
|
|
310
|
|
|
|
4,012
|
|
|
|
1,911
|
|
National Geographic
fee amortization
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
727
|
|
Other
|
|
|
352
|
|
|
|
549
|
|
|
|
605
|
|
|
|
573
|
|
Adjusted
EBITDA
|
|
$
|
(11,596)
|
|
|
$
|
(16,088)
|
|
|
$
|
(51,382)
|
|
|
$
|
(29,001)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Experiences
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
September 30,
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Operating income
(loss)
|
|
$
|
4,630
|
|
|
$
|
(1,979)
|
|
|
$
|
(686)
|
|
|
$
|
(5,021)
|
|
Depreciation and
amortization
|
|
|
395
|
|
|
|
597
|
|
|
|
1,167
|
|
|
|
1,653
|
|
Stock-based
compensation
|
|
|
-
|
|
|
|
-
|
|
|
|
134
|
|
|
|
-
|
|
Other
|
|
|
(24)
|
|
|
|
-
|
|
|
|
402
|
|
|
|
-
|
|
Adjusted
EBITDA
|
|
$
|
5,001
|
|
|
$
|
(1,382)
|
|
|
$
|
1,017
|
|
|
$
|
(3,368)
|
|
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 (Used in)
Operating Activities
|
|
For the nine
months ended
September 30,
|
|
|
|
2021
|
|
|
2020
|
|
Net cash provided by
(used in) operating activities
|
|
$
|
21,520
|
|
|
$
|
(71,739)
|
|
Less: purchases of
property and equipment
|
|
|
(89,114)
|
|
|
|
(152,791)
|
|
Free Cash
Flow
|
|
$
|
(67,594)
|
|
|
$
|
(224,530)
|
|
|
|
|
For the three
months ended
September 30,
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Available Guest
Nights
|
|
|
35,251
|
|
|
|
-
|
|
|
|
41,474
|
|
|
|
51,624
|
|
Guest Nights
Sold
|
|
|
28,829
|
|
|
|
-
|
|
|
|
33,749
|
|
|
|
46,050
|
|
Occupancy
|
|
|
82
|
%
|
|
|
-
|
|
|
|
81
|
%
|
|
|
89
|
%
|
Maximum
Guests
|
|
|
5,493
|
|
|
|
-
|
|
|
|
6,514
|
|
|
|
6,512
|
|
Number of
Guests
|
|
|
4,418
|
|
|
|
-
|
|
|
|
5,236
|
|
|
|
5,564
|
|
Voyages
|
|
|
75
|
|
|
|
-
|
|
|
|
89
|
|
|
|
85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Gross Yield per Available Guest Night and Net
Yield per Available Guest Night
|
|
For the three
months ended
September 30,
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Guest ticket
revenues
|
|
$
|
32,325
|
|
|
$
|
-
|
|
|
$
|
38,087
|
|
|
$
|
60,351
|
|
Other tour
revenue
|
|
|
775
|
|
|
|
16
|
|
|
|
2,177
|
|
|
|
9,182
|
|
Tour
Revenues
|
|
|
33,100
|
|
|
|
16
|
|
|
|
40,264
|
|
|
|
69,533
|
|
Less:
Commissions
|
|
|
(2,705)
|
|
|
|
(818)
|
|
|
|
(3,248)
|
|
|
|
(8,080)
|
|
Less: Other tour
expenses
|
|
|
(1,545)
|
|
|
|
(308)
|
|
|
|
(2,611)
|
|
|
|
(7,021)
|
|
Net
Yield
|
|
$
|
28,850
|
|
|
$
|
(1,110)
|
|
|
$
|
34,405
|
|
|
$
|
54,432
|
|
Available Guest
Nights
|
|
|
35,251
|
|
|
|
-
|
|
|
|
41,474
|
|
|
|
51,624
|
|
Gross Yield per
Available Guest Night
|
|
$
|
939
|
|
|
|
NM
|
|
|
$
|
971
|
|
|
$
|
1,347
|
|
Net Yield per
Available Guest Night
|
|
|
818
|
|
|
|
NM
|
|
|
|
830
|
|
|
|
1,054
|
|
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,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Cost of
tours
|
|
$
|
25,842
|
|
|
$
|
7,534
|
|
|
$
|
48,282
|
|
|
$
|
55,237
|
|
Plus: Selling and
marketing
|
|
|
8,382
|
|
|
|
1,678
|
|
|
|
13,659
|
|
|
|
16,862
|
|
Plus: General and
administrative
|
|
|
12,230
|
|
|
|
7,751
|
|
|
|
34,322
|
|
|
|
29,646
|
|
Gross Cruise
Cost
|
|
|
46,454
|
|
|
|
16,963
|
|
|
|
96,263
|
|
|
|
101,745
|
|
Less:
Commissions
|
|
|
(2,705)
|
|
|
|
(818)
|
|
|
|
(3,248)
|
|
|
|
(8,080)
|
|
Less: Other tour
expenses
|
|
|
(1,545)
|
|
|
|
(308)
|
|
|
|
(2,611)
|
|
|
|
(7,021)
|
|
Net Cruise
Cost
|
|
|
42,204
|
|
|
|
15,837
|
|
|
|
90,404
|
|
|
|
86,644
|
|
Less: Fuel
Expense
|
|
|
(2,357)
|
|
|
|
(1,026)
|
|
|
|
(3,880)
|
|
|
|
(4,350)
|
|
Net Cruise Cost
Excluding Fuel
|
|
|
39,847
|
|
|
|
14,811
|
|
|
|
86,524
|
|
|
|
82,294
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
(1,406)
|
|
|
|
(310)
|
|
|
|
(4,012)
|
|
|
|
(1,911)
|
|
National Geographic
fee amortization
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(727)
|
|
Other
|
|
|
(328)
|
|
|
|
(549)
|
|
|
|
(1,007)
|
|
|
|
(573)
|
|
Adjusted Net
Cruise Cost Excluding Fuel
|
|
$
|
38,113
|
|
|
$
|
13,952
|
|
|
$
|
81,505
|
|
|
$
|
79,083
|
|
Adjusted Net
Cruise Cost
|
|
$
|
40,470
|
|
|
$
|
14,978
|
|
|
$
|
85,385
|
|
|
$
|
83,433
|
|
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 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.
View original
content:https://www.prnewswire.com/news-releases/lindblad-expeditions-holdings-inc-reports-2021-third-quarter-financial-results-301413727.html
SOURCE Lindblad Expeditions Holdings, Inc.