Lindblad Expeditions Holdings, Inc. Reports 2017 Third Quarter Financial Results – iCrowdNewswire
 
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Nov 7, 2017 1:10 PM ET

Lindblad Expeditions Holdings, Inc. Reports 2017 Third Quarter Financial Results

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iCrowdNewswire - Nov 7, 2017

NEW YORK —

Third Quarter 2017 Highlights:

  • Tour revenues increased 20% to $84.6 million
  • Net income attributable to Lindblad increased 25% to $9.3 million
  • Adjusted EBITDA increased 33% to $23.1 million
  • Lindblad segment Net Yield increased 4% to $1,048 and Occupancy was 91%
 

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, 2017.

Sven-Olof Lindblad, President and Chief Executive Officer, said “Lindblad’s strategic investment to expand our capacity to capitalize on the rapidly growing demand for expedition travel has begun to deliver significant returns. Bookings in 2017 are up over 30% versus a year ago and the Company delivered strong third quarter financial growth fueled by the July launch of our first new-build vessel, the National Geographic Quest, while at the same time maintaining high occupancy levels across our existing fleet.  This is only the first step in expanding our inventory and we are well under way on construction of her sister ship, the National Geographic Venture, which will be delivered in the fourth quarter of 2018. We also announced this morning that we have signed a contract for a new, state-of-the-art, polar ice class vessel. This contract includes options for two additional ships and these vessels will enable us to further immerse our guests in unique and authentic itineraries and broaden our ability to build additional shareholder value in the years to come.”   

THIRD QUARTER RESULTS

Tour Revenues

Third quarter tour revenues of $84.6 million increased $13.8 million, or 20%, as compared to the same period in 2016. The increase was driven by $11.3 million of additional contributions from the Lindblad segment and a $2.5 millionincrease at Natural Habitat. The third quarter of 2017 also included the cancellation of four highly booked voyages on the National Geographic Quest due to a delay in the launch of the vessel. Excluding the impact of these voyage cancellations and additional insurance proceeds received related to the National Geographic Orion, the Company estimates that total tour revenues would have increased 24% over the prior year period to $87.4 million.

Lindblad segment tour revenues of $67.5 million increased 20% compared to the third quarter a year ago primarily due to an $11.6 million increase in ticket revenue, mostly related to the launch of the National Geographic Quest in July of 2017. The growth in ticket revenue also reflects a 4% increase in Net Yield to $1,048, due to increased pricing and changes in itineraries, as well as Occupancy of 91%, which was in line with the same period a year ago. Available Guest Nights increased by 16% primarily due to the addition of the National Geographic Quest to the fleet and from the cancellation of a voyage on the National Geographic Orion in the third quarter of 2016. Excluding the impact of the National Geographic Quest cancellations and additional insurance proceeds received related to the National Geographic Orion, the Company estimates that Lindblad segment tour revenue would have increased 25% over the prior year period to $70.3 million.

Natural Habitat revenues of $17.1 million increased 17% primarily due to higher ticket revenue from additional guests in the current year.  

Net Income

Net income attributable to Lindblad for the third quarter was $9.3 million$0.20 per diluted share, as compared with net income attributable to Lindblad of $7.4 million$0.16 per diluted share, in the third quarter of 2016.  The $1.9 millionimprovement was primarily due to the higher operating results as well as lower depreciation and amortization due mainly to the accelerated depreciation associated with the retirement of the National Geographic Endeavour a year ago. The third quarter of 2017 also includes $1.7 million of additional stock-based compensation expense primarily related to grants under the 2016 CEO Share Allocation Plan, which provides our CEO the ability to transfer shares from his existing holdings in the Company to eligible employees, as well as $1.4 million in executive severance expense.

Adjusted EBITDA

Third quarter Adjusted EBITDA of $23.1 million increased $5.7 million, or 33%, as compared to the same period in 2016.  The increase was due to $4.5 million of additional contributions from the Lindblad segment and a $1.2 million increase at Natural Habitat. Excluding the impact of the voyage cancellations and insurance proceeds, the Company estimates that Adjusted EBITDA would have increased 46% over the prior year period to $25.3 million.

Lindblad segment Adjusted EBITDA of $21.3 million increased 27% compared to the third quarter a year ago primarily due to the revenue growth partially offset by increased costs related to the launch of the National Geographic Quest. Excluding the impact of the voyage cancellations and insurance proceeds, the Company estimates that Lindblad segment Adjusted EBITDA would have increased 40% over the prior year period to $23.5 million.

Natural Habitat Adjusted EBITDA of $1.8 million increased $1.2 million compared to the third quarter a year ago primarily due to the revenue growth partially offset by higher cost of tours from additional guests and increased personnel costs.

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

September 30,

 

September 30,

(In thousands)

2017

 

2016

 

Change

%

 

2017

 

2016 *

 

Change

%

              

Tour revenues:

             

Lindblad

$     67,451

 

$     56,175

 

$     11,276

20%

 

$  167,891

 

$  165,936

 

$       1,955

1%

Natural Habitat

17,133

 

14,599

 

2,534

17%

 

35,392

 

20,282

 

15,110

74%

Total tour revenues

$     84,584

 

$     70,774

 

$     13,810

20%

 

$  203,283

 

$  186,218

 

$     17,065

9%

  Impact of voyage cancellations

2,860

 

 

2,860

 NA 

 

12,478

 

 

12,478

NA

Total tour revenues excluding voyage cancellations

$     87,444

 

$     70,774

 

$     16,670

24%

 

$  215,761

 

$  186,218

 

$     29,543

16%

              

Operating (loss) income:

             

Lindblad

$     12,070

 

$       9,863

 

$       2,207

22%

 

$     12,386

 

$     19,038

 

$     (6,652)

(35%)

Natural Habitat

1,479

 

306

 

1,173

383%

 

873

 

(488)

 

1,361

(279%)

Total operating income

13,549

 

10,169

 

3,380

33%

 

13,259

 

18,550

 

(5,291)

(29%)

  Impact of voyage cancellations

1,981

 

 

1,981

NA

 

8,923

 

 

8,923

NA

Total operating income excluding voyage cancellations

$     15,530

 

$     10,169

 

$       5,360

53%

 

$     22,182

 

$     18,550

 

$       3,632

20%

              

Adjusted EBITDA:

             

Lindblad

$     21,276

 

$     16,741

 

$       4,535

27%

 

$     36,766

 

$     40,117

 

$     (3,351)

(8%)

Natural Habitat

1,838

 

625

 

1,213

194%

 

1,896

 

42

 

1,854

NA

Total adjusted EBITDA

23,114

 

17,366

 

5,748

33%

 

38,662

 

40,159

 

(1,497)

(4%)

  Impact of voyage cancellations

2,230

 

 

2,230

NA

 

9,172

 

 

9,172

NA

Total adjusted EBITDA excluding voyage cancellations

$     25,344

 

$     17,366

 

$       7,978

46%

 

$     47,834

 

$     40,159

 

$       7,675

19%

              

* 2016 results for Natural Habitat represent activity from the acquisition date of May 2016 through September 30, 2016.

The impact of the cancelled voyages on tour revenues was calculated as booked tour revenue at the time of cancellation less insurance proceeds. The impact of the cancelled voyages on operating income and Adjusted EBITDA was calculated as booked tour revenue at the time of cancellation less insurance proceeds and estimated operating costs.

Liquidity

The Company’s cash and cash equivalents were $112.3 million as of September 30, 2017, as compared with $135.4 millionas of December 31, 2016. The decrease primarily reflects purchases of property and equipment of $44.0 million, mostly for the construction of the two new coastal vessels, and $6.2 million used to repurchase stock and warrants, partially offset by $29.4 million in net cash provided by operating activities due in large part to advanced bookings for future travel.

Free cash flow use was $14.6 million for the nine months ended September 30, 2017 as compared with a use of $34.9 million in the same period of 2016. The improved results reflect the increased operating performance, higher bookings for future travel and lower capital expenditures for new vessels. Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment.

LINDBLAD FLEET ACTIVITIES

The Company expanded its travel offerings in July 2017 with the launch of the National Geographic Quest, which sailed in Alaska and British Columbia during the summer before voyaging to Costa Rica and Panama for the winter season. The Company’s second new-build coastal vessel, the National Geographic Venture, is currently expected to launch in the fourth quarter of 2018.

Following the quarter, the Company announced that it had signed a contract with Ulstein Verft to build a new polar ice class vessel for delivery in January 2020, with potential accelerated delivery to November 2019. This state-of-the-art vessel will join the National Geographic Explorer and National Geographic Orion as the third ice class ship in the Lindblad National Geographic fleet, with the ability to voyage anywhere around the globe and specializing in polar travel.  She 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. The contract with Ulstein Verft also includes options to build two additional polar ice class vessels, the first for delivery twelve months after the initial vessel and the second for delivery twelve months thereafter.

STOCK AND WARRANT REPURCHASE PLAN

The Company has a $35.0 million stock and warrant repurchase plan in place which authorizes the Company to purchase from time to time the Company’s outstanding stock and warrants through open market repurchases and/or in privately negotiated transactions based on market and business conditions, applicable legal requirements and other factors. There were no purchases during the third quarter and as of November 6, 2017, the Company had repurchased 5.4 million warrants and 855,776 shares under the plan for a total of $22.2 million and had $12.8 million remaining under the plan. As of November 3, 2017, there were 45.4 million common shares and 10.7 million warrants outstanding.

FINANCIAL OUTLOOK

The Company’s current expectations for the full year 2017 are as follows:

  • Tour revenues of $266 – $270 million
  • Adjusted EBITDA of $42 – $44 million

This outlook includes the estimated $3.6 million revenue impact and $3.0 million Adjusted EBITDA impact associated with the cancellation of four voyages during the third quarter due to the delayed launch of the National Geographic Quest. The current outlook also includes the estimated $8.9 million revenue impact and estimated $6.2 millionAdjusted EBITDA impact associated with the first quarter cancellation of four voyages on the National Geographic Orion and two voyages on the National Geographic Sea Lion for necessary repairs. As of October 31, 2017, the Lindblad segment had 99% of full year 2017 projected guest ticket revenues on the books versus 101% of full year 2016 revenue at the same time last year. Overall, bookings thus far in 2017 have increased over 30% compared with the same period a year ago. The Company continues to anticipate it will achieve its long-range revenue and Adjusted EBITDA targets.

NON-GAAP FINANCIAL MEASURES

The Company uses a variety of operational and financial metrics, including non-GAAP financial measures such as Adjusted EBITDA, Occupancy, Net Yields and Net Cruise Costs, to enable it to analyze its performance and financial condition. The Company utilizes these financial measures to manage its business on a day-to-day basis and believes that they are the most relevant measures of performance. Some of these measures are commonly used in the cruise and tourism industry to evaluate performance. The Company believes these non-GAAP measures provide expanded insight to assess revenue and cost performance, in addition to the standard GAAP-based financial measures. There are no specific rules or regulations for determining non-GAAP measures, and as such, they may not be comparable to measures used by other companies within the industry.

The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The definitions of non-GAAP financial measures along with a reconciliation of non-GAAP financial information to GAAP are included in the supplemental financial schedules beginning on page 10.

Conference Call Information

The Company has scheduled a conference call at 8:30 a.m. Eastern Time on November 7, 2017 to discuss the earnings of the Company. The conference call can be accessed by dialing (844) 378-6487 (United States), (855) 669-9657 (Canada) or (412) 542-4182 (outside the U.S.). A replay of the call will be available at the Company’s investor relations website, http://www.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 ChurchillCanada, Alaskan grizzly bear adventures and African safaris.

Forward Looking Statements

Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the Company’s financial projections and may also generally be identified as such because the context of such statements will include words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or words of similar import. Similarly, statements that describe the Company’s financial guidance or future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause results to differ materially from those expected, including, but not limited to, the following: (i) changes adversely affecting the business in which the Company is engaged; (ii) management of the Company’s growth and its ability to execute on its planned growth; (iii) general economic conditions; (iv) the Company’s business strategy and plans; (v) unscheduled disruptions in our business due to weather events, mechanical failures, or other events; (vi) compliance with laws and regulations; (vii) compliance with the financial and/or operating covenants in the Company’s Second amended and restated credit agreement; (viii) adverse publicity regarding the cruise industry in general; (ix) loss of business due to competition; (x) the result of future financing efforts; (xi) the inability to meet revenue and Adjusted EBITDA projections; and (xii) 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 data)

    
  

As of 

 
 

September 30,
2017

 

December 31,
2016

 

(Unaudited)

  

ASSETS

   

Current Assets:

   

Cash and cash equivalents

$       112,316

 

$       135,416

Restricted cash and marketable securities

8,704

 

9,015

Inventories

1,783

 

1,665

Marine operating supplies

4,539

 

4,142

Prepaid expenses and other current assets

22,887

 

20,782

  Total current assets

150,229

 

171,020

    

Property and equipment, net

219,498

 

186,236

Goodwill

22,105

 

22,105

Intangibles, net

9,948

 

11,132

Other long-term assets

10,831

 

13,090

Deferred tax assets

7,916

 

4,118

  Total assets

$       420,527

 

$       407,701

    
    

LIABILITIES 

   

Current Liabilities:

   

Unearned passenger revenues

$         99,740

 

$         91,501

Accounts payable and accrued expenses

23,810

 

30,662

Long-term debt – current

1,750

 

1,750

  Total current liabilities

125,300

 

123,913

    

Long-term debt, less current portion

164,165

 

164,128

Other long-term liabilities

703

 

681

  Total liabilities

290,168

 

288,722

    

COMMITMENTS AND CONTINGENCIES

   
    
    

REDEEMABLE NONCONTROLLING INTEREST

5,319

 

5,170

    

STOCKHOLDERS’ EQUITY

   

Preferred stock, $0.0001 par value, 1,000,000 shares authorized;

   

0 shares issued and outstanding

 

Common stock, $0.0001 par value, 200,000,000 shares authorized;

   

45,155,621 and 45,659,762 issued and outstanding as of

   

September 30, 2017, and December 31, 2016, respectively

5

 

5

Additional paid-in capital

45,213

 

43,097

Retained earnings 

79,822

 

70,707

Total stockholders’ equity

125,040

 

113,809

Total liabilities, redeemable noncontrolling interest and stockholders’ equity

$       420,527

 

$       407,701

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(In thousands, except share and per share data)

        (Unaudited)

        
 

For the Three Months 
Ended September 30,

 

For the Nine Months 
Ended September 30,

 

2017

 

2016

 

2017

 

2016

        

Tour revenues

$         84,584

 

$         70,774

 

$       203,283

 

$       186,218

        

Cost of tours

38,480

 

32,446

 

99,780

 

87,111

Gross profit

46,104

 

38,328

 

103,503

 

99,107

        

Operating expenses:

       

General and administrative

16,526

 

12,915

 

46,710

 

36,740

Selling and marketing

11,676

 

10,164

 

31,521

 

29,294

Depreciation and amortization

4,354

 

5,080

 

12,012

 

14,523

  Total operating expenses

32,556

 

28,159

 

90,243

 

80,557

        

Operating income

13,548

 

10,169

 

13,260

 

18,550

        

Other income (expense):

       

Gain (loss) on foreign currency

224

 

(5)

 

1,047

 

(291)

Other income (expense)

59

 

(38)

 

(97)

 

(38)

Interest expense, net

(2,802)

 

(2,476)

 

(7,192)

 

(7,914)

  Total other expense

(2,519)

 

(2,519)

 

(6,242)

 

(8,243)

        

Income before income taxes

11,029

 

7,650

 

7,018

 

10,307

        

Income tax expense (benefit)

1,586

 

203

 

(473)

 

(3,113)

        

Net income

9,443

 

7,447

 

7,491

 

13,420

        

Net income (loss) attributable to noncontrolling interest

165

 

29

 

149

 

(119)

        

Net income attributable to Lindblad

$           9,278

 

$           7,418

 

$           7,342

 

$         13,539

        

Common stock

       

Net income available to common stockholders

$           9,278

 

$           7,418

 

$           7,342

 

$         13,539

        

Weighted average shares outstanding

       

  Basic

44,457,656

 

45,776,443

 

44,528,878

 

45,639,608

  Diluted

45,718,513

 

46,541,257

 

45,609,560

 

46,329,880

        

Net income per share attributable to Lindblad

       

  Basic

$              0.21

 

$              0.16

 

$              0.16

 

$              0.30

  Diluted

$              0.20

 

$              0.16

 

$              0.16

 

$              0.29

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

For the Nine Months
Ended
September 30,

 

2017

 

2016

Cash Flows From Operating Activities

   

Net income 

$             7,491

 

$           13,420

Adjustments to reconcile net income to net cash provided by operating activities:

   

Depreciation and amortization

12,012

 

14,523

Amortization of National Geographic fee

2,180

 

2,180

Amortization of debt discount, deferred financing and other, net

1,662

 

2,582

Stock-based compensation

9,464

 

3,982

Deferred income taxes

(2,017)

 

(3,709)

(Gain) loss on currency translation

(1,047)

 

291

Changes in operating assets and liabilities 

   

Inventories and marine operating supplies

(516)

 

1,505

Prepaid expenses and other current assets

(1,087)

 

1,098

Unearned passenger revenues

8,062

 

(8,620)

Other long-term assets

192

 

(3,159)

Other long-term liabilities

14

 

22

Accounts payable and accrued expenses 

(6,964)

 

(8,430)

Net cash provided by operating activities

29,446

 

15,685

    

Cash Flows From Investing Activities

   

Acquisition  of Natural Habitat, Inc., net of $4,904 cash acquired

 

(9,946)

Purchases of property and equipment

(44,089)

 

(50,598)

Redemption of restricted cash and marketable securities

311

 

(1,907)

Net cash used in investing activities

(43,778)

 

(62,451)

    

Cash Flows From Financing Activities

   

Payment of deferred financing costs

(312)

 

(1,565)

Repayments of long-term debt

(1,312)

 

(1,312)

       Repurchase of employee shares as part of cashless exercise of options or vesting of
            restricted shares for tax purposes

(1,182)

 

(2,695)

Repurchase of warrants and common shares

(6,166)

 

(5,420)

Net cash used in financing activities

(8,972)

 

(10,992)

Effect of exchange rate changes on cash

204

 

(128)

    

Net decrease in cash and cash equivalents

(23,100)

 

(57,886)

    

Cash and cash equivalents as of beginning of period

135,416

 

206,903

    

Cash and cash equivalents as of end of period

$         112,316

 

$         149,017

    

Supplemental disclosures of cash flow information:

   

Cash paid during the period for:

   

Interest

$             7,841

 

$             7,427

Income taxes

$                965

 

$                992

    

Non-cash investing and financing activities:

   

Additional paid-in capital exercise proceeds of option shares

$                168

 

$             1,123

Additional paid-in capital exchange proceeds used for option shares

(168)

 

(1,123)

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Supplemental Financial Schedules

(In thousands, except guest metrics)

(Unaudited)

        

Reconciliation of Net Income to Adjusted EBITDA

       

Consolidated

       

(In thousands)

For the Three Months
Ended September 30,

 

For the Nine Months
Ended September 30,

 

2017

 

2016

 

2017

 

2016*

Net income

$             9,443

 

$             7,447

 

$             7,491

 

$           13,420

Income tax expense (benefit)

1,586

 

203

 

(473)

 

(3,113)

Interest expense, net

2,802

 

2,476

 

7,192

 

7,914

Depreciation and amortization

4,354

 

5,080

 

12,012

 

14,523

Gain (loss) on foreign currency

(224)

 

5

 

(1,047)

 

291

Other (income) expense, net

(59)

 

38

 

97

 

38

Stock-based compensation

3,057

 

1,359

 

9,464

 

3,982

National Geographic fee amortization

727

 

727

 

2,180

 

2,180

Reorganization costs

29

 

 

346

 

Acquisition-related expenses

 

31

 

 

924

One-time severance costs

1,400

 

 

1,400

 

Adjusted EBITDA – Consolidated

23,114

 

17,366

 

38,662

 

40,159

Impact of voyage cancellations

2,230

 

 

9,172

 

Adjusted EBITDA – Consolidated excluding impact of
voyage cancellations

$         25,344

 

$         17,366

 

$         47,834

 

$         40,159

        

* 2016 results for Natural Habitat represent activity from the acquisition date of May 2016 through September 30, 2016

 

Reconciliation of Operating Income to Adjusted EBITDA

      

Lindblad Segment

       

(In thousands)

For the Three Months

 Ended September 30,

 

For the Nine Months
Ended September 30,

 

2017

 

2016

 

2017

 

2016

Operating income

$           12,070

 

$             9,863

 

$           12,387

 

$           19,038

Depreciation and amortization

3,994

 

4,761

 

10,989

 

13,993

Stock-based compensation

3,057

 

1,359

 

9,464

 

3,982

National Geographic fee amortization

727

 

727

 

2,180

 

2,180

Reorganization costs

29

 

 

346

 

Acquisition-related expenses

 

31

 

 

924

One-time severance costs

1,400

 

 

1,400

 

Adjusted EBITDA – Lindblad segment

21,276

 

16,741

 

36,766

 

40,117

Impact of voyage cancellations

2,230

 

 

9,172

 

Adjusted EBITDA – Lindblad segment excluding impact
of voyage cancellations

$         23,506

 

$         16,741

 

$         45,938

 

$         40,117

        

Reconciliation of Operating Income to Adjusted EBITDA

      

Natural Habitat Segment

       

(In thousands)

For the Three Months
Ended September 30,

 

For the Nine Months

 Ended September 30,

 

2017

 

2016

 

2017

 

2016 *

Operating income (loss)

$             1,478

 

$                306

 

$                873

 

$              (488)

Depreciation and amortization

360

 

319

 

1,023

 

530

Adjusted EBITDA – Natural Habitat segment

$             1,838

 

$                625

 

$             1,896

 

$                  42

        

* 2016 results for Natural Habitat represent activity from the acquisition date of May 2016 through September 30, 2016

 

Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities

    
        
      

(In thousands)

   

For the Nine Months
Ended September 30,

     

2017

 

2016

        

Net cash provided by operating activities

    

$         29,446

 

$         15,685

Less: purchases of property and equipment

    

(44,089)

 

(50,598)

Free Cash Flow

    

$       (14,643)

 

$       (34,913)

        
        

Guest Metrics – Lindblad Segment

       
 

For the Three Months
Ended September 30,

 

For the Nine Months

 Ended September 30,

 

2017

 

2016

 

2017

 

2016

Available Guest Nights

56,398

 

48,595

 

142,291

 

141,665

Guest Nights Sold

51,122

 

44,139

 

124,951

 

129,633

Occupancy

90.6%

 

90.8%

 

87.8%

 

91.5%

Maximum Guests

7,518

 

6,177

 

17,727

 

17,118

Number of Guests

6,846

 

5,632

 

15,758

 

15,742

Voyages

97

 

84

 

244

 

231

      

Calculation of Gross Yield and Net Yield – Lindblad Segment

      

(In thousands, except for Available Guest Nights, Gross and
Net Yield)

For the Three Months

 Ended September 30,

 

For the Nine Months
Ended September 30,

2017

 

2016

 

2017

 

2016

Guest ticket revenues

$         61,715

 

$         50,089

 

$       147,504

 

$       146,613

Other tour revenues

5,736

 

6,086

 

20,387

 

19,323

Tour Revenues

67,451

 

56,175

 

167,891

 

165,936

Less: Orion Insurance Proceeds

(248)

 

 

(2,148)

 

Adjusted Tour Revenues

67,203

 

56,175

 

165,743

 

165,936

Less: Commissions 

(4,559)

 

(3,957)

 

(12,321)

 

(11,725)

Less: Other tour expenses

(3,532)

 

(3,211)

 

(10,622)

 

(11,757)

Net Revenue

$         59,112

 

$         49,007

 

$       142,800

 

$       142,454

Available Guest Nights

56,398

 

48,595

 

142,291

 

141,665

Gross Yield 

$           1,192

 

$           1,156

 

$           1,165

 

$           1,171

Net Yield 

1,048

 

1,008

 

1,004

 

1,006

        

Calculation of Net Cruise Cost Metrics – Lindblad Segment

      
       

(In thousands, except for Available Guest Nights,Gross and
Net Cruise Cost)

For the Three Months

 Ended September 30,

 

For the Nine Months
Ended September 30,

 

2017

 

2016

 

2017

 

2016

Cost of tours

$         27,374

 

$         22,239

 

$         76,915

 

$         72,632

Plus: Merger-related expenses

 

 

 

Plus: Selling and marketing

10,358

 

8,848

 

28,629

 

27,511

Plus: General and administrative

13,656

 

10,464

 

38,972

 

32,762

Gross Cruise Cost

51,388

 

41,551

 

144,516

 

132,905

Less: Commission expense

(4,559)

 

(3,957)

 

(12,321)

 

(11,725)

Less: Other tour expenses

(3,532)

 

(3,211)

 

(10,622)

 

(11,757)

Net Cruise Cost

43,297

 

34,383

 

121,573

 

109,423

Less: Fuel expense

(1,894)

 

(1,645)

 

(4,858)

 

(5,307)

Net Cruise Cost Excluding Fuel

41,403

 

32,738

 

116,715

 

104,116

Non-GAAP Adjustments: 

       

Stock-based compensation

(3,057)

 

(1,359)

 

(9,464)

 

(3,982)

National Geographic fee amortization

(727)

 

(727)

 

(2,180)

 

(2,180)

Acquisition-related expenses

 

(31)

 

 

(924)

One-time severance costs

(1,400)

 

 

(1,400)

 

Adjusted Net Cruise Cost Excluding Fuel

$         36,220

 

$         30,621

 

$       103,671

 

$         97,030

Adjusted Net Cruise Cost

$         38,114

 

$         32,266

 

$       108,529

 

$       102,337

Available Guest Nights

56,398

 

48,595

 

142,291

 

141,665

Gross Cruise Cost per Available Guest Night

$               911

 

$               855

 

$           1,016

 

$               938

Net Cruise Cost per Available Guest Night

768

 

708

 

854

 

772

Net Cruise Cost Excl. Fuel per Available Guest Night

734

 

674

 

820

 

735

Adj. Net Cruise Cost Excl. Fuel per Avail. Guest Night

642

 

630

 

729

 

685

Adjusted Net Cruise Cost per Available Guest Night

676

 

664

 

763

 

722

Operational and Financial Metrics

Adjusted EBITDA is net income (loss) excluding depreciation and amortization, net interest expense, other income (expense), and income tax benefit (expense), 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, merger-related expenses, and acquisition-related expenses. The Company believes Adjusted EBITDA, when considered along with other performance measures, is a useful measure as it reflects certain operating drivers of the business, such as sales growth, operating costs, selling and administrative expense, and other operating income and expense. The Company believes Adjusted EBITDA helps provide a more complete understanding of the underlying operating results and trends and an enhanced overall understanding of the Company’s financial performance and prospects for the future. While Adjusted EBITDA is not a recognized measure under GAAP, management uses this financial measure to evaluate and forecast business performance. Adjusted EBITDA is not intended to be a measure of liquidity or cash flows from operations or a measure comparable to net income as it does not take into account certain requirements, such as unearned passenger revenues, capital expenditures and related depreciation, principal and interest payments, and tax payments. The Company’s use of Adjusted EBITDA may not be comparable to other companies within the industry.

The following metrics apply to the Lindblad segment:

Adjusted Net Cruise Cost represents Net Cruise Cost adjusted for Non-GAAP other supplemental adjustments which include certain non-operating items such as stock-based compensation, the National Geographic fee amortization, merger-related expenses, and acquisition-related expenses.

Available Guest Nights is a measurement of capacity and represents double occupancy per cabin (except single occupancy for a single capacity cabin) multiplied by the number of cruise days for the period. The Company also records the number of guest nights available on its limited land programs in this definition.

Gross Cruise Cost represents the sum of cost of tours plus merger-related expenses, selling and marketing expense, and general and administrative expense.

Gross Yield represents tour revenues less insurance proceeds divided by Available Guest Nights.

Guest Nights Sold represents the number of guests carried for the period multiplied by the number of nights sailed within the period.

Maximum Guests is a measure of capacity and represents the maximum number of guests in a period and is based on double occupancy per cabin (except single occupancy for a single capacity cabin).

Net Cruise Cost represents Gross Cruise Cost excluding commissions and certain other direct costs of guest ticket revenues and other tour revenues.

Net Cruise Cost Excluding Fuel represents Net Cruise Cost excluding fuel costs.

Net Revenue represents tour revenues less insurance proceeds, commissions and direct costs of other tour revenues.

Net Yield represents Net Revenue divided by Available Guest Nights.

Number of Guests represents the number of guests that travel with the Company in a period.

Occupancy is calculated by dividing Guest Nights Sold by Available Guest Nights.

Voyages represent the number of ship expeditions completed during the period.

 

SOURCE Lindblad Expeditions Holdings, Inc.

Related Links

http://www.expeditions.com

Contact Information:

Lindblad Expeditions Holdings, Inc.

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