Press Release

Lindblad Expeditions Holdings, Inc. Reports 2016 Fourth Quarter and Full Year Financial Results

Company Release - 3/7/2017 7:30 AM ET

NEW YORK, March 7, 2017 /PRNewswire/ --

 Full Year 2016 Highlights:

  • Tour Revenues increased 15% to $242.3 million
  • Net Income of $5.1 million as compared with $19.7 million in 2015
  • Adjusted EBITDA of $41.7 million as compared with $46.8 million in 2015
  • Repurchased $10.3 million of stock and warrants
  • Lindblad segment Net Yield increased to $976 and Occupancy remained over 90%
  • Expanded land based travel expeditions with acquisition of Natural Habitat in May 2016
  • Launched the National Geographic Endeavor II in the Galápagos and charter expeditions to Cuba in December 2016

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 fourth quarter and calendar year ended December 31, 2016.

Sven-Olof Lindblad, President and Chief Executive Officer, said "Lindblad's unique expedition offerings and our long history of delivering unparalleled guest experiences enabled us to expand our Net Yield in 2016, while generating occupancy rates over 90%, despite the industry headwinds earlier in the year.    We also took steps to further position ourselves to capitalize on the growing demand for high quality expedition travel.  In December, we launched the National Geographic Endeavor II in the Galápagos and began offering immersive expeditions on a charter vessel in Cuba.  Additionally, throughout 2016 we made significant progress on the construction of our two new coastal vessels, which are on track to be delivered in the second quarter of 2017 and 2018.  With strong booking trends, a loyal customer base, an expanding fleet and a proven track record of providing authentic and differentiated expedition offerings, we are poised to deliver real growth in 2017 and remain firmly on track to achieve our long-term financial targets."

FULL YEAR RESULTS

Tour Revenues

Full year tour revenues of $242.3 million increased $32.4 million, or 15%, as compared to 2015, primarily due to contributions from Natural Habitat, which was acquired in May of 2016. Lindblad segment revenues of $207.8 million decreased $2.1 million, or 1%, compared to 2015, primarily due to a $2.2 million decrease in other tour revenues.  Guest ticket revenues were in-line with a year ago as higher pricing across most itineraries was offset by a slight decline in Available Guest Nights and Occupancy. 

Lindblad segment Net Yield increased 1% in 2016 to $976 as compared with the prior year, primarily as a result of increased pricing.  The slight decrease in Available Guest Nights was mainly due to planned repositioning of the National Geographic Explorer and the National Geographic Orion during the third quarter, as well as from cancellations on the National Geographic Orion for unplanned maintenance.  Occupancy declined to 90.3% from 91.8% primarily due to a slowdown in activity on the National Geographic Endeavour in anticipation of the launch of the National Geographic Endeavour II in December 2016. 

Net Income

Net income of $5.1 million for 2016, $0.10 per diluted share, decreased $14.7 million as compared with $19.7 million, $0.43 per diluted share, in 2015.  Full year 2016 results include an additional $6.8 million of depreciation and amortization and $1.2 million of other expense primarily related to the retirement of the National Geographic Endeavor.  Full year 2015 results include $13.3 million of merger related expense and $12.5 million of pre-tax income related to the July 2015 merger with Capitol Acquisition Corp. II. 

Adjusted EBITDA

Full year Adjusted EBITDA of $41.7 million decreased $5.1 million, or 11%, compared to the same period in 2015, due to an $8.2 million decrease at the Lindblad segment, partially offset by $3.0 million of contributions from Natural Habitat. The decline in the Lindblad segment primarily reflects the slightly lower revenues in 2016, as well as increased personnel costs related to accelerated hiring in support of the execution of the Company's long range growth plan.  Additionally, 2016 results included legal and administrative costs associated with a full year of operations as a public company and higher cost of tours, mainly due to higher planned drydock spending, partially offset by lower fuel costs.

FOURTH QUARTER RESULTS

Tour Revenues

Fourth quarter tour revenues of $56.1 million increased $9.7 million, or 21%, as compared to the fourth quarter of 2015, primarily due to contributions from Natural Habitat, which was acquired in May of 2016. Lindblad segment revenues of $41.9 million decreased $4.6 million, or 10%, compared to the fourth quarter a year ago, primarily due to a $4.2 million decline in guest ticket revenues as higher pricing across most itineraries was more than offset by lower Occupancy and cancellation of a voyage on the National Geographic Orion due to unplanned engine repairs. 

Lindblad segment Net Yield decreased 12% in the fourth quarter to $872 as compared with the same period a year ago, primarily as a result of Occupancy declining to 86.3% as compared with 93.3% in the same period a year ago.  The decrease was mainly due to lower bookings during the first half of 2016 related to concerns over the Zika virus and terrorism and a slowdown in activity on the National Geographic Endeavour in anticipation of the launch of the National Geographic Endeavour II in December 2016.  Available Guest Nights increased 1% versus the fourth quarter a year ago, primarily due to the launch of charter expeditions in Cuba, partially offset by the voyage cancellation on the National Geographic Orion.

Net Income

Net loss of $8.4 million for 2016, $0.19 per diluted share, decreased $7.9 million from the $0.4 million net loss, $0.01 per diluted share, reported in the fourth quarter a year ago, primarily from lower operating results in the current year, a $3.0 million tax benefit in 2015 and $1.2 million of other expense in 2016 primarily related to the retirement of the National Geographic Endeavor

Adjusted EBITDA

Fourth quarter Adjusted EBITDA of $1.5 million decreased $3.2 million compared to the same period in 2015 due to a $6.2 million decrease at the Lindblad segment, partially offset by $3.0 million of contributions from Natural Habitat. The decline in the Lindblad segment primarily reflects the lower revenues, increased personnel and marketing costs related to the fleet expansion as the Company executes its long-range growth plan. 

Segment Results


For the Three Months Ended


For the Years Ended


December 31,


December 31,

(In thousands)

2016


2015


Change

%


2016


2015


Change

%















Tour revenues:














Lindblad

$    41,900


$    46,472


$  (4,572)

(10%)


$  207,836


$  209,985


$  (2,149)

(1%)

Natural Habitat

14,228


-


14,228

NA


34,510


-


34,510

NA

Total tour revenues

$    56,128


$    46,472


$    9,656

21%


$  242,346


$  209,985


$  32,361

15%















Operating income:














Lindblad

$    (7,245)


$       (641)


$  (6,604)

1030%


$    11,794


$    15,502


$  (3,708)

(24%)

Natural Habitat

2,676


-


2,676

NA


2,187


-


2,187

NA

Total operating income

$    (4,569)


$       (641)


$  (3,928)

613%


$    13,981


$    15,502


$  (1,521)

(10%)















Adjusted EBITDA:














Lindblad

$    (1,493)


$      4,744


$  (6,237)

(131%)


$    38,624


$    46,801


$  (8,177)

(17%)

Natural Habitat

2,997


-


2,997

NA


3,038


-


3,038

NA

Total adjusted EBITDA

$      1,504


$      4,744


$  (3,240)

(68%)


$    41,662


$    46,801


$  (5,139)

(11%)

 

Liquidity

The Company's cash and cash equivalents were $135.4 million as of December 31, 2016 as compared with $206.9 million as of December 31, 2015. The decrease primarily reflects the $31.4 million in net cash provided by operating activities, which was more than offset by purchases of property and equipment of $75.9 million, mostly related to the construction of two new coastal vessels and the acquisition and renovation of the National Geographic Endeavor II.  The current year also reflects $10.3 million of cash used to repurchase shares and warrants and net cash used in the acquisition of Natural Habitat of $9.9 million.

Free cash flow use of $44.5 million for the full year 2016 was a decline of $70.0 million from 2015 primarily due to the capital expenditures related to the new ships. Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment.

LINDBLAD FLEET ACTIVITIES

The National Geographic Endeavour II launched in December 2016, replacing the National Geographic Endeavour, and will operate year-round in the Galápagos Islands. Also in December 2016, the Company expanded its travel offerings with new expeditions in Cuba aboard the 42-guest Panorama II. The vessel is chartered for two years and will operate on a seasonal basis from December through March.

Additionally, the Company's two new-build coastal vessels are proceeding on schedule. The first vessel, National Geographic Quest, is expected to launch at the end of June 2017 and will sail in Alaska and British Columbia during the summer of 2017 before voyaging to Costa Rica and Panama to provide expeditions for the Northern Hemisphere winter season. The second vessel, National Geographic Venture, is expected to launch in June of 2018.

STOCK AND WARRANT REPURCHASE PLAN

Pursuant to its existing $35 million stock and warrant repurchase plan, during the fourth quarter the Company repurchased 854,550 warrants for $1.9 million at an average price of $2.25 and 308,718 shares of stock for $3.0 million at an average price of $9.72.  The Company has repurchased 5.4 million warrants and 651,593 shares through March 2, 2017 under the plan for $20.2 million and had $14.8 million remaining under the plan.  As of March 2, 2017 there were 45.2 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 $278 - $284 million (15 – 17% growth)
  • Adjusted EBITDA of $50 - $52 million (20 – 25% growth)

This outlook includes the impact of the cancellation of four voyages on the National Geographic Orion due to the engine repair.  As of February 28th, the Lindblad segment had 82% of full year 2017 projected guest ticket revenues on the books versus 86% of full year 2016 revenue at the same time last year.  The Company also 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 9.

Conference Call Information

The Company has scheduled a conference call at 8:30 a.m. Eastern Time on March 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, investors.expeditions.com.

About Lindblad Expeditions Holdings, Inc.

Lindblad Expeditions Holdings, Inc. is an expedition travel company that focuses on ship-based voyages through its Lindblad Expeditions brand and on land-based travel through its subsidiary, Natural Habitat Adventures, an adventure travel and ecotourism company with a focus on responsible nature travel.

Lindblad Expeditions works in partnership with National Geographic to inspire people to explore and care about the planet. The organizations work in tandem to produce innovative marine expedition programs and to promote conservation and sustainable tourism around the world. The partnership's educationally oriented voyages allow guests to interact with and learn from leading scientists, naturalists and researchers while discovering stunning natural environments, above and below the sea, through state-of-the-art exploration tools.

Natural Habitat partners with the World Wildlife Fund to offer and promote conservation and sustainable travel that directly protects nature. Natural Habitat's adventures include polar bear tours in Churchill, Canada, Alaskan grizzly bear adventures and African safaris.

Forward Looking Statements

Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the Company's financial projections and may also generally be identified as such because the context of such statements will include words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" or words of similar import. Similarly, statements that describe the Company's financial guidance or future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause results to differ materially from those expected, including, but not limited to, the following: (i) changes adversely affecting the business in which the Company is engaged; (ii) management of the Company's growth and its ability to execute on its planned growth; (iii) general economic conditions; (iv) 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 applicable laws and regulations; (vii) compliance with the financial and/or operating covenants in the Company's 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

Consolidated Balance Sheets

(In thousands, except share data)






As of December 31,






2016


2015





ASSETS




Current Assets:




Cash and cash equivalents

$       135,416


$       206,903

Restricted cash and marketable securities

9,015


8,460

Inventories

1,665


1,746

Marine operating supplies

4,142


4,969

Prepaid expenses and other current assets

20,782


12,266

     Total current assets

171,020


234,344





Property and equipment, net

186,236


125,471

Goodwill

22,105


-

Intangibles, net

11,132


6,227

Other long-term assets

13,090


12,355

Deferred tax assets

4,118


3,216

     Total assets

$       407,701


$       381,613









LIABILITIES 




Current Liabilities:




Unearned passenger revenues

$         91,501


$         76,604

Accounts payable and accrued expenses

30,662


25,968

Long-term debt - current

1,750


1,750

     Total current liabilities

123,913


104,322





Long-term debt, less current portion

164,128


162,693

Other long-term liabilities

681


677

     Total liabilities

288,722


267,692





COMMITMENTS AND CONTINGENCIES












REDEEMABLE NONCONTROLLING INTEREST

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;




45,659,762 and 45,224,881 issued and outstanding as of




 December 31, 2016, and 2015, respectively

5


5

Additional paid-in capital

43,097


48,073

Retained earnings 

70,707


65,843

Total stockholders' equity

113,809


113,921

Total liabilities, redeemable noncontrolling interest and stockholders' equity

$       407,701


$       381,613

 

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(In thousands, except shares, per share data)








For the Three Months Ended
December 31,


For the Years Ended
December 31,


2016


2015


2016


2015









Tour revenues

$         56,128


$         46,472


$       242,346


$       209,985









Cost of tours

31,866


24,086


118,977


95,417

Gross profit

24,262


22,386


123,369


114,568









Operating expenses:








General and administrative

15,156


11,477


51,896


38,994

Selling and marketing

9,778


8,163


39,072


35,083

Merger-related expenses

-


78


-


13,344

Depreciation and amortization

3,897


3,309


18,420


11,645

     Total operating expenses

28,831


23,027


109,388


99,066









Operating (loss) income

(4,569)


(641)


13,981


15,502









Other (expense) income:








(Loss) gain on foreign currency

(429)


7


(720)


(40)

(Loss) gain on transfer of assets

(45)


-


(83)


7,502

Other (expense) income, net

(1,173)


30


(1,173)


5,030

Interest expense, net

(2,232)


(2,875)


(10,146)


(10,901)

     Total other (expense) income

(3,879)


(2,838)


(12,122)


1,591









(Loss) income before income taxes

(8,448)


(3,479)


1,859


17,093









Income tax benefit

(87)


(3,037)


(3,200)


(2,649)









Net (loss) income

$         (8,361)


$            (442)


$           5,059


$         19,742









Net income attributable to noncontrolling interest

313


-


195


-

Net (loss) income attributable to Lindblad

$         (8,674)


$            (442)


$           4,864


$         19,742









Weighted average shares outstanding








     Basic

45,680,837


45,224,881


45,649,971


44,917,829

     Diluted

45,680,837


45,224,881


46,456,921


45,575,387









(Loss) earnings per share








     Basic

$          (0.19)


$           (0.01)


$             0.11


$             0.44

     Diluted

$          (0.19)


$           (0.01)


$             0.10


$             0.43

 

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)




      For the Years Ended



            December 31, 



2016


2015

Cash Flows From Operating Activities




Net income 

$      5,059


$    19,742

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




Depreciation and amortization

18,420


11,645

Amortization of National Geographic fee

2,907


1,397

Amortization of debt discount, deferred financing and other, net

1,144


3,576

Stock-based compensation

5,411


4,913

Deferred income taxes

(3,326)


(3,413)

Loss on currency translation

720


40

Loss (gain) on disposal and transfer of assets

819


(7,502)

Changes in operating assets and liabilities 




Inventories and marine operating supplies

1,073


(163)

Prepaid expenses and other current assets

629


(1,100)

Unearned passenger revenues

245


3,723

Other long-term assets

(3,642)


-

Other long-term liabilities

4


230

Accounts payable and accrued expenses 

1,964


7,214

Net cash provided by operating activities

31,427


40,302






Cash Flows From Investing Activities




Purchase of investment in CFMF

-


(68,088)

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

(9,946)


-

Purchases of property and equipment

(75,933)


(14,800)

Advance from shareholder

-


1,501

(Purchase) redemption of restricted cash and marketable securities

(555)


(125)

Net cash used in investing activities

(86,434)


(81,512)






Cash Flows From Financing Activities




Proceeds from long-term debt

-


175,000

Net proceeds from merger

-


186,806

Payments to shareholders for the merger

-


(90,000)

Payment of deferred financing costs

(1,565)


(11,045)

Repayments of long-term debt

(1,750)


(41,879)

Proceeds used in exchange of option shares

(2,694)


(4,879)

Repurchase of warrants and common shares

(10,343)


(5,478)

Net cash (used in) provided by financing activities

(16,352)


208,525

Effect of exchange rate changes on cash

(128)


(91)






Net (decrease) increase in cash and cash equivalents

(71,487)


167,224






Cash and cash equivalents as of beginning of period

206,903


39,679






Cash and cash equivalents as of end of period

$  135,416


$  206,903






Supplemental disclosures of cash flow information:




Cash paid during the period for:




Interest

$      9,896


$      7,003

Income taxes

$         998


$         379






Non-cash investing and financing activities:









Additional paid-in capital exercise proceeds of option shares

1,123


2,240

Additional paid-in capital exchange proceeds used for option shares

(1,123)


(2,240)

 

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES



Non-GAAP Information






Reconciliation of Net Income to Adjusted EBITDA



Consolidated









(In thousands)

For the Three Months Ended
December 31,


For the Years Ended
December 31,



2016


2015


2016


2015


Net income

$          (8,361)


$             (442)


$               5,059


$     19,742


Income tax (benefit) expense

(87)


(3,037)


(3,200)


(2,649)


Interest expense, net

2,232


2,875


10,146


10,901


Depreciation and amortization

3,897


3,309


18,420


11,645


Loss on foreign currency

429


(7)


720


40


Loss (gain) on transfer of assets

45


-


83


(7,502)


Other expense (income), net

1,173


(30)


1,173


(5,030)


Stock-based compensation

1,430


1,271


5,411


4,913


National Geographic fee amortization

727


727


2,907


1,397


Acquisition-related expenses

19


-


943


-


Merger-related expenses

-


78


-


13,344


Adjusted EBITDA - Consolidated

$          1,504


$          4,744


$           41,662


$   46,801


 

Reconciliation of Operating Income to Adjusted EBITDA



Lindblad Segment









(In thousands)

For the Three Months Ended
December 31,


For the Years Ended
December 31,



2016


2015


2016


2015


Operating income

$          (7,245)


$             (641)


$             11,794


$     15,502


Depreciation and amortization

3,576


3,309


17,569


11,645


Stock-based compensation

1,430


1,271


5,411


4,913


National Geographic fee amortization

727


727


2,907


1,397


Acquisition-related expenses

19


-


943


-


Merger-related expenses

-


78


-


13,344


Adjusted EBITDA - Lindblad segment

$        (1,493)


$          4,744


$           38,624


$   46,801


 

Reconciliation of Operating Income to Adjusted EBITDA




Natural Habitat Segment









(In thousands)

For the Three Months Ended
December 31,


For the Period May 5, 2016 to December 31,



2016


2015


2016


2015


Operating income

$           2,676


$                 -


$              2,187


$               -


Depreciation and amortization

321


-


851


-


Adjusted EBITDA - Natural Habitat segment

$          2,997


$                  -


$             3,038


$               -


 

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








(In thousands)



For the Years Ended
December 31,





2016


2015








Net cash provided by operating activities


$        31,427


$        40,302

Less: purchases of property and equipment


(75,933)


(14,800)

Free Cash Flow




$      (44,506)


$        25,502

 

 

Reconciliation of 2017 Adjusted EBITDA Guidance to Net Income

Consolidated





(In millions)


For the Year Ended



2017



From


To

Net income


$                 10.0


$         12.0

Interest expense, net


12.5


11.5

Depreciation and amortization


18.0


17.0

Other (including Income taxes, Loss
(gain) on foreign currency, Other
expense (income), net, Stock-based
compensation, National Geographic fee
amortization)


9.5


11.5

Adjusted EBITDA


$                 50.0


$         52.0

 

 

Guest Metrics - Lindblad Segment









For the Three Months Ended
December 31,


For the Years Ended
December 31,


2016


2015


2016


2015

Available Guest Nights

40,325


39,967


181,990


184,366

Guest Nights Sold

34,790


37,296


164,423


169,303

Occupancy

86.3%


93.3%


90.3%


91.8%

Maximum Guests

4,597


4,458


21,715


21,459

Number of Guests

3,993


4,201


19,735


19,824

Voyages

59


55


290


281

 

 

Lindblad Segment









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
December 31,


For the Years Ended
December 31,


2016


2015


2016


2015

Guest ticket revenues


$        37,238


$        41,424


$        183,851


$        183,805

Other tour revenues


4,662


5,048


23,985


26,180

Tour Revenues


41,900


46,472


207,836


209,985

Less: Commissions 


(3,228)


(3,132)


(14,954)


(14,460)

Less: Other tour expenses


(3,495)


(3,814)


(15,253)


(16,496)

Net Revenue


$       35,177


$       39,526


$       177,629


$       179,029

Available Guest Nights


40,325


39,967


181,990


184,366

Gross Yield 


$         1,039


$         1,163


$           1,142


$           1,139

Net Yield 


872


989


976


971

 

 

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
December 31,


For the Years Ended
December 31,


2016


2015


2016


2015

Cost of tours

$         23,873


$       24,086


$     96,505


$         95,417

Plus: Merger-related expenses

-


78


-


13,344

Plus: Selling and marketing

8,845


8,163


36,356


35,083

Plus: General and administrative

12,851


11,477


45,612


38,994

Gross Cruise Cost

45,569


43,804


178,473


182,838

Less: Commission expense

(3,228)


(3,132)


(14,954)


(14,460)

Less: Other tour expenses

(3,495)


(3,814)


(15,253)


(16,496)

Net Cruise Cost

38,846


36,858


148,266


151,882

Less: Fuel expense

(1,831)


(2,173)


(7,138)


(9,004)

Net Cruise Cost Excluding Fuel

37,015


34,685


141,128


142,878

Non-GAAP Adjustments: 








Stock-based compensation

(1,430)


(1,271)


(5,411)


(4,913)

National Geographic fee amortization

(727)


(727)


(2,907)


(1,397)

Acquisition-related expenses

(19)


-


(943)


-

Merger-related expenses

-


(78)


-


(13,344)

Adjusted Net Cruise Cost Excluding Fuel

$         34,839


$       32,609


$   131,867


$       123,224

Adjusted Net Cruise Cost

$         36,670


$       34,782


$   139,005


$       132,228

Available Guest Nights

40,325


39,967


181,990


184,366

Gross Cruise Cost per Available Guest Night

$           1,130


$         1,096


$          981


$              992

Net Cruise Cost per Available Guest Night

963


922


815


824

Net Cruise Cost Excl. Fuel per Available Guest Night

918


868


775


775

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

864


816


725


668

Adjusted Net Cruise Cost per Available Guest Night

909


870


764


717

 

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, 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 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 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.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/lindblad-expeditions-holdings-inc-reports-2016-fourth-quarter-and-full-year-financial-results-300419056.html

SOURCE Lindblad Expeditions Holdings, Inc.