Press Release

Lindblad Expeditions Holdings, Inc. Reports 2018 Second Quarter Financial Results

Company Release - 8/2/2018 7:30 AM ET

NEW YORK, Aug. 2, 2018 /PRNewswire/ --

Second Quarter 2018 Highlights:

  • Tour revenues increased 25% to $69.5 million
  • Net income available to common stockholders increased $2.7 million to $0.1 million
  • Adjusted EBITDA increased 117% to $11.5 million
  • Lindblad segment Net Yield increased 6% to $1,002 and Occupancy increased to 90%
  • Board of Directors authorized building of an additional blue water vessel

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 June 30, 2018.

Sven-Olof Lindblad, President and Chief Executive Officer, said "Lindblad delivered another quarter of strong financial results during the second quarter as the strategic investments we have made to expand capacity and develop our sales and marketing infrastructure continue to deliver significant returns.  As we have added inventory, we have also been able to increase our occupancy and yields from increased demand across our existing loyal customer base and a growing population of new guests who are seeking high quality and immersive expedition experiences. Given the robust demand for authentic adventure travel, we announced last month that we will be building an additional new polar ice class vessel. This will be the fourth new build for Lindblad and allow us to add to our proven track record of delivering unparalleled expeditions to the world's most remarkable destinations."

SECOND QUARTER RESULTS

Tour Revenues

Second quarter tour revenues of $69.5 million increased $13.9 million, or 25%, as compared to the same period in 2017. The increase was driven by growth of $12.3 million at the Lindblad segment and a $1.6 million increase at Natural Habitat. 

Lindblad segment tour revenues of $59.6 million increased $12.3 million, or 26%, compared to the second quarter a year ago primarily due to an 18% increase in Available Guest Nights, mostly from the launch of the National Geographic Quest in July 2017 and fewer planned drydock days in the second quarter of 2018 due to timing.  The year on year growth also reflects an increase in Occupancy from 85% to 90% due to higher demand across the fleet and a 6% increase in Net Yield to $1,002 due to increased prices and changes in itineraries.

Natural Habitat revenues of $9.9 million increased $1.6 million, or 19%, compared to the second quarter a year ago due primarily to higher ticket revenue from additional departures and increased pricing. 

Net Income

Net income available to common stockholders for the second quarter was $0.1 million, $0.00 per diluted share, as compared with net loss available to common stockholders of $2.5 million, $0.06 per diluted share, in the second quarter of 2017. The $2.7 million improvement primarily reflects the higher operating results and $1.1 million of lower stock-based compensation expense in the current year, partially offset by a $1.1 million loss on foreign currency, a $1.1 million increase in depreciation and amortization, primarily due to the addition of the National Geographic Quest to the fleet in July 2017, and a $0.8 million increase in interest expense primarily related to refinancing the Company's credit facility during the first quarter of 2018. 

Adjusted EBITDA

Second quarter Adjusted EBITDA of $11.5 million increased $6.2 million, or 117%, as compared to the same period in 2017. The increase was driven by growth of $6.3 million at the Lindblad segment slightly offset by a $0.2 million decrease at Natural Habitat.

Lindblad segment Adjusted EBITDA of $12.0 million increased $6.3 million, or 112%, as compared to the second quarter a year ago as the increased tour revenues were partially offset by operating costs on the National Geographic Quest.  The second quarter also included higher operating costs due to the additional guest nights, increased fuel costs across the fleet due to higher pricing, increased commission expense related to the revenue growth and higher personnel costs.

Natural Habitat Adjusted EBITDA was a loss of $0.5 million, a $0.2 million or 45% decrease compared to the second quarter a year ago as the revenue growth was more than offset by increased operating costs related to additional departures and higher marketing and personnel costs to drive long-term growth initiatives.



For the three months ended
June 30,


For the six months ended
June 30,

(In thousands)


2018


2017


Change

%


2018


2017


Change

%

Tour revenues:















Lindblad


$  59,556


$  47,238


$ 12,318

26%


$ 130,009


$ 100,440


$ 29,569

29%

Natural Habitat


9,917


8,333


1,584

19%


21,874


18,259


3,615

20%

Total tour revenues


69,473


55,571


13,902

25%


151,883


118,699


33,184

28%

  Impact of voyage cancellations


-


-


-

 NA 


-


9,140


(9,140)

NM

Total tour revenues excluding
   voyage cancellations


$  69,473


$  55,571


$ 13,902

25%


$ 151,883


$ 127,839


$ 24,044

19%

Operating income (loss):















Lindblad


$    5,107


$     (948)


$   6,055

NM


$   18,547


$        316


$ 18,231

NM

Natural Habitat


(900)


(705)


(195)

(28%)


32


(605)


637

105%

Total operating income


4,207


(1,653)


5,860

NM


18,579


(289)


18,868

NM

Impact of voyage cancellations


-


-


-

NA


-


6,464


(6,464)

NM

Total operating income excluding
   voyage cancellations


$    4,207


$  (1,653)


$   5,860

NM


$   18,579


$     6,175


$ 12,404

NM

Adjusted EBITDA:















Lindblad


$  11,982


$    5,651


$   6,331

112%


$   32,871


$   15,490


$ 17,381

112%

Natural Habitat


(532)


(366)


(166)

(45%)


761


58


703

NM

Total adjusted EBITDA


11,450


5,285


6,165

117%


33,632


15,548


18,084

116%

Impact of voyage cancellations


-


-


-

NA


-


6,464


(6,464)

NM

Total adjusted EBITDA excluding
   voyage cancellations


$  11,450


$    5,285


$   6,165

117%


$   33,632


$   22,012


$ 11,620

53%

The impact of the cancelled voyages in the prior year 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 $91.6 million as of June 30, 2018, as compared with $96.4 million as of December 31, 2017. The decrease primarily reflects purchases of property and equipment of $31.5 million, mostly related to the construction of two new vessels, and a $15.7 million increase in restricted cash related to higher deposits for travel on the Company's U.S. flagged vessels.  These decreases were mostly offset by $24.8 million in net cash provided by operating activities due to the improved operating performance and $17.6 million in net cash provided by financing activities primarily due to the increase in long-term debt associated with refinancing our credit facility.

Free cash flow use was $6.7 million for the six months ended June 30, 2018 as compared with a use of $15.5 million in the same period of 2017. The $8.8 million improvement is primarily due to the strong operating performance and lower capital expenditures for the construction of new vessels. Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment.

LINDBLAD FLEET ACTIVITIES

The Company expanded its travel offerings in July 2017 with the launch of the National Geographic Quest. A second new-build coastal vessel, the National Geographic Venture, is currently expected to launch in the fourth quarter of 2018.

The Company is also building a polar ice class vessel, the National Geographic Endurance, for delivery in January 2020. This state-of-the-art vessel will join the National Geographic Explorer and the National Geographic Orion as the third polar ice class vessel in the Lindblad National Geographic fleet, with the ability to voyage anywhere around the globe and specializing in polar travel.  The vessel 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.

Following the quarter, the Company announced that its Board of Directors has authorized the building of an additional polar ice class vessel for delivery in 2021. 

STOCK AND WARRANT REPURCHASE PLAN

The Company currently has a $35 million stock and warrant repurchase plan in place.  As of July 31, 2018, the Company had repurchased 6.0 million warrants and 864,806 shares under the plan for a total of $22.9 million and had $12.1 million remaining under the plan.  As of July 31, 2018, there were 45.8 million shares of common stock and 10.1 million warrants outstanding.

FINANCIAL OUTLOOK

The Company's current expectations for the full year 2018 are as follows:

  • Tour revenues of $308 - $315 million (16-18% growth)
  • Adjusted EBITDA of $54 - $57 million (24-31% growth)

As of July 31, 2018, the Lindblad segment had 99% of full year 2018 projected guest ticket revenues on the books versus 99% of full year 2017 guest ticket revenue at the same time last year.

NON-GAAP FINANCIAL MEASURES

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

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

Conference Call Information

The Company has scheduled a conference call at 8:30 a.m. Eastern Time on August 2, 2018 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 laws and regulations; (vii) compliance with the financial and/or operating covenants in the Company's credit agreements; (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; (xii) delays and costs overruns with respect to the construction and delivery of newly constructed vessels; and (xiii) 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
June 30,


As of
December 31,


2018


2017

ASSETS

(unaudited)



Current Assets:




Cash and cash equivalents

$        91,561


$        96,443

Restricted cash and marketable securities

22,803


7,057

Marine operating supplies

5,086


5,045

Inventories

1,792


1,794

Prepaid expenses and other current assets

26,791


21,351

Total current assets

148,033


131,690





Property and equipment, net

273,075


250,952

Goodwill

22,105


22,105

Intangibles, net

8,764


9,554

Other long-term assets

9,785


10,047

Total assets

$      461,762


$      424,348





LIABILITIES 




Current Liabilities:




Unearned passenger revenues

$      122,161


$      112,238

Accounts payable and accrued expenses

25,947


30,422

Long-term debt - current

2,000


1,750

Total current liabilities

150,108


144,410





Long-term debt, less current portion

188,229


164,186

Deferred tax liabilties

2,596


2,444

Other long-term liabilities

698


684

Total liabilities

341,631


311,724





COMMITMENTS AND CONTINGENCIES








REDEEMABLE NONCONTROLLING INTEREST

6,130


6,302





STOCKHOLDERS' EQUITY




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




no shares issued and outstanding

-


-

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




45,775,648 and 45,427,030 issued, 45,401,323 and 44,787,608 outstanding




as of June 30, 2018 and December 31, 2017, respectively

5


5

Additional paid-in capital

39,172


42,498

Retained earnings 

74,751


63,819

Accumulated other comprehensive income

73


-

Total stockholders' equity

114,001


106,322

Total liabilities and stockholders' equity 

$      461,762


$      424,348









 

 

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
June 30,


For the six months ended
June 30,


2018


2017


2018


2017









Tour revenues

$      69,473


$      55,571


$    151,883


$    118,699

Cost of tours

33,810


28,697


69,681


61,300

Gross profit

35,663


26,874


82,202


57,399









Operating expenses:








General and administrative

15,879


15,082


30,929


30,184

Selling and marketing

10,583


9,550


22,656


19,846

Depreciation and amortization

4,994


3,895


10,038


7,658

Total operating expenses

31,456


28,527


63,623


57,688









Operating income (loss)

4,207


(1,653)


18,579


(289)









Other (expense) income:








Interest expense, net

(2,870)


(2,076)


(5,604)


(4,390)

(Loss) gain on foreign currency

(1,141)


577


(1,592)


823

Other income (expense)

(128)


107


(120)


(156)

Total other expense

(4,139)


(1,392)


(7,316)


(3,723)









Income (loss) before income taxes

68


(3,045)


11,263


(4,012)

Income tax expense (benefit)

227


(467)


503


(2,060)









Net income (loss)

$         (159)


$      (2,578)


$      10,760


$      (1,952)

Net income (loss) attributable to noncontrolling
   interest

(293)


(45)


(172)


(16)









Net income (loss) available to common
   stockholders

$           134


$      (2,533)


$      10,932


$      (1,936)









Weighted average shares outstanding








Basic

45,894,155


44,428,947


45,322,541


44,567,588

Diluted

46,442,611


44,428,947


45,594,980


44,567,588









Net income (loss) per share available to common
   stockholders








Basic

$             -


$        (0.06)


$          0.24


$        (0.04)

Diluted

$             -


$        (0.06)


$          0.24


$        (0.04)









 

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(unaudited)



For the three months ended
June 30,


2018


2017

Cash Flows From Operating Activities




Net income (loss)

$      10,760


$       (1,952)

Adjustments to reconcile net income (loss) to net cash
   provided by operating activities:




Depreciation and amortization

10,038


7,658

Amortization of National Geographic fee

1,454


1,454

Amortization of deferred financing costs
    and other, net

1,045


1,096

Stock-based compensation

1,985


6,407

Deferred income taxes

152


(2,836)

Loss (gain) on foreign currency

1,592


(106)

Loss on write-off of assets

129


-

Changes in operating assets and liabilities 




Marine operating supplies and inventories 

(39)


(153)

Prepaid expenses and other current assets

(7,048)


(4,674)

Unearned passenger revenues

9,915


25,470

Write-off of unamortized issuance costs
   related to debt refinancing

359


-

Other long-term assets

(1,120)


117

Other long-term liabilities

15


14

Accounts payable and accrued expenses 

(4,457)


(9,293)

Net cash provided by operating activities

24,780


23,202





Cash Flows From Investing Activities




Purchases of property and equipment

(31,502)


(38,705)

Transfer to restricted cash and marketable securities

(15,746)


(12,246)

Net cash used in investing activities

(47,248)


(50,951)





Cash Flows From Financing Activities




Proceeds from long-term debt

200,000


-

Repayments of long-term debt

(170,625)


(875)

Payment of deferred financing costs

(6,486)


(298)

Repurchase under stock-based compensation plans and
   related tax impacts

(4,457)


(1,182)

Repurchase of warrants and common stock

(854)


(6,166)

Net cash provided by (used in) financing activities

17,578


(8,521)

Effect of exchange rate changes on cash

8


169





Net decrease in cash and cash equivalents

(4,882)


(36,101)





Cash and cash equivalents at beginning of period

96,443


135,416





Cash and cash equivalents at end of period

$      91,561


$      99,315





Supplemental disclosures of cash flow information:




Cash paid during the period:




Interest

$        6,534


$        5,195

Income taxes

$           776


$           748





Non-cash investing and financing activities:




Additional paid-in capital exercise proceeds of option shares

$         1,682


$            168

Additional paid-in capital exchange proceeds used for option shares

$       (1,682)


$          (168)





 

 

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
June 30,


For the six months ended
June 30,


2018


2017


2018


2017

Net income (loss)

$         (159)


$      (2,578)


$      10,760


$      (1,952)

Interest expense, net

2,870


2,075


5,604


4,390

Income tax expense (benefit)

227


(467)


503


(2,060)

Depreciation and amortization

4,994


3,895


10,038


7,658

Loss (gain) on foreign currency

1,141


(577)


1,592


(823)

Other (income) expense, net

128


(107)


120


156

Stock-based compensation

1,119


2,205


1,985


6,407

National Geographic fee amortization

727


727


1,454


1,454

Executive severance costs

287


-


287


-

Reorganization costs

113


112


293


318

Debt refinancing costs

3


-


997


-

Adjusted EBITDA 

11,450


5,285


33,632


15,548

Impact of voyage cancellations

-


-


-


6,464

Adjusted EBITDA excluding impact of voyage
cancellations

$      11,450


$        5,285


$      33,632


$      22,012









Reconciliation of Operating Income to Adjusted EBITDA







Lindblad Segment









For the three months ended
June 30,


For the six months ended
June 30,


2018


2017


2018


2017

Operating income (loss)

$        5,107


$         (948)


$      18,547


$           316

Depreciation and amortization

4,626


3,555


9,309


6,995

Stock-based compensation

1,119


2,205


1,985


6,407

National Geographic fee amortization

727


727


1,454


1,454

Executive severance costs

287


-


287


-

Reorganization costs

113


112


293


318

Debt refinancing costs

3


-


997


-

Adjusted EBITDA

11,982


5,651


32,871


15,490

Impact of voyage cancellations

-


-


-


6,464

Adjusted EBITDA excluding impact of voyage
cancellations

$      11,982


$        5,651


$      32,871


$      21,954

Reconciliation of Operating Income to Adjusted EBITDA







Natural Habitat Segment









For the three months ended
June 30,


For the six months ended
June 30,


2018


2017


2018


2017

Operating income (loss)

$         (900)


$         (706)


$             32


$         (605)

Depreciation and amortization

368


340


729


663

Adjusted EBITDA

$         (532)


$         (366)


$           761


$             58

















 

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Supplemental Financial Schedules

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

(unaudited)










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








For the six months ended June 30,




2018


2017

Net cash provided by operating activities



$      24,780


$      23,202

Less: purchases of property and equipment



(31,502)


(38,705)

Free Cash Flow



$      (6,722)


$    (15,503)

















Guest Metrics - Lindblad Segment









For the three months ended
June 30,


For the six months ended
June 30,


2018


2017


2018


2017

Available Guest Nights

50,917


43,171


104,834


85,893

Guest Nights Sold

45,786


36,765


94,721


73,829

Occupancy

89.9%


85.2%


90.4%


86.0%

Maximum Guests

6,242


4,941


13,047


10,209

Number of Guests

5,684


4,311


11,767


8,912

Voyages

81


66


176


147









Calculation of Gross Yield and Net Yield 








Lindblad Segment









For the three months ended
June 30,


For the six months ended
June 30,

2018


2017


2018


2017

Guest ticket revenues

$      53,832


$     40,745


$    116,512


$      85,790

Other tour revenues

5,724


6,493


13,497


14,650

Tour Revenues

59,556


47,238


130,009


100,440

Less: Orion Insurance Proceeds

-


-


-


(1,900)

Adjusted Tour Revenues

59,556


47,238


130,009


98,540

Less: Commissions 

(4,369)


(3,659)


(9,923)


(7,761)

Less: Other tour expenses

(4,161)


(2,972)


(8,279)


(7,090)

Net Revenue

$      51,026


$     40,607


$    111,807


$      83,689

Available Guest Nights

50,917


43,171


104,834


85,893

Gross Yield 

$        1,170


$       1,094


$        1,240


$        1,147

Net Yield 

1,002


941


1,067


974









 

 

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Supplemental Financial Schedules

(In thousands, except for Available
Guest Nights, Gross and Net Cruise Cost Per Avail. Guest Night
and guest metrics)

(unaudited)










For the three months ended
June 30,


For the six months ended
June 30,

2018


2017


2018


2017

Cost of tours

$      27,510


$     23,168


$      56,190


$      49,541

Plus: Selling and marketing

9,683


8,960


20,945


18,272

Plus: General and administrative

12,630


12,503


25,018


25,316

Gross Cruise Cost

49,823


44,631


102,153


93,129

Less: Commission expense

(4,369)


(3,659)


(9,923)


(7,761)

Less: Other tour expenses

(4,161)


(2,972)


(8,279)


(7,090)

Net Cruise Cost

41,293


38,000


83,951


78,278

Less: Fuel expense

(2,599)


(1,296)


(4,709)


(2,964)

Net Cruise Cost Excluding Fuel

38,694


36,704


79,242


75,314

Non-GAAP Adjustments: 








Stock-based compensation

(1,119)


(2,205)


(1,985)


(6,407)

National Geographic fee amortization

(727)


(727)


(1,454)


(1,454)

Executive severance costs

(287)


-


(287)


-

Reorganization costs

(113)


(112)


(293)


(318)

Debt refinancing costs

(3)


-


(997)


-

Adjusted Net Cruise
   Cost Excluding Fuel

$      36,445


$     33,660


$      74,227


$      67,135

Adjusted Net Cruise Cost

$      39,044


$     34,956


$      78,936


$      70,099

Available Guest Nights

50,917


43,171


104,834


85,893

Gross Cruise Cost per
   Available Guest Night

$           979


$       1,034


$           974


$        1,084

Net Cruise Cost per
   Available Guest Night

811


880


801


911

Net Cruise Cost Excl. Fuel per
   Available Guest Night

760


850


756


877

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

716


780


708


782

Adjusted Net Cruise Cost per Available Guest Night

767


810


753


816









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, merger-related expenses, debt refinancing fees 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. 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.

Cision View original content:http://www.prnewswire.com/news-releases/lindblad-expeditions-holdings-inc-reports-2018-second-quarter-financial-results-300690768.html

SOURCE Lindblad Expeditions Holdings, Inc.