Press Release

Lindblad Expeditions Holdings, Inc. Reports 2018 Fourth Quarter and Full Year Financial Results

Company Release - 2/28/2019 7:30 AM ET

NEW YORK, Feb. 28, 2019 /PRNewswire/ --

Full Year 2018 Highlights:

  • Tour revenues increased 16% to $309.7 million
  • Net income available to common stockholders increased $20.0 million to $11.4 million
  • Adjusted EBITDA increased 26% to $54.8 million
  • Lindblad segment Net Yield increased 6% to $1,044 and Occupancy increased to 91% 
  • Bookings from the Lindblad segment in 2018 for future travel increased 20% over bookings in 2017
  • Expanded capacity with the launch of the National Geographic Venture in December 2018
  • Expanded strategic partnership with National Geographic to include all of the Americas
  • Following year end, the Company signed an agreement to build an additional polar ice class 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 fourth quarter and year ended December 31, 2018.

Sven-Olof Lindblad, President and Chief Executive Officer, said, "Lindblad's strong financial growth and operating momentum during 2018 demonstrates the unique opportunity we have to build long-term value as we capitalize on the growing demand for expedition travel. We have significantly increased our overall capacity with the launch of our two new coastal vessels, the National Geographic Quest and the National Geographic Venture, and at the same time have been able to expand our Occupancy and Net Yields despite the additional inventory. Lindblad's unparalleled track record of delivering high quality and authentic experiences, along with our strategic partnership with National Geographic, continues to generate high levels of repeat guests and is attracting more and more new travelers who want to immerse themselves in the world's most remarkable geographies. With additional capacity and a strong booking environment, 2019 is poised to grow significantly. At the same time, we continue to build the next drivers of growth with the National Geographic Endurance scheduled to launch in early 2020 and today we announced that that we have contracted for another new, state of the art, polar vessel for delivery late in 2021. Overall, we have committed to expanding our available guest nights by over 60% from pre-expansion levels as we broaden our ability to build additional shareholder value in the years ahead."

FULL YEAR RESULTS

Tour Revenues

Full year tour revenues of $309.7 million increased $43.2 million, or 16%, as compared to 2017. The increase was driven by growth of $29.5 million at the Lindblad segment and a $13.7 million increase at Natural Habitat.

Lindblad segment tour revenues of $246.3 million increased $29.5 million, or 14% compared to 2017 primarily driven by 8% growth in Available Guest Nights, most notably due to the launch of the National Geographic Quest in July 2017 and the National Geographic Venture in December 2018, as well as from the impact of voyage cancellations in the first quarter of 2017 for repairs on the National Geographic Orion and National Geographic Sea Lion. The year on year growth also reflects an increase in Occupancy in 2018 to 91% from 87% in 2017 due to higher overall demand across the fleet, as well as 6% growth in Net Yield to $1,044 from increased prices and changes in itineraries.

Natural Habitat revenues of $63.4 million increased $13.7 million, or 28%, compared to a year ago due primarily to higher ticket revenue from additional departures and increased pricing.

Net Income

Net income available to common stockholders of $11.4 million for 2018, $0.24 per diluted share, increased $20.0 million as compared with a net loss available to common stockholders of $8.7 million, $0.19 per diluted share, in 2017. The increase versus a year ago primarily reflects the higher operating results, $6.2 million of lower stock-based compensation expense and a $9.4 million decrease in tax expense due to a $12.7 million impact in the fourth quarter of 2017 from the enactment of the U.S. Tax Cuts and Jobs Act. The current year also includes a $3.4 million increase in depreciation and amortization due to the addition of new vessels to the fleet, $2.2 million in foreign currency losses and a $1.1 million increase in interest expense primarily related to refinancing the Company's credit facility during the first quarter of 2018.

Adjusted EBITDA

Full year 2018 Adjusted EBITDA of $54.8 million increased $11.4 million, or 26%, compared to 2017. The increase was driven by growth of $9.2 million at the Lindblad segment and a $2.2 million increase at Natural Habitat.

Lindblad segment Adjusted EBITDA of $47.8 million increased $9.2 million, or 24%, as compared to 2017 as the increased tour revenue were partially offset by higher operating costs primarily from a full year of operating the National Geographic Quest and costs associated with the December 2018 launch of the National Geographic Venture. 2018 also included higher commission expense associated with the revenue growth, as well as increased fuel and personnel costs.

Natural Habitat Adjusted EBITDA of $7.0 million increased $2.2 million, or 46%, as compared to 2017 as the revenue growth was partially offset by higher operating costs related to the additional departures and increased marketing and personnel costs to drive long-term growth initiatives.

FOURTH QUARTER RESULTS

Tour Revenues

Fourth quarter tour revenues of $70.6 million increased $7.4 million, or 12%, as compared to the same period in 2017. The increase was driven by growth of $4.5 million at Natural Habitat and a $2.9 million increase at the Lindblad segment.

Lindblad segment tour revenues of $51.8 million increased $2.9 million, or 6%, compared to the fourth quarter a year ago primarily driven by a 16% increase in Net Yield to $1,071 and an increase in Occupancy to 91% from 86% in 2017. Net Yield growth was driven by higher pricing and changes in itineraries, while Occupancy growth was driven by higher demand across the fleet, most notably on the National Geographic Orion due to a lower occupancy trans-Atlantic voyage in the fourth quarter of 2017. Available Guest Nights declined 9% primarily due to the trans-Atlantic voyage a year ago, partially offset by the launch of the National Geographic Venture in December 2018.

Natural Habitat revenues of $18.8 million increased $4.5 million, or 31%, compared to a year ago due primarily to higher ticket revenue from additional departures and increased pricing.

Net Income

Net loss available to common stockholders for the fourth quarter was $4.6 million, $0.10 per diluted share, as compared with a loss of $16.0 million, $0.36 per diluted share, in the fourth quarter of 2017. The $11.4 million improvement versus a year ago primarily reflects a $13.1 million decrease in tax expense mainly due to a $12.7 million impact from the enactment of the U.S. Tax Cuts and Jobs Act in the fourth quarter of 2017, partially offset by lower operating results and $0.8 million in foreign currency losses.

Adjusted EBITDA

Fourth quarter Adjusted EBITDA of $4.1 million decreased $0.7 million, or 15%, as compared to the same period in 2017 as growth of $0.9 million at Natural Habitat was more than offset by a $1.6 million decrease at the Lindblad segment.

Lindblad segment Adjusted EBITDA of $0.3 million decreased $1.6 million compared to the fourth quarter a year ago as the increased tour revenues were offset primarily by higher operating costs from the launch of the National Geographic Venture in December 2018, as well as from increased commission expense related to the revenue growth and higher personnel costs.

Natural Habitat Adjusted EBITDA of $3.8 million increased $0.9 million, or 30%, versus the fourth quarter a year ago as the revenue growth was partially offset by higher operating costs related to the additional departures and increased marketing and personnel costs to drive long-term growth initiatives.

Segment Results










For the three months ended
December 31,



For the years ended
December 31,


(In thousands)


2018



2017



Change



%



2018



2017



Change



%


Tour revenues:

































Lindblad


$

51,817



$

48,924



$

2,893




6%



$

246,334



$

216,815



$

29,519




14%


Natural Habitat



18,792




14,297




4,495




31%




63,400




49,689




13,711




28%


Total tour revenues


$

70,609



$

63,221



$

7,388




12%



$

309,734



$

266,504



$

43,230




16%


Operating income (loss):

































Lindblad


$

(6,957)



$

(5,093)



$

(1,864)




37%



$

19,798



$

7,291



$

12,507




172%


Natural Habitat



3,436




2,580




856




33%




5,540




3,452




2,088




60%


Total operating income


$

(3,521)



$

(2,513)



$

(1,008)




40%



$

25,338



$

10,743



$

14,595




136%


Adjusted EBITDA:

































Lindblad


$

276



$

1,890



$

(1,614)




(85%)



$

47,815



$

38,655



$

9,160




24%


Natural Habitat



3,819




2,938




881




30%




7,031




4,834




2,197




45%


Total Adjusted EBITDA


$

4,095



$

4,828



$

(733)




(15%)



$

54,846



$

43,489



$

11,357




26%


Liquidity

The Company's cash, cash equivalents and restricted cash were $122.2 million as of December 31, 2018, as compared with $103.5 million as of December 31, 2017. The $18.7 million increase primarily reflects $56.4 million in net cash provided by operating activities due to the strong operating performance and $16.5 million in net cash provided by financing activities, primarily due to the increase in long-term debt associated with refinancing our credit facility. These increases were partially offset by $54.3 million in net cash used in investing activities, primarily related to the construction of two new vessels.

Free cash flow was $2.0 million for the full year 2018 as compared with a free cash flow use of $27.6 million in 2017. The $29.6 million improvement primarily reflects the strong operating performance in the current year 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.

On January 8, 2018, the Company entered into a senior secured credit agreement to make available, at the Company's option, a loan in an aggregate principal amount not to exceed $107.7 million for the purpose of providing financing for up to 80% of the purchase price of the Company's new polar ice-class vessel. At the Company's election, the loan will bear interest either at a fixed interest rate effectively equal to 5.78% or a floating interest rate equal to three-month LIBOR plus a margin of 3.00% per annum.

On March 28, 2018, the Company refinanced its existing senior secured term loan and revolving credit facility.  The new $200 million, seven-year, senior secured term loan facility bears interest at LIBOR plus 3.50%, with a potential step down to LIBOR plus 3.25% depending on the Company's credit rating.  The new $45 million, five-year, revolving credit facility bears interest at LIBOR plus 3.00%.  The pricing of the new term loan and revolving credit facility reflected a one percentage point rate reduction compared to the prior $175 million term loan facility and $45 million revolving credit facility.  Additionally, the covenants in the new facility were modified to provide the Company with additional strategic and operational flexibility. The proceeds from the new term loan were utilized to pay down the Company's existing term loan with the remaining additional proceeds available for general corporate purposes. 

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, launched in the December 2018 and is operating in Baja during the winter season before heading to Alaska for the summer months.

The Company is currently 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 vessels in the Lindblad National Geographic fleet, with the ability to voyage anywhere around the globe and specializing in polar travel.  This new 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 year-end, the Company signed a second contract with Ulstein Verft to build a sister ship to the National Geographic Endurance for delivery in September 2021. This fourth polar ice class vessel will enable us to further capitalize on the growth in high quality adventure travel and broaden the immersive and authentic itineraries we offer to our guests.

STOCK AND WARRANT REPURCHASE PLAN

The Company currently 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. During 2018, the Company repurchased 568,446 warrants and 9,030 shares of common stock under the plan for a total of $0.9 million. As of February 26, 2019 the Company had repurchased 6.0 million warrants and 866,701 shares of common stock under the plan and had $12.1 million remaining under the plan. As of February 22, 2019, there were 45.7 million shares of common stock and 10.1 million warrants outstanding.

FINANCIAL OUTLOOK

The Company's current expectations for the full year 2019 are as follows:

  • Tour revenues of $350 - $358 million (13 – 16% growth)
  • Adjusted EBITDA of $67 - $70 million (22 – 28% growth)

As of February 26, 2019, Lindblad segment bookings for travel during 2019 have increased 10% as compared with bookings for 2018 as of the same date a year ago. Additionally, the Lindblad segment had 87% of full year 2019 projected guest ticket revenues on the books versus 89% of full year 2018 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 9.

Conference Call Information

The Company has scheduled a conference call at 8:30 a.m. Eastern Time on February 28, 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, http://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

Consolidated Balance Sheets

(In thousands, except share and per share data)




As of
December 31,




2018



2017


ASSETS









Current Assets:









Cash and cash equivalents


$

113,396



$

96,443


Restricted cash and marketable securities



8,755




7,057


Marine operating supplies



5,165




5,045


Inventories



1,604




1,794


Prepaid expenses and other current assets



21,263




21,351


Total current assets



150,183




131,690











Property and equipment, net



285,979




250,952


Goodwill



22,105




22,105


Intangibles, net



7,975




9,554


Other long-term assets



7,167




10,047


Total assets


$

473,409



$

424,348











LIABILITIES









Current Liabilities:









Unearned passenger revenues


$

123,489



$

112,238


Accounts payable and accrued expenses



33,944




30,422


Long-term debt - current



2,000




1,750


Total current liabilities



159,433




144,410











Long-term debt, less current portion



188,089




164,186


Deferred tax liabilities



2,787




2,444


Other long-term liabilities



554




684


Total liabilities



350,863




311,724











COMMITMENTS AND CONTINGENCIES


















REDEEMABLE NONCONTROLLING INTEREST



6,502




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;









45,814,925 and 45,427,030 issued, 45,442,728 and 44,787,608 outstanding









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



5




5


Additional paid-in capital



41,539




42,498


Retained earnings



75,171




63,819


Accumulated other comprehensive income



(671)




-


Total stockholders' equity



116,044




106,322


Total liabilities, stockholders' equity and redeemable noncontrolling interest


$

473,409



$

424,348


 

 

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(In thousands, except share and per share data)










For the three months ended
December 31,



For the years ended
December 31,




2018



2017



2018



2017


Tour revenues


$

70,609



$

63,220



$

309,734



$

266,504


Cost of tours



39,098




35,746




153,743




135,526


Gross profit



31,511




27,474




155,991




130,978



















Operating expenses:

















General and administrative



17,251




13,817




62,898




60,529


Selling and marketing



12,076




10,833




46,987




42,354


Depreciation and amortization



5,706




5,339




20,768




17,351


Total operating expenses



35,033




29,989




130,653




120,234



















Operating (loss) income



(3,522)




(2,515)




25,338




10,744



















Other expense:

















Interest expense, net



(2,817)




(2,544)




(10,830)




(9,736)


(Loss) gain on foreign currency



(745)




96




(2,175)




1,144


Other (expense) income



(45)




419




(165)




(133)


Gain on transfer of assets



-




-




-




454


Total other expense



(3,607)




(2,029)




(13,170)




(8,271)



















(Loss) income before income taxes



(7,129)




(4,544)




12,168




2,473


Income tax (benefit) expense



(2,577)




10,475




616




10,002



















Net (loss) income



(4,552)




(15,019)




11,552




(7,529)


Net income attributable to noncontrolling interest



92




983




200




1,132



















Net (loss) income available to common stockholders


$

(4,644)



$

(16,002)



$

11,352



$

(8,661)



















Weighted average shares outstanding

















Basic



45,442,728




44,725,667




45,378,188




44,576,912


Diluted



45,442,728




44,725,667




46,340,054




44,576,912



















Net (loss) income per share available to common stockholders

















Basic


$

(0.10)



$

(0.36)



$

0.25



$

(0.19)


Diluted


$

(0.10)



$

(0.36)



$

0.24



$

(0.19)


 

 

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands)







For the years ended

December 31,




2018



2017


Cash Flows From Operating Activities









Net income (loss)


$

11,552



$

(7,529)


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









Depreciation and amortization



20,768




17,351


Amortization of National Geographic fee



2,907




2,907


Amortization of deferred financing costs and other, net



1,909




2,226


Stock-based compensation



4,405




10,627


Deferred income taxes



343




8,336


Loss (gain) on foreign currency



2,175




(1,144)


Write-off of unamortized issuance costs related to debt refinancing



359




-


Loss on write-off of assets



129




-


Changes in operating assets and liabilities









Marine operating supplies and inventories



70




(1,036)


Prepaid expenses and other current assets



(716)




575


Unearned passenger revenues



11,134




20,709


Other long-term assets



(698)




136


Other long-term liabilities



(129)




3


Accounts payable and accrued expenses



2,149




(243)


Net cash provided by operating activities



56,357




52,918


Cash Flows From Investing Activities









Purchases of property and equipment



(54,345)




(80,485)


Net cash used in investing activities



(54,345)




(80,485)


Cash Flows From Financing Activities









Proceeds from long-term debt



200,000




-


Repayments of long-term debt



(171,625)




(1,750)


Payment of deferred financing costs



(6,490)




(418)


Repurchase under stock-based compensation plans and related tax impacts



(4,510)




(5,034)


Repurchase of warrants and common stock



(854)




(6,192)


Net cash provided by (used in) financing activities



16,521




(13,394)


Effect of exchange rate changes on cash



118




30


Net increase (decrease) in cash, cash equivalents and restricted cash



18,651




(40,931)


Cash, cash equivalents and restricted cash at beginning of period



103,500




144,431











Cash, cash equivalents and restricted cash at end of period


$

122,151



$

103,500











Supplemental disclosures of cash flow information:









Cash paid during the period:









Interest


$

13,391



$

10,478


Income taxes


$

522



$

965


Non-cash investing and financing activities:









Additional paid-in capital exercise proceeds of option shares


$

1,682



$

1,682


Additional paid-in capital exchange proceeds used for option shares


$

(1,682)



$

(1,682)


 

 

 

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
December 31,



For the years ended

December 31,


(In thousands)


2018



2017



2018



2017


Net (loss) income


$

(4,552)



$

(15,019)



$

11,552



$

(7,529)


Interest expense, net



2,817




2,544




10,830




9,736


Income tax (benefit) expense



(2,577)




10,475




616




10,002


Depreciation and amortization



5,706




5,339




20,768




17,351


Loss (gain) on foreign currency



745




(96)




2,175




(1,144)


Gain on transfer of assets



-




-




-




(454)


Other expense (income), net



45




(419)




165




133


Stock-based compensation



1,149




1,163




4,405




10,627


National Geographic fee amortization



727




727




2,907




2,907


Executive severance costs



-




9




71




1,409


Reorganization costs



35




104




360




451


Debt refinancing costs



-




-




997




-


Adjusted EBITDA


$

4,095



$

4,828



$

54,846



$

43,489




































Reconciliation of Operating Income to Adjusted EBITDA

Lindblad Segment










For the three months ended
December 31,



For the years ended

December 31,


(In thousands)


2018



2017



2018



2017


Operating (loss) income


$

(6,957)



$

(5,093)



$

19,798



$

7,292


Depreciation and amortization



5,322




4,980




19,277




15,969


Stock-based compensation



1,149




1,163




4,405




10,627


National Geographic fee amortization



727




727




2,907




2,907


Executive severance costs



-




9




71




1,409


Reorganization costs



35




104




360




451


Debt refinancing costs



-




-




997




-


Adjusted EBITDA


$

276



$

1,890



$

47,815



$

38,655




































Reconciliation of Operating Income to Adjusted EBITDA

Natural Habitat Segment










For the three months ended
December 31,



For the years ended

December 31,


(In thousands)


2018



2017



2018



2017


Operating income


$

3,436



$

2,578



$

5,540



$

3,452


Depreciation and amortization



383




360




1,491




1,382


Adjusted EBITDA


$

3,819



$

2,938



$

7,031



$

4,834


 

 

 

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 years ended
December 31,




2018



2017


Net cash provided by operating activities


$

56,357



$

52,918


Less: purchases of property and equipment



(54,345)




(80,485)


Free Cash Flow


$

2,012



$

(27,567)


 

 

Guest Metrics - Lindblad Segment




For the three months

ended
December 31,



For the years ended
December 31,




2018



2017



2018



2017


Available Guest Nights



40,274




44,428




200,849




186,719


Guest Nights Sold



36,584




38,305




182,298




163,256


Occupancy



91%




86%




91%




87%


Maximum Guests



5,061




5,078




25,449




22,805


Number of Guests



4,549




4,382




23,102




20,140


Voyages



61




64




330




308


 

 

Calculation of Gross Yield and Net Yield

Lindblad Segment










For the three months ended
December 31,



For the years ended
December 31,


(In thousands, except for Available Guest Nights, Gross and

Net Yield)


2018



2017



2018



2017


Guest ticket revenues


$

46,141



$

43,609



$

220,841



$

191,113


Other tour revenues



5,676




5,315




25,493




25,702


Tour Revenues



51,817




48,924




246,334




216,815


Less: Orion Insurance Proceeds



-




(125)




-




(2,273)


Adjusted Tour Revenues



51,817




48,799




246,334




214,542


Less: Commissions



(4,544)




(4,045)




(19,521)




(16,365)


Less: Other tour expenses



(4,153)




(3,703)




(17,106)




(14,325)


Net Revenue


$

43,120



$

41,051



$

209,707



$

183,852


Available Guest Nights



40,274




44,428




200,849




186,719


Gross Yield


$

1,287



$

1,098



$

1,226



$

1,149


Net Yield



1,071




924




1,044




985


 

 

 

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)








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


For the three months ended
December 31,



For the years ended
December 31,




2018



2017



2018



2017


Cost of tours


$

29,004



$

28,129



$

114,841



$

105,044


Plus: Selling and marketing



10,626




9,799




42,325




38,429


Plus: General and administrative



13,822




11,110




50,093




50,082


Gross Cruise Cost



53,452




49,038




207,259




193,555


Less: Commission expense



(4,544)




(4,045)




(19,521)




(16,365)


Less: Other tour expenses



(4,153)




(3,703)




(17,106)




(14,325)


Net Cruise Cost



44,755




41,290




170,632




162,865


Less: Fuel expense



(2,352)




(2,155)




(9,228)




(7,013)


Net Cruise Cost Excluding Fuel



42,403




39,135




161,404




155,852


Non-GAAP Adjustments:

















Stock-based compensation



(1,149)




(1,163)




(4,405)




(10,627)


National Geographic fee amortization



(727)




(727)




(2,907)




(2,907)


Executive severance costs



-




(9)




(71)




(1,409)


Reorganization costs



(35)




(104)




(360)




(451)


Debt refinancing costs



-




-




(997)




-


Adjusted Net Cruise Cost Excluding Fuel


$

40,492



$

37,131



$

152,664



$

140,458


Adjusted Net Cruise Cost


$

42,844



$

39,286



$

161,892



$

147,471


Available Guest Nights



40,274




44,428




200,849




186,719


Gross Cruise Cost per Available Guest Night


$

1,327



$

1,104



$

1,032



$

1,037


Net Cruise Cost per Available Guest Night



1,111




929




850




872


Net Cruise Cost Excluding Fuel per Available Guest Night



1,053




881




804




835


Adjusted Net Cruise Cost Excluding Fuel per Available Guest Night



1,005




836




760




752


Adjusted Net Cruise Cost per Available Guest Night



1,064




884




806




790


 

Operational and Financial Metrics

Adjusted EBITDA is net income (loss) excluding depreciation and amortization, net interest expense, other income (expense), income tax (expense) benefit, (gain) loss on foreign currency, (gain) loss on transfer of assets, reorganization costs, and other supplemental adjustments. Other supplemental adjustments include certain non-operating items such as stock-based compensation, executive severance costs, the National Geographic fee amortization, debt refinancing 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, 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 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.

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SOURCE Lindblad Expeditions Holdings, Inc.