Press Release

Lindblad Expeditions Holdings, Inc. Reports 2019 Second Quarter Financial Results

Company Release - 8/1/2019 7:30 AM ET

NEW YORK, August 1, 2019 /PRNewswire/ --

Second Quarter 2019 Highlights:

  • Tour revenues increased 10% to $76.7 million
  • Net income available to common stockholders increased $0.9 million to $1.0 million
  • Adjusted EBITDA increased 9% to $12.5 million
  • Lindblad segment Net Yield increased 3% to $1,030 and Occupancy was 89%
  • Commenced exchange offer for all outstanding warrants, expect to complete full redemption on August 1, 2019

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, 2019.

Sven-Olof Lindblad, President and Chief Executive Officer, said "Lindblad's strong second quarter operating results further demonstrates the opportunity we have to deliver sustained growth as we expand our capacity while maintaining high occupancy levels and net yields. The additions of the National Geographic Quest and the National Geographic Venture to our fleet over the past two years has substantially increased our available berths and the growing demand for authentic expedition travel, along with a diverse base of loyal guests, has enabled us to fill this new inventory at healthy price points. We are still in the early days of our expansion plans and with strong demand across our growing fleet, including robust early bookings for our two new polar vessels scheduled for delivery in 2020 and 2021, we are poised to build on our sustained momentum in the years ahead."

SECOND QUARTER RESULTS

Tour Revenues

Second quarter tour revenues of $76.7 million increased $7.2 million, or 10%, as compared to the same period in 2018. The increase was driven by growth of $5.4 million at the Lindblad segment and a $1.8 million increase at Natural Habitat.

Lindblad segment tour revenues of $64.9 million increased $5.4 million, or 9%, compared to the second quarter a year ago primarily due to a 6% increase in Available Guest Nights, mostly from the launch of the National Geographic Venture in December 2018. The year on year growth also reflects a 3% increase in Net Yield to $1,030 due primarily to higher pricing and changes in itineraries, partially offset by a slight decline in Occupancy to 89%.

Natural Habitat revenues of $11.7 million increased $1.8 million, or 18%, 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 $1.0 million, $0.02 per diluted share, as compared with net income available to common stockholders of $0.1 million, $0.00 per diluted share, in the second quarter of 2018. The $0.9 million improvement primarily reflects the higher operating results and $0.5 million in foreign currency gains as compared with $1.1 million in foreign currency losses in the second quarter of 2018. These increases were partially offset primarily by a $1.2 million increase in depreciation and amortization due largely to the addition of the National Geographic Venture to the fleet in December 2018. 

Adjusted EBITDA

Second quarter Adjusted EBITDA of $12.5 million increased $1.0 million, or 9%, as compared to the same period in 2018. The increase was driven by growth of $1.3 million at the Lindblad segment slightly offset by a $0.2 million decrease at Natural Habitat.

Lindblad segment Adjusted EBITDA of $13.3 million increased $1.3 million, or 11%, as compared to the second quarter a year ago as the increased tour revenues were partially offset by operating costs on the National Geographic Venture. The second quarter also included increased costs due to higher marketing spend to drive long-term growth initiatives, increased commission expense related to the revenue growth and higher personnel costs partially offset by lower drydock expense.

Natural Habitat Adjusted EBITDA was a loss of $0.8 million, a $0.2 million, or 45%, decrease as 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,




2019



2018



Change



%



2019



2018



Change



%


Tour revenues:

































Lindblad


$

64,930



$

59,556



$

5,374




9%



$

140,968



$

130,009



$

10,959




8%


Natural Habitat



11,728




9,917




1,811




18%




25,343




21,874




3,469




16%


Total tour revenues


$

76,658



$

69,473



$

7,185




10%



$

166,311



$

151,883



$

14,428




9%


Operating Income:

































Lindblad


$

5,302



$

5,107



$

195




4%



$

18,943



$

18,547



$

396




2%


Natural Habitat



(1,181)




(900)




(281)




(31%)




(458)




32




(490)




NM


Total operating income


$

4,121



$

4,207



$

(86)




(2%)



$

18,485



$

18,579



$

(94)




(1%)


Adjusted EBITDA:

































Lindblad


$

13,270



$

11,982



$

1,288




11%



$

34,200



$

32,871



$

1,329




4%


Natural Habitat



(773)




(532)




(241)




(45%)




344




761




(417)




(55%)


Total adjusted EBITDA


$

12,497



$

11,450



$

1,047




9%



$

34,544



$

33,632



$

912




3%


Liquidity

The Company's cash, cash equivalents and restricted cash were $112.1 million as of June 30, 2019, as compared with $122.2 million as of December 31, 2018. The decrease primarily reflects purchases of property and equipment of $42.3 million, mostly related to the construction of two new vessels, partially offset by $37.2 million in net cash provided by operating activities due to the strong operating performance and increased bookings for future travel.

Free cash flow use was $5.0 million for the six months ended June 30, 2019 as compared with a use of $6.7 million in the same period of 2018. The $1.7 million improvement is primarily due to the strong operating performance partially offset by higher 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.

During the quarter, 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 $122.8 million for the purpose of providing financing for up to 80% of the purchase price of the Company's new expedition ice-class cruise vessel. At the Company's election, the loan will bear interest either at a fixed interest rate effectively equal to 6.36% or a floating interest rate equal to three-month LIBOR plus a margin of 3.00% per annum.

LINDBLAD FLEET ACTIVITIES

The Company expanded its travel offerings in December 2018 with the launch of the National Geographic Venture, which sailed in Baja during the winter season before heading to Alaska for the summer months.

The Company is currently building two new state-of-the-art polar ice class vessels to further capitalize on the growth in high quality adventure travel and broaden the immersive and authentic itineraries we offer to our guests. The National Geographic Endurance is scheduled for delivery in January 2020 and, in February 2019, we signed a contract for her sister ship, scheduled for delivery in September 2021. These two vessels will join the National Geographic Explorer and the National Geographic Orion to dramatically increase the polar capacity of the Lindblad National Geographic fleet. They 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.

STOCK AND WARRANT TRANSACTIONS

On June 14, 2019 the Company commenced an Exchange Offer and Consent Solicitation relating to its outstanding warrants in order to simplify its corporate structure and reduce the potential dilutive impact of the warrants. Each holder of the warrants was offered 0.385 shares of common stock in exchange for each warrant and consent to amend the warrant agreement to permit the Company to require that each outstanding warrant that was not tendered in the Exchange Offer be converted into 0.36575 shares of common stock. The Exchange Offer and Consent Solicitation closed on July 17, 2019, with 98.5% of the 10,085,474 warrants exchanged for an aggregate of 3,824,959 shares of Company common stock. Per the amended warrant agreement, the remaining warrants are being exchanged at a ratio of 0.36575 shares of common stock for an aggregate of approximately 55,000 shares of common stock. Following such exchange, no warrants will remain outstanding.

The Company currently has a $35 million stock repurchase plan in place. As of July 31, 2019, the Company had repurchased 6.0 million warrants and 866,701 shares under the plan for a total of $22.9 million and had $12.1 million remaining under the plan. As of July 31, 2019, there were 49.6 million shares of common stock 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 July 30, 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 99% of full year 2019 projected guest ticket revenues on the books versus 99% 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.

Conference Call Information

The Company has scheduled a conference call at 8:30 a.m. Eastern Time on August 1, 2019 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) our ability to maintain our relationship with National Geographic (v) the Company's business strategy and plans; (vi) unscheduled disruptions in our business due to weather events, mechanical failures, or other events; (vii) compliance with laws and regulations; (viii) compliance with the financial and/or operating covenants in the Company's credit agreements; (ix) adverse publicity regarding the cruise industry in general; (x) loss of business due to competition; (xi) the result of future financing efforts; (xii) the inability to meet revenue and Adjusted EBITDA projections; (xiii) delays and costs overruns with respect to the construction and delivery of newly constructed vessels; and (xiv) 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,

2019



As of
December 31, 2018


ASSETS


(unaudited)






Current Assets:









Cash and cash equivalents


$

78,746



$

113,396


Restricted cash



33,305




8,755


Marine operating supplies



5,086




5,165


Inventories



1,715




1,604


Prepaid expenses and other current assets



31,297




21,263


Total current assets



150,149




150,183











Property and equipment, net



316,709




285,979


Goodwill



22,105




22,105


Intangibles, net



7,185




7,975


Deferred tax asset



1,319




-


Right-to-use lease assets



5,808




-


Other long-term assets



5,219




7,167


Total assets


$

508,494



$

473,409











LIABILITIES









Current Liabilities:









Unearned passenger revenues


$

145,089



$

123,489


Accounts payable and accrued expenses



31,200




33,944


Lease liabilities - current



947




-


Long-term debt - current



2,000




2,000


Total current liabilities



179,236




159,433











Long-term debt, less current portion



185,660




188,089


Deferred tax liabilities



-




2,787


Lease liabilities



5,046




-


Other long-term liabilities



1,259




554


Total liabilities



371,201




350,863











COMMITMENTS AND CONTINGENCIES


















REDEEMABLE NONCONTROLLING INTEREST



6,771




6,502











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; 45,801,025 and 
     45,814,925 issued, 45,662,953 and 45,442,728 outstanding as of June 30, 2019 and 
     December 31, 2018, respectively



5




5


Additional paid-in capital



41,617




41,539


Retained earnings



90,832




75,171


Accumulated other comprehensive income



(1,932)




(671)


Total stockholders' equity



130,522




116,044


Total liabilities, stockholders' equity and redeemable noncontrolling interest


$

508,494



$

473,409


 

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,




2019



2018



2019



2018



















Tour revenues


$

76,658



$

69,473



$

166,311



$

151,883



















Operating expenses:

















Cost of tours



37,520




33,810




76,537




69,681


General and administrative



16,268




15,879




32,350




30,929


Selling and marketing



12,567




10,583




26,569




22,656


Depreciation and amortization



6,182




4,994




12,370




10,038


Total operating expenses



72,537




65,266




147,826




133,304



















Operating income



4,121




4,207




18,485




18,579



















Other expense:

















Interest expense, net



(3,188)




(2,870)




(6,176)




(5,604)


Gain (loss) on foreign currency



501




(1,141)




1,157




(1,592)


Other expense



(30)




(128)




(49)




(120)


Total other expense



(2,717)




(4,139)




(5,068)




(7,316)



















Income before income taxes



1,404




68




13,417




11,263


Income tax expense (benefit)



553




227




(2,513)




503



















Net income (loss)



851




(159)




15,930




10,760


Net (loss) income attributable to noncontrolling interest



(137)




(293)




269




(172)



















Net income available to common stockholders


$

988



$

134



$

15,661



$

10,932



















Weighted average shares outstanding

















Basic



46,155,981




45,894,155




45,607,307




45,322,541


Diluted



49,485,004




46,442,611




48,281,002




45,594,980



















Net income per share available to common stockholders

















Basic


$

0.02



$

-



$

0.34



$

0.24


Diluted


$

0.02



$

-



$

0.32



$

0.24


 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(unaudited)




For the six months ended
June 30,




2019



2018


Cash Flows From Operating Activities









Net income


$

15,930



$

10,760


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









Depreciation and amortization



12,370




10,038


Amortization of National Geographic fee



1,454




1,454


Amortization of deferred financing costs and other, net



911




1,045


Stock-based compensation



1,754




1,985


Deferred income taxes



(4,106)




152


(Gain) loss on foreign currency



(1,157)




1,592


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



(32)




(39)


Prepaid expenses and other current assets



(10,033)




(7,048)


Right-to-use lease assets



(5,808)




-


Lease liabilities



5,993




-


Unearned passenger revenues



21,600




9,915


Other long-term assets



(767)




(1,120)


Other long-term liabilities



706




15


Accounts payable and accrued expenses



(1,587)




(4,457)


Net cash provided by operating activities



37,228




24,780











Cash Flows From Investing Activities









Purchases of property and equipment



(42,311)




(31,502)


Net cash used in investing activities



(42,311)




(31,502)











Cash Flows From Financing Activities









Proceeds from long-term debt



-




200,000


Repayments of long-term debt



(1,000)




(170,625)


Payment of deferred financing costs



(2,340)




(6,486)


Repurchase under stock-based compensation plans and related tax impacts



(1,653)




(4,457)


Repurchase of warrants and common stock



(23)




(854)


Net cash (used in) provided by financing activities



(5,016)




17,578


Effect of exchange rate changes on cash



-




8


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



(10,099)




10,864


Cash, cash equivalents and restricted cash at beginning of period



122,150




103,500











Cash, cash equivalents and restricted cash at end of period


$

112,051



$

114,364











Supplemental disclosures of cash flow information:









Cash paid during the period:









Interest


$

6,999



$

6,534


Income taxes


$

564



$

776


Non-cash investing and financing activities:









Additional paid-in capital exercise proceeds of option shares


$

225



$

1,682


Additional paid-in capital exchange proceeds used for option shares


$

(225)



$

(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
June 30,



For the six months ended
June 30,




2019



2018



2019



2018


Net income (loss)


$

851



$

(159)



$

15,930



$

10,760


Interest expense, net



3,188




2,870




6,176




5,604


Income tax expense (benefit)



553




227




(2,513)




503


Depreciation and amortization



6,182




4,994




12,370




10,038


(Gain) loss on foreign currency



(501)




1,141




(1,157)




1,592


Other expense, net



30




128




49




120


Stock-based compensation



1,001




1,119




1,754




1,985


National Geographic fee amortization



727




727




1,454




1,454


Warrant exchange fees



466




-




466




-


Executive severance costs



-




287




-




287


Reorganization costs



-




113




15




293


Debt refinancing costs



-




3




-




997


Adjusted EBITDA


$

12,497



$

11,450



$

34,544



$

33,632


 

 

Reconciliation of Operating Income to Adjusted EBITDA


















Lindblad Segment



















For the three months ended
June 30,



For the six months ended
June 30,




2019



2018



2019



2018


Operating income


$

5,302



$

5,107



$

18,943



$

18,547


Depreciation and amortization



5,774




4,626




11,568




9,309


Stock-based compensation



1,001




1,119




1,754




1,985


National Geographic fee amortization



727




727




1,454




1,454


Warrant exchange fees



466




-




466




-


Executive severance costs



-




287




-




287


Reorganization costs



-




113




15




293


Debt refinancing costs



-




3




-




997


Adjusted EBITDA


$

13,270



$

11,982



$

34,200



$

32,871


 

Natural Habitat Segment





For the three months ended
June 30,



For the six months ended
June 30,




2019



2018



2019



2018


Operating (loss) income


$

(1,181)



$

(900)



$

(458)



$

32


Depreciation and amortization



408




368




802




729


Adjusted EBITDA


$

(773)



$

(532)



$

344



$

761


 

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,




2019



2018


Net cash provided by operating activities


$

37,228



$

24,780


Less: purchases of property and equipment



(42,311)




(31,502)


Free Cash Flow


$

(5,083)



$

(6,722)


 

 



For the three months ended
June 30,



For the six months ended
June 30,




2019



2018



2019



2018


Available Guest Nights



53,983




50,917




112,652




104,834


Guest Nights Sold



48,216




45,786




101,829




94,721


Occupancy



89

%



90

%



90

%



90

%

Maximum Guests



6,829




6,242




14,142




13,047


Number of Guests



6,269




5,684




12,801




11,767


Voyages



87




81




180




176


 

 

Calculation of Gross Yield and Net Yield Lindblad Segment


For the three months ended
June 30,



For the six months ended
June 30,




2019



2018



2019



2018


Guest ticket revenues


$

58,416



$

53,832



$

125,526



$

116,512


Other tour revenue



6,514




5,724




15,442




13,497


Tour Revenues



64,930




59,556




140,968




130,009


Less: Commissions



(4,908)




(4,369)




(10,759)




(9,923)


Less: Other tour expenses



(4,418)




(4,161)




(10,104)




(8,279)


Net Revenue


$

55,604



$

51,026



$

120,105



$

111,807


Available Guest Nights



53,983




50,917




112,652




104,834


Gross Yield


$

1,203



$

1,170



$

1,251



$

1,240


Net Yield



1,030




1,002




1,066




1,067


 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Supplemental Financial Schedules

(unaudited)


Calculation of Gross Cruise Cost and Net Cruise Cost







Lindblad Segment







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


For the three months ended
June 30,



For the six months ended
June 30,




2019



2018



2019



2018


Cost of tours


$

30,118



$

27,510



$

61,439



$

56,190


Plus: Selling and marketing



11,321




9,683




23,962




20,945


Plus: General and administrative



12,415




12,630




25,054




25,018


Gross Cruise Cost



53,854




49,823




110,455




102,153


Less: Commissions



(4,908)




(4,369)




(10,759)




(9,923)


Less: Other tour expenses



(4,418)




(4,161)




(10,104)




(8,279)


Net Cruise Cost



44,528




41,293




89,592




83,951


Less: Fuel Expense



(2,459)




(2,599)




(5,146)




(4,709)


Net Cruise Cost Excluding Fuel



42,069




38,694




84,446




79,242


Non-GAAP Adjustments:

















Stock-based compensation



(1,001)




(1,119)




(1,754)




(1,985)


National Geographic fee amortization



(727)




(727)




(1,454)




(1,454)


Warrant exchange fees



(466)




-




(466)




-


Executive severance costs



-




(287)




-




(287)


Reorganization costs



-




(113)




(15)




(293)


Debt refinancing costs



-




(3)




-




(997)


Adjusted Net Cruise Cost Excluding Fuel


$

39,875



$

36,445



$

80,757



$

74,226


Adjusted Net Cruise Cost


$

42,334



$

39,044



$

85,903



$

78,935


Available Guest Nights



53,983




50,917




112,652




104,834


Gross Cruise Cost per Available Guest Night


$

998



$

979



$

980



$

974


Net Cruise Cost per Available Guest Night



825




811




795




801


Net Cruise Cost Excluding Fuel per Available Guest Night



779




760




750




756


Adjusted Net Cruise Cost Excluding Fuel per Available Guest Night



739




716




717




708


Adjusted Net Cruise Cost per Available Guest Night



784




767




763




753


 

Reconciliation of 2019 Adjusted EBITDA guidance:


(in millions)


Full Year 2019


Income before income taxes


$

22




to



$

25


Depreciation and amortization



26




to




25


Interest expense, net



12




to




12


Stock-based compensation



4




to




4


National Geographic fee amortization



3




to




3


Other



-




to




1


Adjusted EBITDA


$

67




to



$

70


 

A reconciliation of net income to Adjusted EBITDA is not provided because the Company cannot estimate or predict with reasonable certainty certain discrete tax items, which could significantly impact that financial measure. 

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, the National Geographic fee amortization, debt refinancing costs and certain other items. We believe Adjusted EBITDA, when considered along with other performance measures, is a useful measure as it reflects certain operating drivers of the business, such as sales growth, operating costs, selling and administrative expense, and other operating income and expense. We believe Adjusted EBITDA helps provide a more complete understanding of the underlying operating results and trends and an enhanced overall understanding of our financial performance and prospects for the future. Adjusted EBITDA is not intended to be a measure of liquidity or cash flows from operations or a measure comparable to net income as it does not take into account certain requirements, such as unearned passenger revenues, capital expenditures and related depreciation, principal and interest payments, and tax payments. Our use of Adjusted EBITDA may not be comparable to other companies within the industry.

The following metrics apply to the Lindblad segment:

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

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

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

Gross Yield 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 us in a period.

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

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

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/lindblad-expeditions-holdings-inc-reports-2019-second-quarter-financial-results-300894587.html

SOURCE Lindblad Expeditions Holdings, Inc.