Press Release

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

Company Release - 10/30/2019 7:30 AM ET

NEW YORK, Oct. 30, 2019 /PRNewswire/ --

Third Quarter 2019 Highlights:

  • Tour revenues increased 16% to $101.0 million
  • Net loss available to common stockholders was $0.5 million, including a $2.7 million non-cash deemed dividend related to the warrant exchange
  • Adjusted EBITDA increased 41% to $24.1 million
  • Lindblad segment Net Yield increased 7% to $1,054 and Occupancy increased to 94%
  • Completed exchange offer and redeemed all outstanding warrants

Lindblad Expeditions Holdings, Inc. (NASDAQ: LIND; the "Company" or "Lindblad"), a global provider of expedition cruises and adventure travel experiences, today reported financial results for the quarter ended September 30, 2019.

Sven-Olof Lindblad, President and Chief Executive Officer, said, "Lindblad delivered another quarter of strong financial growth and sustained operating momentum this past quarter as the strategic investments we have made to expand our capacity are being met by the robust demand for high quality and immersive adventure travel.   Over the past two years we have dramatically increased the available berths across our fleet and, as we have added inventory, we have also been able to grow Occupancy and Net Yields.  At the same time, bookings for future travel have remained strong for both our existing ships, as well as for our two new state of the art polar builds, the National Geographic Endurance, scheduled for delivery in 2020, and the recently named National Geographic Resolution, scheduled for delivery in 2021.  With continued demand from loyal past guests and a rapidly growing population of new travelers looking for unique expedition experiences with a proven operator, we are well positioned to create additional shareholder value in the years ahead."

THIRD QUARTER RESULTS

Tour Revenues

Third quarter tour revenues of $101.0 million increased $13.7 million, or 16%, as compared to the same period in 2018. The increase was driven by growth of $12.1 million at the Lindblad segment and $1.7 million at Natural Habitat.

Lindblad segment tour revenues of $76.6 million increased $12.1 million, or 19%, compared to the third quarter a year ago primarily due to a 14% 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 7% increase in Net Yield to $1,054 due primarily to higher pricing and changes in itineraries, as well as an increase in Occupancy to 94%.

Natural Habitat revenues of $24.4 million increased $1.7 million, or 7%, compared to the third quarter 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 third quarter was $0.5 million, $0.01 per diluted share, as compared with net income available to common stockholders of $5.1 million, $0.11 per diluted share, in the third quarter of 2018. The $5.6 million decrease primarily reflects improved operating results that were more than offset by a $4.7 million increase in income tax expense, a $2.7 million non-cash deemed dividend related to completing the warrant exchange, a $2.3 million loss on foreign currency and 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

Third quarter Adjusted EBITDA of $24.1 million increased $7.0 million, or 41%, as compared to the same period in 2018. The increase was driven by growth of $5.9 million at the Lindblad segment and $1.1 million at Natural Habitat. 

Lindblad segment Adjusted EBITDA of $20.6 million increased $5.9 million, or 40%, as compared to the third quarter a year ago as the increased tour revenues were partially offset by operating costs on the National Geographic Venture. The third quarter also included increased costs due to higher marketing spend to drive long-term growth initiatives, higher commission expense related to the revenue growth and increased personnel costs partially offset by lower value-added tax expense.

Natural Habitat Adjusted EBITDA of $3.5 million increased $1.1 million, or 43%, as compared to the third quarter a year ago as the revenue growth was partially 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 September 30,



For the nine months ended September 30,



2019



2018



Change



%



2019



2018



Change



%

Tour revenues:
































Lindblad


$

76,581



$

64,507



$

12,074



19%



$

217,549



$

194,516



$

23,033



12%

Natural Habitat



24,402




22,735




1,667



7%




49,745




44,609




5,136



12%

Total tour revenues


$

100,983



$

87,242



$

13,741



16%



$

267,294



$

239,125



$

28,169



12%

Operating Income:































Lindblad


$

12,570



$

8,209



$

4,361



53%



$

31,514



$

26,755



$

4,759



18%

Natural Habitat



3,089




2,072




1,017



49%




2,631




2,105




526



25%

Total operating income


$

15,659



$

10,281



$

5,378



52%



$

34,145



$

28,860



$

5,285



18%

Adjusted EBITDA:































Lindblad


$

20,600



$

14,668



$

5,932



40%



$

54,802



$

47,538



$

7,264



15%

Natural Habitat



3,510




2,451




1,059



43%




3,854




3,213




641



20%

Total adjusted EBITDA


$

24,110



$

17,119



$

6,991



41%



$

58,656



$

50,751



$

7,905



16%

Liquidity

The Company's cash, cash equivalents and restricted cash were $112.1 million as of September 30, 2019, as compared with $122.2 million as of December 31, 2018. The decrease primarily reflects purchases of property and equipment of $76.7 million, mostly related to the construction of two new vessels, partially offset by $41.6 million in net cash provided by operating activities due to the strong operating performance.  The current year also includes $25.1 million in net cash provided by financing activities primarily due to $30.5 million borrowings under our second export credit agreement in conjunction with our second installment payment on the National Geographic Resolution.  The loan bears interest at a floating interest rate equal to three-month LIBOR plus a margin of 3.00% per annum.

Free cash flow use was $35.2 million for the nine months ended September 30, 2019 as compared with a use of $6.3 million in the same period of 2018 primarily due to 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.

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 the first quarter of 2020 and, in February 2019, we signed a contract for her sister ship, the National Geographic Resolution, scheduled for delivery in the fourth quarter of 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 August 1, 2019 the Company completed 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 Company issued 3,824,959 shares of common stock under the Exchange Offer with the remaining warrants converted into 45,981 shares of common stock.  Following the Exchange Offer and Consent Solicitation, no warrants remain outstanding. As the fair value of the warrants exchanged in the Warrant Exchange offer was less than the fair value of the common stock issued, the Company recorded a non-cash deemed dividend of approximately $2.7 million for the incremental fair value provided to the warrant holders.

The Company currently has a $35 million stock repurchase plan in place. As of October 29, 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 October 29, 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 $341 - $346 million (10 - 11% growth)
  • Adjusted EBITDA of $67 - $70 million (22 - 28% growth)

As of October 29, 2019, Lindblad segment bookings for travel during 2019 have increased 11% as compared with bookings for 2018 as of the same date a year ago. Additionally, the Lindblad segment had 100% of revised full year 2019 projected guest ticket revenues on the books versus 100% 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 October 30, 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
September 30,
2019



As of December
31, 2018


ASSETS


(unaudited)






Current Assets:









Cash and cash equivalents


$

104,135



$

113,396


Restricted cash



7,995




8,755


Marine operating supplies



5,479




5,165


Inventories



1,910




1,604


Prepaid expenses and other current assets



24,044




21,263


Total current assets



143,563




150,183











Property and equipment, net



345,280




285,979


Goodwill



22,105




22,105


Intangibles, net



6,791




7,975


Right-to-use lease assets



6,357




-


Other long-term assets



5,517




7,167


Total assets


$

529,613



$

473,409











LIABILITIES









Current Liabilities:









Unearned passenger revenues


$

124,605



$

123,489


Accounts payable and accrued expenses



32,914




33,944


Lease liabilities - current



1,302




-


Long-term debt - current



2,000




2,000


Total current liabilities



160,821




159,433











Long-term debt, less current portion



216,117




188,089


Deferred tax liabilities



6,964




2,787


Lease liabilities



5,272




-


Other long-term liabilities



5,083




554


Total liabilities



394,257




350,863











COMMITMENTS AND CONTINGENCIES


















REDEEMABLE NONCONTROLLING INTEREST



7,336




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; 49,716,067 and
45,814,925 issued, 49,625,043 and 45,442,728 outstanding as of September 30, 2019 and
December 31, 2018, respectively



5




5


Additional paid-in capital



45,377




41,539


Retained earnings



90,339




75,171


Accumulated other comprehensive income



(7,701)




(671)


Total stockholders' equity



128,020




116,044


Total liabilities, stockholders' equity and redeemable noncontrolling interest


$

529,613



$

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 September 30,



For the nine months ended
September 30,




2019



2018



2019



2018



















Tour revenues


$

100,983



$

87,242



$

267,294



$

239,125



















Operating expenses:

















Cost of tours



48,294




44,964




124,831




114,645


General and administrative



15,266




14,718




47,615




45,647


Selling and marketing



15,531




12,255




42,100




34,911


Depreciation and amortization



6,233




5,024




18,603




15,062


Total operating expenses



85,324




76,961




233,149




210,265



















Operating income



15,659




10,281




34,145




28,860



















Other (expense) income:

















Interest expense, net



(3,214)




(2,409)




(9,391)




(8,013)


(Loss) gain on foreign currency



(2,338)




163




(1,181)




(1,430)


Other (expense) income



(30)




1




(79)




(118)


Total other expense



(5,582)




(2,245)




(10,651)




(9,561)



















Income before income taxes



10,077




8,036




23,494




19,299


Income tax expense



7,351




2,690




4,838




3,194



















Net income



2,726




5,346




18,656




16,105


Net income attributable to noncontrolling interest



565




279




834




107


Net income attributable to Lindblad Expeditions Holdings, Inc



2,161




5,067




17,822




15,998


Non-cash deemed dividend to warrant holders



2,654




-




2,654




-



















Net (loss) income available to common stockholders


$

(493)



$

5,067



$

15,168



$

15,998



















Weighted average shares outstanding

















Basic



48,863,506




45,423,127




46,704,634




45,356,438


Diluted



48,863,506




47,690,395




49,091,370




45,963,669



















Net (loss) income per share available to common stockholders

















Basic


$

(0.01)



$

0.11



$

0.32



$

0.35


Diluted


$

(0.01)



$

0.11



$

0.31



$

0.35


 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(unaudited)




For the nine months ended
September 30,




2019



2018


Cash Flows From Operating Activities









Net income


$

18,656



$

16,105


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









Depreciation and amortization



18,603




15,062


Amortization of National Geographic fee



2,181




2,181


Amortization of deferred financing costs and other, net



1,392




1,477


Stock-based compensation



2,671




3,256


Deferred income taxes



4,177




2,653


Loss on foreign currency



1,181




1,430


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



(620)




169


Prepaid expenses and other current assets



(2,780)




(1,806)


Right-to-use lease assets



(6,357)




-


Lease liabilities



6,574




-


Unearned passenger revenues



1,116




449


Other long-term assets



(7,561)




(1,981)


Other long-term liabilities



4,530




22


Accounts payable and accrued expenses



(2,213)




(247)


Net cash provided by operating activities



41,550




39,258











Cash Flows From Investing Activities









Purchases of property and equipment



(76,720)




(45,510)


Net cash used in investing activities



(76,720)




(45,510)











Cash Flows From Financing Activities









Proceeds from long-term debt



30,476




200,000


Repayments of long-term debt



(1,500)




(171,125)


Payment of deferred financing costs



(2,340)




(6,486)


Repurchase under stock-based compensation plans and related tax impacts



(1,778)




(4,509)


Warrants exercised



314




-


Repurchase of warrants and common stock



(23)




(854)


Net cash provided by financing activities



25,149




17,026


Effect of exchange rate changes on cash



-




7


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



(10,021)




10,781


Cash, cash equivalents and restricted cash at beginning of period



122,151




103,500











Cash, cash equivalents and restricted cash at end of period


$

112,130



$

114,281











Supplemental disclosures of cash flow information:









Cash paid during the period:









Interest


$

10,651



$

9,952


Income taxes


$

1,893



$

468


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)


Non-cash deemed dividend to warrant holders


$

2,654



$

-


 

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 September 30,



For the nine months ended
September 30,




2019



2018



2019



2018


Net income


$

2,726



$

5,346



$

18,656



$

16,105


Interest expense, net



3,214




2,409




9,391




8,013


Income tax expense



7,351




2,690




4,838




3,194


Depreciation and amortization



6,233




5,024




18,603




15,062


Loss (gain) on foreign currency



2,338




(163)




1,181




1,430


Other expense (income)



30




(1)




79




118


Stock-based compensation



917




1,271




2,671




3,256


National Geographic fee amortization



727




727




2,181




2,181


Warrant exchange fees



504




-




970




-


Executive severance costs



-




(215)




-




71


Reorganization costs



70




31




86




324


Debt refinancing costs



-




-




-




997


Adjusted EBITDA


$

24,110



$

17,119



$

58,656



$

50,751



Reconciliation of Operating Income to Adjusted EBITDA

 

Lindblad Segment



















For the three months
ended September 30,



For the nine months ended
September 30,




2019



2018



2019



2018


Operating income


$

12,570



$

8,209



$

31,514



$

26,755


Depreciation and amortization



5,812




4,645




17,380




13,954


Stock-based compensation



917




1,271




2,671




3,256


National Geographic fee amortization



727




727




2,181




2,181


Warrant exchange fees



504




-




970




-


Executive severance costs



-




(215)




-




71


Reorganization costs



70




31




86




324


Debt refinancing costs



-




-




-




997


Adjusted EBITDA


$

20,600



$

14,668



$

54,802



$

47,538



Natural Habitat Segment



















For the three months
ended September 30,



For the nine months ended
September 30,




2019



2018



2019



2018


Operating income


$

3,089



$

2,072



$

2,631



$

2,105


Depreciation and amortization



421




379




1223




1108


Adjusted EBITDA


$

3,510



$

2,451



$

3,854



$

3,213


 

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 nine months ended
September 30,




2019



2018


Net cash provided by operating activities


$

41,550



$

39,258


Less: purchases of property and equipment



(76,720)




(45,510)


Free Cash Flow


$

(35,170)



$

(6,252)


 



For the three months
ended
September 30,



For the nine months ended
September 30,




2019



2018



2019



2018


Available Guest Nights



63,386




55,741




176,038




160,575


Guest Nights Sold



59,682




50,993




161,511




145,714


Occupancy



94

%



92

%



92

%



91

%

Maximum Guests



7,721




7,137




21,863




20,388


Number of Guests



7,294




6,582




20,095




18,553


Voyages



98




93




278




269



Calculation of Gross Yield and Net Yield

Lindblad Segment


For the three months
ended September 30,



For the nine months ended
September 30,




2019



2018



2019



2018


Guest ticket revenues


$

70,319



$

58,187



$

195,845



$

174,699


Other tour revenue



6,262




6,320




21,704




19,817


Tour Revenues



76,581




64,507




217,549




194,516


Less: Commissions



(5,716)




(5,055)




(16,475)




(14,977)


Less: Other tour expenses



(4,051)




(4,673)




(14,155)




(12,952)


Net Revenue


$

66,814



$

54,779



$

186,919



$

166,587


Available Guest Nights



63,386




55,741




176,038




160,575


Gross Yield


$

1,208



$

1,157



$

1,236



$

1,211


Net Yield



1,054




983




1,062




1,037


 

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 September 30,



For the nine months ended
September 30,



2019



2018



2019



2018


Cost of tours


$

33,031



$

29,647



$

94,470



$

85,837


Plus: Selling and marketing



13,804




10,754




37,767




31,699


Plus: General and administrative



11,364




11,252




36,416




36,271


Gross Cruise Cost



58,199




51,653




168,653




153,807


Less: Commissions



(5,716)




(5,055)




(16,475)




(14,977)


Less: Other tour expenses



(4,051)




(4,673)




(14,155)




(12,952)


Net Cruise Cost



48,432




41,925




138,023




125,878


Less: Fuel Expense



(2,251)




(2,168)




(7,397)




(6,876)


Net Cruise Cost Excluding Fuel



46,181




39,757




130,626




119,002


Non-GAAP Adjustments:







-










Stock-based compensation



(917)




(1,271)




(2,671)




(3,256)


National Geographic fee amortization



(727)




(727)




(2,181)




(2,181)


Warrant exchange fees



(504)




-




(970)




-


Executive severance costs



-




215




-




(71)


Reorganization costs



(70)




(31)




(86)




(324)


Debt refinancing costs



-




-




-




(997)


Adjusted Net Cruise Cost Excluding Fuel


$

43,963



$

37,943



$

124,718



$

112,173


Adjusted Net Cruise Cost


$

46,214



$

40,111



$

132,115



$

119,049


Available Guest Nights



63,386




55,741




176,038




160,575


Gross Cruise Cost per Available Guest Night


$

918



$

927



$

958



$

958


Net Cruise Cost per Available Guest Night



764




752




784




784


Net Cruise Cost Excluding Fuel per Available Guest Night



729




713




742




741


Adjusted Net Cruise Cost Excluding Fuel per Available Guest Night



694




681




708




699


Adjusted Net Cruise Cost per Available Guest Night



729




720




750




741


 

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:http://www.prnewswire.com/news-releases/lindblad-expeditions-holdings-inc-reports-2019-third-quarter-financial-results-300947780.html

SOURCE Lindblad Expeditions Holdings, Inc.