Third Quarter 2023 Highlights:
- Total revenues increased 22% to $176.0
million
- Net income available to stockholders increased $14.3 million to $4.5
million
- Adjusted EBITDA increased 83% to $34.0
million
- Lindblad segment available guest nights increased 21%
- Net yield per available guest night increased 9% to
$1,110 and occupancy was 81%
- Strong reservations for future travel with bookings for 2023
42% ahead of bookings for 2019 at the same point in 2019
NEW
YORK, Nov. 2, 2023 /PRNewswire/ -- 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 third
quarter ended September 30, 2023.
Sven Lindblad, Chief Executive
Officer, said "Lindblad delivered record third quarter results as
we continue to ramp operations and begin to meaningfully leverage
the expanded earnings potential of the Company. The increased fleet
capacity and diversified land offerings we have strategically
invested in over the last several years provide an unparalleled
opportunity to capitalize on the growing demand for experiential
travel. At the same time, we have been committed to significantly
upgrading our technological footprint and overall infrastructure,
to help us maximize that opportunity and further support future
growth initiatives. Overall, as we continue to navigate the complex
short-term operating environment, we are excited by the momentum
across our platform and look forward to building on that success in
the months and years ahead. Our focus today remains the same as it
has been for the last five decades, providing unmatched high
quality, authentic and immersive travel experiences in the world's
most remarkable destinations."
THIRD QUARTER RESULTS
Tour Revenues
Third quarter tour revenues of $176.0
million increased $31.2
million, or 22%, as compared to the same period in 2022. The
increase was driven by a $25.0
million increase at the Lindblad segment and a $6.2 million increase at the Land Experiences
segment.
Lindblad segment tour revenues of $108.8
million increased 25.0 million, or 30%, compared to the
third quarter a year ago primarily due to a 21% increase in
available guest nights as we continued to ramp operations. The
year-on-year growth was also driven by a 9% increase in net yield
per available guest night to $1,110
due to increased pricing and broader fleet utilization, while
occupancy levels were in-line with a year ago at 81%.
Land Experiences tour revenues of $67.2
million increased $6.2
million, or 10%, compared to the third quarter a year ago
primarily due to additional departures and higher pricing.
Net Income
Net income available to stockholders for the
third quarter was $4.5 million,
$0.08 per diluted share, as compared
with net loss available to stockholders of $9.8 million, $0.18
per diluted share, in the third quarter of 2022. The $14.3 million improvement primarily reflects the
ramp in operations, partially offset by a $3.1 million increase in interest expense due to
additional borrowings and higher rates and a $1.3 million increase in stock-based
compensation.
Adjusted EBITDA
Third quarter Adjusted EBITDA of $34.0
million increased $15.4 million, or 83%, as compared to
the same period in 2022 driven by a $15.2
million increase at the Lindblad segment and a
$0.1 million increase at the Land
Experiences segment.
Lindblad segment Adjusted EBITDA of $20.1
million increased $15.2 million as compared to the same
period in 2022, primarily due to increased tour revenues, partially
offset by higher cost of tours and personnel costs related to the
ramp in operations, increased commissions related to the revenue
and bookings growth and higher marketing spend to drive future
bookings.
Land Experiences segment Adjusted EBITDA of $13.8 million increased $0.1 million as compared to the same period in
2022, as increased tour revenues was mostly offset by higher cost
of tours and increased personnel costs related to the ramp in
operations, increased commissions related to the revenue and
bookings growth and higher marketing costs to drive future
bookings.
|
|
For the three months
ended
September
30,
|
|
|
For the nine months
ended
September
30,
|
(In
thousands)
|
|
2023
|
|
|
2022
|
|
|
Change
|
|
|
%
|
|
|
2023
|
|
|
2022
|
|
|
Change
|
|
|
%
|
Tour
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
108,750
|
|
|
$
|
83,741
|
|
|
$
|
25,009
|
|
|
|
30 %
|
|
|
$
|
311,660
|
|
|
$
|
198,063
|
|
|
$
|
113,597
|
|
|
|
57 %
|
Land
Experiences
|
|
|
67,239
|
|
|
|
61,042
|
|
|
|
6,197
|
|
|
|
10 %
|
|
|
|
132,523
|
|
|
|
105,477
|
|
|
|
27,046
|
|
|
|
26 %
|
Total tour
revenues
|
|
$
|
175,989
|
|
|
$
|
144,783
|
|
|
$
|
31,206
|
|
|
|
22 %
|
|
|
$
|
444,183
|
|
|
$
|
303,540
|
|
|
$
|
140,643
|
|
|
|
46 %
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
7,501
|
|
|
$
|
(7,142)
|
|
|
$
|
14,643
|
|
|
|
NM
|
|
|
$
|
8,576
|
|
|
$
|
(60,380)
|
|
|
$
|
68,956
|
|
|
|
NM
|
Land
Experiences
|
|
|
12,975
|
|
|
|
12,950
|
|
|
|
25
|
|
|
|
0 %
|
|
|
|
15,868
|
|
|
|
12,629
|
|
|
|
3,239
|
|
|
|
26 %
|
Total operating income
(loss)
|
|
$
|
20,476
|
|
|
$
|
5,808
|
|
|
$
|
14,668
|
|
|
|
NM
|
|
|
$
|
24,444
|
|
|
$
|
(47,751)
|
|
|
$
|
72,195
|
|
|
|
NM
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindblad
|
|
$
|
20,119
|
|
|
$
|
4,889
|
|
|
$
|
15,230
|
|
|
|
NM
|
|
|
$
|
48,887
|
|
|
$
|
(23,560)
|
|
|
$
|
72,447
|
|
|
|
NM
|
Land
Experiences
|
|
|
13,831
|
|
|
|
13,699
|
|
|
|
132
|
|
|
|
1 %
|
|
|
|
18,472
|
|
|
|
14,735
|
|
|
|
3,737
|
|
|
|
25 %
|
Total adjusted
EBITDA
|
|
$
|
33,950
|
|
|
$
|
18,588
|
|
|
$
|
15,362
|
|
|
|
83 %
|
|
|
$
|
67,359
|
|
|
$
|
(8,825)
|
|
|
$
|
76,184
|
|
|
|
NM
|
Balance Sheet and Liquidity
The Company's cash and cash equivalents, restricted cash and
short-term securities were $204.8
million as of September 30,
2023, as compared with $129.6
million as of December 31,
2022. The increase primarily reflects $61.0 million in net cash from financing
activities primarily related to the May issuance of $275.0 million of 9.00% senior secured notes and
$35.3 million in cash from operations
due to the strong operating performance and increased bookings for
future travel, partially offset by $22.7
million in cash used in purchasing property and equipment,
predominantly related to maintenance on existing vessels and
investments in our digital initiatives.
During May, the Company issued $275.0
million of 9.00% senior secured notes, maturing 2028, with
proceeds used primarily to pay the outstanding borrowings under the
Company's previously existing export credit agreements. The senior
secured notes are guaranteed on a senior secured basis by the
Company and certain of the Company's subsidiaries and are
collateralized by certain of the Company's assets.
As of September 30, 2023, the
Company had a total debt position of $635.1
million and was in compliance with all of its applicable
debt covenants.
FINANCIAL OUTLOOK
The Company's current expectations for the full year 2023 are as
follows:
- Tour revenues of $550 -
$575 million
- Adjusted EBITDA of $70 -
$80 million
The Company has substantial advance reservations for future
travel with strong gross bookings, partially offset by short-term
cancellations. As of October 30,
2023, Lindblad segment bookings for travel during 2023 have
increased 42% as compared with bookings for 2019 as of the same
date in 2019.
STOCK REPURCHASE PLAN
The Company currently has a $35.0
million stock repurchase plan in place. As of October 30, 2023, the Company had repurchased
875,218 shares and 6.0 million warrants under the plan for a total
of $23.0 million and had $12.0 million remaining under the plan. As of
October 30, 2023, there were
53.4 million shares common stock outstanding.
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 November 2, 2023, to discuss the earnings of the
Company. The conference call can be accessed by dialing
833-470-1428 (United States),
1-929-526-1599 (International). The Access Code is 299201. 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 land-based travel through its subsidiaries,
Natural Habitat, Inc. ("Natural Habitat"), Off the Beaten Path LLC
("Off the Beaten Path"), DuVine Cycling + Adventure Co. ("DuVine"),
and Classic Journeys, LLC ("Classic Journeys").
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 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.
Classic Journeys is a luxury cultural walking tour company that
operates a portfolio of curated tours centered around cinematic
walks led by expert local guides. Classic Journeys offers active
small-group and private custom journeys in over 50 countries around
the world.
DuVine designs and leads luxury bike tours in the world's most
amazing destinations, from Italy's
sun-bleached villages and the medieval towns of Provence to
Portugal's Douro Valley and the
vineyards of Napa, California.
Guests bike, eat, drink, and sleep their way through these regions
and many more while sampling the finest cuisine, hotels, and
wine.
Off the Beaten Path is an outdoor, active travel company
offering guided small group adventures and private custom journeys
that connect travelers with the wild nature and authentic culture
of their destinations. Off the Beaten Path's trips extend across
the globe, with a focus on exceptional national park experiences in
the Rocky Mountains, Desert Southwest, and Alaska.
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. Many of these risks and
uncertainties are currently amplified by, and will continue to be
amplified by, or in the future may be amplified by, the COVID-19
outbreak. It is not possible to predict or identify all such risks.
There may be additional risks that we consider immaterial or which
are unknown. These factors include, but are not limited to, the
following: (i) events and conditions around the world, including
war and other military actions, such as the Israel-Hamas war, the
current conflict between Russia
and Ukraine, inflation, higher
fuel prices, higher interest rates and other general concerns about
the state of the economy or other events impacting the ability or
desire of people to travel; (ii) suspended operations, cancelling
or rescheduling of voyages and other potential disruptions to our
business and operations related to the COVID-19
virus, the Russia-Ukraine
conflict, political unrest in destinations we visit, outbreak of
disease in any destination we visit or another unexpected
event; (iii) the Israel-Hamas war, impacts of inflation, the
COVID-19 virus and/or the Russia-Ukraine conflict on our financial condition,
liquidity, results of operations, cash flows, employees, plans and
growth; (iv) increases in fuel prices, changes in fuels
consumed and availability of fuel supply in the geographies in
which we operate or in general; (v) the impacts of inflation
and negative economic conditions or negative economic outlooks on
the demand for expedition travel; (vi) the loss of key employees,
our inability to recruit or retain qualified shoreside and
shipboard employees and increased labor costs; (vii) the impacts of
delays or cost overruns with respect to anticipated or
unanticipated drydock, maintenance, modifications or other required
construction related to any of our vessels; (viii) unscheduled
disruptions in our business due to travel restrictions, weather
events, mechanical failures, pandemics or other events; (ix)
any change in state classifications of our workforce; (x) changes
adversely affecting the business in which we are engaged; (xi)
management of our growth and our ability to execute on our planned
growth, including our ability to successfully integrate
acquisitions; (xii) our business strategy and plans; (xiii) our
ability to maintain or renew (on favorable terms or at all) our
relationship with National Geographic and/or World Wildlife Fund;
(xiv) compliance with new and existing laws and regulations,
including environmental regulations and travel advisories and
restrictions; (xv) compliance with the financial and/or operating
covenants in our debt arrangements; (xvi) the impact of severe or
unusual weather conditions, including climate change, on our
business; (xvii) adverse publicity regarding the travel and cruise
industry in general; (xviii) loss of business due to
competition; (xix) the inability to meet or achieve our
sustainability related goals, aspirations, initiatives, and our
public statements and disclosures regarding them; (xx) the
result of future financing efforts; and (xxi) 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,
2023
|
|
|
As of
December 31,
2022
|
|
|
(unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
168,015
|
|
|
$
|
87,177
|
Restricted
cash
|
|
|
36,802
|
|
|
|
28,847
|
Short-term
securities
|
|
|
-
|
|
|
|
13,591
|
Marine operating
supplies
|
|
|
6,528
|
|
|
|
9,961
|
Inventories
|
|
|
3,087
|
|
|
|
1,965
|
Prepaid expenses and
other current assets
|
|
|
44,722
|
|
|
|
41,778
|
Total current
assets
|
|
|
259,154
|
|
|
|
183,319
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
530,337
|
|
|
|
539,406
|
Goodwill
|
|
|
42,017
|
|
|
|
42,017
|
Intangibles,
net
|
|
|
9,864
|
|
|
|
11,219
|
Deferred tax
asset
|
|
|
2,305
|
|
|
|
2,167
|
Right-to-use lease
assets
|
|
|
3,271
|
|
|
|
4,345
|
Other long-term
assets
|
|
|
4,657
|
|
|
|
5,502
|
Total assets
|
|
$
|
851,605
|
|
|
$
|
787,975
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
Unearned passenger
revenues
|
|
$
|
250,568
|
|
|
$
|
245,101
|
Accounts payable and
accrued expenses
|
|
|
66,701
|
|
|
|
71,019
|
Long-term debt -
current
|
|
|
46
|
|
|
|
23,337
|
Lease liabilities -
current
|
|
|
1,718
|
|
|
|
1,663
|
Total current
liabilities
|
|
|
319,033
|
|
|
|
341,120
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
620,888
|
|
|
|
529,452
|
Deferred tax
liabilities
|
|
|
1,454
|
|
|
|
-
|
Lease
liabilities
|
|
|
1,807
|
|
|
|
2,961
|
Other long-term
liabilities
|
|
|
89
|
|
|
|
88
|
Total
liabilities
|
|
|
943,271
|
|
|
|
873,621
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
-
|
|
|
|
-
|
Series A redeemable
convertible preferred stock, 165,000 shares authorized; 62,000
shares
issued and outstanding
as of September 30, 2023 and December 31, 2022,
respectively
|
|
|
72,397
|
|
|
|
69,143
|
Redeemable
noncontrolling interests
|
|
|
34,232
|
|
|
|
27,886
|
|
|
|
106,629
|
|
|
|
97,029
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
DEFICIT
|
|
|
|
|
|
|
|
Preferred stock,
$0.0001 par value, 1,000,000 shares authorized; 62,000 Series A
shares
issued and outstanding
as of September 30, 2023 and December 31, 2022,
respectively
|
|
|
-
|
|
|
|
-
|
Common stock, $0.0001
par value, 200,000,000 shares authorized; 53,379,750 and
53,177,437 issued,
53,321,818 and 53,110,132 outstanding as of September 30, 2023
and
December 31, 2022,
respectively
|
|
|
5
|
|
|
|
5
|
Additional paid-in
capital
|
|
|
92,549
|
|
|
|
83,850
|
Accumulated
deficit
|
|
|
(290,849)
|
|
|
|
(266,530)
|
Total stockholders'
deficit
|
|
|
(198,295)
|
|
|
|
(182,675)
|
Total liabilities,
mezzanine equity and stockholders' deficit
|
|
$
|
851,605
|
|
|
$
|
787,975
|
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,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tour
revenues
|
|
$
|
175,989
|
|
|
$
|
144,783
|
|
|
$
|
444,183
|
|
|
$
|
303,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
tours
|
|
|
95,590
|
|
|
|
87,576
|
|
|
|
245,293
|
|
|
|
208,023
|
General and
administrative
|
|
|
30,015
|
|
|
|
24,535
|
|
|
|
85,589
|
|
|
|
68,882
|
Selling and
marketing
|
|
|
19,387
|
|
|
|
16,025
|
|
|
|
55,197
|
|
|
|
41,193
|
Depreciation and
amortization
|
|
|
10,521
|
|
|
|
10,839
|
|
|
|
33,660
|
|
|
|
33,193
|
Total operating
expenses
|
|
|
155,513
|
|
|
|
138,975
|
|
|
|
419,739
|
|
|
|
351,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
20,476
|
|
|
|
5,808
|
|
|
|
24,444
|
|
|
|
(47,751)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(11,482)
|
|
|
|
(8,369)
|
|
|
|
(33,593)
|
|
|
|
(26,500)
|
(Loss) gain on foreign
currency
|
|
|
(455)
|
|
|
|
(872)
|
|
|
|
46
|
|
|
|
(1,417)
|
Other (expense)
income
|
|
|
(77)
|
|
|
|
(333)
|
|
|
|
(3,773)
|
|
|
|
84
|
Total other
expense
|
|
|
(12,014)
|
|
|
|
(9,574)
|
|
|
|
(37,320)
|
|
|
|
(27,833)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
|
8,462
|
|
|
|
(3,766)
|
|
|
|
(12,876)
|
|
|
|
(75,584)
|
Income tax
expense
|
|
|
3
|
|
|
|
1,732
|
|
|
|
1,587
|
|
|
|
619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
8,459
|
|
|
|
(5,498)
|
|
|
|
(14,463)
|
|
|
|
(76,203)
|
Net income attributable
to noncontrolling interest
|
|
|
2,821
|
|
|
|
3,228
|
|
|
|
3,742
|
|
|
|
3,000
|
Net income (loss)
attributable to Lindblad Expeditions Holdings, Inc.
|
|
|
5,638
|
|
|
|
(8,726)
|
|
|
|
(18,205)
|
|
|
|
(79,203)
|
Series A redeemable
convertible preferred stock dividend
|
|
|
1,098
|
|
|
|
1,036
|
|
|
|
3,255
|
|
|
|
3,618
|
Net income (loss)
available to stockholders
|
|
$
|
4,540
|
|
|
$
|
(9,762)
|
|
|
$
|
(21,460)
|
|
|
$
|
(82,821)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
53,309,336
|
|
|
|
53,045,329
|
|
|
|
53,227,642
|
|
|
|
51,665,912
|
Diluted
|
|
|
53,401,799
|
|
|
|
53,045,329
|
|
|
|
53,227,642
|
|
|
|
51,665,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undistributed income
(loss) per share available to stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.08
|
|
|
$
|
(0.18)
|
|
|
$
|
(0.40)
|
|
|
$
|
(1.60)
|
Diluted
|
|
$
|
0.08
|
|
|
$
|
(0.18)
|
|
|
$
|
(0.40)
|
|
|
$
|
(1.60)
|
LINDBLAD EXPEDITIONS
HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
|
|
|
|
For the nine months
ended
September 30,
|
|
|
2023
|
|
|
2022
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(14,463)
|
|
|
$
|
(76,203)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
33,660
|
|
|
|
33,193
|
Amortization of
deferred financing costs and other, net
|
|
|
2,444
|
|
|
|
1,988
|
Amortization of
right-to-use lease assets
|
|
|
1,074
|
|
|
|
626
|
Stock-based
compensation
|
|
|
9,245
|
|
|
|
5,283
|
Deferred income
taxes
|
|
|
1,241
|
|
|
|
759
|
Change in fair value
of contingent acquisition consideration
|
|
|
-
|
|
|
|
111
|
(Gain) loss on foreign
currency
|
|
|
(46)
|
|
|
|
1,417
|
Write-off of
unamortized issuance costs related to debt refinancing
|
|
|
3,860
|
|
|
|
9,004
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
Marine operating
supplies and inventories
|
|
|
2,311
|
|
|
|
(1,195)
|
Prepaid expenses and
other current assets
|
|
|
(2,944)
|
|
|
|
(19,575)
|
Unearned passenger
revenues
|
|
|
5,467
|
|
|
|
34,407
|
Other long-term
assets
|
|
|
(1,165)
|
|
|
|
3,242
|
Other long-term
liabilities
|
|
|
-
|
|
|
|
844
|
Accounts payable and
accrued expenses
|
|
|
(4,272)
|
|
|
|
7,526
|
Operating lease
liabilities
|
|
|
(1,099)
|
|
|
|
(658)
|
Net cash provided by
operating activities
|
|
|
35,313
|
|
|
|
769
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(22,723)
|
|
|
|
(29,566)
|
Sale of short-term
securities
|
|
|
15,163
|
|
|
|
-
|
Net cash used in
investing activities
|
|
|
(7,560)
|
|
|
|
(29,566)
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
|
Proceeds from
long-term debt
|
|
|
275,000
|
|
|
|
360,000
|
Repayments of
long-term debt
|
|
|
(205,704)
|
|
|
|
(346,301)
|
Payment of deferred
financing costs
|
|
|
(7,455)
|
|
|
|
(10,859)
|
Repurchase under
stock-based compensation plans and related tax impacts
|
|
|
(801)
|
|
|
|
(766)
|
Net cash provided by
financing activities
|
|
|
61,040
|
|
|
|
2,074
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
|
|
88,793
|
|
|
|
(26,723)
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
|
116,024
|
|
|
|
172,693
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$
|
204,817
|
|
|
$
|
145,970
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
Cash paid during the
period:
|
|
|
|
|
|
|
|
Interest
|
|
$
|
30,369
|
|
|
$
|
22,159
|
Income
taxes
|
|
|
388
|
|
|
|
226
|
Non-cash investing and
financing activities:
|
|
|
|
|
|
|
|
Non-cash preferred
stock dividend
|
|
|
3,255
|
|
|
|
3,618
|
LINDBLAD EXPEDITIONS
HOLDINGS, INC. AND SUBSIDIARIES
Supplemental Financial Schedules (In thousands)
(unaudited)
|
|
Reconciliation of
Net Income (Loss) to Adjusted EBITDA Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
September 30,
|
|
|
For the nine months
ended
September 30,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Net income
(loss)
|
|
$
|
8,459
|
|
|
$
|
(5,498)
|
|
|
$
|
(14,463)
|
|
|
$
|
(76,203)
|
Interest expense,
net
|
|
|
11,482
|
|
|
|
8,369
|
|
|
|
33,593
|
|
|
|
26,500
|
Income tax
expense
|
|
|
3
|
|
|
|
1,732
|
|
|
|
1,587
|
|
|
|
619
|
Depreciation and
amortization
|
|
|
10,521
|
|
|
|
10,839
|
|
|
|
33,660
|
|
|
|
33,193
|
Loss (gain) on foreign
currency
|
|
|
455
|
|
|
|
872
|
|
|
|
(46)
|
|
|
|
1,417
|
Other expense
(income)
|
|
|
77
|
|
|
|
333
|
|
|
|
3,773
|
|
|
|
(84)
|
Stock-based
compensation
|
|
|
2,953
|
|
|
|
1,632
|
|
|
|
9,245
|
|
|
|
5,283
|
Other
|
|
|
-
|
|
|
|
309
|
|
|
|
10
|
|
|
|
450
|
Adjusted
EBITDA
|
|
$
|
33,950
|
|
|
$
|
18,588
|
|
|
$
|
67,359
|
|
|
$
|
(8,825)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA Lindblad
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
September 30,
|
|
|
For the nine months
ended
September 30,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Operating income
(loss)
|
|
$
|
7,501
|
|
|
$
|
(7,142)
|
|
|
$
|
8,576
|
|
|
$
|
(60,380)
|
Depreciation and
amortization
|
|
|
9,665
|
|
|
|
10,090
|
|
|
|
31,155
|
|
|
|
31,087
|
Stock-based
compensation
|
|
|
2,953
|
|
|
|
1,632
|
|
|
|
9,146
|
|
|
|
5,283
|
Other
|
|
|
-
|
|
|
|
309
|
|
|
|
10
|
|
|
|
450
|
Adjusted
EBITDA
|
|
$
|
20,119
|
|
|
$
|
4,889
|
|
|
$
|
48,887
|
|
|
$
|
(23,560)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Experiences
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
September 30,
|
|
|
For the nine months
ended
September 30,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Operating
income
|
|
$
|
12,975
|
|
|
$
|
12,950
|
|
|
$
|
15,868
|
|
|
$
|
12,629
|
Depreciation and
amortization
|
|
|
856
|
|
|
|
749
|
|
|
|
2,505
|
|
|
|
2,106
|
Stock-based
compensation
|
|
|
-
|
|
|
|
-
|
|
|
|
99
|
|
|
|
-
|
Adjusted
EBITDA
|
|
$
|
13,831
|
|
|
$
|
13,699
|
|
|
$
|
18,472
|
|
|
$
|
14,735
|
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,
|
|
|
2023
|
|
|
2022
|
Net cash provided by
operating activities
|
|
$
|
35,313
|
|
|
$
|
769
|
Less: purchases of
property and equipment
|
|
|
(22,723)
|
|
|
|
(29,566)
|
Free Cash
Flow
|
|
$
|
12,590
|
|
|
$
|
(28,797)
|
|
|
For the three months
ended
September 30,
|
|
|
For the nine months
ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Available Guest
Nights
|
|
|
85,959
|
|
|
|
70,995
|
|
|
|
243,329
|
|
|
|
174,954
|
|
Guest Nights
Sold
|
|
|
69,903
|
|
|
|
57,229
|
|
|
|
192,052
|
|
|
|
130,826
|
|
Occupancy
|
|
|
81
|
%
|
|
|
81
|
%
|
|
|
79
|
%
|
|
|
75
|
%
|
Maximum
Guests
|
|
|
10,613
|
|
|
|
8,826
|
|
|
|
29,113
|
|
|
|
21,785
|
|
Number of
Guests
|
|
|
8,910
|
|
|
|
7,225
|
|
|
|
23,648
|
|
|
|
16,656
|
|
Voyages
|
|
|
129
|
|
|
|
114
|
|
|
|
359
|
|
|
|
302
|
|
|
|
Calculation of Gross
and Net Yield per Available Guest Night
|
|
For the three months
ended
September 30,
|
|
|
For the nine months
ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Guest ticket
revenues
|
|
$
|
94,751
|
|
|
$
|
73,700
|
|
|
$
|
273,653
|
|
|
$
|
174,762
|
|
Other tour
revenue
|
|
|
13,999
|
|
|
|
10,041
|
|
|
|
38,007
|
|
|
|
23,301
|
|
Tour
Revenues
|
|
|
108,750
|
|
|
|
83,741
|
|
|
|
311,660
|
|
|
|
198,063
|
|
Less:
Commissions
|
|
|
(6,732)
|
|
|
|
(5,728)
|
|
|
|
(19,996)
|
|
|
|
(14,381)
|
|
Less: Other tour
expenses
|
|
|
(6,569)
|
|
|
|
(6,030)
|
|
|
|
(19,296)
|
|
|
|
(21,025)
|
|
Net
Yield
|
|
$
|
95,449
|
|
|
$
|
71,983
|
|
|
$
|
272,368
|
|
|
$
|
162,657
|
|
Available Guest
Nights
|
|
|
85,959
|
|
|
|
70,995
|
|
|
|
243,329
|
|
|
|
174,954
|
|
Gross Yield per
Available Guest Night
|
|
$
|
1,265
|
|
|
$
|
1,180
|
|
|
$
|
1,281
|
|
|
$
|
1,132
|
|
Net Yield per Available
Guest Night
|
|
|
1,110
|
|
|
|
1,014
|
|
|
|
1,119
|
|
|
|
930
|
LINDBLAD EXPEDITIONS
HOLDINGS, INC. AND SUBSIDIARIES
Supplemental Financial Schedules (In thousands, except for
Available Guest Nights,
Gross and Net Cruise cost Per Available Guest Night and guest
metrics)
(unaudited)
|
|
Calculation of Gross
Cruise Cost and Net Cruise Cost
Lindblad
Segment
|
|
For the three
months
ended September 30,
|
|
|
For the nine months
ended
September 30,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Cost of
tours
|
|
$
|
55,021
|
|
|
$
|
51,296
|
|
|
$
|
167,392
|
|
|
$
|
145,251
|
Plus: Selling and
marketing
|
|
|
15,441
|
|
|
|
12,626
|
|
|
|
44,163
|
|
|
|
33,618
|
Plus: General and
administrative
|
|
|
21,122
|
|
|
|
16,871
|
|
|
|
60,374
|
|
|
|
48,487
|
Gross Cruise
Cost
|
|
|
91,584
|
|
|
|
80,793
|
|
|
|
271,929
|
|
|
|
227,356
|
Less:
Commissions
|
|
|
(6,732)
|
|
|
|
(5,728)
|
|
|
|
(19,996)
|
|
|
|
(14,381)
|
Less: Other tour
expenses
|
|
|
(6,569)
|
|
|
|
(6,030)
|
|
|
|
(19,296)
|
|
|
|
(21,025)
|
Net Cruise
Cost
|
|
|
78,283
|
|
|
|
69,035
|
|
|
|
232,637
|
|
|
|
191,950
|
Less: Fuel
Expense
|
|
|
(5,434)
|
|
|
|
(8,933)
|
|
|
|
(19,939)
|
|
|
|
(21,419)
|
Net Cruise Cost
Excluding Fuel
|
|
|
72,849
|
|
|
|
60,102
|
|
|
|
212,698
|
|
|
|
170,531
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
(2,953)
|
|
|
|
(1,632)
|
|
|
|
(9,146)
|
|
|
|
(5,283)
|
Other
|
|
|
-
|
|
|
|
(309)
|
|
|
|
(10)
|
|
|
|
(450)
|
Adjusted Net Cruise
Cost Excluding Fuel
|
|
$
|
69,896
|
|
|
$
|
58,161
|
|
|
$
|
203,542
|
|
|
$
|
164,798
|
Adjusted Net Cruise
Cost
|
|
$
|
75,330
|
|
|
$
|
67,094
|
|
|
$
|
223,481
|
|
|
$
|
186,217
|
Available Guest
Nights
|
|
|
85,959
|
|
|
|
70,995
|
|
|
|
243,329
|
|
|
|
174,954
|
Gross Cruise Cost per
Available Guest Night
|
|
$
|
1,065
|
|
|
$
|
1,138
|
|
|
$
|
1,118
|
|
|
$
|
1,300
|
Net Cruise Cost per
Available Guest Night
|
|
|
911
|
|
|
|
972
|
|
|
|
956
|
|
|
|
1,097
|
Net Cruise Cost
Excluding Fuel per Available Guest Night
|
|
|
847
|
|
|
|
847
|
|
|
|
874
|
|
|
|
975
|
Adjusted Net Cruise
Cost Excluding Fuel per Available Guest Night
|
|
|
813
|
|
|
|
819
|
|
|
|
836
|
|
|
|
942
|
Adjusted Net Cruise
Cost per Available Guest Night
|
|
|
876
|
|
|
|
945
|
|
|
|
918
|
|
|
|
1,064
|
Reconciliation of
2023 Adjusted EBITDA guidance:
|
|
(In
millions)
|
|
Full Year
2023
|
Income before income
taxes
|
|
$
|
(39)
|
|
|
|
to
|
|
|
$
|
(29)
|
Depreciation and
amortization
|
|
|
45
|
|
|
|
to
|
|
|
|
45
|
Interest expense,
net
|
|
|
49
|
|
|
|
to
|
|
|
|
49
|
Stock-based
compensation
|
|
|
11
|
|
|
|
to
|
|
|
|
11
|
Other
|
|
|
4
|
|
|
|
to
|
|
|
|
4
|
Adjusted
EBITDA
|
|
$
|
70
|
|
|
|
to
|
|
|
$
|
80
|
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, executive severance costs, the
National Geographic fee amortization, debt refinancing
costs, acquisition-related expenses and other non-recurring
charges. 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
acquisition-related expenses.
Available Guest Nights is a measurement of
capacity available for sale 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 per Available Guest
Night represents tour revenues divided by Available
Guest Nights.
Guest Nights Sold represents the number of guests
carried for the period multiplied by the number of nights sailed
within the period.
Maximum Guests is a measure of capacity and
represents the maximum number of guests in a period and is based on
double occupancy per cabin (except single occupancy for a single
capacity cabin).
Net Cruise Cost represents Gross Cruise Cost
excluding commissions and certain other direct costs of guest
ticket revenues and other tour revenues.
Net Cruise Cost Excluding Fuel represents Net
Cruise Cost excluding fuel costs.
Net Yield represents tour revenues less
commissions and direct costs of other tour revenues.
Net Yield per Available Guest Night represents Net
Yield 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.
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SOURCE Lindblad Expeditions