Lindblad Expeditions Holdings, Inc. Reports 2015 Fourth Quarter and Full Year Financial Results

Mar 11, 2016, 07:30 ET from Lindblad Expeditions Holdings, Inc.

NEW YORK, March 11, 2016 /PRNewswire/ -- Lindblad Expeditions Holdings, Inc. (NASDAQ: LIND; "Lindblad", the "Company"), a global provider of expedition cruises and adventure travel experiences, today reported results for the fourth quarter and year ended December 31, 2015. 

Lindblad's Financial Highlights for the Fourth Quarter and Full Year of 2015

  • Lindblad generated tour revenues of $46.5 million in the fourth quarter of 2015, an increase of $1.7 million or 3.8% as compared with the prior year quarter
  • Tour revenues for the full year 2015 amounted to $210.0 million, an increase of $11.5 million or 5.8% as compared with the full year 2014
  • Net Yield for the fourth quarter of 2015 was $989 as compared with $901 in the prior year quarter, an increase of 9.8%.  Net Yield was $971 for the full year 2015, as compared with $950 for the full year 2014
  • Adjusted EBITDA for the fourth quarter of 2015 was $4.7 million as compared with $5.8 million in the prior year quarter. Adjusted EBITDA was $46.8 million for the full year 2015, as compared with $44.6 million for the full year 2014

Review of Lindblad's Fourth Quarter 2015 Results

"The Company continued to post solid results in the fourth quarter from a strong performance by the entire fleet. We were pleased to see Net Yield grow about 10% for the quarter, which was driven by strong inventory management and focused tactical marketing," said Sven-Olof Lindblad, President and Chief Executive Officer of Lindblad.  "Adjusted EBITDA was down slightly in the quarter, which was primarily caused by the timing of vessel drydocking and the related reduction in revenue and increase in expense."    

Tour revenues in the fourth quarter amounted to $46.5 million, as compared with $44.8 million in the fourth quarter of 2014, which represents an increase of $1.7 million or 3.8%. The growth was primarily driven by $3.0 million higher guest ticket revenues derived from price increases and changes in vessel deployments.  This increase was partially offset by a decline in other revenues.  Tour revenues for full year 2015 increased 5.8% as compared with the prior year, to $210.0 million from $198.5 million for the full year 2014.

Net Yield in the quarter amounted to $989 as compared with $901 in the fourth quarter of 2014, which represents an increase of 9.8%, related primarily to the increase in pricing and changes in vessel deployments in the quarter.  Lindblad recorded 37,296 Guest Nights Sold and an occupancy rate of 93.3% in the fourth quarter of 2015.  Net Yield for the full year 2015 amounted to $971 as compared with $950 for the full year 2014.

Adjusted Net Cruise Cost per Available Guest Night amounted to $870 in the fourth quarter of 2015, as compared with $763 in the same period in the prior year, which represents an increase of 14.0%. The increase was primarily driven by an increase in cost of tours due to an additional voyage and drydock costs due to timing, partially offset by a reduction in the cost of fuel. Adjusted Net Cruise Cost per Available Guest Night amounted to $717 for the full year 2015 as compared with $702 for the full year 2014, an increase of 2.1%.

Adjusted EBITDA was $4.7 million in the fourth quarter of 2015 as compared with $5.8 million in the same period in 2014, a decrease of $1.1 million.  This decrease is primarily due to the timing of vessel drydocking expenses, where one additional vessel was in drydock in the 2015 fourth quarter as compared with the same quarter in 2014.  Adjusted EBITDA increased 4.9% for the full year 2015 to $46.8 million as compared with $44.6 million for the full year 2014.  Net income was $19.7 million for the full year 2015 as compared with $22.2 million for the year 2014.

Lindblad uses a variety of operational and financial metrics, including non-GAAP financial measures, to evaluate its performance and financial condition. The accompanying financial data includes additional information regarding these metrics and a reconciliation of non-GAAP financial information to GAAP.

Full Year 2016

The Company continues to expect that it will achieve the 2016 financial projections set forth in the investor presentation furnished with a Form 8-K filed with the Securities and Exchange Commission ("SEC") on April 1, 2015, which projected revenue of $217 million and Adjusted EBITDA of $51 million for the full year of 2016.

John T. McClain, the Company's Chief Financial Officer also added: "We continue to see a strong booking pace for 2016 with 85% of guest ticket revenues for the 2016 financial year on the books as of March 7, 2016, compared with 89% at the same time in 2015 for the 2015 financial year."

Fleet Activities

During the fourth quarter of 2015, the Company signed definitive agreements for the newbuild of two U.S. flagged coastal vessels.  The first completed ship is expected to be delivered in the second quarter of 2017 and the second vessel is expected to be delivered in the second quarter of 2018.  "These new ships mark an exciting step in the long-term growth of the Company, and enable us to capitalize on the substantial demand for our expeditions.  With our significant resources we can continue to deliver on our promise of expedition travel at its best, and can expand our unique offerings in the Americas where we have very strong demand," said Sven-Olof Lindblad.     

During the fourth quarter of 2015, the Company also signed a definitive agreement for the purchase of the Via Australis to be used in the Company's operations in the Galápagos Islands.  The Company expects to take possession of the ship in the second quarter of 2016 and following a significant renovation expects to deploy the ship during the fourth quarter of 2016.  The Via Australis will replace the National Geographic Endeavour.

Amended and Restated Credit Facility

On March 7, 2016, the Company amended its senior secured credit facility with Credit Suisse as administrative agent and collateral agent (the "Credit Facility") to add on a new $45.0 million senior secured incremental revolving credit facility, including a $5.0 million letter of credit subfacility (the "Revolving Credit Facility").   Borrowings under the Revolving Credit Facility will bear an interest rate of LIBOR plus a spread of 4.00%, or, at the option of the Company, an alternative base rate plus a spread of 3.00%, and matures on May 8, 2020.   The Company is also required to pay a 0.5% annual commitment fee on undrawn amounts under the Revolving Credit Facility.  The financial and operational covenants, interest rates and maturity for term loan borrowings under the Credit Facility remain unchanged.  Borrowings under the Revolving Credit Facility will be used for general corporate and working capital purposes and related fees and expenses.  The amendment also expanded the lender base, adding Citibank, N.A. as syndication agent and SunTrust Bank as documentation agent.

Stock and Warrant Repurchase Plan Update

In the fourth quarter of 2015, the Company repurchased 2.09 million of our warrants for $5.5 million, representing an average price of $2.62 per warrant.  In the first quarter of 2016, the Company repurchased 1.97 million warrants for $5.4 million, representing an average price of $2.76 per warrant.  Total program to date, the Company repurchased 4.06 million of our warrants for $10.9 million, representing an average price of $2.69 per warrant.  The Company currently has $9.1 million available under its $20 million repurchase authorization.    

Conference Call Scheduled

The Company has scheduled a conference call at 10:00 a.m. Eastern Time on March 11, 2016 to discuss the earnings of Lindblad.  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 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.

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 our 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 we are engaged; (ii) management of our growth and our ability to execute on our planned growth; (iii) general economic conditions; (iv) our business strategy and plans; (v) compliance with applicable laws and regulations; (vi) compliance with the financial and/or operating covenants in our amended credit agreement; (vii) adverse publicity regarding the cruise industry in general; (viii) loss of business due to competition; (ix) the result of future financing efforts; (x) the inability to meet revenue and Adjusted EBITDA projections; and (xi) those risks described in our 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 our performance may be found in our filings with the SEC, which are available at http://www.sec.gov or at http://www.expeditions.com in the Investor Relations section of the Company's website.

 

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

 Consolidated Balance Sheets

(In thousands, except share data)

As of  December 31,

2015

2014

ASSETS

Current Assets:

   Cash and cash equivalents

$        206,903

$          39,679

   Restricted cash and marketable securities

8,460

8,335

   Inventories

1,746

1,700

   Marine operating supplies

4,969

5,078

   Prepaid expenses and other current assets

12,266

11,321

      Total current assets

234,344

66,113

Property and equipment, net

125,471

121,873

Due from shareholder

-

1,501

Other long-term assets

12,355

2,019

Operating rights

6,227

6,529

Deferred tax assets

3,216

102

Investment in CFMF

-

47,788

      Total assets

$        381,613

$        245,925

LIABILITIES 

Current Liabilities:

   Unearned passenger revenues

$          76,604

$          73,195

   Accounts payable and accrued expenses

25,968

20,028

   Long-term debt - current

1,750

4,934

   Obligation to repurchase shares of common stock

-

4,966

   Due to CFMF

-

22,733

      Total current liabilities

104,322

125,856

Long-term debt, less current portion

162,693

51,756

Other long-term liabilities

677

447

Deferred income taxes - long-term

-

299

      Total liabilities

267,692

178,358

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY

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

     0 shares issued and outstanding

-

-

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

     45,224,881 and 44,717,759 issued and outstanding as of      December 31, 2015 and 2014, respectively

5

5

   Additional paid-in capital

48,073

21,461

   Retained earnings

65,843

46,101

      Total shareholders' equity

113,921

67,567

      Total liabilities and shareholders' equity

$        381,613

$        245,925

 

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(In thousands, except shares, per share data)

For the Three Months Ended December 31,

For the Years Ended December 31,

2015

2014

2015

2014

Tour revenues

$         46,472

$         44,753

$       209,985

$       198,459

Cost of tours

24,086

21,330

95,417

90,002

Gross profit

22,386

23,423

114,568

108,457

Operating expenses:

   General and administrative

11,477

13,259

39,097

36,053

   Selling and marketing

8,163

7,094

34,980

30,718

   Merger-related expenses

78

-

13,344

-

   Depreciation and amortization

3,309

2,580

11,645

11,266

      Total operating expenses

23,027

22,933

99,066

78,037

Operating (loss) income

(641)

490

15,502

30,420

Other (expense) income:

   Change in fair value of obligation to

   repurchase shares of common stock

-

3,046

-

10

   Gain (loss) on foreign currency

7

(648)

(40)

(149)

   Gain on transfer of assets

-

-

7,502

-

   Other income, net

30

57

5,030

57

   Interest expense, net

(2,875)

(1,315)

(10,901)

(5,293)

      Total other (expense) income

(2,838)

1,140

1,591

(5,375)

(Loss) income before income taxes

(3,479)

1,630

17,093

25,045

Income tax (benefit) expense

(3,037)

224

(2,649)

2,800

Net (loss) income

$            (442)

$           1,406

$         19,742

$         22,245

Common stock

   Net (loss) income available to common       stockholders

$            (442)

$           1,252

$         19,742

$         19,551

   Weighted average shares outstanding

      Basic

45,224,881

44,717,759

44,917,829

44,717,759

      Diluted

45,917,343

44,717,759

45,575,387

44,717,759

   (Loss) earnings per share

      Basic

$           (0.01)

$             0.03

$             0.44

$             0.44

      Diluted

$           (0.01)

$             0.03

$             0.43

$             0.44

Class B common stock

   Net income available to common stockholders

$                -

$              154

$                -

$           2,694

   Weighted average shares outstanding

      Basic

-

5,485,929

-

6,161,135

      Diluted

-

5,485,929

-

6,161,135

   Earnings per share

      Basic

$                -

$             0.03

$                -

$             0.44

      Diluted

$                -

$             0.03

$                -

$             0.44

 

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands)

For the Years Ended December 31,

2015

2014

Cash Flows From Operating Activities

Net income 

$         19,742

$          22,245

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

Depreciation and amortization

11,645

11,266

Amortization of National Geographic fee

1,397

-

Amortization of debt discount and deferred financing costs

3,576

744

Stock-based compensation

4,913

274

Deferred income taxes

(3,413)

289

Loss on currency translation

40

149

Gain on transfer of assets

(7,502)

-

Changes in operating assets and liabilities 

Inventories and marine operating supplies

(163)

(831)

Prepaid expenses and other current assets

(1,100)

(2,420)

Unearned passenger revenues

3,723

8,750

Other long-term liabilities

230

184

Accounts payable and accrued expenses 

7,214

2,404

Net cash provided by operating activities

40,302

43,054

Cash Flows From Investing Activities

Purchase of investment in CFMF

(68,087)

(25,055)

Purchase of property and equipment

(14,800)

(5,922)

Advance from (to) shareholder

1,501

517

(Redemption) purchase of restricted cash and marketable securities

(125)

1,458

Net cash used in investing activities

(81,511)

(29,002)

Cash Flows From Financing Activities

Proceeds from long-term debt

175,000

-

Net proceeds from merger

186,806

-

Payments to shareholders for the merger

(90,000)

-

Deferred financing costs

(11,045)

-

Repayments of long-term debt

(41,879)

(3,989)

Proceeds used in exchange of option shares

(4,880)

-

Repurchase of warrants

(5,478)

-

Repurchase of stock from common shareholders

-

(1,876)

Repurchase of stock from Class B shareholders

-

(10,525)

Repayment of due to stockholder

-

(1,000)

Net cash provided by (used in) financing activities

208,524

(17,390)

Effect of exchange rate changes on cash

(91)

(1,337)

Net increase (decrease) in cash and cash equivalents

167,224

(4,675)

Cash and cash equivalents as of beginning of period

39,679

44,354

Cash and cash equivalents as of end of period

$       206,903

$          39,679

Supplemental disclosures of cash flow information:

Cash paid during the period for:

Interest

$           7,003

$            4,844

Income taxes

$              379

$            1,102

Non-cash investing and financing activities:

Investment to CFMF

$                   -

$          22,733

Due to CFMF

-

(22,733)

Investment in CFMF liquidation of Junior debt asset, warrant

84,903

-

CFMF liquidation of Junior debt long-term debt, additional paid-in capital

(84,903)

-

Transfer from inventories and marine operating supplies

(414)

-

Transfer to property and equipment, net

414

-

Additional paid-in capital exercise proceeds of option shares

2,240

-

Additional paid-in capital exchange proceeds used for option shares

(2,240)

-

 

Lindblad uses a variety of operational and financial metrics, which are defined below, to evaluate its performance and financial condition. Lindblad uses certain non-GAAP financial measures, such as EBITDA, Adjusted EBITDA, Net Yields and Net Cruise Costs, to enable it to analyze its performance and financial condition. Lindblad 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 industry to measure performance. Lindblad believes these non-GAAP measures provide expanded insight to measure 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.

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Non-GAAP Information

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

Three Months Ended

For the Years Ended

December 31,

December 31,

(In thousands)

2015

2014

2015

2014

Net (loss) income

$          (442)

$         1,406

$       19,742

$       22,245

Income tax (benefit) expense

(3,037)

224

(2,649)

2,800

Interest expense, net

2,875

1,315

10,901

5,293

Depreciation and amortization

3,309

2,580

11,645

11,266

EBITDA

2,705

5,525

39,639

41,604

Change in fair value of obligation to

repurchase shares of common stock

-

(3,046)

-

(10)

(Gain) loss on foreign currency translation

(7)

648

40

149

Gain on transfer of assets

-

-

(7,502)

-

Other income

(30)

(57)

(5,030)

(57)

Stock-based compensation

1,271

274

4,913

274

National Geographic fee amortization -non-cash

727

-

1,397

-

Merger-related expenses

78

-

13,344

-

Acquisition-related expenses

-

-

-

112

Retention expenses

-

2,500

-

2,500

Adjusted EBITDA

$       4,744

$       5,844

$     46,801

$     44,572

 

 

Guest Metrics

Three Months Ended December 31,

For the Years Ended December 31,

2015

2014

2015

2014

Available Guest Nights

39,967

42,379

184,366

180,206

Guest Nights Sold

37,296

37,317

169,303

167,483

Occupancy

93.3%

88.1%

91.8%

92.9%

Maximum Guests

4,458

4,533

21,459

20,216

Number of Guests

4,201

3,968

19,824

18,819

Voyages

55

54

281

262

 

 

Calculation of Gross Yield and Net Yield

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

Three Months Ended December 31,

For the Years Ended December 31,

2015

2014

2015

2014

Guest ticket revenues

$       41,424

$       38,367

$     183,805

$     173,536

Other revenues

5,048

6,386

26,180

24,923

Tour Revenues

46,472

44,753

209,985

198,459

Less: Commissions 

(3,132)

(2,799)

(14,460)

(12,941)

Less: Other expense

(3,814)

(3,789)

(16,496)

(14,403)

Net Revenue

$     39,526

$     38,165

$   179,029

$   171,115

Available Guest Nights

39,967

42,379

184,366

180,206

Gross Yield 

$        1,163

$        1,056

$        1,139

$        1,101

Net Yield 

989

901

971

950

 

 

Calculation of Net Cruise Cost Metrics

Three Months Ended December 31,

For the Years Ended December 31,

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

2015

2014

2015

2014

Cost of tours

$      24,086

$      21,330

$      95,417

$      90,002

Plus: Merger-related expenses

78

-

13,344

-

Plus: Selling and marketing

8,163

7,094

34,980

30,718

Plus: General and administrative

11,477

13,258

39,097

36,053

Gross Cruise Cost

43,804

41,682

182,838

156,773

Less: Commission expense

(3,132)

(2,799)

(14,460)

(12,941)

Less: Other expenses

(3,814)

(3,789)

(16,496)

(14,403)

Net Cruise Cost

36,858

35,094

151,882

129,429

Less: Fuel expense

(2,173)

(2,579)

(9,004)

(11,671)

Net Cruise Cost Excluding Fuel

34,685

32,515

142,878

117,758

Non-GAAP Adjustments: 

Stock-based compensation

(1,271)

(274)

(4,913)

(274)

National Geographic fee amortization

(727)

-

(1,397)

-

Merger-related expenses

(78)

-

(13,344)

-

Acquisition-related expenses

-

-

-

(112)

Retention expense

-

(2,500)

-

(2,500)

Adjusted Net Cruise Cost Excluding Fuel

$      32,609

$      29,741

$    123,224

$    114,872

Available Guest Nights

39,967

42,379

184,366

180,206

Gross Cruise Cost per Available Guest Night

$        1,096

$           984

$           992

$           870

Net Cruise Cost per Available Guest Night

922

828

824

718

Net Cruise Cost Excluding Fuel per Available Guest Night

868

767

775

653

Adjusted Net Cruise Cost per Available Guest Night

870

763

717

702

Adjusted Net Cruise Cost Excluding Fuel per Available Guest Night

816

702

668

637

 

 

Key Operational and Financial Metrics

EBITDA is net income (loss) excluding depreciation and amortization, net interest expense and income tax benefit (expense).

Adjusted EBITDA is net income (loss) excluding depreciation and amortization, net interest expense, other income (expense), and income tax benefit (expense), and other supplemental adjustments. The Company believes Adjusted EBITDA can provide a more complete understanding of the underlying operating results and trends and an enhanced overall understanding of the Company's financial performance and prospects for the future. While Adjusted EBITDA is not a recognized measure under GAAP, management uses this financial measure to evaluate and forecast business performance. Adjusted EBITDA is not intended to be a measure of liquidity or cash flows from operations or a measure comparable to net income. The Company's use of Adjusted EBITDA may not be comparable to other companies within the industry.

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

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

Gross Yield 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 revenues.

Net Cruise Cost Excluding Fuel represents Net Cruise Cost excluding fuel costs.

Net Revenue represents tour revenues less commissions and direct costs of other revenues.

Net Yield represents Net Revenue divided by Available Guest Nights.

Number of Guests represents the number of guests that travel with the Company in a period.

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

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

 

SOURCE Lindblad Expeditions Holdings, Inc.



RELATED LINKS

http://www.expeditions.com