Lindblad Expeditions Holdings, Inc. Reports 2022 Second Quarter Financial Results

Lindblad Expeditions Holdings Inc. NASDAQ:LIND

 

PR Newswire


Second Quarter 2022 Highlights:

  • Operated all ten owned and operated ships providing expeditions across

    Alaska

    , the Arctic, the Galápagos Islands,

    Greenland

    ,

    Iceland

    ,

    Norway

    and the Baltic and North Seas
  • Total revenue of

    $90.9 million

    increased

    $75.6 million

    versus 2021 and

    $14.3 million

    , or 19%, compared with the second quarter of 2019
  • Strong reservations for future travel with bookings for 2023 26% ahead of bookings for 2020 at the same point in 2019
  • Further increased financial flexibility through extension of leverage covenant waivers on export credit agreements through the end of 2022



NEW YORK


,


Aug. 1, 2022


/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 second quarter ended

June 30

, 2022.


Dolf Berle

, Chief Executive Officer, said “We are very excited to have all ten of our owned ships once again immersing guests in the amazing geographies Lindblad has been visiting for decades. The nature of our ships and the remote locations we explore has enabled us to ramp our operations quickly, and the response from our guests as they return to experiencing the thrill of exploration has never been more rewarding. At the same time, our land businesses have also swiftly returned to operations and the strategic investments we have made to expand our product offerings is already resulting in positive earnings contributions from these businesses. The demand for unique and authentic travel experiences remains strong, and we certainly expect it to grow even further as we continue to emerge from the pandemic. While some short-term headwinds remain, we are poised to begin delivering on the increased earnings power of the Company and deliver additional shareholder value in the months and years ahead.”


RAMP OF FLEET OPERATIONS AND COVID-19 BUSINESS UPDATE


Ramp in Operations

Lindblad continued to ramp its operations during the second quarter of 2022, providing immersive expeditions across all ten of its owned vessels including trips to

Alaska

, the Arctic, the Galápagos Islands,

Greenland

,

Iceland

,

Norway

and the Baltic and North Seas. Due to the spread of the COVID-19 virus and the effects of travel restrictions around the world, the Company suspended or rescheduled the majority of its expeditions departing between

March 16, 2020

through

May 31, 2021

. Travel restrictions related to COVID-19 have diminished dramatically, and the Company continues to work with local authorities on plans to operate itineraries in additional geographies during 2022 and 2023. Where travel restrictions remain, which now also includes a limited number of itineraries impacted by the

Russia



Ukraine

conflict, the Company is working with guests to reschedule travel plans and refund payments or issue future travel certificates, as appropriate.

The Company believes there are a variety of strategic advantages that enable it to deploy its ships safely and quickly, while mitigating the risk of COVID-19 as travel restrictions are lifted. The most notable is the size of its owned and operated vessels which range from 48 to 148 passengers, allowing for a highly controlled environment that includes stringent cleaning protocols. The small nature of the Company’s ships also allows it to efficiently and effectively test its guests and crew prior to boarding, or as otherwise needed. Additionally, all guests are required to be fully vaccinated, and the majority of expeditions take place in remote locations where human interactions are limited, so there is less opportunity for external influence.


Booking Trends

The Company has substantial advance reservations for future travel despite some continued short-term impact from the COVID-19 virus, including elevated cancellations and softness in near-term demand, as well as itinerary changes on a few upcoming voyages due to the

Russia



Ukraine

conflict. Bookings for 2023 are 26% ahead of the bookings for the full year 2020 at the same point in 2019, which was prior to the pandemic.


Balance Sheet and Liquidity

As of

June 30, 2022

, the Company had

$126.9 million

in unrestricted cash and

$48.8 million

in restricted cash, primarily related to deposits on future travel originating from U.S. ports and credit card reserves.

As of

June 30, 2022

, the Company had a total debt position of

$578.2 million

and was in compliance with all of its applicable debt covenants. During

May 2022

, the Company further amended its export credit agreements to extend the waiver of its net leverage coverage ratio from

March 2022

through

December 31

, 2022.

During

February 2022

, the Company issued

$360.0 million

of 6.75% senior secured notes, maturing 2027 and entered into a new

$45.0 million

revolving credit facility, including a letter of credit sub-facility in an aggregate principal amount of up to

$5.0 million

. Proceeds from the senior secured notes were used primarily to pay the outstanding borrowings under the Company’s previously existing credit agreement, including the term facility, Main Street Loan and revolving credit facility. 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 the Company continues to ramp up operations, its monthly cash usage will increase as the Company incurs costs in operating expeditions, prepares additional ships for return to service and spends to advertise upcoming expeditions and trips. The Company also anticipates a significant increase in guest payments as it receives final payments for upcoming expeditions and trips as well as deposits for new reservations for future travel. However, there can be no assurance that cash flows from operations will be available to fund future obligations or that it will not experience delays or cancellations with respect to the resumption of our operations.


SECOND


QUARTER RESULTS


Tour Revenues

Second quarter tour revenues of

$90.9 million

increased

$75.6 million

as compared to the same period in 2021. The increase was driven by a

$57.3 million

increase at the Lindblad segment and a

$18.3 million

increase at the Land Experiences segment, primarily due to the ramp in expeditions and trips compared with the second quarter a year ago. The Land Experiences segment also includes a full quarter of results for Classic Journeys, LLC (“Classic Journeys”) which was acquired during the fourth quarter of 2021.


Net Income

Net loss available to stockholders for the second quarter was

$30.0 million

,

$0.59

per diluted share, as compared with net loss available to stockholders of

$36.6 million

,

$0.71

per diluted share, in the second quarter of 2021. The

$6.6 million

improvement primarily reflects the ramp in operations, partially offset by a

$3.7 million

increase in interest expense due to additional borrowings and higher rates, a

$3.0 million

increase in depreciation and amortization, primarily due to the addition of the

National Geographic Resolution

to the fleet in

September 2021

, and

$1

.4 million lower income tax benefit due to the improved operating results.


Adjusted EBITDA

Second quarter Adjusted EBITDA loss of

$6

.2 million improved $16.8 million as compared to the same period in 2021. The increase was driven by a

$14.4 million

improvement at the Lindblad segment and a

$2.4 million

increase at the Land Experiences segment.

Lindblad segment Adjusted EBITDA loss of

$7.5 million

improved $14.4 million as compared to the same period in 2021, as increased tour revenues were partially offset by higher cost of tours and increased personnel costs from the ramp in operations, higher commissions related to the revenue and bookings growth and increased marketing spend to drive future growth.

Land Experiences segment Adjusted EBITDA of

$1.3 million

increased $2.4 million as compared to 2021, primarily due to additional trips, partially offset by higher cost of tours and increased personnel costs related to the ramp in operations and increased marketing costs to drive future bookings. The Land Experiences segment also includes a full quarter of results for Classic Journeys which was acquired during the fourth quarter of 2021.



For the three months ended



June 30,



For the six months ended



June 30,


(In thousands)



2022



2021



Change


%



2022



2021



Change


%



Tour revenues:


Lindblad


$


64,047


$


6,680


$


57,367


NM


$


114,321


$


7,164


$


107,157


NM


Land Experiences


26,863


8,586


18,277


NM


44,435


9,883


34,552


NM


Total tour revenues


$


90,910


$


15,266


$


75,644


NM


$


158,756


$


17,047


$


141,709


NM



Operating (loss) income:


Lindblad


$


(19,670)


$


(31,038)


$


11,368


NM


$


(53,239)


$


(58,335)


$


5,096


9 %


Land Experiences


356


(1,550)


1,906


NM


(321)


(5,317)


4,996


94 %


Total operating loss


$


(19,314)


$


(32,588)


$


13,274


NM


$


(53,560)


$


(63,652)


$


10,092


16 %



Adjusted EBITDA:


Lindblad


$


(7,463)


$


(21,832)


$


14,369


NM


$


(28,448)


$


(39,785)


$


11,337


28 %


Land Experiences


1,271


(1,121)


2,392


NM


1,035


(3,985)


5,020


NM


Total adjusted EBITDA


$


(6,192)


$


(22,953)


$


16,761


NM


$


(27,413)


$


(43,770)


$


16,357


37 %


LINDBLAD FLEET ACTIVITIES

In

November 2021

, the Company acquired a ship which is currently undergoing renovations and will replace the

National Geographic Islander

in the Galápagos Islands during the third quarter of 2022. The renovated ship has been named the

National Geographic Islander II

and will provide immersive and authentic expeditions to 48 guests who will enjoy all suite accommodations, indoor-outdoor dining options and diverse expedition tools and amenities.


STOCK REPURCHASE PLAN

The Company currently has a

$35.0 million

stock repurchase plan in place. As of

July 25, 2022

, 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

July 25, 2022

, there were 53.1 million shares common stock outstanding. The Company has suspended all stock repurchases due to restrictions related to the Main Street Expanded Loan Facility program.


FINANCIAL OUTLOOK

The COVID-19 pandemic has had, and will continue to have, a significant impact on the Company’s financial position and results of operation. Given the continued uncertainty around the COVID-19 pandemic, the Company is not providing a full year outlook regarding results of operations at this time and will update its expectations when it has more clarity around the timing and extent of future operations.


NON-GAAP FINANCIAL MEASURES

The Company uses a variety of operational and financial metrics, including non-GAAP financial measures such as Adjusted EBITDA, Occupancy, Net Yields and Net Cruise Costs, to enable it to analyze its performance and financial condition. The Company utilizes these financial measures to manage its business on a day-to-day basis and believes that they are the most relevant measures of performance. Some of these measures are commonly used in the cruise and tourism industry to evaluate performance. The Company believes these non-GAAP measures provide expanded insight to assess revenue and cost performance, in addition to the standard GAAP-based financial measures. There are no specific rules or regulations for determining non-GAAP measures, and as such, they may not be comparable to measures used by other companies within the industry.

The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The definitions of non-GAAP financial measures along with a reconciliation of non-GAAP financial information to GAAP are included in the supplemental financial schedules.


Conference Call Information

The Company has scheduled a conference call at

8:30 a.m. Eastern Time

on August 1, 2022, to discuss the earnings of the Company. The conference call can be accessed by dialing (844) 200-6205 (

United States

), (833) 950-0062 (

Canada

) or (929) 526-1599 (outside the U.S.). The access code is 618427. 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 subsidiaries, Natural Habitat Adventures, Off the Beaten Path, DuVine and 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) suspended operations and disruptions to our business and operations related to COVID-19; (ii) the impacts of COVID-19 and/or the

Russia



Ukraine

conflict on our financial condition, liquidity, results of operations, cash flows, employees, plans and growth; (iii) the impacts of COVID-19 and/or the

Russia

/

Ukraine

conflict on future travel and the cruise and airline industries in general; (iv) unscheduled disruptions in our business due to travel restrictions, weather events, mechanical failures, pandemics or other events; (v) changes adversely affecting the business in which we are engaged; (vi) management of our growth and our ability to execute on our planned growth; (vii) our business strategy and plans; (viii) our ability to maintain our relationship with National Geographic; (ix) compliance with new and existing laws and regulations, including environmental regulations and travel advisories and restrictions; (x) compliance with the financial and/or operating covenants in our debt arrangements; (xi) adverse publicity regarding the cruise industry in general; (xii) loss of business due to competition; (xiii) the result of future financing efforts; (xiv) delays and costs overruns with respect to the construction and delivery of newly constructed vessels; (xv) the inability to meet revenue and Adjusted EBITDA projections; and (xvi) 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)



June 30,



2022



December 31,

2021


(unaudited)



ASSETS


Current Assets:


Cash and cash equivalents


$


126,904


$


150,753


Restricted cash


48,831


21,940


Marine operating supplies


9,892


8,275


Inventories


2,337


2,278


Prepaid expenses and other current assets


45,936


27,094


Total current assets


233,900


210,340


Property and equipment, net


544,746


542,418


Goodwill


42,017


42,017


Intangibles, net


12,123


13,235


Deferred tax asset


8,736


7,609


Right-to-use lease assets


3,764


4,402


Other long-term assets


4,020


7,470


Total assets


$


849,306


$


827,491



LIABILITIES


Current Liabilities:


Unearned passenger revenues


$


270,985


$


212,598


Accounts payable and accrued expenses


61,224


49,252


Lease liabilities – current


1,556


1,553


Long-term debt – current


24,081


26,061


Total current liabilities


357,846


289,464


Long-term debt, less current portion


539,872


518,658


Lease liabilities


2,517


3,178


Other long-term liabilities


302


247


Total liabilities


900,537


811,547


Commitments and contingencies






Series A redeemable convertible preferred stock, 165,000 shares authorized; 62,000 and

80,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021,

respectively


67,052


83,901


Redeemable noncontrolling interests


19,595


10,626


86,647


94,527



STOCKHOLDERS’ DEFICIT


Preferred stock, $0.0001 par value, 1,000,000 shares authorized; 62,000 and 80,000 Series A

shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively






Common stock, $0.0001 par value, 200,000,000 shares authorized; 53,064,077 and

50,800,786 issued, 53,018,837 and 50,755,546 outstanding as of June 30, 2022 and December

31, 2021, respectively


5


5


Additional paid-in capital


80,812


58,485


Accumulated deficit


(218,695)


(136,439)


Accumulated other comprehensive loss




(634)


Total stockholders’ deficit


(137,878)


(78,583)


Total liabilities, mezzanine equity and stockholders’ deficit


$


849,306


$


827,491



LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES



Condensed Consolidated Statements of Operations


(In thousands, except share and per share data)


(unaudited)



For the three months ended

June 30,



For the six months ended

June 30,



2022



2021



2022



2021


Tour revenues


$


90,910


$


15,266


$


158,756


$


17,047


Operating expenses:


Cost of tours


62,499


19,391


120,447


27,670


General and administrative


23,710


15,288


44,347


29,100


Selling and marketing


12,839


4,962


25,168


7,467


Depreciation and amortization


11,176


8,213


22,354


16,462


Total operating expenses


110,224


47,854


212,316


80,699


Operating loss


(19,314)


(32,588)


(53,560)


(63,652)


Other (expense) income:


Interest expense, net


(9,416)


(5,705)


(18,130)


(11,374)


(Loss) gain on foreign currency


(676)


199


(546)


269


Other (expense) income


(116)


2


417


4


Total other expense


(10,208)


(5,504)


(18,259)


(11,101)


Loss before income taxes


(29,522)


(38,092)


(71,819)


(74,753)


Income tax benefit


(964)


(2,357)


(1,113)


(5,158)


Net loss


(28,558)


(35,735)


(70,706)


(69,595)


Net income (loss) attributable to noncontrolling interest


198


(437)


(229)


(1,056)


Net loss attributable to Lindblad Expeditions Holdings, Inc.


(28,756)


(35,298)


(70,477)


(68,539)


Series A redeemable convertible preferred stock dividend


1,283


1,318


2,581


2,622


Net loss available to stockholders


$


(30,039)


$


(36,616)


$


(73,058)


$


(71,161)


Weighted average shares outstanding


Basic


51,195,280


50,064,152


50,976,203


49,964,693


Diluted


51,195,280


50,064,152


50,976,203


49,964,693


Undistributed loss per share available to stockholders:


Basic


$


(0.59)


$


(0.71)


$


(1.43)


$


(1.38)


Diluted


$


(0.59)


$


(0.71)


$


(1.43)


$


(1.38)



LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES



Condensed Consolidated Statements of Cash Flows


(In thousands)


(unaudited)



For the six months ended



June 30,



2022



2021



Cash Flows From Operating Activities


Net loss


$


(70,706)


$


(69,595)


Adjustments to reconcile net loss to net cash provided by (used in) operating activities:


Depreciation and amortization


22,354


16,462


Amortization of deferred financing costs and other, net


1,313


1,525


Amortization of right-to-use lease assets


(20)


2


Stock-based compensation


3,651


2,740


Deferred income taxes


(1,128)


(5,158)


Change in fair value of contingent acquisition consideration


56




Loss (gain) on foreign currency


546


(269)


Write-off of unamortized issuance costs related to debt refinancing


9,004




Changes in operating assets and liabilities


Marine operating supplies and inventories


(1,676)


(819)


Prepaid expenses and other current assets


(19,388)


(9,643)


Unearned passenger revenues


58,387


76,747


Other long-term assets


3,431


862


Other long-term liabilities


845


3,336


Accounts payable and accrued expenses


11,971


5,648


Net cash provided by operating activities


18,640


21,838



Cash Flows From Investing Activities


Purchases of property and equipment


(23,550)


(25,239)


Acquisition (net of cash acquired)




(7,177)


Net cash used in investing activities


(23,550)


(32,416)



Cash Flows From Financing Activities


Proceeds from long-term debt


360,000


15,484


Repayments of long-term debt


(340,491)


(1,014)


Payment of deferred financing costs


(10,804)


(3,135)


Repurchase under stock-based compensation plans and related tax impacts


(753)


(1,726)


Net cash provided by financing activities


7,952


9,609


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


3,042


(969)


Cash, cash equivalents and restricted cash at beginning of period


172,693


204,515


Cash, cash equivalents and restricted cash at end of period


$


175,735


$


203,546


Supplemental disclosures of cash flow information:


Cash paid during the period:


Interest


$


6,204


$


8,571


Income taxes


124


1


Non-cash investing and financing activities:


Non-cash preferred stock dividend


$


2,581


$


2,622


Value of shares issued for acquisition




1,770



LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES



Supplemental Financial Schedules


(In thousands)


(unaudited)



Reconciliation of Net Income to Adjusted EBITDA



Consolidated



For the three months ended

June 30,



For the six months ended

June 30,



2022



2021



2022



2021


Net loss


$


(28,558)


$


(35,735)


$


(70,706)


$


(69,595)


Interest expense, net


9,416


5,705


18,130


11,374


Income tax benefit


(964)


(2,357)


(1,113)


(5,158)


Depreciation and amortization


11,176


8,213


22,354


16,462


Gain on foreign currency


676


(199)


546


(269)


Other income


116


(2)


(417)


(4)


Stock-based compensation


1,823


1,129


3,651


2,740


Other


123


293


142


680



Adjusted EBITDA


$


(6,192)


$


(22,953)


$


(27,413)


$


(43,770)



Reconciliation of Operating (Loss) Income to Adjusted

EBITDA Lindblad Segment



For the three months ended

June 30,



For the six months ended

June 30,



2022



2021



2022



2021


Operating loss


$


(19,670)


$


(31,038)


$


(53,239)


$


(58,335)


Depreciation and amortization


10,257


7,823


20,998


15,690


Stock-based compensation


1,823


1,129


3,651


2,606


Other


127


254


142


254



Adjusted EBITDA


$


(7,463)


$


(21,832)


$


(28,448)


$


(39,785)



Land Experiences Segment



For the three months ended

June 30,



For the six months ended

June 30,



2022



2021



2022



2021


Operating income (loss)


$


356


$


(1,550)


$


(321)


$


(5,317)


Depreciation and amortization


919


390


1,356


772


Other


(4)






426.00



Adjusted EBITDA


$


1,271


$


(1,121)


$


1,035


$


(3,985)



LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES



Supplemental Financial Schedules


(In thousands, except for Available Guest Nights,

Gross Yield, Net Yield and guest metrics)


(unaudited)



Reconciliation


of Free Cash Flow to Net Cash Provided by Operating


Activities



For the six months ended

June 30,



2022



2021


Net cash provided by operating activities


$


18,640


$


21,838


Less: purchases of property and equipment


(23,550)


(25,239)


Free Cash Flow



$



(4,910)



$



(3,401)



For the three months ended

June 30,



For the six months ended

June 30,



2022



2021



2022



2021



Available Guest Nights


55,413


6,270


103,959


6,270



Guest Nights Sold


41,423


4,920


73,607


4,920



Occupancy


75


%


78


%


71


%


78


%



Maximum Guests


7,545


1,029


12,959


1,029



Number of Guests


5,770


818


9,423


818



Voyages


105


14


188


14



Calculation of Gross and Net Yield per Available Guest Night



For the three months ended

June 30,



For the six months ended

June 30,



2022



2021



2022



2021


Guest ticket revenues


$


55,560


$


5,762


$


101,062


$


5,762


Other tour revenue


8,487


918


13,259


1,402



Tour Revenues



64,047



6,680



114,321



7,164


Less: Commissions


(4,248)


(515)


(8,653)


(543)


Less: Other tour expenses


(5,006)


(432)


(14,995)


(1,066)



Net Yield


$



54,793


$



5,733


$



90,673


$



5,555


Available Guest Nights


55,413


6,270


103,959


6,270


Gross Yield per Available Guest Night


$


1,156


$


1,065


$


1,100


$


1,143


Net Yield per Available Guest Night


989


914


872


886



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

June 30,



For the six months ended

June 30,



2022



2021



2022



2021


Cost of tours


$


46,384


$


14,835


$


93,955


$


22,440


Plus: Selling and marketing


10,708


3,581


20,991


5,277


Plus: General and administrative


16,368


11,479


31,616


22,092



Gross Cruise Cost



73,460



29,895



146,562



49,809


Less: Commissions


(4,248)


(515)


(8,653)


(543)


Less: Other tour expenses


(5,006)


(432)


(14,995)


(1,066)



Net Cruise Cost



64,206



28,948



122,914



48,200


Less: Fuel Expense


(6,561)


(1,011)


(12,486)


(1,523)



Net Cruise Cost Excluding Fuel



57,645



27,937



110,428



46,677



Non-GAAP Adjustments:


Stock-based compensation


(1,823)


(1,129)


(3,651)


(2,606)


National Geographic fee amortization










Other


(123)


(293)


(142)


(254)



Adjusted Net Cruise Cost Excluding Fuel


$



55,699


$



26,515


$



106,635


$



43,817



Adjusted Net Cruise Cost


$



62,260


$



27,526


$



119,121


$



45,340



Available Guest Nights


55,413


6,270


103,959


6,270


Gross Cruise Cost per Available Guest Night


$


1,326


NM


$


1,410


NM


Net Cruise Cost per Available Guest Night


1,159


NM


1,182


NM


Net Cruise Cost Excluding Fuel per Available Guest Night


1,040


NM


1,062


NM


Adjusted Net Cruise Cost Excluding Fuel per Available Guest Night


1,005


NM


1,026


NM



Adjusted Net Cruise Cost per Available Guest Night



1,124


NM



1,146


NM


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.

Cision
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SOURCE Lindblad Expeditions Holdings, Inc.

rt Lindblad Expeditions Holdings, Inc. Reports 2022 Second Quarter Financial Results