Exhibit 99.1 

 

 

 

Lindblad Expeditions Holdings, Inc. Reports

2018 Second Quarter Financial Results

 

Second Quarter 2018 Highlights:

 

●

Tour revenues increased 25% to $69.5 million

 

●

Net income available to common stockholders increased $2.7 million to $0.1 million

 

●

Adjusted EBITDA increased 117% to $11.5 million

 

●

Lindblad segment Net Yield increased 6% to $1,002 and Occupancy increased to 90%

 

●

Board of Directors authorized building of an additional blue water vessel

 

NEW YORK, August 2, 2018 – Lindblad Expeditions Holdings, Inc. (NASDAQ: LIND; the “Company” or “Lindblad”), a global provider of expedition cruises and adventure travel experiences, today reported financial results for the quarter ended June 30, 2018.

 

Sven-Olof Lindblad, President and Chief Executive Officer, said “Lindblad delivered another quarter of strong financial results during the second quarter as the strategic investments we have made to expand capacity and develop our sales and marketing infrastructure continue to deliver significant returns. As we have added inventory, we have also been able to increase our occupancy and yields from increased demand across our existing loyal customer base and a growing population of new guests who are seeking high quality and immersive expedition experiences. Given the robust demand for authentic adventure travel, we announced last month that we will be building an additional new polar ice class vessel. This will be the fourth new build for Lindblad and allow us to add to our proven track record of delivering unparalleled expeditions to the world’s most remarkable destinations.”

 

SECOND QUARTER RESULTS

 

Tour Revenues

 

Second quarter tour revenues of $69.5 million increased $13.9 million, or 25%, as compared to the same period in 2017. The increase was driven by growth of $12.3 million at the Lindblad segment and a $1.6 million increase at Natural Habitat.

 

Lindblad segment tour revenues of $59.6 million increased $12.3 million, or 26%, compared to the second quarter a year ago primarily due to an 18% increase in Available Guest Nights, mostly from the launch of the National Geographic Quest in July 2017 and fewer planned drydock days in the second quarter of 2018 due to timing. The year on year growth also reflects an increase in Occupancy from 85% to 90% due to higher demand across the fleet and a 6% increase in Net Yield to $1,002 due to increased prices and changes in itineraries.

 

 

Natural Habitat revenues of $9.9 million increased $1.6 million, or 19%, compared to the second quarter a year ago due primarily to higher ticket revenue from additional departures and increased pricing.

 

Net Income

 

Net income available to common stockholders for the second quarter was $0.1 million, $0.00 per diluted share, as compared with net loss available to common stockholders of $2.5 million, $0.06 per diluted share, in the second quarter of 2017. The $2.7 million improvement primarily reflects the higher operating results and $1.1 million of lower stock-based compensation expense in the current year, partially offset by a $1.1 million loss on foreign currency, a $1.1 million increase in depreciation and amortization, primarily due to the addition of the National Geographic Quest to the fleet in July 2017, and a $0.8 million increase in interest expense primarily related to refinancing the Company’s credit facility during the first quarter of 2018.

 

Adjusted EBITDA

 

Second quarter Adjusted EBITDA of $11.5 million increased $6.2 million, or 117%, as compared to the same period in 2017. The increase was driven by growth of $6.3 million at the Lindblad segment slightly offset by a $0.2 million decrease at Natural Habitat.

 

Lindblad segment Adjusted EBITDA of $12.0 million increased $6.3 million, or 112%, as compared to the second quarter a year ago as the increased tour revenues were partially offset by operating costs on the National Geographic Quest. The second quarter also included higher operating costs due to the additional guest nights, increased fuel costs across the fleet due to higher pricing, increased commission expense related to the revenue growth and higher personnel costs.

 

Natural Habitat Adjusted EBITDA was a loss of $0.5 million, a $0.2 million or 45% decrease compared to the second quarter a year ago as the revenue growth was more than offset by increased operating costs related to additional departures and higher marketing and personnel costs to drive long-term growth initiatives.

 

		For the three months ended June 30,																For the six months ended June 30,
(In thousands)		2018				2017				Change				%				2018				2017				Change				%
Tour revenues:
Lindblad		$	59,556			$	47,238			$	12,318				26	%		$	130,009			$	100,440			$	29,569				29	%
Natural Habitat			9,917				8,333				1,584				19	%			21,874				18,259				3,615				20	%
Total tour revenues			69,473				55,571				13,902				25	%			151,883				118,699				33,184				28	%
Impact of voyage cancellations			-				-				-				NA				-				9,140				(9,140	)			NM
Total tour revenues excluding voyage cancellations		$	69,473			$	55,571			$	13,902				25	%		$	151,883			$	127,839			$	24,044				19	%
Operating income (loss):
Lindblad		$	5,107			$	(948	)		$	6,055				NM			$	18,547			$	316			$	18,231				NM
Natural Habitat			(900	)			(705	)			(195	)			(28	%)			32				(605	)			637				105	%
Total operating income			4,207				(1,653	)			5,860				NM				18,579				(289	)			18,868				NM
Impact of voyage cancellations			-				-				-				NA				-				6,464				(6,464	)			NM
Total operating income excluding voyage cancellations		$	4,207			$	(1,653	)		$	5,860				NM			$	18,579			$	6,175			$	12,404				NM
Adjusted EBITDA:
Lindblad		$	11,982			$	5,651			$	6,331				112	%		$	32,871			$	15,490			$	17,381				112	%
Natural Habitat			(532	)			(366	)			(166	)			(45	%)			761				58				703				NM
Total adjusted EBITDA			11,450				5,285				6,165				117	%			33,632				15,548				18,084				116	%
Impact of voyage cancellations			-				-				-				NA				-				6,464				(6,464	)			NM
Total adjusted EBITDA excluding voyage cancellations		$	11,450			$	5,285			$	6,165				117	%		$	33,632			$	22,012			$	11,620				53	%

 

The impact of the cancelled voyages in the prior year on tour revenues was calculated as booked tour revenue at the time of cancellation less insurance proceeds. The impact of the cancelled voyages on operating income and Adjusted EBITDA was calculated as booked tour revenue at the time of cancellation less insurance proceeds and estimated operating costs.

  

 

Liquidity

 

The Company’s cash and cash equivalents were $91.6 million as of June 30, 2018, as compared with $96.4 million as of December 31, 2017. The decrease primarily reflects purchases of property and equipment of $31.5 million, mostly related to the construction of two new vessels, and a $15.7 million increase in restricted cash related to higher deposits for travel on the Company’s U.S. flagged vessels. These decreases were mostly offset by $24.8 million in net cash provided by operating activities due to the improved operating performance and $17.6 million in net cash provided by financing activities primarily due to the increase in long-term debt associated with refinancing our credit facility.

 

Free cash flow use was $6.7 million for the six months ended June 30, 2018 as compared with a use of $15.5 million in the same period of 2017. The $8.8 million improvement is primarily due to the strong operating performance and lower capital expenditures for the construction of new vessels. Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment.

 

LINDBLAD FLEET ACTIVITIES

 

The Company expanded its travel offerings in July 2017 with the launch of the National Geographic Quest. A second new-build coastal vessel, the National Geographic Venture, is currently expected to launch in the fourth quarter of 2018.

 

The Company is also building a polar ice class vessel, the National Geographic Endurance, for delivery in January 2020. This state-of-the-art vessel will join the National Geographic Explorer and the National Geographic Orion as the third polar ice class vessel in the Lindblad National Geographic fleet, with the ability to voyage anywhere around the globe and specializing in polar travel.  The vessel will be capable of exploring deep into the Antarctic and Arctic waters, and will be built with the Ulstein X-BOW® design allowing for greater comfort and speed through rough waters.

 

Following the quarter, the Company announced that its Board of Directors has authorized the building of an additional polar ice class vessel for delivery in 2021.

 

STOCK AND WARRANT REPURCHASE PLAN

 

The Company currently has a $35 million stock and warrant repurchase plan in place. As of July 31, 2018, the Company had repurchased 6.0 million warrants and 864,806 shares under the plan for a total of $22.9 million and had $12.1 million remaining under the plan. As of July 31, 2018, there were 45.8 million shares of common stock and 10.1 million warrants outstanding.

 

FINANCIAL OUTLOOK

 

The Company’s current expectations for the full year 2018 are as follows:

 

●

Tour revenues of $308 - $315 million (16-18% growth)

 

●

Adjusted EBITDA of $54 - $57 million (24-31% growth)

 

As of July 31, 2018, the Lindblad segment had 99% of full year 2018 projected guest ticket revenues on the books versus 99% of full year 2017 guest ticket revenue at the same time last year.

 

NON-GAAP FINANCIAL MEASURES

 

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

 

 

The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The definitions of non-GAAP financial measures along with a reconciliation of non-GAAP financial information to GAAP are included in the supplemental financial schedules beginning on page 10.

 

Conference Call Information

 

The Company has scheduled a conference call at 8:30 a.m. Eastern Time on August 2, 2018 to discuss the earnings of the Company. The conference call can be accessed by dialing (844) 378-6487 (United States), (855) 669-9657 (Canada) or (412) 542-4182 (outside the U.S.). A replay of the call will be available at the Company’s investor relations website, investors.expeditions.com.

 

About Lindblad Expeditions Holdings, Inc.

 

Lindblad Expeditions Holdings, Inc. is an expedition travel company that focuses on ship-based voyages through its Lindblad Expeditions brand and on land-based travel through its subsidiary, Natural Habitat Adventures, an adventure travel and ecotourism company with a focus on responsible nature travel.

 

Lindblad Expeditions works in partnership with National Geographic to inspire people to explore and care about the planet. The organizations work in tandem to produce innovative marine expedition programs and to promote conservation and sustainable tourism around the world. The partnership’s educationally oriented voyages allow guests to interact with and learn from leading scientists, naturalists and researchers while discovering stunning natural environments, above and below the sea, through state-of-the-art exploration tools.

 

Natural Habitat partners with the World Wildlife Fund to offer and promote conservation and sustainable travel that directly protects nature. Natural Habitat’s adventures include polar bear tours in Churchill, Canada, Alaskan grizzly bear adventures and African safaris.

 

Forward Looking Statements

 

Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the Company’s financial projections and may also generally be identified as such because the context of such statements will include words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or words of similar import. Similarly, statements that describe the Company’s financial guidance or future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause results to differ materially from those expected, including, but not limited to, the following: (i) changes adversely affecting the business in which the Company is engaged; (ii) management of the Company’s growth and its ability to execute on its planned growth; (iii) general economic conditions; (iv) the Company’s business strategy and plans; (v) unscheduled disruptions in our business due to weather events, mechanical failures, or other events; (vi) compliance with laws and regulations; (vii) compliance with the financial and/or operating covenants in the Company’s credit agreements; (viii) adverse publicity regarding the cruise industry in general; (ix) loss of business due to competition; (x) the result of future financing efforts; (xi) the inability to meet revenue and Adjusted EBITDA projections; (xii) delays and costs overruns with respect to the construction and delivery of newly constructed vessels; and (xiii) those risks described in the Company’s filings with the SEC. Stockholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect the Company’s performance may be found in its filings with the SEC, which are available at http://www.sec.gov or at http://www.expeditions.com in the Investor Relations section of the Company’s website.

 

  

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

 

		As of June 30,				As of December 31,
		2018				2017
		(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents		$	91,561			$	96,443
Restricted cash and marketable securities			22,803				7,057
Marine operating supplies			5,086				5,045
Inventories			1,792				1,794
Prepaid expenses and other current assets			26,791				21,351
Total current assets			148,033				131,690
Property and equipment, net			273,075				250,952
Goodwill			22,105				22,105
Intangibles, net			8,764				9,554
Other long-term assets			9,785				10,047
Total assets		$	461,762			$	424,348
LIABILITIES
Current Liabilities:
Unearned passenger revenues		$	122,161			$	112,238
Accounts payable and accrued expenses			25,947				30,422
Long-term debt - current			2,000				1,750
Total current liabilities			150,108				144,410
Long-term debt, less current portion			188,229				164,186
Deferred tax liabilties			2,596				2,444
Other long-term liabilities			698				684
Total liabilities			341,631				311,724
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTEREST			6,130				6,302
STOCKHOLDERS’ EQUITY
Preferred stock, $0.0001 par value, 1,000,000 shares authorized; no shares issued and outstanding			-				-
Common stock, $0.0001 par value, 200,000,000 shares authorized;45,775,648 and 45,427,030 issued, 45,401,323 and 44,787,608 outstanding as of June 30, 2018 and December 31, 2017, respectively			5				5
Additional paid-in capital			39,172				42,498
Retained earnings			74,751				63,819
Accumulated other comprehensive income			73				-
Total stockholders’ equity			114,001				106,322
Total liabilities and stockholders’ equity		$	461,762			$	424,348

 

 

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,
		2018				2017				2018				2017
Tour revenues		$	69,473			$	55,571			$	151,883			$	118,699
Cost of tours			33,810				28,697				69,681				61,300
Gross profit			35,663				26,874				82,202				57,399
Operating expenses:
General and administrative			15,879				15,082				30,929				30,184
Selling and marketing			10,583				9,550				22,656				19,846
Depreciation and amortization			4,994				3,895				10,038				7,658
Total operating expenses			31,456				28,527				63,623				57,688
Operating income (loss)			4,207				(1,653	)			18,579				(289	)
Other (expense) income:
Interest expense, net			(2,870	)			(2,076	)			(5,604	)			(4,390	)
(Loss) gain on foreign currency			(1,141	)			577				(1,592	)			823
Other income (expense)			(128	)			107				(120	)			(156	)
Total other expense			(4,139	)			(1,392	)			(7,316	)			(3,723	)
Income (loss) before income taxes			68				(3,045	)			11,263				(4,012	)
Income tax expense (benefit)			227				(467	)			503				(2,060	)
Net income (loss)		$	(159	)		$	(2,578	)		$	10,760			$	(1,952	)
Net income (loss) attributable to noncontrolling interest			(293	)			(45	)			(172	)			(16	)
Net income (loss) available to common stockholders		$	134			$	(2,533	)		$	10,932			$	(1,936	)
Weighted average shares outstanding
Basic			45,894,155				44,428,947				45,322,541				44,567,588
Diluted			46,442,611				44,428,947				45,594,980				44,567,588
Net income (loss) per share available to common stockholders
Basic		$	-			$	(0.06	)		$	0.24			$	(0.04	)
Diluted		$	-			$	(0.06	)		$	0.24			$	(0.04	)

 

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(unaudited)

 

		For the three months ended June 30,
		2018				2017
Cash Flows From Operating Activities
Net income (loss)		$	10,760			$	(1,952	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			10,038				7,658
Amortization of National Geographic fee			1,454				1,454
Amortization of deferred financing costs and other, net			1,045				1,096
Stock-based compensation			1,985				6,407
Deferred income taxes			152				(2,836	)
Loss (gain) on foreign currency			1,592				(106	)
Loss on write-off of assets			129				-
Changes in operating assets and liabilities
Marine operating supplies and inventories			(39	)			(153	)
Prepaid expenses and other current assets			(7,048	)			(4,674	)
Unearned passenger revenues			9,915				25,470
Write-off of unamortized issuance costs related to debt refinancing			359				-
Other long-term assets			(1,120	)			117
Other long-term liabilities			15				14
Accounts payable and accrued expenses			(4,457	)			(9,293	)
Net cash provided by operating activities			24,780				23,202
Cash Flows From Investing Activities
Purchases of property and equipment			(31,502	)			(38,705	)
Transfer to restricted cash and marketable securities			(15,746	)			(12,246	)
Net cash used in investing activities			(47,248	)			(50,951	)
Cash Flows From Financing Activities
Proceeds from long-term debt			200,000				-
Repayments of long-term debt			(170,625	)			(875	)
Payment of deferred financing costs			(6,486	)			(298	)
Repurchase under stock-based compensation plans and related tax impacts			(4,457	)			(1,182	)
Repurchase of warrants and common stock			(854	)			(6,166	)
Net cash provided by (used in) financing activities			17,578				(8,521	)
Effect of exchange rate changes on cash			8				169
Net decrease in cash and cash equivalents			(4,882	)			(36,101	)
Cash and cash equivalents at beginning of period			96,443				135,416
Cash and cash equivalents at end of period		$	91,561			$	99,315
Supplemental disclosures of cash flow information:
Cash paid during the period:
Interest		$	6,534			$	5,195
Income taxes		$	776			$	748
Non-cash investing and financing activities:
Additional paid-in capital exercise proceeds of option shares		$	1,682			$	168
Additional paid-in capital exchange proceeds used for option shares		$	(1,682	)		$	(168	)

 

 

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,
(In thousands)		2018				2017				2018				2017
Net income (loss)		$	(159	)		$	(2,578	)		$	10,760			$	(1,952	)
Interest expense, net			2,870				2,075				5,604				4,390
Income tax expense (benefit)			227				(467	)			503				(2,060	)
Depreciation and amortization			4,994				3,895				10,038				7,658
Loss (gain) on foreign currency			1,141				(577	)			1,592				(823	)
Other (income) expense, net			128				(107	)			120				156
Stock-based compensation			1,119				2,205				1,985				6,407
National Geographic fee amortization			727				727				1,454				1,454
Executive severance costs			287				-				287				-
Reorganization costs			113				112				293				318
Debt refinancing costs			3				-				997				-
Adjusted EBITDA			11,450				5,285				33,632				15,548
Impact of voyage cancellations			-				-				-				6,464
Adjusted EBITDA excluding impact of voyage cancellations		$	11,450			$	5,285			$	33,632			$	22,012

 

Reconciliation of Operating Income to Adjusted EBITDA

Lindblad Segment

 

		For the three months ended June 30,								For the six months ended June 30,
(In thousands)		2018				2017				2018				2017
Operating income (loss)		$	5,107			$	(948	)		$	18,547			$	316
Depreciation and amortization			4,626				3,555				9,309				6,995
Stock-based compensation			1,119				2,205				1,985				6,407
National Geographic fee amortization			727				727				1,454				1,454
Executive severance costs			287				-				287				-
Reorganization costs			113				112				293				318
Debt refinancing costs			3				-				997				-
Adjusted EBITDA			11,982				5,651				32,871				15,490
Impact of voyage cancellations			-				-				-				6,464
Adjusted EBITDA excluding impact of voyage cancellations		$	11,982			$	5,651			$	32,871			$	21,954

 

Reconciliation of Operating Income to Adjusted EBITDA

Natural Habitat Segment

 

		For the three months ended June 30,								For the six months ended June 30,
(In thousands)		2018				2017				2018				2017
Operating income (loss)		$	(900	)		$	(706	)		$	32			$	(605	)
Depreciation and amortization			368				340				729				663
Adjusted EBITDA		$	(532	)		$	(366	)		$	761			$	58

 

 

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,
		2018				2017
Net cash provided by operating activities		$	24,780			$	23,202
Less: purchases of property and equipment			(31,502	)			(38,705	)
Free Cash Flow		$	(6,722	)		$	(15,503	)

 

Guest Metrics - Lindblad Segment

 

		For the three months ended June 30,								For the six months ended June 30,
		2018				2017				2018				2017
Available Guest Nights			50,917				43,171				104,834				85,893
Guest Nights Sold			45,786				36,765				94,721				73,829
Occupancy			89.9	%			85.2	%			90.4	%			86.0	%
Maximum Guests			6,242				4,941				13,047				10,209
Number of Guests			5,684				4,311				11,767				8,912
Voyages			81				66				176				147

 

Calculation of Gross Yield and Net Yield

Lindblad Segment

 

		For the three months ended June 30,								For the six months ended June 30,
		2018				2017				2018				2017
Guest ticket revenues		$	53,832			$	40,745			$	116,512			$	85,790
Other tour revenues			5,724				6,493				13,497				14,650
Tour Revenues			59,556				47,238				130,009				100,440
Less: Orion Insurance Proceeds			-				-				-				(1,900	)
Adjusted Tour Revenues			59,556				47,238				130,009				98,540
Less: Commissions			(4,369	)			(3,659	)			(9,923	)			(7,761	)
Less: Other tour expenses			(4,161	)			(2,972	)			(8,279	)			(7,090	)
Net Revenue		$	51,026			$	40,607			$	111,807			$	83,689
Available Guest Nights			50,917				43,171				104,834				85,893
Gross Yield		$	1,170			$	1,094			$	1,240			$	1,147
Net Yield			1,002				941				1,067				974

  

 

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Supplemental Financial Schedules

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

(unaudited)

 

		For the three months ended June 30,								For the six months ended June 30,
		2018				2017				2018				2017
Cost of tours		$	27,510			$	23,168			$	56,190			$	49,541
Plus: Selling and marketing			9,683				8,960				20,945				18,272
Plus: General and administrative			12,630				12,503				25,018				25,316
Gross Cruise Cost			49,823				44,631				102,153				93,129
Less: Commission expense			(4,369	)			(3,659	)			(9,923	)			(7,761	)
Less: Other tour expenses			(4,161	)			(2,972	)			(8,279	)			(7,090	)
Net Cruise Cost			41,293				38,000				83,951				78,278
Less: Fuel expense			(2,599	)			(1,296	)			(4,709	)			(2,964	)
Net Cruise Cost Excluding Fuel			38,694				36,704				79,242				75,314
Non-GAAP Adjustments:
Stock-based compensation			(1,119	)			(2,205	)			(1,985	)			(6,407	)
National Geographic fee amortization			(727	)			(727	)			(1,454	)			(1,454	)
Executive severance costs			(287	)			-				(287	)			-
Reorganization costs			(113	)			(112	)			(293	)			(318	)
Debt refinancing costs			(3	)			-				(997	)			-
Adjusted Net Cruise Cost Excluding Fuel		$	36,445			$	33,660			$	74,227			$	67,135
Adjusted Net Cruise Cost		$	39,044			$	34,956			$	78,936			$	70,099
Available Guest Nights			50,917				43,171				104,834				85,893
Gross Cruise Cost per Available Guest Night		$	979			$	1,034			$	974			$	1,084
Net Cruise Cost per Available Guest Night			811				880				801				911
Net Cruise Cost Excl. Fuel per Available Guest Night			760				850				756				877
Adj. Net Cruise Cost Excl. Fuel per Avail. Guest Night			716				780				708				782
Adjusted Net Cruise Cost per Available Guest Night			767				810				753				816

 

 

 

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, merger-related expenses, debt refinancing fees and acquisition-related expenses. The Company believes 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. The Company believes Adjusted EBITDA helps 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. 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. The Company’s 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, merger-related expenses and acquisition-related expenses.

 

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, and general and administrative expense.

 

Gross Yield represents tour revenues less insurance proceeds divided by Available Guest Nights.

 

Guest Nights Sold represents the number of guests carried for the period multiplied by the number of nights sailed within the period.

 

Maximum Guests is a measure of capacity and represents the maximum number of guests in a period and is based on double occupancy per cabin (except single occupancy for a single capacity cabin).

 

Net Cruise Cost represents Gross Cruise Cost excluding commissions and certain other direct costs of guest ticket revenues and other tour revenues.

 

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

 

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

 

Net Yield represents Net Revenue divided by Available Guest Nights.

 

Number of Guests represents the number of guests that travel with 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.

 

 

11