Lindblad Expeditions reports financial results for the second quarter of 2022

National Geographic Endurance

Lindblad Expeditions Holdings today reported financial results for the second quarter ended June 30, 2022.

Dolf Berle, CEO, said: “We are very excited to have all ten ships in our ownership re-immersing guests in the incredible geographies Lindblad has been visiting for decades. The nature of our ships and the remote locations we explore has allowed us to quickly ramp up our operations, and the response from our guests as they experience the thrill of exploration again has never been more rewarding.At the same time, our land-based businesses have also quickly returned to operations and strategic investments we have made to expand our product offering is already resulting in positive contributions to the earnings of these companies. Demand for unique and authentic travel experiences remains strong and we certainly expect it to grow even further in as we continue to emerge from the pandemic Although some short-term headwinds remain, we are poised to begin delivering the upturn nt of the company’s earning power and deliver additional shareholder value in the months ahead.”

Lindblad continued to grow its operations in the second quarter of 2022, offering immersive expeditions on all ten of its owners’ ships, including voyages to Alaska, the Arctic, the Galapagos Islands, Greenland, Iceland, Norway, and the Baltic and North Seas. a press release.

Due to the spread of the COVID-19 virus and the effects of travel restrictions around the world, the company suspended or rescheduled most of its expeditions departing between March 16, 2020 and May 31, 2020. 2021. Travel restrictions related to COVID-19 have eased dramatically, and the company continues to work with local authorities on plans to operate routes in additional geographies in 2022 and 2023. When travel restrictions remain in place, which now also includes a limited number of itineraries affected by the conflict between Russia and Ukraine, the company is working with guests to reschedule travel plans and refund payments or issue future travel certificates, as appropriate.

The company said it has substantial advance bookings for future travel despite a continued short-term impact from the COVID-19 virus, including high cancellations and soft demand in the short term, as well as route changes in some upcoming trips due to Russia. Ukraine conflict. Bookings for 2023 are 26% ahead of bookings for all of 2020 at the same time in 2019, which was before the pandemic.

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 voyages originating in US ports and credit card reservations.

As of June 30, 2022, the Company had a total debt position of $578.2 million and was in compliance with all 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 to December 31, 2022.

During February 2022, the Company issued $360.0 million of 6.75% senior secured notes due 2027 and entered into a new $45.0 million revolving credit facility, including a sub -letter of credit facility in an aggregate aggregate amount of up to $5.0 million. The proceeds of the senior secured notes were used primarily to repay outstanding borrowings under the Company’s pre-existing credit agreement, including the term facility, the Main Street loan and the revolving credit facility. The Senior Secured Obligations are guaranteed by the Company and certain of the Company’s subsidiaries, and are secured by certain of the Company’s assets.

As the company continues to ramp up operations, its monthly use of cash will increase as the company incurs costs in expedition operations, prepares additional vessels for return to service, and spends to advertise upcoming expeditions and voyages . 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 bookings for future trips. 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 in resuming operations, the company said in its statement of results

SECOND QUARTER RESULTS

Tourist income

Second quarter tour revenue of $90.9 million was up $75.6 million compared to the same period in 2021. The increase was driven by a $57.3 million increase in the Lindblad segment and an increase of $18.3 million in the Land Experiences segment, primarily due to increased expeditions. and travel compared to the second quarter a year ago. The Land Experiences segment also includes a full quarter of results from 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, compared to net loss available to stockholders of $36.6 million, $0.71 dollars 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 borrowing 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 tax benefit due to improved operating results.

Adjusted EBITDA

Second quarter adjusted EBITDA loss of $6.2 million improved $16.8 million compared to the same period in 2021. The increase was driven by a $14.4 million improvement in Lindblad segment and a $2.4 million increase in the Land Experiences segment.

Lindblad’s segment adjusted EBITDA loss of $7.5 million improved $14.4 million compared to the same period in 2021, as increased tour revenue was partially offset by ‘increased cost of visits and increased operating ramp staff costs, higher commissions related to 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 compared to 2021, primarily due to additional travel, partially offset by increased cost of tours and the increase in personnel costs related to the ramp-up of operations and the increase in marketing costs to drive future bookings. The Land Experiences segment also includes a full quarter of results from Classic Journeys that was acquired during the fourth quarter of 2021.



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