Investor’s Roundup: Lindblad Expeditions Holdings Inc. (NASDAQ: LIND)

Consumer Goods
Luther Mize

NEW YORK, March 9, 2020 – Shares of Lindblad Expeditions Holdings Inc. (NASDAQ: LIND) showed the bearish trend with a lower momentum of -3.95% to $10.45. The company traded total volume of 311.090K shares as contrast to its average volume of 143.76K shares. The company has a market value of $540.89M and about 51.76M shares outstanding.

Lindblad Expeditions Holdings Inc. (NASDAQ: LIND) reported third quarter tour revenues of $101.00M increased $13.70M, or 16%, as contrast to the same period in 2018. The increase was driven by growth of $12.10M at the Lindblad segment and $1.70M at Natural Habitat.

Lindblad segment tour revenues of $76.60M increased $12.10M, or 19%, contrast to the third quarter a year ago mainly because of a 14% increase in Available Guest Nights, mostly from the launch of the National Geographic Venture in December 2018. The year on year growth also reflects a 7% increase in Net Yield to $1,054 due mainly to higher pricing and changes in itineraries, as well as a boost in Occupancy to 94%.

Natural Habitat revenues of $24.40M increased $1.70M, or 7%, contrast to the third quarter a year ago due mainly to higher ticket revenue from additional departures and increased pricing.

Net Income:

Net loss available to common stockholders for the third quarter was $0.50M, $0.01 per diluted share, as contrast with net income available to common stockholders of $5.10M, $0.11 per diluted share, in the third quarter of 2018. The $5.60M decrease mainly reflects improved operating results that were more than offset by a $4.70M increase in income tax expense, a $2.70M non-cash deemed dividend related to concluding the warrant exchange, a $2.30M loss on foreign currency and a $1.20M increase in depreciation and amortization due mostly to the addition of the National Geographic Venture to the fleet in December 2018.

Adjusted EBITDA:

Third quarter Adjusted EBITDA of $24.10M increased $7.00M, or 41%, as contrast to the same period in 2018. The increase was driven by growth of $5.90M at the Lindblad segment and $1.10M at Natural Habitat.

Lindblad segment Adjusted EBITDA of $20.60M increased $5.90M, or 40%, as contrast to the third quarter a year ago as the increased tour revenues were partially offset by operating costs on the National Geographic Venture. The third quarter also included increased costs because of higher marketing spend to drive long-term growth programs, higher commission expense related to the revenue growth and increased personnel costs partially offset by lower value-added tax expense.

Natural Habitat Adjusted EBITDA of $3.50M increased $1.10M, or 43%, as contrast to the third quarter a year ago as the revenue growth was partially offset by increased operating costs related to additional departures and higher marketing and personnel costs to drive long-term growth programs.

Liquidity:

The Company’s cash, cash equivalents and restricted cash were $112.10M as of September 30, 2019, as contrast with $122.20M as of December 31, 2018. The decrease mainly reflects purchases of property and equipment of $76.70M, mostly related to the construction of two new vessels, partially offset by $41.60M in net cash offered by operating activities because of the strong operating performance. The current year also includes $25.10M in net cash offered by financing activities mainly because of $30.50M borrowings under our second export credit agreement in conjunction with our second installment payment on the National Geographic Resolution.  The loan bears interest at a floating interest rate equal to three-month LIBOR plus a margin of 3.00% per annum.

Free cash flow use was $35.20M for the nine months ended September 30, 2019 as contrast with a use of $6.30M in the same period of 2018 mainly because of higher capital expenditures for the construction of new vessels. Free cash flow is defined as net cash offered by operating activities less purchases of property and equipment.

The Company presently has a $35.0M stock repurchase plan in place. As of October 29, 2019, the Company had repurchased 6.00M warrants and 866,701 shares under the plan for a total of $22.90M and had $12.10M remaining under the plan. As of October 29, 2019, there were 49.60M shares of common stock outstanding.

The Company offered net profit margin of 3.10% while its gross profit margin was 51.50%. ROE was recorded as 8.40% while beta factor was 0.36. The stock, as of recent close, has shown the weekly downbeat performance of -12.18% which was maintained at -36.09% in this year.

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