Lindblad Expeditions today reported financial results for the fourth quarter and calendar year ended December 31, 2016.
Sven-Olof Lindblad, President and Chief Executive Officer, said “Lindblad’s unique expedition offerings and our long history of delivering unparalleled guest experiences enabled us to expand our Net Yield in 2016, while generating occupancy rates over 90%, despite the industry headwinds earlier in the year. We also took steps to further position ourselves to capitalize on the growing demand for high quality expedition travel. In December, we launched the National Geographic Endeavor II in the Galápagos and began offering immersive expeditions on a charter vessel in Cuba. Additionally, throughout 2016 we made significant progress on the construction of our two new coastal vessels, which are on track to be delivered in the second quarter of 2017 and 2018. With strong booking trends, a loyal customer base, an expanding fleet and a proven track record of providing authentic and differentiated expedition offerings, we are poised to deliver real growth in 2017 and remain firmly on track to achieve our long-term financial targets.”
Tour Revenues
Full year tour revenues of $242.3 million increased $32.4 million, or 15%, as compared to 2015, primarily due to contributions from Natural Habitat, which was acquired in May of 2016. Lindblad segment revenues of $207.8 million decreased $2.1 million, or 1%, compared to 2015, primarily due to a $2.2 million decrease in other tour revenues. Guest ticket revenues were in-line with a year ago as higher pricing across most itineraries was offset by a slight decline in Available Guest Nights and Occupancy.
Lindblad segment Net Yield increased 1% in 2016 to $976 as compared with the prior year, primarily as a result of increased pricing. The slight decrease in Available Guest Nights was mainly due to planned repositioning of the National Geographic Explorer and the National Geographic Orion during the third quarter, as well as from cancellations on the National Geographic Orion for unplanned maintenance. Occupancy declined to 90.3% from 91.8% primarily due to a slowdown in activity on the National Geographic Endeavour in anticipation of the launch of the National Geographic Endeavour II in December 2016.
Net Income
Net income of $5.1 million for 2016, $0.10 per diluted share, decreased $14.7 million as compared with $19.7 million, $0.43 per diluted share, in 2015. Full year 2016 results include an additional $6.8 million of depreciation and amortization and $1.2 million of other expense primarily related to the retirement of the National Geographic Endeavor. Full year 2015 results include $13.3 million of merger related expense and $12.5 million of pre-tax income related to the July 2015 merger with Capitol Acquisition Corp. II.
Adjusted EBITDA
Full year Adjusted EBITDA of $41.7 million decreased $5.1 million, or 11%, compared to the same period in 2015, due to an $8.2 million decrease at the Lindblad segment, partially offset by $3.0 million of contributions from Natural Habitat. The decline in the Lindblad segment primarily reflects the slightly lower revenues in 2016, as well as increased personnel costs related to accelerated hiring in support of the execution of the Company’s long range growth plan. Additionally, 2016 results included legal and administrative costs associated with a full year of operations as a public company and higher cost of tours, mainly due to higher planned drydock spending, partially offset by lower fuel costs.
FOURTH QUARTER RESULTS
Tour Revenues
Fourth quarter tour revenues of $56.1 million increased $9.7 million, or 21%, as compared to the fourth quarter of 2015, primarily due to contributions from Natural Habitat, which was acquired in May of 2016. Lindblad segment revenues of $41.9 million decreased $4.6 million, or 10%, compared to the fourth quarter a year ago, primarily due to a $4.2 million decline in guest ticket revenues as higher pricing across most itineraries was more than offset by lower Occupancy and cancellation of a voyage on the National Geographic Orion due to unplanned engine repairs.
Lindblad segment Net Yield decreased 12% in the fourth quarter to $872 as compared with the same period a year ago, primarily as a result of Occupancy declining to 86.3% as compared with 93.3% in the same period a year ago. The decrease was mainly due to lower bookings during the first half of 2016 related to concerns over the Zika virus and terrorism and a slowdown in activity on the National Geographic Endeavour in anticipation of the launch of the National Geographic Endeavour II in December 2016. Available Guest Nights increased 1% versus the fourth quarter a year ago, primarily due to the launch of charter expeditions in Cuba, partially offset by the voyage cancellation on the National Geographic Orion.
Net Income
Net loss of $8.4 million for 2016, $0.19 per diluted share, decreased $7.9 million from the $0.4 million net loss, $0.01 per diluted share, reported in the fourth quarter a year ago, primarily from lower operating results in the current year, a $3.0 million tax benefit in 2015 and $1.2 million of other expense in 2016 primarily related to the retirement of the National Geographic Endeavor.
