Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 01, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LINDBLAD EXPEDITIONS HOLDINGS, INC. | |
Entity Central Index Key | 1,512,499 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 45,968,480 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 149,017 | $ 206,903 |
Restricted cash and marketable securities | 10,367 | 8,460 |
Inventories | 1,591 | 1,746 |
Marine operating supplies | 4,195 | 4,969 |
Prepaid expenses and other current assets | 20,742 | 12,266 |
Total current assets | 185,912 | 234,344 |
Property and equipment, net | 164,486 | 125,471 |
Goodwill and other intangibles | 27,953 | |
Other long-term assets | 13,334 | 12,355 |
Operating rights | 5,683 | 6,227 |
Deferred tax assets | 4,497 | 3,216 |
Total assets | 401,865 | 381,613 |
Current Liabilities: | ||
Unearned passenger revenues | 84,620 | 76,604 |
Accounts payable and accrued expenses | 19,943 | 25,968 |
Long-term debt - current | 1,750 | 1,750 |
Total current liabilities | 106,313 | 104,322 |
Long-term debt, less current portion | 164,020 | 162,693 |
Other long-term liabilities | 699 | 677 |
Total liabilities | 271,032 | 267,692 |
COMMITMENTS AND CONTINGENCIES | ||
REDEEMABLE NONCONTROLLING INTEREST | 4,856 | |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.0001 par value, 1,000,000 shares authorized; 0 shares issued and outstanding | ||
Common stock, $0.0001 par value, 200,000,000 shares authorized; 45,968,480 and 45,224,881 issued and outstanding as of September 30, 2016 and December 31, 2015, respectively | 5 | 5 |
Additional paid-in capital | 46,590 | 48,073 |
Retained earnings | 79,382 | 65,843 |
Total stockholders' equity | 125,977 | 113,921 |
Total liabilities, redeemable noncontrolling interest and stockholders' equity | $ 401,865 | $ 381,613 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 45,968,480 | 45,224,881 |
Common stock, shares outstanding | 45,968,480 | 45,224,881 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Tour revenues | $ 70,774 | $ 58,561 | $ 186,218 | $ 163,513 |
Cost of tours | 32,446 | 25,444 | 87,111 | 71,331 |
Gross profit | 38,328 | 33,117 | 99,107 | 92,182 |
Operating expenses: | ||||
General and administrative | 12,915 | 9,684 | 36,740 | 27,518 |
Selling and marketing | 10,164 | 9,482 | 29,294 | 26,919 |
Merger-related expenses | 5,503 | 13,266 | ||
Depreciation and amortization | 5,080 | 2,689 | 14,523 | 8,336 |
Total operating expenses | 28,159 | 27,358 | 80,557 | 76,039 |
Operating income | 10,169 | 5,759 | 18,550 | 16,143 |
Other (expense) income: | ||||
(Loss) gain on foreign currency | (5) | 148 | (291) | (46) |
Gain on transfer of assets | 7,502 | |||
Other income, net | (38) | (24) | (38) | 5,000 |
Interest expense, net | (2,476) | (2,948) | (7,914) | (8,026) |
Total other (expense) income | (2,519) | (2,824) | (8,243) | 4,430 |
Income before income taxes | 7,650 | 2,935 | 10,307 | 20,573 |
Income tax expense (benefit) | 203 | (1,481) | (3,113) | 389 |
Net income | 7,447 | 4,416 | 13,420 | 20,184 |
Net income (loss) attributable to noncontrolling interest | 29 | (119) | ||
Net income attributable to Lindblad | $ 7,418 | $ 4,416 | $ 13,539 | $ 20,184 |
Weighted average shares outstanding | ||||
Basic | 45,776,443 | 45,004,393 | 45,639,608 | 44,814,354 |
Diluted | 46,541,257 | 46,456,315 | 46,329,880 | 45,544,382 |
Earnings per share attributable to Lindblad | ||||
Basic | $ 0.16 | $ 0.10 | $ 0.30 | $ 0.45 |
Diluted | $ 0.16 | $ 0.10 | $ 0.29 | $ 0.44 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Redeemable Noncontrolling Interest |
Balance at Dec. 31, 2015 | $ 113,921 | $ 5 | $ 48,073 | $ 65,843 | |
Balance, shares at Dec. 31, 2015 | 45,224,881 | ||||
Stock-based compensation | 3,982 | $ 3,982 | |||
Stock-based compensation, shares | 199,044 | ||||
Option shares exercised and exchanged | (2,695) | (2,695) | |||
Option shares exercised and exchanged, shares | 280,347 | ||||
Repurchase of warrants | (5,420) | (5,420) | |||
Acquisition of Natural Habitat, Inc. | 2,650 | 2,650 | 4,975 | ||
Acquisition of Natural Habitat, Inc., shares | 264,208 | ||||
Net income (loss) | 13,539 | 13,539 | (119) | ||
Balance at Sep. 30, 2016 | $ 125,977 | $ 5 | $ 46,590 | $ 79,382 | $ 4,856 |
Balance, shares at Sep. 30, 2016 | 45,968,480 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows From Operating Activities | ||
Net income | $ 13,420 | $ 20,184 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 14,523 | 8,336 |
Amortization of National Geographic fee | 2,180 | 670 |
Amortization of debt discount, deferred financing and other costs | 2,582 | 2,733 |
Stock-based compensation | 3,982 | 3,641 |
Deferred income taxes | (3,709) | 385 |
Loss on currency translation | 291 | 46 |
Gain on transfer of assets | (7,502) | |
Changes in operating assets and liabilities | ||
Inventories and marine operating supplies | 1,505 | 761 |
Prepaid expenses and other current assets | 1,098 | 1,092 |
Unearned passenger revenues | (8,620) | 538 |
Other long-term assets | (3,159) | |
Other long-term liabilities | 22 | 192 |
Accounts payable and accrued expenses | (8,430) | (716) |
Net cash provided by operating activities | 15,685 | 30,360 |
Cash Flows From Investing Activities | ||
Purchase of investment in CFMF | (68,088) | |
Acquisition of Natural Habitat, Inc., net of cash acquired | (9,946) | |
Purchases of property and equipment | (50,598) | (8,143) |
Advance from shareholder | 1,501 | |
Purchase of restricted cash and marketable securities | (1,907) | (949) |
Net cash used in investing activities | (62,451) | (75,679) |
Cash Flows From Financing Activities | ||
Proceeds from long-term debt | 175,000 | |
Net proceeds from merger | 186,806 | |
Payments to shareholders for the merger | (90,000) | |
Payment of deferred financing costs | (1,565) | (10,944) |
Repayments of long-term debt | (1,312) | (41,441) |
Proceeds used in exchange of option shares | (2,695) | (4,850) |
Repurchase of warrants | (5,420) | |
Net cash (used in) provided by financing activities | (10,992) | 214,571 |
Effect of exchange rate changes on cash | (128) | (179) |
Net (decrease) increase in cash and cash equivalents | (57,886) | 169,073 |
Cash and cash equivalents as of beginning of period | 206,903 | 39,679 |
Cash and cash equivalents as of end of period | 149,017 | 208,752 |
Cash paid during the period for: | ||
Interest | 7,427 | 4,550 |
Income taxes | 992 | 387 |
Acquisition of Natural Habitat, Inc.: | ||
Total purchase price consideration | 20,025 | |
Consideration consisted of: | ||
Cash paid to acquire Natural Habitat, Inc. | (14,850) | |
Non-cash consideration - long-term debt | (2,525) | |
Non-cash consideration - Lindblad restricted shares | (2,650) | |
Investment in CFMF liquidation of Junior debt asset, warrant | 84,903 | |
CFMF liquidation of Junior debt long-term debt, additional paid-in capital | (84,903) | |
Transfer from inventories and marine operating supplies | (414) | |
Transfer to property and equipment, net | 414 | |
Additional paid-in capital exercise proceeds of option shares | 1,123 | 2,240 |
Additional paid-in capital exchange proceeds used for option shares | $ (1,123) | $ (2,240) |
Business
Business | 9 Months Ended |
Sep. 30, 2016 | |
Business [Abstract] | |
BUSINESS | NOTE 1 – BUSINESS Organization Lindblad Expeditions Holdings, Inc., a Delaware corporation, and its consolidated subsidiaries (the “Company” or “Lindblad”) currently operate a fleet of six owned expedition ships and four seasonal charter vessels under the Lindblad brand. Lindblad’s mission is to offer life-changing adventures on all seven continents and pioneering innovative ways to allow its guests to connect with exotic and remote places. Lindblad’s expedition ships are customized, nimble and intimately-scaled vessels that are able to venture where larger cruise ships cannot, thus allowing Lindblad to offer up-close experiences in the planet’s wild and remote places and capitals of culture. Many of these expeditions involve travel to remote places with limited infrastructure and ports (such as Antarctica and the Arctic) or places that are best accessed by a ship (such as the Galápagos, Alaska, Baja’s Sea of Cortez, Costa Rica, and Panama), and foster active engagement by guests. Each expedition ship is designed to be comfortable and inviting, while being fully equipped with state-of-the-art tools for in-depth exploration. The Company also has an alliance with the National Geographic Society (“National Geographic”), which often provides lecturers and National Geographic experts, including photographers, writers, marine biologists, naturalists, field researchers, and film crews. Natural Habitat Acquisition On May 4, 2016, the Company acquired an 80.1% ownership interest in Natural Habitat, Inc. (“Natural Habitat”), an adventure travel and ecotourism company based in Colorado. Natural Habitat is managed by Benjamin L. Bressler, its founder and President (“Mr. Bressler”), who retains a 19.9% noncontrolling interest. With the acquisition of Natural Habitat, the Company has expanded its land-based offerings. Natural Habitat offers eco-conscious expeditions from Antarctica to Zambia with a multitude of adventures in between. Natural Habitat’s itineraries include world-class polar bear tours in Churchill, Canada, Alaskan grizzly bear adventures, small-group Galápagos tours and African safaris. In addition to its land offerings, Natural Habitat offers select itineraries on seven small chartered vessels for parts of the year. Since 2003, Natural Habitat has partnered with the World Wildlife Fund (“WWF”) to offer conservation travel, sustainable travel that directly protects nature. This agreement with WWF extends through 2023. The Company recorded this transaction using the acquisition method for business combinations. The Company measured the identifiable assets, liabilities and noncontrolling interest of Natural Habitat at their fair market value as of the acquisition date and separately measured goodwill at its fair market value as of the acquisition date. The total purchase price consideration of approximately $20.0 million consisted of $14.8 million cash, a $2.5 million unsecured promissory note, which is included in long-term debt, and $2.7 million in Lindblad restricted common stock (264,208 shares). Assets acquired consisted of current assets, including cash acquired, of $14.5 million, property and equipment of $2.1 million and goodwill and other intangibles of $28.3 million. Liabilities assumed consisted of accounts payable and accrued expenses of $2.5 million, unearned passenger revenues of $15.0 million, and deferred tax liabilities of $2.4 million. A redeemable noncontrolling interest in a consolidated subsidiary of $5.0 million was assumed. Natural Habitat’s results of operations for the period beginning May 5, 2016 and ending September 30, 2016 are included in the Company’s condensed consolidated statements of income. Merger with Capitol Capitol Acquisition Corp. II (“Capitol”) was originally incorporated in Delaware on August 9, 2010 as a blank check company to acquire, through a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination, one or more businesses or entities. On July 8, 2015, Capitol completed a series of mergers whereby Lindblad Expeditions, Inc. (“LEX”), a New York corporation, became Capitol’s wholly-owned subsidiary. As consideration for the mergers, the total purchase price consisted of an aggregate of (i) $90.0 million in cash (a portion of which was paid as transaction bonuses) and (ii) 20,017,787 shares of Capitol common stock. Capitol also assumed outstanding LEX stock options and converted such options into options to purchase an aggregate of 3,821,696 shares of Capitol common stock with an exercise price of $1.76 per share. As a result of the mergers, LEX became a direct wholly-owned subsidiary of Capitol. Immediately following the mergers, Capitol, which had no operations, changed its name to Lindblad Expeditions Holdings, Inc. and therefore Lindblad has presented LEX’s information as that of the Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding unaudited interim financial information. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Income, Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders’ Equity and Condensed Consolidated Statements of Cash Flows for the interim periods presented. Operating results for the interim periods presented are not necessarily indicative of the results of operations to be expected for the full year due to seasonality and other factors. Certain information and footnote disclosures normally included in the condensed consolidated financial statements in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. All intercompany balances and transactions have been eliminated in the accompanying unaudited condensed consolidated financial statements. Accordingly, these unaudited interim condensed consolidated financial statements and footnotes should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto for the year ended December 31, 2015 contained in the Annual Report on Form 10-K filed with the SEC on March 14, 2016. Principles of Consolidation The condensed consolidated financial statements of the Company as of September 30, 2016 and December 31, 2015 included Lindblad Expeditions Holdings, Inc. and its consolidated subsidiaries. Natural Habitat’s balance sheet as of September 30, 2016 and results of operations for the period beginning May 5, 2016 and ending September 30, 2016 are included in the Company’s condensed consolidated financial statements. Reclassifications Certain items in the condensed consolidated financial statements of the Company have been reclassified to conform to the 2016 classification. The reclassifications had no effect on previously reported results of operations or retained earnings. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, and also affect the amounts of revenues and expenses reported for each period. Actual results could differ from those which result from using such estimates. Management utilizes various estimates, including but not limited to determining the estimated lives of long-lived assets, determining the fair value of assets acquired and liabilities assumed in business combinations, the fair value of the Company’s common stock and related warrants, the valuation of securities underlying stock-based compensation, income tax expense, the valuation of deferred tax assets, the value of contingent consideration, and to assess its litigation, other legal claims and contingencies. The results of any changes in accounting estimates are reflected in the condensed consolidated financial statements in the period in which the changes become evident. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the period that they are determined to be necessary. Revenue Recognition Tour revenues consist of guest ticket revenues recognized from the sale of guest tickets and other tour revenues from the sale of pre- and post-expedition excursions, hotel accommodations, land-based expeditions, air transportation to and from the ships, goods and services rendered onboard that are not included in guest ticket prices, trip insurance, and cancellation fees. Revenues from the sale of guest tickets and other tour revenues are recognized gross, as the Company has the primary obligation in the arrangement, has discretion in supplier selection and is involved in the determination of the service specifications. The Company’s tour guests remit deposits in advance of tour embarkation. Guest tour deposits consist of guest ticket revenues as well as revenues from the sale of pre- and post-expedition excursions, hotel accommodations, land-based expeditions, air transportation to and from the ships, and trip insurance. Guest tour deposits represent unearned revenues and are initially included in unearned passenger revenues in the condensed consolidated balance sheet when received. Guest deposits are subsequently recognized as tour revenues on the date of embarkation. Tour expeditions average ten days in duration. For tours of owned vessels in excess of ten days, where the tour days span a quarter, the Company recognizes revenue based upon expedition days earned. Guest cancellation fees are recognized as tour revenues at the time of the cancellation. Revenues from the sale of additional goods and services rendered onboard are recognized upon purchase. Earnings per Common Share Earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of common shares outstanding and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the dilutive incremental common shares issuable upon the exercise of stock options (if such option is an equity instrument, using the treasury stock method). For the three and nine months ended September 30, 2016, the Company determined, using the treasury method, there were 764,814 and 690,272 dilutive common shares, respectively, related to stock options. For the three and nine months ended September 30, 2015, the Company determined, using the treasury method, there were 1,451,922 and 730,028 dilutive common shares, respectively, related to stock options. As of September 30, 2016, there were 202,091 unvested restricted shares and restricted share units granted to non-employee directors and employees at a weighted-average value of $9.90 per share. The Company determined these shares were anti-dilutive and were not considered in the calculation of diluted weighted average shares outstanding. As of September 30, 2016, 12,040,937 warrants to purchase common stock at a price of $11.50 per share were outstanding. The Company determined these warrants were anti-dilutive and were not considered in the calculation of diluted weighted average shares outstanding. On July 8, 2015, as a result of the mergers, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805-40-45 and related to the reverse merger treatment and recapitalization, all historical weighted average common shares were adjusted by the exchange ratios established by the merger agreement. For the three and nine months ended September 30, 2016 and 2015, the Company calculated earnings per share in accordance with FASB ASC 260 and 805-40-45 as follows: (In thousands, except share and per share data) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Net income attributable to Lindblad for basic and diluted earnings per share $ 7,418 $ 4,416 $ 13,539 $ 20,184 Weighted average shares outstanding: Total weighted average shares outstanding, basic 45,776,443 45,004,393 45,639,608 44,814,354 Effect of dilutive securities: Assumed exercise of stock options, treasury method 764,814 1,451,922 690,272 730,028 Total weighted average shares outstanding, diluted 46,541,257 46,456,315 46,329,880 45,544,382 Weighted average shares outstanding Basic 45,776,443 45,004,393 45,639,608 44,814,354 Diluted 46,541,257 46,456,315 46,329,880 45,544,382 Earnings per share attributable to Lindblad Basic $ 0.16 $ 0.10 $ 0.30 $ 0.45 Diluted $ 0.16 $ 0.10 $ 0.29 $ 0.44 As of September 30, 2016, there were 45,968,480 shares outstanding. The Company is authorized to issue 200,000,000 shares of common stock, par value $0.0001, and 1,000,000 shares of preferred stock, par value $0.0001. The Company’s Board of Directors and stockholders approved a 2015 Long-Term Incentive Plan (the “2015 Plan”), which includes the authority to issue up to 2,500,000 shares of Lindblad’s common stock under the 2015 Plan. As of September 30, 2016, options to purchase an aggregate of 2,130,848 shares of the Company’s common stock with a weighted average exercise price of $2.57 per share were outstanding (including options assumed in the mergers) and 2,066,188 common shares were available for award under the 2015 Plan. In 2016, the Company’s Board of Directors and stockholders approved a new equity incentive plan (the “2016 CEO Share Allocation Plan”), which includes the authority to issue up to 1,000,000 shares of Lindblad’s common stock that are contributed to the Company by its CEO under the 2016 CEO Share Allocation Plan. Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less, as well as deposits in financial institutions, to be cash and cash equivalents. Concentration of Credit Risk The Company maintains cash in several financial institutions in the U.S. and other countries which, at times, may exceed the federally insured limits. Accounts held in the U.S. are guaranteed by the Federal Deposit Insurance Corporation up to certain limits. The Company has not experienced any losses in such accounts. As of September 30, 2016 and December 31, 2015, the Company’s cash held in financial institutions outside of the U.S. amounted to $6.8 million and $3.9 million, respectively. Restricted Cash and Marketable Securities Included in “Restricted cash and marketable securities” on the accompanying condensed consolidated balance sheets are restricted cash and marketable securities, consisting of six-month certificates of deposit and short-term investments. Restricted cash and marketable securities consist of the following: As of September 30, December 31, (In thousands) 2016 2015 Restricted cash and marketable securities: Credit negotiation and credit card processor reserves $ 5,030 $ 5,030 Federal Maritime Commission escrow 3,911 2,233 Certificates of deposit and other restricted securities 1,426 1,197 Total restricted cash and marketable securities $ 10,367 $ 8,460 The amounts held in restricted cash and marketable securities represent principally funds required to be held in certificates of deposit by certain vendors and regulatory agencies and are classified as restricted assets since such amounts cannot be used by the Company until the restrictions are removed by those vendors and regulatory agencies. Interest income is recognized when earned. The Company has classified marketable securities, principally money market funds, as trading securities which are recorded at market value. Unrealized gains and losses are included in current operations. Gains and losses on the disposition of securities are recognized by the specific identification method in the period in which they occur. In order to operate guest tour expedition vessels from U.S. ports, the Company is required to post a performance bond with the Federal Maritime Commission or escrow all unearned guest deposits plus an additional 10% in restricted accounts. To satisfy this requirement, the Company entered into an agreement with a financial institution to escrow all unearned guest revenues collected for sailings from U.S. ports. A $5.0 million cash reserve as of September 30, 2016 and December 31, 2015 is required for credit card deposits by third-party credit card processors. The above arrangements are included in restricted cash and marketable securities on the accompanying condensed consolidated balance sheets. Amounts in the escrow accounts include cash, certificates of deposit and marketable securities. Cost of these short-term investments approximates fair value. Inventories and Marine Operating Supplies Inventories consist primarily of gift shop merchandise and other items for resale and are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. Marine operating supplies consist primarily of fuel, provisions, spare parts, items required for maintenance, and supplies used in the operation of marine expeditions. Marine operating supplies are stated at the lower of cost or net realizable value. Cost is determined using the first-in first-out method. Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization were computed using the straight line method over the estimated useful lives of the assets, as follows: Years Vessels and vessel improvements 15-25 Furniture, vehicles and equipment 5 Computer hardware and software 5 Leasehold improvements, including expedition sites and port facilities Shorter of lease term or related asset life The ship-based tour and expedition industry is very capital intensive and as of September 30, 2016 and December 31, 2015, the Company owned and operated six vessels and has two new coastal vessels under construction and one purchased vessel under renovation. Therefore, the Company has a capital program that it develops for the improvement of its vessels, expedition sites and for asset replacements in order to enhance the effectiveness and efficiency of its operations; comply with, or exceed all relevant legal and statutory requirements related to health, environment, safety, security and sustainability; and gain strategic benefits or provide newer improved product innovations to its guests. Vessel and site improvement costs that add value to the Company’s vessels and expedition sites, such as those discussed above, are capitalized to the vessels and site improvements and depreciated over the shorter of the improvements or the vessel’s estimated remaining useful life, while costs of repairs and maintenance, including minor improvement costs and drydock expenses, are charged to expense as incurred and included in other vessels operating expenses. Drydock costs primarily represent planned major maintenance activities that are incurred when a vessel is taken out of service for scheduled maintenance. For U.S. flagged ships, the statutory requirement is an annual docking and U.S. Coast Guard inspections, normally conducted in drydock. Internationally flagged ships have scheduled dockings approximately every 12 months, for a period of up to three to six weeks. For the nine months ended September 30, 2016, the Company had $50.6 million in capital expenditures, which includes capitalized interest, added to property and equipment, net which included $26.9 million for the purchase and renovation of its National Geographic Endeavour II Via Australis National Geographic Endeavour II Goodwill and Other Intangible Assets Goodwill and other intangible assets include the cost of the acquired business in excess of the fair value of the tangible net assets recorded in connection with the acquisition of Natural Habitat (see Note 1 – Business). SFAS No. 142, “ Goodwill and Other Intangible Assets The Company has recorded book goodwill for which there is no tax basis and is therefore not tax deductible. Other intangible assets include tradenames and customer lists. Tradenames are words, symbols, or other devices used in trade or business to indicate the source of products and to distinguish it from other products and are registered with government agencies and are protected legally by continuous use in commerce. Customer lists are established relationships with existing customers that resulted in repeat purchases and customer loyalty. Based on the Company’s analysis, amortization of the tradenames and customer lists was computed using the estimated useful lives of 15 and 5 years, respectively. Upon the occurrence of a triggering event, the assessment of possible impairment of the Company’s other intangible assets is based on the Company’s ability to recover the carrying value of its asset, which is determined by using the asset’s estimated undiscounted future cash flows. If these estimated undiscounted future cash flows are less than the carrying value of the asset, an impairment charge is recognized for the excess, if any, of the asset’s carrying value over its estimated fair value. A significant amount of judgment is required in estimating the future cash flows and fair values of its tradenames and customer lists. As of September 30, 2016, goodwill and other intangible assets, net of amortization, consisted of $22.1 million in goodwill, $3.0 million in customer lists and $2.8 million in tradenames. Long-Lived Assets The Company reviews its long-lived assets, principally its vessels and operating rights, for impairment whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Upon the occurrence of a triggering event, the assessment of possible impairment is based on the Company’s ability to recover the carrying value of its asset, which is determined by using the asset’s estimated undiscounted future cash flows. If these estimated undiscounted future cash flows are less than the carrying value of the asset, an impairment charge is recognized for the excess, if any, of the asset’s carrying value over its estimated fair value. A significant amount of judgment is required in estimating the future cash flows and fair values of its vessels and operating rights. As of September 30, 2016 and December 31, 2015, there was no triggering event and the Company did not record an impairment of its long-lived assets. In the first quarter of 2016, the Company reviewed the remaining useful life of the National Geographic Endeavour National Geographic Endeavour II National Geographic Endeavour’s National Geographic Endeavour Fair Value Measurements and Disclosure The Company applies ASC 820, “Fair Value Measurements and Disclosures,” which expands disclosures for assets and liabilities that are measured and reported at fair value on a recurring basis. Fair value is defined as an exit price, representing the amount that would be received upon the sale of an asset or payment to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 Quoted market prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at measurement date. Level 2 Quoted market prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable, either directly or indirectly. Fair value is determined through the use of models or other valuation methodologies. Level 3 Significant unobservable inputs for assets or liabilities that cannot be corroborated by market data. Fair value is determined by the reporting entity’s own assumptions utilizing the best information available, and includes situations where there is little market activity for the investment. The carrying amounts of cash and cash equivalents, accounts payable and accrued expenses, approximate fair value due to the short-term nature of these instruments. The carrying value of long-term debt approximates fair value given that the terms of the agreement were comparable to the market as of September 30, 2016. As of September 30, 2016 and December 31, 2015, the Company had no other liabilities that were measured at fair value on a recurring basis. The asset’s or liability’s fair value measurement within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. Level 3 financial liabilities consist of obligations for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. Changes in fair value measurements categorized within Level 3 of the fair value hierarchy are analyzed each period based on changes in estimates or assumptions and recorded as appropriate. Income Taxes The Company is subject to income taxes in both the U.S. and the non-U.S. jurisdictions in which it operates. Significant management judgement is required in projecting ordinary income to determine the Company’s estimated effective tax rate. The Company accounts for income taxes using the asset and liability method, under which it recognizes deferred income taxes for the tax consequences attributable to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities, as well as for tax loss carryforwards and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. The Company provides a valuation allowance against deferred tax assets if, based upon the weight of available evidence, the Company does not believe it is “more-likely-than-not” that some or all of the deferred tax assets will be realized. The Company will continue to evaluate the deferred tax asset valuation allowance balances in all of our foreign and U.S. companies to determine the appropriate level of valuation allowances. The Company is subject to income taxes in both the U.S. and the non-U.S. jurisdictions in which it operates. The Company regularly assesses the potential outcome of current and future examinations in each of the taxing jurisdictions when determining the adequacy of the provision for income taxes. The Company has only recorded financial statement benefits for tax positions which it believes reflect the “more-likely-than-not” criteria of FASB’s authoritative guidance on accounting for uncertainty in income taxes, and it has established income tax reserves in accordance with this guidance where necessary. As of September 30, 2016 and December 31, 2015, the Company had a liability for unrecognized tax benefits of $0.7 million and $0.7 million, respectively, which was included in other long-term liabilities on the Company’s condensed consolidated balance sheets. The guidance also discusses the classification of related interest and penalties on income taxes. The Company’s policy is to record interest and penalties on uncertain tax positions as a component of income tax expense. The Company is subject to tax audits in all jurisdictions for which it files tax returns. Tax audits by their very nature are often complex and can require several years to complete. Currently, there are no U.S. federal, state or foreign jurisdiction tax audits pending. The Company’s corporate U.S. federal and state tax returns from 2013 to 2015 remain subject to examination by tax authorities and the Company’s foreign tax returns from 2011 to 2014 remain subject to examination by tax authorities. Stock-Based Compensation The Company accounts for equity instruments issued to employees, non-employee directors or other service providers in accordance with accounting guidance that requires that awards are recorded at their fair value on the date of grant and are amortized over the service period of the award. The Company recognizes compensation costs on a straight line basis over the requisite service period of the award, which is generally the vesting term of the equity instrument issued. To the extent that an equity award later becomes eligible to be put back to the Company, then the fair value of that award or those exercised shares are transferred out of additional paid-in-capital to a liability account and is thereafter marked-to-market annually to fair value. Redeemable Noncontrolling Interest The Company, in connection with the acquistion of Natural Habitat, recognized a noncontrolling interest and measured it at fair value on the acquisition date according to ASC 805-20-30-1. The Company recognized the noncontrolling interest as a redeemable noncontrolling interest to the extent that the risks and rewards of ownership substantially remain with the noncontrolling interest. Mr. Bressler’s “noncontrolling interest” in the remaining 19.9% interest in Natural Habitat not owned by the Company is subject to a put/call arrangement. The arrangement between the Company and Mr. Bressler was established in order to provide a formal exit opportunity for Mr. Bressler and a path to 100% ownership for the Company. Mr. Bressler has a put option under certain conditions, subject to providing notice by October 31, 2020, that enables him, but does not obligate him, to sell his remaining interest in Natural Habitat on December 31, 2020. The Company has a call option, but not an obligation, with an expiration of December 31, 2025, for which it can buy Mr. Bressler’s remaining interest at a similar fair value measure as Mr. Bressler’s put option. These rights to purchase or sell the noncontrolling interest may be at a fixed or variable price, or at fair value, and may be exercisable on a fixed date or any time at some point in the future. The existence of these rights impacts (1) whether separate assets or liabilities should be recognized for these rights, (2) the classification of any minority ownership as a liability, equity or redeemable noncontrolling interest, and (3) the amount of earnings recognized in the financial statements. As the purchase prices indicated similar fair value measures, the put/call arrangement had been struck at fair value and each party is in agreement that the valuation is indicative of fair value, the asset and liability position would be netted and it is expected that the resulting value would be immaterial given the structure of the arrangement. As Mr. Bressler is responsible for the management of Natural Habitat, the risks and rewards of ownership substantially remain with the noncontrolling interest. The existence of the put/call arrangement does not indicate a separate obligation or liability for either party. Based on the existence of redemptive rights by Mr. Bressler, and the existence of risks and rewards of ownership, the noncontrolling interest was recorded separately as a redeemable noncontrolling interest. The put right is not redeemable unless notice is provided as per the requirements of the agreement. Recent Accounting Pronouncements In October 2016, FASB issued Accounting Standards Update (“ASU”) No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”. The amendment was issued to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. FASB decided that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this Update eliminate the exception for an intra-entity transfer of an asset other than inventory. Public business entities should apply the guidance to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted. The Company will evaluate the effects, if any, that adoption of this ASU will have on its condensed consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, “Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments” (Topic 230). ASU No. 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. For public business entities, this ASU is effective for financial statements issued for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company adopted this ASU in the third quarter of 2016 and its adoption did not have a material impact to the Company’s condensed consolidated financial statements. In May 2016, FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers – Narrow-Scope Improvements and Practical Expedients” (Topic 606). ASU No. 2016-12 addresses matters raised by the FASB-International Accounting Standards Board Joint Transition Resource Group for Revenue Recognition regarding an entity’s implementation of and transition to Topic 606. The amendments do not change the core principle of the guidance in Topic 606. Instead, the FASB provides clarification regarding specific issues, as follows: (1) satisfying the collectability and other criteria for identifying a contract, (2) presentation of sales taxes and other similar taxes collected from customers, (3) noncash consideration, and (4) transitional guidance regarding modified contracts, completed contracts and accounting change disclosures. Public business entities should apply the guidance similar to Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company will evaluate the effects, if any, that adoption of this ASU will have on its condensed consolidated financial statements. In April 2016, FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers – Identifying Performance Obligations and Licensing” (Topic 606). The amendments clarify two aspects of ASU No. 2014-09, “Revenue from Contracts with Customers,” by providing (1) guidance for identifying performance obligations and (2) licensing implementation guidance. Public business entities should apply the guidance similar to Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company will evaluate the effects, if any, that adoption of this ASU will have on its condensed consolidated financial statements. In March 2016, FASB issued ASU No. 2016-09, “Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting” (Topic 718). The amendments in this ASU are to significantly reduce the complexity and cost of accounting for excess tax benefits and tax deficiencies related to employee share-based payment transactions, which include restricted stock and stock options. Also, ASU No. 2016-09 requires an entity to run excess tax benefits and deficiencies through its income statement, which in effect eliminates the concept of additional paid-in capital. For public business entities, the amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, including interim periods within those annual periods. The Company will evaluate the effects, if any, that adoption of this ASU will have on its condensed consolidated financial statements. In March 2016, FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers – Principal versus Agent Considerations (Reporting Gross versus Net)” (Topic 606). The amendments clarify implementation guidance of ASU No. 2014-09, “Revenue from Contracts with Customers,” by improving the operability and understandability of principal versus agent considerations. Public business entities should apply the guidance similar to Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reportin |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2016 | |
Long-Term Debt [Abstract] | |
LONG-TERM DEBT | NOTE 3 – LONG-TERM DEBT Note Payable On May 4, 2016, in connection with the Natural Habitat acquisition, Natural Habitat issued an unsecured promissory note to Mr. Bressler with an outstanding principal amount of $2.5 million. The promissory note accrues interest at a rate of 1.44% and matures on December 31, 2020. Credit Facility On May 8, 2015, the Company entered into a credit agreement with Credit Suisse A. G. (“Credit Suisse”) as Administrative Agent and Collateral Agent (“Credit Agreement”) for a $150.0 million facility in the form of a $130.0 million U.S. term loan (the “U.S. Term Loan”) and a $20.0 million Cayman term loan for the benefit of the Company’s foreign subsidiaries (the “Cayman Loan,” and together with the U.S. Term Loan, the “Loans”). The Loans incurred interest at a rate based on an adjusted ICE Benchmark administration LIBO Rate (subject to a floor of 1.00%) plus a spread of 5.50%. On July 8, 2015, the Company entered into an amended and restated credit agreement with Credit Suisse as Administrative Agent and Collateral Agent increasing by $25.0 million the U.S. Term Loan to a $155.0 million facility (total facility of $175.0 million excluded $11.0 million in deferred financing costs) (“Amended Credit Agreement”). The Loans bear interest at a rate based on an adjusted ICE Benchmark administration LIBO Rate (subject to a floor of 1.00%) plus a spread of 4.50%. As of September 30, 2016, the interest rate was 5.50%. The Credit Agreement (i) requires the Company to satisfy certain financial covenants as set forth in the Amended Credit Agreement; (ii) limits the amount of indebtedness the Company may incur; (iii) limits the amount the Company may spend in connection with certain types of investments; (iv) requires the delivery of certain periodic financial statements and an operating budget and (v) requires the mortgaged vessels and related inventory to be maintained in good working condition. The U.S. Term Loan and the Cayman Loan both mature on May 8, 2021. On March 7, 2016, the Company entered into a second amended and restated credit agreement with Credit Suisse as Administrative Agent and Collateral Agent (“Restated Credit Agreement”), amending its existing senior secured credit facility with Credit Suisse (“Restated Credit Facility”). The Restated Credit Facility provides for the Company’s existing $175.0 million senior secured first lien term loan facility and a new $45.0 million senior secured incremental revolving credit facility, which includes a $5.0 million letter of credit subfacility (“Revolving Credit Facility”). The Company’s obligations under the Restated Credit Facility are secured by substantially all the assets of the Company. The Revolving Credit Facility matures on May 8, 2020. Borrowings under the Loans will continue to bear interest at an adjusted ICE Benchmark administration LIBO Rate (subject to a floor of 1.00%) plus a spread of 4.50%. Borrowings under the Revolving Credit Facility will bear interest at an adjusted ICE Benchmark administration LIBO Rate plus a spread of 4.00%, or, at the option of the Company, an alternative base rate plus a spread of 3.00%. The Company is also required to pay a 0.50% annual commitment fee on undrawn amounts under the Revolving Credit Facility. The Restated Credit Agreement contains the same financial and operational covenants as the Amended Credit Agreement. As of September 30, 2016, the Company was in compliance with the financial covenants. Borrowings under the Revolving Credit Facility will be used for general corporate and working capital purposes and related fees and expenses. As of September 30, 2016, the Company had no borrowings under the Revolving Credit Facility. For the three months ended September 30, 2016 and 2015, total debt discount and deferred financing costs charged to interest expense was $0.5 million and $0.5 million, respectively. For the nine months ended September 30, 2016 and 2015, total debt discount and deferred financing costs charged to amortization and interest expense was $1.7 million and $2.7 million, respectively. Long-Term Debt Outstanding As of September 30, 2016 and December 31, 2015, the following long-term debt was outstanding: As of September 30, 2016 December 31, 2015 Discount Discount and and Deferred Balance, Deferred Balance, Financing net of Financing net of (In thousands) Principal Costs, net discount Principal Costs, net discount Note payable $ 2,525 $ - $ 2,525 $ - $ - $ - Credit Facility 172,813 (9,568 ) 163,245 174,125 (9,682 ) 164,443 Total long-term debt 175,338 (9,568 ) 165,770 174,125 (9,682 ) 164,443 Less current portion (1,750 ) - (1,750 ) (1,750 ) - (1,750 ) Total long-term debt, non-current $ 173,588 $ (9,568 ) $ 164,020 $ 172,375 $ (9,682 ) $ 162,693 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 4 – COMMITMENTS AND CONTINGENCIES Lease Commitments The Company leases office space and equipment under long-term leases, which are classified as operating leases. Rent expense was $0.3 million and $0.8 million for the three and nine months ended September 30, 2016, respectively, and $0.2 million and $0.7 million for the three and nine months ended September 30, 2015, respectively. These amounts are recorded within general and administrative expenses on the accompanying condensed consolidated statements of income. Fleet Expansion On December 2, 2015, the Company entered into two separate Vessel Construction Agreements, (collectively, the “Agreements”) with Ice Floe, LLC, a Washington limited liability company doing business as Nichols Brothers Boat Builders (the “Builder”). The Agreements provide for the Builder to construct two new 236-foot 100-passenger cruise vessels at a purchase price of $48.0 million and $46.8 million, respectively, payable monthly based on the value of the work performed through the end of the preceding month. As of September 30, 2016, the Company has spent a total of $30.2 million for the construction of these two coastal vessels. The Builder is required to deliver the vessels in the second quarter of 2017 and the second quarter of 2018, respectively, subject to extension for certain events, such as change orders. The Company may terminate the applicable Agreements in the event the Builder fails to deliver the vessel within 180 days of the applicable due date or the Builder becomes insolvent or otherwise bankrupt. The Agreements also contain customary representations, warranties, covenants, and indemnities. On December 29, 2015, a subsidiary of the Company entered into a Memorandum of Agreement to purchase a ship known as the Via Australis National Geographic Endeavour II Royalty Agreement – National Geographic The Company is engaged in an alliance and license agreement with National Geographic, which allows the Company to use the National Geographic name and logo. In return for these rights, the Company is charged a royalty fee. The royalty fee is included within selling and marketing expense on the accompanying condensed consolidated statements of income. The amount is calculated based upon a percentage of certain ticket revenues less travel agent commission, including the revenues received from cancellation fees and any revenues received from the sale of voyage extensions. A voyage extension occurs when a guest extends their trip with pre- or post-voyage hotel nights and is included within tour revenues on the accompanying condensed consolidated statements of income. The royalty expense is recognized at the time of revenue recognition. See Note 2 for a description of the Company’s revenue recognition policy. Royalty expense for the three and nine months ended September 30, 2016 totaled $1.2 million and $3.6 million, respectively, and for the three and nine months ended September 30, 2015 totaled $1.3 million and $3.7 million, respectively. The balances outstanding to National Geographic as of September 30, 2016 and December 31, 2015 are $1.4 million and $1.3 million, respectively, and are included in accounts payable and accrued expenses on the accompanying condensed consolidated balance sheets. Royalty Agreement – World Wildlife Fund Natural Habitat has a license agreement with World Wildlife Fund, which allows it to use the WWF name and logo. In return for these rights, Natural Habitat is charged a royalty fee and a fee based on annual gross sales. The fees are included within selling and marketing expense on the accompanying condensed consolidated statements of income. The annual royalty payment and gross sales fees are paid on a quarterly basis. For each of the three and nine months ended September 30, 2016, these fees were $0.2 million and $0.3 million, respectively. Charter Commitments From time to time, the Company enters into agreements to charter vessels onto which it holds its tours and expeditions. Future minimum payments on its charter agreements are as follows: For the Years Ended December 31, Amount (In thousands) 2016 (three months) $ 2,724 2017 8,793 2018 6,154 2019 1,482 Total $ 19,153 Legal Proceedings The Company is involved in various claims, legal actions and regulatory proceedings arising from time to time in the ordinary course of business. The Company has protection and indemnity insurance that would be expected to cover any damages. |
Employee Benefit Plan
Employee Benefit Plan | 9 Months Ended |
Sep. 30, 2016 | |
Employee Benefit Plan [Abstract] | |
EMPLOYEE BENEFIT PLAN | NOTE 5 – EMPLOYEE BENEFIT PLAN The Company has a 401(k) profit sharing plan and trust for its employees. The Company matches 25% of employee contributions up to an annual maximum of $1,800 for 2016 and 2015. For the three months ended September 30, 2016 and 2015, the Company’s benefit plan contribution amounted to $47.6 thousand and $35.7 thousand, respectively. For the nine months ended September 30, 2016 and 2015, the Company’s benefit plan contribution amounted to $0.2 million and $0.1 million, respectively. The benefit plan contribution is recorded within general and administrative expenses on the accompanying condensed consolidated statements of income. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 6 – STOCKHOLDERS’ EQUITY Capital Stock The Company has a total of 201,000,000 authorized shares of capital stock, consisting of 1,000,000 shares of preferred stock, $0.0001 par value and 200,000,000 shares of common stock, $0.0001 par value. Stock and Warrant Repurchase Plan In November 2015, the Company’s Board of Directors approved a $20.0 million stock and warrant repurchase plan (“Repurchase Plan”) and in November 2016, the Board of Directors approved an increase of $15.0 million for a total of $35.0 million. This Repurchase Plan authorizes the Company to purchase from time to time the Company’s outstanding common stock and warrants through open market repurchases in compliance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended, and/or in privately negotiated transactions based on market and business conditions, applicable legal requirements and other factors. Any shares and warrants purchased will be retired. The Repurchase Plan has no time deadline and will continue until otherwise modified or terminated at the sole discretion of the Company’s Board of Directors at any time. In January 2016, the Company repurchased 1,967,445 warrants for $5.4 million and thus far has repurchased a total of 4,059,063 warrants for $10.9 million pursuant to the Repurchase Plan. 2016 CEO Share Allocation Plan On April 8, 2016, the Company’s Board of Directors adopted the “2016 CEO Share Allocation Plan,” and at the 2016 Annual Meeting of Stockholders on June 2, 2016, the Company’s stockholders approved the 2016 CEO Share Allocation Plan, pursuant to which the Company will grant awards covering up to 1,000,000 shares of the Company’s common stock in the form of restricted stock, restricted stock units, and/or other stock- or cash-based awards to eligible employees and other service providers of the Company. The 2016 CEO Share Allocation Plan was adopted in connection with a contribution agreement (the “Contribution Agreement”) that the Company entered into with Sven-Olof Lindblad (“Mr. Lindblad”), Chief Executive Officer and President of the Company, pursuant to which Mr. Lindblad will transfer up to 1,000,000 shares from his holdings of the Company’s common stock (i.e., an equivalent number of shares as is reserved for issuance under the 2016 CEO Share Allocation Plan) (the “Contribution Shares”) to the Company as a contribution to the capital of the Company. Mr. Lindblad will not receive any consideration in exchange for the Contribution Shares. However, as a condition to the contribution of any Contribution Shares, the Company must grant awards under the 2016 CEO Share Allocation Plan, such that the number of Contribution Shares that Mr. Lindblad actually contributes to the Company will equal the number of shares corresponding to awards granted under the plan. The contribution of the Contribution Shares by Mr. Lindblad to the Company will effectively reduce the number of shares of the Company’s common stock that are outstanding by the same number of shares that would be issued under the 2016 CEO Share Allocation Plan (or a lesser number in the event awards are settled in cash). Such contributions will be effective as of the date the Company grants corresponding awards under the 2016 CEO Share Allocation Plan. The administrator may amend, suspend or terminate the 2016 CEO Share Allocation Plan at any time. Restricted Shares and Restricted Share Units Restricted shares are shares of stock granted to an employee, non-employee director or other service providers for which sale is prohibited for a specified period of time. Restricted share units (“RSUs”) represent a promise to deliver shares to the employee, non-employee director or other service providers at a future date if certain vesting conditions are met. The difference between RSUs and restricted shares is primarily the timing of the delivery of the underlying shares. A company that grants RSUs does not deliver the shares to the employee, non-employee director or other service providers until the vesting conditions are met. Under the 2015 Plan, four non-employee directors were granted 26,640 restricted shares and one non-employee director was granted 6,660 RSUs on January 4, 2016. There were 6,660 restricted shares or RSUs granted to each non-employee director, which vest in three installments on August 8, 2016, 2017 and 2018 and are not subject to any performance-based conditions. Under the 2015 Plan, one non-employee director was granted 1,864 restricted shares on May 11, 2016. These restricted shares vest in three installments on August 8, 2016, 2017 and 2018 and are not subject to any performance-based conditions. Under the 2015 Plan, an employee was granted 90,000 restricted shares on May 26, 2016. These restricted shares vest in four installments on May 26, 2017, 2018, 2019 and 2020 and are not subject to any performance-based conditions. Under the 2015 Plan, five non-employee directors were granted 40,540 restricted shares and one non-employee director was granted 8,108 RSUs on August 8, 2016. There were 8,108 restricted shares or RSUs granted to each non-employee director, which vest in three installments on August 8, 2017, 2018 and 2019 and are not subject to any performance-based conditions. Under the 2015 Plan, an employee was granted 40,000 restricted shares on September 6, 2016. These restricted shares vest in four installments on September 6, 2017, 2018, 2019 and 2020 and are not subject to any performance-based conditions. The amortization of the restricted shares and RSUs was $0.1 million and $0.2 million for the three and nine months ended September 30, 2016, respectively. As of September 30, 2016, the unamortized value of restricted shares and RSUs was $1.9 million and is expected to be expensed over a period of 4.0 years. The following table is a summary of restricted stock and RSU activity under the Company’s 2015 Plan: Weighted Restricted Average Shares and Grant Date RSU’s Fair Value Restricted shares and RSUs awarded as of December 31, 2015 - $ - Granted 213,812 9.97 Vested (11,721 ) 11.20 Forfeited - - Restricted shares and RSUs awarded as of September 30, 2016 202,091 $ 9.90 Stock Options The fair value of stock options is amortized on a straight line basis over the requisite service periods of the respective awards. Stock-based compensation expense related to stock options was $1.2 million for the three months ended September 30, 2016 and 2015, respectively. Stock-based compensation expense related to stock options was $3.8 million and $3.6 million for the nine months ended September 30, 2016 and 2015, respectively. Stock compensation expense is included in general and administrative expenses on the accompanying condensed consolidated statements of income. As of September 30, 2016, the unamortized value of options was $6.9 million and is expected to be expensed over a weighted average period of 1.3 years. During January 2016, 638,223 option shares vested and were exercised. The option shares were issued using cashless transactions, approved by management, and were issued in exchange for the required exercise proceeds and payment of any related payroll withholding taxes. Using a weighted average fair value of $10.68 per share and an exercise price of $1.76 per share, 105,206 shares were withheld by the Company to provide the $1.1 million in exercise proceeds required for the transactions. In addition, 252,670 shares were withheld by the Company to provide the $2.7 million in proceeds required to pay the payroll withholding taxes for the transactions. The net balance of the option shares of 280,347 shares were issued as a result of the transactions. The following table is a summary of stock options activity under the Company’s legacy 2012 Incentive Stock Plan assumed in connection with the mergers and its 2015 Plan: Shares Weighted Average Exercise Price Weighted Average Contractual Life (Years) Aggregate Intrinsic Value Options outstanding as of December 31, 2015 2,849,071 $ 2.69 3.7 $ 23,992,814 Granted 220,000 9.63 Exercised (638,223 ) 1.76 Forfeited (300,000 ) 10.58 Options outstanding as of September 30, 2016 2,130,848 $ 2.57 3.1 $ 13,695,340 Vested and expected to vest after September 30, 2016 2,130,848 $ 2.57 3.1 $ 13,695,340 Exercisable as of December 31, 2015 - $ - Vested 638,223 1.76 Exercised (638,223 ) 1.76 Forfeited - - Exercisable as of September 30, 2016 - $ - |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | NOTE 7 – SEGMENT INFORMATION During the second quarter of 2016, the Company completed its acquisition of Natural Habitat. As a result of the acquisition, the Company updated its reporting information and its operating segments to add Natural Habitat as a separate operating and reporting segment. As of September 30, 2016, total assets for the Lindblad segment and Natural Habitat segment were $356.4 million and $45.5 million, respectively. As of September 30, 2016, the $28.0 million in goodwill and other intangibles on the accompanying condensed consolidated balance sheet were all related to the Natural Habitat segment. For the three and nine months ended September 30, 2016, tradename and customer list amortization of $0.2 million and $0.4 million, respectively, was related to the Natural Habitat segment. The Company evaluates the performance of its business segments based largely on tour revenues, operating income (loss), and Adjusted EBITDA results of the segments without allocating other income and expenses, net, income taxes, and interest expense, net. For the three and nine months ended September 30, 2016 and 2015, the following operating results were: For the Three Months Ended September 30, For the Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Tour revenues: Lindblad $ 56,175 $ 58,561 $ 165,936 $ 163,513 Natural Habitat 14,599 - 20,282 - Total tour revenues $ 70,774 $ 58,561 $ 186,218 $ 163,513 Operating income (loss): Lindblad $ 9,863 $ 5,759 $ 19,038 $ 16,143 Natural Habitat 306 - (488 ) - Total operating income $ 10,169 $ 5,759 $ 18,550 $ 16,143 |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding unaudited interim financial information. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Income, Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders’ Equity and Condensed Consolidated Statements of Cash Flows for the interim periods presented. Operating results for the interim periods presented are not necessarily indicative of the results of operations to be expected for the full year due to seasonality and other factors. Certain information and footnote disclosures normally included in the condensed consolidated financial statements in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. All intercompany balances and transactions have been eliminated in the accompanying unaudited condensed consolidated financial statements. Accordingly, these unaudited interim condensed consolidated financial statements and footnotes should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto for the year ended December 31, 2015 contained in the Annual Report on Form 10-K filed with the SEC on March 14, 2016. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements of the Company as of September 30, 2016 and December 31, 2015 included Lindblad Expeditions Holdings, Inc. and its consolidated subsidiaries. Natural Habitat’s balance sheet as of September 30, 2016 and results of operations for the period beginning May 5, 2016 and ending September 30, 2016 are included in the Company’s condensed consolidated financial statements. |
Reclassifications | Reclassifications Certain items in the condensed consolidated financial statements of the Company have been reclassified to conform to the 2016 classification. The reclassifications had no effect on previously reported results of operations or retained earnings. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, and also affect the amounts of revenues and expenses reported for each period. Actual results could differ from those which result from using such estimates. Management utilizes various estimates, including but not limited to determining the estimated lives of long-lived assets, determining the fair value of assets acquired and liabilities assumed in business combinations, the fair value of the Company’s common stock and related warrants, the valuation of securities underlying stock-based compensation, income tax expense, the valuation of deferred tax assets, the value of contingent consideration, and to assess its litigation, other legal claims and contingencies. The results of any changes in accounting estimates are reflected in the condensed consolidated financial statements in the period in which the changes become evident. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the period that they are determined to be necessary. |
Revenue Recognition | Revenue Recognition Tour revenues consist of guest ticket revenues recognized from the sale of guest tickets and other tour revenues from the sale of pre- and post-expedition excursions, hotel accommodations, land-based expeditions, air transportation to and from the ships, goods and services rendered onboard that are not included in guest ticket prices, trip insurance, and cancellation fees. Revenues from the sale of guest tickets and other tour revenues are recognized gross, as the Company has the primary obligation in the arrangement, has discretion in supplier selection and is involved in the determination of the service specifications. The Company’s tour guests remit deposits in advance of tour embarkation. Guest tour deposits consist of guest ticket revenues as well as revenues from the sale of pre- and post-expedition excursions, hotel accommodations, land-based expeditions, air transportation to and from the ships, and trip insurance. Guest tour deposits represent unearned revenues and are initially included in unearned passenger revenues in the condensed consolidated balance sheet when received. Guest deposits are subsequently recognized as tour revenues on the date of embarkation. Tour expeditions average ten days in duration. For tours of owned vessels in excess of ten days, where the tour days span a quarter, the Company recognizes revenue based upon expedition days earned. Guest cancellation fees are recognized as tour revenues at the time of the cancellation. Revenues from the sale of additional goods and services rendered onboard are recognized upon purchase. |
Earnings per Common Share | Earnings per Common Share Earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of common shares outstanding and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the dilutive incremental common shares issuable upon the exercise of stock options (if such option is an equity instrument, using the treasury stock method). For the three and nine months ended September 30, 2016, the Company determined, using the treasury method, there were 764,814 and 690,272 dilutive common shares, respectively, related to stock options. For the three and nine months ended September 30, 2015, the Company determined, using the treasury method, there were 1,451,922 and 730,028 dilutive common shares, respectively, related to stock options. As of September 30, 2016, there were 202,091 unvested restricted shares and restricted share units granted to non-employee directors and employees at a weighted-average value of $9.90 per share. The Company determined these shares were anti-dilutive and were not considered in the calculation of diluted weighted average shares outstanding. As of September 30, 2016, 12,040,937 warrants to purchase common stock at a price of $11.50 per share were outstanding. The Company determined these warrants were anti-dilutive and were not considered in the calculation of diluted weighted average shares outstanding. On July 8, 2015, as a result of the mergers, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805-40-45 and related to the reverse merger treatment and recapitalization, all historical weighted average common shares were adjusted by the exchange ratios established by the merger agreement. For the three and nine months ended September 30, 2016 and 2015, the Company calculated earnings per share in accordance with FASB ASC 260 and 805-40-45 as follows: (In thousands, except share and per share data) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Net income attributable to Lindblad for basic and diluted earnings per share $ 7,418 $ 4,416 $ 13,539 $ 20,184 Weighted average shares outstanding: Total weighted average shares outstanding, basic 45,776,443 45,004,393 45,639,608 44,814,354 Effect of dilutive securities: Assumed exercise of stock options, treasury method 764,814 1,451,922 690,272 730,028 Total weighted average shares outstanding, diluted 46,541,257 46,456,315 46,329,880 45,544,382 Weighted average shares outstanding Basic 45,776,443 45,004,393 45,639,608 44,814,354 Diluted 46,541,257 46,456,315 46,329,880 45,544,382 Earnings per share attributable to Lindblad Basic $ 0.16 $ 0.10 $ 0.30 $ 0.45 Diluted $ 0.16 $ 0.10 $ 0.29 $ 0.44 As of September 30, 2016, there were 45,968,480 shares outstanding. The Company is authorized to issue 200,000,000 shares of common stock, par value $0.0001, and 1,000,000 shares of preferred stock, par value $0.0001. The Company’s Board of Directors and stockholders approved a 2015 Long-Term Incentive Plan (the “2015 Plan”), which includes the authority to issue up to 2,500,000 shares of Lindblad’s common stock under the 2015 Plan. As of September 30, 2016, options to purchase an aggregate of 2,130,848 shares of the Company’s common stock with a weighted average exercise price of $2.57 per share were outstanding (including options assumed in the mergers) and 2,066,188 common shares were available for award under the 2015 Plan. In 2016, the Company’s Board of Directors and stockholders approved a new equity incentive plan (the “2016 CEO Share Allocation Plan”), which includes the authority to issue up to 1,000,000 shares of Lindblad’s common stock that are contributed to the Company by its CEO under the 2016 CEO Share Allocation Plan. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less, as well as deposits in financial institutions, to be cash and cash equivalents. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash in several financial institutions in the U.S. and other countries which, at times, may exceed the federally insured limits. Accounts held in the U.S. are guaranteed by the Federal Deposit Insurance Corporation up to certain limits. The Company has not experienced any losses in such accounts. As of September 30, 2016 and December 31, 2015, the Company’s cash held in financial institutions outside of the U.S. amounted to $6.8 million and $3.9 million, respectively. |
Restricted Cash and Marketable Securities | Restricted Cash and Marketable Securities Included in “Restricted cash and marketable securities” on the accompanying condensed consolidated balance sheets are restricted cash and marketable securities, consisting of six-month certificates of deposit and short-term investments. Restricted cash and marketable securities consist of the following: As of September 30, December 31, (In thousands) 2016 2015 Restricted cash and marketable securities: Credit negotiation and credit card processor reserves $ 5,030 $ 5,030 Federal Maritime Commission escrow 3,911 2,233 Certificates of deposit and other restricted securities 1,426 1,197 Total restricted cash and marketable securities $ 10,367 $ 8,460 The amounts held in restricted cash and marketable securities represent principally funds required to be held in certificates of deposit by certain vendors and regulatory agencies and are classified as restricted assets since such amounts cannot be used by the Company until the restrictions are removed by those vendors and regulatory agencies. Interest income is recognized when earned. The Company has classified marketable securities, principally money market funds, as trading securities which are recorded at market value. Unrealized gains and losses are included in current operations. Gains and losses on the disposition of securities are recognized by the specific identification method in the period in which they occur. In order to operate guest tour expedition vessels from U.S. ports, the Company is required to post a performance bond with the Federal Maritime Commission or escrow all unearned guest deposits plus an additional 10% in restricted accounts. To satisfy this requirement, the Company entered into an agreement with a financial institution to escrow all unearned guest revenues collected for sailings from U.S. ports. A $5.0 million cash reserve as of September 30, 2016 and December 31, 2015 is required for credit card deposits by third-party credit card processors. The above arrangements are included in restricted cash and marketable securities on the accompanying condensed consolidated balance sheets. Amounts in the escrow accounts include cash, certificates of deposit and marketable securities. Cost of these short-term investments approximates fair value. |
Inventories and Marine Operating Supplies | Inventories and Marine Operating Supplies Inventories consist primarily of gift shop merchandise and other items for resale and are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. Marine operating supplies consist primarily of fuel, provisions, spare parts, items required for maintenance, and supplies used in the operation of marine expeditions. Marine operating supplies are stated at the lower of cost or net realizable value. Cost is determined using the first-in first-out method. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization were computed using the straight line method over the estimated useful lives of the assets, as follows: Years Vessels and vessel improvements 15-25 Furniture, vehicles and equipment 5 Computer hardware and software 5 Leasehold improvements, including expedition sites and port facilities Shorter of lease term or related asset life The ship-based tour and expedition industry is very capital intensive and as of September 30, 2016 and December 31, 2015, the Company owned and operated six vessels and has two new coastal vessels under construction and one purchased vessel under renovation. Therefore, the Company has a capital program that it develops for the improvement of its vessels, expedition sites and for asset replacements in order to enhance the effectiveness and efficiency of its operations; comply with, or exceed all relevant legal and statutory requirements related to health, environment, safety, security and sustainability; and gain strategic benefits or provide newer improved product innovations to its guests. Vessel and site improvement costs that add value to the Company’s vessels and expedition sites, such as those discussed above, are capitalized to the vessels and site improvements and depreciated over the shorter of the improvements or the vessel’s estimated remaining useful life, while costs of repairs and maintenance, including minor improvement costs and drydock expenses, are charged to expense as incurred and included in other vessels operating expenses. Drydock costs primarily represent planned major maintenance activities that are incurred when a vessel is taken out of service for scheduled maintenance. For U.S. flagged ships, the statutory requirement is an annual docking and U.S. Coast Guard inspections, normally conducted in drydock. Internationally flagged ships have scheduled dockings approximately every 12 months, for a period of up to three to six weeks. For the nine months ended September 30, 2016, the Company had $50.6 million in capital expenditures, which includes capitalized interest, added to property and equipment, net which included $26.9 million for the purchase and renovation of its National Geographic Endeavour II Via Australis National Geographic Endeavour II |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets include the cost of the acquired business in excess of the fair value of the tangible net assets recorded in connection with the acquisition of Natural Habitat (see Note 1 – Business). SFAS No. 142, “ Goodwill and Other Intangible Assets The Company has recorded book goodwill for which there is no tax basis and is therefore not tax deductible. Other intangible assets include tradenames and customer lists. Tradenames are words, symbols, or other devices used in trade or business to indicate the source of products and to distinguish it from other products and are registered with government agencies and are protected legally by continuous use in commerce. Customer lists are established relationships with existing customers that resulted in repeat purchases and customer loyalty. Based on the Company’s analysis, amortization of the tradenames and customer lists was computed using the estimated useful lives of 15 and 5 years, respectively. Upon the occurrence of a triggering event, the assessment of possible impairment of the Company’s other intangible assets is based on the Company’s ability to recover the carrying value of its asset, which is determined by using the asset’s estimated undiscounted future cash flows. If these estimated undiscounted future cash flows are less than the carrying value of the asset, an impairment charge is recognized for the excess, if any, of the asset’s carrying value over its estimated fair value. A significant amount of judgment is required in estimating the future cash flows and fair values of its tradenames and customer lists. As of September 30, 2016, goodwill and other intangible assets, net of amortization, consisted of $22.1 million in goodwill, $3.0 million in customer lists and $2.8 million in tradenames. |
Long-Lived Assets | Long-Lived Assets The Company reviews its long-lived assets, principally its vessels and operating rights, for impairment whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Upon the occurrence of a triggering event, the assessment of possible impairment is based on the Company’s ability to recover the carrying value of its asset, which is determined by using the asset’s estimated undiscounted future cash flows. If these estimated undiscounted future cash flows are less than the carrying value of the asset, an impairment charge is recognized for the excess, if any, of the asset’s carrying value over its estimated fair value. A significant amount of judgment is required in estimating the future cash flows and fair values of its vessels and operating rights. As of September 30, 2016 and December 31, 2015, there was no triggering event and the Company did not record an impairment of its long-lived assets. In the first quarter of 2016, the Company reviewed the remaining useful life of the National Geographic Endeavour National Geographic Endeavour II National Geographic Endeavour’s National Geographic Endeavour |
Fair Value Measurements and Disclosure | Fair Value Measurements and Disclosure The Company applies ASC 820, “Fair Value Measurements and Disclosures,” which expands disclosures for assets and liabilities that are measured and reported at fair value on a recurring basis. Fair value is defined as an exit price, representing the amount that would be received upon the sale of an asset or payment to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 Quoted market prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at measurement date. Level 2 Quoted market prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable, either directly or indirectly. Fair value is determined through the use of models or other valuation methodologies. Level 3 Significant unobservable inputs for assets or liabilities that cannot be corroborated by market data. Fair value is determined by the reporting entity’s own assumptions utilizing the best information available, and includes situations where there is little market activity for the investment. The carrying amounts of cash and cash equivalents, accounts payable and accrued expenses, approximate fair value due to the short-term nature of these instruments. The carrying value of long-term debt approximates fair value given that the terms of the agreement were comparable to the market as of September 30, 2016. As of September 30, 2016 and December 31, 2015, the Company had no other liabilities that were measured at fair value on a recurring basis. The asset’s or liability’s fair value measurement within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. Level 3 financial liabilities consist of obligations for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. Changes in fair value measurements categorized within Level 3 of the fair value hierarchy are analyzed each period based on changes in estimates or assumptions and recorded as appropriate. |
Income Taxes | Income Taxes The Company is subject to income taxes in both the U.S. and the non-U.S. jurisdictions in which it operates. Significant management judgement is required in projecting ordinary income to determine the Company’s estimated effective tax rate. The Company accounts for income taxes using the asset and liability method, under which it recognizes deferred income taxes for the tax consequences attributable to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities, as well as for tax loss carryforwards and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. The Company provides a valuation allowance against deferred tax assets if, based upon the weight of available evidence, the Company does not believe it is “more-likely-than-not” that some or all of the deferred tax assets will be realized. The Company will continue to evaluate the deferred tax asset valuation allowance balances in all of our foreign and U.S. companies to determine the appropriate level of valuation allowances. The Company is subject to income taxes in both the U.S. and the non-U.S. jurisdictions in which it operates. The Company regularly assesses the potential outcome of current and future examinations in each of the taxing jurisdictions when determining the adequacy of the provision for income taxes. The Company has only recorded financial statement benefits for tax positions which it believes reflect the “more-likely-than-not” criteria of FASB’s authoritative guidance on accounting for uncertainty in income taxes, and it has established income tax reserves in accordance with this guidance where necessary. As of September 30, 2016 and December 31, 2015, the Company had a liability for unrecognized tax benefits of $0.7 million and $0.7 million, respectively, which was included in other long-term liabilities on the Company’s condensed consolidated balance sheets. The guidance also discusses the classification of related interest and penalties on income taxes. The Company’s policy is to record interest and penalties on uncertain tax positions as a component of income tax expense. The Company is subject to tax audits in all jurisdictions for which it files tax returns. Tax audits by their very nature are often complex and can require several years to complete. Currently, there are no U.S. federal, state or foreign jurisdiction tax audits pending. The Company’s corporate U.S. federal and state tax returns from 2013 to 2015 remain subject to examination by tax authorities and the Company’s foreign tax returns from 2011 to 2014 remain subject to examination by tax authorities. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for equity instruments issued to employees, non-employee directors or other service providers in accordance with accounting guidance that requires that awards are recorded at their fair value on the date of grant and are amortized over the service period of the award. The Company recognizes compensation costs on a straight line basis over the requisite service period of the award, which is generally the vesting term of the equity instrument issued. To the extent that an equity award later becomes eligible to be put back to the Company, then the fair value of that award or those exercised shares are transferred out of additional paid-in-capital to a liability account and is thereafter marked-to-market annually to fair value. |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest The Company, in connection with the acquistion of Natural Habitat, recognized a noncontrolling interest and measured it at fair value on the acquisition date according to ASC 805-20-30-1. The Company recognized the noncontrolling interest as a redeemable noncontrolling interest to the extent that the risks and rewards of ownership substantially remain with the noncontrolling interest. Mr. Bressler’s “noncontrolling interest” in the remaining 19.9% interest in Natural Habitat not owned by the Company is subject to a put/call arrangement. The arrangement between the Company and Mr. Bressler was established in order to provide a formal exit opportunity for Mr. Bressler and a path to 100% ownership for the Company. Mr. Bressler has a put option under certain conditions, subject to providing notice by October 31, 2020, that enables him, but does not obligate him, to sell his remaining interest in Natural Habitat on December 31, 2020. The Company has a call option, but not an obligation, with an expiration of December 31, 2025, for which it can buy Mr. Bressler’s remaining interest at a similar fair value measure as Mr. Bressler’s put option. These rights to purchase or sell the noncontrolling interest may be at a fixed or variable price, or at fair value, and may be exercisable on a fixed date or any time at some point in the future. The existence of these rights impacts (1) whether separate assets or liabilities should be recognized for these rights, (2) the classification of any minority ownership as a liability, equity or redeemable noncontrolling interest, and (3) the amount of earnings recognized in the financial statements. As the purchase prices indicated similar fair value measures, the put/call arrangement had been struck at fair value and each party is in agreement that the valuation is indicative of fair value, the asset and liability position would be netted and it is expected that the resulting value would be immaterial given the structure of the arrangement. As Mr Bressler is responsible for the management of Natural Habitat, the risks and rewards of ownership substantially remain with the noncontrolling interest. The existence of the put/call arrangement does not indicate a separate obligation or liability for either party. Based on the existence of redemptive rights by Mr. Bressler, and the existence of risks and rewards of ownership, the noncontrolling interest was recorded separately as a redeemable noncontrolling interest. The put right is not redeemable unless notice is provided as per the requirements of the agreement. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In October 2016, FASB issued Accounting Standards Update (“ASU”) No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”. The amendment was issued to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. FASB decided that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this Update eliminate the exception for an intra-entity transfer of an asset other than inventory. Public business entities should apply the guidance to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted. The Company will evaluate the effects, if any, that adoption of this ASU will have on its condensed consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, “Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments” (Topic 230). ASU No. 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. For public business entities, this ASU is effective for financial statements issued for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company adopted this ASU in the third quarter of 2016 and its adoption did not have a material impact to the Company’s condensed consolidated financial statements. In May 2016, FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers – Narrow-Scope Improvements and Practical Expedients” (Topic 606). ASU No. 2016-12 addresses matters raised by the FASB-International Accounting Standards Board Joint Transition Resource Group for Revenue Recognition regarding an entity’s implementation of and transition to Topic 606. The amendments do not change the core principle of the guidance in Topic 606. Instead, the FASB provides clarification regarding specific issues, as follows: (1) satisfying the collectability and other criteria for identifying a contract, (2) presentation of sales taxes and other similar taxes collected from customers, (3) noncash consideration, and (4) transitional guidance regarding modified contracts, completed contracts and accounting change disclosures. Public business entities should apply the guidance similar to Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company will evaluate the effects, if any, that adoption of this ASU will have on its condensed consolidated financial statements. In April 2016, FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers – Identifying Performance Obligations and Licensing” (Topic 606). The amendments clarify two aspects of ASU No. 2014-09, “Revenue from Contracts with Customers,” by providing (1) guidance for identifying performance obligations and (2) licensing implementation guidance. Public business entities should apply the guidance similar to Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company will evaluate the effects, if any, that adoption of this ASU will have on its condensed consolidated financial statements. In March 2016, FASB issued ASU No. 2016-09, “Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting” (Topic 718). The amendments in this ASU are to significantly reduce the complexity and cost of accounting for excess tax benefits and tax deficiencies related to employee share-based payment transactions, which include restricted stock and stock options. Also, ASU No. 2016-09 requires an entity to run excess tax benefits and deficiencies through its income statement, which in effect eliminates the concept of additional paid-in capital. For public business entities, the amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, including interim periods within those annual periods. The Company will evaluate the effects, if any, that adoption of this ASU will have on its condensed consolidated financial statements. In March 2016, FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers – Principal versus Agent Considerations (Reporting Gross versus Net)” (Topic 606). The amendments clarify implementation guidance of ASU No. 2014-09, “Revenue from Contracts with Customers,” by improving the operability and understandability of principal versus agent considerations. Public business entities should apply the guidance similar to Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company will evaluate the effects, if any, that adoption of this ASU will have on its condensed consolidated financial statements. In August 2015, FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers – Deferral of the Effective Date” (Topic 606). The amendments in this ASU defer the effective date of ASU No. 2014-09, “Revenue from Contracts with Customers,” for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company will evaluate the effects, if any, that adoption of this ASU will have on its condensed consolidated financial statements. In May 2014, FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606), which supersedes the revenue recognition requirements (Topic 605), “Revenue Recognition,” and most industry-specific guidance. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The amendments in the ASU must be applied using one of two retrospective methods and are effective for annual and interim periods beginning after December 15, 2016. Early adoption is not permitted. The Company will evaluate the effects, if any, that adoption of this ASU will have on its condensed consolidated financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards upon adoption would have a material effect on the accompanying condensed consolidated financial statements. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of calculated earnings per share | (In thousands, except share and per share data) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Net income attributable to Lindblad for basic and diluted earnings per share $ 7,418 $ 4,416 $ 13,539 $ 20,184 Weighted average shares outstanding: Total weighted average shares outstanding, basic 45,776,443 45,004,393 45,639,608 44,814,354 Effect of dilutive securities: Assumed exercise of stock options, treasury method 764,814 1,451,922 690,272 730,028 Total weighted average shares outstanding, diluted 46,541,257 46,456,315 46,329,880 45,544,382 Weighted average shares outstanding Basic 45,776,443 45,004,393 45,639,608 44,814,354 Diluted 46,541,257 46,456,315 46,329,880 45,544,382 Earnings per share attributable to Lindblad Basic $ 0.16 $ 0.10 $ 0.30 $ 0.45 Diluted $ 0.16 $ 0.10 $ 0.29 $ 0.44 |
Schedule of restricted cash and marketable securities | As of September 30, December 31, (In thousands) 2016 2015 Restricted cash and marketable securities: Credit negotiation and credit card processor reserves $ 5,030 $ 5,030 Federal Maritime Commission escrow 3,911 2,233 Certificates of deposit and other restricted securities 1,426 1,197 Total restricted cash and marketable securities $ 10,367 $ 8,460 |
Schedule of estimated useful lives of assets | Years Vessels and vessel improvements 15-25 Furniture, vehicles and equipment 5 Computer hardware and software 5 Leasehold improvements, including expedition sites and port facilities Shorter of lease term or related asset life |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Long-Term Debt [Abstract] | |
Schedule of long-term debt instruments | As of September 30, 2016 December 31, 2015 Discount Discount and and Deferred Balance, Deferred Balance, Financing net of Financing net of (In thousands) Principal Costs, net discount Principal Costs, net discount Note payable $ 2,525 $ - $ 2,525 $ - $ - $ - Credit Facility 172,813 (9,568 ) 163,245 174,125 (9,682 ) 164,443 Total long-term debt 175,338 (9,568 ) 165,770 174,125 (9,682 ) 164,443 Less current portion (1,750 ) - (1,750 ) (1,750 ) - (1,750 ) Total long-term debt, non-current $ 173,588 $ (9,568 ) $ 164,020 $ 172,375 $ (9,682 ) $ 162,693 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
Schedule of future minimum payments for charter agreements | For the Years Ended December 31, Amount (In thousands) 2016 (three months) $ 2,724 2017 8,793 2018 6,154 2019 1,482 Total $ 19,153 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity [Abstract] | |
Summary of restricted stock and RSU activity | Weighted Restricted Average Shares and Grant Date RSU’s Fair Value Restricted shares and RSUs awarded as of December 31, 2015 - $ - Granted 213,812 9.97 Vested (11,721 ) 11.20 Forfeited - - Restricted shares and RSUs awarded as of September 30, 2016 202,091 $ 9.90 |
Summary of incentive stock plan activity | Shares Weighted Average Exercise Price Weighted Average Contractual Life (Years) Aggregate Intrinsic Value Options outstanding as of December 31, 2015 2,849,071 $ 2.69 3.7 $ 23,992,814 Granted 220,000 9.63 Exercised (638,223 ) 1.76 Forfeited (300,000 ) 10.58 Options outstanding as of September 30, 2016 2,130,848 $ 2.57 3.1 $ 13,695,340 Vested and expected to vest after September 30, 2016 2,130,848 $ 2.57 3.1 $ 13,695,340 Exercisable as of December 31, 2015 - $ - Vested 638,223 1.76 Exercised (638,223 ) 1.76 Forfeited - - Exercisable as of September 30, 2016 - $ - |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Information [Abstract] | |
Summary of operating results for the business segments | For the Three Months Ended September 30, For the Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Tour revenues: Lindblad $ 56,175 $ 58,561 $ 165,936 $ 163,513 Natural Habitat 14,599 - 20,282 - Total tour revenues $ 70,774 $ 58,561 $ 186,218 $ 163,513 Operating income (loss): Lindblad $ 9,863 $ 5,759 $ 19,038 $ 16,143 Natural Habitat 306 - (488 ) - Total operating income $ 10,169 $ 5,759 $ 18,550 $ 16,143 |
Business (Details)
Business (Details) - USD ($) $ / shares in Units, $ in Millions | May 04, 2016 | Jul. 08, 2015 | Sep. 30, 2016 |
Business (Textual) | |||
Options to purchase common stock | 2,130,848 | ||
Weighted average exercise price | $ 2.57 | ||
Lindblad Expeditions Holdings, Inc [Member] | Capitol Acquisition Corp. II (''Capitol'') [Member] | |||
Business (Textual) | |||
Consideration for former Lindblad stockholders (cash) | $ 90 | ||
Consideration for former Lindblad stockholders (shares) | 20,017,787 | ||
Options to purchase common stock | 3,821,696 | ||
Weighted average exercise price | $ 1.76 | ||
Lindblad Expeditions Holdings, Inc [Member] | Natural Habitat Acquisition [Member] | |||
Business (Textual) | |||
Ownership interest, description | The Company acquired an 80.1% ownership interest. | ||
Total purchase price consideration | $ 20 | ||
Cash and non-cash consideration | 14.8 | ||
Long-term debt | 2.5 | ||
Lindblad restricted shares | $ 2.7 | ||
Restricted shares | 264,208 | ||
Acquisition of current assets | $ 14.5 | ||
Property and equipment | 2.1 | ||
Goodwill and other intangible assets | 28.3 | ||
Accounts payable and accrued expenses | 2.5 | ||
Unearned passenger revenues | 15 | ||
Deferred tax liabilities | 2.4 | ||
Noncontrolling interest | $ 5 | ||
Percentage of noncontrolling interest | 19.90% |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Summary of Significant Accounting Policies [Line Items] | ||||
Net income attributable to Lindblad for basic and diluted earnings per share | $ 7,418 | $ 4,416 | $ 13,539 | $ 20,184 |
Weighted average shares outstanding: | ||||
Total weighted average shares outstanding, basic | 45,776,443 | 45,004,393 | 45,639,608 | 44,814,354 |
Effect of dilutive securities: | ||||
Assumed exercise of stock options, treasury method | 764,814 | 1,451,922 | 690,272 | 730,028 |
Total weighted average shares outstanding, diluted | 46,541,257 | 46,456,315 | 46,329,880 | 45,544,382 |
Weighted average shares outstanding | ||||
Basic | 45,776,443 | 45,004,393 | 45,639,608 | 44,814,354 |
Diluted | 46,541,257 | 46,456,315 | 46,329,880 | 45,544,382 |
Earnings per share attributable to Lindblad | ||||
Basic | $ 0.16 | $ 0.10 | $ 0.30 | $ 0.45 |
Diluted | $ 0.16 | $ 0.10 | $ 0.29 | $ 0.44 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Restricted cash and marketable securities: | ||
Total restricted cash and marketable securities | $ 10,367 | $ 8,460 |
Certificates of deposit and other restricted securities [Member] | ||
Restricted cash and marketable securities: | ||
Total restricted cash and marketable securities | 1,426 | 1,197 |
Federal Maritime Commission escrow [Member] | ||
Restricted cash and marketable securities: | ||
Total restricted cash and marketable securities | 3,911 | 2,233 |
Credit negotiation and credit card processor reserves [Member] | ||
Restricted cash and marketable securities: | ||
Total restricted cash and marketable securities | $ 5,030 | $ 5,030 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Details 2) | 9 Months Ended |
Sep. 30, 2016 | |
Vessels and vessel improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 25 years |
Vessels and vessel improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 15 years |
Furniture, vehicles and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Computer hardware and software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Leasehold improvements, including expedition sites and port facilities [Member] | |
Property, Plant and Equipment [Line Items] | |
Leasehold improvements, including expedition sites and port facilities | Shorter of lease term or related asset life |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Summary of Significant Accounting Policies (Textual) | |||||
Common stock, shares outstanding | 45,968,480 | 45,968,480 | 45,224,881 | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | ||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Options to purchase common stock | 2,130,848 | 2,130,848 | |||
Weighted average exercise price | $ 2.57 | $ 2.57 | |||
Cash held in financial institutions outside of the U.S. | $ 6.8 | $ 6.8 | $ 3.9 | ||
Cash reserve | 5 | $ 5 | 5 | ||
Number of vessels, description | The Company owned and operated six vessels and has two new coastal vessels under construction and one purchased vessel under renovation | ||||
Unrecognized tax benefits | 0.7 | $ 0.7 | $ 0.7 | ||
Goodwill | $ 22.1 | $ 22.1 | |||
Performance bond, Description | The Company is required to post a performance bond with the Federal Maritime Commission or escrow all unearned guest deposits plus an additional 10% in restricted accounts. | ||||
Expected ownership for the Company | 100.00% | 100.00% | |||
Subsidiaries [Member] | Natural Habitat Acquisition [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Percentage of noncontrolling interest | 19.90% | 19.90% | |||
Trade Names [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Intangible assets, net of amortization | $ 2.8 | $ 2.8 | |||
Property and equipment, estimated useful life | 15 years | ||||
Customer Lists [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Intangible assets, net of amortization | $ 3 | $ 3 | |||
Property and equipment, estimated useful life | 5 years | ||||
Stock options [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Dilutive potential common shares | 764,814 | 1,451,922 | 690,272 | 730,028 | |
Restricted Stock [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Number of unvested, shares | 202,091 | 202,091 | |||
Weighted average exercise price, Granted | $ 9.90 | ||||
National Geographic Endeavour II [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Capital expenditures | $ 26.9 | ||||
Two new build coastal vessels [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Capital expenditures | $ 20.1 | ||||
2015 Long-Term Incentive Plan [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Issuance of maximum shares of common stock approved by Board of directors and stockholders | shares | 2,500,000 | 2,500,000 | |||
Common shares were available for award | 2,066,188 | 2,066,188 | |||
2016 CEO Share Allocation Plan [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Issuance of maximum shares of common stock approved by Board of directors and stockholders | shares | 1,000,000 | 1,000,000 | |||
Property and equipment [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Capital expenditures | $ 50.6 | ||||
Capitalized interest | $ 0.9 | ||||
Warrant [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Weighted average exercise price | $ 11.50 | $ 11.50 | |||
Number of warrants issue to purchase common stock outstanding | 12,040,937 | 12,040,937 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Principal, Total long-term debt | $ 175,338 | $ 174,125 |
Discount and Deferred Financing Costs net, Total long-term debt | (9,568) | (9,682) |
Balance, net of discount, Total long-term debt | 165,770 | 164,443 |
Principal, Less current portion | (1,750) | (1,750) |
Discount and Deferred Financing Costs net, Less current portion | ||
Balance, net of discount, less current portion | (1,750) | (1,750) |
Principal, Total long-term debt, non-current | 173,588 | 172,375 |
Discount and Deferred Financing Costs net, Total long-term debt, non-current | (9,568) | (9,682) |
Balance, net of discount, Total long-term debt, non-current | 164,020 | 162,693 |
Note payable [Member] | ||
Debt Instrument [Line Items] | ||
Principal, Total long-term debt | 2,525 | |
Discount and Deferred Financing Costs net, Total long-term debt | ||
Balance, net of discount, Total long-term debt | 2,525 | |
Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal, Total long-term debt | 172,813 | 174,125 |
Discount and Deferred Financing Costs net, Total long-term debt | (9,568) | (9,682) |
Balance, net of discount, Total long-term debt | $ 163,245 | $ 164,443 |
Long-Term Debt (Details Textual
Long-Term Debt (Details Textual) - USD ($) $ in Thousands | May 04, 2016 | Mar. 07, 2016 | Jul. 08, 2015 | May 08, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Long-Term Debt (Textual) | ||||||||
Interest rate | 5.50% | 5.50% | ||||||
Amortization of debt discount and deferred financing costs | $ 500 | $ 500 | $ 2,582 | $ 2,733 | ||||
Letter of Credit Subfacility [Member] | ||||||||
Long-Term Debt (Textual) | ||||||||
Deferred financing costs | $ 11,000 | |||||||
U.S. Term loan [Member] | ||||||||
Long-Term Debt (Textual) | ||||||||
Maximum borrowing capacity | 155,000 | |||||||
Note payable [Member] | ||||||||
Long-Term Debt (Textual) | ||||||||
Unsecured promissory note | $ 2,500 | |||||||
promissory not interest rate | 1.44% | |||||||
Debt mature date | Dec. 31, 2020 | |||||||
Credit Agreement [Member] | ||||||||
Long-Term Debt (Textual) | ||||||||
Maximum borrowing capacity | $ 175,000 | $ 150,000 | ||||||
Description of interest rate | The Loans bear interest at a rate based on an adjusted ICE Benchmark administration LIBO Rate (subject to a floor of 1.00%) plus a spread of 4.50%. | The loans incurred interest at a rate based on an adjusted ICE Benchmark administration LIBO Rate (subject to a floor of 1.00%) plus a spread of 5.50%. | ||||||
Credit Agreement [Member] | U.S. Term loan [Member] | ||||||||
Long-Term Debt (Textual) | ||||||||
Maximum borrowing capacity | $ 130,000 | |||||||
Outstanding principal amount | $ 20,000 | |||||||
Interest rate | 5.50% | |||||||
Increase in line of credit facility | $ 25,000 | |||||||
Credit facility, Expiration date | May 8, 2021 | |||||||
Restated Credit Facility [Member] | ||||||||
Long-Term Debt (Textual) | ||||||||
Secured debt | $ 175,000 | |||||||
Restated Credit Facility [Member] | Revolving loan [Member] | ||||||||
Long-Term Debt (Textual) | ||||||||
Credit facility, Expiration date | May 8, 2020 | |||||||
Restated Credit Facility [Member] | Term Loan [Member] | ||||||||
Long-Term Debt (Textual) | ||||||||
Description of interest rate | The Loans will continue to bear interest at an adjusted ICE Benchmark administration LIBO Rate (subject to a floor of 1.00%) plus a spread of 4.50%. Borrowings under the Revolving Credit Facility will bear interest at an adjusted ICE Benchmark administration LIBO Rate plus a spread of 4.00%, or, at the option of the Company, an alternative base rate plus a spread of 3.00%. The Company is also required to pay a 0.50% annual commitment fee on undrawn amounts under the Revolving Credit Facility. | |||||||
Restated Credit Facility [Member] | Incremental Revolving Credit Facility [Member] | ||||||||
Long-Term Debt (Textual) | ||||||||
Secured debt | $ 45,000 | |||||||
Restated Credit Facility [Member] | Letter of Credit Subfacility [Member] | ||||||||
Long-Term Debt (Textual) | ||||||||
Secured debt | $ 5,000 |
Commitments and Contingencies27
Commitments and Contingencies (Details) - Charter Commitments [Member] $ in Thousands | Sep. 30, 2016USD ($) |
Summary of future minimum payments | |
2016 (three months) | $ 2,724 |
2,017 | 8,793 |
2,018 | 6,154 |
2,019 | 1,482 |
Total | $ 19,153 |
Commitments and Contingencies28
Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 02, 2015 | |
Commitments and Contingencies (Textual) | ||||||
Rent expense | $ 0.3 | $ 0.2 | $ 0.8 | $ 0.7 | ||
Risk of loss or damage, Description | The Company may terminate the applicable Agreements in the event the Builder fails to deliver the vessel within 180 days of the applicable due date or the Builder becomes insolvent or otherwise bankrupt. | |||||
Nichols Brothers Boat Builders [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Vessel Construction Agreements, Description | On December 2, 2015, the Company entered into two separate Vessel Construction Agreements, (collectively, the "Agreements") with Ice Floe, LLC, a Washington limited liability company doing business as Nichols Brothers Boat Builders (the "Builder"). The Agreements provide for the Builder to construct two new 236-foot 100-passenger cruise vessels at a purchase price of $48.0 million and $46.8 million, respectively, payable monthly based on the value of the work performed through the end of the preceding month. As of September 30, 2016, the Company has spent a total of $30.2 million for the construction of these two coastal vessels. | |||||
Cruise vessels at a purchase price | 30.2 | $ 30.2 | ||||
Nichols Brothers Boat Builders [Member] | Cruise Vessels One [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Cruise vessels at a purchase price | $ 48 | |||||
Nichols Brothers Boat Builders [Member] | Cruise Vessels Two [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Cruise vessels at a purchase price | $ 46.8 | |||||
National Geographic Society [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Balance outstanding | 1.4 | 1.4 | $ 1.3 | |||
National Geographic Society [Member] | Royalty Agreements [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Royalty payment | 1.2 | $ 1.3 | 3.6 | $ 3.7 | ||
National Geographic Endeavour II [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Capital expenditure for purchase and renovation | 26.9 | |||||
World Wildlife Fund [Member] | Royalty Agreements [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Royalty payment | $ 0.2 | $ 0.3 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Benefit Plan (Textual) | ||||
Percentage of employer match of employee contributions | 25.00% | 25.00% | ||
Annual maximum amount of Company match per employee | $ 1,800 | $ 1,800 | ||
Benefit plan contribution recorded with general and administrative expenses | $ 47,600 | $ 35,700 | $ 200,000 | $ 100,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Restricted stock and RSU [Member] | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Shares and RSU's, Beginning Balance | shares | |
Restricted Shares and RSU's, Granted | shares | 213,812 |
Restricted Shares and RSU's, Vested | shares | (11,721) |
Restricted Shares and RSU's, Forfeited | shares | |
Restricted Shares and RSU's, Ending Balance | shares | 202,091 |
Weighted Average Grant Date Fair Value, Restricted shares outstanding, Beginning Balance | $ / shares | |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 9.97 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 11.20 |
Weighted average Grant Date Fair Value, Forfeited | $ / shares | |
Weighted Average Grant Date Fair Value, Restricted shares outstanding, Ending Balance | $ / shares | $ 9.90 |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) - Stock options [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding, Beginning Balance | 2,849,071 | |
Options outstanding, Granted | 220,000 | |
Options outstanding, Exercised | (638,223) | |
Options outstanding, Forfeited | (300,000) | |
Shares outstanding, Ending Balance | 2,130,848 | 2,849,071 |
Options outstanding, Vested and expected to vest | 2,130,848 | |
Weighted Average Exercise Price, Beginning Balance | $ 2.69 | |
Weighted Average Exercise Price, Granted | 9.63 | |
Weighted Average Exercise Price, Exercised | 1.76 | |
Weighted Average Exercise Price, Forfeited | 10.58 | |
Weighted Average Exercise Price, Ending Balance | 2.57 | $ 2.69 |
Weighted Average Exercise Price, Vested and expected to vest | $ 2.57 | |
Weighted Average Contractual Life (Years), Outstanding | 3 years 1 month 6 days | 3 years 8 months 12 days |
Weighted Average Contractual Life (Years), Outstanding, Vested and expected to vest | 3 years 1 month 6 days | |
Aggregate Intrinsic Value, Beginning Balance | $ 23,992,814 | |
Aggregate Intrinsic Value, Ending Balance | 13,695,340 | $ 23,992,814 |
Aggregate Intrinsic Value, Vested and expected to vest | $ 13,695,340 | |
Exercisable, Beginning Balance | ||
Exercisable, Vested | 638,223 | |
Exercisable, Exercised | (638,223) | |
Exercisable, Forfeited | ||
Exercisable, Ending Balance | ||
Weighted Average Exercise Price, Exercisable, Beginning Balance | ||
Weighted Average Exercise Price, Vested | 1.76 | |
Weighted Average Exercise Price, Exercised | 1.76 | |
Weighted Average Exercise Price, Exercisable, Ending Balance |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) $ / shares in Units, $ in Millions | Nov. 30, 2016USD ($) | Sep. 06, 2016installmentsshares | Aug. 08, 2016installmentsshares | May 11, 2016installmentsshares | Jan. 04, 2016installmentsshares | May 26, 2016installmentsshares | Jan. 31, 2016USD ($)$ / sharesshares | Nov. 30, 2015USD ($) | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($) | Dec. 31, 2015$ / sharesshares |
Stockholders Equity (Textual) | |||||||||||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||
Preferred stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||
Warrant repurchase | $ | $ 5.4 | $ 10.9 | |||||||||||
Warrant repurchase, shares | 1,967,445 | 4,059,063 | |||||||||||
Expected to be expensed period | 4 years | ||||||||||||
Total common and preferred shares, shares authorized | 201,000,000 | 201,000,000 | 201,000,000 | ||||||||||
Board of Directors [Member] | |||||||||||||
Stockholders Equity (Textual) | |||||||||||||
Warrant repurchase | $ | $ 20 | $ 35 | |||||||||||
Subsequent Event [Member] | Board of Directors [Member] | |||||||||||||
Stockholders Equity (Textual) | |||||||||||||
Warrant repurchase | $ | $ 15 | ||||||||||||
Restricted Shares and Restricted Share Units [Member] | |||||||||||||
Stockholders Equity (Textual) | |||||||||||||
Restricted shares expense | $ | $ 0.1 | 0.2 | |||||||||||
Unamortized value | $ | $ 1.9 | $ 1.9 | |||||||||||
Common Stock [Member] | |||||||||||||
Stockholders Equity (Textual) | |||||||||||||
Shares, exercised | 638,223 | ||||||||||||
Shares vested | 638,223 | ||||||||||||
Fair value for exercise proceeds | $ / shares | $ 10.68 | ||||||||||||
Exercise price | $ / shares | $ 1.76 | ||||||||||||
Number of shares required exercise proceeds | 105,206 | ||||||||||||
Value of shares required exercise | $ | $ 1.1 | ||||||||||||
Shares transferred to pay for payroll withholding taxes, shares | 252,670 | ||||||||||||
Shares transferred to pay for payroll withholding taxes, value | $ | $ 2.7 | ||||||||||||
Net balance of option issued | 280,347 | ||||||||||||
2015 Plan [Member] | Restricted Shares and Restricted Share Units [Member] | |||||||||||||
Stockholders Equity (Textual) | |||||||||||||
Granted, shares | 26,640 | ||||||||||||
Number of installments | installments | 3 | 3 | |||||||||||
Restricted shares granted to each director, Shares | 8,108 | 6,660 | |||||||||||
2015 Plan [Member] | Restricted Stock [Member] | |||||||||||||
Stockholders Equity (Textual) | |||||||||||||
Granted, shares | 40,000 | 40,540 | 1,864 | 90,000 | |||||||||
Number of installments | installments | 3 | 3 | 4 | ||||||||||
2016 Plan [Member] | Restricted Stock [Member] | |||||||||||||
Stockholders Equity (Textual) | |||||||||||||
Shares available for grant | 1,000,000 | 1,000,000 | |||||||||||
Stock options [Member] | |||||||||||||
Stockholders Equity (Textual) | |||||||||||||
Options related stock based compensation expense | $ | $ 1.2 | $ 1.2 | $ 3.8 | $ 3.6 | |||||||||
Unamortized value | $ | $ 6.9 | $ 6.9 | |||||||||||
Expected to be expensed period | 1 year 3 months 18 days |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Tour revenues | $ 70,774 | $ 58,561 | $ 186,218 | $ 163,513 |
Operating income | 10,169 | 5,759 | 18,550 | 16,143 |
Lindblad [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Tour revenues | 56,175 | 58,561 | 165,936 | 163,513 |
Operating income | 9,863 | 5,759 | 19,038 | 16,143 |
Natural Habitat [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Tour revenues | 14,599 | 20,282 | ||
Operating income | $ 306 | $ (488) |
Segment Information (Details Te
Segment Information (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Segment Information (Textual) | |||
Assets | $ 401,865 | $ 401,865 | $ 381,613 |
Goodwill and other intangibles | 27,953 | 27,953 | |
Lindblad [Member] | |||
Segment Information (Textual) | |||
Assets | 356,400 | 356,400 | |
Natural Habitat [Member] | |||
Segment Information (Textual) | |||
Assets | 45,500 | 45,500 | |
Goodwill and other intangibles | 28,000 | 28,000 | |
Amortization of tradename and customer list | $ 200 | $ 400 |