NOTE

– SEGMENT INFORMATION

The Company is primarily a specialty cruise and adventure expedition operator with operations in

two

segments, Lindblad and Natural Habitat. The Company evaluates the performance of the business based largely on the results of its operating segments. The chief operating decision maker and management review operating results monthly, and base operating decisions on the total results at a consolidated level, as well as at a segment level. The reports provided to the Board of Directors are at a consolidated level and also contain information regarding the separate results of both segments. While both segments have similar characteristics, the

two

operating and reporting segments cannot be aggregated because they fail to meet the requirements for aggregation.

The Company evaluates the performance of its business segments based largely on tour revenues and operating income, without allocating other income and expenses, net, income taxes and interest expense, net. For the

three

and

six

months ended

June

30,

2019

and

2018,

operating results were as follows:

	For the three months ended June 30,												For the six months ended June 30,
	2019			2018			Change			%			2019			2018		Change			%
(In thousands)	(unaudited)			(unaudited)									(unaudited)			(unaudited)
Tour revenues:
Lindblad	$	64,930		$	59,556		$	5,374			9	%	$	140,968		$	130,009	$	10,959			8	%
Natural Habitat		11,728			9,917			1,811			18	%		25,343			21,874		3,469			16	%
Total tour revenues	$	76,658		$	69,473		$	7,185			10	%	$	166,311		$	151,883	$	14,428			9	%
Operating Income:
Lindblad	$	5,302		$	5,107		$	195			4	%	$	18,943		$	18,547	$	396			2	%
Natural Habitat		(1,181	)		(900	)		(281	)		(31	)%		(458	)		32		(490	)		NM
Total operating income	$	4,121		$	4,207		$	(86	)		(2%	)	$	18,485		$	18,579	$	(94	)		(1%	)

Depreciation and amortization are included in segment operating income as shown below:

	For the three months ended June 30,									For the six months ended June 30,
	2019		2018		Change		%			2019		2018		Change		%
(In thousands)	(unaudited)		(unaudited)							(unaudited)		(unaudited)
Depreciation and amortization:
Lindblad	$	5,774	$	4,626	$	1,148		25	%	$	11,568	$	9,309	$	2,259		24	%
Natural Habitat		408		368		40		11	%		802		729		73		10	%
Total depreciation and amortization	$	6,182	$	4,994	$	1,188		24	%	$	12,370	$	10,038	$	2,332		23	%

The following table presents the total assets, intangibles, net and goodwill by segment:

	As of June 30, 2019		As of December 31, 2018
(In thousands)	(unaudited)
Total Assets:
Lindblad	$	428,055	$	409,622
Natural Habitat		80,439		63,787
Total assets	$	508,494	$	473,409

Intangibles, net:
Lindblad	$	3,688	$	4,050
Natural Habitat		3,497		3,925
Total intangibles, net	$	7,185	$	7,975

Goodwill:
Lindblad	$	-	$	-
Natural Habitat		22,105		22,105
Total goodwill	$	22,105	$	22,105

For the

three

and

six

months ended

June 30, 2019

there were

$0.7

million and

$2.5

million in intercompany tour revenues between the Lindblad and Natural Habitat segments eliminated in consolidation, respectively. For the

three

and

six

months ended

June 30,

2018

there were

$0.4

million and

$1.4

million in intercompany tour revenues between the Lindblad and Natural Habitat segments eliminated in consolidation, respectively.