Note 12 - Segment Information

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 12 – 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, or CODM, 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 nine months ended September 30, 2020 and 2019, operating results were as follows:

	For the three months ended September 30,										For the nine months ended September 30,
	2020			2019		Change				%	2020			2019		Change				%
(In thousands)	(unaudited)			(unaudited)							(unaudited)			(unaudited)
Tour revenues:
Lindblad	$	16		$	76,581	$	(76,565	)	NM		$	69,533		$	217,549	$	(148,016	)	(68	%)
Natural Habitat		1,003			24,402		(23,399	)	NM			12,458			49,745		(37,287	)	(75	%)
Total tour revenues	$	1,019		$	100,983	$	(99,964	)	NM		$	81,991		$	267,294	$	(185,303	)	(69	%)
Operating (loss) income:
Lindblad	$	(24,835	)	$	12,570	$	(37,405	)	NM		$	(54,287	)	$	31,514	$	(85,801	)	NM
Natural Habitat		(1,979	)		3,089		(5,068	)	NM			(5,021	)		2,631		(7,652	)	NM
Total operating (loss) income	$	(26,814	)	$	15,659	$	(42,473	)	NM		$	(59,308	)	$	34,145	$	(93,453	)	NM

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

	For the three months ended September 30,								For the nine months ended September 30,
	2020		2019		Change			%	2020		2019		Change			%
(In thousands)	(unaudited)		(unaudited)						(unaudited)		(unaudited)
Depreciation and amortization:
Lindblad	$	7,888	$	5,812	$	2,076	36	%	$	22,075	$	17,380	$	4,695	27	%
Natural Habitat		597		421		176	42	%		1,653		1,223		430	35	%
Total depreciation and amortization	$	8,485	$	6,233	$	2,252	36	%	$	23,728	$	18,603	$	5,125	28	%

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

(In thousands)	As of September 30, 2020		As of December 31, 2019
Total Assets:	(unaudited)
Lindblad	$	637,913	$	471,499
Natural Habitat		70,891		77,159
Total assets	$	708,804	$	548,658
Intangibles, net:
Lindblad	$	2,781	$	3,325
Natural Habitat		2,431		3,071
Total intangibles, net	$	5,212	$	6,396
Goodwill:
Lindblad	$	-	$	-
Natural Habitat		22,105		22,105
Total goodwill	$	22,105	$	22,105

For the three and nine months ended September 30, 2020, there were $0.0 million and $2.2 million in intercompany tour revenues between the Lindblad and Natural Habitat segments eliminated in consolidation, respectively. For the three and nine months ended September 30, 2019 there were $1.3 million and $3.8 million in intercompany tour revenues between the Lindblad and Natural Habitat segments eliminated in consolidation, respectively.