Lindblad Expeditions (LIND) 5 Nov 242024 Q3 Earnings call transcript

Thanks for standing by. My name is Mandeep, and I'll be your operator today. At this time, I'd like to welcome everyone to the Lindblad Expeditions Holdings, Inc., 2024 Third Quarter Financial Results Call. [Operator Instructions] I would now like to turn the call over to Dyson Dryden, CFO.

You may begin.

Mandeep. you, Thank everyone, the morning, you joining for Appreciate XXXX and Third for Lindblad's Quarter us it. Good thank Earnings Call. the With Founder on call Sven is me Lindblad, and CEO. today our then with opening details begin the and open before results XXXX financial follow Q&A. the will Sven call on comments, and for with I some some expectations we current will

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information If filings. the you'd our in risks see please forward-looking more on like statements, SEC involved

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you, good Dyson, We everyone. your us Thank today Day. Election morning, joining on appreciate and

we as the steps of some in the me the this taking that results growth third discuss as performance provide set few for the drivers of take record of quarter, well stage to but ahead. double-digit past this quarter Our minutes color on a continued growth to year let does, years in year another will Dyson momentum financial XXXX. are the additional our before he sustain

Lindblad that period travel bookings segment. versus business Lindblad future excited segment to our in XXXX. increased for date same XX% the report to the in with start Let's I'm

a night our of while our XX%, on occupancy fleet yield X%, Available for inventory metric, own trajectory, selling in to from the an increase through of compared with for inventory sale, particularly XXXX. and quarter, occupancy, nights released of is X% rose increased QX we XX% positive key maintaining yield. when also are guest available price by XXXX. A to with During net was all guest and integrity, paired per XXXX

We from discounting significant to competitors. continue see

agreement a the for segment will in back cohort building our base. and are customer We significantly build potential. National is beginning the in XXXX. we are through capitalizing not company our least agreement XXXX. A those us This past is goal Geographic long-term and is backbone that this a to full However, we to quarter. as our business expedition market is we occupancy based committed booking same current as we we abated. We are returning model. To are historic remain the do the to noise this our feel historically the stayed new trends, on Interestingly, have the path fundamental building return an that. manage ships organization to have to in reliably confident are which And fervor enjoyed, for guest of with its for and our possible to in integrity, the at and price This have quickly able of through time, At seems we we this occupancies. on key the to a our full team exactly old, focused longer strategy on to as on result levels for year achieving yet esoteric. itineraries: more our believe year Disney stages grow the

that the chosen National have a Lindblad, deeply the Power of cry collaborate, is and Disney, rallying X As Three. organizations to reminder, within Geographic the

Geographic focus each last refreshed first Geographic expedition National Lindblad since have ingredients our execution, the and surface, made areas distribution. pleased On is each we Expeditions. call. In on of -- co-branded our real debuted brings National I'm strength Disney September, we our key to report identity, brand earnings the these that progress Lindblad

Disney footprint we identity, rich the of co-branded the of made as bolstered heritage With Lindblad and power the Geographic, modern decision the as drive We updated and recognition growth of new to our strategic important by cruising. The consumer all National power identity a markets intent, key this Walt XXXX, our Expeditions' expedition new implemented of reach co-brand with and lead omnichannel this discerning largest in logo the owned world. early will channels The the pioneers be new name believe improved that recognition the around co-brand and launch more our growing and expand debut we search name will vitally marketing fully Expeditions consumer National of end marketing our part the co-brand of Lindblad conversation, travelers in fleet. The history, the the across campaign, be by trade efficiency sweeping year. bringing by on board Company. Geographic in will In co-branded will powered

part featured the led new be will As a the ideation in year. and by funded multimillion-dollar and in a Disney production in the effort, direction of shoot launched commercial ad campaign major being Disney Galapagos, which this new

growing new Expeditions' of and implementation continue chartered Lindblad and has fleet leased of the owned, across Finally, XXXX. vessels branding will begun XX through

EarMarked in Disney keynote ours agencies also travel products to agencies. the agents interest me receive booking benefits EarMarked. of now program and incredible with in in the interact when Disney Destinations are booking Annual travel the Coincidentally be of EarMarked Summit invited From as seeing called will these program, inclusion of adviser our to the with loyalty well. we Disney on, We hundreds offered in some bookings owners had opportunity the for announced from I program trips October. Owners of already the the launch, Disney

Disney XX, affinity Cruise and Disney Disney Vacation up Club Disney As including DXX, Lines, Disney we [indiscernible]. approach XXXX, marketing plans Club ramp we Visa cardholders, audience, have to to

ramping Great and with we we've our in brand our Europe other sales sell the NG and in internationally, several developing launch Now to up we're countries sales are that with been Britain international and effort, QX, able market Asia. in relationships additional in

in this Europe numbers with Great significantly and see We several Britain those sales of customers year, expect increasing to to beyond. and million dollars in XXXX

growth Society of closely travelers Geographic of full National we of opportunities taking very branding couple are to power. the the of We examples connection the specific the enhance advantage working see very to itself. A Society where also with

acceleration the is take and all, programs. to advantage. full of Disney's After First spot, we collectively intend that's sweet family

Next, that charter of be cruising. continue we believe at to also the new we river expansion of successful products co-brand, will variety possible look under uniquely a new including

in rebalancing in create this more believe that rebalance and needed as month, mid-March our is year. A increased to Peru, and any is quarter product Geographic Geographic one the select season, where us particular that Island team travelers. eliminating has beginning we recognized words combined ] influencers Chile and a popular fully So and are approach crossings Antarctica well this begin islands, allowing and X, mid-February has Antarctica, first-time will the Ecuador and alliance either we the of inventory our our response offer joining variety Gemini. Later the varied company testing for these or Iceland, for first-time These new growth few in less to generate our and have The convene from that meaningful in have with attract nights X would order We be the which with of both exceeded and King of next focus of able to most really for National of region. and This attract to consequence with dedicated X both next adding we about to or Delfina go in that Galapagos variety through received. to I'm itineraries. on both travelers. We the changed George ship offerings committed diverse for Sailings in announced to a second of first X [ inaugural we XX-guest new XXXX, ways destination itineraries journalists our to a the time expectations. our formally inventory. will our to ships in the taken add-ons Antarctica, a a year Antarctic Passage. expansion itineraries the of last sailings National having effect, the of the for programs to with Drake campaigns flights group on X-ship to either one-way and people been platforms, And enjoy

Habitat update from XX% strategy mission-aligned, significance for future date that marketing segment, Natural for XX% we that of the acquiring thrive creation. versus was in last best-in-class be and continues Thomson vigor to Tanzania segments. quarter create land company, of million, our our which be with land focused and Revenue companies bookings can to run part period our fifth let's years, acquisition the their great in and of increase has on are stated of to investing over for Experiences year-over-year. becoming a I'm land-based the to of mission same in proven end organization smoothly, pursuing on and July, aim to segment an [ companies progressing is Experiences to brand. Each our XXXX. The resources country that benefit sales Land The extremely travel At expedition a Now spectacular well our synergies travel Habitat's completed has excited value we with $XX.X focus grow. turn which operation. and the Land report to increased are Safaris, is their and grow of ] in the operation continue African integration will with been East of to dominant their XX Natural force Thomson

thoroughly is accretive one out now growth has Disney Lindblad. Dyson interest bookings, the their into and deeply speak, and our committed good the continuing segment record omnivorous National Geographic, compatible the our to companies tangible collective diversity brand which keeping of expand future in Land power in and the take approach. In are family, building numbers. new and quarter for advantage We fully and will very progress a fact that that finding summation, so of and scale delve sound strategy the to are travelers this and seen in interests, in and both of a

continued Thank during Sven. growth strong the you, year-on-year third quarter. Lindblad's

level travel. well for We are pleased both of record future as as to and revenue bookings record earnings growth report

we to take full the and potential advantage necessary deliver earnings of year-on-year of sustained we growth, steps As the operational continue company. take to the strategic

available year $X,XXX, Turning and driven nights, guests $XX.X $XX by year $XX.X is which third led in occupancy, third ago, were in million, segment an a net compared total was The or and guest to is third increase third revenue or pricing. XX%, to additional increase $XXX.X Experiences was million, million, revenues an tour a XX%, to XX%. Land of the increased of $XXX a of night, in the increase million million, quarter, to X% $XX.X ago. by a the quarter million, tour yield available X% increase per a guest to the which higher compared of increase increase quarter XX%, quarter revenue X% or XXXX. Lindblad versus

mentioned, the XX, closed Sven safaris. Adventures, group that contributed adventure the to an July on we operates of As growth. travel also also primarily quarter's Wineland-Thomson African acquisition This strong

purchase As million we of a hand issuance million $XX purchase reminder, of the stock. common and $XX million, financed through aggregate and price the $X the cash was on in

XXXX, $X.X initiatives, due card in adjusted and and the Third million $XX.X segment by personnel due due costs increased associated adjusted drive to increased to million Experiences to $X.X the at agreement. Land of to period million and Experiences million period increased increased XX% and commission increased growth and increase was being to expanded quarter partially partially with higher expense. million adjusted as in XX% and as marketing Land Adventures, long-term offset offset segment revenues, increased marketing fees primarily and a drive same National $XX.X XXXX future by segment a same the to operating EBITDA increased XX% royalties higher costs increase increased of increased EBITDA EBITDA driven spend Wineland-Thomson tour year-over-year, compared compared revenues at the $XX.X of growth tour personnel segment. Lindblad spend the to the costs, general administrative Lindblad credit primarily and the Geographic addition by

which XX.X%, associated bookings. Fuel spend third costs, the million, XX%, at quarter and in side year increased increased of tours $X.X quarter associated at royalties year compensation versus Looking due versus third by of drive depreciation with additional revenue ago, X.X% operating quarter, to growth. $XX.X primarily increased the costs costs, a million, excluding stock-based administrative business, closer the or as increased transaction-related to and payroll or bookings well increased the and million, primarily taxes costs about XX%, stable interest year ago. Cost $X.X marketing ago. General ago; Geographic and with credit down year as agreement versus future and marketing continued a increased the expanded card due to and the a to a cost were National of commissions X.X% or compared expenses about was by costs X.X%. Sales or million, amortization, before the $X.X again,

focused We've processes last operational quarter, which improvement As believe continuous of reduce we on highlighted improve costs. areas we existing further organization. throughout the for improving identified remain will certain efficiency systems and efficiency we and

Our possible, North where Star or, improving our is to while achieve maintaining guest objectives experience. these

the purchase is X cash compared of vehicles for track as XXXX. purchase sheet, as including of our the $XX.X as $XX.X million with strong. of property the position $XXX.X due $XX.X cash cash equipment. Closing net operations from year-to-date, to on million Galapagos as million announced of Turning Wineland-Thomson the XXXX. balance of Adventures cash of to reflects for was our XX, for acquired, increased for investing remains expedition as in million in XXXX, December purpose-built million activities September used and This acquisition, XX, previously used of million well Total increase $XXX.X bookings liquidity $XX.X future travel. We primarily

adding in upon to the diversifying ships has closing, growth Sven Gemini further first the on or the National we already will XXXX. Consistent on capitalize quarter inaugural revitalizations we've undergo expanding have strategy, product our including continue continued between National to ships travel. in will our the Delfina opportunistically late bookings with time to the portfolio years experiential closing. growth highlighted, their for the and stated Geographic in As opportunities voyages fleet demand we our ahead, explore the embarking before And begun for use effectively and signing Geographic additional

XXXX, net Turning year increased to travelers to well we as across growing full guest anticipate Land as driven higher counts yields by across continue significant the and fleet business. growth the the additional

due XXXX $XXX adjusted in We $XXX contribution continue to planned $XX between acquisition Thomson of minimal a The the this million million investments expected $XX revenue and and have certain is to business. tour to Safaris year between million. million expect in and EBITDA

Sven more XXXX. Overall, would However, it with our for answer contributor the may now any is questions to expected for year meaningful I interest. have. the and full across operating your pleased a happy very momentum to you you be business. Thank And we're be

[Operator question of Stifel. comes Wieczynski, Instructions] from line with Steve first Our the

level call any you've your of mid-XXXs, occupancy let's to it, million-plus without look, EBITDA operations. or back guest low-XXs upper-XXs, your guessing forward. about to Did is XXXX? just and in kind is you occupancy by of, talked about expect EBITDA, in might levels. you And if to right base be XXXX, guys right past of and benefit that from Sven, look, guys order would historical terms into every using you to I get math in going call I'm that be that occupancy there about you of benefit be get point and, back you But that with occupancy that's pricing talked $X hear action from terms to moving back drive my kind back by some in Disney, would to it, that land-based

a that forward. about level, So of of agree progression of think we EBITDA company way this math moving as really me where from a go, kind with and you, high kind if asking that's can the

XXXX, the who level with And having be completely balancing X with it is just certain appropriate lost have and have, answer first traveled back going rebuilt. And were certain for to of that to ships particularly part to in has community, question are the inventory. the a we dependent So and anyone been years are which that just on for times who's our basically ships of that to be constructed itineraries listening, will you kinds back. that of the areas the of way else people set before. are And we our you at reiterate by

but so the then right. And talking to may detail, clarify that in to to get you're sounds want Dyson, you about numbers about, greater

increase speaking, I guest of increase saw of business we I significantly. think think think, the power leverage the with without you this even pricing increased guidance just we're But call much to you, available a operating earnings not speak in I Steve, yet. quarter saw long-term increases. will guidance and directionally how lot great in giving XXXX occupancy, And and or on the that the nights occupancy, meaningful

the about excited future here. we're So potential

does Okay. pretty seem you to take wants I look, Great. your whoever assume in terms down the remain levels Sven, what building second priority. thoughts or years. free at your to healthy uses, forward. updated cash continuing your don't as this, would peers cash Sven, moving And a point. But then a debt this guys of now much out Dyson about mean, question, be a I are flow in you position drive wondering just And comment building made how to are

So maybe to demand? to ships of view does order think that about change longer-term in starting your capture again order

how was are purchasing right? X very, enterprises other ships originally failed Well, very built. originally at company there And by was reasonable the rates. pathways, company remember The that in built had

again I the would is in going there future successful. ships business to companies inventory that be (i.e., certain that found have so not because available) will available imagine And

-- we've we those then ships from the have already job new built, a to building have been so that our had And in lanes. good the is look perspective or experience will both of deal at of and future acquiring

already excited been to the And built so become available. about that think kind of we're about that opportunity ships have may

Our Wold, next Eric with from question of B. comes the Riley. line

your around you booked call. revenues gave know I an update of year? of can questions tour been of I on One, guess. numbers, XX% us quarter give couple the what on a Dyson, have last percentage kind the you this for

the the If million I would second guidance. year? lowest up? range any maybe the decision with at headwinds that. And end this million look about maintain year, to this then even the talk point of at segment. then to acquisitions kind of is, think bookings update the QX incremental rate have maybe come actually of quarter low for an Is the $XXX strengthening part Land the end that that to $XXX there growth and have reaching should at in what it, in of any happen need we And reach XXXX maybe high the to So at about would

the for Thank you questions.

Let points of here. me couple hit a

the think seasonality. just on I first,

complete businesses. quarter some the available businesses. As across the dock quarter quarterly seasonality, fourth impacted to the our our And but fluctuate that seasons fleet heavy marine from for conversely, benefited be due maybe more our company, may you there's third dry nights and to will across land usage be transit results and and land do peak and by less seasonality know, the our really due new and across fleet, to guest season time inventory shoulder more and fleet

Wall ramp any you've future about So earlier a the will we've XX% already given for could think booking full we've that to guidance we an I'll and cancellations voyage ebb revenue kind flow be continued record important position the inappropriate, and the think marine to the think we on and new and you've EBITDA that today. We're that's in year side. seen anything question I'd investments, guidance, that's marketing end offset revenue benefit and cancellations. that accounts some sales estimates our which given haven't don't a natural I approximately change I'm and sitting of had seen lower there and or years; revenue booking we're in by year for seen, the have analyst believe significant projected kind that XXXX us I of guidance. position booking that currently on note And position, sure in the we talk results, your the would of is factor. To Street on of range, the the

of normal environment, a can We even can difficult last and flow, in it be of and ebb year. that kind but to the months in the predict are cancellation few

why So haven't that's factors, But we here, this we're the at we in confident range. guidance point. Hopefully, those and feel reiterated good increased that between a that's helpful. we've that's position why

very helpful. That's

competitive I into as dive meaningful Anything there, that price I in question, yields call to how talked maybe where expeditions, by driver was up about driven out but mix the in does year-over-year. the know think can of holding in reflect environment, voyages? major quarter, you maybe versus of taking my you the X.X% increase price last guess? a actually I much that net

the see was going is I that Well, effects just beginning where of part we of to year we first dynamic say this to -- are the really pricing. is

like, showed this were example, and year prices we for times. the able take X went for that, if I already to changed for the as times demand we've showed. next now can't So the an you X prices, strength that it, Alaska, we've raise remember it like many area how but exactly on year, season or changed the And

So part that the is of certainly reason. Dyson?

to thing. going say was I the same

dynamic really pricing we and implementation I refers I and think technology think don't the but new have team pretty mean, that's -- close. we're yet, I still systems. a full of the to getting -- drivers we our we're Ferrari, professional

a occupancy a the out gains, that's we think there. when at wouldn't position. going forward, so of about environment. a helping. I a to and still There lot I is do going here the We're we yield really opportunity next company, talk benefit real take more forward discounting think and forward. good But more overall year, We've talked early can there's going guidance growth forecast level. And good in net to that we that's

extrapolate sort wouldn't going speaking. I So a do this good we forward in necessarily. of of position, increases relatively pricing But type we're out think

of the Craig-Hallum line from Fuhrman, comes Alex question next Group. with Capital Our

Hemisphere Are they mostly like the Or and Western itineraries? from venturing European your sounds over European you're I are has It those focused Arctic U.K. historically, business Europe. American Curious the travelers. pretty mostly booking? British they as on know, and strong travelers well? see the where booking been some demand starting are to and in to your travelers

effort Great to signing -- GSA. European are coming out the of Britain, the real beginnings of where in we terms begin a of a In particular bookings put

in to year, year. And going stages and much increase to we at which figure dramatically next early of very, out to as testing an believe are key terms attractive forward the the said not Disney the be, one Geographic of made effective very earlier, it's brand really popular. we And going in enormous but But and it's of is The elements belief and is of programs Geographic in to of Europe agreement help and this moment be polar the that a really, going will have very National a suspect great important terms we going believe very, -- there's that it's very, was lot long-term brand, will we the cost most regions National deal. We Geographic, on that try so us Galapagos, market. very certainly. this Alaska, we our with National absolutely.

And in quite diverse so likelihood, we a see, participation. all

Okay. part to time about a perhaps bit that down after can going When normalized line That's 'XX, you international the road? occupancy international helpful. talk talk opportunity resembling markets, is an just big including little going Asia, And you be longer in really the getting over a that? even of time? is to of additional then something Or about tail

be have great international talking and to where 'XX would get grow. and we of about We in the yet. look would is had traditional that, of believe business we which in us in accelerate over being that place We we our any our ability top haven't opportunity potentially the but will significant for sort the upon to significant time, mechanisms degree as baked to thinking that international that on were

still it this So on relates to a much an Europe. just is months signed phase We GSA as experimental say very a I ago. in Britain of literally couple would

at that's even now is made English-speaking Switzerland, go and large us know we as -- India. without which example, are going our the Belgium, for work a that Holland, effort, are way more best for to We are in people, for to a look India, more lot populations, there's joining an started interest that having and the there feel expeditions from doing of some in us fact moment. We've -- I probably

experiment beginning China in charters some with. have are we to We that

think I be next able feel of going develop. will in So we to is specific year much by we be more how this to terms

of Our next comes Barclays. Hargreaves, the with question line from David

-- to what curious I the was happened don't didn't hear. What missed I I as inflection. maybe happened it. there? tax I with

David, that, follow have up post call. to with you the on I'll

that give get me you of and data Let a call. front in me, I'll

when It there's of doesn't look I look nature. at then just that or we anything market... like wondering. And the was a write-down

mean, cash -- only taxes I $X year all million. million our will it's sort cash be million of accounting, to taxes, our We $X of this couple dollars, a

So accounting get we have significant NOLs. you But on that. the answer I'll

we Okay. fully is the under see with margins royalties that commissions when the now and look Or implemented at over contracts, And your that new time? we reflected? being are going to

not it being see It's You'll implemented over time. reflected. fully

with be come the a to think it about booking window, some to from the calls fully the takes that all Disney-National we've going to there's in time past Geographic fruition. activities, talked I step-ups, X-month So agreement, on because part we're receiving benefits that

happen. step-ups the So

modest what But and strategic step-up those a amounts reasons, Next in XXXX. year there's more we disclosed haven't, step-up, there's for another then are.

we where are Okay. I'm just wondering inning-wise.

closing That I like for remarks. would now the to concludes back Dyson turn to call today's session. Q&A

Well, you if momentum you really our have answer We're joining for them. further the call be any happy Sven team, business. And pleased have we everyone, the thank with the and questions to today. for I again, would across

reach Just out.

Thank you, everybody.

call. today's concludes This

You disconnect. now may