LIND - Earnings call transcript Q4 2017 | Lindblad Expeditions Holdings, Inc.

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Operator

Good morning, and welcome to the Lindblad Expeditions Fourth Quarter and Full Year 2017 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Craig Felenstein. Please go ahead.

Craig Felenstein

Thank you, operator. thank and joining full and XXXX for everyone, quarter fourth year morning, you us for Lindblad's Good earnings call. the Executive on Founder me call Sven is With Lindblad, and Chief Officer. today our opening Sven will with details the results our on call and year I quarter full we will some and comments fourth before begin follow then for some with open Q&A.

earnings Relations section website. You Investor can of the find release in our latest our

statements. started, such let cause today me remind expectations undertake the risks that to comments of obligation forward-looking and the performance may get update everyone may to different Company's statements. and include we company The no to any be the we expectations. forward-looking cannot Those results that accuracy subject or are forecast materially and any Before uncertainties these guarantee from actual estimates,

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

comments A measures most to earnings some reference non-GAAP let that of addition, release. other And associated measures. call and comparable our directly in disclosures the the to are over with financial the In me way, of contained Sven. the Company's may GAAP of out reconciliation turn financial

Sven Lindblad

then you Yes, was fact results sophisticated to and and she and days, in our the progress review financial everyone would us passenger new most Craig. Geographic in by beyond. U.S. meaningful planned with I'm ship, some begin to later joining Quest, July the and I of were than first a operation decades. and but With XX, that pleased like XXXX this program. originally delighted certainly highlight was of National to robust built in year our ship to build of and thank is announced Thanks, company's performance morning. the prototype that newest we what on events past XX have our our shaped this to opportunity turn XXXX the for the in the to growth, key towards

National and While my Lion, core geography comfort XX-plus vessels consequence guests when concerned its the is with operated a new strong, occupancies the At occupancies the execute completed past considering maintained in really, of which year, is our bringing are Geographic in minimal. and any not Alaska need Bird is same our view, importantly, yields, the high with time, unfortunate, and confirming their region. in delighted she demand a to delay ability and Sea the with Sea as primarily, expeditions effect, style. Most that and same year this life, as the Quest, we high very cannibalization into be XXXX

be fleet, of flag financial year makes year it have of expect typically our this to which exploring key Expanding speak, we where half geography Quest the second XXXX, footprint National driver result and, full a year. have XXXX, growth. of like this the important. seven is much a not which voyages is the for Geographic planned been we this totally As U.S. our sold the since for out strong Quest we is will our The key Belize, expedition operation

all we as we a of Of past other of National occasion sort error human Orion's the lack any investors were was of reason. Geographic mechanical accidental incidence in any on days indicative form the season the Geographic of much best by incident, sold prior There Orion or Lion, to shorter on no the with on and Perhaps significant that have way out. the Sea out asked this any is the course, Sea of discussed averaged two-week X.X particularly was this first answer been vessels I've with year years completely from event losing canceling to service pattern. combined the XXXX, correlation past the of of due or this Antarctic as operated XXXX, voyages the age is that XX before, Lion. caused quarter owned canceled to to that in or our or National of the ships maintenance, to only

As that is prospect mentioned record a prevented as and testament know, of that. and a by service being to we out well is the anyone, track as both training, maintenance rigorous to I the personnel earlier

So these without question, rather rule. the the incidents it are, that clear is exception than

to National new is This opening beyond XXXX, is but point already At the and occupancy but are the the where this XXXX and as limited believe would, date. base all than shortly, as XX% Far week this by for year XXXX geographies, approximately for is yield through time, inventory course, that stronger the inventory new been good in have you bringing growth details ourselves travel It not position significantly increase been for of efforts XXXX approximately marketing same and continued the these this XXXX bookings mirror, who of bookings, the up has capacity into While because to to a XXXX had these in on call is on very Alaska a along XXXX, increased of lot this our will earnings strength a the on during National also and to Northern largely past higher of are year, rearview kind except our for considerably. trusted spoke I gap this we're November we same bookings and just for harvest record widens kind in unusual Geographic for bookings particularly do already we experience despite because because means When focused unique in but that a did increased we're fleet of are itineraries on years deliver and to again, part travel poised but same of based approximately between it new entrants. walk the prior. summer brand driven a demand XX%, the highlighted That Geographic for sign greater interest great in all we beyond third of deliver proven with East existing XXXX. X, in quarter added from ones and the not in with time deal. up expedition ever-increasing XX% each incidents factor the in Craig of ahead. financial during booking a have in occupancy this on in Russian significant to events. research, travel growth partially Orion tenured XXXX partnership track demand well you with space a People like more over a broadly. also

execution. and developed Our jointly photography is for relevant both in example, program, perception

travel in traveling with Our provide guest the is fully that on extraordinary company with committed whatever the want that world's notion them to we experiences will to space. the takes to it do

We also is meaningful, explorers expeditions. jointly grandparents only something launched, the in richer not Lindblad for making appreciated and very, parents created enormously. XXXX during they, kids, program And and more very global for but family a school holidays important particularly their experience business

being turn the the built quest, Now to to like National vessel the sister Venture to blue-water new in and new, Geographic Europe. next our I'd

much perceive the Northern but as a for of ceremony. approximately now information, original opportunity a are advantage. are The several more significant new Polar season during to on will in as re-engineering A building Ice. in expectations, lifespan, valuable new aspects opportunity for expanding the century. with we good a based the We case a the add that we part realize pay track ever expedition than areas increased like for delivery and East to months, Venture, geographies XX, for dates XX-year [indiscernible] look over out so the subsequent interest plan I where improvement meantime, are than term, aside for very new again, and later prototype six is very, our that will on the reason. announcing The extend the from if our factor ship of ships six this more required polar mentioned our a We a it interest XXXX ships. be capabilities In March as but is that may Quest vessel will In the on Venture unheard Both These previously. just what the by short delay in is most engineered of you the December revised designed competitive dates the from travel. case huge Far and vessel there through loss with a their month specialized months to the lessons name of January quarter XXXX factory because dividends design. original the we of new In an feel learned operate decided earlier. polar sophisticated Alaska, Bluewater elements it's of build Russian as

modestly reentered the We a with Egypt have XXXX, initially, to significantly expand was Lindblad important very, region once also Expeditions. very which in intent but to

are be a do of variety four have who like might a people of that regions, on of five audiences in on call. We not to expanding voyages. of series a shorter day time Perhaps many a you and this voyages, simply attract longer the of

and incorporating higher active, Some more cetera nurture of generations and et different level, wellness a new these are brought et focuses traveler. shorter test well, to to of expeditions how as cetera future

agent of have own. video been of do region We're five a in shares. our system since the build both from exponentially augmented about platform. travel new platform nearly sales And focusing million together National sales with regions architecture and decks increasing to the National use with National a and with Same marketing international activity well web increase markets. hunt we infield National to Geographic posted Geographic, significantly force. killer sales our tape XX,XXX Geographic Explorer Recently, from the by on views over and the whale the CRM has significantly our XXXX, increase Geographic for expanding a also video outlets our Our the will we the doubling beginning

the and part as a versus do and and full to more and Habitat Habitats traveling Nat cross-selling are Lindblad has fantastic guests Lindblad his finish, we in of for its Bressler This in time, across Natural and XXXX strong business, to with well. delivered job unique growth the Nat four attracting land-based very want driving this Hab. number acquisition guests generating of are product – more company. both significant as our expectations. first the They XXXX have mention I fold proven the diverse I while Before be Ben already And accretive that Hab increased increased offerings our XXXX. to same at Natural between we're seeing done year initial team to achieve their year continues

confident mission is loud with in as would connections and awesome multitude with guests ultimate So some are long-range and we the today’s contend on fleet with of very on excited fashion something expansion. Radiating clearly ever positive, future changes about delivery in places. a ever is is our our and Demand track in extremely to strong measures I year luxury the importantly the platform. core albeit fact as a important growth The expansion with supply world. worlds most ahead,

thank you your Craig. And time let turn now morning. So me this please to for over this

Craig Felenstein

guest strategic of substantial adjusted was year capitalize expand EBITDA the fourth revenue And to XXXX, by investment In year-on-year million. contributed was Lindblad a the generate higher traveled to yield season. expedition with fourth due quarter growth was primarily in growth line fourth significant year quarter in to has of on due $XXX included million begun $X.X travel segment Sven. The current from this XX% launch Occupancy of fleet exhibition year ago. to a increase million engine to demand National from The revenue Thanks, in high-quality, versus which nights Orion's XX% increase growing company Geographic in financial revenue during growth the Portugal growth to capacity generated National nights Lindblad a for increase year was our guest rise quarter returns. the most higher to total driven This Orion and voyage the authentic $XX.X X% XX% million. to to also pricing across the $X a the trans-Atlantic from available fourth of from repairs. July. in the prior $X.X and Quest reflects trans-Atlantic Chile Antarctica in the despite the the cancellation due October, addition of net voyage of in the The vessel Geographic increase itineraries. the revenue in the a ahead inclusion ago quarter an the to of the also a the

levels occupancy EBITDA always was voyage this quarter. below the addition given of opportunistic at quarter, adjusted and sail to voyage last revenue expected added and mentioned growth this I to our these itinerary, As normal past the but was

on grow guests, stockholders net these $XX.X segment adjusted to we Geographic important as and of It's of due of lower Quest booking amortization. commissions by operating year in to business. additional of growth versus increase increased cost the in are with a impact Natural loss Tax $X.X segment cost Lindblad in Habitat the Overall, year, cost Adjusted from and the were the to reported overall, from the to due relates growth increased note growth more in personnel costs. $X.XX taxes, enactment fourth XX% basis X%, and fourth night the offset EBITDA million eliminated quarter that on million the a EBITDA operating as above and the quarter the on part basis XX% and year primarily just XX% stable generated million just $X.X year reported share At to in of revenue, commissions fuel, segment. in Revenues and depreciation a charge a ago. base to Jobs cash revenue the foreign or retained nights to Habitat Fuel or with ago. Act sale by share and $XX our primarily million onetime quarter, in line compensation excluding XXXX. of reported driven toll results. year a Cuts accumulated driven National fourth Turning and per ago, at improved Natural million than $X.XX was higher cost noncash operating from company U.S. earnings. year-on-year the the were reflecting the year X.X% December this expenses revenue itineraries operating quarter the in I Lindblad Quest, is the was stock-based the cost Lindblad and of $X.X rapidly decreased Total X%, adjusted results continues and a lower and This a loss from partially due million of offset were and line personnel the expense mentioned. a the net large the which versus prior in the mentioned, ago. The available quarter common by Sven a cost primarily was cruise $XX.X

anticipate impact While taxes we the generated overall regards our anticipate to operations. of flexibility rules and our still significant tax we we both increase do are at the current full with additional the international moving earnings, at on evaluating utilizing but this future a not cash currently forward time, on currently do

Sea of quarter during Geographic discussed of contributions on Orion, we These EBIT previously. was basis, and the a reported XX% cancellations to quickly Lion XXXX impact On X%. voyage growth year second Turning Lindblad National delivered and a adjusted and full booked revenue the of growth of results the that year. included Natural of highly have Habitat, the full acquired which from the Quest

remarks, every cancellations have As continue to in we his voyage in measure no there are future. of to Sven rare been ensure these extremely for Lindblad, mentioned significant possible types disruptions and the take

XX% the Excluding Lindblad to would a estimate and increased adjusted cancellations. $X of launch Available increased segment Quest driven voyage Geographic offset to have that the On charter increase XXXX, partially revenues XXXX, due XXXX, revenue and the in reported expeditions in of to $XX.X impact have a an XX% full a Guest we of EBITDA Nights primarily increase $XXX X% basis, voyage would Cuba, by of total cancellations year these by $XXX or million. the million, of million million the in company to versus delivered X% National

versus grown segment shares offset Excluding increased These the well higher with $X expense. $X.X reflecting year XXXX costs mainly lower in cancellations, voyages the accelerated ago, XXXX Geographic in bookings Geographic stock-based compensation Sven's XX% million occupancy the of primarily Net estimate his X% Endeavour. in the employee the XXXX. that year a as slightly, to executive half a associated million. of associated have Yield $XXX by National canceled we reflecting Quest, the cost segment for of XX% XXXX personal of the for as Lindblad depreciation and the were Lindblad base million of the in related XX% with was XXXX, distribution December of first impact full retirement versus to operating impact ago severance National the travel year partially to revenue would increased and

than of net revenue, associated expenses a income available year stock-based the fuel million were operating $X.XX was improved and operating year share stockholders severance Excluding $X.X in results share offset to was were XXXX, full the company costs of total and costs $X.X stock-based more net Total or below nights year than cost slightly common X% by Cuba. costs additional XXXX. mostly of $X.XX increased Quest a higher the to primarily compared with Quest, despite prior X.X% versus the loss charter higher year the compensation. X.X% depreciation as the million related in for operating amortization, and compensation, taxes ago, and from operating Fuel from with were and overall a

We Looking flow of period ended use for of a over maintenance a XXXX extremely financial Free either credit at builds. X%. Including at is Water $XX an balance interest the well same or cash the increase build. million million million $XX million vessel is XXXX, to plus cash unrestricted our expanded further CapEx, We're rate the sheet. to in fixed our only invest flexibility we and was including loan export margin growth XXXX, free at the for was bear of This with our new year $XX regard positioned future opportunities. at $XX of million, flow January Blue In our cash. a equal $XX rate available our agreement in by with ago. spent on will where Norwegian to LIBOR year election, of floating delivered, X.XX% a a securing option an

Given the and stock the that prospects, reflective confidence company plan, strength the we of company's securities the warrant our and X.X our under balance year and the shares XXX,XXX and are prices of million $XX the growth our including warrants. long-term million our warrant XXX,XXX during sheet, the stock of in repurchase of beliefs value repurchased in and not the share have opportunities we

$XX XX, the opportunities that plan. It business our As enhance will of February long-term priority allocation capital that is growth and growth we external have approximately profile. first our under remaining investing million our to existing existing important in for note is

upcoming it have growth of XXXX that its important ahead XX% a in the and startup The as negative launch. is compared same year the significant have late XXXX, is Quest contribute National ahead from revenues cost to the December at year the pacing time launch We it of million will Lindblad the year ago, XX% ago. revenue a that cancellations a currently have EBITDA year will full impact of in our of year, same additional and at anticipate our operating in point as the we will with Turning current venture and segment impact inventory on to ticket the we by the the the XXXX. to for year, the note XXXX $XX in revenue full driven of the full It full growth the year already Geographic are XXXX. ticket increased year capacity of despite voyage projected

in regardless for current the voyage not days Starting despite current days some start until those from under recognized days adoption of to a million year operating all for before the anticipate year and due voyages of length. departed date under the taking in XX recognition also new operate the within in rules started that XXXX, $X.X are to only year the negative we XXX. place that were required following revenue year. actually in recognize year the impact the voyage We year-end Previously ASC revenue of the revenue

items, will the also Lastly, Cuba year, be XXXX XXXX, expeditions adjusted XXXX. addition all less we and in million, that environment, of expect capacity the offset Factoring to XX% XXXX, in EBITDA the company will Egypt booking million versus the we current XXXX the current $XXX of year $XX trends earlier. inventory which XX% current additional operating impact million to expect revenue and these between to partially million the by or total have we the XX% in versus versus between core Sven two growth XX% in and $XXX $XX growth mentioned and

XXXX. Sven went this and to on firmly out track mentioned, We might remain for now happy financial time public when that you you will be long-term to and answer company also, that your meet as Thank objectives were in the any Sven questions the have. laid I morning,

Operator

will of now [Operator Please go begin Instructions] session. first the question-and-answer comes Bank. Deutsche Woronka from The question We Chris ahead.

Steve Pizzella

Hi, guys, this Pizzella Chris. on is for Steve

As your you of through walk us foresee? can and XXXX you tailwinds you look the some into headwinds guidance,

Sven Lindblad

versus XXXX. Sure. much different Its in year XXXX obviously a

So see, end certainly addition a the side we year Quest the year the -- the the in in for will helpful July. Quest at revenue full because of the is XXXX of overall, headwinds that on be of launched the full would certainly

a the so a Quest operations be So on year positive. will that will full of have

the Sea Orion well as have will Lion. cancellations on also voyage We the on happened that the

be this year. not obviously, will place We taking

booking So early two has as the very strength we things of since that been seen remarkably those have trend part are the XXXX, well booking as strong. the positive release

occupancies, we to the items growth the expect from our yields things the growth will additional Available Nights due that significant and So driving in I just years expect higher upcoming be Those really the mentioned. that. Guest are we

inventory be for less year. slight Cuba, expect negative full do which we will the on a overall, certainly side, flip the On

because by of are of be change deferred XXXX XXXX. there revenues but out mentioned I recognition the $X.X because revenue the there's really timing being As into will stuff nothing lower million different

versus big in are take so items going there to issue, XXXX resolve in XXXX and that a really XXXX. really that XXXX and place that is then, will So are itself

Steve Pizzella

made potentially malfunctions? thanks. And of any impact you XXXX, just reflecting adjustments have back then on the processes or maintenance to great, internal reduce to schedules Okay, any future

Sven Lindblad

the Yes, unusual that Well, maintenance complete not events been Sven could first nothing all were any had malfunctions factor or human error. -- predicted. do have to just of with They here.

in did consequence those procedures we change any a require as a to our events. So not kind of

however, expanding team, are, of our needs and those We to the the Marine number, to changed. to capacity do reflective not thing a necessary in but both of growing, given is and were that because is not that fleet a wise be do, thing that and fact particular incidents which anything

Craig Felenstein

I terms vessels but can the above actually We’ve think are also efficient we we beyond our ships where important the its do operate our delivering at to that are we're perspective because dock guests, always operating is going these, kind most want doing of say into they the what to sure in just that putting disperse sure terms our in vessels we experience capacity. we the to and the I of shape any dry note go would best done to sure from to that in and to locations. make make ahead in of that that operate, inspections make maintenance annually, required right

agree was point which That we’ve on at is by been not the fully prevented the when incidents, to previously. that insurance speaks items other the and companies by impact you policies, vessels vessels of is done. already our lease these The been insurance thing have that the I covered fact anything that identified out repairs the would XXXX the fully have with doing work different with the these than that could saw look

the will continue So upkeep the repair company, we forward. maintenance operate efficiently very and to a in put that the we moving on that feel of history given confident we very vessels efforts schedule these and

Steve Pizzella

Okay, understood. Thank you.

Operator

The go question Citi. is Please from ahead. Greg next of Badishkanian

Jesse DellaPenna

This for actually is Thanks on my Jesse taking for Greg. Hi. call.

Cuba, going quarter, recovery at trouble saw you quarter seeing kind then you just bookings? looking some saw of of on what fourth you're there’s the Any terms just of in that there kind And in I So guys third maybe know market wondering the there? what forward? in

Craig Felenstein

Yes.

that mentioned in we slowed about last regarding as happening some in as issues we the The the that us Cuba Cuba quarter don't Cuba, quarter have as so haven't quarter. the operate well many of news the of the the in bookings to Cuba. first the the quarter boom we we far some reports warning certainly in of really bookings for for traveling of travel are call, fourth seen new seen Cuba that sonic government than are because the So for vessel advanced some first down bookings the other

than and of time are on. about is quarter call we the change we’re that the spending that lot we to short. the focused So XXXX, quarter was travel the do not in then that in not saw seeing We first of talk plan. first first so occupancies I window definition lower since for us a between last our of the expect will we quarter because XXXX, say but overall, growth the something Cuba, the

are company well very that earlier our travel is doing with. Sven opportunities done can expand itineraries place Egypt for find a guests looking example that mentioned to was to the previously for A prime it. really locations We’re interested our as in Egypt. of to that

we We an Egypt. have early as have on been XXXX some a charting not – well. we year just from e-mail some voyages this there for a in have positive are brochure a for quick up very two early And lined itineraries been while, and later indications vessels and vessel

there opportunity around for to kind of itineraries think always grow looking and we’re So an opportunities the new and new have we we globe.

growth implication a is perspective, So big there short-term minor be a we from will to not continue to financial overall, And do Cuba, to impact strategy. going while it's our that. long-term

Jesse DellaPenna

about just talk demand Okay, from overall do intuitive great. keeping then, about on with That on just you now. you – three what Can like the maybe of sense. the capacity yourself makes how years out after? see that concerns And industry and capacity XXXX

Sven Lindblad

Demand, sure I demographics not but supply or an on of – would will or – suggest demand try relates demand industry an that to as in I consumer it mean, see them interest to the travel. ever-growing XXX% I’m both capacity you both. increasing capacity, kind speak or anything but this what supply nothing horizon absolutely to and

the of I are is in simply new that the the underserved with that what increase somewhat supply entrants that broaden side, category is any is believe the entrants in fundamentally we're that on. harvest and we're As is far new fact as in view, will, positioned my I think that the expedition underserved, interest you market there our the and is this Geographic, market interest category, coming sort into partnership good fact because market the if that National well in focused and tenure, of as, thing, our

And we do view not as these a entrants so, negative. new

it would fact, positive, will the a as that. consequent we benefit In as category, believe a we of I broadening view and primarily

Jesse DellaPenna

Tenure, yes.

all was That’s I from me. talking Sorry, about supply. Thanks.

Sven Lindblad

Thank you.

Operator

The Capital. Imperial of Kelly ahead. next Please question is from go George

George Kelly

guys. for my you. I Hi, taking Thanks for have just a few questions.

follow-up just pricing to of the the you environment previous healthy? seen your just from seems any on competitors? first So Or have pricing question; any generally pressure

Sven Lindblad

their out a the prices. will or be XXXX. into their they they But and up does not people in new Most them a any to-date, have lot if expectations, invariably, the happen competition short are of pricing They're yet. are What start terms lowering XXXX Well, future. coming in long-term guests, of we seen attracting not entrants here lot pressure. the of feel entering that of

of to-date. any that So we seen haven't

Craig Felenstein

other I the experience our that not point – on We that we we guests and thing is to. company exceptional amazing an what for compete delivering price. on locations compete history opportunity of would given the One and deliver to once we're the out

place at a been the in pricing night. of will we we're But the yields important the are delivering guests certainly obviously, reason and that, think end I because the experience have yes, to charge the that high market is per of yields regular the And occupancy play our to the demand that traditionally factors marketplace. basis. it overall we those can on note into is

George Kelly

keeping up you with I then, really that prepared strong hard you. of a got remarks Okay, And I just be – to continues in booking some time numbers. the environment the had XXXX. in the Sven, And mentioned

then so just been industry Is you're felt So feel how what give time you you've where wondering a again what the you at look together. far this you current now. this And long kind environment sort if seeing does do if demand the just about for looks coming could it – just, like you in seem year? of and of Have we're is – it everything like? us

Sven Lindblad

Yes. Great, great, great, question.

numbers variety getting it's from you you're the sometimes sources signals and tell things. things a just certain Sometimes you certain of the tell

long I've so this time. And at been a

was factors in cycles started really of of I So these way. through – in business external getting there – a were because that business I've this lot XXXX. this And stressful were this whole obviously particular XXXX since all gone a really, year the

and on Just higher and will is that very coming bookings XXXX is future we level certainly that is a in environment. to terms just and took good The kind and there – thing. That optimistic were visibility for very, for that numbers it's while, began good a far sort positive it at was and a and to a be XXXX us, the and bookings they behind dribs a for been time and us in getting you clear very a in positive there very is lot feels of the the XXXX just them dribs. in were of very, good advance a of And experience. of certainly, basis I mean, very, for place to really that. approximately multitude indicator. dribs just of And lesser unprecedented own XXXX same be very, are the very, things And to-date, up, malaises, of and if for there's daily it thing XX% feels my a in very

Craig Felenstein

look Let you number's as ago. me at you if XXXX exceed books at for just today, XXXX, have, what have a XXXX bookings we we Sven And actuality, that time million add the on earlier, from the same that we that we today, year more look have XXXX. $XX said little of XXXX more color full perspective, for the already year they when said in

partially demand certainly. in partially the So increased a we're perspective, to to the and due from well booking increased capacity very the space due doing

George Kelly

you Great. Thank much. very

Operator

Please ahead. [Operator Instructions] Greg question Our next go Sidoti. of from Pendy is

Greg Pendy

Hey, call. Thanks my guys. for taking

you quick of that Egypt new of likely Just market terms to – Where can't two sort far duration is regions. two XXXX questions. get it that in really take something been have as testing One, to as are of shorter is trips? just you mentioned that There enter weeks? the into sort

Sven Lindblad

Yes.

programs. the decided series our early period was XXXX end and Sea This we ships of in programs shorter experiment Initially, that in intended XXXX. – at we So be laid had we was the Baja to some smaller shorter and of of with one of actually, up, to California Bird. a to started

create I we Pacific and States, the of Baja that some to before and continue West called significant organization in California. really focus continue partnered Exhale that in mentioned and in component. We've XXXX think programs now fall the we on wellness Coast the decided an of United it programs those to the had voyage Northwest with with to

for accelerated going will honestly, extremely sort to the they markets, So valuable because which off in us the short-term seasons. actively of We be term, fly significantly. of shelves organization, they through the – believe, the we But will build in are these doing. the particularly new require they key edges long we're not

Greg Pendy

large that one Great. how help But about about the of a build? thinking just thinking XXXX believe on should we CapEx? That's should Can Craig. And then in just we I down bit us had ship front payment. terms helpful. that for maintenance XX% how be versus a little vessel be

Craig Felenstein

Sure.

of in associated then year from depending that's somewhere all-in. headed low the current one company hover probably CapEx we the the to that the – million option well startup having vessel look rest that – to in somewhere blue-water this is variable cost we want of the at for factors the related or The When we are year, But of exercise that the range, Venture across exercise million CapEx blue-water be associated certainly million years $XX CapEx around outstanding Ulstein, then have the in on those to $X year the year, have it whether remainder that then, the remain the couple around double-digit new have a going we anywhere probably we in associated advantage not. the know to the spending build to impact on we'll side somewhere current maintenance on those, with whether you of some $XX on we the does vessel. build on $XX to two high-single but company of on build million So And the depends options the growth really really $XX million-or-so. that that. have with If payment from will down we which three two do year. would the certainly that, with the

are related the that, they really growth that's big the aside Venture CapEx for primarily from so variable, be the current CapEx And to year. the would in

Greg Pendy

great. thanks. helpful and That's Okay,

Operator

time. There are closing remarks. back no the concludes to over Felenstein conference turn like for additional question-and-answer questions at session. Craig This this our I’d to

Craig Felenstein

if happy joining you us to have everybody, later And today. this morning. follow-up for questions, I'm you, Thank any talk

Thank in call give Just you very much. the me office.

Operator

today's for The conference Thank presentation. has attending you concluded. now

disconnect. may now You

Lindblad Expeditions (LIND) 28 Feb 182017 Q4 Earnings call transcript