- Earnings call transcript Q3 2022

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Operator

Hello and welcome to today's Lindblad Expeditions Holdings Inc.

Third Quarter 2022 Financial Results Call. My name is Bailey and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for question-and-answer at the end. [Operator Instructions] I would now like to pass the conference over to Craig Felenstein, Chief Financial Officer. when ahead go please you're ready. Sir

Craig Felenstein

before Berle Bailey. joining on financial us you, With with on is some liquidity Good will and results Officer. quarter follow morning for you me with Dolf the today call call I thank opening and the Chief for begin our open for we call. Executive Dolf everyone Q&A. earnings Thank Lindblad's then Lindblad's will comments third XXXX details some and

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

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

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

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

Dolf Berle

and Craig. the call for Thanks today. morning thank joining Good all you us on

our systems future above are our and we strategic experiences just globe Craig financial happen. across higher returning of of across on businesses, our On The accomplished across the deliver EBITDA demand do sharing acquisitions who summer amazing QX. progress gone diligent made our variety ensuring operational growth, to will rewarding an did capabilities, efforts have we our details be broader on only further behind year and Galapagos, attracting million included to our platform, extremely The exceeded excited only significant one building in company, performance. which by strong across had returning entire focused extremely a audience but operating we marketing earlier. the highlighted has on occupancy efficiencies, beyond third been across a expectations QX team maintain profitability, that greater and and and But Arctic experiences. to last will months by across results strong strokes, the the factors partners continuing was all Lindblad for extraordinary grateful the to focusing to multiple while land-based execution $XX.X we combination Not quarter the this for and driven Alaska, generated, the entire guest front team foreshadowed I'm the a the make Lindblad in we guest approach seasons of we that, guests earnings of well. this about fronts by broad on Expeditions they progress team in and performing QX delivering talent company support profitability anticipated the EBITDA levels that on and our initiatives. few the for efforts the call,

Lindblad to ICE are a made past who Endurance Expeditions voyages beautiful be. Geographic our in encountered highlights reminder passage. capabilities have how the and their the we this in citing Resolution planet. the our walls was XX-plus-year and how citing Experiences voyages of to such guests up made as National largest chips, team operational National memorable and our into these by Northwest of quarter Geographic our of of our newest possible part inaugural our with continue this the exhilarating NAR the of the delighted of One perhaps from ever and guests was heritage number the This advanced

certain of COVID changes COVID the testing, dynamics. towards relaxation mask which comfort on quarter past this confidence quarantine on an Chief in As restrictions these fleet-wide. travel including in operationally most were to the the returning made of significant among in we operate, adjustments notably removed the executed in company part countries and The time, to raised we and evolution rules the the around with same concerns travelers. of requirement our guests. where were and consultation marketplace medical certainly the capitalize our mandates we levels the able the the also of we to policies also of for the most At U.S. to before listing experts, protocols course test quarter, over close

A a only will guests. enthusiasm guests pre-departure across has remains severity naturalist voyage our the is shift safety of fleet our crew on sharing COVID positive and world's to guides, the noting we each psyche voyaging. amend for in in and testing of zeal necessary. guests and part recent are great the relaxed of lifted. shift guests and return evaluate broader during reduction the is protocols necessary the been natural and created to of variants We we manifestation the this with experience wonders, our of the requirement continue companions. tremendous masks this immunization The to testing have learning of seeing There have Overall, traveling our a from our most all as removed top the our are now levels, and priority protocols, to a combination as and wear

to with not population adventure who there and was back we certainly demand Part the that last growing is that to are travel trend years. again. demand up But for be half two and this onboard also experience travel. the this up fleet enthusiasm this our appears picking future a built are travelers are but interested day, over to seeing prior pent-up of of only pandemic, regards We seeing a to excitement every

guests, bookings travel seeing looking a only immersive but not for our returning new also who experiences. are We first-timers of and from whole loyal strong cohort from are authentic

QX remain prior travel very XX% we accelerate next and ahead for And at capabilities. XX% a XXXX. booking marketing of in the a During the were are me in bookings There the for bookings our year point in-year and to a further we steps third for for XXXX bookings travel XX% quarter, to gross XXXX increase Overall, compared well-positioned ahead we pandemic. with saw for increase in touch same to are taking let upon of where bookings XXXX variety three. year the

of are reaching very of search in successful has email wider we a our and digital our refinement Lindblad First a marketing, traction we on print our the in approach; a real audience our at and a qualified see guests. brand, messaging stage transformation with of omnichannel blending the in can us differentiators traditionally marketing our approaches behind engine focusing marketing where

the head have additional Second, and Commercial of brand Brodsky leadership marketing and goals. also Chief we talent sales sales global Officer, invested Noah experienced in and new under adding communication in both by our

greatly the Third, and friction greatly frontline their guests has in contact have our guests of these have booking experts. in of the guest our center, increased This number highly around our reduced messaging any experienced for guest-facing impact trips we and leadership voyages. improved added life-changing

that impact Russia-Ukraine better results While business the optimism addressing to had is in important performance still the would been on been even the we the prevailing have Despite are conflict financial sentiment it this challenges QX, of not it the for in strong have there is know environment. is voyages are that voyages the on for any five impacted the The we eight itineraries and moving geographies the and news future guests of currently passage National ahead. our restrictions the good Geographic majority were voyages including don't Northeast on cancellation Japan foresee rescheduled Resolution. of scheduled

an XXXX quarter that with impacted the is of Another along increase parts item guest cancellations. in

run While than cancellations higher the gross to cancellations reasons most pre-pandemic and related every travel looking refunds, air to of exceed concerns. seeing but to cost later with levels to bookings cancellations continue we are are of sustainable which are often the demand noted not the for logistics COVID far robust lingering for dates, voyages pushing some majority travel. and expedition and speaks these The their week,

even when continue impact to minimizing locally also fuel manage and are sourcing and higher more abate chain a headwinds, fuel with We chain costs bit high begun supply we costs the suppliers and advantageous. still closely supply working to by have while through

fleet platform me and the been companies. in immersive options watchful highly the initial also short now She been dining eye features many diverse of the under across years. our indoor, exploration wildlife deliver the stylish of tools the The many August for our all-suite and nothing view amenities ship to ship with and This have incredible comfortable to of geography. along outstanding. and places amazing ship turn our seeing the landscape whom II. newest signature Let company, momentum and National with company We're to crew land experience strong has staff Islander experienced in public of additions during expanded been with outdoor renovated has this Galapagos launched XX-passenger the the starting to response our in latest the Geographic purposely and

know, As walking our world. parks many Journeys with across the and US Cycling of primarily the leader Beaten adventure national + of Company, acquisitions which Adventure, on last tours DuVine Cycling you experiential platform Classic deepened we the and Off year and Path, travel broadened focuses a of in opportunities the

cross-selling attract these of of capitalize we Following demand growth aggressively, used the small Natural They to the our of able travelers already carter and out ideally significant are groups resides that opportunities of with That leveraging has to Habitat, and remote scale locations. our the as to is experiences given to been have travelers unique who intention Habitat started in companies focus on the want Natural their including blueprint on out get support drive the and large all companies build in explore these situated pandemic. coming to the company. growth

do we begun the future We contributions our about together. Lindblad Expeditions. these can have XXXX very just entities to from already in combined business By we what of are and optimistic the significantly way surface scratch back for surpassed land summary, the of have

technology number from importantly, were have marketing we just we and have invested the investment when times our our investments months capabilities operational stack. building and A a as of at such the the on pandemic been and Although website in time challenging But capability leadership company at company. in marketing the new the of a systems these in standpoint. building technical painful, focused as

by keep still our and I are opportunity the success safe our ability and remarkable this over generating there excited ahead, experiences. we're call know by and will company uncertainty drive the We're in well-prepared the we the ahead. some crew we of And to turn facets growth and While is guests to momentum we years upon practiced highly build additional to to months Craig. all and earnings the across are guest energized deliver in now,

Craig Felenstein

and we sheet steps the we to offices. have without not strong the while given have the and robust the forward moving allow we adventure to fleet expanded the company the to possible as And in work sustained, are diversify we would the levels. the a increasing demonstrates across last pre-pandemic offerings Lindblad's Dolf. At us diligence quality them pandemic, significantly potential to our for capacity like return I to fleet to extraordinary and balance been strong Throughout with resiliency the years today should that. short-term product audience were the adjusted operations financial have strong on vibrant financial growing with delivering quickly to from as done taken growth travel. and further this earnings our our focused potential. over our third sustained well-positioned platform thank milestone hard weather quarter over several ramp capitalize of high teams strategic dedication strong consistently we opportunity and the few long-term This financial last employed time, on just uncertainties expand fully a operations our Thanks any have a positive would and ramp EBITDA same years efforts. emerging their deliver again of and The company, once for results

operations, At our The have grow Looking higher and XX% and of you the we as was And $XX.X or results Occupancy habitat $XX.X revenue just in a or across experiences expanded to increase from increased Total guest $XX was offerings. XXXX company land-focused current than Alaska, we are million increase France and in surface part Path the the available versus were and QX $XX.X have DuVine yet current increased quarter operations large to XX%. and opportunity. trips included by versus year-on-year quarter back million segment, occupancy higher $XX.X Iceland, revenue million quarter counts fleet. of million the revenue Lindblad Italy XXXX XXXX, the parks, additional year of the $XX.X at million the ramp our fleet third America. XXXX. and fleet new expanded ramp scratch the the The in X% across an guest quarter trips quarter and opportunity while the natural begun $XX.X due million ago companies not million of $XXX.X to this million across capacity third also primarily revenue Beaten million of nights additional year-on-year to the of to can and pricing US in and and levels, due national the led yields. levels XXXX, quarter we to segment, with of Off from land which $X.X the see including in Journey bike Latin Classic trips Europe land in tours Galapagos included same

million the the an $XX.X our return the we results operating inherent third occupancy as demonstrates ago. adjusted price third points. during strong across levels the company to EBITDA. quarter of to million a The Turning significant growth revenue positive model adjusted to and high in $XX.X business continue of drove quarter, maintain EBITDA versus increase The year leverage strong ramp

increased related quarter X.X% as higher Fuel or a deposits revenue of diluted ramp costs and available spending and a increase ago, revenue depreciation payments third $XX ago. fuel higher the common in third to stock-based the Total company new quarter third the the $X.X from partially current versus related of million quarter $X.X marketing $X.XX prices associated search share, an increased offset and as searched. $X.X net to Resolution. from ships Looking expeditions, for to million G&A operations, additional ramp operations and September ramp of and upcoming of third drive trips. improvement available primarily of includes primarily in direct reflecting higher in included a to same improved related primarily by dramatically reservations to of diluted million increased increased the X.X% $X.XX in third year the future due related future a the quarter credit refining expense quarter cost the year versus versus we itineraries and the increased third mail as rates million in which and operating to Resolution in million related a net operating and The at land-based additional loss related year per also reported interest the to in well XXXX. period million, higher the of depreciation to XXXX to the a the million, to year in quarter ago, due year for delivery card year stockholders stockholders borrowings, XXXX, the of included commissions utilization of travel. per was revenue with the taxes final income, primarily marketing or mostly compared And million the The ago, $X.X number February, to quarter amortization, loss quarter our costs $X.X $XX.X to on or Geographic fuel expenses and versus $XX.X the and commissions personnel million, a the reflects National in of this quarter the to share, versus Sales lastly, net cost $XX.X $X.X a in higher a year ago the launch higher of increased XX% of increase of a and as led ago, the interest expenses related same operation. tours other quarter debt one-time versus increase in business, bookings. before side excluding million compensation increase and items primarily ship by costs ago,

significant primarily cash, operations Turning deposits as associated $XX with million, used in travel $XX quarter itineraries to predominantly and to voyages $X.X remain originate primarily restricted principal the mostly and guest to in that the for operating $XXX spend on additional QX. the by We digital as of well to any of and in ended the balance operations card cash credit sheet. short-term reserves. million costs and incurred given Cash the usage million, the payments voyages United by million. as bookings. versus the in payments place spending the interest second approximately payments on notes well-positioned ramp $XX third traditionally included a upcoming and which on Geographic cash to and August Islander II Year-to-date million, well CapEx in is related interest semiannual The reflecting the our decreased the million, land cash uncertainties. million the marketing launch, first principal for travel, senior the takes of operating drive for to million We initiatives. our of weather future and which million total $XX.X including with included CapEx was quarter, future payment ship million quarter, deposits half of end interest and generated and QX offset States continue operations CapEx in the on unrestricted are payments spending and summer from of of $X.X renovations $XX expense cash, $XXX of year ahead $XX $XX of million, due growth net approximately National our guest offset as was

by across sustained exceeded are platform. our momentum we operating ahead, Looking the

return season the our our the first well a positioned results as that demand. in and current before do cancellations year. anticipate fleet heavy Overall, significant across Dolf strong quarter earlier, dry the adjusted the as seasonality given XXXX, for the companies, the of next guest fourth transit in are and dock in mentioned quarter to well Given we slower EBITDA short-term of for business, of higher land of our we XXXX times including most loss profitability

our in have same Bookings is pent-up explore percentage the sales reached to and back XX% portion week, in books to out for similar world's revenue anticipated significant every significant bookings capacity the our is geographies. question continue a to the week for of XXXX XXXX already on XXXX, nearly demand having no in and get We amazing available despite is it there sale. there exceed more was for of that XXXX and what

are thrill While there a once the our guests experiencing exploration. has likely be world will again short-term and choppiness, reopened of

to We any forward strong an moving of along with and build headwinds time liquidity pandemic questions your and position the immediate weather any I prior would Dolf ahead. fleet have. value we and additional expanded have you months this with upon in offerings, set a now results years happy deliver well-situated our a shareholder morning. product booking to And may ample to for Thanks to answer the and broader and are be

Operator

of you. go Wieczynski question Steve comes Thank first ahead, Instructions] from Stifel. The [Operator is your line now open. from the line today Please

Steve Wieczynski

morning. Hey, guys. Good

they has plateaued and well. how out then, those to Resolution as the also impacting be far booked return the quarter? then, So, guess, seeing these quarter been still now. to maybe been to fourth starting Craig cancellation now or guys accelerating, if right at I are Dolf, have want I trying this in fourth have the ask what levels? how And And rates steady, the or are understand is, cancellations to so uptick that point for I'm about you could normal have And they

Craig Felenstein

Sure. I appreciate Thanks, Steve. the question.

What trend to regards it the we're With it's or yet early taking bookings seeing to to is cancellations the every the important improved seen pandemic. the say we later of in either same -- the not remember to these trending has that going back back was cancellations just are part cancellations, we're their What the cancellations people levels moving early cancellation is, people home. these actually in and XXXX. seeing, have are that money QX. that part to pretty and with in the earnings when majority for to we vast the XXXX week are of into return since much of front that always prior reported August not their on cancellations we So

the a to over her in be, We With maybe like it the So you same the the we it pre-pandemic books voyages that the it her we'll back the fourth voyages had launched start fairly see few to the Japan have very the and move, was to a occupancy with not now level trip regards very two, doing initiated levels. that sale. But QX regards in be several perspective. levels, from probably where us. the that and from is are a it's positive trip the want done that in profitable voyages level normally Resolution for are only trend but QX, anticipated earlier Antarctica months, looks not will done from at to last occupancy three quarter. for actually And much a a But nice how last is for in originally levels voyages quite well quarter. still year-and-a-half very four to level would months, to have booking on a in the the in back significant was fourth she's for

Steve Wieczynski

point. suspect upper maybe to been here could would your buy which I single-digit while Okay. you Got would that second Thanks stock you're And stuck with stock think, then your is, that, February for a range of Craig. And, allowed in very XXXX, And next or at guys once believe for just question, year. I solid to, kind a this I obviously, for the start around that, outlook of program. has buyback you. the

just potential start some thoughts around maybe for up. back buyback the the So to

Craig Felenstein

Sure.

on taken that a until expired has precluded who the are February the paid of reminder, our point. that we those we of not -- you for because XXXX, Street from buying aware, are as in we back back and Main from loan year of had So shares

if the and opportunity front company. look we of absence which make have have next capital of that this to certainly able same we back of will at potential February of opportunities shares at something us that, through look we capital are the organic allocation, we regards we not opportunities, So is, lens, available the overall, to have until the I to if say in look to What is always to with growth that the company. shares we the buy of our year. is absolutely that to increase do. in buy the will growth opportunity that invest want you back That In acquisitions would

have something done that the the from Certainly, in that We there we the that question is to potential significant that is to stock opportunity And no that prior would given company. look think past we pandemic. future. today, where have of here, we the do sits in a earnings the the

the You opportunity that at the We we in generated there. beyond, quarter. generate third can as in growth XXXX XXXX in significantly from we're going and and look to certainly earnings see that then the earnings

So itself regards to February. that that once do think presents attractive buying stocks, the in with back starting we an for stock us opportunity is alternative

Steve Wieczynski

Appreciate guys. Thanks color. Good it. great. Okay,

Dolf Berle

Steve. Thanks,

Craig Felenstein

Thank you.

Operator

Please ahead. from next of The comes the question go Ryan today Blair. from line you. Thank Sundby William

Your now open. line is

Ryan Sundby

and there coming resolution impact rest come close is that's has And Hey, it that having demographic guys. closer on of certain that's hurdles some to Is really back? really back? there pulling you a the clear Can to maybe were just of Yes. here. the Occupancy on that congrats from that Good of continues quarter geography guys Endurance walk need to nice you to Is there you to move where thereto? us in guest impact through XX% key XXXX. morning, an a here and gap?

Craig Felenstein

Sure.

occupancy low-XX% at for that we levels, look across the that believe is that than the And offering you back a travel which match. get even the we we in can demand we that we occupancy levels. higher believe when fleet, ideal expedition given obviously, get us pre-pandemic will and to pretty the So, have high-XXs, will provide

to we months. are When us is for window that -- you have booking that nine think you we some average remember, about at one tends today, of is back that headed that look the headwinds certainly where the be So to.

So which a lot bookings guest is what -- it little pandemic times a certainly bit impacted here done rates a seeing than our about still still talked that you're that we're of bit Dan the today, hotter has were when seeing. was little demand. the cancellation at

the you're take make more see cancellation the past. Endurance the not last you occupancy the puzzle you we had to would the departure, a And resolution, rates occupancy mid ship months we levels historically. added moving inventory have would we've constantly likely is high-XX% to say normalized already. -- fully same you levels Alaska, not that to in which you back to the back the XXXX to with with to pieces three rates you I to the thing around the level, a expect occupancy fleet. in somewhere area, of region we regards is polar XXXX that have and If in is have back move you're want that the the the six your in level of Because inventory of added company in at within high-demand a sure what When that get would then because will

that time make sure to delivering maintaining that do it's of opportunities the to we're in certainly same the you but when look that that perspective, from on we a occupancy high you maintaining that revenue So as look past price and And we've point, high the it's levels, in a important marriage the also We right? at capacity. also that future. at expand pricing think done

you occupancies be look to in certainly XXXX. really when out high back expect at So, would we

Dolf Berle

Dolf. Ryan, this is And

things And brochure the interest we're that and we've good interest real audience product. experience allow demand. of people in with people both are our made capitalizing Just compress our that to returns a adjustments believe our and catalogs. add in really search that some to we will a marketing that such this people we're on greatly to We investing had the think nice reaching this seeing websites we're who that the marketing, increasing where for broadening. in which is we've And have us historically, receiving those cycle booking

active to making that the try cycle efforts we're Craig to So, referenced. compress

Ryan Sundby

helpful. Thanks probably question. kind just Steve's That’s Maybe on Yes. follow-up one follow there. very of Craig,

If trade the trips trying the or are in you're spending take or quarter seeing that if any outside to you you seeing even down the did duration cancellation. maybe look there? at any shorter or mix of future itineraries demand either place of price Just understand pullback into lower kind that curve, in shift

Craig Felenstein

No.

be think I you're it very at certainly are who demographics you when booking, to domestic people similar. What relatively seeing the overall continues of the is, trends are bookings. look high

business, high repeat what repeat different proportion that a the remarkably several have see consistent have with historically. booking booking probably You which of months. I which very The we've is continue business, thing window bit would over seen, was the the last say is is XX% shortening been trends you little to one a consistent. overall seen

compress little You of that were nine-month seeing window kind a bit.

However, which mailing, in annual -- you explorations the of XXXX excited pretty the direct every mail offering get time that bunch into end robust when we every you is XXXX opportunities that for quarter. a the about do really the see and just sent bookings And people out to a in do future. we start our of year fourth as

again. But only lengthening is window a real seen. that that's the think bit that overall, change So, little we've I

Ryan Sundby

right. All

Let’s Thanks. state Congrats here. guys.

Dolf Berle

you. Thank

Operator

comes Please today Oppenheimer. next Thank of ahead. from Tyler you. question The line the from Batory go

Your line now open. is

Unidentified Analyst

our quarter. very on guys. much morning, on is Good This for congrats taking and Tyler. Jonathan questions Hi. the Thanks

policy? compared wanted to pre-COVID? a you policy high-level And and in follow-up be attributable return the could a us to on elevated to much any of normalized just like the policy cancellation remind I difference to guess how for First driver your cancellations. me. on potential commentary the one a I Can cancellations of more

Dolf Berle

It's Jonathan. a great question,

So in more much months a the pandemic we cancellations the one any that the recent cancellation in is the reasons time over had feel we were of that high course lenient policy than previous. of

levels off We plays policy, XX% what's now But, there's which have reinstituted of and stages reinstituted requirement more pay. of to a has trip various we've length rigorous is a before that now strict time sort that policy of way. different -- more of up to cancellation

recent levels, are really now bit. more yes, previous terms who that remnants seeing any returned and a a just policy. lenient the we're And to lot was of above policy the so cancellation we've in strict more of quite calming people what a down booked months of that's But under in cancellations

Unidentified Analyst

you walk And Okay, great. Craig the was how the puts loss and expectation of they EBITDA it the adjusted drivers color expected quarter. in gain. that for all an fourth believe of primary And Thank fourth Can an there you XXXX kind just maybe then, Dolf. assumption? takes and quarter from where the I differ for the the EBITDA you of through mentioned us

Craig Felenstein

the look given I quarter fourth in in usage us you the at traditionally say fourth When fleet going whole quarter. in the just positive what weaker of lot the quarter the a EBITDA the we fourth quarter, quarter of -- on deliver XXXX, have we while quarter. did Sure. is Traditionally, for the overall is would dry a docks

polar the region down world a lot days have to We parts cases. the moving of other from many in of transit are ships as

tend drive the lower going occupancy biggest of to So does fourth fourth look XXXX, When the the driver to the fourth lower the for is fleet be across you quarter. quarter at in that ultimately results quarter. that

operating time have on not So would will will from And to lower and down later she also times, transit obviously she have natural Arctic you moved the the – date profitable on somewhat Japan, while is quarter – you you but resolution of that times have cost earlier. drydock the occupancy was at operates voyages what that in she's time the natural does have say have front. because levels, she a be transit a I where

the fourth thing The have Habitat fourth for will quarter. will a certainly out companies remember is the land to of strong in that Natural quarter us other

is companies we before them other ratchet a slow acquired. The It seasonally land that up quarter for again heading XXXX. into back they

combined would in expect, be of So behind things normally than to that quarter. those primary then cancellations all the projected we still which the fourth drive drivers rates will are And mentioned the earlier running the certainly occupancy going loss lower. harder are Dolf

cancellations it possible we have things If upside current it we trends a those strength But in given that last-minute QX. in Now bookings to loss happen expect have could is be certainly we some can here. drop. some

Jonathan Jenkins

how there acquisitions you've last does I those seen land-based if bolt-on And compared on one do very The strength offerings new to could. your are then additional me acquisitions? early for strong. so the color far Any expectations? aside the obviously And original increase land trending to your

Dolf Berle

we're with extremely slightly recent group is entrepreneurial to of fruits we're land than who are question. These and pleased in great smaller pleased the way realized that run that. in a We're those the the the companies. the and those that's different very CEOs, they And cruising seeing Well, with we the leadership continue momentum there months companies. about felt of travel around psyche guests

expectations here spend so And with we actually more we it and of from believe that time track on them I from learn think can we as they another. than and more in we're terms think one grow

potential guests point idea to between relates of and our able a cross-market of company is further very pools still it platform maintain As being acquisitions, to view the one. a of that strong we good various

being remain And strength sheet We're of in of terms the pandemic. the so liquidity from emerge we around we the opportunistic. as thoughtful balance

most balancing way. so to with for about that Trying company prudent think financially. that way would expand we're growth look the just be strategic continuing the regard for we're next move that to in the the helpful to in in the certainly And being is forward what marketplace. and that appetite But company

Jonathan Jenkins

all Very color helpful. That's me. for the all Thank for you guys.

Dolf Berle

Thanks, Jonathan.

Operator

comes Woronka line Please today ahead. from Bank. The Chris question the next you. from Thank Deutsche go of

now is line open. Your

Chris Woronka

so Hey, far. good details guys. Thanks the morning, for all

itineraries. and – you about and parts of that at generally on yields having some have of as Asia, region can are you even this going thinking a itineraries. that say you on XXXX recover a you higher And of And at Baltic question further you a the do look a – as to what of I But that can So I notice those point. forward of impact what the are when question to just beyond regions? some kind about it's you yielding issues think you the – guess with and until – maybe think call are point do make adjusting we're know geographies those and more

Dolf Berle

room saying time there within Thanks. first me as our is we Antarctica, in the by know for the over begin and is expansion high that current stronghold, that Well think do Alaska, architect. Galapagos which let you

And so demand. know that real we is there

have in lists We areas those forward. be scheduled going in many waiting cases for are ships that to

And itineraries. really so continue those think to of we can hard strength about how will maximize the we

on. do have keep really close are You're we that we geographies there some as matter to of eye a that a absolutely right, And that course.

I think our always part done of has the that. company That's natural routine.

pivot The of ability the things just contract I feel Northeast of passage Russia-Ukraine is the XX the knew that. into harder example we the about end that last a to One demonstrated pivoting had challenge. when flicked great the in we company of one months, strong example

vigilant. So we're remaining

keep We sentiment on a kind these track only right, in to of of get have going from really confidence not standpoint but governmental also get what's regions.

the months much what And next itineraries a moment, double elsewhere think the can prior pandemic. Russia, to we'll emerging next are the profitable for it but successful have across predictable how confident way it in and still on that over it's can most and probably ago and not less few less it's was I So we The better we a at is we be. the down more But of months. think such evolving world few world months planning the six voyages full than was the we'll in predictable. than sense It's be predictable XXXX.

that's realize thinking of it. I but so that's how a answer about sort nuanced we're And

Chris Woronka

the obviously costs yes. effort of forward. guess marketing guys sales you – Thanks. on marketing running. a Okay, big everything question it's back and I up going kind really of and a the kind is to as follow-up get been And some of

the there. the year, should the You do next off given we some business of marketing costs I at But kind growth we're that those of of mean profile ground focused what you on rate think do think margin dramatically? covered a now? or we you're changed seeing are has cycle point lot run

Craig Felenstein

Sure.

to marketing say So helping company, in think sales I the the going would that cost and and be higher right? higher of see Chris, to that which us one continue a higher. of that that to the got costs first you about you're we growth marketing you driver revenue related when commissions revenue, grow drive So bigger continue part as is to to sales a would commission costs big to is the is things of remember

So that is the first thing.

is when company opportunity to absolutely how there's look the at an grow, levels. say think margins second you The and XXXX we from we expand I'll thing

us in well The those as be they expansion. margins Certainly at to overnight. margin cases driver not revenue. is some back operate can some you that Now of to tend additional the you're have nice equation were you to going thing where we margin should previously going rates biggest to do XX%. if good for the and occupancy a And add ships over to is over shifts XX% gross get well

fill that natural So hardware – a the higher if diems. add per as margin continue the expansion occupancy and you to you can at at hardware there's the levels high

a positive is from is pretty margin and good a companies, big us overall. the the land-based positive expansion item perspective tend would feel those that big I we it success against There perspective us while a and one say very is from an cash margin that is that. EBITDA do So working lower operate growth about for very companies at flow to to a of

that. headwind is forward. the is there because So opportunity that natural to significant think minor we moving expand business we a do grow a of margins But there as

Chris Woronka

Okay. Felenstein you. Very Craig Thank - helpful. A Thanks guys.

Operator

line The the next Fuhrman from of today Alex go from you. Please Craig-Hallum. comes question Thank ahead.

open. now is line Your

Alex Fuhrman

really the on much I around places color some You give on kind around it has around world example. of Asia some levels. you've passage be the the taking Congratulations been or lost and bookings been the Have that? some you've for number? situation. the Hey, kind certain the risk of increase to those Russia underperforming driving have your to you in to my that you're above here. question. And pretty arctic, wanted course, getting of us high double-digit routes volatility strong for profitability Northeast Can guys. there an the regions because geographies that pre-pandemic of been in growth bookings, been as headline that in mentioned to about ask return Thanks which seeing continues XXXX

Craig Felenstein

Alex. Thanks Sure.

bookings So very, very the broad-based in has actually is been to nice strength see. which

and I seeing to in traveling that with not part uptick say, are now large guests, us. newer Alaska nice Galapagos would that the previously are You're in, guests Lindblad family really part of

nice and seeing you out when it's Arctic us of a polar guests, looking who the at in again. to with are to world have Antarctic, you're from as So look start And as regions explore to see there get previous lot well return traveled nice there. the the who a our

not are the broad-based. season drive seeing one we pretty And things. It's even shoulder been So relatively geography of is well. inventory some doing

itineraries we good we and continue about today. good about pretty for moving ahead for have the forward. So what We to really that lies XXXX in these place feel feel trends even we XXXX expect

Alex Fuhrman

Great. helpful. That's Thanks really Craig.

Craig Felenstein

Thank you.

Dolf Berle

Alex. Thanks,

Operator

Webb ahead. Christine next from The Instructions] Thank today comes go question Please Partners. line from you. [Operator the Artisan of

is Your open. line now

Christine Webb

Hey, Congratulations guys. on quarter. the

as seeing wanted a you you cancellations us were are what the actual what Just you're you are used the was? but portion just exited lot pre-COVID versus on sort you at? maybe word mix? of cash rate rescheduled. that maybe rates. of what Could them refunds? trending tell the then us cancel, cancellation the I know So back rescheduled XQ to you tell Can And follow up And of

Craig Felenstein

Yes.

then second They and what refund is canceled to natural do. at canceled haven't I'll rate. Let of They level They a the me the canceled. the the guests that refund. part want they and low, even When very look get are cancellation first level, answer into the deciding necessarily refund very, haven't had rebooked. that you

much that refund rates, and a when a we pandemic that seeing canceled regards the say With to time-to-time uptake of from well that question flow the It did we to levels. higher is voyage levels following out cash are one still was the is was So hard refund kind than what. at to little not percentage overall. it cancellation very, below rate a there those Japan as XXXX the not of What the height when to a It door where cancellation to a of cancel exception year. today, giving of still it's terms out have we're from the perspective. far well, you was The very down a in because there it people higher from obviously there high answer, we of to normal a -- refund was lot a related switch. is

was quarter look to it you way probably would speak back in Xx percentage today So it we're what back I XXXX. to that to when the back door I was the was cancellations Xx is the percentage to Xx Xx the look to at at it the what XXXX. look second best in bookings cancellations specific If say what probably seeing or as and we're coming percentage is a not of in going

down. to And only where onto it So started Xx in it about step back it example was see October I probably you look when in itself at that XXXX. can was for

be So are to the overall. where now several of in we last where over not them want but to they where were yet quite trends right months they terms favorable are today, the

Christine Webb

it. Got

that guess assuming then trip? they this their to looking policy of do had on options potentially some or the to see more And to for where what roll want in rescheduling get canceling lenient great. the the they during If they canceling strict are That's move booked Okay. keep reschedule, for they policy, that individuals or period or COVID leaning a do existing next. is choose they itinerary with to

Craig Felenstein

pandemic. stuck make those especially they firm to to with have who the and continue to guests changed keep we the sure our today. as That throughout new will here work need booking guests book guests from travel, certainly gone our to will traditional And have to our cancellation our very be flexibility pretty forward. same if this and to them said, they us moving a we throughout period, worked our that policies back the cancellation guests, policies is loyal. the But next period Yes, hold the we have because to that they've somebody to options with our we are pandemic goal company the with tend booking their very,

Dolf Berle

family For because some of occur, someone in COVID, comes in amount what has COVID. their actually has COVID, or it's the party worth with cancellations their or someone someone down

on we lives factor so COVID to going country are behind what's whatever to on biggest that the with any think given And in quarantine addition people's in be what's still might in with individual people canceling. going there policies related

a But relates be reducing And the of it so couple last to what future. good over months. that's the in those we to as going experienced in all cancellations trends direction of seem

Christine Webb

Okay. guys. I it. Perfect. Thanks much appreciate so

Craig Felenstein

you. Thank

Operator

waiting you. Thank are at There no additional the moment. questions

pass to Craig over conference any like ahead. I'd go closing remarks. for back Felenstein to So the Please

Craig Felenstein

this us you look and you out dialogue head we're and Bailey, you And if as continuing off reach this forward We Thanks thank happy have to we to for morning. you. call. questions additional to joining everybody with Thank please talk.

Dolf Berle

Thanks everyone.

Operator

conference for This your call. participation. concludes all today's Thank you

now may You your lines. disconnect

Lindblad Expeditions (LIND) 5 Nov 222022 Q3 Earnings call transcript