Earnings call transcript Q2 2023

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Operator

Ladies and gentlemen, welcome to the Lindblad Expeditions Holdings, Inc. report internally Second Quarter Financial Results. My name is Glenn, and I will be the operator for today's call. At the moment, all participants will be in a listen-only mode. After the speaker's remark, there will be a question-and-answer session. now Officer over at will Craig your I Financial Felenstein, the Instructions] hand to you host, [Operator begin, Craig?

Craig Felenstein

for Good Lindblad's Earnings Executive Operator. joining Sven-Olof Lindblad, the you, morning, and thank is and Thank Chief with and begin our call Founder financial on you call us will comments, current today Sven for With open details expectations Q&A. some Officer. we and XXXX then balance Call. sheet Quarter Lindblad's some opening Second with me I XXXX on before will follow results, everyone, for the

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

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

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

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

Sven-Olof Lindblad

and I we two welcome with since the appreciate moving us. I today the Hard joining to years discuss and in to call, you Craig, it's see performance you, you I morning, that been good opportunities of chance forward. Thank about everyone, and an company the believe the and participated earnings

Dolf team, best LIND recently adapting center. brought I wish Board And and well, role work his while would existing for exploring guest Dolf longest product the great like I posed new the for their our dedication I help moving for these the excited challenges broaden couldn't years. the the forward. couple CEO, the downturn Before Dolf departed to while of platform, to past experience and management the with our new the Berle, all COVID the company position commitment employees a globe, to success navigate history, guests to lasting enterprise through hard Directors Together return in that, to and our thank relentless to help be entire around wish from opportunities appreciate and by the organization the I virtually stewarded company we to home. maximize our our he pushing expeditions in and and keeping do closer daily further more our I him into we this era. portfolio by of

new by have Yes, behind So no occasional but a still First they pandemic of case, what do we era? I COVID the us. definitively the significantly longer impact putting all, operations. mean the overall

have in to ago. financial versus started $XX reflect with half we year this Our reality of already year the the results first where a of were EBITDA million

no providing with the and or growing expeditions. unique experiences there segment to culture partner, Second, to and with of massive with our five day, in nature record we guests providing that authentically poll travel. along high-quality The our are build our is and track is this to to expedition been growth means immersive in it our We've success. connect the by authentic, for Geographic, company with on other poised And commitment decades. on interest capitalizing National

business. to ways technology drive Third, it means innovative to support the our building

tools. accounting, including the and This system, new across and operational, quarter, system, as biggest reservation And system. analytics also This transformation, systems we included new our management company, sales, asset customer CRM, XX platform. new new that content a part of which launch, stack integrated digital critical a launched was a management our we data building marketing, and final new block in digital the

the the tremendous of better to gains sales promotional enhanced tactics, our we see forecasting, opportunities ahead, marketing, leverage service STACK pricing combined and effective to Looking and customer efficiency levels, capabilities and associates. for drive personalized more

our Our also implementation merchandise faster ever ways each pricing bookings, on has enabling price aspects each that we're departures, trips and already dynamically trip appropriately. our and cabin before. to supercharged and different online search for display to new selection, of ensuring voyages our than We're cabin information able

just era new propel doubt creative opportunities, to the but ways marketing I more It's mining focusing with the direct search centered the through generation, to bookings hearing modern capture convert growth. meaningful around means community mentioned sales much after in and than on creating Fourth, reconnecting distance, than first-time platform with so driving digital technology it's and and our most marketing which with e-mails lead prospects ever elevated approach more largely successful mail before. the that. historically targeted campaigns

new and in programming launched such editorial Food our Food of and Snake audiences, with the looking and recently Washington barring with in along are Columbia Oregon innovative reach to wine and staff special selections XX and by Wine, We as selected collaboration the for River Wine. also elements, expeditions XXXX, ways guests

At booking than doubling our of cruises force More we've on hired Travel internationally. our across and their before, distribution history-leading and shares with grow salespeople, the help partners. us sales are ever the times same advisers expedition these so sales we grow that people important are to relationships the in we country industry-leading size our time, Advisers can

and our visiting unique we boots immerse we of on the R&D destinations. forefront of course, limited back so for parts have to A in COVID, geographies, also critical In approach, years bringing new terms ground new guests these in remarkable our ways our the new the experiences. means to era been innovating developing the of world, offerings.

or capacity and redeployed in product we it offerings to experienced further experiences the our our our either our reconstituted new for ways era have for to ways personnel to as of deliver our means diversify maximize have We team our through our our through new guests. around Expanding portfolio. deepen globe and broaden team ensure platform land offering. this building existing exploring and unparalleled acquisitions And looking fleet

companies land we audience since strong and was pandemic, momentum that an the XXXX we levels. XXXX of significant Each wider months, growth on have product as four providing out reaching fine-tune travel from generated have remote momentum high-quality acquisition up opportunities offerings for The maintained focus to audiences. coming cooped had that we acquired adventure have and many in further

and to we perspective, with scale As whereby we growth. joining on meaningful from a passionate we look and additional best-in-class collectively continue will propel finding businesses our dedicated are founders, these companies aligned mission that us, can with focus to

sum is new by definitely for best here Expeditions? future. the is of what survival to what adaptation a Land where mean I those suited the So, time of area is This

We people, fantastic can to never of have turns be we have as always way and the always change mantra our it. a adherence some tenured of a and talented very it. Board the must respect that world evolve We we Directors the -- but must done knows wealth Everyone past,

we the are we by across we are to excited where While momentum not need our today, yet be. business

in XX%. it be XXXX up fleet our yet not is but in historical of our across will levels year-on-year, Occupancy

right chance example, as cancellation This we for of provide. is we large-scale the the long this are Other still out comfortable time gain And while past, industry. starting share, our cancellations, remains to headwinds success from levels practice every commitment marketplace policies. direction in the the run. travelers new given elevated coming market that inordinate headwinds in the have have will as discounting across pandemic we maintain to and as we high entrants and of the XXXX get of the still wane, of seeing we in not a the to week yields the are as absolutely our trying that experiences Some moving we amount the updated first such seen more no in slightly has have dynamic

to in I think believe has million yes. As we the be answer million $X we $X are EBITDA. without for the occupancy is to should of poised core where And sustained are growth. meaningful short navigate yield I additional Each going? question And and we doubt, the point term,

the is most the get have back historically levels achieved. to clearly, So to we valuable opportunity occupancy

robust we ways further increase of the earlier, to returning we earning while further focus to maintaining company. potential of I offerings As as on portfolio product to also exploring mentioned be yields, our diversify will levels, these the

motivated in call like to definitely for So most am are poised to and excited ready And Craig. and that, back this backed growth, and great with I bottom both to helm the be line, I'd that expeditions. turn we continued grateful and to with ship

Craig Felenstein

second strong and Sven. additional with growth growing our Thanks, land continued as use businesses. across our departures further quarter year-on-year during fleet of operations Lindblad's the broader ramped we

full advantage technological the and overall demand significant the have additional uniquely growth, on us operational potential year-on-year experiential As to made and steps growing the for earnings strategic high-quality diverse necessary we capabilities take are we has company. we taking capitalize to offerings, travel. positioned infrastructure, product the sustained significantly capacity, of expanded The investments in our deliver of

of which broader guest the quarter both and the versus operations quarter guest year growth quarter increased fleet in $XX quarter revenue total growth operating available per of net $XX ramp contributed million a At second to XX% of night. by strong available pricing, a the revenue $X,XXX with segments. $XXX continue by as or year-on-year million our second XX% a company of XX% driven was $XX X% yield ago or Lindblad million The to year across ago. versus Turning the million in specifically, a we increase the from increased segment, expansion second nights utilization to increased to

below Islands, national the we the tours to of early by quarter year and call. trips classic Lind segment, led the as land second trips of on the habitat the use to off the season versus The XXXX, of fleet $XX parks, natural broaden million quarter, a bike slightly in and trips XX% guests additional and the ago, Dubai's Africa companies, primarily Europe. cancellations Galapagos inventory Italy Experiences and in our revenue beaten Peru and last Occupancy we or path $XX million XX% across across shoulder was which to of mentioned increased including departures due U.S. and journey the Alaska the additional France significant

million quarter a operating year-on-year adjusted by $XX of is at ago. Experiences growth EBITDA versus second a the $X Strong what segments total significant the Lindblad million both million $X company year and was $XX second with of in million generated segment season. increase a quarter, at an the revenue traditionally leverage, performance a the slow segment, The increase Land increase driven across

ramp Looking of of of in led XXXX, ship operating cost by or the expenses the compensation, closer depreciation expenses operating and XX% related cost in $XX additional the well interests, second XX% trips. increased amortization, as a land-based and side business, quarter to primarily stock-based as utilization million a taxes, at the little before related versus tours, to increase

Fuel royalties in reservation with to XXXX, and costs included of second costs quarter the in during and some the launched the a associated the notably commissions of digital X% primarily most increased lower fuel and to related in Sven as the quarter. reflecting ago, slightly the our with new to quarter implementation revenue revenue as prices costs our and increase were associated higher marketing year The versus revenue compared Sales system, increased additional XX% which, initiatives, mentioned, profile. revenue. X% also due of of quarter integration

related on costs and quarter future $X.XX a of per diluted related to net travel. reservations tax operations loss deferred rates itineraries items, to $X.X net refinancing as primarily to borrowings and a net stockholders final additional higher improvement ago, our excluding share The $XX.X the available Total during per debt expense available of higher partially reported upcoming G&A share, and versus onetime and stock-based million deposits for in offset new for in related to expense by reflects million card costs increased in the versus export financing we commissions or quarter with ramp the credit operations, year improved company loss significant personnel stockholders interest comp million increased our of second associated to due credit $XX May. higher $X.X write-off year and agreements ramp XX% and common to payments $X.XX million the of in million sales or ago. $X.X for increased diluted

cash in the had the by short-term sheet payments an provided from million variable rate interest of that the cash export quarter as our balance also by $XX the to the a that annually. agreements The activities quarter in notes X.X% refinancing million principal million over XXXX. sheet. mature led investments, approximately rate credit first X% We in increase $XXX first with notes debt Turning in eliminates ended with rate solidified $XX further of replaced quarter, financing of and our $XX and we fixed end balance by million

the to addition CapEx which digital generated and provided cash $XX partially CapEx primarily maintenance company quarter, operating In $X million, the of the refinancing, during positive offset spending the initiatives. by of cash including our on was by million flow

to year of Turning XXXX. the full

year. usage occupancy significant We the capitalize our million. adjusted land a with regards companies. the nights are impacted our projections year, the will business, $XXX we on the by Lindblad quarter anticipated, and company more well land half excited These million reflect across as seasonality total ticket cancellation $XXX dry operations ramp revenues the in of of XXX% the tour nearly mentioned seen across the the booked into cancellations as its both the half anticipate and of seasons Conversely, and operating continue shoulder already on back businesses. time our fourth third we and have reflect in to and to The fleet for guest transit first more projected $XX from to between our for remainder million and we fleet, and continue growth the across sustained our the available has But of impact be XXXX. and and and expect segment million due for revenues will by less fleet quarter inventory heavy XXXX quarterly slowdown and Please with for the we expanded the complete full portfolio momentum of that season to results Sven dock between during year year and platform. note rates seasonality benefiting bookings the peak EBITDA as $XX year the elevated our of

sustained company experiences. And with take to immersive of momentum potential questions have. your and pleased Sven you of we positioned the Thanks across authentic are the advantage full Overall, our operating growing growth and the And be would and there we are I well be for we morning. for happy this fluctuations, businesses. will while answer may quarterly earnings expanded for the now any demand time as

Operator

Thank you. [Operator gentlemen, and Instructions]. Ladies

If please to question, your you planned your ensure local. ask phones to

line from Steven first from Wieczynski Stephen, is now our have open. comes TiVo. the We question

Steven Wieczynski

guys Hi, morning. good

math but did to we Craig, So need quarter, again. this last simple do some here

little million I the you Okay, do based point. nice first with saying did quarters $XX business, land-based we it the help I what, at Are to And last that's let's bit? will just have on really book last of of wasn't business where seeing? the only you year X million a this with something EBITDA at guidance no half especially of million guidance do at here a aren't your seasonality how year, super conservative? Can square midpoint. the in why so here seeing in the you're Really away the over idea $XX the full the the Are unchanged EBITDA this $XX trying being understand business you will me our for pretty position point. quarters, X this of business but is call touched. you fully your year

Craig Felenstein

Thanks, Sure. Steph.

the at look a cancellations when So, play direction. the when right obviously trending full of variables are number year, the you that look into Certainly, months. there's things at you next in

fourth one now. elevated really will drive However, feel for quarter, were they significant a impact in they variability do from going quarter, rates XXXX. people right to based still But change Obviously, the how when for that's of be which remain back where of better And will of big. heading we allowed cancel when quarter, third timeline fourth cancellation quarter. for feel that to the off those variability into the are the pretty fourth the

say, would the that's, I thing. So first

end fixed quarter nature of or short second of in of a term, last, lot The for given don't we'll call bookings, the is, so them quarter cost bookings whole that cost now associated the in what obviously last third the the our the come with fourth obviously, for have mile that the thing platform. the I

So those pretty remains that where drive will bookings less And end seen. outperformance or minute much expected. we either be up to

to What shorter been much We're the months which has more than they X lend somewhere bookings. had windows right quarter timeline seeing in not short-term seen than company booking the overall, people so the quarter would we're of of It's interestingly, right XXXX now, that traditional the regards are a to have and with now. is XXXX. some for for we booking months. booking around seeing X historically shorter trending bookings window the second first next additional But

we'll down, new really side, there would to things that new that timely nice say, of back it's regards we're say is will cost returns. rest some I'll marketing of in to X then then I out XXXX of on is the having that and year. in If house. of given say be those certainly we I the decisions, the able of we'll have prices little the certainly, decisions back those more or tools fashion. to to some continues, more putting bookings of look the spend the half that But in the out digital what really spends we the XXXX. have and make now, and ebb will fuel a Right initiatives would is And marketing with there, drive put a how up marketing may the some help year. the half to the So an side on impact make play, the most -- last thing

the will that variables impact the year. the of half some are of those So back

Steven Wieczynski

bit, 'XX, that bookings trying be look, book this year. And this for Okay. would very any a this But I but looks at good give on how historically? you to early just you're again, wanted then to point touched us relative for you maybe you color in to Got on a can little you. 'XX position understand where

Craig Bernstein

Sure. there But put we yet. We'll for -- to When you going have percentage more provide XXXX, where later amount sale, are behind for where I'm XXXX, you look from in little sold inventory overall X a are example, a of at in say, a But XX out we I ago. not we're, at bit a percentage a our where look were we when number year. obviously that years we significant XXXX, would the for inventory. of

good at versus think really gross perspective. don't have look were I So second we're were bookings for the the in pretty bookings dramatically for that for that over But from they shape in due we're the the seeing done XXXX. of back that We advantage to carried nice took pandemic. all place were When you XXXX throughout up bookings the gains. XXXX, quarter, that XXXX

say the in the trends it's direction. little what Sven, true with the to want maybe really, color shoulder relying about all on do the provide bit. really on geographies, heading strong past regards this. a So little geographies, right are, now, for to bookings which a are Sven one say, I are Right I would would seeing opportunity we're The and are a to tried and I'll talk thing, the which that? lagging guests, bit you provide little

Sven-Olof Lindblad

say, water particular, what guests. on geographies average, reliant more of esoteric make XX% it, more of esoteric. They're ships, up blue about about define past our past in geographies they're on Yes. more but season, reliable, more let's so is call our certain shoulder Well, that better the X%, really the XX%, are the think But overall on in guests sort when -- business. you about we

XXXX, itineraries. reliable those right? basically and guest years obviously future XXXX people we guest are and most to to business, with on X new past in in past so draw XX,XXX lost So we source the of didn't produce recently And people from

the -- these that there produced robustly historic now over bit be simply will 'XX of a has and will base is an short pace, period in in not to that So we're a it not of because because, same for built it's 'XX the the of little made loss being has base recency wins and kinds and getting again degree. making a But back now on a up for bit that more and is that of time situation, up base a obviously, that shortfall pretty soon again. but some of is into normal be starting

Steven Wieczynski

the community you maybe can I again? the why investment from came one see questions Or of Is involved, but -- maybe temporary? Obviously, I maybe you're extended today Sven, where the back in you of you're company little think there, while if And run more, are ask get this a of founder, an terms But that's terms color to you in apologize. a I head is give you're of could is and we in period? you one where for move? position very is your staying this long this maybe how something the you

Sven-Olof Lindblad

elected first when regularly the left et Well, I decisions, I very the in of with much company. cetera. meetings involved was since in to involved when all, and and strategic was another move still to leave, et management cetera, involved I X elected in Yes. years Dolf he the to opportunity

in I been though involved day-to-day as role activities, I even was in co-chair of the So actually. wasn't CEO,

just it's I being going end about Board individual those the a rational decide complexities and in over would and it, idea a understanding up was in when speed to the it and you like, business, lot but we So and is, seems to great from the learned terms with the help past know to I more that an built future, business terms think we to CEO the eventually on soon, of understanding be carry in business Volt so best exactly job. very some like deep get okay, leave, a elected more how forward. seems we that don't And of even point when say, But another I obviously, to of path here not decades. we'll Dolf I when at of experience individual order broadly, all from of and the help it's time okay, the the there. decided come to when like day, and of did at really this I do a it did spoke the in up even a the than Because

an the board this does feel but it? How I'm extremely how not position, about So we'll there. is this. we extremely about assess each feel management about do interim this assess that the one it's it? we'll after to do will going? How How back I does now, it? feel How forward move is year, I'm happy about right be it? then from And doing feel But

very the timing be is for a time. period helpful the I will that such business to of think it

Operator

Thank Steve. you,

Craig-Hallum Group. Alex We next have from comes Fuhrman Capital our question from

Alex Fuhrman

itinerary, of of the third driver more step season your in the second is of shoulder talked you expect should think is results then quarter some mentioned the pretty Sven, And for where here, The dynamic down -- nice run occupancy? we you about occupancy more from the stronger to looking know, half as occupancy when a definitely the we I sequential were down the stronger revenue. the were QX. about The QX profitability similar that up season of year, in meaningful we headwinds and than was itineraries? in or peak a ramping step [indiscernible] primary

Sven-Olof Lindblad

Yes, definitely.

don't but you that you've it example as the do season like months, are you et that expresses certain for But all-year-round -- audiences. developed instances, at then and term, you new there that year entire key So an some repeat of cetera. And was X several these and to in Alaska Like the bring a ships. the geographies with et developed you've I certainly on it had year. of them them if the rinse the products you we -- that time. you is well. in those program. our repeat. broadly, day, and them at go obviously, cetera, can't repeat up for the programs are darkish really -- the vehicles all months thus business all with X X -- end an We ships. look X.X-month

If you'd want -- certain you you amount a could, you also would. of But diversity. probably

have like based balancing inventory you a so key, to And And my spent get all in the blood, balanced some Otherwise, on component. around. you're ships at going key me, deep year notion because to this I our fill it's these inventory in premise for trouble career of my is of entire that point.

-- why trying a basically occupancy community. this building off guest So loss I'm on we're little understand correlated X-year to this to gas directly of is

years developed inventory when developed it inventory was because is mind. not you developed that the So develop not like was with in loss

so that question? goal. Does it's for, back get we to geared is that which with to percent answer -- will plus/minus your adjustment, particular we're And and occupancy, what our accomplishing an of we're what XX those entire way us being drives

Alex Fuhrman

does. much. you very Yes. Thank It

Craig Felenstein

XXXX. were focus Ben would thing is one XXXX. a is upon tend touched were And pricing continue where and One where in do we we on I add which and of of XXXX to from when happened we're of the Valle you from is said going last top just pretty be emanate. you're of from the is right? have to at have things quarter, business to Alex, And to occupancy guest to dramatically calls, price are nights. will be up kind here, will second certain metrics here the were that dramatically we on where gas to drivers easy to what we and in is that this, as is tend where available reality is be as is were which quarter, third we up but going year nights you what understand when see in continue in That up driver these the the we the look the more from is

continued doing those nights well, -- these really, So see now spend the across significant, esoteric the a ones add when fourth little growth lower and third profitability more additional really company drivers that of right both obsess X even quarter. you and even is you at of as ships with look a to still expect in geographies, call them are we we the the

Alex Fuhrman

Great. real That's

Operator

Instructions] [Operator

Craig Felenstein

everybody, joining we're this thanks, to and your appreciate Well, you have. We us morning, answer time for here additional today. questions any

So with out just Thanks again. now. us reach

Operator

Thank today's this for concludes you. you Thank Ladies and call. gentlemen, joining.

may lines. your disconnect You now

Lindblad Expeditions (LIND) 27 Jul 232023 Q2 Earnings call transcript