LINDBLAD EXPEDITIONS HOLDINGS, INC. Q3 FY2024 earnings call

Management Statement and Operational Highlights

• Lindblad Business Segment: Bookings to date for future travel in the Lindblad segment increased 26% vs 2023. Inventory released for sale through Q1 2027. Occupancy on positive trajectory, net yield per available guest night up 9%. Focus on rebuilding past guest base. Co-brand with National Geographic launched, marketing efforts ramped up including with Disney affinity audience. Product inventory rebalanced to attract first-time travelers, expansion in Galapagos and Antarctica programs.
• Land Experiences Segment: Revenue up 26% YOY. Bookings to-date for future travel up 20% vs 2023. Acquisition of Thomson Safaris completed, integration progressing. Each land company pursuing mission with vigor.

Segment Performance

• Lindblad Segment: Tour revenue was $121.3 million, an increase of $12.5 million (12%) compared to Q3 2023. Available guest nights increased 6%, occupancy rose from 81% to 82%, and net yield per available guest night increased 9% to $1,205. Adjusted EBITDA was $26.2 million, up $6.1 million from Q3 2023.
• Land Experiences Segment: Tour revenue was $84.7 million, a 26% increase compared to Q3 2023. Bookings to-date for future travel in this segment increased 20% versus the same period in 2023. Adjusted EBITDA was $19.6 million, up $5.7 million from Q3 2023, with the acquisition of Thomson Safaris contributing to growth.

Guidance

• Full year 2024 tour revenue expected between $610 million and $630 million, adjusted EBITDA between $88 million and $98 million. Seasonality impacts Q4 results with less available guest nights and shoulder season inventory. Acquisition of Thomson Safaris expected to have minimal contribution in 2024, more meaningful in 2025.

Risks

• Competitor discounting. Uncertainties in forward-looking statements. Potential impact of seasonality on quarterly results. Cancellations and difficulties in predicting last-minute cancellations/booking changes.

Question and Answer

• Q: Steve Wieczynski asks about occupancy returning to historical levels by 2026 and EBITDA progression.

A: Sven states occupancy will return to historical levels by 2026, and Dyson notes the earnings power of the business will increase significantly.

• Q: Eric Wold asks about tour revenue booking percentage, guidance, and net yield drivers.

A: Dyson discusses seasonality, booking position at 99% of 2024 projected revenue, and net yield driven by dynamic pricing.

• Q: Alex Fuhrman asks about European/UK traveler bookings and international market expansion.

A: Sven responds about early European efforts with a GSA in Britain and international experimentation in markets like India and China.

• Q: Unidentified Analyst asks about tax inflection and margins under new contracts.

A: Dyson says he'll follow up on tax details and notes margins under new contracts are implemented over time