• Total Revenue: $206 million, a 17% increase compared to Q3 2023.
• Lindblad Segment Tour Revenue: $121.3 million, a 12% increase year-over-year.
• Land Experiences Tour Revenue: $84.7 million, a 26% increase year-over-year.
• Adjusted EBITDA: $45.8 million, a 35% increase year-over-year.
• Lindblad Segment Adjusted EBITDA: $26.2 million, a 30% increase year-over-year.
• Land Experiences Segment Adjusted EBITDA: $19.6 million, a 42% increase year-over-year.
• Occupancy Rate: Increased to 82% from 81% in the previous year.
• Net Yield per Available Guest Night: Increased by 9% to $1,205.
• Cash Position: $224.6 million as of September 30, 2024.
• Full Year 2024 Revenue Guidance: Between $610 million and $630 million.
• Full Year 2024 Adjusted EBITDA Guidance: Between $88 million and $98 million.

• Warning! GuruFocus has detected 6 Warning Signs with LIND.

Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Lindblad Expeditions Holdings Inc (NASDAQ:LIND) reported record third-quarter results, setting the stage for another year of double-digit growth in 2024.
• Bookings for future travel in the Lindblad segment increased by 26% compared to the same period in 2023.
• The company maintained price integrity with a 9% increase in net yield per available guest night, despite significant discounting from competitors.
• The strategic partnership with National Geographic and Disney is expected to significantly grow the company through at least 2040, with a new co-branded identity enhancing market presence.
• The land experiences segment saw a 26% increase in revenue year-over-year, driven by additional guests and higher pricing.

Negative Points

• The company faces challenges in returning to historic occupancy levels, with expectations to achieve this by 2026.
• Increased marketing and general administrative costs impacted the financials, primarily due to personnel costs and expanded National Geographic Agreement royalties.
• The fourth quarter is expected to be impacted by less available guest nights due to heavy dry dock and transit time across the marine fleet.
• There is still a lot of discounting in the market, which could affect future pricing strategies.
• The integration of new branding and marketing strategies will take time to fully implement and show results, with some benefits not expected until 2025.

Q & A Highlights

Q: Sven, you mentioned using your past guest base to drive occupancy back to historical levels. Do you expect to achieve this by 2026, and how does Disney factor into this? A: Yes, by 2026, we expect to return to historical occupancy levels. The past guest base is crucial for certain itineraries, and rebuilding this community is key. Disney's involvement will likely aid in this process. While we're not providing long-term guidance, the earnings potential of the business is expected to increase significantly, as seen in the current quarter's operating leverage.

Q: With a growing cash position, what are your plans for free cash flow usage? Are you considering ordering new ships to capture long-term demand? A: We have two pathways: building new ships or acquiring existing ones. Historically, we've purchased ships that were unsuccessful for other companies at reasonable rates. We anticipate that similar opportunities will arise in the future, allowing us to acquire ships that become available.

Q: Can you update us on the percentage of tour revenues booked for this year and the decision to maintain 2024 guidance? A: We are currently at 99% of projected revenue for 2024 on the marine side. The fourth quarter will be impacted by seasonality, including dry dock and transit time. We haven't seen significant changes that would alter our guidance, and any new revenue could be offset by cancellations. Thus, we maintain our guidance range.

Q: What drove the significant increase in net yields this quarter? Was it due to pricing or a mix of expeditions? A: The increase is partly due to dynamic pricing, which we implemented this year. For example, in Alaska, we adjusted prices multiple times based on demand. This strategy, along with our new technology systems, has contributed to the yield growth. However, we don't expect this level of pricing increase to continue indefinitely.

Q: How are you approaching international markets, and will they play a significant role in reaching normalized occupancy by 2026? A: While international markets, particularly in Europe, hold potential, we haven't factored them significantly into our 2026 occupancy goals. Our traditional mechanisms should suffice to reach those levels. International expansion is seen as an additional growth opportunity, with efforts currently focused on the UK and testing in other regions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.