Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lindblad Expeditions Holdings Inc (LIND, Financial) reported a 9% increase in total revenue for the second quarter of 2024, reaching $136.5 million.
- Bookings for future travel were up 17% compared to the same period in 2023, indicating strong demand.
- The company has expanded its fleet with the acquisition of two additional ships for the Galapagos, increasing inventory by 45%.
- Lindblad's land experience sector continues to perform well, with a 16% increase in revenue year-over-year.
- The partnership with National Geographic and Disney is expected to significantly grow the company through at least 2040, with new marketing campaigns and brand updates planned.
Negative Points
- The ongoing Middle East conflict has negatively impacted Lindblad's Egypt program and led to the cancellation of two Mediterranean voyages.
- Instability in mainland Ecuador briefly affected Galapagos voyages, although the situation has stabilized.
- The company faces increased general and administrative costs, primarily due to higher personnel expenses and increased royalties.
- Sales and marketing expenses rose by 20.6% year-over-year, driven by the expanded National Geographic agreement and additional marketing spend.
- Despite strong booking trends, the company acknowledges that external influences, such as geopolitical events, continue to pose risks to future operations.
Q & A Highlights
Q: What gives Lindblad Expeditions confidence in achieving their EBITDA guidance for the second half of 2024, given the first half results?
A: Dyson Dryden, Interim CFO, explained that the strong booking position is key. The Lindblad segment has already booked 98% of its full-year projected ticket revenues for 2024, with the remaining 2% expected to come at a high margin. Additionally, the land business bookings, particularly Nat Hab, are up 20% year over year, supporting confidence in achieving the guidance.
Q: How does the partnership with Disney and National Geographic impact Lindblad's long-term occupancy and growth?
A: Sven Lindblad, CEO, emphasized the potential of the partnership, highlighting the collaboration's focus on leveraging Disney's distribution and National Geographic's brand strength. The partnership is expected to significantly impact growth, with material benefits anticipated to start showing in 2025 as the collaboration ramps up.
Q: Is the expanded Nat Geo-Disney relationship progressing as expected, and what impact is anticipated for 2025?
A: Sven Lindblad noted that the partnership is progressing faster than expected, with significant exposure planned through Disney's sales team and collaborative marketing efforts. The impact is expected to be substantial in 2025, aligning with Lindblad's average nine-month booking window.
Q: What is the expected impact of acquiring two new vessels in the Galapagos on Lindblad's market share and customer acquisition?
A: Dyson Dryden stated that the acquisition increases Lindblad's inventory in the Galapagos by 45%, enhancing their ability to attract first-time guests. The Galapagos is a key region for acquiring new customers due to its iconic status, and the acquisition aligns with Lindblad's strategy to improve occupancy levels.
Q: What are Lindblad's plans for expanding in the river cruising space, and will it require additional fleet investments?
A: Sven Lindblad mentioned that Lindblad plans to pursue river cruising primarily through charters rather than building or acquiring new ships. This approach allows them to test new areas and expand offerings without committing to year-round operations in seasonal regions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
