Lindblad Expeditions Holding today reported financial results for the first quarter ended March 31, 2024.
Sven Lindblad, Chief Executive Officer, said: “Lindblad’s first quarter results set the stage for another year of strong growth and record results in 2024. The booking momentum we experienced throughout 2023 has continued into this year as more and more guests want to experience the thrill of exploration in the remarkable destinations we visit. At the same time, we are hard at work with our partners at National Geographic on ways to maximize the long-term value of our expanded strategic relationship, including preparing to leverage the Disney sales network and building out our international expansion opportunities.
“As we focus on driving higher returns across our fleet, we also continue to broaden and deepen our land-based portfolio with the recent announced acquisition of Wineland-Thompson Adventures and increased ownership interests in Natural Habitat and DuVine Cycling. Demand for experiential travel continues to grow and as we further ramp occupancies across our fleet, expand our portfolio of high-quality authentic experiences and maintain premium pricing levels, we are uniquely positioned to significantly ramp earnings and build long-term shareholder value in the years ahead.”
First Quarter 2024 Highlights:
- Total revenue increased 7% to $153.6 million
- Lindblad segment available guest nights increased 3%
- Lindblad segment net yield per available guest night increased 1% to $1,219 with higher pricing and occupancy of 76%
- Strong reservations for future travel with bookings for 2024 4% ahead of bookings for 2023 at the same point a year ago and well over 20% ahead excluding carryover bookings in 2023
- Following the quarter further expanded land-based portfolio with the announced acquisition of Wineland-Thompson Adventures and ownership increases in Natural Habitat and DuVine Cycling
FIRST QUARTER RESULTS
Tour Revenues
First quarter tour revenues of $153.6 million increased $10.2 million, or 7%, as compared to the same period in 2023. The increase was driven by a $2.8 million increase at the Lindblad segment and a $7.4 million increase at the Land Experiences segment.
Lindblad segment tour revenue of $118.3 million increased $2.8 million, or 2%, compared to the first quarter a year ago primarily due to a 3% increase in available guest nights due to greater fleet utilization and from a 1% increase in net yield per available guest night to $1,219 due to higher pricing and increased other revenue, partially offset by a decrease in occupancy to 76% from 81% in the first quarter a year ago.
Land Experiences tour revenues of $35.3 million increased $7.4 million, or 27%, compared to the first quarter a year ago primarily due to operating additional trips and higher pricing.
Net Income
Net loss available to stockholders for the first quarter was $5.1 million, $0.10 per diluted share, as compared with net loss available to stockholders of $0.4 million, $0.01 per diluted share, in the first quarter of 2023. The $4.7 million decline primarily reflects the lower operating results and a $1.1 million increase in interest expense due to additional borrowings and higher rates, partially offset by $1.3 million of lower income tax expense and a $0.8 million decrease in stock-based compensation.
Adjusted EBITDA
First quarter Adjusted EBITDA of $21.6 million decreased $5.6 million as compared to the same period in 2023 driven by a $5.6 million decrease at the Lindblad segment and in-line year on year results at the Land Experiences segment.
Lindblad segment Adjusted EBITDA of $20.5 million decreased $5.6 million as compared to the same period in 2023 as increased tour revenues were more than offset by higher operating expenses. The increased operating expense included higher cost of tours, primarily due to increased fuel costs and expenses associated with the other revenue, higher sales and marketing costs, primarily due to increased royalties associated with the expanded National Geographic agreement, and higher general and administrative costs, primarily due to increased personnel costs, higher credit card commissions due to the revenue and bookings growth and increased information technology costs following the launch of the company’s digital infrastructure.
Land Experiences segment Adjusted EBITDA of $1.1 million was in-line with the same period in 2023, as increased tour revenues were offset by higher operating and personnel costs related to operating additional departures, higher marketing spend to drive future growth and the impact of foreign currency on operating expenses.
More
Following the quarter, the Company further broadened and deepened its portfolio of high-quality experiential land offerings with the announced contract signing of Natural Habitat to acquire award-winning adventure travel group Wineland-Thomson Adventures, Inc,, Similar to the acquisitions of Natural Habitat, DuVine Cycling, Off the Beaten Path and Classic Journeys, the Company will leverage its experience and resources to further accelerate the growth of the Wineland-Thomson brands and capitalize on the growing demand for authentic and immersive adventure travel and safaris. The closing of the acquisition will occur following certain regulatory approvals in Tanzania, which is expected to take a minimum of three months.
The aggregate purchase price for Wineland-Thompson Adventures, which includes one US-based company and four Tanzania-based companies, will be approximately $30 million and will be financed through at least $24 million in cash and Lindblad stock of up to $6 million, with the final cash and stock amounts to be determined prior to the close of the transaction. The value allocation of the Tanzania-based companies is approximately $11.2 million.
Numbers
The Company’s current expectations for the full year 2024 are as follows:
Tour revenues of $610 – $630 million
Adjusted EBITDA of $88 – $98 million
The Company has substantial advance reservations for future travel with strong gross bookings, partially offset by short-term impact of instability in Ecuador and the Middle East. As of April 22, 2024, Lindblad segment bookings for travel during 2024 have increased 4% as compared with bookings in 2023 as of the same date a year ago and have increased well over 20% excluding the impact of carryover bookings in 2023. As of April 22, 2024 the Lindblad segment had 94% of full year 2024 projected guest ticket revenues already on the books.
