Lindblad Expeditions (US:LIND)2025-02-28 01:33Financial Performance - Tour revenues for 2024 reached $644.7 million, a 13% increase from $569.5 million in 2023, and a 35% increase from $421.5 million in 2022[314] - Cost of tours increased to $343.7 million in 2024, up 7% from $322.4 million in 2023, and up 14% from $283.2 million in 2022[314] - General and administrative expenses rose to $139.9 million in 2024, an 18% increase from $118.4 million in 2023[314] - Operating income improved to $21.6 million in 2024, a 103% increase from $10.6 million in 2023, compared to an operating loss of $63.0 million in 2022[314] - The company reported a net loss of $28.2 million in 2024, a 31% improvement from a net loss of $40.9 million in 2023[314] - Adjusted EBITDA for the year ended December 31, 2024 was $91.2 million, an increase of $20.0 million, or 28%, compared to $71.2 million in 2023[324] - The operating loss for the year ended December 31, 2024 was $2.9 million, a decrease of $5.8 million from a loss of $8.7 million in 2023, attributed to increased revenue despite higher operating expenses[332] Acquisitions and Investments - The acquisition of Torcatt Enterprises Limitada for $17.0 million was completed in January 2025, expanding vessel capacity in the Galápagos Islands[291] - The company increased its ownership of Natural Habitat from 80.1% to 90.1% for $15.2 million in April 2024[290] - The acquisition of Thomson Group for $30.0 million (including cash and stock) was aimed at expanding land-based experiential travel offerings[292] - The acquisition of Thomson Group contributed $49.3 million, or 29%, to tour revenues in 2024, with $19.6 million from an 11% increase in average revenue per guest[335] Guest Engagement and Revenue Generation - The number of guests in the Lindblad segment increased to 31,489 in 2024 from 29,719 in 2023, reflecting a growth in guest engagement[326] - Gross yield per available guest night increased to $1,308 in 2024 from $1,257 in 2023, indicating improved revenue generation per guest[327] - The Land Experiences segment saw an increase in guests from 18,704 in 2023 to 21,638 in 2024, representing a growth of 15.5%[334] - Tour revenues for the year ended December 31, 2024 increased by $25.9 million, or 6.5%, to $423.3 million compared to $397.4 million in 2023, driven by a 4% increase in guest nights sold and a 2% increase in revenue per guest night sold[331] Expenses and Costs - Selling and marketing expenses for the year ended December 31, 2024 increased by $15.6 million, or 22%, to $87.0 million compared to $71.4 million in 2023[318] - Depreciation and amortization expenses increased by $5.9 million, or 13%, to $52.6 million for the year ended December 31, 2024 compared to $46.7 million in 2023[319] - The adjusted net cruise cost excluding fuel for 2024 was $292.8 million, an increase from $270.3 million in 2023[330] - The gross cruise cost per available guest night increased to $1,167 in 2024 from $1,148 in 2023, reflecting higher operational costs[330] Cash Flow and Financial Position - Net cash provided by operating activities was $92.4 million in 2024, a significant increase of $117.8 million compared to a cash used in operations of $25.4 million in 2023[339] - As of December 31, 2024, the company had $183.9 million in cash and cash equivalents, including $32.2 million in restricted cash, and $635.0 million in long-term debt obligations[337] - The company had a working capital deficit of $114.0 million as of December 31, 2024, compared to $74.7 million in 2023, indicating increased financial obligations[350] - As of December 31, 2024, there were no amounts outstanding under the revolving credit facility, suggesting a strong liquidity position[360] Market and Currency Risks - The company is exposed to market risk from exchange rate fluctuations, particularly with currencies other than the U.S. dollar, affecting prepaid assets and current liabilities[356] - The company has ship maintenance and construction contracts denominated in foreign currencies, which may expose it to currency risk if not hedged[357] - The company primarily hedges its currency exposure related to Canadian and New Zealand dollars, Indian rupee, euro, and British pound sterling, mitigating some risks associated with foreign currency fluctuations[358] Accounting and Estimates - Significant judgment is required in estimating the future cash flows and fair values of intangible assets, including tradenames and customer lists, which could lead to impairment charges if conditions change[354] - The company’s accounting estimates for ship accounting involve assessing the useful life and residual values of ships, which could impact future depreciation expenses[353] - The company’s intangible assets include operating rights related to licenses required to operate within the Galápagos National Park, highlighting its unique market position[354] - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring management to make significant estimates and assumptions that could affect reported amounts[352] - The company has not hedged its fuel purchases due to the lack of a specific market or index, exposing it to price volatility in fuel costs[359]