Lindblad Expeditions (US:LIND)2025-11-04 22:06Acquisition and Expansion - The company completed the acquisition of Torcatt Enterprises Limitada for $16.0 million, expanding its vessel and guest capacity in the Galápagos Islands[83]. Financial Performance - The company reported that tour revenues consist of guest ticket sales and other related services, with direct costs including payroll, food, and fuel expenses[87]. - Tour revenues for Q3 2025 increased by $34.2 million, or 17%, to $240.2 million compared to $206.0 million in Q3 2024, driven by a 12% increase in guest nights sold and guests traveled[109]. - For the nine months ended September 30, 2025, tour revenues rose by $91.7 million, or 18%, to $587.8 million, with an 11% increase in guest nights sold and a 9% increase in guests traveled, excluding Thomson Group[110]. - Operating income for Q3 2025 was $35.97 million, a 22% increase from $29.48 million in Q3 2024[122]. - Net income for Q3 2025 was a loss of $4.57 million, compared to a profit of $25.20 million in Q3 2024, reflecting a decrease of $20.63 million or 82%[120]. - Adjusted EBITDA for the three months ended September 30, 2025 was $57.3 million, compared to $45.8 million for the same period in 2024[135]. - Operating income for the three months ended September 30, 2025 increased by $1.6 million to $13.2 million compared to $11.7 million for the same period in 2024[127]. - Operating income for the nine months ended September 30, 2025 was $19.6 million, up from $10.1 million for the same period in 2024[128]. Revenue Segmentation - The company operates two segments: the Lindblad segment and the Land Experiences segment, which includes various adventure travel brands[82]. - The Lindblad segment's tour revenues for Q3 2025 increased by $16.3 million, or 13%, while the Land Experiences segment saw an increase of $17.9 million, or 21%[122]. - Tour revenues for the Land Experiences Segment for the three months ended September 30, 2025 increased by $17.9 million, or 21%, to $102.6 million compared to $84.7 million for the same period in 2024[130]. - For the nine months ended September 30, 2025, tour revenues for the Land Experiences Segment increased by $44.6 million, or 27%, to $208.1 million compared to $163.5 million for the same period in 2024[131]. Operational Metrics - The company utilizes various operational metrics, including Adjusted EBITDA and Net Yield, to analyze performance and financial condition[90]. - Adjusted EBITDA is defined as net income excluding depreciation, interest, and other non-operating items, providing insight into operating results[92]. - Net yield per available guest night increased by 9% to $1,314 from $1,205 in 2024 for the three months ended September 30, 2025[125]. Costs and Expenses - Total cost of tours for Q3 2025 increased by $14.6 million, or 13%, to $124.4 million, attributed to higher operating costs from additional voyages and trips[111]. - General and administrative expenses for Q3 2025 rose by $5.8 million, or 20%, to $34.8 million, mainly due to higher stock-based compensation and personnel costs[113]. - Selling and marketing expenses for Q3 2025 increased by $5.1 million, or 20%, to $30.1 million, driven by higher royalties and commission expenses associated with increased revenues[115]. - Depreciation and amortization expenses for Q3 2025 increased by $2.2 million, or 17%, to $14.9 million, primarily due to depreciation of assets supporting the vessel fleet[117]. Cash Flow and Debt - Net cash provided by operating activities increased to $96.9 million for the nine months ended September 30, 2025, compared to $90.7 million for the same period in 2024, reflecting a $6.2 million increase[2]. - The company had $261.8 million in unrestricted cash and cash equivalents as of September 30, 2025[3]. - Long-term debt obligations totaled $675.0 million as of September 30, 2025, with cash on hand expected to cover operations and debt service for at least the next 12 months[4]. - The company issued $675.0 million of 7.00% senior secured notes in August 2025, primarily to repay prior senior secured notes[6]. - The Revolving Credit Facility was amended to increase commitments from $45.0 million to $60.0 million, extending the maturity date to August 2030[7]. - As of September 30, 2025, the company had a working capital deficit of $74.8 million, improved from a deficit of $114.0 million as of December 31, 2024[8]. Guest Experience and Partnerships - The relationship with National Geographic has been extended through 2040, enhancing guest experiences through expert-led expeditions[74]. - The company emphasizes eco-conscious travel and partnerships with organizations like the World Wildlife Fund to promote sustainable tourism[76]. Guest Metrics - Occupancy for the Lindblad segment improved to 88% in Q3 2025, up from 82% in Q3 2024, with guest nights sold increasing to 84,143 from 74,845[123]. - The number of guests for the Land Experiences Segment increased to 8,746 for the three months ended September 30, 2025, up from 7,806 in 2024[129]. - The company’s Lindblad brand tour revenues are traditionally higher in the first and third quarters, influenced by seasonal demand and maintenance schedules[106].