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Lindblad Expeditions (LIND) - 2025 Q2 - Earnings Call Transcript
2025-08-04 13:32
Financial Data and Key Metrics Changes - Total company revenues for Q2 2025 were $167 million, an increase of $31 million or 23% compared to Q2 2024 [21] - Adjusted EBITDA for Q2 2025 was $24.8 million, an increase of $14.5 million or 139% year-over-year [22] - Net loss available to stockholders improved by $16.1 million year-over-year to $9.7 million or $0.18 per diluted share [24] - Adjusted EBITDA margins expanded by 720 basis points year-over-year to 14.8% [22] Business Line Data and Key Metrics Changes - Lindblad segment revenues were $111 million, an increase of $18 million or 19% compared to the prior year [21] - Land Experiences segment revenues were $57 million, an increase of $13 million or 31% compared to Q2 2024 [22] - Occupancy increased from 78% to 86%, an 8 percentage point gain despite a 5% increase in available guest nights [21] Market Data and Key Metrics Changes - Bookings remain strong and are tracking ahead of last year for both 2025 and 2026 [10] - Bookings from Disney's travel advisors increased by 45% [12] - Search volumes from the National Geographic travel campaign increased by 122% [13] Company Strategy and Development Direction - The company is focused on maximizing revenue generation, optimizing financial performance, and exploring growth opportunities [10][18] - Strategic initiatives include enhancing revenue management capabilities and executing partnerships with Disney [6][12] - The company is actively exploring accretive growth opportunities, including fleet expansion and diversifying its portfolio [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the path forward, citing strong performance and strategic initiatives [5] - The company is raising full-year guidance for net yields, revenue, and adjusted EBITDA due to strong first-half performance [19] - Management indicated that 2025 is an investment year, with many investments occurring in this period [32] Other Important Information - The company is preparing its first-ever ESG report to be released next quarter [19] - The acquisition of four safari camps in East Africa was announced, enhancing the company's footprint in the region [18] Q&A Session Summary Question: Concerns about EBITDA guidance for the second half of the year - Management acknowledged that 2025 is an investment year, which may lead to higher costs and less flow-through in the second half compared to the previous year [32][33] Question: Increase in sales and marketing expenses - Management explained that increased sales and marketing costs are due to investments in new sales channels and higher royalties associated with agreements with National Geographic [41] Question: Reduction in non-revenue days - Management clarified that the 38% reduction in non-revenue days is based on optimized scheduling and planning, with steady reductions expected until 2027 [42][44] Question: Customer demographics from Disney partnership - Management noted an increase in multigenerational travel due to the Disney partnership, with a focus on educational programs for younger travelers [50] Question: Future vessel acquisitions - Management indicated that while demand is expanding, growth opportunities may not necessarily require new builds, as they are also exploring chartering options [54][56]
Lindblad Expeditions (LIND) - 2025 Q2 - Earnings Call Transcript
2025-08-04 13:30
Financial Data and Key Metrics Changes - Total company revenues for Q2 2025 were $167 million, an increase of $31 million or 23% compared to Q2 2024 [22] - Adjusted EBITDA for Q2 2025 was $24.8 million, an increase of $14.5 million or 139% year over year [23] - Net loss available to stockholders improved to $9.7 million or $0.18 per diluted share, reflecting significant operational improvements [25] Business Line Data and Key Metrics Changes - Lindblad segment revenues were $111 million, an increase of $18 million or 19% compared to the prior year [22] - Land Experiences segment revenues were $57 million, an increase of $13 million or 31% driven by increased trips and higher revenue per guest [23] - Occupancy rose to 86%, an 8 percentage point increase from 78% despite a 5% increase in available guest nights [22][10] Market Data and Key Metrics Changes - Bookings remain strong and are tracking ahead of last year for both 2025 and 2026, indicating robust demand for travel experiences [10][29] - The partnership with Disney has led to a 45% increase in bookings from Disney's travel advisors [14] Company Strategy and Development Direction - The company is focused on three long-term strategic pillars: maximizing revenue generation, optimizing financial performance, and exploring growth opportunities [12][18] - The introduction of new strategic revenue management capabilities and partnerships, such as with Disney, is aimed at increasing occupancy and expanding market reach [7][14] - Sustainability remains a central mission, with plans to release the first ESG report highlighting environmental and social impact efforts [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong performance and strategic initiatives [6][20] - The company is raising full-year guidance for net yields, revenue, and adjusted EBITDA, reflecting strong business performance [20][29] - Management acknowledged that 2025 is an investment year, with higher costs expected in the second half due to ongoing investments [33][34] Other Important Information - The company has implemented over 20 cost innovation initiatives targeting cost optimization and productivity improvements [18] - The acquisition of four safari camps in East Africa is aimed at enhancing the company's footprint in the region [18] Q&A Session Summary Question: Concerns about EBITDA guidance for the second half of the year - Management indicated that while they remain optimistic, 2025 is an investment year, leading to higher costs and lower flow-through in the second half [33][34] Question: Changes in sales and marketing expenses - Management noted increased investments in new sales channels and partnerships, particularly with Disney, which will continue to drive occupancy and net yield growth [41] Question: Reduction in non-revenue days - Management explained that the 38% reduction in non-revenue days is based on optimized scheduling and planning, with steady improvements expected until 2027 [42][44] Question: Demographic profile of customers booking through Disney - Management highlighted an increase in multigenerational travel, with a focus on educational experiences for younger travelers [50][51] Question: Opportunities for acquiring used boats in the market - Management confirmed ongoing demand for their products and noted that growth opportunities could come from acquisitions or chartering rather than solely new builds [54][56]