Lindblad Expeditions (US:LIND)2019-08-04 02:32Financial Data and Key Metrics Changes - Total company revenue increased by 10% year-on-year, with the Lindblad segment growing by 9% and Natural Habitat by 18% [28] - Adjusted EBITDA rose by 9%, driven by an 11% increase in the Lindblad segment [28] - Net income available to common stockholders was $1 million or $0.02 per diluted share, compared to $0.1 million or $0.00 per diluted share in the same quarter last year [35] Business Line Data and Key Metrics Changes - The Lindblad segment generated revenue of $64.9 million, a 9% increase from $59.6 million in Q2 2018, attributed to a 6% increase in available guest nights and a 3% increase in net yield to $1,030 per night [29] - Natural Habitat segment revenues grew by 18% to $11.8 million, but adjusted EBITDA decreased to a loss of $0.8 million due to a 19% increase in operating expenses [34] Market Data and Key Metrics Changes - The US fleet expanded from 124 berths to 324 berths, achieving strong occupancy levels during the Alaska season [8] - The company reported a strong booking environment, with the Lindblad segment pacing 10% ahead of the same point last year [40] Company Strategy and Development Direction - The company is focused on expanding capacity while maintaining high occupancy levels and net yields, with plans to add the National Geographic Endurance to the fleet next year [11][27] - Investments in technology infrastructure, including a new CRM platform and reservation system, are aimed at improving guest engagement and operational efficiency [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth in the second half of the year, citing strong bookings and higher yields expected from existing vessels [45] - The company anticipates total tour revenue for 2019 to be between $350 million and $358 million, representing a 13% to 16% growth compared to 2018 [41] Other Important Information - The company became carbon neutral in 2019, offsetting its carbon footprint through investments in clean energy and reforestation [18][21] - The company raised between $1.5 million and $2 million annually to support conservation efforts globally [19] Q&A Session Summary Question: Confidence in EBITDA growth for the second half of the year - Management noted that the results year-to-date align with expectations, and the benefits from new inventory will be more pronounced in the latter half of the year [44][45] Question: Concerns about slight dip in occupancy - Management indicated that a 1% drop in occupancy is not significant and attributed it to the addition of inventory during the shoulder season [46][47] Question: Response to shorter itinerary cruises - Initial responses to new shorter itineraries have been positive, with sold-out programs in Galapagos, but repeat rates are still being assessed [50][51] Question: Trends from non-US sourced passengers - Currently, about 90% of guests are from the US, but there are plans to expand international marketing efforts in the future [53][54] Question: Timeline for new reservation system and dynamic pricing - The new reservation system is expected to be functional by late 2019 or early 2020, with dynamic pricing impacts anticipated in 2020 [57] Question: Contribution margin changes as ships mature - Typically, margins are lower in the first year due to marketing and staffing investments, but they are expected to optimize by the second or third year [62] Question: Major one-time costs affecting EBITDA guidance - Management identified increased marketing spend and new IT project expenses as significant one-time costs impacting EBITDA [66][67]