Lindblad Expeditions (US:LIND)2023-11-05 09:42Financial Data and Key Metrics Changes - Total company revenue for Q3 2023 was $176 million, an increase of $31 million or 22% compared to Q3 2022 [40] - Adjusted EBITDA for the total company reached $34 million, an increase of 83% year-over-year [25] - Net income available to stockholders improved to $4.5 million or $0.08 per diluted share, compared to a net loss of $9.8 million or $0.18 per diluted share in the same quarter last year [26] Business Line Data and Key Metrics Changes - Lindblad segment revenue was $109 million, up $25 million or 30% year-over-year, driven by a 21% increase in available guest nights and a 9% increase in net yield to $1,110 per available guest night [23] - Land Experiences segment revenue was $67 million, an increase of $6 million or 10% year-over-year, supported by additional departures and guests across various land trips [24] Market Data and Key Metrics Changes - Occupancy rate remained at 81%, consistent with Q3 2022, despite a significant increase in available guest nights [24] - The company has seen a steady increase in bookings, with gross production in Q3 up nearly 20% compared to the same quarter in 2022 [60] Company Strategy and Development Direction - The company has three key priorities: enhancing guest experience, expanding fleet capacity to pre-pandemic levels, and growing acquired businesses while seeking strategic acquisitions [3][4] - The focus is on modernizing marketing and sales platforms to drive growth, including a blend of traditional and digital marketing strategies [5][6] - The company aims to maintain premium pricing while increasing occupancy, emphasizing the unique value proposition of their high-quality expedition experiences [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growing demand for experiential travel and the company's ability to capitalize on this trend [39] - There are expectations for total company revenue in 2023 to be between $550 million and $575 million, with adjusted EBITDA between $70 million and $80 million [44] - Management acknowledged potential short-term fluctuations due to external factors but remains confident in the long-term growth trajectory [46] Other Important Information - The company ended the quarter with $205 million in cash and short-term investments, reflecting a $7 million increase from the previous quarter [28] - G&A expenses increased by 18% year-over-year, primarily due to higher personnel costs and increased credit card commissions [26] Q&A Session Summary Question: Why was guidance left unchanged despite a strong quarter? - Management cited three main uncertainties: cancellation levels, geopolitical impacts particularly in Egypt, and variability in fuel prices affecting future quarters [47][56] Question: How are booking trends for 2024? - Booking trends remain consistent, with gross production in Q3 up nearly 20% year-over-year, and the company is in a good position heading into 2024 [60][61] Question: What is the difference between current occupancy and pre-pandemic levels? - The current occupancy of 81% is below the pre-pandemic levels of around 90%, with short-term cancellations and the need for more time to ramp up new itineraries contributing to this difference [72]