LIND Q4 2023 Earnings

Call Details

• Call Title: Lindblad Expeditions Q4 2023 Earnings Call
• Date: February 28, 2024 at 1:30 PM UTC
• Management Team:
  • Sven Lindblad (Chief Executive Officer)
  • Craig Felenstein (Chief Financial Officer)

Call Summary

Financial Performance

• Global company revenue for full year 2023 was $570M, an increase of $148M or 35% versus 2022.
• Lindblad segment revenue was $397M, an increase of $119M or 43% year over year.
• Total company adjusted EBITDA was $71M, an increase of $83M versus a year ago, and adjusted EBITDA is a non-GAAP measure.
• Total company net loss available to stockholders was $50M or $0.94 per diluted share, an improvement of $66M versus the prior year net loss of $116M or $2.23 per diluted share.
• Operating expenses before depreciation and amortization, interest and taxes increased $65M or 15% versus 2022, with cost of tours up $39M or 14%.
• Fuel expense was 5% of revenue in 2023 versus 7% of revenue in 2022, driven by lower pricing despite increased usage.
• Sales and marketing expense increased $10M or 17% year over year primarily due to higher commissions, royalties and increased digital marketing.
• G&A spending increased $15M or 17% excluding stock-based compensation and one-time items primarily due to higher personnel costs and higher credit card commissions.

Guidance

• The company expects total company tour revenue for 2024 between $610M and $630M.
• The company expects adjusted EBITDA for 2024 between $88M and $98M, and adjusted EBITDA is a non-GAAP measure.
• Projections reflect the increased royalty rate associated with the National Geographic relationship expansion and the impact of voyage cancellations.
• The company reported that it has already booked over 87% of its full year projected ticket revenues for 2024.
• Lindblad segment was pacing 2% ahead of the same point in 2023, and the company stated that excluding COVID-era carryover bookings they would be approximately 21% ahead.
• Bookings since the start of December for travel in 2024 were reported as up over 50% versus the same period a year ago.
• Maintenance capital expenditure for 2024 is expected to be approximately $25M to $30M, and the company expects strong free cash flow generation excluding any growth CapEx.
• The company anticipates buying part of the minority interest in its land companies during the first quarter of 2024.