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Lindblad Expeditions (LIND)

Participants
Craig Felenstein CFO
Sven-Olof Lindblad Founder, CEO, President & Director
Steven Wieczynski Stifel, Nicolaus & Company
Alex Fuhrman Craig-Hallum Capital Group
Tyler Batory Janney Montgomery Scott
Gregory Pendy Sidoti & Company
Call transcript
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Operator

Good day, and welcome to Lindblad Expeditions Inc. Fourth Quarter 2019 Financial Results Conference Call. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Craig Felenstein, Chief Financial Officer. ahead. go Please

Craig Felenstein

begin Sven Good us Operator. year and Sven Q&A. you details today then we thank some some opening our call. and open Thank results before fourth Lindblad's morning, XXXX joining is call the for quarter me full the Chief I will our comments, fourth follow for Founder With you, on for will everyone, Executive with Officer. Lindblad, year call quarter with earnings on and and and full

find our section can latest You the earnings Investor of release Relations in our website.

be started, or remind that any different may forward-looking uncertainties obligation are estimates, The expectations. Before forecast let we guarantee from comments Those to no to update company's subject that may today cause get accuracy these forward-looking expectations materially statements. of cannot me any to company and everyone actual and the the such undertake results risks we include performance and statements.

more risks information If filings. you on SEC forward-looking would involved statements, see company's the like the please in

comments comparable may directly A of company's measures. reconciliation reference in associated release. financial are non-GAAP most the earnings our and contained financial the disclosures measures GAAP addition, other In

of to And the me that call let over out with the Sven. turn way,

Sven-Olof Lindblad

to years continue joining taken momentum this ahead. some Thank to have to and to It be this of the you, discuss performance we us here the take steps and Lindblad's everyone, Craig, highlight and is build thanks, year in for past today morning. strategic this a pleasure to strong upon financial

the world's remarkable Guest to than in this in authentic our high This some proven maintain Lindblad occupancy for on with growth increased past our cruising specifics geographies, track significant of in As no and ability capitalize we certainly discuss we year, specifically add Since again, yields a program to results. financial delivering Lindblad capacity. as most positioned in evident are high adventure XXXX, our Expeditions. combined the Craig company but and by the moment, strong trend once demonstrates will expeditions continues a better deliver. Lindblad's over is our XXXX was intimate expedition this in guests and experience of high-quality rise newbuild investing demand at back maintaining more with record began travel more has experiencing strategically while net yields Available expanding immersive over the Nights XX% occupancy and we and X% by as levels XX% to

pleased National has ability have The her their latest guests addition XXX-passenger tools, to comfort and service operations, level, cannot the her of first array and go. the been simply fleet, with extremely completed Geographic many where and Venture, other of ships year amenities her of our full explore her quality to exploration

in the nearly believe be U.S. demand summer. most sold with National added entire XXX%. The XXXX reason expanded out Quest the expansion With fleet. certainly increasing of case ship, year season the and XXXX, existed key yields excess this this Venture notably which we certain Alaska this across size we level of addition the U.S. her primary our fleet we was we coastal Geographic have of increased the sister past by over the Alaska, the past to capacity, has in for Even our our inventory geographies, while undertook proven

seasons returns strong to during high been case. on with coastal the with deliver we shoulder ships, would all U.S.-focused the The generate. on regards In investment for anticipated has ability vessels was to these what long-term a summer our of months and returns plans the to our building highly certainly approach took these regards dependent conservative

opportunity. represent seasons do shoulder However, we believe real the a

us These the expected additional generate pipeline the and on developing advantage expeditions occupancies are as the will be same that programs the X-night bulk returns will months will Escape not This attracting of being do ships on these for some not embark our number where of is develop of to of level some particular stages a during Wild also X- winter to of guests, for The of create developed. itineraries, while but these gate traditional traction. build lives. the to these significant and to to continue their gain whom ideas take many take out a at at our shorter they We broader greater resources new programs have opportunities longer time periods. are of

on is only location deeply since program of are with, we in have we stunning are we during to traditionally in an that It's Bay, and this geography plenty example It's gray we are remarkable to X-night height experiences easy our Baja. possibility taking great expedition an whale time a from to amazing this the U.S. the generated A ways place is But extra contact is itinerary looking geography a to expose that intimate It's more that have the provide familiar itinerary for had level to coastal a region. the demand XXXX. a action-packed ships. we opportunities with of Zodiac. in sea operating perfect unique to a developed compact been offering Mexico's audiences with will newly broader get This escape. season of Magdalena expanded with when X fleet,

and different of XX different currently very programs experiences we're our are further unique offering these Wild geographies, guests. X about Escapes excited for across development We

an her meets polar could has to engine literally blown ahead and for the the Geographic the be understatement. ship, This excellence experience this launch last returned her. first an will expedition and and see of away. everyone go ship is certainly from growth newbuild call spades. National her elegance ship be is no Endurance. She can was big I would just ever our in year I ice built Robust This visit gone. class wish where on see The passengers And Forman. in exhibit my the curated exhibit you of have the ice. does first an the significant. hugely nowhere Zaria be importance technically art innovative to out can the ocean Throughout showcasing the you spaces, the by wonder and this created connection are public magnificent history, will darkness, floating Even incomparable and sun not expansive will outside. view. given there's see ship, literally ship go have that artists rarely with the where connected including the XX-plus

And on other remarkable I'm a most voyage in beauty excited joining at would for Norwegian been to just and this of off be a never early expedition expedition state-of-the-art for Epic entire the already her is Arctic, she new over has first the XX-day many her and stunning in voyages scheduled the Passage of XX% across inaugural year. April time Northeast for here the truly itinerary ship ships is including contemplate. upcoming charts, the a the an Antarctica. year, Demand in place sold this

to Based newbuild on in committing very strategy step XXXX. by the next the Resolution, our quarter strong sister the in National for took we fourth the response ongoing delivery slated Geographic the ship, early Endurance last her of year, for

important fleet to the We One through an demand "if careful learned to curves our I've committing lessons expanding will as hardware the look it, strategy further be is years you before closely gone expansion. not we come" has they quality well this at of as and the build for to and Antarctic strong. opportunities. competitive demand on the for landscape, while acquisition initial yard still factors the dynamics, season, has 'XX-'XX such working sale of The external early, were very with market just the the been as Resolution undertake

about to excited expand are fleet. the the We opportunity further

Another area where offerings we our is expanding across our are charter vessels.

where may past provide are we four, reasons economics more we can our there guests three, with to out might to off we expand; charter: one, relationship. easily Several why reminder, a favorable to because day a check two, region own to get one with wish started of adjust ships key X the greater acquire. diversity; As ships charters; are as we and the inventory-demand our familiar

itineraries and offerings fine-tune are XXXX. to continue for new We our announcing some to close charter

growth. point we expand we we they XXXX, strategically broad we visit REIT involved ensure anticipated the journey, to In transformation infrastructure a the every of and reinventing digital and continuing effectively also as As communication fleet, the capable to nearly of are handle size interaction. started our to in which them our need we're invest digital geographies

major our website powering a it and new agent all. new cloud, X system reservation guests new new have a a a CRM and marketing travel platform, We partners across with programs

are to our We it X components the to live reservations fruition existing connected with first our new with phase having platform, CRM later year. platform, remaining journey the the coming this of of

our already interactions. new seamless capture CRM prior system and to Our us to by allowing and to rigorous a of more and that us complete leads unable is more was a history creating guest capture is platform experience provide market guest allowing to

by new of platform and live it guest, and real-time by full providing that of our booking in triggered our including of roll into we enhanced can inventory an website rollout travel enhance remaining As and view elements activity. our guest pricing. actions capabilities reservations digital will enabling program, online only out CRM XXX-degree and the will transformation guest marketing sales advisory be the full experience, digital a capabilities provide dynamic The

our and year. to We continue also efforts increased see returns marketing from sales past this

funnel expedition. they're media, if some brand have consumers currently investing propensity deeply services who more travel; has type indicated our the indications focus to explicitly been purchase targeting media for a made have they in investing an interested they in of in our Our twofold: that more higher to that lower and even to create audiences that travel market in awareness are haven't

both seeing we success in far, areas. So are

by way our on media, with visitation year-over-year driven was of traffic gauging our -- up campaigns. example, of effectiveness one primarily by XX% an awareness-driven associated expeditions.com, media As the

XXXX of direct nearly new conversation, In XXXX, largely in XX% efforts from guests channels from first-time bookings terms other joining and efforts. driven all our database in by our outpaced to increase increased media households our growth

learn far optimize we 'XX. increases further versus marketing approach, We performance in and are continue in XXXX, our and so seeing to

drive million from and for long ago but bear the more had The also are the January fruit over in We continue the to point will bulk history. we in today. just benefit at of XXXX we for strongest And term, the to marketing reservation the our see XXXX. they helping than bookings had trends investments strong already our have we generated same a year XX technology

now of So for call. most mind I'm top discuss the sure a take on people as it's to let's coronavirus, this moment

of majority XXXX Asia, the small vessel So first operate have taken this ship we of in on all, already itineraries the one only and place. charter

than our in X% have have Hong that Kong less any China, and guests this including region, around through strict guests traveled of protocols from are we put Macau. sourced Second, and

So expect relatively to extremely business direct the be our small. small, we impact on fully

each will an we And instance, frankly. there's track before, impact. have indirect However, we In there SARS, few do understand this cancellations, issue war, that pattern: and many reality not similar This faced this of perception, like a unique, relatively a different. is should February, both followed financial some bookings February be a plus is anytime robust so terrorism, situation normal. crisis. to We minus lull situations be productive, over be future return in why And in increased date. is business don't not any on or decline to to last any month, by this we're seeing see as so slightly a

the any connection. human We reduced also disease to is outside have contracting because advantage where places traveling of of limited

is will going far illness, goes when such that lessons instead avoid They in this does with thing anything to smaller mission and savvy primary dealing too, other present that I on we we'll fact, risk far any And risk. have not are are know managing primarily will few. is pass. One they whole been do life is us but with kind traveling Obviously, Our are units. than nature. perception, Hopefully, very focusing undue represents that conclude there crowds, This educated, of most. Plus balance exceptions, better to clientele. on. have simpler like learned

Natural for Churchill. another marine-based we diverse was the in outlook momentum of as more growth to products year bears from safaris strong, operator, our Habitat. land-based and more strong guests so remain the offer operations As does Africa the polar on experienced XXXX our in

and cross-marketing our have on focus on for that tend be portfolio a those have guests upside fine-tune between of looking to while Habitat. Lindblad most continue also know and We Natural ways itineraries to to We diverse the travel opportunities interests to capitalize omnivorous. that our

further be maximize Natural Lindblad activity may best grow and constituents next So exponentially an we the to African safari year and value. to how each excellent, The acquisitions vice versa. excellent the to traveler X crossover take have for to talk to is Habitat an of as you long-term continuing year, and template compelled to

thing we And to years, finally, perspective. do the which we always do it while at believe environmental of forefront past the really smart has Lindblad been up thing in the both consciousness, a and is right to stepped have business from the

as XXXX, a we company. carbon-neutral of So are,

plastics. single-use all eliminated have We

are Sustainable procurement is supply food We annually. chains to increasing eliminate waste. pressuring

in This and meaningful conservation action technology engine approximately multipronged New $X complements is yet newbuilds. This is is a education now in And on list million support ways. Fund, tangible a Geographic our smaller Lindblad-National goes incorporated on and the that globally. which science not greenwashing. year to raises

in partner, marriage both grow to the we and nobody broadening than suited projects add Alaska adding to to focusing Lindblad deep-sea the years shareholder to history, ideal same value to is and with I'm look National base in This extremely at Expeditions. goal world's in And MIT, expedition purpose profitability of the while The cameras and a launched future knowledge and space and Together adding National these experience. with capability, in autonomous knowledge, powerful fronts Geographic, Geographic scientific one. and our of scientific along record horizons better come. value be decades expanded significantly to XXXX the to an is Galápagos time, about will with interest the diver's work the this pilot is to growing have excited beyond forward beyond. the and while guest X with on

now turn let back over over to this Craig. And -- me

Craig Felenstein

of further while ahead. and sustained positioning same momentum in years Thanks, year during expansion the for time, Sven. continued delivered XXXX, growth strong at ourselves Lindblad another operating the

high-quality track expedition vessels results Our is additional primed add and travel. marketing moving experiences and to leveraging of adventure generating capabilities. growing technology audience strategic financial to proven and appealing expanded forward capacity our in a authentic this And while is as delivering and for immersive record on upgraded sales investment we infrastructure platforms as strong are we today momentum build

for a drivers expectations XXXX, financial highlight the have minutes me to from of year. take few Before the our this past I performance we strong growth discuss let

revenue XX% For the the segments to XX% Lindblad full year year with increased $XXX million, Habitat and ago. both company at Natural XXXX, a total versus growth

strong in growth also We the XX% Lindblad as to a segment revenue leverage $XX delivered adjusted by Natural growth led growth Habitat. million, in XX% increase significant at at and operating EBITDA the resulted XX%

segment a mostly Nights, Turning launch was Available in generated to $XXX $XXX of each the Lindblad National increase with ago. December during in XXXX. year-on-year growth a primarily the segments. revenue million Venture driven XX% of compared as The year of by XX% XXXX the million Guest Geographic The from

increase As night Geographic was net expanded of slightly impact from additional ticket certain some the were U.S. to notably also capacity, partially Pacific we most Orion on South and occupancy to itineraries, across the we to higher able XX%. driven from maintaining the while increase yields inventory net the yields season to transitioning Far The per by Russian offset of changes from National by at in pricing $X,XXX shoulder inventory East, the fleet. our

our capacity as points forward we continue to we to ships. expand as price highlights add levels we have and moving ability new the sustain audience Our high opportunity

cost expenses Lindblad of the of well in increase which Geographic XXXX as in offset departures across on the fleet. year year dock a National the tours Operating in part of cost dry as operations to lower due versus existing the additional X% the expenses increased full reflecting by X% current XXXX, charter a side large at were Venture partially ships primarily segment. in Looking of

and higher increased the a to XXXX. further in in marketing XXXX associated commission averaging including from expansion investments ago planned well increasing system costs the our marketing for as growing due X.X% as CRM with previously, our rollout demand growth fuel primarily associated increased with expense with which year revenue, XX% XXXX costs in Fuel discussed increased the versus have travel. we the to of and line XX% of revenue as and on year to the we was spend expense reservation new well was as as capitalize prior expedition fleet capacity and look the due versus Sales

credit booking associated our commissions related in as lower declined of lower transaction taxes costs, card earlier expenses more the refinancing costs absence offset and personnel the versus X% by to with XXXX, in costs and XXXX warrant than year associated debt higher G&A compensation VAT the in were higher Ecuador. stock-based strength expense exchange our with

versus to night $X.X $XXX. a amortization basis Lindblad increased expenses year XXXX related Venture and X% costs, segment addition of increased million compensation, net decreased Geographic also and adjusted included of amortization X% mostly When the transaction and cost to and you the per ago, depreciation the National exclude operating on the fleet. stock-based a cruise to depreciation

this revenue segment in continue XX% XX% Lindblad increase operating million even in invest generated $XX leverage the strong we year, the adjusted past EBITDA growth a to these initiatives. driving Overall, growth to future with as

including Natural leverage departures mentioned, as revenue departures Habitat sales see segment should operating pricing, spend in and partially the future nice additional and year, million. past the of The increase itineraries. that, of continue a I with year-to-date and associated Sven EBITDA a drive further of XX% in The offset million XX% from generated Lindblad cross-selling in costs Natural Habitat businesses, also expanding growth. of Lindblad also the as combining growth well to increase marketing revenue benefits due from even timing XX% to with was to by with this operating Habitat driving additional we $XX note $X.X as increase in personnel expenses to adjusted XXXX, Natural XX% growth the higher average a to

partially year XXXX. in operating The XXXX driven available a foreign year $X.X net $X.X improvement the quarter dividend related offset strong results were in the to taxes operating weighted in company the on the results to due million conjunction count to due or all share $XX diluted $X.X warrant X.X $X.XX debt the diluted shares by our by outstanding per million improved Please of primarily of $XX.X related the versus share issuance additional shares installment diluted in million the by we the to exchange million retiring was was with XX% of increased stockholders a million incurred National expense third $XX.X Resolution. versus the common additional million conjunction also that These XXXX, ago. primarily to interest predominantly during note currency million company. share million in and $X.XX the Geographic second income impact payment million per net in the Total of deemed average and gains of of warrants higher or a X.X with increase $X.X

a Turning of XXXX. The the versus quickly XX%. primarily increase XX% from million December a X% to generated impact the Guest was quarter versus launch Lindblad a offset growth National timing the occupancy ago, fourth to in yield the net revenue which dry year Geographic adjusted in a current the company in XX% the ago. ago and and dock of year to decline quarter by growth of a year, segment while Total increased year in due Nights positive Venture partially $XX.X XX% fourth of revenue X% EBITDA Available X% was

to the earlier, inventory and decline U.S. year. this mentioned shoulder season occupancy fourth on were primarily related in the the yield the Sven As quarter had we that fleet net additional in

lower flat, a depreciation operating compensation, segment XXXX, transaction expenses costs well quarter Venture drive amortization and basis expenses costs of versus were X% VAT as offset National to increased were as a marketing future fourth dock dry increased and expenses spend of excluding Lindblad with the operating and the operating the stock-based Geographic growth. quarter as full associated by on reported and

cruise fee part due quarter same additional to in on quarter expenses X.X% fuel fleet. dock were X.X% the due in the quarter was lower and a nights Fuel decreased fleet basis predominantly the compared fourth of and VAT the XX% prior the above expansion, quarter large operating in to year in the costs XXXX. in and the to XX% revenue across night per Adjusted -- net the due with costs in dry

EBITDA expenses the in growth growth Overall, revenue the a million quarter quarter in flat fourth $X.X the quarter the the in Lindblad resulted and segment, $X.X million fourth operating versus fourth an year to X% in ago. adjusted

of to average the increase versus and to quarter an the growth revenues revenue due segment, million, XX% the Habitat a and tours higher departures. increased departures personnel and X% fourth At million Adjusted pricing. XX% the partially during operating year to for by additional grew costs in $XX.X EBITDA offset to ago with cost due higher expenses Natural marketing additional $X.X increased

and or loss company share Total fourth diluted to common stockholders the million currency million to Habitat due $X.X a year loss primarily loss a a ago reported foreign on or the $X.XX gain in currency of operating forward a of the net Natural contracts $X.X results versus year $X.X $X.X share ago. improved per million $X.XX from quarter million a foreign a available was in at quarter versus

We sheet. positioned well million $XXX spent you XXXX. cash balance $XX $XX in our newbuilds. remain to at a was cash free opportunities. million When million CapEx, unrestricted We extremely of was for only maintenance use included Looking invest million flow with year growth $XX XXXX the and flow for include ended future cash. on in Free

the and the a second reminder, did million National third the for $XX.X Geographic for Resolution. installment credit under agreement during export As proceeds payment quarter, borrow used our we the

the paid The is to $XX million third second quarter anticipated approximately XXXX. of payment contracted in installment of be

for Additionally, upon XX% vessel contract we of in the Endurance on XXXX, million. or quarter first approximately Geographic the delivery due National remaining the the of $XXX the pay will

both likely credit our agreements available in draw will with payments. We down on export conjunction

and mid- Turning The high-teens driven of the segment Endurance the part same of at we launch as of year and with the XXXX from inventory anticipated ticket in year the revenues second the XXXX of XX% National the the XXXX regard full expectations XX% to capacity despite are point of overall pacing large significant a the by projected for to XXXX. range full the revenue Geographic for in year for anticipate the already additional increased full Guest year Lindblad ago. XX% same time to is compared ahead to quarter a expansion Available year are ticket growth year. currently our increase net bookings, our Nights ago at with yields. during We

Given are growth expect and $XXX tour we and $XX trends revenues between $XX the million XXXX total XX% or generating, XXXX, million, capacity XX% additional strong XX% and versus adjusted XX% company XXXX. to million EBITDA the we in growth to booking million $XXX between versus and

note Please in do any significant not cancellations projections to that bookings a due these year slowdown current or assume the coronavirus.

While results we do meaningfully potential include the quarter also given our XXXX destinations could National our year. not habits, we without that a source geographies the we remember alter there impact any certainly Please revenues. travel April change anticipate much where where overall guests, direct is Geographic our the for corresponding the which and operate the costs associated launch Endurance first with of for our start-up ahead expectations will in

growth in reservation Additionally, will benefit CRM new and predominantly of systems, further operating rollout beginning will which include help associated expenses the further of XXXX. revenue our the with XXXX drive

addition -- to In sorry, in XXXX.

addition growth Geographic associated fleet technology discussed Resolution expansion well the we excluding the primarily of primarily vessel CapEx costs expected CapEx later will the this the cash P&L as to of National National in payment and In as related Geographic year delivery previously. $XX Endurance approximately the implementing third new another free installment payment the include flow Growth XXXX for with million generation, from new strong development to in is XXXX, also spend. be strong Maintenance anticipate the to year.

and for any very much to time morning. now you happy have. your answer would be this I may Sven questions you And Thank

Operator

Instructions]. [Operator

come will from question Wieczynski first Steven Stifel. Our with

Steven Wieczynski

maybe of if change booking seen also the past Sven, gave what you bookings terms should extremely kind couple weeks. around And of But could as help you've I the can lack in if there. well. wondering you've or virus of cancellation guys in them any that you And your as So elongated your window well? of over -- you be the detail or talk of a seen rate about being virus impact out good lot maybe obviously, potential guess then

Craig Felenstein

provide Yes. to It and year-on-year of This some positive. is don't in was, everything Craig. that kind to February year-on-year only was up, would of I XX% -- handle would mentioned, mentioned, As say, color? as completely can be Sven opposite, Why January. see January, I but some bookings I but through of was across close Sven returning into not say, start also will had. the itself, continue did, Bookings I growth year-on-year, one prime Yesterday days additional just towards to bookings. best strong the in I fleet. more say, is of the ships really would for new terms Yesterday the we board we've end choppiness, month, the the actually, a were the example. was

I continue on consistent to we a much, So see strength basis. pretty say, would

of pockets there in are higher day. said, That slightly given cancellations any

saw to earlier weeks we XXXX, year later in XXXX last of We opposed all all, are for year. the in earlier trend a starting to the in than previously. over seeing we're with more a see couple bookings, I would say, had bookings But as the consistent little in bit in we seen out further pretty travel that

Steven Wieczynski

partnership you. National any how should that process company renewal obviously. you've with you partnership or start you the and might if that seen and a about wanted about now Geographic play Got then I guys And about to maybe they're differences to major by the guys And how ask different how think Okay. think we owned that out?

Sven-Olof Lindblad

here. Yes. Sven

from how up significantly by we ourselves soon that that of year we perspective ourselves this Geographic So to our year. we in the and formal which generated the absolutely more it's a we partnership business think in business, National XXXX, to a But is travel to will for the knows, into wouldn't Does our earnest next -- quite answer And of together National as in start begin from It's both which with or have nor everybody And years. happening. in fact, a that informally continue terms they'll the so. in Geographic already question? runs discussions perspective, and your such very activity wish as reason no see state. begun, over Geographic been their positive I have relationship, forward, has active healthy move National agreement our

Steven Wieczynski

I Viking And increased picture not talk But investors, this relative you Yes, that's and competition like whether we ask lot space, around if What about how of I kind a a of That's the kind of to there's unique question. start-ups? luxury good of competition. bit And fine. to that yes. from being Silversea. exploration into now, bigger especially is And Sven, space, get the to seems one wanted you get from overly with investors increased guys keeps then that could new more? a the so it think just entrants your some thoughts about these or concerned maybe question

Sven-Olof Lindblad

Yes.

a it competition. to dynamic with it's as obviously, So -- relates situation

one New of coming to of absolute to in terms fastest-growing we how and the we segments perspective of And discuss but now it sort obviously sort in wish days. industry within I small travel this at been the and from competition it not of regularly all, related look way to the travel whole, terms itself. rather related industry is these first react it the it of been the and is to of extremely of way is, internally the expedition has segment. It's segment the the in an

Web. of an this an of and to play what what's What do -- they're them well will. interest. experience is it our people we're lot a try to very, "Okay. if competition reputation, exactly they're think Geographic, days, to take are isolation. What think think if very kind of these sort going to think to of going as It's well conversation, travel, sense, cognizant this then it and to figure National one feature. of a continue particularly People because I They're placed options?" to as -- out, you research. here going in my very harvest that in early in that's not the all a going in the person's to message early that's will happening And drive different idea. going So when they're it's an is They're be think will and that very I you brand -- to raises some important And fare together about? profile I usually are not And relates going I will, with we brand, expands I to does It happen. interest category, invariably the

Operator

Our Alex next from with Craig-Hallum question Fuhrman Group. Capital comes

Alex Fuhrman

that bookings ask season itineraries wanted of I you booking strength that when that do about new been how driven existing itinerary the by newer launches some of shoulder comment you you've strong for Endurance XXXX. for is being the launching? versus in to your the feel on here you've like much seen or Can

more then Endurance. the on And specifically

drive looking new give As to helping been that us close Or customers to as been that that launching, a on booking you gets sense long-time ship? your mostly that for a Has the that well? into new can been customers has of who's voyage itinerary? brand

Sven-Olof Lindblad

Okay.

miss that's of one, me lot let and but let's I wrapped a hopefully and too So try it give much. a questions -- won't into stab then all up

the to relates Endurance. it So as

past pleased initial with course, Of than very, the these leap something this basis about driver community guests, for time -- some an But traction it and innovative us. wider past with come is every up have we're any guests. such it's people totally very of a gaining is new, on that familiarity a because primary we just

sort relates very rest activity different rest fleet seeing on of it of audiences. as destruction products distinct any these the the the But fleet, of of all of not because the appeal to to we're

Galápagos expect least person see, we Escapes going the at we're stage example, Arctic. Baja and us with Costa Endurance. people Rica to that So example, than California list destinations" to are go person very The which and Alaska, for the in their at go the for different who marketing in is lives, the "bucket not to the are to to people this the

our their and their it's very not audience at of and the their to stage and of So sort diverse, monolithic. psychographics. is It's targeted according of their very, interest sort very life

So we have in that, I well order. think, very, very

different that's whatever newness, comes can not that this belong is does approach in with we so old new, And of audiences. because unduly where really they have sort to which compete

Craig Felenstein

Yes.

saw Let Endurance went sail on some the on increase XXXX, we due a with certainly the look When at up because bit me the little just booking of she you today. to a follow throughout large end color XXXX. profile

traveling because folks booked. middle year this part of has now, her that When XXXX, of of the part bookings So later the really the on that the it's booking. those already right early the really you first for at mentioned, part in of Endurance the most Sven the compared was in to this we're year year, seeing fleet, look been across of that as

vessels. we're for today, when remainder and a seeing bookings both the combination for see for we fleet new then across of existing and bookings So of XXXX, the XXXX,

Alex Fuhrman

And Great. customers any helping younger seems to there interest Have Or that's through been Wild audience. quickly Wild customers then transitioning more new traditional just booking ask on I helpful. in could the has Escapes? those you a these go then coming itineraries? of It That's longer, slightly after really if been like Escapes? successfully amongst

Sven-Olof Lindblad

Yes.

will programs know What are lot quickly not or in definitely has a bringing that people do able data new at we absolutely demographic. generate a And we're going of they're bringing It sort subsequent that believe of lifetime -- somewhat we perspective, of a this these activity think I from it value been new we is it to interest So looking be to people. in younger necessarily. of that comes has it sufficiently further get to definitely been community. amongst a lot when

Operator

from Tyler Markets. Capital Our Janney with next comes Batory question

Tyler Batory

Do speak you you shoulder Wild with traditional on up the from follow gap about season to shoulder occupancy you of the think profitability ever added. talked the you're I guys you inventory actually perspective? to the what some occupancy could some close an wanted the that and itineraries those I of trips? First, season comments, in have Escapes of doing And there. opening trips with think your your versus building Can

Craig Felenstein

Sure. Craig. This is

a Sven and can if the he Let give in me sees chime of little opportunity. bit color

a that want trips at us, the just when quite at for because levels that occupancy profitable bit the Wild from we're adding look we little they're they're a So today, to They're you profitability high less not when existing, and margins very fact margins busy given we our overall yields. the season I have of at itineraries, company. perspective those are still the the still but high these say, very Escapes to yet. look on and higher bottom line be on full really just certainly at they're that traveling But the they're would you

on ships actually at occupancy on occupancy the similar Escapes to these said, That is today, the inventory look when doing was we're you the new that we've what the occupancy previously. shoulder-season very added with Wild that

had we we certain had when a occupancy two So at ships, level.

overall to Now we X we where bit occupancy have have X a a profile less guests further, so certainly them the expected in know we ships, basis getting fill ships, terms more ships, very now can yields just profitability It's matter these of cost which them increasing little on because be. the the even we because will already be is but are much we there. of increasing overall

is traditionally season not QX So fleet occupancy is lower look year, inventory. the to time the at reason across to the when you the because this of -- in the the going occupancy I'm shoulder get of but

Tyler Batory

wanted up on competition. Okay. And to the Got also it. That's helpful. I follow

wondering of especially dynamics you're markets coming regions, some the if And the to your you talk other those positioned then competitive little and compares more you and polar there. in to online in Alaska? of Given the Resolution how just also the locations bit competition geographies, how a can then have specifically Endurance those

Sven-Olof Lindblad

Okay.

in ships, vessels. be and in can the on and Resolution because Antarctic ice of its specific areas the the -- winter. in class summer the will in primarily So the of operate coming the the Arctic vessels far, will the longer so class Endurance polar They then operate our these that the heels, newer

now up essentially, to high us Norwegian Swedish the icebreaker to none early been of and for at year. except Arctic investigate what the like the be before and icebreaker I will some there no April a -- was couple this the So up that Arctic, small other Norwegian chartered would -- of ships which small in example, -- it little like we of maybe will be this there Swedish years spectacular. time discovered ever And ago be had going

April there and because interest. be there we'll be to or there's in will either case, don't year any early don't the be And there they there May. those that of up in this at in capacity essence have believe time other no So competition ships

competition. of that you so your question, it will XXX% feel wasn't sure want can further, believe we in I I second go And so stead hold we of part us restate I And can the to good to the differentiate. as might that. relates

Tyler Batory

I that you think the was -- trying of might supply I that's your your a they're I those how to what seeing guys new trips, And of you're get and there's with in some mean what that these to some of maybe they're of locations. how competitors, No, helpful. doing if online sense in how compete doing just coming other markets. compares some

Sven-Olof Lindblad

Yes.

in Alaska this Alaska we of to without And ships built -- allows operate because primarily our U.S. mentioned as U.S. Jones you X the why Alaska. You Act. of is it -- flagships: the is limitations

ships, on fair Alaska is ships, primarily where spend you Alaska. Vancouver, outside have of of from the to you to have a voyage amount a come foreign So other and time interest

not offer are Alaska a there what concentrated so experience. too is U.S. that competing vessels regard. people pure we're flag other And in able And to many

So I size the a think vessels the of matters deal. great

they're matters differentiated that us experience deal. the really offer to fact a Alaska. mass that It great the -- U.S. allows exists or activity in think flag from I create a

Operator

And our come Pendy from will today Greg Sidoti. last question with

Gregory Pendy

in it relative about your prior Just -- mean ship Is be new ship How ship more. costs. new thinking think thinking about launches? April that XX% the be we I should XX% should you more is Craig, that about thinking new mentioned to something I earlier XQ? you're for about be should targeting capacity ship? we just the launch,

Craig Felenstein

when at going looking there new the wouldn't look going to I to you're couple go would of say there's would you're say launch, things I be train that way. vessel. to at over you're it hiring and Certainly, on the ship do. crew I a

not You're going be for used capitalized will purchasing to the be that that expenses. things ship are

of than cost things of ship. operating the more So of the kind it's rather those

at think were we versus with launching the launching Endurance year will look quarter, additional those cost to of a if associated costs going additional layer in the $X we're for the costs QX on at the probably technology platforms, look another you the new you likely $X ago plus that items. have first million when think where to that million in I two I

Gregory Pendy

of That's And still Okay. you time that the I last comment is targeting was kind last helpful. it. think Resolution mentioned the late XXXX?

Craig Felenstein

that's Yes, correct.

in to the launch fourth scheduled quarter XXXX. currently, So of she's

Gregory Pendy

And Okay. one, if can. I final then one just

guys now mean of how I do we're with into I databases. about the a momentum lot of the the just XXXX further the the XXXX Natural Natural guidance. thinking I anniversarying top Habitat? of, out mean continue line you a cross-selling you But did job Just guess, Habitat. very good on

Craig Felenstein

Yes.

things continue itineraries. of I I such think marketing Ben would of doing as say safaris are say we job nature. job focused to or be building are is going polar guest Bressler them, and his to profitable for is would geography see know that And a and bears demand up, they of most or a the great very what They're set up. ratchet that team what doing a I targeted fantastic

for, continue as innovative great have. I own. But on nice reason guests of no would That's more and with grow just that relationship market continue not they're no come that we attracting appropriately continue I more to why see line because Habitat. itineraries, long several we that continue a fully guests, as have Natural there's can benefit to attract their a to the can years. to And doing reason top at predicated job It's new clip Lindblad they of and to a can't and continue they between up grow. they obviously on say, when So a unique sales and why

Operator

over conference question-and-answer our I back Felenstein remarks. session. the would any closing This to Craig turn concludes for to like

Craig Felenstein

up days additional questions any with today. you, next Thank the operator. you, may have. for to joining over catching few you look Thank everybody, us forward We

help So with you. can please Thank just we give us call anything a with.

Sven-Olof Lindblad

Thank you.

Operator

The conference Thank attending today's has you now for presentation. concluded.

now may You disconnect.