Lindblad Expeditions (LIND)

Craig Felenstein CFO
Sven Lindblad CEO
Steve Wieczynski Stifel
Alex Fuhrman Craig-Hallum Capital
Call transcript
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Ladies and gentlemen, thank you for standing by, and welcome to the Lindblad Expeditions' First Quarter Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Craig Felenstein. Thank you, you may begin.

Craig Felenstein

Thank you, April. thank call. joining and XXXX for everyone, earnings first-quarter morning, you us for Lindblad's Good on call me chief With the executive founder Lindblad, officer. and our today is Sven will opening Sven with liquidity before call our comments, follow the and with open Q&A. and financial will results some some then for begin we on details I

You can our release earnings website. investor the find in our latest of relations section

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

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

comments our the the that comparable the addition, to reconciliation directly measures. financial most let out disclosures In contained the associated Sven. measures over reference of turn And me with may other way, earnings release. are financial A GAAP call of non-GAAP and company's in

Sven Lindblad

many for. a huge York some Craig, interesting time us victory today. with for good a be news morning, joining X, on Thanks, gave morning opening started that everyone, been opening and this thanks a This X, sure long on me fully and would and may New that July on certainly people be that I'm smile phone July pretty call. Responsibly waiting we've which

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ships the size on I which reflects value flexibility, of allow this our think for.

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expedition the investors, me there call more continued explore. a get back our where to your should of today. thank and and value We and ahead experiential out more I you, past who your all itching enthusiasm to And years Expeditions now optimistic of let travel have Many traveling Craig. Before the turn all I about do to Lindblad time be long-term public the maintained year become and recognized excited and over finish, meaningful for involvement. over thanks to the want for

Craig Felenstein

Sven. Thanks,

our over as United measures allowed we from of preserving thank world XXXX cash to further a voyages XXXX and million in where as for crew office again we past their cash our unrestricted QX that once me on implemented preparing pandemic ensure raises restricted personnel their cash position COVID we for execute QX we year operations. operations let preservation capital This The has continue in, end vibrant since dedicated in cessation the our possible. in same over company $XX across in over put year jump is emerge our the to while States. back cash diligent in to the million we strong a and to I the with targeted were Before million resiliency the commitment well and $XX March XXXX. us capital increase deposits as we primarily related originated of whenever operations, total prior on the place It over and year been ended a plan us the in liquidity past return and and $XXX comprehensive to to fortify in paused to

growing the year So begin and virus ramping offerings ample product travel. over sail to the to we us liquidity to expand capacity build on fleet our this the for will to had upon we authentic adventure demand the June, we At up prior to and momentum capitalize the have as diversify same past our the operations. investments begin our we allow time, made have

offering while of have markets more acquisitions March our XX% this we options have leading last ship, With levels and will expanding once Off recent addition further delivery we resources delivered DuVine the are of over her our later two addressable National the sister and operational. our of high-quality Geographic was with Resolution, increased anticipated platform, our fleet XXXX the And guests. the National the will travel Path, broadened opportunity which capacity by growth marketing fully brands and operators, with to year, we from benefit Endurance, the Geographic Beaten expertise and that from our

Turning current our operations. to

ships minimally ship- all did quarter, expedition $X quarter, continue and first and we to build little we the remain down During Resolution. We $X primarily crew, due of to minimize costs. the maintenance up to with and for and safely required sailing, CapEx on our capital over spend on land-based costs this Venture a related an laid operating and from million the year past million $X the a dry Quest resume prepare to additional million as docks ago,

and to begin travel, administrative during the and to to our all was opportunities back quarter, And limit paid media focusing and restart bookings. first On resuming to with expected to and through discretionary appropriate continued is the advertising primarily did that that future our office marketing on workload We as continue reductions expenses we and we spending ramp front, move nonessential we as returns employees, general generating regards furloughs, operations. spend, minimize of necessary, spending. plans, continue to and closer bringing employee elimination to digital implement

at quarter us same first operating enabled ago. XX% the Looking and taxes measures by and expenses amortization, taken interest nearly total depreciation during reduce the year before the P&L, versus a quarter the to

usage cash which spent cash interest Path, was guest on future and by $XX included for spent to voyages. offset guests net million DuVine in the spend costs, the The quarter travel refunds and our lowered On this positive principal approximately million, acquisitions million the Off cash of $X the on exceeded payments net significantly spent on flow in CapEx. from and spent $XX $X we cash million Beaten net operating $X million as far payments front, rescheduled

new in and to the currently and reschedule, the accelerate, make same opted question of have really amazing return Turning about that that current we The seeing ago to as social ago. XX% our trends. out robust XXXX no XXXX a travel to we focusing time from for to opportunities, and ahead on as as The well bookings for were begin through is new are situated significant beyond. that a for Bookings overall year guests include is strong XXXX, years bookings ahead returning travel as we as operations. audiences well there at continues demand digital as both we outreach bookings are point of voyages for to up resume guests, pent-up marketing only destinations secure for And advisors. geographies. get ship booking and at two we and expect explore well year-on-year are open increased where XX% Demand and trends is for well to same world's advertising additional of There earnest, as to they XXXX XXXX. canceled XX% targeting to more trade travel, but both the as XXXX

usage all principal toward excluding As $XX and approximately average, be still $XX capital office we new future necessary of ship to for million expenses, million operating payments. resuming today including payments, on monthly expenditures work and guest payments operations, any estimated made to guest travel previously our refunds interest expected is and and but cash

as future as to same as upcoming needed. growing reservations in and market will on upcoming continued voyages we as deposits the to anticipate service, plans final this to hire staff we crew, cash related course, office ramp expeditions, new monthly furloughed projects resume travel. inflows operating usage payments from return ships part-time reinstate transformation implement we our as for time, cash a increase and digital Of do operations, At for well spend

we $XXX ended Street outstanding, payment Main the debt XXXX quarter of increase third obligations, credit in in $XX.X XXXX, with $XX as borrowings principal our our $XXX as installment National of first from for the million Resolution. during the under the million April of primarily the end loan Geographic at reflects This export the well million million during ago. quarter QX an year agreement on incremental fourth Looking a

quarter additional for in Resolution the regards be work covenants to $XX on to fourth fourth upon drew million company we XX, to the the the loans will our anticipated related through of continued installment has XXXX. term April final year. of our the the to ratio with leverage existing an this of drawn amended lenders during leverage Following the With to and vessel following and further down it suspend delivery, is March be which revolver borrower covenants, its quarter, $XX.X XXXX, quarter, still payment million its and

and and to term, available take platform over a runway, marine over that past for operations time, at a shareholder to become steps additional month, come. With over return reality company. increase Thank the taken just travel it the answer happy same we in our to existing the much enable capitalize will year experiential to the the we some expand those the enhance will will advantage geographies have. this to resumption strong you product morning. liquidity demand your and any to in as years may vibrant of set questions which are from build now today, operations our operations, pandemic a very and positioned on are And would for the value the you have while, take to our us still, ready well time I growing us enable absolutely emerge long be of to to And time Sven full to


[Operator with Instructions] Steve comes And Stifel. from your first Wieczynski question

Steve Wieczynski

guess, first congratulations. I it's Sven, congratulations. all, of So

So point. understand in you're ships additional about to how layering thinking I want this at

decisions, to a sounds to at it just like this you want I in some that in that You your be remarks might ready shifts point. dig about mentioned, additional Sven, launch prepared guys already and assume point, understand right that, would you to more those I think go that's Is demand-based. making it? little that the about at all how this way bit

Sven Lindblad

Yes. that factors. and, on Well, you One the those identifying think is two interested geography things. curve of timing in secondly, really understanding it's and based audience demand the is our

big it's and So it's a there's make or between obviously, to really to want a commitment a sure that you a demand. rigorous because, confluence geography process build and ship ships,

Craig Felenstein

clear, this referring you're now, ships new ships launching to be new several to just or Steve, years are talking launching about ultimately, year? you

Steve Wieczynski

No, no. this I meant year. What was later

go you're in three ships to but guess, sounds obviously, putting sometime in to start misunderstood to actually ready you this ready like think I And about So have early summer? June. maybe it you, water the the back I additional later

Sven Lindblad

I Yes. see.

Sorry, I My misunderstood think I apologies. question. your

there got which right? as Norway are in booked, So has that. ship the that's there yet, necessary at acceleration rapidly. our have obviously of we've a of second we really, give the of these but The the for is side of other to to one voyages, of are everybody involve Washington always on a are another still there be officially cannot that yet certain order a that come And moment pace. open, three the place. now So open. go Columbia allowed the higher has these you is not. Norway, United challenge States. perspective. then path. is, sort We're Norway, restrictions. are lots booked said, areas, lot a River things places One not and have vaccinated, some clear very a you the we have voyages at openings minute example, people in things in solution example, are perspective. A to really are is particular and We interesting area. much requiring County-by-county a the relaunch we is that them. it's an medical And plans the which into guests just of we've all changing state area in or in And lots particular Oregon, is river, really I'll

that is it's Greenland place summer. important and be yet able Iceland in We anticipate that an open, not and likely it's this people interested open. we'll of have later but Greenland lots to for operate is Iceland. we us, highly booked

order to ship. reactivating on a a pull all the that have finally it's processes series of trigger happen So to in

Craig Felenstein

One more flexibility, of lot now, but of talked I'll the that operate. we which even this an size of in Steve, we is things and even a of how while given both were so add, immense amount operating, have kind the we've the the that is we about ships past,

And are have for as opening, in quickly, given interesting aren't pivot can has there geographies that experience years, pivot unique geographies operating we team here in these guest some we result, a many, many a if to that there ideas pivot as demand, itinerary. is can and to. long So the as we the different

of It's So year. some when figuring envision this we do a what are. those are out and just openings matter later they

Steve Wieczynski

you, guess Craig. Thanks I color for be the and then will this for

new those And look look booking a at my trends I basis? at the by pushed read for the without XX% and and on Resolution they if If like 'XX higher to guys Just capacity? 'XX. think least, do think that I 'XX being, what notes trends Endurance. are versus XX% can if don't and I know being you the for like-for-like it right, guess are you up the can't. I Obviously, you is, 'XX, or I get booking question trying would

Craig Felenstein

it can it's but like color an little It's give have me specifics, not sales. question giving you you interesting same-store I than always rather we you If get we a Let close. because Endurance, Explorer the on the whether the have be didn't other Orion the these likely or of or our lot destinations. our some travel other ships, a Resolution or of would've guests

were for are from for and not we of versus where a can given max XXXX the And are we year you sat really prior today revenue as today that I years. we two look the than further last get in to it's when a is apples-to-apples comparison XXXX. in to along But tend can out a we a that sit we any what ships. prior we as way year these at where for the look of at percentage you just things revenue fair XXXX, where we percentage strip is year, So percentage tell those max

terms in definitely when overall are bookings, percentages, voyages pacing ahead two even of we So strip the you out. those of in terms

Steve Wieczynski

Understood. see And demand mean, out seeing are front, and sounds mean, pricing I that one I strong especially extremely, the everything lot I terms can itineraries. the more in your one. guess, like pent-up from customer everything for base guys years, of on looks, in ask if quick the we you exotic I a of extremely

I to you the So from next to extreme the couple I way the guys a get pricing come terms And think of question going forward? thoughts power And standpoint. kind just power about guess have should is pricing over in pricing it seems of like some you want years. strong moving your of

Sven Lindblad


So it's interesting.

have could you're fall rather but be put of suggesting cliff believe much felt just sort in what not greatest too gouging, a it well, a We suggesting you -- focus as sort off point, that never pricing. a or where could wise to of prices there pushing is could at too, our too inventory gouging. certain expansion We Because I'm you hard. be position perceived of than on opportunity

highest Our without pricing industry. I in is the question. mean already the

We that gets hog we're to so very of pushing be too too that. that fast, don't want because hard. cautious a And slaughtered about

Craig Felenstein

to were of think obviously, you about where move Nights can Guest our to were were going not right? price. as aspects we When operating going and It's And be post-Resolution, Nights. today, inventory in today, at And simple, be occupancy, XX% about But Steve, when significant And when but XXXX as about want that, increased we you massive to in we'll we we'll maintain pricing push to above the going dramatically makes in forward. of those where cognizant pandemic, we you through back to the we you're is of. we the are you to something growth. pretty then Guest it what's pricing maintain even revenue, maintain able the level, have our you continue we stable relatively a in occupancy and of where two continue XXXX evaluate so. we're increase. and are it's XXXX. of Available that, to think availability see other occupancy think think which to terms that before sense able You And from we're geographies happened be some it have price we the where a drivers we to do If have

don't system want in to evaluate pretty on distribution, much but too move on terms You we'll itinerary aspects, as as the forward. as both price, itinerary stress we in put all an well basis by of much


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

Alex Fuhrman

could my that sure your I'm good portfolio broader finding just of customers? really it integrate just And assets of was Great. And you opportunities I but don't at bit there your that forward? offering? Thank you to all, going those some at the more people marketed of question. of you seen about very that to good you've Is far in news. have much for plan how anything existing so acquisitions I seeing what bigger know that's market taking talk Or be if terms wondering just about if offerings some prices? could of a made? some little you're you've kind in interest from properties

Sven Lindblad

audiences these you. Well, a Beaten our all, of they'll right? for we've Thank they'll the Off what meet question. first on acquiring year, interest. whatever, the couple next -- set and of a all And are is be that they Great only we've in companies, a diverse companies really I'll in committed and thesis bicycling diverse through that's we interest. year, one these And safari their fact of year, behind it's have in know efforts, done this essence. cross-marketing have ourselves companies is following we the DuVine months terms you'll whole aggressive Burgundy that Because Path, been are had that meet in to just Africa these of Antarctica somebody who's be the

And strategy. really so feels us, audiences a just to our our is constantly collective putting the opportunities companies, more in smart like individual front really, that than of

emails records, like exposed of consequence terms inquiries these are our records Now audiences. we in introducing much inquiries for new not the being example, have OBP, larger a of only obviously bunch started to audiences. DuVine multiple And and as a but whole companies to with of

So we companies to believe well component advantage taking of as and that makes of synergies find cross-marketing very as this We're certain eager this amount strategy makes of the amount tremendous sense. a a sense. strategy fit huge additional

Alex Fuhrman

to next like opportunities may couple used? they use of have a so, to a That's going sensitivity a wondering rebook Can voyages thinking it sounds helpful. we're could Great. XXX% Beaten start like and credit if also to over as comment mean, past on that, And start customers. or some years the a and of get financial few a the those and of business impact travel to for the curious been not you've And a of got what Off then I prior lot issued a credit a of how or standpoint of you're the really demand to from credits those canceled for to of your customers just give you've half be see the lot us just and here, to going huge properties, one question's that there standpoint plans then over you surge point, be years? there's you lot had about from both to years reporting about other sense a as price Path,


on the line. remain Please

one moment. Just

Okay, now. Felenstein, Mr. reconnected you're

Sven Lindblad

hear can us? April, you


I can. can. I

reconnected You're now.

Sven Lindblad

on? may have lost Alex. We still you Alex, Okay.

years hear got It happened everybody. to of me us. hopefully, that, can disconnected. doing never about We this, XX-plus in you but Sorry

several and raised have about the over the implications So we years. credits future going next question had a was that it's that travel to

comments, right my implication our of is in really now, XXXX only earlier future credit in the XX% is mentioned XXXX about travel and I bookings. future As

have the cash beyond XXXX we close So still to them with a of bookings, I'd the credit opportunity say, significant majority in have the made. The future and of bookings XX% travel regards been already bookings. to of

couple to that's of So a going next years. utilized be lot of over the

guests but were they a with they repeat frequency of B if future take that can travel again we to from moving additional The an is outward same have travel given among actually off the if which voyage. they credit. reschedule high to credit our have can of is a that helpful year an will, they're us A burn we're they that to when to Point going what they voyages terms ago, additional see look part if they And in travel, credit likely do balances other credit, confident is facet of they experience, voyage book have of you from the will sooner forward. folks this, then And they will great for a Point their which utilize

So should some moving stimulate us additional business it help forward.

time, same and cash While at years. little next in be a the year a half one bit one and a overhang of the


no time. there further at And Instructions] are questions this [Operator

Craig Felenstein

you please Okay. morning. this Thank you. you, your time over the And feel us. appreciate everybody, next for to have and if joining can Thank days. additional reach out, We questions, several free we connect

Sven Lindblad

Thank you.


Thank you for the today’s joining concludes conference. This call.

disconnect. now may You