Lindblad Exhibition Holdings has reported third quarter tour revenues of $101 mill, an increase of $13.7 mill, or 16%, compared to the same period in 2018.
This increase was driven by growth of $12.1 mill at the Lindblad segment and $1.7 mill at Natural Habitat.
Lindblad segment tour revenues of $76.6 mill was an increase of $12.1 mill, or 19%, compared to 3Q18, primarily due to a 14% increase in available guest nights, mostly from the launch of the ‘National Geographic Venture’ in December 2018.
The year-on-year growth also reflected a 7% increase in net yield to $1,054, due primarily to higher pricing and changes in itineraries, as well as an increase in occupancy to 94%.
Natural Habitat revenues of $24.4 mill was a rise of $1.7 mill, or 7%, compared to the third quarter a year ago, due primarily to higher ticket revenue from additional departures and increased pricing.
However, the group reported a net loss of $500,000 for 3Q19, $0.01 per diluted share, compared with net income of $5.1 mill, $0.11 per diluted share, in the third quarter of 2018.
The $5.6 mill decrease primarily reflected improved operating results that were more than offset by a $4.7 mill increase in income tax expense, a $2.7 mill non-cash deemed dividend related to completing the warrant exchange, a $2.3 mill loss on foreign currency and a $1.2 mill increase in depreciation and amortisation, due largely to the addition of the ‘National Geographic Venture’.
Third quarter 2019 Adjusted EBITDA of $24.1 mill was an increase of $7 mill, or 41%, compared to3Q18. This increase was driven by growth of $5.9 mill at the Lindblad segment and $1.1 mill at Natural Habitat.
Lindblad segment adjusted EBITDA of $20.6 mill was a rise of $5.9 mill, or 40%, compared to the third quarter a year ago, as the increased tour revenues were partially offset by operating costs on the ‘National Geographic Venture’.
The third quarter also included increased costs, due to higher marketing spend to drive long-term growth initiatives, higher commission expense related to the revenue growth and increased personnel costs partially offset by lower value-added tax expense.
Natural Habitat adjusted EBITDA of $3.5 mill was an increase of $1.1 mill, or 43%, compared to 3Q18 as the revenue growth, which was partially offset by increased operating costs related to additional departures and higher marketing and personnel costs to drive long-term growth initiatives.
Sven-Olof Lindblad, President and CEOr, said, “Lindblad delivered another quarter of strong financial growth and sustained operating momentum this past quarter as the strategic investments we have made to expand our capacity are being met by the robust demand for high quality and immersive adventure travel.
“Over the past two years, we have dramatically increased the available berths across our fleet and, as we have added inventory, we have also been able to grow occupancy and net yields. At the same time, bookings for future travel have remained strong for both our existing ships, as well as for our two new state of the art polar builds, the ‘National Geographic Endurance’, scheduled for delivery in 2020, and the recently named ‘National Geographic Resolution’, scheduled for delivery in 2021.
“With continued demand from loyal past guests and a rapidly growing population of new travellers looking for unique expedition experiences with a proven operator, we are well positioned to create additional shareholder value in the years ahead,” he said.
The company’s cash, cash equivalents and restricted cash were $112.1 mill as of 30th September, 2019, compared with $122.2 mill as of 31st December, 2018.
The decrease primarily reflected the purchases of property and equipment of $76.7 mill, mostly related to the construction of two new vessels, but partially offset by $41.6 mill in net cash provided by operating activities, due to the strong operating performance.
The current year also includes $25.1 mill in net cash provided by financing activities primarily due to $30.5 mill borrowings under our second export credit agreement in conjunction with our second instalment payment on the ‘National Geographic Resolution’.
The company’s current expectations for the full year 2019 are:
• Tour revenues of $341 – $346 mill (10 – 11% growth).
• Adjusted EBITDA of $67 – $70 mill (22 – 28% growth).
