Lindblad Expeditions Holdings has reported second quarter 2023 tour revenues of $124.8 mill an increase of $33.9 mill, or 37%, compared to the same period in 2022.
The increase was driven by a $23.4 mill increase at the Lindblad segment and a $10.5 mill increase at the Land Experiences sector.
Lindblad segment tour revenues of $87.4 mill increased by $23.4 mill, or 36%, compared to 2Q22, primarily due to a 34% increase in available guest nights operations were ramped up.
The year-on-year growth was also driven by a 5% increase in net yield per available guest night to $1,034, due to increased pricing and broader fleet utilisation.
Land Experiences tour revenues of $37.4 mill was an increase of $10.5 mill, or 39%, compared to 2Q22, primarily due to additional departures and higher pricing.
A 2Q23 net loss of $25.6 mill was recorded, $0.48 per diluted share, compared with net loss of $30 mill, $0.59 per diluted share, in the second quarter of 2022.
The $4.5 mill improvement primarily reflected the ramp up of operations, partially offset by the write-off of $3.9 mill in deferred financing fees, due to refinancing the Company’s export credit facilities, a $2.2 million increase in interest expense due to additional borrowings and higher rates, a $1.6 mill increase in stock-based compensation and a $1 mill tax benefit in 2Q22.
Second quarter adjusted EBITDA of $6.2 mill was an increase of $12.4 mill, compared to the same period in 2022 driven by a $10.1 mill increase at the Lindblad segment and a $2.3 mill increase at the Land Experiences sector.
Lindblad segment adjusted EBITDA of $2.7 mill was an increase of $10.1 mill, compared to the same period in 2022, primarily due to increased tour revenues, partially offset by higher cost of tours and increased personnel and sales tax costs related to the ramp up of operations and increased commissions related to the revenue and bookings growth.
Land Experiences segment adjusted EBITDA of $3.5 mill was an increase of $2.3 mill, compared to 2Q22, primarily due to increased tour revenues, partially offset by higher cost of tours and increased personnel costs related to the ramp up of operations, increased commissions related to the revenue and bookings growth and higher marketing costs to drive future growth.
Returning CEO Sven-Olof Lindblad (pictured), said “Lindblad delivered another quarter of strong year on year growth, as we continue to ramp up operations and put the pandemic behind us. While we are proud of what we have achieved thus far, what really excites us is the opportunity ahead given the massive interest in experiential travel.
“With a proven track record of delivering high quality and authentic travel experiences over the last five decades, along with the strategic investments we have made over the last several years to expand our fleet, diversify our portfolio of land offerings, upgrade our technology footprint and enhance our overall infrastructure, we are uniquely positioned to significantly capitalise on that growing demand.
“There will certainly still be short-term challenges given what the industry is emerging from, but we are beginning to meaningfully tap into the expanded earnings power of the company and look forward to building additional shareholder value in the months and years ahead,” he said.
The company’s cash and cash equivalents, restricted cash and short-term securities were $197.4 mill as of 30th June, 2023, compared with $129.6 mill as of 31st December1, 2022.
This increase primarily reflected $61.5 mill in net cash from financing activities primarily related to the May issuance of $275 mill of 9% senior secured notes and $19.5 mill in cash from operations, due to the strong operating performance and increased bookings for future travel, partially offset by $14.7 mill in cash used in purchasing property and equipment, predominantly related to maintenance on existing vessels and investments in our digital initiatives.
In May, the company issued $275 mill of 9% senior secured notes, maturing 2028, with proceeds used primarily to pay the outstanding borrowings under its previously existing export credit agreements.
The senior secured notes are guaranteed on a senior secured basis by the company and certain subsidiaries and are collateralised by certain of the company’s assets.
As of 30th June, 2023, the company had a total debt position of $635.1 mill and was in compliance with all of its applicable debt covenants.
Current expectations for the full year 2023 are as follows:
- Tour revenues of $550 – $575 mill.
- Adjusted EBITDA of $70 – $80 mill.
The Company has substantial advance reservations for future travel with strong gross bookings, partially offset by short-term cancellations.
As of 24th July, 2023, Lindblad segment bookings for travel during 2023 increased by 43%, compared with bookings for 2019 as of the same date that year.
