Q2 loss was $25.6m, or 48 cents per share, greater than the consensus forecast of a 32-cent/share loss, but down from the year-ago $30m loss, or 59 cents per share.
The $4.5m improvement primarily reflects the ramp-up in operations, partially offset by a $3.9m write-off in deferred financing costs due to the refinancing of export credit facilities and a $2.2m increase in interest expense from higher rates and increased borrowings related to May's refinancing.
Revenues rise $33.9m
Revenues were $124.8m, up $33.9m from a year ago and higher than the $114.6m consensus forecast. This was driven by a $23.4m increase at the Lindblad segment and a $10.5m increase in the land experiences segment.
Lindblad segment tour revenues of $87.4m were up from $23.4m, or 36%, primarily due to a 34% increase in available guest nights as operations continued to ramp up.
$1,034 net yield but occupancy lags
The year-on-year growth was also driven by a 5% increase in net yield per available guest night to $1,034. Occupancy was 74%, slightly down from a year ago and not yet up to historical levels of 90%.
Each point of occupancy should yield $4m to $5m in additional EBITDA. 'So clearly, the most valuable opportunity is to get back to the occupancy levels we have historically achieved,' said Sven Lindblad, who returned as CEO following Dolf Berle's departure.
Adjusted EBITDA was $6.2m, up $12.4m driven by a $10.1m increase at the Lindblad segment and a $2.3m increase in the land land experiences segment.
The company reported strong reservations for future travel with bookings for 2023 43% ahead of bookings for 2019 at the same point in 2019. For 2024, Lindblad is 'a little bit behind where we were four years ago' but on significantly more inventory and 'trends are all heading in the right direction,' according to CFO Craig Felenstein.
'Inordinate discounting' by new entrants
Sven Lindblad cited the need to improve shoulder-season deployment and noted a headwind is the 'inordinate amount of large-scale discounting we are seeing in the marketplace as new entrants try to gain market share, a practice that has absolutely no chance of success in the long run.'
On the plus side, Lindblad said his 50-year-old brand is 'capitalizing on the massive growth of interest in expedition travel' and its partnership with National Geographic.
New reservations system
As well, the company increased its sales force and launched a reservation system, Versonix Seaware, in the quarter, integrating 15 systems including sales, marketing, accounting, operational and analytics tools.
This reservations system is 'the biggest and final building block' in a digital transformation which included new customer relationship management and content management systems, a new digital asset management system and a new customer data platform.
Lindblad said this implementation has 'supercharged' online bookings, enabling cabin selection, new ways to display and merchandise different aspects of voyages and search for trips and information faster than before. It's also enabled dynamic pricing.
The company seeks ways to reach new audiences such as a recently launched collaboration with Food & Wine for 14 expeditions in 2024 along the Columbia and Snake rivers, with programming elements, wine selections and guest speakers.
$275m in new 9% notes
Lindblad increased financial flexibility in May by issuing $275m of 9% senior secured notes due 2028.
Sven Lindblad not back in an 'interim position'
Asked during Thursday's earnings call to clarify the recent CEO change and his plans, Sven Lindblad said in the past two years he'd been involved in meetings and strategic decisions so it made sense for him to return when Dolf Berle moved to another opportunity.
Lindblad indicated that at some point — 'and it's not going to be very soon' — when it's time to get another CEO, he also intends to spend time helping his successor understand the complexities of the business.
'So this is not an interim position, but it's one that we'll assess after each year ... Right now, I'm extremely happy to be back doing this,' Lindblad continued. 'I think the timing is such that it will be very helpful to the business for a period of time.'
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