During Q1, bookings eclipsed the same period in 2016 by 86%, with higher demand for most all destinations in 2017 and significant demand for 2018 departures. All told, bookings year-to-date are up more than 60% versus the prior year.
Four voyages were canceled due to National Geographic Orion's engine failure in Antarctica on Dec. 27. The ship was repaired and returned to service April 19. Plus, two weeks of Central America cruises on Sea Lion were canceled for repairs to the ship's air-conditioning system.
All had been heavily booked, said cfo Craig Felenstein. The revenue loss for both ships totaled more than $9m, $11m in ticket revenues offset by $1.9m of insurance revenue to cover certain expenses.
Q1 net income was $625,000, or a penny per share, on revenues of $63.1m, compared to net income of $10.5m, or 23 cents per share, on revenues of $61.6m in early 2016.
While occupancy was lower—87% compared to 92% a year ago—Lindblad segment net yield held steady at $1,008 per night thanks to higher pricing. Feldstein estimated it would have been approximately $1,060 if not for the voyage cancellations.
For full year 2017, the Lindblad segment is currently pacing $12m ahead of the same point a year ago, despite the cancellations. This is mainly due to the additional inventory from the upcoming launch of National Geographic Quest and additional charter expeditions in Cuba.
The company is currently at 92% of its full-year projected ticket revenues, which compares to 93% of the 2016 full-year ticket revenue at the same time a year ago.
2017 tour revenue is now forecast between $275m and $281m, 14% to 16% higher than in 2016, while adjusted EBITDA is expected to be $47m to $49m, a 12% to 17% increase.
Q2 metrics are likely to be down year-over-year, while Q3 and Q4 will benefit from strong bookings for National Geographic Quest, the first newbuild in Lindblad's history. Nearing completion at Nichols Brothers Boat Builders in the Seattle area, the coastal ship is scheduled to enter service in June, and its inaugural season is virtually sold out.
Sven Lindblad called National Geographic Quest 'the most sophisticated passenger vessel built in the US in decades.' So far, the company's other ships in the area are doing well despite the added capacity.
Sister National Geographic Venture is on track for delivery in Q2 2018, and the company is very close to selecting a yard for its first blue-water newbuild, planned for Q3 2019 delivery.
Lindblad said it will be the world's most thought-out and best equipped global expedition ship, 'enabling us to penetrate regions inaccessible before, in great comfort with an array of modern tools for enhancing the expedition's tours.'
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