Lindblad Expeditions Holdings today reported results for the first quarter ended March 31, 2016.
Lindblad generated tour revenues of $61.6 million in the first quarter of 2016, an increase of $6.2 million or 11.2% as compared with the prior year quarter.
Adjusted EBITDA for the first quarter of 2016 was $17.6 million as compared with $14.2 million in the prior year quarter, an increase of 23.9%.
Net Yield for the first quarter of 2016 was $1,008 as compared with $1,004 in the prior year quarter.
Review of Lindblad’s First Quarter 2016 Results
“The Company delivered solid results in the first quarter, driven by the strong performance of the fleet. Guest nights sold increased by over 10% versus the prior year period, as we made changes in vessel deployments in the quarter,” said Sven-Olof Lindblad, President and Chief Executive Officer of Lindblad. “Adjusted EBITDA was up 23.9% for the quarter, as we benefitted from an increase in available guest nights and favorable operating leverage.”
Tour revenues in the first quarter amounted to $61.6 million, as compared with $55.4 million in the first quarter of 2015, which represents an increase of $6.2 million or 11.2%. The growth was primarily driven by $6.1 million higher guest ticket revenues derived from changes in vessel deployments and price increases.
Net Yield in the quarter amounted to $1,008 as compared with $1,004 in the first quarter of 2015. Lindblad recorded 47,619 Guest Nights Sold compared with 43,210 in the prior year quarter, an increase of 10.2%, and an occupancy rate of 91.8% in the first quarter of 2016 compared with 92.0% in the 2015 quarter.
Adjusted Net Cruise Cost per Available Guest Night amounted to $670 in the first quarter of 2016, as compared with $701 in the same period in the prior year, which represents a decrease of 4.4%. The decrease was primarily driven by a decrease in fuel costs and the impact of a 10% increase in the number of Available Guest Nights, partially offset by an increase in cost of tours related to two additional voyages, and in general and administrative costs due to public company costs.
Adjusted EBITDA was $17.6 million in the first quarter of 2016 as compared with $14.2 million in the same period in 2015, an increase of $3.4 million, or 23.9%. This increase is primarily due to the benefit of increased revenue from a 10% increase in guest nights sold, which exceeded the increase in variable costs from providing those additional guest nights and an increase in public company costs. Net income was $10.5 million for the first quarter of 2016 as compared with $6.9 million for the 2015 quarter.
Lindblad uses a variety of operational and financial metrics, including non-GAAP financial measures, to evaluate its performance and financial condition. The accompanying financial data includes additional information regarding these metrics and a reconciliation of non-GAAP financial information to GAAP.
John T. McClain, the Company’s Chief Financial Officer also added: “We continue to see a solid booking pace for 2016 with 89% of projected guest ticket revenues for the 2016 financial year on the books as of April 30, 2016, compared with 98% at the same time in 2015 for the 2015 financial year, a reduction of approximately $5.3 million, much of which is in the fourth quarter. We have a number of initiatives in place to drive revenue growth in this period.”
Fleet Activities
On April 25, 2016, the Company took possession of the Via Australis, which will be used in the Company’s operations in the Galápagos Islands. The Company has begun a significant renovation and expects to deploy the ship during the fourth quarter of 2016. The Via Australis has been renamed the National Geographic Endeavour II and will replace the National Geographic Endeavour. In December 2016, the Company will also expand its travel offerings with new expeditions in Cuba aboard the Panorama II, which will be the fifth chartered vessel in Lindblad’s fleet.
As has been announced previously, the Company has two new coastal vessels on order and the build is proceeding on schedule. The first vessel, which has been named the National Geographic Quest, is expected to be delivered in the second quarter of 2017 and will sail in Alaska and British Columbia during the summer of 2017. The second newbuild vessel is expected to be delivered in the second quarter of 2018.
