Q4 2022 Lindblad Expeditions Holdings Inc Earnings Call
Hello, everyone and welcome to the Lindblad expeditions holdings 'twenty to 'twenty two.
[music].
Breaking your call today.
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Holdings 2022.
Pat.
Two quarter and full year financial.
Till officer.
My name is Bruno and I will be operating your call today.
Thank you Bruno.
In the presentation you can register to ask a question by pressing star followed by one on your telephone keypad.
With me on the call today is desperately when black Chief Executive Officer.
<unk> financial officer.
Officer for some opening comments and then I will follow with some details on our financial results liquidity and 2023 expectations.
Sir.
Before we open the call for Q&A.
Our year end earnings.
Our earnings release, and the Investor Relations section of our website.
Call Chief Executive Officer.
Let me remind everyone that the companys comments today.
The details of our financial results liquidity and 2023 expectations.
Certainties.
For Q&A.
So it will result and performance.
In the Investor Relations section of our website.
Vince.
Before we get started let me remind everyone that the company's comments today.
No obligation to update any such forward looking statements.
The risks and uncertainties.
So the risks involved in forward looking statements.
Rents to be materially different from these expectations the company cannot guarantee the accuracy of any forecast or estimates.
<unk> conciliation of the most directly comparable GAAP financial measures and other associated disclosures.
More information on the risks involved in forward looking statements.
Let me turn the call over to.
<unk> SEC filings.
Thanks, Craig.
Our comments May reference non-GAAP financial measures a reconciliation of the most directly comparable GAAP financial measures and other associated disclosures.
On the very positive outlook, we have.
And with that out of the way, let me turn the call over to Doug.
Thanks, Craig.
Following our journey.
Thank you all for joining us today.
<unk> includes both organic growth in our existing fleet and land companies and also strategic acquisitions that are value accretive out of the gate.
And years ahead.
Travel options for our adventurous guests.
Our journey.
Adding to our platform of premium travel companies focused on creating life changing guest experiences has been a powerful means.
Any future acquisitions that are value accretive out of the gate.
<unk> team, we continue to be energized by this dual pronged strategy and are pushing forward in each of these areas.
For companies focused on creating life changing guest experiences has been a powerful means.
At Lindblad.
Yes.
Natural habitat.
Team, we continue to be energized by this dual pronged strategy.
That is.
<unk> beforeward in each of these areas.
Last year.
<unk> sport, but before providing you with more detail I do want to thank all of the people at Lindblad expeditions.
We're well poised.
<unk>.
Just two.
On cycling an adventure off the beaten path and classic journeys for their tremendous hard work.
<unk> surgeons.
Work without their efforts our company could not have emerged from the pandemic, so successfully and would not be so well poised.
One had restarted operations. It was in 2022, and we started getting more traction.
As being the year of resurgence.
Action comfortable with foreign travel.
With sailing by the end of 2021, and all of our land companies, including the three acquired during 2021 had restarted operations. It was in 2022 that we started getting more traction last year guests became more comfortable with foreign travel.
So for US this past year financially.
<unk> and <unk> requirements, and our vendors and partners across the globe.
Italy.
<unk> essentially returned to a state closer to that of pre pandemic operations.
Sure.
Craig will provide more detail, but we made significant progress this past year financially.
And half of 2022.
Holly in dollars improvement in EBITDA versus 2021.
Two exciting year regarding the fleet.
EBITDA stood at a loss as we ramped operations momentum built over the course of the year.
Yes.
<unk> EBITDA positive in the second half of 2022.
Yes, Patrick Resolute.
In the <unk> segment of the business. It was an exciting year regarding the fleet.
So at least 40% increase in guest capacity versus where we were in 2019 performed extremely well in the early and late part of the years in Antarctica and during the summer months.
<unk>.
Months.
Sister ships, which together represent an approximately 40% increase in guest capacity versus where we were in 2019 performed extremely well in the early and late part of the years in Antarctica and during the summer.
Remote places on Earth.
Their patented X power wholesale technology.
On smaller purpose built ships. These two ships with capacities of 126 passengers are able to provide more acts.
<unk> active and comfortable in the most remote places on Earth.
Snakes per voyage.
With our philosophy of focusing on smaller purpose built ships. These two ships with capacities of 126 passengers are able to provide more access to remote locations and a higher number of shore landings per voyage.
H.
Larger ships can provide.
In the Emirates, and see off Antarctica than ever before.
It also explore areas that we have never visited before with unforgettable wildlife.
For in our history.
It is featuring prominently in our guest experiences.
We're only two of the typically hard to find magnificent polar species that these new ships were able to take our guests to observe.
<unk> West passage.
Weeks earlier.
Abilities in polar ice.
<unk> III narwhal.
Polar ships. This past August we also welcome to the National Geographic Islander, two into our fleet, replacing the Islander in the Galapagos.
<unk> observed based on the ships.
Indoor outdoor dining and amenities, such as a science hub fitness studio and sauna.
Yes, we also welcome to the National Geographic Islander, two into our fleet, replacing the Islander in the Galapagos. She features more spacious commendations indoor outdoor dining and amenities such as a science hub fitness studio and sauna.
The relationships that we have forged for decades and the ship community.
Attributes in her first months of expeditions.
This past year, we also solidified our operating rates in the Galapagos Islands with the extension of our existing coupons.
And the arena.
Yes.
When the deep relationships that we have forged for decades, and the ship community and with partner shipyard.
Partners, we have on the mainland as well as in the islands themselves.
<unk> bites in the Galapagos Islands with the extension of our existing coupon <unk> or guest permits for an additional 20 year peer.
Companies.
Our relationships with the Ecuadorian government and the many partners we have on the mainland.
<unk> seen more recently with the purchase of off the beaten path.
Because many people in our company over 40 plus years.
We have been building a platform company centered around best in class adventure travel companies.
As you May recall, starting with the acquisition of natural habitat in 2016, and more recently with the purchase of off the beaten path.
<unk> me to more than double.
Last two years, we've been building a platform company centered around best in class adventure travel companies.
Hey, Bob guests.
<unk> announced that as a group the land companies generated nearly $18 million in EBITDA in 2022 more than double with natural habitat alone delivered in 2019.
Companies under one umbrella.
<unk> strong wave of gas.
So it says we capture an even greater share.
<unk> segments, and they've done a good job building the team and infrastructure to handle this growth.
Sure.
Surgeons in 2022, we are even more excited by the extra expectations, we have for 2023 and beyond.
Sustained growth as we capture an even greater share.
And we're optimistic.
Sure travel plans.
Mr Caruso standpoint.
As excited as we whereby the resurgence surgeons in 2022, we are even more excited by the extra expectations, we have for 2023 and beyond.
To grow.
And we look ahead there are several reasons we are optimistic.
So that interest.
<unk> a financial standpoint.
Just to wave season for books.
In 2023, and both revenue and EBITDA.
<unk>, we have experienced record inbound call and booking volumes.
Grow.
<unk> January we averaged over 50% higher net bookings volumes.
Some called the wave season for bookings typically in the January and February timeframe, we have experienced record inbound call and booking volumes.
That year.
<unk>, we averaged over 50% higher net bookings volumes than in either 2022, or 2019 and bookings for 2023 are currently up 47% versus 2019 on the same date that year.
We effectively doubled the organic link clicks to our website from social media channels as well as on our on platform.
We can't digital marketing and CRM capabilities on top of our historic combination of email brochures and letters.
Analytics, which will make our marketing approach more effective.
Organic link clicks to our website from social media channels as well as on our on platform.
<unk> patients and booking system Seaware in Q2 of 2023.
So now beginning to unlock the advanced analytics, which will make our marketing approach more effective and more cost efficient.
<unk> advisor partners.
Looking forward, we expect to rollout, our new reservations and booking system Seaware in Q2 of 2023.
There's some capability.
We.
These changes will occur over the course of 2023.
<unk> team and for our travel advisor partners.
<unk>.
Ultimately linking this system to Salesforce and a number of marketing analytics technologies will mean, a new day in our CRM capabilities.
The majority of the new hires occurred and the revenue generation ranks of the organization.
These then improve.
<unk>, who chief commercial officer, Noah Brodsky, who has great expertise and performance Mark.
<unk> optimism for the future we strengthened our team meaningfully in 2022, the majority of the new hires occurred and the revenue generation ranks of the organization.
<unk>.
We hired our new Chief commercial Officer, Noah Brodsky.
Technology, and digital teams and added resources and expertise to our call center and pre voyage guest service.
<unk> feed veteran John Delaney, who is focused on building our base of travel advisor relationships.
This excellent candidates as we recruit for roles across multiple functions in the company.
<unk> aims and added resources and expertise to our call center and pre voyage guest service team.
But I want to mentioned is they are continuing to elevate our cancellation.
It has resonated with excellent candidates as we recruit for roles across multiple functions in the company.
<unk> and about health risks related to travel, particularly to more remote places.
But there are just a lingering few that I want to mentioned is they are continuing to elevate our cancellations.
So there for Covid.
<unk> to see some headwinds with regard to airline travel.
<unk> turned about health risks related to travel, particularly to more remote places.
<unk>.
So a few countries who still require quarantine measures if someone test positive for COVID-19.
Continue to see some headwinds with regard to airline travel and areas such as cost availability or reliability.
But the Norwegian fjords and small bird.
<unk>, which has numerous stops in Russia.
Bart unrest in Peru.
Soon given the war with Ukraine.
Okay halt trips to Machu picchu.
To have previously booked to the northeast passage the option to sale of the northwest passage as well as the Norwegian fjords and fall Bard.
And in Peru is improving and we intend to soon return.
Bart caused us to temporarily literally halt trips to Machu picchu.
Don.
<unk> <unk>, Amazon, which has also impacted several of our Galapagos itineraries.
Inside the company, which has made us stronger.
<unk> in Peru is improving.
We're nimble in responding to external factors, such as evolving international health policies and geopolitical events.
<unk>.
We have also taken this time to revamp and upgrade core processes and systems within the company.
It's made us stronger.
In our business.
Faster and more nimble in responding to external factors, such as evolving international health policies and geopolitical events. We are also taking this time to revamp and upgrade core processes and systems within the company to handle a higher volume of business.
<unk> assumption of content.
<unk> motivating factor and this work has been that guests are demonstrating an increased appetite for the natural world after more than two years of restricted trap.
It gives me great optimism.
Tim is evident not only during their trips and voyages.
By updating you briefly on our ongoing work across the globe.
<unk> combination.
<unk> that is central to our mission and purpose.
<unk>.
Lindblad expeditions.
Product and company capabilities that gives me great Optima.
<unk> on our environmental and conservation programs.
Besom close by updating you briefly on our ongoing work across the globe.
<unk>.
<unk> area that is central to our mission and purpose.
Plastic free on our ships as we have been since 2019, and we will maintain our commitment to using only sustainably sourced seafood.
<unk> have included our commitments to being 100%.
Police sourced wherever possible.
We will also continue to be single use plastic free on our ships as we have been since 2019, and we will maintain our commitment to using only sustainably sourced seafood all food on our ships will continue to be locally sourced wherever possible.
We will continue to provide space on our ships for scientists.
<unk> communities, we visit through our artisan fund and through our global Gallery, retail shops, which bring locally created art and other products to our guests.
This class of 50 elementary Middle School and high School teachers, who will travel with us as part of the Lindblad expeditions National Geographics grows and our teacher Fellowship program.
As well.
That they will be going on voyages across the world.
<unk> pre class of 50 elementary Middle School and high School teachers, who will travel with us as part of the Lindblad expeditions national geographic growth and our teacher Fellowship program.
World All those places home.
They will be going on voyages across the world.
Okay.
World These voyages.
Greg.
We will help them teach our next generation and the importance of loving.
Particularly ramped our operation.
Serving the most remote places on Earth.
<unk> began to significantly capitalize on the strategic investments we made over the last several years.
On the call over to Craig.
<unk>.
Thanks, Tom.
<unk> product offer.
But throughout 2022, we dramatically ramped our operations.
Earnings endemic levels.
<unk> revenues as we began to significantly capitalize on the strategic investments we made over the last several years to expand our fleet capacity.
Substantial positive EBITDA in 2023.
<unk> the earnings potential of the company has increased considerably since pre pandemic levels and with strong operating momentum across our robust platform and a growing demand for authentic and immersive travel experiences. We are poised to deliver substantial positive EBITDA in 2023, while further positioning ourselves to take full advantage of our high quality travel portfolio and deliver.
<unk> growth in the years ahead.
Company revenue for the full year 2022 of $421 million increased $274 million versus 2021.
Hitting our land acquisitions from 2021.
In 2019 due in large part to our expanded fleet and additional land focused off.
<unk> revenue for the full year 2022 of $421 million increased $274 million versus 2021, and was $78 million or 23% higher than 2019 due in large part to our extended fleet and additional land focused offer.
<unk> <unk> and higher pricing across the.
<unk> revenue of $278 million increased $195 million year on year, and $6 million or 2% versus 2019.
Leads.
Primarily due to the ramping operations.
We have across the expanded fleet as we grow occupancy levels.
<unk> and higher pricing across the fleet.
<unk> as we increased guest counts across our fleet.
Okay, 5%.
Through our land platform.
Full year, we're not quite yet back to 2019 levels.
<unk> you want.
When a new opportunity we have across the expanded fleet as we grow occupancy levels and increased yields.
On page 22 of $143 million was more than double 2021.
Through our land platform.
19.
<unk> reading the three businesses, we acquired in 2021 and driving more guests in natural habitat.
<unk> shipped to U S National parks.
That segment for the full year 2022 of $143 million was more than double 2021.
Europe and Latin America.
19.
Erica adjusted EBITDA in 2022 was a loss of 11 million.
<unk> <unk> off the beaten path immersive trips to U S National Parks do volumes luxurious bike tours in places like Italy, and France, and classic journeys walking adventures across Europe , and Latin America.
Higher than the full year of 2021.
Erica in 2022 was a loss of <unk> 11.
One team from natural habitat alone.
And from our land experienced segment.
But a loss was a $38 million improvement from the full year 2020 one.
Land experiences EBITDA was $14 million higher than the full year 2021.
The ramp occupancy levels.
One delivered in 2019 from natural habitat alone.
Looking a little closer to the cost side of the business.
The $8 million improvement in the full year 2021.
<unk> and taxes increased $222 million versus 2021.
Occupancy levels.
$1 million increase in cost of tours versus a year ago, primarily related to the ramp in ship expeditions.
<unk> expenses before depreciation and amortization interest and taxes increased $222 million versus 2021.
By $159 million increase in cost of tours versus a year ago, primarily related to the ramp in ship expeditions.
And the number of ships in operation.
Crew costs as well as expenses related to operating additional land based trips.
<unk> <unk>, primarily due to higher commissions and royalties related to the increase in revenue.
Revenue in 2021, reflecting higher fuel prices.
And an increase in the number of ships in operation.
Increased $31 million, excluding stock based compensation and one time items versus a year ago, primarily due to higher personnel cost.
<unk> <unk> related to the increase in revenue and from increased search and direct mail marketing to drive future bookings.
Loss higher deposits on new reservations for future drop.
$1 million, excluding stock based compensation and one time items versus a year ago, primarily due to higher personnel costs.
And 23 cents per diluted share.
US credit card commissions.
<unk> versus net loss available to common stockholders of 125.
<unk> deposits on new reservations for future trials.
<unk> reported a year ago.
Total company net loss available to stockholders of $116 million or $2 23 per diluted share improved $9 million versus net loss of valuable to common stockholders of 125 million.
So related to the delivery of the National Geographic resolution in September 2021, and our debt refinancing in February 2022.
Partially offset by a $13 million of additional interest expense.
Two recent depreciation related primarily to the launch of the resolution.
Mostly related to the delivery of the National Geographic resolution in September 2021, and our debt refinancing in February 2022.
The current year also included a $4 $5 million increase in depreciation related primarily to the launch of the resolution higher tax expense of $8 million and $16 million lower other income.
Revenue increased 80% compared to the same period in 2021, and 56% greater than 2019.
22 versus 2021 from the utilization of the search grant for covered expenses.
Seven.
Yes.
Our last call. This was anticipated given the seasonality of our business.
Compared to the same period in 2021, and 56% greater than 2019 due to the expanded fleet and growth of our land offering.
<unk> estimates and remain well positioned to continue to ramp operations.
On our last call. This was anticipated given the seasonality of our business.
And $40 million from the end of 2021 with free cash flow use of $40 million as cash from operations of 24 million.
And well positioned to continue to ramp operations.
Dollars and Capex of 38 million.
<unk>.
We did over $20 million spending on the National geographic Islander, too and our digital transformation initiative.
Hello, a use of $40 million as cash from operations of 24 million.
<unk> Sim across our expanded platform.
$6 million and Capex of $38 million.
Which included over $20 million of spending on the National Geographic Islander, too and our digital transformation initiatives.
The Lindblad segment is in a strong booking position for the upcoming year pacing, 47% ahead, where we were at the same point in 2019, and we have already booked well over 80% of our full year projected ticket revenues for the year.
Waves.
Year.
As Dov mentioned the Lindblad segment is in a strong booking position for the upcoming year pacing, 47% ahead, where we were at the same point in 2019, and we have already booked well over 80% of our full year projected ticket revenues for the year.
Cancellations in occupancy in the early part of the year.
The company tour revenue in 2023 between $550 and $575 million and adjusted EBITDA between 70 to 80 million.
Here, we anticipate a return to more normal levels of cancellations as we move through 2023.
So on occupancy in the early part of the year.
Strong results in 2023, and while there will likely continue to be some short term choppiness.
Installation policies in place prior to the pandemic and anticipate a return to more normal levels of cancellations as we move through 2023.
The strong booking position moving forward, along with an expanded fleet and a broader set of product offerings.
They continue to be some short term choppiness.
And the pandemic.
And our guests are once again experiencing net thrill of exploration.
Rick.
We have ample liquidity to weather any immediate headwinds and with the strong booking position moving forward along with an expanded fleet and a broader set of product offerings.
Ladies and gentlemen, if you'd like to ask a question.
And then Mick.
Star followed by one on your telephone keypad.
Please go ahead. Thank you for your time. This morning, now dolphin I would be happy to answer any questions you may have.
Now when a mutual microphones.
Ladies and gentlemen, if you'd like to ask a question.
It's from Steve with Penske from Stifel.
<unk>.
Steve Your line is now open.
Press Star followed by two I'm pleased to also remember to our mutual microphone.
Good morning.
So so Craig just wanted to dig in a little more around your some of the commentary you just made there about your initial guidance for the year end.
Can you maybe help us think about the range that you did you put out there meaning.
Good morning.
Take you.
So Craig just wanted to dig in a little more around your some of the commentary you just made there about your initial guidance for the year end.
Can you maybe help us think about the range that you did you put out there meaning.
It seems the flow through down to the <unk>.
EBITDA line is probably a little bit less than what we would've expected so any commentary there.
Around your calcium around your cost outlook.
For this year would be helpful as.
Another question here is look if you look at the revenue guidance it seems to flow through down to the.
Well when we provided guidance for 2023, the focal point and they're really the driving factor behind a lot of.
The variability in the guidance is going to come related to occupancy as you might imagine the cost base of the business.
We feel is very.
Understandable and fixed and we know what that will look like here over the next kind of 12 months, but it really comes down to the occupancy levels both in.
Related to occupancy as you might imagine the cost base of the business.
We feel very.
Understandable and fixed and we know what that will look like here over the next kind of 12 months, but it really comes down to the occupancy levels both in.
<unk>.
In the.
Two variables, which will ultimately drive us.
<unk>, which right now they are trading very very positive.
And there'll be more on the revenue side that it would be on the cost side with regards to the flow through from revenue to EBITDA, There's really two things going on.
First thing is we are expecting.
Variables, which will ultimately drive us.
In our land based businesses by definition, you have a lower margin associated with them.
With regards to the flow through from revenue to EBITDA Theres really two things going on the first thing is we are expecting.
For.
The significant growth at our land based businesses and our land based businesses by definition, you have a lower margin associated with them.
Yeah.
We do expect to see some nice nice growth across all of the land based businesses there'll be have an umbrella today.
From our guests are performing really really well.
We have a higher EBITDA, but do so at a lower margin.
Larger ships.
It relates to the occupancy levels across the fleet the new ships that we built the endurance and the resolution, which are getting just absolutely rave reviews from our guests are performing really really well.
He percent trending towards 60% as they get to the occupancy levels that we would traditionally expect for those ships.
We're still building to that and as a result, the the margin of those ships will be lower until the occupancies get all the way up to those levels.
Should be somewhere well north of 50% trending towards 60% as they get to the occupancy levels that we would traditionally expect for those ships were still building to that and as a result, the margin of those ships will be lower until the occupancies get all the way up to those levels.
<unk> Hello here at this point.
And I know you've talked about kind of your buyback program.
Now, it's kind of been released from that.
Main first.
Look you. Obviously you are starting you should be starting to generate some cash flow here at this point.
And I know you've talked about kind of your buyback program.
You now have kind of been released from that.
Main first.
So we have on hand, and the opportunities in front of US we really look through the same lens that we've looked at.
How do you think about using your cash.
From here moving forward throughout 2000.
The primary focus here is to drive organic growth first and foremost we just feel we have a significant amount of opportunity to continue to do that.
But we really looked through the same lens that we've looked at.
Our yields are today, so that would really be primary driver number one.
At connect which is.
One two was to look for M&A opportunities.
Is driving organic growth first and foremost.
We have a significant amount of opportunity to continue to do that.
<unk>, which will improve the long term growth profile of the company, we've done a pretty good job of that of being what I would say is judicious with our capital spend in that area over the last six years and will continue to do that moving forward and then the third area in the absence of those two things is to return capital back to shareholders. We did that certainly back in prior to the pandemic.
And as things become more clear here with regards to.
But over the last six years will continue to do that moving forward and then the third area in the absence of those two things is to return capital back to shareholders. We did that certainly back in prior to the pandemic.
I believe that the shares are attractive at the price point that they're at today, but we have a variety of corporate needs moving forward that we want to focus on as well. So that's the lens that will.
Certainly.
Okay got you great color. Thanks, guys appreciate.
Great time to return capital back to shareholders.
Hey, Steve.
We believe that the shares are attractive at the price point that they are at today, but we have a variety of corporate needs moving forward that we want to focus on as well. So that's the ones that will use.
Your line is now open please go.
Got you great color. Thanks, guys appreciate.
Thanks, very much for taking my question and congratulations on what sounds like a strong start to 2023.
Alex.
Ask about some of the lingering challenges that.
Your line is now open please go.
That and try to get a sense of how much they might be weighing on.
The question and congratulations on what sounds like a strong start to 2023.
<unk>.
In the past.
Insistently now we're getting good news out of foreign countries that are lowering their requirements and it's only just a few such as New Zealand Panama.
Communicating with each other in their community.
Even more lenient policy than they had in the past.
And I think health concerns are going down dramatically.
Some weeks ago than they are today is the world.
But on the ships.
Obviously gets back to guests that are communicating with each other in their community.
Say that those are more significant.
The airline issues were more significant.
<unk> installation policy we've.
And they are today is the world.
Is is kind of getting back into more of a routine so.
So I would say those are improving but I I would say that those are more significant.
Going to more of what is the industry standard, which is a even a higher level of penalty for cancellation closer to 15%.
Policy, which does have a penalty associated with cancellation and in 2024.
It will improve but on a relative basis, you could would I would say the external factors are more significant than the internal ones.
Or installation closer to 15% of of.
Let me turn it over to Craig for for a little more specific as it relates to how that's affecting EBITA.
I would say of the external factors are more significant than the internal ones.
And that would be true throughout our industry, but I think we're negotiating them fairly well, let me turn it over to Craig for a little more specific as it relates to how that's affecting EBITDA.
And then we were in 2022.
We're not back to the 90 per cent levels that we were back in 2019 and all of these things are an overhang on that side of the house, it's hard to say how much.
I want to get to you as a company we're not there yet.
I think it would be much better than we were in 2022, but we're not back to the 90% level that we were back in 2019 and all of these things are an overhang.
That side of the house, it's hard to say how much.
They have the ability to cancel as I've mentioned as we get through 2023, and certainly more to the back half of two dads.
Cancel and they may not be related told me they may be related to any sort of illness.
Because we can't fill that ship in a short period of time, where they have the ability to cancel as I've mentioned as we get through 2023, and certainly more to the back half of 2000.
20th adopt mentioned is it's important to remember that fuels still Edwin for US you know traditionally fuel, it's only been about three or 4% of our overall costs. It's certainly ranking higher than that right now prices have come down on the fuel side from where they were at the end of 2022 or I would say more towards the middle of the end of 2022, but they're nowhere near yet where they were.
Back in the 2019 timeframe. So there is a headwind on that front as well, which is it back to.
Keep it up about that is is that in response to.
That's really helpful. And then if I could ask golf, though it looks like you're going to be chartering some oriented.
<unk> on other Regan.
The two in 2024 can you tell us a little bit more.
And that so.
Or is that.
Those who might not be so familiar we've had a long relationship with the sea cloud.
<unk>.
And the original sea cloud.
<unk> <unk>.
Just a fantastic charter for us for many years. So it's on the strength of that experience that we wanted to expand the relationship to yet another ship.
<unk>.
Two.
The original sea cloud.
The graphic orientation actually Alex.
Here's so it's on the strength of that experience that we wanted to expand the relationship to yet another ship the sea cloud too.
Which will have that same general geographic orientation actually Alex.
The greater Mediterranean and then down into the Caribbean is where these ships are designed to go and these are sailing ships, they're a different.
Experience onboard more of a historic.
With our.
A full mat and sale.
But also add guests.
For real failing enthusiasm so we consider this to be not only.
<unk> and its point of sailing, but then can learn more about the broader expedition product that we offer.
The inquiry with our.
And with our existing fleet.
For this Mister teach it can be helpful. But certainly also financially.
The sort of the.
The vantage point of sailing, but then can learn more about the broader expedition product that we offer.
Go Alex you need to go.
We consider this strategically helpful, but certainly also financially and audience Bill.
So from Ryan somebody from William Blair.
<unk>, Okay. That's really helpful. Thank you very.
Please go ahead.
You need to go Alex you need to go.
And congrats on another night <unk>.
Oh.
[laughter].
Don't for Craig.
The headwinds you're kind of covered here so far.
The Blair.
Uhm.
<unk> <unk> <unk>.
<unk> the macro backdrop here.
Hey, guys Marine Congrats on another next quarter.
<unk> <unk>.
Here.
Shipped out in terms of <unk> getting shortly.
Can you talk a little bit about what you're seeing from from the consumer and some of the macro backdrop here.
Couple of things on the.
Your next or or trying to.
If anything we're actually seeing a shift more to the up rather than the down.
Leaving shortly relationships.
<unk> is aside from the price points that we're maintaining or rising on our what I would say it's more traditional fleet.
Newer price points on some of our newer inventory.
We're actually seeing a shift more to the up rather than the down.
Oops.
What you're seeing across the fleet is aside from the price points that we're maintaining or rising on or what I would say it is more traditional fleet.
As it is.
These points on some of our newer inventory.
Regards to our guests the only thing that I would say has changed a little bit here in the short term. This is really just during the waves season as we are seeing more newer guest as a percentage versus repeat guests.
Which is always higher during the season, we tend to get more newer guests during leaf season that we get repeat yes.
Little bit here in the short term. This is really just during the waves season, because we are seeing more newer guest as a percentage versus repeat guest.
Is always higher during the season, we tend to get more newer guest during leap season that we get repeat guest.
The skew has been a little.
Now as a percentage of all business and we are seeing from other sources.
As we are seeing and I've talked a little bit about our marketing strategy in our marketing success.
We are seeing more direct business right now as a percentage of all business and we are seeing from other sources.
We're just seeing a higher incidence of people, particularly for our core.
The guests in their demand.
Such as Antarctica.
And they add to that I think a lot of this is the function of the.
The web as opposed to in response to brochures.
[noise].
Or or letters or emails.
Incidents of people, particularly for our core.
<unk> continue that throughout the year.
Such as Antarctica, Galapagos in Alaska that are coming in from.
From the web as opposed to in response to brochures.
Ear organic N and organically.
And so that's been nice to see and we hope we can continue that throughout the year.
Are you are you looking more actively bear or.
<unk> and then.
Queens out.
I thought you kind of excited about pretending to dwell upon strategy here, okay mechanic and organically.
We have a strong preference for one versus another we're just focusing on the very best guest experiences.
Or.
Oh, we'll be appealing to our guests.
Are you able to deal with with I remember too.
Sure that we pay.
I don't think that we have a strong preference for one versus another we're just focusing on the very best guest experiences.
So in my mind.
Feeling to our guests.
<unk> approach and the people inside the company who are doing this are looking not only at land company opportunities, but also shifts and even companies.
You know, we can grow but at a price that we think is accretive in so.
And marketing organizations and operating infrastructure that would allow us to.
One side of the company who are doing this are looking not only at land company opportunities, but also shifts and even companies.
That have ships and may be based elsewhere in the world that have.
About the quality of our diligence and the way we are able to work, particularly with founders.
Proration from which to build and and serve guests all over the world. So.
Good next step by selling to accompany such as ours, who knows that we care about their guests and.
And the way, we are able to work, particularly with founders.
In the world and for the World and so shared ethos is probably as important as anything else.
By selling to a company such as ours, who knows that we care about their guests and.
Okay.
Trying to.
Thank.
Good good work in the world and for the World and so shared ethos is probably as important as anything else when.
When we were looking at opportunities.
Yeah.
Alright. Thanks.
Thank you.
As a reminder, ladies and gentlemen to ask further questions. Please press star followed by one on your telephone keypad.
Thank you for final remarks. Please go ahead.
Thank you Bruno and thank you everybody for joining us this morning, and we look forward to speaking with you about the company moving forward here and if you have additional questions. Please feel free to reach out.
<unk> <unk> Chief Financial Officer.
Pretty ketchup thank.
Sure.
Thank.
Thank you Bruno and thank you everybody for joining us this morning, and we look forward to speaking with you about the company moving forward here and if you have additional questions. Please feel free to reach out.
<unk>.
[music].
Yeah.
[noise].