LINDBLAD EXPEDITIONS HOLDINGS, INC. Q1 FY2025 earnings call

• Natalya is pleased with excellent quarter one results, with revenues up 17%, adjusted EBITDA up 39%, occupancy at 89% (up 14 points), and net yields at $1,521 (highest ever).
• Strategic pillars include maximizing revenue generation, optimizing financial performance, and exploring accretive growth opportunities.
• Initiatives: Piloted onboard cruise sales program (to be fully rolled out by end of 2025), continued Disney partnership with targeted marketing, international expansion (UK brand introduction), cost innovation and fixed assets utilization driving operating expense leverage, accretive growth with National Geographic Expeditions European river experience partnership, and sustainability initiatives like artisan training and teacher fellowships.

For the 2025 first quarter, total revenues increased 17%. The Lindblad Expeditions segment generated 11% growth, with revenues of $131 million. The Land segment saw a 38% increase in revenues, reaching $49 million. Adjusted EBITDA increased 39%, with margins improving 260 basis points. Occupancy increased 14 points to 89% compared to 76% in the prior year. Net yields increased 25% to $1,521, the highest quarterly net yield in the company's history. Lindblad Expeditions segment had 11% growth in revenues, while Land segment had 38% growth. Adjusted EBITDA for the quarter was $30 million, with $5.8 million increase at Lindblad segment and $2.5 million increase at Land Experiences segment.

• Reaffirmed total company tour revenue between $700 million and $750 million and adjusted EBITDA between $100 million and $112 million for 2025.
• Expect net yield growth of 7% to 10% for 2025, with midpoint of this range expected to increase 21% compared to 2019 levels despite a 49% increase in capacity since 2019.
• Guidance incorporates changes in drydocks, occupancy, and anticipation of macroeconomic challenges.

No detailed specific risks discussed, but mentions of being not immune to economic volatility and navigating complex macroeconomic environment.

Q: Steve Wieczynski asked about strong occupancy in Q1 and if it was related to Disney partnership or other factors, and about current booking environment and yield cadence.

A: Natalya said it's a combination of expanded audience (including Disney), revenue management, and drydock fluctuations. Rick mentioned net yield guidance is 7%-10% growth due to demand generation and capacity growth.

Q: David Hargreaves asked about impact of capacity adjustments on yields and status of dynamic pricing and Land segment integration.

A: Rick said lower capacity in Q1 due to drydocks helped occupancy, Natalya said dynamic pricing strategy started with new booking management system and progress made in various programs, and they're making progress in integrating Land segment.