Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1]. Group 1 - The investment strategy is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1].

Acquisition and Expansion - The company completed the acquisition of Torcatt Enterprises Limitada for $16.0 million, expanding its vessel and guest capacity in the Galápagos Islands[74]. - The company operates a fleet of 12 owned expedition ships and seven seasonal charter vessels, focusing on remote destinations such as Alaska, the Arctic, and the Galápagos Islands[65]. Financial Performance - Tour revenues for Q1 2025 increased by $26.1 million, or 17%, to $179.7 million compared to $153.6 million in Q1 2024, driven by a 3% increase in guest nights sold and a 7% increase in guests traveled[99]. - The cost of tours rose by $8.4 million, or 10%, to $92.8 million in Q1 2025, primarily due to operating additional voyages and higher costs[100]. - General and administrative expenses increased by $5.5 million, or 20%, to $32.7 million in Q1 2025, mainly due to higher personnel costs and stock-based compensation[101]. - Selling and marketing expenses grew by $5.5 million, or 24%, to $28.2 million in Q1 2025, attributed to higher commissions and increased marketing spend[102]. - Depreciation and amortization expenses increased by $4.0 million, or 35%, to $15.3 million in Q1 2025, related to asset depreciation and amortization from the Thomson Group acquisition[103]. - Net income for Q1 2025 was $1.0 million, a significant improvement of $5.2 million compared to a net loss of $4.2 million in Q1 2024[99]. - Adjusted EBITDA for the company increased by $8.4 million, or 39%, to $29.98 million in Q1 2025 compared to $21.61 million in Q1 2024[107]. - For the three months ended March 31, 2025, the company reported a net income of $1,011,000 compared to a net loss of $4,210,000 for the same period in 2024, indicating a significant turnaround in performance[116]. - Adjusted EBITDA for the consolidated entity increased to $29,982,000 in Q1 2025, up from $21,606,000 in Q1 2024, reflecting a growth of approximately 38.7%[116]. - The Lindblad Segment's Adjusted EBITDA rose to $26,320,000 in Q1 2025 from $20,472,000 in Q1 2024, representing an increase of about 28.5%[118]. - The Land Experiences Segment saw its Adjusted EBITDA increase to $3,662,000 in Q1 2025, up from $1,134,000 in Q1 2024, marking a substantial growth of approximately 223.5%[118]. Operational Metrics - The company utilizes various operational and financial metrics, including Adjusted EBITDA, Net Yields, and Occupancy, to assess performance and financial condition[80]. - The company’s operational metrics include Available Guest Nights, Gross Yield per Available Guest Night, and Net Yield per Available Guest Night, which are critical for performance evaluation[84][88]. - The company reported that its Lindblad brand tour revenues are traditionally larger in the first and third quarters, influenced by seasonal demand[96]. Debt and Cash Management - As of March 31, 2025, the company had $188.9 million in unrestricted cash and cash equivalents, alongside $46.4 million in restricted cash[119]. - The company reported long-term debt obligations of $635.0 million as of March 31, 2025, with expectations that cash on hand and future operating cash inflows will be sufficient to meet obligations for at least the next 12 months[120]. - Net cash provided by operating activities increased to $48.4 million for the three months ended March 31, 2025, compared to $43.9 million for the same period in 2024, reflecting an improvement of $4.5 million[121]. - Net cash used in investing activities rose to $29.0 million in Q1 2025 from $6.5 million in Q1 2024, primarily due to the acquisition of Torcatt Enterprises Limitada and capital expenditures on vessels[122]. - The company had a working capital deficit of $124.7 million as of March 31, 2025, compared to a deficit of $114.0 million as of December 31, 2024[129]. - As of March 31, 2025, the company was in compliance with all covenants related to its debt facilities[127]. Strategic Partnerships and Sustainability - The relationship with National Geographic has been extended through 2040, enhancing guest experiences through expert-led expeditions[65]. - The company emphasizes eco-conscious travel through partnerships with organizations like the World Wildlife Fund, enhancing its sustainability initiatives[67]. Risks and Challenges - The company faces risks such as geopolitical factors, fuel price fluctuations, and competition, which could impact its financial performance[62]. - The company operates two segments: the Lindblad segment and the Land Experiences segment, which includes various adventure travel brands[73].

Financial Performance - Lindblad Expeditions reported break-even quarterly earnings per share, compared to a Zacks Consensus Estimate of a loss of $0.12, and a loss of $0.10 per share a year ago, indicating an earnings surprise of 100% [1] - The company posted revenues of $179.72 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 19.65%, compared to year-ago revenues of $153.61 million [2] - Over the last four quarters, Lindblad Expeditions has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Lindblad Expeditions shares have lost about 23.1% since the beginning of the year, while the S&P 500 has declined by 3.9% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is -$0.25 on $154 million in revenues, and -$0.06 on $709.4 million in revenues for the current fiscal year [7] - The outlook for the industry, particularly the Leisure and Recreation Services sector, is currently in the bottom 27% of over 250 Zacks industries, which may impact stock performance [8]

Lindblad Expeditions (LIND) Q1 2025 Earnings Call May 06, 2025 08:30 AM ET Company Participants Rick Goldberg - CFONatalya Leahy - CEOSteven Wieczynski - Managing Director Conference Call Participants David Hargreaves - Analyst Operator and thank you for standing by. At this time, I would like to welcome you to the Litblad Expeditions Holdings, Inc. Reports twenty twenty five First Quarter Financial Results. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, the ...

Financial Data and Key Metrics Changes - Total company revenue for Q1 2025 was $180 million, an increase of $26 million or 17% compared to Q1 2024 [18] - Adjusted EBITDA increased by $8.4 million or 39% year-over-year, reaching $30 million [19] - Net income improved by $5.2 million to $1 million, with income available to stockholders approximately breakeven at $0.00 per diluted share [22] Business Line Data and Key Metrics Changes - Lindblad segment revenues were $131 million, an increase of $13 million or 11% compared to the prior year [19] - Land experiences revenues were $49 million, an increase of $13 million or 38% compared to Q1 2024, driven by increased trips and the acquisition of Wyneland Thompson Adventures [19] - Occupancy increased by 13 percentage points from 76% to 89%, with net yield per available guest night increasing by 25% to $1,521, the highest in company history [19][6] Market Data and Key Metrics Changes - Bookings for 2025 and 2026 are tracking ahead of the prior year in both segments, indicating strong demand despite macroeconomic challenges [6][34] - The company is seeing positive momentum in bookings, particularly in the last couple of weeks, although April bookings were less consistent [34] Company Strategy and Development Direction - The company focuses on three strategic pillars: maximizing revenue generation, optimizing financial performance, and exploring accretive growth opportunities [8] - The company is enhancing its financial transparency practices and introducing net yield expectations for 2025, expecting a growth of 7% to 10% [14][25] - The company is committed to sustainability, which is central to its mission, and is actively involved in community initiatives [15][16] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the future, with bookings for 2025 and 2026 ahead of prior year levels [34] - The company acknowledges the complex macroeconomic environment but believes it is well-positioned due to its focus on experiential travel for high-income demographics [7][34] Other Important Information - The company completed the purchase of two expedition vessels, enhancing its fleet capacity [18] - The company is expanding its international presence, particularly in the UK, to tap into the growing adventure travel market [11] Q&A Session Summary Question: What drove the strong occupancy in the quarter? - Management indicated that the strong occupancy was due to a combination of expanded audience from the Disney partnership, charter businesses, and a stronger revenue management strategy [30] Question: How has the current booking environment been affected by macroeconomic factors? - Management noted that while April bookings were less consistent, there has been positive momentum in recent weeks, and bookings for 2025 and 2026 remain ahead of prior year [34] Question: How did capacity adjustments impact yields? - Management explained that lower capacity due to drydocks allowed for higher occupancy growth, supported by demand generation activities [38] Question: What is the status of dynamic pricing implementation? - Management confirmed that dynamic pricing strategies have been initiated, allowing for more flexible pricing based on demand [40] Question: How is the fly cruise program performing? - Management reported that the fly cruise program is in high demand and is practically sold out for 2026, with increased capacity planned for 2027 [43]

Revenue Performance - First quarter tour revenues reached $179.7 million, an increase of $26.1 million or 17% compared to the same period in 2024[4] - Lindblad segment tour revenues were $131.1 million, up $12.8 million or 11%, driven by a 25% increase in net yield per available guest night to $1,521 and occupancy rising to 89% from 76%[5] - Land Experiences segment tour revenues increased to $48.6 million, a rise of $13.3 million or 38%, attributed to additional trips and higher pricing[6] - Total tour revenues for Q1 2025 increased to $179.721 million, up 16.99% from $153.614 million in Q1 2024[26] Profitability Metrics - Adjusted EBITDA for the first quarter was $30.0 million, reflecting a 39% increase compared to the same period in 2024[9] - Operating income for Q1 2025 was $10.614 million, representing a 35.6% increase compared to $7.850 million in Q1 2024[26] - Net income attributable to Lindblad Expeditions Holdings, Inc. for Q1 2025 was $1.161 million, a significant improvement from a net loss of $3.979 million in Q1 2024[26] - Adjusted EBITDA for Q1 2025 reached $29.982 million, up 38.8% from $21.606 million in Q1 2024[29] - The Land Experiences segment's Adjusted EBITDA increased to $3.7 million, a rise of $2.5 million or 223% compared to the same period in 2024[11] Cash and Debt Position - Cash and cash equivalents as of March 31, 2025, were $235.2 million, up from $216.1 million as of December 31, 2024[13] - The company has a total debt position of $635.0 million and is in compliance with all applicable debt covenants[14] - The company has a $35.0 million stock repurchase plan, with $12.0 million remaining as of April 30, 2025[15] Future Guidance - For the full year 2025, the company expects tour revenues between $700 million and $750 million and Adjusted EBITDA of $100 million to $112 million[19] - Adjusted EBITDA guidance for full year 2025 is projected between $100 million and $112 million[35] Operational Metrics - Available guest nights decreased to 75,325 in Q1 2025 from 85,954 in Q1 2024, while occupancy increased to 89% from 76%[32] - Gross yield per available guest night rose to $1,741 in Q1 2025, compared to $1,376 in Q1 2024, reflecting a 26.5% increase[32] - The number of guests carried during the period is a key operational metric, though specific figures are not provided[44] Cost Analysis - Gross Cruise Cost for Q1 2025 increased to $108.661 million from $100.038 million in Q1 2024, representing a 8.2% increase[34] - Net Cruise Cost for Q1 2025 was $92.151 million, up from $86.512 million in Q1 2024, reflecting a 6.3% increase[34] - Adjusted Net Cruise Cost Excluding Fuel for Q1 2025 was $80.969 million, compared to $75.554 million in Q1 2024, indicating a 7.9% increase[34] - The company reported a Gross Cruise Cost per Available Guest Night of $1,443 in Q1 2025, up from $1,164 in Q1 2024, a 24% increase[34] Asset and Liability Overview - Total assets as of March 31, 2025, were $908.829 million, an increase from $876.905 million as of December 31, 2024[24] - Total liabilities increased to $1.049937 billion as of March 31, 2025, compared to $1.022440 billion as of December 31, 2024[24] Non-GAAP Measures - The company emphasizes that Adjusted EBITDA is a useful measure reflecting operating drivers, despite not being a liquidity measure[36] - Non-GAAP adjustments include stock-based compensation of $3.727 million for Q1 2025, up from $2.116 million in Q1 2024[34]

Core Viewpoint - Lindblad Expeditions Holdings, Inc. is set to report its first quarter financial results for 2025 on May 6, 2025, before market opening, followed by a conference call to discuss the results [1] Financial Reporting - The conference call will take place at 8:30 am Eastern Time and can be accessed via specific phone numbers for both the United States and international callers [1] - A replay of the call and a transcript will be available on the company's website within 48 hours after the call [2] Company Overview - Lindblad Expeditions is a leader in global expedition travel, offering immersive journeys across all seven continents through six pioneering brands [3] - The company collaborates with National Geographic to provide ship-based voyages that allow guests to explore remote destinations alongside scientists and naturalists [3] - In addition to modern expedition cruises, the company offers award-winning land-based brands that focus on wildlife, culture, and adventure experiences [3] - The company's mission emphasizes responsible exploration and fostering appreciation for the planet's natural and cultural landscapes [4]

Financial Data and Key Metrics Changes - Total company revenue for 2024 was $645 million, an increase of $75 million or 13% compared to 2023 [32] - Adjusted EBITDA for 2024 was $91.2 million, an increase of $20 million or 28% year-over-year [34] - Total company net loss available to stockholders improved to $35.8 million or $0.67 per diluted share, reflecting significant operational improvements [36] Business Line Data and Key Metrics Changes - Lindblad segment tour revenue was $423 million, an increase of $26 million or 7% compared to 2023, driven by a 2% increase in available guest nights and a 7% increase in net yield per available guest night to $1,170 [32][33] - Land Experiences tour revenues were $221 million, an increase of $49 million or 29% compared to 2023, attributed to additional trips and higher pricing [33] Market Data and Key Metrics Changes - Bookings for 2025 and 2026 are trending ahead of the prior year in both the Expedition and Land segments [16] - The 2025 program is nearly sold out, and 2026 is more than half booked [18] Company Strategy and Development Direction - The company aims to maximize revenue generation through higher occupancy, pricing, and deployment profitability [22] - Strategic initiatives include amplifying brand story through a new co-branded campaign with National Geographic and expanding sales channels [24][26] - Focus on international market expansion and enhancing operational efficiencies [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving and exceeding pre-pandemic occupancy levels in 2026 [42] - The company is optimistic about strong demand in the adventure travel market across both segments [40] Other Important Information - The company facilitated 45 conservation, education, and research initiatives in 2024, emphasizing its commitment to sustainability [21] - The acquisition of Wineland-Thomson Adventures contributed to revenue growth [33] Q&A Session Summary Question: Guidance on EBITDA and revenue expectations - Management noted strong double-digit EBITDA growth in 2024 and forecasted continued growth in 2025, while also investing in future growth opportunities [49] Question: Long-term growth strategy with new management - Management highlighted three key areas for value creation: organic growth, smart cost innovation, and opportunistic fleet growth [51][53] Question: Update on Disney sales partnership - The National Geographic Disney partnership is gaining momentum, with strong expectations for 2025 based on the groundwork laid in 2024 [58]

Financial Performance - Tour revenues for 2024 reached $644.7 million, a 13% increase from $569.5 million in 2023, and a 35% increase from $421.5 million in 2022[314] - Cost of tours increased to $343.7 million in 2024, up 7% from $322.4 million in 2023, and up 14% from $283.2 million in 2022[314] - General and administrative expenses rose to $139.9 million in 2024, an 18% increase from $118.4 million in 2023[314] - Operating income improved to $21.6 million in 2024, a 103% increase from $10.6 million in 2023, compared to an operating loss of $63.0 million in 2022[314] - The company reported a net loss of $28.2 million in 2024, a 31% improvement from a net loss of $40.9 million in 2023[314] - Adjusted EBITDA for the year ended December 31, 2024 was $91.2 million, an increase of $20.0 million, or 28%, compared to $71.2 million in 2023[324] - The operating loss for the year ended December 31, 2024 was $2.9 million, a decrease of $5.8 million from a loss of $8.7 million in 2023, attributed to increased revenue despite higher operating expenses[332] Acquisitions and Investments - The acquisition of Torcatt Enterprises Limitada for $17.0 million was completed in January 2025, expanding vessel capacity in the Galápagos Islands[291] - The company increased its ownership of Natural Habitat from 80.1% to 90.1% for $15.2 million in April 2024[290] - The acquisition of Thomson Group for $30.0 million (including cash and stock) was aimed at expanding land-based experiential travel offerings[292] - The acquisition of Thomson Group contributed $49.3 million, or 29%, to tour revenues in 2024, with $19.6 million from an 11% increase in average revenue per guest[335] Guest Engagement and Revenue Generation - The number of guests in the Lindblad segment increased to 31,489 in 2024 from 29,719 in 2023, reflecting a growth in guest engagement[326] - Gross yield per available guest night increased to $1,308 in 2024 from $1,257 in 2023, indicating improved revenue generation per guest[327] - The Land Experiences segment saw an increase in guests from 18,704 in 2023 to 21,638 in 2024, representing a growth of 15.5%[334] - Tour revenues for the year ended December 31, 2024 increased by $25.9 million, or 6.5%, to $423.3 million compared to $397.4 million in 2023, driven by a 4% increase in guest nights sold and a 2% increase in revenue per guest night sold[331] Expenses and Costs - Selling and marketing expenses for the year ended December 31, 2024 increased by $15.6 million, or 22%, to $87.0 million compared to $71.4 million in 2023[318] - Depreciation and amortization expenses increased by $5.9 million, or 13%, to $52.6 million for the year ended December 31, 2024 compared to $46.7 million in 2023[319] - The adjusted net cruise cost excluding fuel for 2024 was $292.8 million, an increase from $270.3 million in 2023[330] - The gross cruise cost per available guest night increased to $1,167 in 2024 from $1,148 in 2023, reflecting higher operational costs[330] Cash Flow and Financial Position - Net cash provided by operating activities was $92.4 million in 2024, a significant increase of $117.8 million compared to a cash used in operations of $25.4 million in 2023[339] - As of December 31, 2024, the company had $183.9 million in cash and cash equivalents, including $32.2 million in restricted cash, and $635.0 million in long-term debt obligations[337] - The company had a working capital deficit of $114.0 million as of December 31, 2024, compared to $74.7 million in 2023, indicating increased financial obligations[350] - As of December 31, 2024, there were no amounts outstanding under the revolving credit facility, suggesting a strong liquidity position[360] Market and Currency Risks - The company is exposed to market risk from exchange rate fluctuations, particularly with currencies other than the U.S. dollar, affecting prepaid assets and current liabilities[356] - The company has ship maintenance and construction contracts denominated in foreign currencies, which may expose it to currency risk if not hedged[357] - The company primarily hedges its currency exposure related to Canadian and New Zealand dollars, Indian rupee, euro, and British pound sterling, mitigating some risks associated with foreign currency fluctuations[358] Accounting and Estimates - Significant judgment is required in estimating the future cash flows and fair values of intangible assets, including tradenames and customer lists, which could lead to impairment charges if conditions change[354] - The company’s accounting estimates for ship accounting involve assessing the useful life and residual values of ships, which could impact future depreciation expenses[353] - The company’s intangible assets include operating rights related to licenses required to operate within the Galápagos National Park, highlighting its unique market position[354] - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring management to make significant estimates and assumptions that could affect reported amounts[352] - The company has not hedged its fuel purchases due to the lack of a specific market or index, exposing it to price volatility in fuel costs[359]

Financial Data and Key Metrics Changes - The company reported record revenue of $645 million for 2024, an increase of 13% compared to 2023, with adjusted EBITDA rising 28% to $91.2 million [15][32][34] - The net loss available to stockholders improved to $35.8 million, or $0.67 per diluted share, reflecting significant operational improvements [36] - Total cash at year-end was $216 million, an increase of $29 million from 2023, driven by strong cash from operations [37] Business Line Data and Key Metrics Changes - Lindblad segment tour revenue increased by 7% to $423 million, driven by a 2% increase in available guest nights and a 7% increase in net yield per available guest night to $1,170 [32][33] - Land Experiences tour revenues surged by 29% to $221 million, attributed to additional trips and higher pricing, including contributions from the acquisition of Wineland-Thomson Adventures [33] Market Data and Key Metrics Changes - Bookings for 2025 and 2026 are trending ahead of the previous year in both the Expedition and Land segments, with the 2025 program nearly sold out and 2026 over half booked [16][42] - The company is experiencing strong demand in the adventure travel market, with expectations to meet or exceed pre-pandemic occupancy levels in 2026 [40][43] Company Strategy and Development Direction - The company aims to maximize revenue generation through higher occupancy, pricing, and deployment profitability, while also optimizing financial performance through cost innovations [22][23] - Strategic initiatives include amplifying the brand story through a new co-branded campaign with National Geographic, expanding charter and group businesses, and focusing on international market growth [24][27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong momentum across their diverse portfolio and the ability to drive long-term sustainable growth through strategic investments and operational excellence [29][30] - The new management team is focused on organic growth, smart cost innovations, and exploring opportunistic fleet growth to enhance shareholder value [51][52] Other Important Information - The company completed the rollout of key technology advancements, including the Seaware booking platform and onboard technology upgrades, aimed at improving operational efficiencies [19][20] - Sustainability remains a core mission, with 45 conservation initiatives facilitated in 2024, including significant projects like the Floreana Island restoration [21] Q&A Session Summary Question: Guidance on EBITDA and occupancy expectations - Management noted strong double-digit EBITDA growth in 2024 and expects continued growth in 2025, while also investing in future growth opportunities [47][49] Question: Long-term growth strategy with new management - Management highlighted three key areas for value creation: organic growth through maximizing revenues, smart cost innovations, and opportunistic fleet growth [50][52] Question: Update on Disney sales partnership - The partnership with Disney is gaining momentum, with a strong roadmap for 2025 and positive returns from new sales channels and direct mail campaigns [56][58]