Lindblad Expeditions Holdings, Inc. Reports 2024 Fourth Quarter and Full Year Financial Results

Published: 2025-02-27 07:31:10 ET LIND

Full Year Highlights:

NEW YORK, Feb. 27, 2025 /PRNewswire/ -- Lindblad Expeditions Holdings, Inc. (NASDAQ: LIND; the "Company" or "Lindblad"), a global provider of expedition cruises and adventure travel experiences, today reported financial results for the fourth quarter and full year ended December 31, 2024.

Natalya Leahy, Chief Executive Officer, commented, "Experiencing our ships firsthand, I was both humbled and inspired by the truly unmatched adventures we offer, from the most agile and immersive expeditions to the warmth and intimacy of the atmosphere onboard. Lindblad Expeditions pioneered and perfected exploration in the world's most awe-inspiring destinations. 2024 was not only a record year, it was also a foundational one for future growth. With a strengthened Disney/National Geographic relationship, expanded capacity in core markets, and the increased scale of our six-brand portfolio, we are entering 2025 with strong tailwinds. This year, we are focused on driving demand, innovating smartly on costs, and unlocking new portfolio opportunities to further expand our reach and impact."

FULL YEAR RESULTS

Tour Revenues

Full year tour revenues of $644.7 million increased $75.2 million, or 13%, as compared to a year ago. The increase was driven by a $25.9 million increase at the Lindblad segment and a $49.3 million increase at the Land Experiences segment.

Lindblad segment tour revenues of $423.3 million increased $25.9 million, or 7%, compared to a year ago. The increase was driven by a 2% increase in available guest nights due to greater fleet utilization, a 7% increase in net yield per available guest night to $1,170 due to higher pricing and higher occupancy of 78% in 2024 as compared to 77% a year ago.

Land Experiences segment tour revenues of $221.4 million increased $49.2 million, or 29%, compared to a year ago primarily due to an increase in guests traveled, higher pricing and the addition of Wineland-Thomson Adventures.

Net Income

Net loss available to stockholders for the full year was $35.8 million, $0.67 per diluted share, as compared with a net loss available to stockholders of $50.0 million, $0.94 per diluted share, in 2023. The $14.2 million improvement primarily reflects higher operating results, lower tax expense, and lower stock-based compensation expense, partially offset by higher depreciation and amortization, transaction-related costs and foreign currency losses.

Adjusted EBITDA

Full year Adjusted EBITDA of $91.2 million increased $20.0 million as compared to 2023 driven by a $10.9 million increase at the Lindblad segment and a $9.1 million increase at the Land Experiences segment.

Lindblad segment Adjusted EBITDA of $59.4 million increased $10.9 million as compared to 2023, primarily due to increased tour revenues, partially offset by increased marketing and higher general and administrative investments to drive long-term growth initiatives, and increased royalties associated with the expanded National Geographic agreement.

Land Experiences segment Adjusted EBITDA of $31.8 million increased $9.1 million as compared to 2023, due to increased tour revenues and the addition of Wineland-Thomson Adventures partially offset by increased operating and personnel costs, higher marketing spend to drive future growth, credit card fees and commission expense.

FOURTH QUARTER RESULTS

Tour Revenues

Fourth quarter tour revenues of $148.6 million increased $23.2 million, or 19%, as compared to the same period in 2023. The increase was driven by a $4.9 million increase at the Lindblad segment and a $18.3 million increase at the Land Experiences segment.

Lindblad segment tour revenues of $90.7 million increased $4.9 million, or 6%, compared to the fourth quarter a year ago. The increase was driven by a 13% increase in net yield per available guest night to $1,150 due to higher pricing and an increase in occupancy to 78% compared to 70% as compared to the fourth quarter a year ago.

Land Experiences tour revenues of $57.9 million increased $39.6 million, or 46%, compared to the fourth quarter a year ago primarily due to an increase in guests traveled, higher pricing and the addition of Wineland-Thomson Adventures.

Net Income

Net loss available to stockholders for the fourth quarter was $26.2 million, $0.48 per diluted share, as compared with net loss available to stockholders of $28.5 million, $0.53 per diluted share, in the fourth quarter of 2023. The $2.3 million improvement primarily reflects higher operating results and lower stock-based compensation expense, partially offset by higher depreciation and amortization and foreign currency losses.

Adjusted EBITDA

Fourth quarter Adjusted EBITDA of $13.4 million increased $9.6 million as compared to the same period in 2023 driven by a $6.6 million increase at the Lindblad segment and a $3.0 million increase at the Land Experiences segment.

Lindblad segment Adjusted EBITDA of $6.1 million increased $6.6 million as compared to the same period in 2023, primarily due to increased tour revenues, partially offset by increased marketing spend and higher general and administrative investments to drive long-term growth initiatives, and increased royalties associated with the expanded National Geographic agreement.

Land Experiences segment Adjusted EBITDA of $7.3 million increased $3.0 million as compared to the same period in 2023, due to increased tour revenues and the addition of Wineland-Thomson Adventures partially offset by increased operating and personnel costs, higher marketing spend to drive future growth, credit card fees and commission expense.

For the three months ended

December 31,

For the years ended

December 31,

(In thousands)

2024

2023

Change

2024

2023

Change

Tour revenues:

Lindblad

90,683

85,750

4,933

6 %

423,306

397,410

25,896

7 %

Land Experiences

57,926

39,612

18,314

46 %

221,421

172,133

49,288

29 %

Total tour revenues

148,609

125,362

23,247

19 %

644,727

569,543

75,184

13 %

Operating income (loss):

Lindblad

(13,019)

(17,268)

4,249

25 %

(2,928)

(8,692)

5,764

66 %

Land Experiences

5,448

3,426

2,022

59 %

24,481

19,291

5,190

27 %

Total operating (loss) income

(7,571)

(13,842)

6,271

45 %

21,553

10,599

10,954

103 %

Adjusted EBITDA:

Lindblad

6,149

(431)

6,579

59,400

48,456

10,944

23 %

Land Experiences

7,281

4,281

3,001

70 %

31,832

22,750

9,082

40 %

Total adjusted EBITDA

13,430

3,850

9,580

249 %

91,232

71,206

20,026

28 %

Balance Sheet and Liquidity

The Company's cash and cash equivalents and restricted cash were $216.1 million as of December 31, 2024, as compared with $187.3 million as of December 31, 2023. The increase primarily reflects $92.4 million in cash from operations due primarily to increased bookings for future travel, which was partially offset by $33.5 used in purchasing property and equipment, as well as, $16.7 million in cash used in the acquisition of additional ownership in Natural Habitat and DuVine.

As of December 31, 2024, the Company had a total debt position of $635.0 million and was in compliance with all of its applicable debt covenants.

Acquisitions

In January 2025, the Company closed on two purpose-built Galápagos expedition vessels to join the National Geographic-Lindblad Expeditions fleet. The first of the two new ships, the National Geographic Gemini, is a 48-guest configuration featuring two unique dining venues and 28 outward-facing cabins, including 13 balcony suites. Even more intimate, the second vessel, the National Geographic Delfina, is a 16-guest, eight-cabin catamaran perfect for family vacations, affinity groups, and private charters. Both ships have gone through revitalizations and will embody the spirit of adventure and extreme comfort, both synonymous with National Geographic-Lindblad Expeditions, and will celebrate the Company's deep connection to the islands, Ecuador, and its people. The National Geographic Delfina embarked on its inaugural voyage in February 2025, with the National Geographic Gemini set to embark on its inaugural voyage in March 2025.

The Company continues to expand its land-based experiential travel offerings and increase the addressable market. On July 31, 2024, the Company completed the acquisition Wineland-Thomson Adventures Inc., an adventure travel group that primarily operates African safaris. The aggregate purchase price was $30 million and was financed through $24.0 million and $6.0 million in Lindblad stock. With the addition of Wineland-Thomson Adventures, Lindblad Expeditions creates a portfolio of six adventure brands targeting the growing adventure travel market with unique, authentic experiences on both land and at sea.

FINANCIAL OUTLOOK

We continue to be encouraged by the strong demand in the adventure travel market for both the Lindblad and Land Experiences segments. Booking curves are trending ahead of prior year for 2025 and 2026 for both segments.

The Company's current expectations for the full year 2025 are as follows:

Tour revenues of $700 - $750 million

Adjusted EBITDA of $100 - $112 million

STOCK REPURCHASE PLAN

The Company currently has a $35.0 million stock repurchase plan in place. As of February 24, 2025, the Company had repurchased 875,218 shares and 6.0 million warrants under the plan for a total of $23.0 million and had $12.0 million remaining under the plan. As of February 24, 2025, there were 54.6 million shares common stock outstanding.

NON-GAAP FINANCIAL MEASURES

The Company uses a variety of operational and financial metrics, including non-GAAP financial measures such as Adjusted EBITDA, Occupancy, Net Yields and Net Cruise Costs, to enable it to analyze its performance and financial condition. The Company utilizes these financial measures to manage its business on a day-to-day basis and believes that they are the most relevant measures of performance. Some of these measures are commonly used in the cruise and tourism industry to evaluate performance. The Company believes these non-GAAP measures provide expanded insight to assess revenue and cost performance, in addition to the standard GAAP-based financial measures. There are no specific rules or regulations for determining non-GAAP measures, and as such, they may not be comparable to measures used by other companies within the industry.

The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The definitions of non-GAAP financial measures along with a reconciliation of non-GAAP financial information to GAAP are included in the supplemental financial schedules.

Conference Call Information

The Company has scheduled a conference call at 8:30 a.m. Eastern Time on February 27, 2025, to discuss the earnings of the Company. The conference call can be accessed by dialing 1-800-715-9871 (United States), 1-646-307-1963 (International).

The Access Code is 2974921. A replay of the call will be available at the Company's investor relations website, investors.expeditions.com.

About Lindblad Expeditions Holdings, Inc.

Lindblad Expeditions Holdings, Inc. (NASDAQ: LIND; the "Company") is a leader in global expedition travel, offering immersive, ship- and land-based journeys on all seven continents through its six pioneering brands. Driven by a passion for the planet and the belief that there is always more to be discovered, the Company leads travelers to the farthest reaches of the world with an expansive portfolio of ship- and land-based expeditions. In collaboration with National Geographic, Lindblad Expeditions operates and sells the National Geographic-Lindblad Expeditions co-brand, offering ship-based voyages that allow guests to explore remote destinations alongside scientists, naturalists, photographers and with state-of-the-art exploration tools. In addition to its renowned modern expedition cruises, the Company's award-winning land-based brands—Natural Habitat Adventures, Off the Beaten Path, DuVine Cycling + Adventure Co., Classic Journeys, and Wineland-Thomson Adventures—provide extraordinary wildlife, cultural, and adventure-focused experiences. Together, these brands connect travelers with some of the planet's most inspiring natural and cultural landscapes, fostering a deep appreciation for the world.

To learn more about Lindblad Expeditions Holdings, Inc., its growing portfolio of brands, visit investors.expeditions.com.

Forward Looking Statements

Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the Company's financial projections and may also generally be identified as such because the context of such statements will include words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" or words of similar import. Similarly, statements that describe the Company's financial guidance or future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause results to differ materially from those expected. It is not possible to predict or identify all such risks. There may be additional risks that we consider immaterial or which are unknown. These factors include, but are not limited to, the following: (i) adverse general economic factors, such as fluctuating or increasing levels of interest rates, taxes, inflation, unemployment and perceptions of these and similar conditions that decrease the level of disposable income of consumers or consumer confidence that negatively impact the ability or desire of people to travel; (ii) suspended operations, cancelling or rescheduling of voyages and other potential disruptions to our business and operations related to health pandemics or geopolitical events such as the Israel-Hamas war and the Russia-Ukraine conflict, political unrest, terrorism, war, the denial and/or unavailability of ports of call, or another unexpected event in destinations we visit; (iii) events and conditions around the world, including war and other military actions, such as civil unrest in Ecuador, the Israel-Hamas war, the current conflict between Russia and Ukraine, inflation, higher fuel prices, higher interest rates and other general concerns about the state of the economy or other events impacting the ability or desire of people to travel; (iv) increases in fuel prices, changes in fuels consumed and availability of fuel supply in the geographies in which we operate or in general; (v) the loss of key employees, our inability to recruit or retain qualified shoreside and shipboard employees and increased labor costs; (vi) the impact of delays or cost overruns with respect to anticipated or unanticipated drydock, maintenance, modifications or other required construction related to any of our vessels; (vii) unscheduled disruptions in our business due to civil unrest, travel restrictions, weather events, mechanical failures, pandemics or other events; (viii) changes adversely affecting the business in which we are engaged; (ix) management of our growth and our ability to execute on our planned growth, including our ability to successfully close merger and acquisition transactions and integrate acquisitions; (x) our business strategy and plans; (xi) our ability to maintain our relationships with National Geographic and/or World Wildlife Fund; (xii) compliance with new and existing laws and regulations, including environmental regulations and travel advisories and restrictions; (xiii) our substantial indebtedness and our ability to remain in compliance with the financial and/or operating covenants in such arrangements; (xiv) the impact of material litigation, enforcement actions, claims, fines or penalties on our business; (xv) the impact of severe or unusual weather conditions, including climate change, on our business; (xvi) adverse publicity regarding the travel and cruise industry in general; (xvii) loss of business due to competition; (xviii) the inability to meet or achieve our sustainability related goals, aspirations, initiatives, and our public statements and disclosures regarding them; (xiv) the result of future financing efforts; (xx) our common stock ranks junior to our Series A Convertible Preferred Stock with respect to dividends and amounts payable in the event of our liquidation, dissolution or winding-up of our affairs; and (xxi) those risks described in the Company's filings with the SEC. Stockholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release, and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect the Company's performance may be found in its filings with the SEC, which are available at http://www.sec.gov or at http://www.expeditions.com in the Investor Relations section of the Company's website.

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands, except share and per share data)

As of

December 31,

2024

As of

December 31, 2023

ASSETS

Current Assets:

Cash and cash equivalents

183,941

156,845

Restricted cash

32,202

30,499

Prepaid expenses and other current assets

62,290

57,158

Total current assets

278,433

244,502

Property and equipment, net

518,390

526,002

Goodwill

59,031

42,017

Intangibles, net

15,923

9,412

Other long-term assets

5,128

9,364

Total assets

876,905

831,297

LIABILITIES

Current Liabilities:

Unearned passenger revenues

318,666

252,199

Accrued expenses

58,054

48,901

Accounts payable

13,860

16,154

Lease liabilities - current

1,845

1,923

Long-term debt - current

Total current liabilities

392,454

319,224

Long-term debt, less current portion

625,425

621,778

Deferred tax liabilities

3,537

2,118

Other long-term liabilities

1,024

1,943

Total liabilities

1,022,440

945,063

Commitments and contingencies

Series A redeemable convertible preferred stock, 165,000 shares authorized; 62,000 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively

78,155

73,514

Redeemable noncontrolling interests

29,424

37,784

107,579

111,298

STOCKHOLDERS' DEFICIT

Preferred stock, $0.0001 par value, 1,000,000 shares authorized; 62,000 Series A shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively

Common stock, $0.0001 par value, 200,000,000 shares authorized; 54,507,977 and 53,390,082 issued, 54,376,154 and 53,332,150 outstanding as of December 31, 2024 and December 31, 2023, respectively

Additional paid-in capital

109,473

97,139

Accumulated deficit

(362,881)

(322,208)

Accumulated other comprehensive income

288

Total stockholder's deficit

(253,114)

(225,064)

Total liabilities, mezzanine equity and stockholders' deficit

876,905

831,297

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(In thousands, except share and per share data)

For the three months ended December 31,

For the years ended December 31,

2024

2023

2024

2023

Tour revenues

148,609

125,362

644,727

569,543

Operating expenses:

Cost of tours

81,242

77,082

343,673

322,376

General and administrative

39,086

32,842

139,921

118,431

Selling and marketing

20,976

16,229

87,018

71,426

Depreciation and amortization

14,875

13,051

52,562

46,711

Total operating expenses

156,179

139,204

623,174

558,944

Operating income

(7,570)

(13,842)

21,553

10,599

Other (expense) income:

Interest expense, net

(11,598)

(11,421)

(45,738)

(45,014)

Gain (loss) on foreign currency

(1,017)

705

(1,065)

751

Other (expense) income

150

(293)

159

(4,066)

Total other expense

(12,465)

(11,009)

(46,644)

(48,329)

Income (loss) before income taxes

(20,035)

(24,851)

(25,091)

(37,730)

Income tax expense

5,154

1,561

3,104

3,146

Net income (loss)

(25,189)

(26,412)

(28,195)

(40,876)

Net income attributable to noncontrolling interest

(141)

992

2,984

4,734

Net income (loss) attributable to Lindblad Expeditions Holdings, Inc.

(25,048)

(27,404)

(31,179)

(45,610)

Series A redeemable convertible preferred stock dividend

1,187

1,117

4,641

4,373

Net income (loss) available to stockholders

(26,235)

(28,521)

(35,820)

(49,983)

Weighted average shares outstanding

Basic

54,368,520

53,343,125

53,817,462

53,256,513

Diluted

54,368,520

53,343,125

53,817,462

53,256,513

Undistributed income (loss) per share available to stockholders:

Basic

(0.48)

(0.53)

(0.67)

(0.94)

Diluted

(0.48)

(0.53)

(0.67)

(0.94)

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands)

For the years ended

December 31,

2024

2023

Cash Flows From Operating Activities

Net loss

(28,195)

(40,876)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

52,562

46,711

Amortization of deferred financing costs and other, net

3,699

3,368

Amortization of right-to-use lease assets

893

811

Stock-based compensation

9,833

13,886

Deferred income taxes

2,052

2,719

Loss (gain) on foreign currency

1,065

(751)

Write-off of unamortized issuance costs related to debt refinancing

3,860

Changes in operating assets and liabilities

Prepaid expenses and other current assets

(1,238)

(3,454)

Unearned passenger revenues

52,966

7,098

Other long-term assets

(2,037)

(1,871)

Other long-term liabilities

Accounts payable and accrued expenses

1,750

(5,210)

Operating lease liabilities

(995)

(850)

Net cash provided by (used in) operating activities

92,355

25,441

Cash Flows From Investing Activities

Purchases of property and equipment

(33,520)

(29,963)

Acquisition (net of cash acquired)

(10,559)

Sale of securities

15,163

Net cash used in investing activities

(44,079)

(14,800)

Cash Flows From Financing Activities

Purchase of redeemable noncontrolling interest

(16,721)

Proceeds from long-term debt

275,000

Repayments of long-term debt

(49)

(205,704)

Payment of deferred financing costs

(21)

(7,489)

Repurchase under stock-based compensation plans and related tax impacts

(2,974)

(1,128)

Net cash (used in) provided by financing activities

(19,765)

60,679

Effect of exchange rate changes on cash

288

Net increase in cash, cash equivalents and restricted cash

28,799

71,320

Cash, cash equivalents and restricted cash at beginning of period

187,344

116,024

Cash, cash equivalents and restricted cash at end of period

216,143

187,344

Supplemental disclosures of cash flow information:

Cash paid during the period:

Interest

49,423

43,695

Income taxes

319

711

Non-cash investing and financing activities:

Non-cash preferred stock dividend

4,641

4,373

Shares issued in connection with acquisition

6,000

Additional paid-in capital exercise proceeds of option shares

145

Additional paid-in capital exchange proceeds used for option shares

(145)

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Supplemental Financial Schedules

(In thousands)

(unaudited)

Reconciliation of Net Income to Adjusted EBITDA Consolidated

For the three months ended December 31,

For the years ended December 31,

2024

2023

2024

2023

Net loss

(25,189)

(26,412)

(28,195)

(40,876)

Interest expense, net

11,598

11,421

45,738

45,014

Income tax expense

5,154

1,561

3,104

3,146

Depreciation and amortization

14,875

13,051

52,562

46,711

Loss (gain) loss on foreign currency

1,017

(705)

1,065

(751)

Other (income) expense

(150)

293

(159)

4,066

Stock-based compensation

2,470

4,641

9,833

13,886

Legal settlement

3,000

Transaction-related costs

655

3,913

Reorganization costs

371

Other

Adjusted EBITDA

13,430

3,850

91,232

71,206

Reconciliation of Operating Income to Adjusted EBITDA

Reconciliation of Operating (Loss) Income to Adjusted EBITDA Lindblad Segment

For the three months ended December 31,

For the years ended December 31,

2024

2023

2024

2023

Operating loss

(13,019)

(17,268)

(2,928)

(8,692)

Depreciation and amortization

13,441

12,196

48,433

43,351

Stock-based compensation

2,647

4,641

9,656

13,787

Legal settlement

3,000

Transaction-related costs

868

Reorganization costs

371

Other

Adjusted EBITDA

6,149

(431)

59,400

48,456

Land Experiences Segment

For the three months ended December 31,

For the years ended December 31,

2024

2023

2024

2023

Operating income

5,449

3,426

24,481

19,291

Depreciation and amortization

1,434

855

4,129

3,360

Transaction-related costs

575

3,045

Stock-based compensation

(177)

177

Adjusted EBITDA

7,281

4,281

31,832

22,750

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Supplemental Financial Schedules

(In thousands, except for Available Guest Nights,

Gross Yield, Net Yield and guest metrics)

(unaudited)

Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities

For the years ended

December 31,

2024

2023

Net cash provided by operating activities

92,355

25,441

Less: purchases of property and equipment

(33,520)

(29,963)

Free Cash Flow

58,835

(4,522)

For the three months ended December 31,

For the years ended December 31,

2024

2023

2024

2023

Available Guest Nights

69,040

72,762

323,691

316,091

Guest Nights Sold

53,959

51,217

253,941

243,269

Occupancy

78 %

70 %

78 %

77 %

Maximum Guests

8,463

8,226

38,964

37,339

Number of Guests

6,794

6,071

31,489

29,719

Voyages

475

454

Calculation of Gross and Net Yield

per Available Guest Night

For the three months ended December 31,

For the years ended December 31,

2024

2023

2024

2023

Guest ticket revenues

77,328

72,218

373,055

345,871

Other tour revenue

13,355

13,532

50,251

51,539

Tour Revenues

90,683

85,750

423,306

397,410

Less: Commissions

(3,367)

(5,790)

(17,157)

(25,787)

Less: Other tour expenses

(7,889)

(5,656)

(27,306)

(24,952)

Net Yield

79,427

74,304

378,843

346,671

Available Guest Nights

69,040

72,762

323,691

316,091

Gross Yield per Available Guest Night

1,313

1,178

1,308

1,257

Net Yield per Available Guest Night

1,150

1,021

1,170

1,097

For the three months ended December 31,

For the years ended December 31,

(In thousands)

2024

2023

2024

2023

Operating loss

(13,019)

(17,268)

(2,928)

(8,692)

Cost of tours

49,903

55,021

217,408

222,413

General and administrative

25,234

22,630

92,662

83,004

Selling and marketing

15,124

13,171

67,731

57,334

Depreciation and amortization

13,441

12,196

48,433

43,351

Less: Commissions

(3,367)

(5,790)

(17,157)

(25,787)

Less: Other tour expenses

(7,889)

(5,656)

(27,306)

(24,952)

Net Yield

79,427

74,304

378,843

346,671

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Supplemental Financial Schedules

(In thousands, except for Available Guest Nights,

Gross and Net Cruise cost Per Available Guest Night and guest metrics)

(unaudited)

Calculation of Gross Cruise Cost and Net Cruise Cost

Lindblad Segment

For the three months ended December 31,

For the years ended December 31,

2024

2023

2024

2023

Cost of tours

49,903

55,021

217,408

222,413

Plus: Selling and marketing

15,124

13,171

67,731

57,334

Plus: General and administrative

25,234

22,630

92,662

83,004

Gross Cruise Cost

90,261

90,822

377,801

362,751

Less: Commissions

(3,367)

(5,790)

(17,157)

(25,787)

Less: Other tour expenses

(7,889)

(5,656)

(27,306)

(24,952)

Net Cruise Cost

79,005

79,376

333,338

312,012

Less: Fuel Expense

(6,753)

(7,974)

(26,648)

(27,913)

Net Cruise Cost Excluding Fuel

72,252

71,402

306,690

284,099

Non-GAAP Adjustments:

Stock-based compensation

(2,470)

(4,641)

(9,656)

(13,787)

Legal settlement

(3,000)

Transaction-related costs

(79)

(868)

Reorganization costs

(371)

Other

(10)

Adjusted Net Cruise Cost Excluding Fuel

66,703

66,761

292,795

270,302

Adjusted Net Cruise Cost

73,456

74,735

319,443

298,215

Available Guest Nights

69,040

72,762

323,691

316,091

Gross Cruise Cost per Available Guest Night

1,307

1,248

1,167

1,148

Net Cruise Cost per Available Guest Night

1,144

1,091

1,030

987

Net Cruise Cost Excluding Fuel per Available Guest Night

1,047

981

947

899

Adjusted Net Cruise Cost Excluding Fuel per Available Guest Night

966

918

905

855

Adjusted Net Cruise Cost per Available Guest Night

1,064

1,027

987

943

Reconciliation of 2025 Adjusted EBITDA guidance:

In millions)

Full Year 2025

Income before income taxes

(21)

(2)

Depreciation and amortization

Interest expense, net

Stock-based compensation

Other

Adjusted EBITDA

100

112

A reconciliation of net income to Adjusted EBITDA is not provided because the Company cannot estimate or predict with reasonable certainty certain discrete tax items, which could significantly impact that financial measure.

Operational and Financial Metrics

Adjusted EBITDA is net income (loss) excluding depreciation and amortization, net interest expense, other income (expense), income tax (expense) benefit, (gain) loss on foreign currency, (gain) loss on transfer of assets, reorganization costs, and other supplemental adjustments. Other supplemental adjustments include certain non-operating items such as stock-based compensation, executive severance costs, debt refinancing costs, acquisition-related expenses and other non-recurring charges. We believe Adjusted EBITDA, when considered along with other performance measures, is a useful measure as it reflects certain operating drivers of the business, such as sales growth, operating costs, selling and administrative expense, and other operating income and expense. We believe Adjusted EBITDA helps provide a more complete understanding of the underlying operating results and trends and an enhanced overall understanding of our financial performance and prospects for the future. Adjusted EBITDA is not intended to be a measure of liquidity or cash flows from operations or a measure comparable to net income as it does not take into account certain requirements, such as unearned passenger revenues, capital expenditures and related depreciation, principal and interest payments, and tax payments. Our use of Adjusted EBITDA may not be comparable to other companies within the industry.

The following metrics apply to the Lindblad segment:

Adjusted Net Cruise Cost represents Net Cruise Cost adjusted for Non-GAAP other supplemental adjustments which include certain non-operating items such as stock-based compensation, the National Geographic fee amortization and acquisition-related expenses.

Available Guest Nights is a measurement of capacity available for sale and represents double occupancy per cabin (except single occupancy for a single capacity cabin) multiplied by the number of cruise days for the period. We also record the number of guest nights available on our limited land programs in this definition.

Gross Cruise Cost represents the sum of cost of tours plus selling and marketing expenses, and general and administrative expenses.

Gross Yield per Available Guest Night represents tour revenues divided by Available Guest Nights.

Guest Nights Sold represents the number of guests carried for the period multiplied by the number of nights sailed within the period.

Maximum Guests is a measure of capacity and represents the maximum number of guests in a period and is based on double occupancy per cabin (except single occupancy for a single capacity cabin).

Net Cruise Cost represents Gross Cruise Cost excluding commissions and certain other direct costs of guest ticket revenues and other tour revenues.

Net Cruise Cost Excluding Fuel represents Net Cruise Cost excluding fuel costs.

Net Yield represents tour revenues less commissions and direct costs of other tour revenues.

Net Yield per Available Guest Night represents Net Yield divided by Available Guest Nights.

Number of Guests represents the number of guests that travel with us in a period.

Occupancy is calculated by dividing Guest Nights Sold by Available Guest Nights.

Voyages represent the number of ship expeditions completed during the period.

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SOURCE Lindblad Expeditions Holdings, Inc.