Lindblad Expeditions' Q4 2024: Diverging Views on Occupancy Growth and Free Cash Flow Strategies

These are the key contradictions discussed in Lindblad Expeditions' latest 2024Q4 earnings call, specifically including: Occupancy and Revenue Expectations, and Free Cash Flow Uses:



Revenue and EBITDA Growth:
- Lindblad Expeditions reported record revenue of $645 million for 2024, a 13% increase year-on-year.
- Adjusted EBITDA grew by 28% to $91.2 million, with margins increasing by 170 basis points to 14.4%.
- Growth was driven by increased occupancy, improved yields, and the acquisition of Wineland-Thomson Adventures.

Segment Performance:
- The Lindblad segment tour revenue increased by 7% to $423 million, driven by a 2% increase in available guest nights, a 7% increase in net yield per available guest night, and a 1 percentage point increase in occupancy.
- Land Experiences tour revenues grew by 29% to $221 million, due to additional trips and higher pricing, and the acquisition of Wineland-Thomson Adventures.

Strategic Investments and Fleet Expansion:
- The company completed the rollout of several key technology advancements and invested in its [Indiscernible] system upgrade, which reduced wait times by over 50%.
- Lindblad Expeditions expanded its fleet with the acquisition of two purpose-built Galapagos Expedition vessels, National Geographic Gemini and Delfina, to capitalize on increased demand and better serve high net worth travelers.

Sustainability and Conservation Initiatives:
- In 2024, Lindblad facilitated 45 conservation, education, and research initiatives, contributing to efforts like the Floreana Island restoration project, which achieved 100% self-sufficiency in staple crops for local farmers.
- These initiatives aim to enhance guest experiences through deeper cultural and environmental connections while promoting sustainability and responsible tourism.

2025 Revenue and EBITDA Guidance:
- The company expects total company tour revenue between $700 million and $750 million and adjusted EBITDA between $100 million and $112 million for 2025.
- The growth is anticipated due to strong demand in both the Lindblad and Land segments, investments in demand generation, and operational cost efficiencies.