Hello, and thank you for standing by. At this time, I would like to welcome you to the Lindblad Expeditions Holdings, Inc. Reports 2025 First Quarter Financial Results. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to Rick Goldberg, Chief Financial Officer. Please go ahead. Please go ahead.

Thank you, operator. Good morning, everyone, and thank you for joining us for Lindblad's 2025 first quarter earnings call. With me on the call today is Natalya Leahy, our Chief Executive Officer. Natalya will begin with some opening comments, and I'll follow with details on our financial results and 2025 expectations before we open the call for Q&A. As always, you can find our latest earnings release in the Investor Relations section of our website. But before we get to all of that, I'd like to remind everyone that the company's comments today may include forward-looking statements. Those expectations are subject to risks and uncertainties that may cause actual results and performance to be materially different from these expectations. The company cannot guarantee the accuracy of any forecast or estimates and we undertake no obligation to update any such forward-looking statements. If you would like more information on the risks involved in forward-looking statements, please see the company's SEC filings. In addition, our comments may reference non-GAAP financial measures. A reconciliation of the most directly comparable GAAP financial measures and other associated disclosures are contained in the company's earnings release. With that out of the way, I'll turn the call over to Natalya.

Good morning, everyone, and thank you for joining us on this earnings call. Today, I'm pleased to share what I believe are excellent quarter one results. I could not be prouder of our team because our efforts focused on revenue management and operational excellence resulted in continued momentum in our business. For the quarter, revenues increased 17% with Lindblad Expeditions segment generating 11% growth. Revenues in our Land segment increased 38%. Adjusted EBITDA increased 39% with margins improving 260 basis points. I'm very happy to report that occupancy increased 14 points to 89% compared to 76% in the prior year. The efforts and initiatives that we have put in place to drive occupancy perform in line with our expectations, And I am confident that we are on the path to return to pre-pandemic occupancy levels in 2026. We completed the 2025 wave season on a high note with record bookings, and bookings for 2025 and 2026 are tracking ahead of prior year in both segments. Net yields increased 25% to $1,521, the highest quarterly net yield in the company's history. Growth was driven by increases in occupancy and pricing due to dynamic revenue management and demand-generation initiatives. This historical yield results are particularly impressive, given that Lindblad increased capacity in the Expedition segment by 49% since 2019. With this result, we have set a powerful term for the year. As we navigate the complex macroeconomic environment, we remain optimistic that our guests will continue to prioritize meaningful experiences. While we are not immune to economic volatility, we believe our company is well positioned because we offer experiential travel that appeals to a demographic with high disposable income. Our focus will stay on the elements within our control, delivering exceptional adventure experiences, optimizing revenue and innovating around cost efficiencies while investing…

Thank you, Natalya. Lindblad's first quarter performance has the company well positioned to deliver another year of record financial results as we continue to expand our fleet, drive occupancy and net yield growth and grow our portfolio of land experience businesses. In January, we closed our previously announced purchase of two expedition vessels, the National Geographic Gemini and the National Geographic Delfina, which are both now sailing in the Galápagos. Now I would like to review our first quarter results Total company revenue for Q1 2025 was $180 million, an increase of $26 million or 17% versus Q1 2024. Lindblad segment revenues were $131 million, an increase of $13 million or 11% compared to prior year. As mentioned during our last call, available guest nights were down 12%, driven by the timing of dry docks and repositioning. However, occupancy increased 13 percentage points from 76% to 89% and net yield per available guest night increased 25% to 1,521, the highest in company history. Land experiences revenues were $49 million, an increase of $13 million, or 38% compared to Q1 2024, driven by increased trips, higher revenue per guest and the inclusion of Wineland-Thomson Adventures, an adventure travel group that primarily operates African Safaris, which was acquired in July 2024. Q1 2025 adjusted EBITDA was $30 million, an increase of $8.4 million, or 39% versus the prior year. This was driven by a $5.8 million, or 29% increase at the Lindblad segment and a $2.5 million or 223% increase at the Land Experiences segment. Looking closer at the cost side of our business, I'm pleased to report that we delivered margin improvement this quarter. Operating expenses before depreciation and amortization, interest and taxes; increased $17.7 million, or 13.4% versus Q1 2024. Cost of tours increased $8.4 million, or 9.9%, driven by…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Steve Wieczynski from Stifel. Please go ahead.

Hi guys, good morning. So Natalya or Rick, guess I'm surprised as to see how strong occupancy was in the quarter. Natalya gave some commentary in her prepared remarks in terms of what drove that. But we thought the occupancy lift would be more of a 2026 story. And so I guess I'm a little bit surprised it moved so quickly. And it doesn't seem like there was discounting going on to drive occupancy, given how strong yields were. So, was that -- was the move there somewhat related to the Disney partnership? Or is it just something else that we're not really thinking about? And then maybe how we should think about occupancy for the remainder of the year?

Hi Steve, good to hear from you. Thanks for lining up to answer your question or ask you a question first. I think that's combination of multiple factors. One is our expanded audience, and that is directly related to Disney relationships, but as well as related to the fact that we are driving our charter businesses, group businesses, and a stronger revenue management strategy and a dynamic pricing. That all will remain true for the rest of the year, and we'll continue to invest in those areas as we build towards 2020. We also did see the fluctuation in our drydocks. As you've seen, our quarter one had a little bit less capacity than a year ago, all that contributed to the occupancy factor in Q1.

Okay. Got you. And then I want to ask about the current booking environment, given all the macro noise that that's out in the marketplace at this point. Wondering what your -- maybe give us a little bit more color in terms of what your bookings have looked like over the -- whether it's the last month, over the last couple of weeks, has there's been any softness, any change in demand patterns? And then maybe also kind of help us understand where you're booked for 2026 versus the same point in time last year. And then, Rick, I don't know if you can help us think about cadence for the rest of the year In terms of yields because your implied yield growth after the first quarter does show a little bit of deceleration over the last three quarters. So, just trying to get a little bit more color there as well. Thanks.

Thank you, Steve. Well, let me start and Rick will add a little more color on kind of yield between the quarters. So, first of all, I stressed in my remarks, and I'll just repeat, our 2025 and 2026 bookings remain ahead of prior year across both segments. And I am pleased to see that we built quite a bit of a buffer in both years, based on our efforts. We are, like everyone else, very much watching and navigating through this complex macroeconomic environment. April bookings have been less consistent than bookings prior to that. And so we're watching that. Also, we are seeing positive momentum in the last couple of weeks. Our guidance does incorporate changes in our drydocks and occupancy as well as anticipation of macroeconomic challenges, but I will let Rick comment a little bit more on that.

Yes. In terms of the net yield guidance, we feel really good about 7% to 10% growth for the year. And looking at that, that's a combination of the success of our demand generation activities, along with our capacity growth as we guided to 1.5% growth in our available guest nights for the year. And as Natalya mentioned earlier, we were down 12% in terms of capacity in Q1, which helped -- was one of the factors that helped drive the net yield growth and the occupancy growth in the quarter.

Our next question comes from David Hargreaves from Barclays. Please go ahead.

First of all, great quarter. Following up on that question, how did the adjustments in capacity impact the yields? Was it that you had some lower capacity out of commission? Or I'm just trying to think in terms of mix, what was the impact there?

Yes. So, in quarter one, just given the fluctuations in the timing of drydocks and re-positionings, we had a little bit lower capacity for the quarter versus for the full year, where we're going to have an increase in capacity year-over-year of 1.5%. And as we had fewer available guest nights that was one of the factors that allowed us to drive the occupancy growth, although our demand-generation activities and our partnership with National Geographic and Disney was another strong factor that helped us drive that occupancy growth inside of the quarter.

So where are you right now in terms of what inning are you at in implementing dynamic pricing and continuing to integrate the Land segment business? Thanks.

Yes. So that's a great question. So we have started our dynamic pricing strategy, which also was enabled, I talked about it in the last quarter, by implementation of our new system for bookings management that allows significantly more flexibility to fluctuate pricing based on demand. I think there is a lot more to come, but I'm pleased to see what we are doing. You have seen our promotional cycle. We have developed new programs for onboard sales, for our group incentive programs, for charters. And we made significant progress in that. So I'm very encouraged by the progress in those areas. And then, of course, we are working with new channels and audiences like Disney Channel, and we just had launch of our brands in UK. So we're accounting on significant growth in that market, particularly as we are coming towards 2026.

Okay. And you had given us some updates on flights to Antarctica. I guess this is -- we're going into off season now. I haven't been yet. But could you give us any updates on if you're going to continue to increase that program and where you stand in terms of sales?

Well, we -- if you want to go, you should be our booking for 2027 because we are practically sold out for 2026 as well. And think the program is going extremely well. We finished some particular season. So those of you who are not aware on seasonality of that trade, we finished Antarctica season. We had a huge growth both in our yields in fly program, which we launched last December, and it continues to be in very, very high demand; as well as our regular Antarctica product that is operated by two, one of the most advanced ships in the industry, frankly, for polar environment. So we're doing really, really well for both, and we are practically sold out for 2026 on both trends. As we are seeing demand on Fly Cruise increases, we have increased capacity both in 2026 and then subsequently in 2027 of Fly Cruises as well, recognizing high demand.

[Operator Instructions] There are no further questions at this time. Rick Golberg, I turn the call back over to you.

Just want to thank everyone for your interest in Lindblad Expeditions, and hope you enjoy the rest of your day. Thank you so much.

This concludes today's meeting. You may now disconnect.