Q2 2024 Lindblad Expeditions Holdings Inc Earnings Call

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5, 4, 3, 2, 1 Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the Lindblad Expeditions Holdings Inc. 2024 Second Quarter Financial Results.

Operator: Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the Lindblad Expeditions Holdings Inc. 2024 Second Quarter Financial Results.

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Desiree: Ladies and gentlemen, thank you for standing by. My name is Desiree and I will be your conference operator today. At this time, I would like to welcome everyone to the Lindblad Expedition Holdings Inc. reports 2024 second quarter financial results.

All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star 1. I would now like to turn the conference over to Dyson Dryden, Chief Financial Officer. Please go ahead.

Speaker Change: All lines have been placed on mute to prevent any background noise.

Operator: If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star 1. I would now like to turn the conference over to Dyson Dryden, Chief Financial Officer. Please go ahead.

After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad.

Dyson Dri: you would like to majraor a question again rest the star one i would now like to turn the conference over to dyson dri in chief financial officer physical ahead

Thank you, Desiree. Good morning, everyone, and thank you for joining us for Lindblad's 2024 second quarter earnings call. With me on the call today is Sven Lindblad, founder and CEO. Sven will begin with some opening comments, and then I will follow with some details on the financial results and our current 2024 expectations before we open the call for Q&A. You can find our latest earnings release in the investor relations section of our website.

spenlland lad: thank you deserate good morning everyone and thank you for joining us for lelimlaz two thousand and twenty four second quarter earnings call with me on the call today is spenlland lad founder and cey

Speaker Change: Senn will begin with some opening comments, and then I will follow with some details on the financial results and our current 2024 expectations before we open the call for Q&A. You can find our latest earnings release in the investor relations section of our website.

Before you get started, let me 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 in performance to be materially different from these expectations. The company cannot guarantee the accuracy of any forecast or estimate, and we undertake no obligation to update such forward-looking statements. If you'd like more information on the risks involved in forward-looking statements, please see the company's SEC filing. In addition, our comments may reference non-gap financial measures. A reconciliation of the most directly comparable gap financial measures and other associated disclosures is contained in the company's earnings release.

Speaker Change: But before we get started, let me 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.

Dyson Dryden: The company cannot guarantee the accuracy of any forecast or estimate, and we undertake no obligation to update such forward-looking statements. In addition, our comments may reference non-GAAP financial measures.

The company cannot guarantee the accuracy of any forecast or estimates and we undertake no obligation to update such forward-looking statements.

If you'd 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.

And with that out of the way, let me please turn the call over to Sven. Sven?

Speaker Change: And with that out of the way, let me please turn the call over to Sven. Sven?

Unnamed Executive: Thanks, Dyson, and thank you for stepping in and doing such a spectacular job as interim CFO while we consider you our new CFO, sir. Lindblad's strong second quarter results set the stage for another year of double-digit growth and record results for 2024. Dyson will provide additional color on our performance this past quarter, but before he does, let me take a few minutes to discuss some of the drivers of the continued growth this year, as well as the steps we are taking to sustain the momentum in the years ahead. Perhaps her most defining role was a decade at Meta, where she served as VP of Human Resources, playing an integral role in the company's growth from 1,400 to over 40,000 employees.

Thanks Dyson, and thank you for stepping in and doing such a spectacular job as interim CFO while we consider you our new CFO, sir. Good morning, everyone, and thank you all for joining us today.

Speaker Change: Thanks Dyson and thank you for stepping in and doing such a spectacular job as interim CFO while we consider our CFO search.

Lindblad's strong second quarter results set the stage for another year of double-digit growth and record results for 2024. Dyson will provide additional color on our performance this past quarter, but before he does, let me take a few minutes to discuss some of the drivers of the continued growth this year, as well as the steps we are taking to sustain the momentum in the years ahead. First, I would like to emphasize how delighted we are with two new additions to our board of directors, and that legalist currently serves as chief people officer at CrossFit.

Speaker Change: Good morning everyone and thank you all for joining us today.

Speaker Change: Lindblad's strong second quarter results set the stage for another year of double-digit growth and record results for 2024.

Speaker Change: Dyson will provide additional color on our performance this past quarter, but before he does, let me take a few minutes to discuss some of the drivers of the continued growth this year, as well as the steps we are taking to sustain the momentum in the years ahead.

Speaker Change: first i would like themembhasizide how delighted we are with two new additions to our board of directors a net leveas currently serves as chief people officer cross fit

Throughout her career, she has served as a strategic partner for people in business operations and organizational design. Perhaps her most defining role was a decade at Metta, where she served as VP of Human Resources, playing an integral role in the company's growth from 1,400 to over 40,000 employees. Andy Stewart is a celebrated cruise industry titan.

Aria: throughout her careeria erved this is strategic partner for people in business operations and organizational design

Speaker Change: Perhaps her most defining role was a decade at Meta, where she served as VP of Human Resources, playing an integral role in the company's growth from 1,400 to over 40,000 employees.

He served as president and chief executive officer and held several other executive-level positions over his 31-year tenure at Norwegian Cruise Line Holding. These two additions to our board add a significant diversity of key experiences, which will help tremendously in navigating the company's future. And I would like to thank Bernie Aronson for his significant wisdom and insight during his tenure on our board. Now, turning to our quarterly results. Bookings to date for future travel were up 17% versus the same period in 2023, and our in-year bookings expanded to 6% over the same point in 2023. It's important to note that 2023 benefited significantly from the carry-over business from prior cancellations during the pandemic. If you remove those from the equation,

Andy Stewart: Andy Stewart is a celebrated cruise industry titan. He served as President and Chief Executive Officer and held several other executive-level positions over his 31-year tenure at Norwegian Cruise Line Holdings.

Speaker Change: These two additions to our board add a significant diversity of key experiences which will help tremendously in navigating the company's future.

Unnamed Executive: And I would like to thank Bernie Aronson for his significant wisdom and insight during his tenure on our board. Each percentage point increase on an annual basis, depending on the itinerary sold, adds between $4 and $5 billion in additional EBITDA. So clearly, as I've consistently said, the single biggest opportunity is to return as quickly as possible to our historic occupancy. Speaking of external influence... Certain of our Galapagos voyages were affected by concerns about stability in mainland Ecuador, but this has largely stabilized as people realized that the issue was very localized.

Speaker Change: And I would like to thank Bernie Aronson for his significant wisdom and insight during his tenure on our board.

In-year bookings would be up 29% in 2024, and cancellation rates have stabilized to historic levels. Second quarter occupancy increased from 74% in 23 to 78%. Each percentage point increase on an annual basis, depending on the itinerary sold, adds between $4 and $5 billion in additional EBITDA. So clearly, as I've consistently said, the single biggest opportunity is to return as quickly as possible to our historic occupancy. At the same time, we have stayed committed to price integrity, which is fundamental to our business model. Many of our competitors continue to compete on price in pursuit of occupancy gains. This, without doubt, is a flawed and unsustainable strategy.

Speaker Change: now turning to our quarterly results

Speaker Change: Bookings to date for future travel were up 17% versus the same period in 2023 and our in-year bookings expanded to 6% over the same point in 2023.

Speaker Change: It's important to note that 2023 benefited significantly from carryover business from prior cancellations during the pandemic. If you remove those from the equation,

Speaker Change: in year broens would be up twenty-nine percent in from two thousand and twenty-four and cancellation rates are stabilizede the historic levels

Speaker Change: second quarter occupancy increased from seventy-four percent in twenty-three to seventy-eight percent

Speaker Change: each percentage point increase on an annual basis depending on our itteninerary sold as we treat four and five billion dollars in additional ebitda

Speaker Change: so clearly as i have consistently said the single biggest opportunities to return quickly as possible to our historic occupanci

Speaker Change: At the same time, we have stayed committed to price integrity, which is fundamental to our business model. Many of our competitors continue to compete on price in pursuit of occupancy gains.

Speaker Change: This, without doubt, is a fraught, unsustainable strategy. To reliably return to the occupancy levels we historically have enjoyed, we are building back our past guest base.

To reliably return to the occupancy levels we historically have enjoyed, we are building back our past guest base. This customer cohort is the backbone of a segment of our itineraries, those that are longer and more esoteric. We believe this strategy, barring external influences, will result in us achieving this goal for the full year in 2026. Speaking of external influences... They have had an impact on 2024 and will likely continue to impact future years.

Speaker Change: this customer co coal or is the backlog for a segment of our i tingis those that are longer and morrissatter we believe this strategy barrowing external influences will will resultve m achieving this goal for the full year in two thousand and twenty - six

Speaker Change: Speaking of external influences...

Speaker Change: They have had an impact in 2024 and will likely continue to impact future years.

The ongoing Middle East conflict has had a significant effect on our Egypt program, and we also cancelled two long Mediterranean voyages as one of our ships had to be rerouted at short notice from transiting the Red Sea.

Speaker Change: The ongoing Middle East conflict has had a significant effect on our Egypt program, and we also canceled two long Mediterranean voyages as one of our ships had to be rerouted at short notice from transiting the Red Sea.

Certain of our Galapagos voyages were affected by concerns about stability in mainland Ecuador, but this has largely stabilized as people realized that the issue was very localized. Just as an aside, I just spent 10 days in Ecuador, meeting with the government, including President Narroa. I was very impressed with his vision for the country and his commitment to the imperative of security.

Speaker Change: Certain of our Galapagos voyages were affected by concerns about stability in mainland Ecuador, but this is largely stabilized as people realized that the issue was very localized.

Unnamed Executive: Just as an aside, I just spent 10 days in Ecuador, meeting with the government, including President Narroa. I was very impressed with his vision for the country and his commitment to the imperative of security.

Speaker Change: Just as an aside, I just spent 10 days in Ecuador, in part, meeting with the government, including with President Novoa. I was very impressed with his vision for the country and his commitment to the imperative of security. Thank you.

Unnamed Executive: Recently... to build and significantly grow the company through at least 2040. To be clear, this agreement was only reached in November last year, so we are still in the early stages. We have determined together to update our consumer brand, and this will be launched by the end of September. The updated brand, National Geographic-Lindblad Expeditions, leads with power in name recognition of National Geographic. Our research and experimentation has demonstrated the power of this new brand, increasing consumer intent, search efficiency, and conversion.

Recently... The reality is that since I started this business, there have always been periodic disruptions due to world events, some more dramatic than others. My business model, within reason, takes us into consideration. One of the most significant developments for the company is our agreement with National Geographic and Disney to build and significantly grow the company through at least 2040. To be clear, this agreement was only reached in November last year, so we are still in the early stages. There are a number of initiatives I cannot speak to here at this time due to competitive reasons. However, there are several that I can.

Speaker Change: Recently, a reality is that since I started this business, there have always been periodic disruptions due to world events, some more dramatic than others. Our business model within reason takes this into consideration.

Speaker Change: One of the most significant developments for the company is our agreement with National Geographic and Disney.

Speaker Change: to build and significantly grow the company through at least 2040. To be clear, this agreement was only realized in November last year, so we are still in the early stages.

Speaker Change: There are a number of initiatives I cannot speak to here at this time due to competitive reasons. However, there are several that I can. First of all, the rallying cry within the three organizations that have chosen to deeply collaborate, Lindblad, National Geographic, and Disney, is the power of three.

First of all, the rallying cry within the three organizations that have chosen to deeply collaborate, Lindblad, National Geographic, and Disney, is the power of three. On the surface, the key ingredients each brings are Lindblad expedition execution, National Geographic brand strength, and Disney distribution. Aside from these critical components, there is a lot more.

Speaker Change: On the surface, the key ingredients each brings is Lindblad Expedition execution, National Geographic brand strength, and Disney distribution.

Let's focus on the primary benefits. We have spent dozens of hours together unearthing how and where we can expand our reach with a goal of attracting new travelers. We have determined together to update our consumer brand, and this will be launched by the end of September. The updated brand, National Geographic-Lindblad Expeditions, leads with the power of name recognition of National Geographic.

Speaker Change: Aside from these critical components, there is a lot more. Let's focus on primary benefits. We have spent dozens of hours together unearthing how and where we expand our reach with the goal of attracting new travelers.

Speaker Change: We are determined together to update our consumer brand.

Speaker Change: and this will be launched by the end of september the updated brand national geographic limlet expedions

Our research and experimentation has demonstrated the power of this new brand, increasing consumer intent, search efficiency, and conversion. This is especially important as we begin to market internationally, where the National Geographic brand has far more awareness today than the name Lindblad. We have begun to leverage Disney's ad-buying power with our joint marketing fund and have just committed to a new domestic marketing campaign to support the launch of our new co-brand. Featuring radio, connected TV, digital, and print advertising, this campaign will reach our target households across the country.

Speaker Change: leads with the power and name recognition of National Geographic. Our research and experimentation has demonstrated the power of this new brand, increasing consumer intent, search efficiency, and conversion.

Speaker Change: this is especially important as we've begin into market internally with a national geographic brand has far more awareness today than the name memblon

Speaker Change: We have begun to leverage Disney's ad buying power with our joint marketing fund and have just committed to a new domestic marketing campaign to support the launch of our new program featuring radio

Speaker Change: Connected TV, Digital and Print Advertising, this campaign will reach our target households across the country. We are also working together to create a full suite of new co-branded advertising assets to appeal to a diverse audience of potential guests.

We are also working together to create a full suite of new co-branded advertising assets to appeal to a diverse audience of potential guests. Our first cross-selling campaigns to Disney affinity audiences were launched this year, reaching millions of consumers with strong Disney affinity and a love of travel. With our new ability to market together with the NG brand internationally, we are launching sales in Great Britain this quarter and plan further expansions into Europe later this year.

Speaker Change: our first cross-selling campaigns the disbusney affinity audiences were launched this year reaching millions and consumers with strong busney affinity and a level of travel

Speaker Change: With our new ability to market together with the NG brand internationally, we are launching sales in Great Britain this quarter and plan further expansions into Europe later this year.

Unnamed Executive: We're also looking at a variety of new charter products that we believe will be uniquely successful under the new co-brand, including possible expansion of RiverCruise. A few words on inventory, and it's important. For those familiar with our current products, you know we have different ships designed for very different missions, operating in different geographies, and attracting very different guests. Our voyages range from 4 days to 30 days in length. Certain itineraries are more suited to bringing in new guests, Galapagos, and Alaska, for example. We have always worked on calibrating inventory to have the right balance.

We're also looking at a variety of new charter products that we believe will be uniquely successful under the new co-brand, including possible expansion of river crews. So we believe that through committed and various testing and campaigns, we will be able to generate meaningful growth as a consequence of our alliance beginning next year. A few words on inventory, and it's important.

Speaker Change: we'are also looking at a variety of new charter products that we believe will be uniquely successful under the new cogramand including possible expansion of river chcruisine

Speaker Change: So we believe that through committed and various testing and campaigns we will be able to generate meaningful growth as a consequence of our alliance beginning next year.

Speaker Change: a few words on inventory and its imimports

First, we are working on new thematic content creation, which we hope to articulate soon, harnessing the creative forces within both National Geographic and Disney. A good example of this is our renewed focus on family travel. For those familiar with our current products, you know we have different ships designed for very different missions, operating in different geographies, and attracting very different guests. Our voyages range from 4 days to 30 days in length.

Speaker Change: first we are working on new pthematic content creation which we hope to articulate soon harnessing the creative forces within both national geographic and disney and good example of this is a renewed focus on family travel

Speaker Change: For those familiar with our current products, you know we have different ships designed for very different missions, operating in different geographies, and attracting very different guests.

Certain itineraries are more suited to bring in new guests, such as Galapagos and Alaska, for example. However, some particularly esoteric itineraries largely attract past guests. Examples include places like Papua New Guinea and the Northwest Passage, and some where there is a balance, like Antarctica and Iceland, for example. We have always worked on calibrating inventory to have the right balance. For many years, we achieved this optimal balance, hence our 90 plus or minus percent occupancies. With COVID, we basically lost two years of adding to the funnel, basically 30,000 plus. Inventory is planned several years out, so a beautiful, essentially perfect formula was disrupted for a time. We have responded by increasing first-timer itineraries and culling those for past guests. Examples are increasing our presence in Iceland and reducing more of our esoteric Arctic itineraries.

Speaker Change: Our voyages range from 4 days to 30 days in length. Certain itineraries are more suited to bring in new guests. Galapagos, Alaska for example.

Speaker Change: Some particularly esoteric itineraries largely attract past guests. Examples include places like Papua New Guinea and the Northwest Passage, and some where there is a balance, Antarctica and Iceland, for example.

Speaker Change: We have always worked on calibrating inventory.

Unnamed Executive: For many years, we achieved this optimal balance, hence our 90 plus or minus percent occupancies. With COVID, we basically lost two years of adding to the funnel, basically 30,000 plus guests. We have responded by increasing first-timer itineraries and culling those for past guests. Examples are increasing our presence in Iceland and reducing more of our esoteric Arctic itineraries.

Speaker Change: to have the right balance. For many years, we achieved this optimal balance, hence our 90 plus or minus percent occupancies. With COVID, we basically lost two years of adding to the funnel, basically 30,000 plus guests.

Speaker Change: Inventory is planned several years out, so a beautiful, essentially perfect formula was disrupted for a time.

Speaker Change: We have responded by increasing first-timer itineraries and culling those for past guests. Examples are increasing our presence in Iceland and reducing more of our esoteric Arctic itineraries.

Another is our flying program to Antarctica, making it possible to have a shorter experience by flying from Chile to Antarctica to sightsee on our ships, which has opened up an entirely new market. We have also just signed an agreement to acquire two additional ships for Galapagos, critical for bringing in new guests, the National Geographic Gemini and the National Geographic Galifina, with 48 and 16 passengers respectively. Galapagos is a closed market for ships with a defined number of licensees.

Speaker Change: Another is our fly-in program to Antarctica, making it possible to have a shorter experience by flying from Chile to Antarctica to board our ships, which has opened up an entirely new market.

Speaker Change: ihave've also just signed an agreement to acquire two additional ships for gooof us critical for bring in new guest the national geographic germini in the national geographic gopha with thirty-eightgh and sixteen passengers respectively

Speaker Change: the ro this is a closed market for ships with a defined number of licenses so the overall market is not increased but our inventory has by forty five percent

Unnamed Executive: So the overall market is not increased, but our inventory has increased by 45%. A few operational highlights. Our first ten governing principles are to ensure that everything we do adds value to the guest experience. This is sacrosanct, and I'm very happy to be able to report that guest satisfaction this quarter was the highest level since before the pandemic. Our land experience sector continues to perform and grow at exceptional levels. Revenue last quarter was $43.4 million, a 16% increase year-over-year.

So the overall market is not increased, but our inventory has increased by 45%. These two additional ships are expected to begin operation late Q1 next year, and the effects of accelerating first-time travelers by upwards of 3,000 people a year will be felt across the fleet over time. A few operational highlights: the first 10 governing principles are to ensure that everything we do adds value to the guest experience. This is Secretary Stank, and I'm very happy to be able to report on guest satisfaction this quarter at the highest level since before the pandemic.

Speaker Change: these two additional ships are expected to begin operation late q one next year and the effects on accelerating first-time travers by upwards of three thousand people the year will be felllt across the fleet over time

Speaker Change: A few operational highlights. Our first 10 governing principles is to ensure that everything we do adds value to the guest experience. This is sacrosanct, and I'm very happy to be able to report to the guest satisfaction this quarter is the highest level since before the pandemic.

Our new IT systems, while still being improved, have begun to streamline our internal processes and improve the guest experience. We believe there is more we can do on this front. For some months now, we have made a concerted effort to further improve efficiency, looking at the organizational structure broadly and how we can modernize, improve, and eliminate unnecessary costs. Our land experience sector continues to perform and grow at exceptional levels. Revenue last quarter was $43.4 million, a 16% increase year-over-year.

Speaker Change: our new it systems while still being improved to begun the streamlineinour streamline our internal processes and improve the guest experience

Speaker Change: We believe there is more we can do on this front. For some months now, we have made a concerted effort to further improve efficiency, looking at the organizational structure broadly and how we can modernize, improve, and eliminate unnecessary costs.

Speaker Change: Our land experience sector continues to perform and grow at exceptional levels. Revenue last quarter was $43.4 million, a 16% increase year-over-year.

Natural habitat, the largest of our land subsidiaries, has current bookings over 20% greater than at the same period in 2023. The theory from the beginning that our kind of travelers are omnivorous and very interesting, engaged in a diverse set of experiences, has absolutely proven to be true. The more people that travel with our land companies, the better, as they provide world-class experiences and travelers stay in the families of the state.

Speaker Change: Natural Habitat, the largest of our land subsidiaries, has current bookings over 20% greater than at the same period in 2023.

Speaker Change: The theory from the beginning.

Speaker Change: that our kind of travelers are omnivorous in their interest, engage in a diverse set of experiences has absolutely proven to be true. The more people that travel with our land companies, the better as they provide best-in-class experiences and travelers stay in the family, so to speak.

Think of what this diversity represents. Natural habitat adventures focus on land-based itineraries in natural, remote places. Examples include viewing polar bears in the high Arctic or safaris in Africa. Ben Bresler is the founder and CEO, and he also oversees all of our land companies. Nighthawks mission is entirely consistent with our own, conservation through exploration, protecting our planet by inspiring travelers, supporting local communities, and boldly influencing the entire travel industry. Classic Journeys focuses on cultural walking tours all over the world. Think Italy, Spain, South America, and beyond.

Speaker Change: think of what this diversity represents natural habitat adventures focused on landbased byitteneries in natural remote places examples include your protograps in the hierarchic orsofaras in africa then breast over the founder and ceo

Speaker Change: and he also been vestor the foundan cy and he also overseas all of our land companies

Speaker Change: not have mission is entirely consistent with our own considation through exploration protecting our planets by inspiring travelers supporting local communities and boldly influencing the entire travel industry

Speaker Change: Classic Journeys focus on cultural walking tours all over the world. Think Italy, Spain, South America, and beyond. Its founders and leaders, Edward and Susan Piazza,

Its founders and leaders, Edward and Susan Piazza, are really driving and expanding this business, and talk about minimal capital; it's largely two feet at a time. Divine offers luxury bike tours that offer immersive experiences in some of the world's most scenic and culturally rich destinations. It's an exciting company, really capitalizing on the growing interest in fitness and cycling. Add to that the advent of e-bikes, which massively grows the category, and voila, you have quite a growth story, which in Divine's case is largely fed by her love for Italy and France.

Speaker Change: are really driving and expanding this business, and talk about minimal capital, it's largely two feet at a time.

Speaker Change: the vine offers luury bike tour there are offer immersive experience in some of the world's most seneniic and culturally rich destinations

Speaker Change: it's an exciting company really capitaliz conomic growing interest in fitness and cycling add to that the advent of ebikes which massively grows the category wella you had credit growth story which in divines casesis largely fed by levelof italy and france

Founder and CEO Andy Levine turned a personal interest in thinking culture and life into a perfect enterprise where it was a thrill to support his team and their growth. Off the Beaten Path is in the process of extending its strong presence in North American national parks to other lesser-traveled destinations globally. With third-party development of new and exciting hotels, lodges, and the expansion of glamorous camping, OBP is in the right market. CEO Corey Lawrence is ideally suited to lead this growth platform for us.

Speaker Change: Founder and CEO Andy Levine turned a personal interest, Viking culture and wine, into a perfect enterprise and we are thrilled to support his team and their growth.

Unnamed Executive: Off the Beaten Path is in the process of extending its strong presence in North American national parks to other lesser-traveled destinations globally. And just last week, we closed the acquisition of our fifth land company, Thompson Safaris, which has been focusing on the spectacular country of Tanzania for over 40 years, and their operation will create synergies with Natural Habitat's East African operation. Each of our land companies is pursuing its stated mission with vigor and aims to be a dominant force in its focus segments.

Speaker Change: Off the Beaten Path is in the process of extending its strong presence in North American national parks to other lesser-traveled destinations globally.

Speaker Change: with third-party development of new and exciting hotels largesnicick and the expansion of glammarous camping op is in the right market ce curarry lawrenceces i do ide so to leave this growth platform for us

And just last week, we closed the acquisition of our fifth land company, Thompson Safari, which has been focusing on the spectacular country of Tanzania for over 40 years, and their operation will create synergies with Natural Habitat's East African operation. The level of focus and expertise in one of Africa's most desirable countries for safari travel is unmatched, and included in the transaction is a spectacular lodge called Gibbs Farm, named East Africa's Best Hotel by Clubbing House in 2023. Gibbs is a place with a deep history; it actually was my favorite lodge back in the 1970s when I was living in East Africa, and it's consistently rated as one of Africa's top lodges today.

Speaker Change: And just last week, we closed the acquisition of our fifth land company, Thompson Safaris.

Unnamed Executive: which has been focusing on the spectacular country of Tanzania for over 40 years and their operation will create synergies with Natural Habitat's East African operation.

Speaker Change: The level of focus and expertise in one of Africa's most desirable countries for safari travel is unmatched, and included in the transaction is a spectacular lodge called Gibbs Farm, named East Africa's Best Hotel by Club Denounce in 2023.

Speaker Change: Gibbs is a place with a deep history. It actually was my favorite lodge back in the 1970s when I was living in East Africa, and it's consistently related as one of Africa's top lodges today.

Each of our land companies is pursuing their stated mission with vigor and aims to be a dominant force in their focus segments. We are excited to continue to expand by adding additional best-in-class companies to this valuable portfolio. Companies where we are mission-aligned and where, by joining our family, we can add value and propel meaningful growth. In summation, 2024 is shaping up nicely, and we remain optimistic about the future. Now, Dyson will delve deeply into the numbers.

Unnamed Executive: Each of our land companies is pursuing their stated mission with vigor and aimed to be a dominant force in their focus segments. We are excited to continue to expand by adding additional best-in-class companies to this valuable portfolio.

Unnamed Executive: We are excited to continue to expand by adding additional best-in-class companies to this valuable portfolio, companies where we are mission-aligned and where, by joining our family, we can add value and propel meaningful growth. Now, Dyson will delve deeply into the numbers.

Speaker Change: Companies where we are mission aligned and where by joining our family we can add value and propel meaningful growth.

Speaker Change: In summation, 2024 is shaping up nicely and we remain optimistic about the future.

dashson: now dashson will go deeply into the numbers

Lindblad's strong year-on-year growth continued during the second quarter as we further ramped up ship operations for the broader deployment of our expanded fleet and continue to grow our diversified portfolio of land businesses. As we deliver sustained year-on-year growth, we are taking the operational and strategic steps necessary to take full advantage of the earnings potential of the company. The investments we've made in additional capacity, diverse product offerings, technological capabilities, and overall infrastructure have positioned us to capitalize on the growing demand for experiential travel.

Dyson Dryden: thankank you span limblood strong year on year growth continued during the second quarter as we further ramped up ship operations a broader deployment of our expanded fleet and continue to grow our diversified portfolio of land businesses

Dyson Dryden: As we deliver sustained year-on-year growth, we are taking the operational and strategic steps necessary to take full advantage of the earnings potential of the company.

dashson: investments so we've made in additional capacity diverse product offerings technological capabilities and overall infrastructure have positioned us to capitalize in the growing demand for perianentcial travel

Turning to the second quarter, total revenue of 136.5 million increased by 11.7 million, or 9% versus the second quarter of 2023. Lindblad segment tour revenues were $93.1 million, which is an increase of $5.6 million, or 6%, compared to the second quarter a year ago. The increase was driven by a 4% increase in available guest nights, a 6% increase in net yield per available guest night to $1,094, and an increase in occupancy to 78%, up from 74%. As Sven noted, we canceled two voyages as we decided to transit around the Red Sea due to conflict in the region.

Dyson Dryden: turn to the second quarter total revenue one hundred thirty six point five mion increased eleven point seven million or nine percent versus the second quarter of two thousand and twenty three

Dyson Dryden: Lindblad segment tour revenues were $93.1 million, which is an increase of $5.6 million, or 6%, compared to the second quarter a year ago. The increase was driven by a 4% increase in available guest nights, a 6% increase in net yield per available guest night to $1,094, and an increase in occupancy to 78%, up from 74%.

Dyson Dryden: Lindblad segment tour revenues were $93.1 million, which is an increase of 5.6 million, or 6%, compared to the second quarter a year ago.

Dyson Dryden: The increase was driven by a 4% increase in available guest nights, a 6% increase in net yield per available guest night to $1,094, and the increase in occupancy to 78% up from 74%.

Dyson Dryden: As Sven noted, we canceled two voyages as we decided to transit around the Red Sea due to conflict in the region. Our Egypt program was affected by the Middle East conflict. We also saw instability in mainland Ecuador, which impacted Galapagos for a brief period of time.

Dyson Dryden: And End Experience's tour revenues were $43.4 million, which is an increase of 6.1 million, or 16%, compared to the second quarter a year ago, led by additional guests and higher pricing across natural habitats, trips to Africa, the Galapagos Islands, Europe, the Amazon, India, and Alaska, divine cycling tours across Italy, France, Croatia, Turkey, and Spain, classic journeys, cultural walking tours in places like Portugal and Iceland, and off Second quarter adjusted EBITDA was $10.4 million and increased $4.2 million year-over-year, driven by a $3.9 million increase in the Lindblad segment and a $300,000 increase in the land experiences segment.

Our Egypt program was affected by the Middle East conflict. We also saw instability in mainland Ecuador, which impacted Galapagos for a brief period of time, and experiences tour revenues for 43.4 million, which is an increase of 6.1 million or 16% compared to the second quarter a year ago, led by additional guests in higher pricing across natural habitats, trips to Africa, the Galapagos Islands, Europe, the Amazon, India, and Alaska, divine cycling tours across Italy, France, Croatia, Turkey, and Spain, classic journeys, cultural walking tours in places like Portugal and Iceland, and off the beaten past small-guided group adventures to the U.S. National Park.

Dyson Dryden: and experiences tour revenues for $43.4 million, which is an increase of $6.1 million or 16% compared to the second quarter a year ago, led by additional guests.

Dyson Dryden: and higher pricing across natural habitats, trips to Africa, the Galapagos Islands, Europe.

Dyson Dryden: ne amazon india and alaska divinine cycling tours across italy france quacia turkey spain classic journey's cultural walking tours and places like portugal and iceland and off the beaten passed small guided group adventures to the u s national parks

Second quarter adjusted EBITDA was $10.4 million and increased $4.2 million year-over-year driven by a $3.9 million increase in the Lindblad segment and a $300,000 increase in the land experiences segment. The Lindblad segment adjusted EBITDA of $6.5 million increased $3.9 million as compared to the same period in 2023. Primarily due to increased tour revenues, partially offset by higher general administrative costs, which were related to increased personnel costs and increased royalties associated with the expanded National Geographic Agreement.

Dyson Dryden: Second quarter adjusted EBITDA was $10.4 million and increased $4.2 million year-over-year driven by a $3.9 million increase in the Lindblad segment and a $300,000 increase in the land experiences segment.

Dyson Dryden: Lindblad Expeditions Holdings adjusted EBITDA of $6.5 million increased $3.9 million as compared to the same period in 2023, primarily due to increased tour revenues, partially offset by higher general administrative costs, which were related to increased personnel costs. The Land experiences segment adjusted EBITDA of $3.8 million increased $300,000, as I mentioned, as compared to the same period in 2023. As increased tour revenues were offset by increased operating and personnel costs, higher marketing spend to drive future growth, and credit card fees and commission expense, increased $7.5 million, or 6.4% versus the second quarter of 2023.

Dyson Dryden: Lindblad Expeditions Holdings Inc adjusted EBITDA of $6.5 million, increased $3.9 million as compared to the same period in 2023, primarily due to increased tour revenues, partially offset by higher general administrative costs, which were related to increased personnel costs.

Speaker Change: an increased royalties associated with the expanded national geographic agreement

Land experiences segment adjusted EBITDA of $3.8 million, increased $300,000, as I mentioned, as compared to the same period in 2023. However, increased tour revenues were offset by increased operating and personnel costs, higher marketing spend to drive future growth, and credit card fees and commission expense. Looking a little closer at the cost side of the business, operating expenses before depreciation and amortization, interest, and taxes.

Dyson Dryden: land experience a sement adjusted the ebitda three point eight million increased three hundred thousand as i mentioned as compared to the same created in two thousand and twenty three

Dyson Dryden: as increased tour revenues were offset by increased operating and personnel costs.

Dyson Dryden: Hire marketing spend to drive future growth and credit card fees and commission expense.

Speaker Change: looking ata little closer at the cost side of the business operating expenses before depreciation and analortization interest taxes

It increased $7.5 million, or $6.4% versus the second quarter of 23, led by a $3.4 million, or 13.3% increase in G&A expense, excluding stock-based comp and one-time items, versus a year ago, primarily again due to higher personnel costs associated with the expanded operations, as well as from increased credit card commissions related to final payments for upcoming itineraries and higher deposits on new reservations for future travel. Sales and marketing costs increased $3.1 million, or 20.6%, versus a year ago, primarily due to increased royalties associated with the expanded National Geographic Agreement and additional marketing spend to drive future bookings.

Dyson Dryden: Increased $7.5 million, or 6.4%, versus the second quarter of 2023.

Dyson Dryden: led by a $3.4 million or 13.3% increase in G&A expense, excluding stock-based comps and one-time items.

Speaker Change: versus a year ago, primarily again due to higher personnel costs associated with the expanded operations, as well as from increased credit card commissions related to final payments for upcoming itineraries and higher deposits on new reservations for future travel.

Dyson Dryden: Sales and marketing costs increased $3.1 million, or 20.6%, versus a year ago, primarily due to increased royalties associated with the expanded National Geographic Agreement and additional marketing spend to drive future bookings. Fuel costs were 4.2% of revenue in the second quarter of 2024, which is down compared with the second quarter of a year ago. As a reminder, credit card commissions are paid upon cash receipt, with the expense recognized today, and with trip revenue not recognized until the guest travels.

Dyson Dryden: Sales and marketing costs increased $3.1 million, or 20.6% versus a year ago, primarily due to increased royalties associated with the expanded National Geographic Agreement and additional marketing spend to drive future bookings.

Fuel costs were 4.2% of revenue in the second quarter of 2024, which is down compared with the second quarter a year ago. As a reminder, credit card commissions are paid upon cash receipt, with the expense recognized today, and with trip revenue not recognized until the guest travels.

Dyson Dryden: Fuel costs were 4.2% of revenue in the second quarter of 2024, which is down compared with the second quarter a year ago.

Dyson Dryden: As a reminder, credit card commissions are paid upon cash receipt, with the expense recognized today, and with trip revenue not recognized until the guest travels.

Dyson Dryden: With higher bookings in the second quarter, compared with the same period a year ago, the expense impact is significantly higher on year with the revenue growth to be delivered in the periods ahead. While our expense base will grow in absolute terms as we continue to expand the business, we also believe we have an opportunity to improve efficiency over time. Our recent investment in technology is an important enabler of this objective.

With higher bookings in the second quarter, which is the same period a year ago, the expense impact is significantly higher on a year-on-year basis with the revenue growth to be delivered in the periods ahead. While our expense base will grow in absolute terms as we continue to expand the business, we also believe we have an opportunity to improve efficiency over time. Our recent investment in technology is an important enabler of this objective. We are now well positioned to identify ways to further improve existing processes and systems and thereby reduce certain costs.

Speaker Change: With higher bookings in the second quarter, this is the same period a year ago, the expense impact is significantly higher on year with the revenue growth to be delivered in the periods ahead.

Dyson Dryden: While our expense base will grow in absolute terms, as we continue to expand the business, we also believe we have an opportunity to improve efficiency over time. Our recent investment in technology is an important enabler of this objective.

Speaker Change: We are now well positioned to identify ways to further improve existing processes and systems and thereby reduce certain costs.

Dyson Dryden: Turning to the balance sheet for a moment, total cash was $217.7 million as of June 30, 2024, as compared to $187.3 million as of December 31, 2023. The increase primarily reflects a $63.2 million increase in cash from operations, primarily due to increased bookings for future travel, which is partially offset by the $17.3 million cash used in the acquisition of additional ownership of Natural Habitat and Divine, as well as the $3.9 million used for purchasing property equipment over the first half of the year. The acquisition purchase price is $30 million, which is financed through $24 million of cash and $6 million in Lindblad stocks.

Turning to the balance sheet for a moment, total cash was $217.7 million as of June 30, 2024, as compared to $187.3 million as of December 31, 2023. The increase primarily reflects a $63.2 million increase in cash from operations primarily to increase bookings for future travel, which is partially offset by the $17.3 million cash used in the acquisition of additional ownership of Natural Habitat and Divine, as well as the $3.9 million used for purchasing property equipment over the first half of the year. Lindblad now owns 90% of the natural habitat and 75% of due vine cycling.

Dyson Dryden: Turning to the balance sheet for a moment, total cash was $217.7 million.

Dyson Dryden: As of June 30th, 2024, as compared to $187.3 million as of December 31st, 2023.

Dyson Dryden: The increase primarily reflects a $63.2 million increase in cash from operations primarily to increased bookings for future travel, which is partially offset by the $17.3 million cash used in the acquisition of additional ownership of Natural Habitat and Divine, as well as the $3.9 million used

Dyson Dryden: for purchasing property equipment over the first half of the year. Lindblad now owns 90% of natural habitat and 75% of DuVine Cycling. Both businesses continue to outperform our original expectations.

Dyson Dryden: On July 31st, 2024, we completed the acquisition of Wineland Thompson Adventures, an adventure travel group that primarily operates African safaris.

Dyson Dryden: The acquisition purchase price was $30 million, which is financed through $24 million of cash and $6 million in Lindblad stock.

We plan to close our previously announced purchase of the two purpose-built Galapagos Expedition Vessels in January of 2025. Importantly, we've already begun adding bookings for the National Geographic Gemini and the National Geographic Delfina ships to effectively use the time period between signing and closing. On closing, the ships will undergo re-vitalizations, after which they will begin operations late in the first quarter of 2025.

Speaker Change: we plan to close our prev say announcedto purchase of the two purpose built caropago's expedition vhic ia vessels in january of two thousand and twenty five

Operator: Importantly, we've already begun adding bookings for the National Geographic Gemini and the National Geographic Delfina ships to effectively use the time period between signing and closing. Upon closing, the ships will undergo revitalizations, after which they will begin operations late in the first quarter of 2025. We continue to explore additional growth opportunities in the year ahead, and including diversifying our own product portfolio, we're opportunistically expanding our fleet to capitalize on the continued growth in the demand for experiential travel.

Operator: Importantly, we've already begun adding bookings for the National Geographic Gemini and the National Geographic Delfina ships to effectively use the time period between signing and closing. Upon closing, the ships will undergo revitalizations, after which they will begin operations late in the first quarter of 2025.

We continue to explore additional growth opportunities in the year ahead, and including diversifying our own product portfolio, we're opportunistically expanding our fleet to capitalize on the continued growth in the demand for experiential travel. Turning to the full year 2024, we continue to anticipate significant growth driven by higher gas counts and increased net yields across the fleet, as well as additional travelers across our growing land business. Given the strong booking trends, we continue to expect tour revenue in 2024 between $610 and $630 million and adjusted EBITDA between $88 and $98 million.

Operator: We continue to explore additional growth opportunities in the year ahead, and including diversifying our own product portfolio, we are opportunistically expanding our fleet to capitalize on the continued growth in the demand for experiential travel.

Operator: Turning to the full year 2024, we continue to anticipate significant growth driven by higher gas counts and increased net yields across the fleet, as well as additional travelers across our growing land businesses.

Operator: Given the strong booking trends, we continue to expect tour revenue in 2024 between $610 and $630 million and adjusted EBITDA between $88 and $98 million. Please note the quarterly results for the main year of this year will reflect the seasonality of our business, with the third quarter benefiting from more complete fleet usage and peak seasons across both our fleet and land businesses. Conversely, the fourth quarter will be impacted by fewer available guest nights due to the heavy dry dock and transit time across our fleet, more shoulder season inventory, and seasonality for our land businesses.

Operator: Given the strong booking trends, we continue to expect tour revenue in 2024 between $610 and $630 million and adjusted EBITDA between $88 and $98 million.

The acquisition, Thompson Safaris, is expected to have a minimal contribution this year due to certain planned investments in the business, but it is expected to be a more meaningful contributor for the full year 2025. Please note the quarterly results for the main year of this year will reflect the seasonality of our business, with the third quarter benefiting from more complete fleet usage and peak seasons across both our fleet and land businesses. Conversely, the fourth quarter will be impacted by fewer available guest nights due to the heavy dry dock and transit time across our fleet, more shoulder season inventory, and seasonality for our land businesses. Overall, we are pleased with the operating momentum across our business. Thank you for your interest, and now Sven and I would be happy to answer any questions that you may have.

Operator: The acquisition, Thomson Safaris, is expected to have a minimal contribution this year due to certain planned investments in the business. However, it is expected to be a more meaningful contributor for the full year 2025.

Operator: Please note the quarterly results for the mainer of this year will reflect the seasonality of our business, with the third quarter benefiting from more complete fleet usage and peak seasons across both our fleet and land businesses.

Operator: conversely the fourth quarterwill be impacted by less available estknights to the heavy dry dock in transit time across our fleet more shoulder season inventory and seasonality for our land businesses

Speaker Change: overall we are pleased with the operating momentum across our businesses thank you for your interest and now spend i be happy to answer any questions that you may have

Operator: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask a question and are listening via speakerphone on your device, please pick up your handset to ensure that your phone is not on mute when asking your question. Again, press star 1 to join the queue.

Desiree: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask a question and are listening via speakerphone on your device, please pick up your handset to ensure that your phone is not on mute when asking your question. Again, press star 1 to join the queue. Your first question comes from the line of Steven Wieczynski with SIFO. Your line is open.

Speaker Change: thank you we will now begin the question and answer session if you have dialed in and would like to ask a question please press ourar one on your telephone he bad to raise your hand and join the queue

Speaker Change: your first question comes from the line of stephen the sins skkey with cyle your line is open

Steven Wieczynski: Yeah, thanks, guys. Good morning.

Yeah, thanks, guys. Good morning.

Steven Wieczynski: Thanks guys. Good morning. So, Dyson, this one's probably for you. Don't want to put you in the hot seat right away, but, you know, it's a guidance question, and you addressed a little bit of this in your prepared remarks, but I'm going to ask it a little bit differently. So, you know, if we think about the first half of this year, you guys,

Steven Wieczynski: So, Dyson, this one's probably for you. I don't want to put you in the hot seat right away, but, you know, it's a guidance question, and you addressed a little bit of this in your prepared remarks, but I'm going to ask it a little bit differently. So, you know, if we think about the first half of this year, you guys, you generated about $32 million in EBITDA. That is actually below the $35 million you generated in the first half of 2019.

So, Dyson, this one's probably for you. Don't want to put you in the hot seat right away, but, you know, it's a guidance question, and you addressed a little bit of this in your prepared remarks, but I'm going to ask it a little bit differently. So, you know, if we think about the first half of this year, you guys, you generated about $32 million in EBITDA. That is actually below the $35 million you generated in the first half of 2019.

Steven Wieczynski: You generated about $32 million in EBITDA. That is actually below the $35 million you generated in the first half of 2019. So.

Steven Wieczynski: My question is, you know, to get to the low end of your EBITDA guidance for the year, you guys are going to have to generate about 50, you know, mid-50s, and 56 million in EBITDA in the second half of the year. That's, you know, that's well above what you did in the second half of 2019. And look, I fully understand there's a material change in capacity, but, you know, I guess, you know, the real question is, what gives you guys, you know, such confidence with only five months left in the year that, you know, kind of getting that mid-50s EBITDA in the second half of the year is, you know, going to be possible? Thanks.

My question is, you know, to get to the low end of your EBITDA guidance for the year, you guys are going to have to generate about 50, you know, mid-50s, and 56 million in EBITDA in the second half of the year. That's, you know, that's well above what you did in the second half of 2019. And look, I fully understand there's a material change in capacity, but, you know, I guess, you know, the real question is, what gives you guys, you know, such confidence with only five months left in the year that, you know, kind of getting that mid-50s EBITDA in the second half of the year is, you know, going to be possible? Thanks.

Steven Wieczynski: my question is

Steven Wieczynski: To get to the low end of your EBITDA guidance for the year, you guys are going to have to generate about $56 million in EBITDA in the second half of the year. That's well above what you did in the second half of 2019, and look, I fully understand there's a material change in capacity.

Steven Wieczynski: I guess the real question is, what gives you guys such confidence with only five months left in the year that kind of getting that mid-50s EBITDA in the second half of the year is going to be possible? Thanks.

Yeah, sure. Thanks, Steve.

Dyson Dryden: Yeah, sure. Thanks, Steve.

So let me just talk a little bit about, you know, our strong booking position. I think that's really going to be the key variable in the back half of the year. The Lindblad segment is a very strong booking segment for the year. So we've already booked 98 percent of— We've already booked 98% of the Lindblad segment full-year projected ticket revenues for 2024. As you know, that last 2% does come at a very high margin, so filling the rest of the 2% is our focus.

Dyson Dryden: So let me just talk a little bit about, you know, our strong booking position. I think that's really going to be the key variable in the back half of the year. The Lindblad segment is in a very strong booking position for the year. So we've already booked 98 percent of—

Speaker Change: Thanks Steve. So let me just talk a little bit about our strong booking position. I think that's really going to be the key variable in the back half of the year.

Dyson Dryden: The Lindblad segment is a very strong booking segment for the year, so we've already booked 98% of...

Dyson Dryden: we've already ninety percent the ladiden mad segment full year projected t er revenues for two thousand and twenty four

Dyson Dryden: As you know, that last 2% does come at a very high margin, so filling the rest of the 2% is our focus.

And, you know, if we do that, we should be able to get there where we want to be for the full-year guidance. So we're confident at this point in time, based on the trends and the cancellations really going back to historical levels, that we're in a good position to reach the guidance. I think also importantly, you know, the land business bookings are also very strong. The bookings just in NAHAB, which is our largest land segment, are up 20% year-over-year. So, you know, we remain confident in achieving the guidance.

Dyson Dryden: and you know if we do that we should be able to get there and where we want to be on a for the full year guidance perspective. So we're confident this point in time based on the trends and the cancellations really going back to historical levels that we're in a good position to reach the guidance.

Dyson Dryden: I think also importantly you know the land business bookings are also very strong. The bookings just in NAHAB which is our largest land segment you know are up 20% year-over-year so you know we remain confident in achieving the guidance.

Okay, thanks for that, Dyson. And then the second question, Sven, it's for you.

Dyson Dryden: Okay, thanks for that, Dyson. And then second question, Sven, it's for you. It's a bigger picture question, really around the Disney.

It's a bigger picture question, you know, really around the Disney partnership. You know, as you continue to work and, you know, and collaborate with those guys, you know, look, a big piece of this partnership was always going to be around the ability to, you know, drive load factors higher over time. And just, you know, want to ask how you feel about the partnership today? And if the ability to drive that long-term occupancy is still in play? And then maybe, you know, when will we start to see some of the material benefits of this partnership? Thanks.

Speaker Change: partnership. You know, as you continue to work

Speaker Change: and collaborate with those guys

Dyson Dryden: A big piece of this partnership was always going to be around the ability to drive load factors higher over time.

Speaker Change: and just, you know, want to ask how you feel, you know, about the partnership today and if the ability to drive that long-term occupancy is still in play and then maybe, you know, when will we start to see some of the material, you know, benefits of this partnership. Thanks.

Unnamed Executive: Thanks, Steve, and I appreciate the question. You know, like, with any new partnership... Thank you.

Thanks, Steve, and I appreciate the question. You know, like, with any new partnership... Right?

Unnamed Executive: Thanks, Steve, and I appreciate the question.

Unnamed Executive: You know, like, with any new partnership...

Unnamed Executive: It's like, you've got to kind of figure out how you're going to play together, how you're going to work together in the most productive way possible, right? So we've been working since 2004 with National Geographic, but National Geographic has morphed from being an independent organization to one owned by Fox, and then it moved over to Disney. And Disney is kind of a new player from the perspective of our relationship. So the first thing we did was...

It's like, you've got to kind of figure out how you're going to play together, how you're going to work together in the most productive way possible, right? So we've been working since 2004 with National Geographic, but National Geographic has gone from being an independent organization to one owned by Fox, and then migrating over to Disney. And Disney is kind of a new player from the perspective of our relationship. So the first thing we did was...

Unnamed Executive: Right.

Unnamed Executive: It's like you got to kind of figure out how are you going to play together, how are you going to work together in the most productive way possible, right? So we've been working since 2004 with National Geographic, but National Geographic

Unnamed Executive: has morphed from being an independent organization, the one owned by Fox, to then migrating over to Disney. And Disney is kind of a new player from the perspective of our relationship. So the first thing we did was

Unnamed Executive: This past April, we took a significant number of people from Disney, from National Geographic, and from our own organization and we went to the Pacific and spent five days together where we helped build understanding about what we do in those different segments and had sort of working sessions every day for five days, really exploring how we were going to build out this business together and how we were going to use each other's assets in a combined way to build what we call the power of three. And so when you think about what we all are individually and how you bring that together into some sort of chemical mix, I believe it's an incredibly potent one.

This past April, we took a significant number of people from Disney, from National Geographic, and from our own organization. And we went to the Pacific and spent five days together where we helped build understanding about what we do in those different segments and had sort of working sessions every day for five days, really exploring how we were going to build out this business together and how we were going to use each other's assets in a combined way to build what we call the power of three.

Unnamed Executive: This past April , we took a significant number of people from Disney

Speaker Change: from national geograph again from our own organization and we went through a pacific and spent five days together where we help build understanding about what we do in those different segments

Unnamed Executive: and had sort of working sessions every day for five days.

Unnamed Executive: really exploring how we were going to build out this business together and how we're going to use each other's assets in a combined way to build what we call the power of three

And so when you think about what we all are individually and how you bring that together into some sort of chemical mix, I believe it's an incredibly potent one. So Nat Geo not only is a brand but also has tremendous content it can help provide in terms of photography, explorers, family ideas, education. Disney is a massive, massive distribution entity, right, and we want to harness that, and they want to harness it on behalf of our collective effort. And then, obviously, we're in the execution business of making sure these expeditions happen.

Unnamed Executive: And so when you think about what we all are individually and how you bring that together into some sort of a chemical mix.

Unnamed Executive: So Nat Geo not only is a brand but also has tremendous content it can help provide in terms of photography, explorers, family ideas, and education. Disney is a massive, massive distribution entity, right? And we want to harness that, and they want to harness it on behalf of our collective effort. And then, obviously, we're in the execution business of making sure these expeditions happen. I mean, there is nobody, in my view, in the travel industry in the expedition space that has so much power behind it as a consequence of these partnerships, and so everybody is really, really interacting in a very concerted way.

Unnamed Executive: I believe it's an incredibly potent one. So Nat Geo not only is brand but also has tremendous content it can it can help provide in terms of photography, explorers,

Unnamed Executive: Family idea, education. Disney is a massive, massive distribution.

Unnamed Executive: entity right and we want to harness that they want to harness it on behalf of our collective effort

Unnamed Executive: And then obviously, we're in the execution business of making sure these expeditions happen. So, I mean, there is nobody, in my view, in the travel industry, in the expedition space that has so much power behind it.

So I mean, there is nobody, in my view, in the travel industry in the expedition space that has so much power behind it as a consequence of these partnerships, and so everybody is really, really interacting in a very concerted way. There are constant discussions going on about the next step and the next step and how we can advance the distribution, and so I think you're going to see in 2025 a lot of this begin to come to real fruition.

Unnamed Executive: as a consequence of these partnerships.

Unnamed Executive: And so, and everybody is really, really interacting in a very concerted way. There are constantly discussions going on about the next step and the next step and how can we advance the distribution. And so, I think you're gonna see in 2025,

Unnamed Executive: There are constant discussions going on about the next step and the next step and how we can advance the distribution, and so I think you're going to see in 2025 a lot of this begin to come to real fruition. Remember we only signed the deal in November, and then you have to plan, and then you have to, and Disney is a big organization and doesn't necessarily move as quickly as a smaller one like ourselves, but it is moving, and once it gets up to full steam, I think it's going to, I think it cannot help but have a significant effect on how we grow the business.

Remember we only signed the deal in November, and then you have to plan, and then you have to, and Disney is a big organization and doesn't necessarily move as quickly as a smaller one like ourselves, but it is moving, and once it gets up to full steam, I think it's going to, I think it cannot help but have a significant effect on how we grow the business.

Unnamed Executive: a lot of us begin to come to real fruition

Unnamed Executive: Remember, we only signed the deal in November and then you have to plan and then you have to, you know, and Disney is a big organization and doesn't necessarily...

Unnamed Executive: It doesn't necessarily move as quickly as a smaller one like ourselves, but it is moving and once it gets up to full steam, I think it cannot help but have a significant effect on how we grow the business.

Unnamed Executive: That's a great color. Thanks guys, I really appreciate it.

That's a great color. Thanks guys, I really appreciate it.

Unnamed Executive: That's great color. Thanks guys, really appreciate it.

Eric Wold: Our next question comes from the line of Eric Wold with D. Reilly Securities. Your line is open.

Our next question comes from the line of Eric Wold with B. Riley Securities. Your line is open.

Eric Wold: Thanks, Steve.

Speaker Change: Our next question comes from the line of Eric Wold with B. Reilly Securities. Your line is open.

Eric Wold: Thank you. Good morning.

Thank you. Good morning.

Eric Wold: Thank you. Good morning. A couple questions, I guess. First question, kind of a follow-up on the last one around the expanded Nat Geo-Disney relationship. Obviously, you said you made the comment about the...

Unnamed Executive: A couple questions, I guess. First question is kind of a follow-up on the last one about the expanded Matt Geo-Disney relationship. Obviously, you said you made a comment about, obviously, organizations like Disney maybe don't move as fast as you expected. You're, you know, you went with a bunch of the teams in April. You're launching a new brand by September. I guess if you take everything together, You know, is everything going to be expected when you first made the announcement back in November, kind of running on schedule, ahead of plan, behind plan, versus where you were? And can you make any maybe general comments about any bookings tailwind from the extended relationship in 25, as you kind of previously expected you could see?

A couple questions, I guess. First question is kind of a follow-up on the last one about the expanded Matt Geo-Disney relationship. Obviously, you said you made a comment about, obviously, organizations like Disney maybe don't move as fast as you expected. You're, you know, you went with a bunch of the teams in April. You're launching a new brand by September. I guess if you take everything together, You know, is everything going to be expected when you first made the announcement back in November, kind of running on schedule, ahead of plan, behind plan, versus where you were? And, you know, can you make any maybe general comments about any bookings tailwind from the expanded relationship in 25, as you kind of previously expected you'd see?

Unnamed Executive: Organizations like Disney, you know, maybe don't move as fast as you expected. You're, you know, you went with a bunch of the teams in April , you're launching a new brand by September . I guess if you take everything together,

Unnamed Executive: You know, is everything going to be expected when you first made the announcement back in November , kind of running on schedule, ahead of plan, behind plan, versus where you were? And can you make any maybe general comments?

Unnamed Executive: about any bookings tailwind from the X-ray relationship in 25 as you kind of previously expected you could see.

Unnamed Executive: Yeah, so first of all, I just want to clarify one thing. I did not say they were moving slower than expected. I just meant that a big organization doesn't necessarily move as quickly as a smaller organization. But I think they're moving faster than I would have expected, to be honest, given the fact that it is such a large organization. So one of the major things that are going to happen this fall is a real sort of coming out party, if you will, with the trade, with their entire sales team, which is huge by comparison, maybe upwards of 10 times the size of our own or more, that exposes products, their products, and now our products as well to the travel trade.

Yeah, so first of all, I just want to clarify one thing. I did not say they were moving slower than expected. I just meant that a big organization doesn't necessarily move as quickly as a smaller organization. But I think they're moving faster than I would have expected, to be honest, given the fact that it is such a large organization. So, one of the major things that'll happen this fall is a real sort of coming out party, if you will, with the trade, with their entire sales team, which is huge by comparison, maybe upwards of 10 times the size of our own or more, that exposes products, their products, and now our products as well, to the travel trade.

Unnamed Executive: Yeah, so first of all, I just want to clarify one thing. I did not say they were moving slower than expected. I just meant that a big organization doesn't necessarily move as quickly as a smaller organization.

Unnamed Executive: I think they're moving faster than I would have expected, to be honest, given the fact that it is such a large organization.

Unnamed Executive: So, one of the major things that's going to happen this fall is a real sort of coming out party, if you will, with the trade, with our entire sales team.

Unnamed Executive: which is huge by comparison, maybe upwards of 10 times the size of our own or more.

Unnamed Executive: that exposes products to their products and now our products as well to the travel trade i mean this is a massive massive exexpansion of the exposure that in a critical area of business development

Unnamed Executive: I mean, this is a massive, massive expansion of exposure in a critical area of business development. So that and advertising plans and direct mail campaigns and search, now we're, you know, we used to, National Geographic and ourselves, we used to compete for search terms, for example, because we had, we worked together, but we also had different entities because there was different attribution as to how the business was sourced. All of that is no longer there.

I mean, this is a massive, massive expansion of exposure in a critical area of business development. So, that, and advertising plans, and direct mail campaigns, and search. Now we're, you know, we used to, National Geographic and ourselves, we used to compete for search terms, for example, because we had, we worked together, but we also had different entities because there was different attribution as to how the business was sourced. All of that is no longer there.

Unnamed Executive: So, that, and advertising plans, and direct mail campaigns, and search.

Unnamed Executive: Now we're, you know, we used to, National Geographic and ourselves, we used to compete for search terms, for example, because we had, we worked together but we also had different entities because there was different attribution as to how the business was sourced.

Unnamed Executive: So we are collaborating on literally everything to drive the business. And so, you know, I can't quantify it in absolute terms, but it's hard for me to imagine that it isn't going to be a very, very powerful force going forward. And we will, I think, start the next earnings call, the one after that. I think we will be in a position to be more specific as a consequence of having more sort of water under the bridge.

So, we are collaborating on literally everything to drive the business. And so, you know, I can't quantify it in absolute terms, but it's hard for me to imagine that it isn't going to be a very, very powerful force going forward. And we will, I think, start the next earnings call and the one after that. I think we will be in a position to be more specific as a consequence of having more sort of water under the bridge.

Unnamed Executive: All of that is no longer there so we are collaborating on literally everything to drive the business.

Unnamed Executive: And so, you know, I can't quantify it in absolute terms, but it's hard for me to imagine that it isn't going to be a very, very powerful force.

Unnamed Executive: going forward. And we will, I think, start the, you know, starting the next earnings call and the one after that. I think we will be in the position to be more specific as a consequence of having more sort of water under the bridge.

Unnamed Executive: I would just add that, you know, as you well know, we have about a nine-month booking window on average that's been pretty consistent. And so, you know, as all this activity is ramping up, as Sven mentioned, the results really come in 2025, in large part just due to the timing of the booking window. So the activity is beginning to happen in earnest, and we expect the results to really start showing in 2025.

I would just add that, you know, as you well know, we have about a nine-month booking window on average that's been pretty consistent. And so, you know, as all this activity is ramping up, as Sven mentioned, the results really come in 2025, in large part just due to the timing of the booking window. So the activity is beginning to happen in earnest, and we expect the results to really start showing in 2025.

Unnamed Executive: I would just add that you know as you as you well know we have about a nine month booking window on average that's been pretty consistent and so

Unnamed Executive: As all this activity is ramping up, as Sven mentioned, the results really come in 2025 in large part just due to the timing of the booking window. So, the activity is beginning to happen in earnest, and we expect the results to really start showing.

Perfect. And the follow-up question, on the two vessels you acquired in, or are acquiring in the Galapagos, you mentioned... (inaudible] increase your inventory in the region by 45%. Any more comments in terms of night additions you get from that potential annual revenue from the two ships? And then, you know, how does this, on a longer term basis, impact, you know, potential pricing in the region by taking out two competitive ships? And what is the opportunity to leverage that customer list to bring them to other expeditions outside of the?

Unnamed Executive: in 2025.

Speaker Change: Perfect, and the following question, on the two vessels you acquired, or are acquiring in the Galapagos, you mentioned...

Unnamed Executive: increase your inventory in the region by 45%. Any more comments in terms of night additions you get from that potential annual revenue from the two ships? And then, you know, how does this longer-term basis impact potential pricing in the region by taking out two competitive ships? And what is the opportunity to leverage that customer list?

Unnamed Executive: but

Unnamed Executive: increase your inventory in the region by 45% any more comments in terms of

Unnamed Executive: night additions you get from that potential annual revenue from the two ships and then you know how does this a longer term base how does this impact you know potential pricing the region by taking out two competitive ships and what is the opportunity to leverage that customer list

Speaker Change: to kind of bring them to other expeditions outside of the region.

Do you want to answer that? Sure, so we're not in a position to update any guidance for 2025 at this point, but we did announce that they're going to come in the service at the end of the first quarter. And so when we put out guidance, we'll certainly show that contribution. We believe it is going to be really important as far as adding first-time guest inventory. And we underwrote a very conservative occupancy level for 2025 with the transaction, which we believe is going to be very accretive to shareholders financially and, frankly, from a leverage perspective as well. You know, I think we'll just have to give you more guidance as we go forward.

Speaker Change: Do you want to answer that? Sure, sure. So, you know, we're not in a position to update, you know, any guidance for 2025 at this point. But...

Speaker Change: We did announce that they're going to come in the service at the end of the first quarter. And so when we put out guidance, we'll certainly show that contribution.

Speaker Change: We believe these are going to be really important as far as adding first-time guest inventory. And we underwrote a very conservative occupancy level for 2025 with the transaction, which we believe is going to be very accretive to shareholders financially, and frankly, from a leverage perspective as well.

Unnamed Executive: You know, I think we'll just have to give you more guidance as we go forward on that. But this is largely a first-time guest product, which is, you know, very much aligned with our mission to add new first-time guests to the funnel and improve the overall occupancy levels for the organization. The 45% increase is just the fact that there's a fixed license business in the Galapagos, which I think most are aware of. And so that just means it's not like two new ships are coming into the Galapagos. You know, we took two ships from a competitor of ours and brought them into our fleet.

Unnamed Executive: You know, I think we'll just have to give you more guidance as we go forward, you know, on that, but this is largely a first-time guest product.

But this is largely a first-time guest product, which is, you know, very much aligned with our mission to add new first-time guests to the funnel and improve the overall occupancy levels for the organization. The 45% increase is just the fact that there's a fixed license business in the Galapagos, which I think most are aware of. And so that just means it's not like two new ships are coming into the Galapagos. You know, we took two ships from a competitor of ours and brought them into our fleet.

Unnamed Executive: which is...

Unnamed Executive: You know, very much aligned with our mission to add new first-time guests to the funnel and improve the overall occupancy levels for the organization. The 45% increase is just the fact that, you know, there's a fixed license business, which in the Galapagos, which I think

Unnamed Executive: Most are aware of and so that just means it's not like two new ships are coming to the Galapagos You know, we took two ships from a competitor of ours and brought them into our our fleet

Speaker Change: Is that helpful?

Alex Fuhrman: The next question comes from the line of Alex Fuhrman with Craig Halum. Your line is open.

Speaker Change: Next question comes from the line of Alex Fuhrman with Craig Halum. Your line is open.

Hey guys, thanks very much for taking my question. It sounds like you guys are investing a lot more in the Galapagos now as a region with the new ships you have coming online. Can you talk about what your market share in that region is going to be when you have these new ships online giving the sixth supply in the region? And then, I think in the past you've talked about the Galapagos being a good region for you in terms of acquiring first-time passengers. You know, is that the case? Do you expect to be able to acquire a lot of new customers as a result of your increased presence in that geography?

Unnamed Executive: Hey guys, thanks very much for taking my question. It sounds like you guys are investing a lot more in the Galapagos now as a region with the new ships you have coming online. Can you talk about what your market share in that region is going to be when you have these new ships online giving the sixth supply in the region? And then, I think in the past you've talked about the Galapagos being a good region for you in terms of acquiring first-time passengers. You know, is that the case? Do you expect to be able to acquire a lot of new customers as a result of your increased presence in that geography?

Unnamed Executive: Hey guys, thanks very much for taking my question. It sounds like you guys are investing a lot more in the Galapagos now as a region with the new ships you have.

Unnamed Executive: coming online. Can you talk about what your market share in that region is going to be, you know, when you have these these new ships online giving the sixth?

Unnamed Executive: supply in the region. And then I think in the past you've talked about the Galapagos being a good region for you in terms of acquiring first-time passengers. You know, is that the case? Do you expect to be able to acquire a lot of new customers as a result of your increased presence in that geography?

Yeah, well, Galapagos is a place we've been involved with for, for a very, very long time. I mean, going back to my father's first meeting people there in 1967.

Unnamed Executive: oh

Speaker Change: Yeah, well, so, you know, Galapagos is a place we've been involved with for a very, very long time. I mean, going back to my father's first meeting people there in 1967. And so it's a place that we're very closely connected with and is very, very important to us. And so the opportunity to expand.

And so it's a place that we're very closely connected with, and it's very, very important to us. And so the opportunity to expand in a place that we have such a deep connection with and that we're so, you know, the public sort of equates us being connected to, it is, for us, a real, real opportunity. So now we will have a total of 206 beds, I think it is, beds in the Galapagos, which isn't a lot when you think of cruise ships, but there are only, in terms of boats that are like 40, 50 passengers or more, there are only about 600 beds total, I think, somewhere in that neighborhood in the Galapagos, including our own.

Speaker Change: in a place that we have such a deep connection with and that we're so, you know, that the public sort of equates us being connected with is

Speaker Change: for us a real real opportunity. So now we will have a total of 206, I think it is, beds in the Galapagos

Speaker Change: which is, which doesn't sound like a lot when you think of cruise ships, but it's, there's only in terms of boats that are like 40...

Speaker Change: 50 passengers or more, there are only about 600 beds total, I think, somewhere in that neighborhood.

So, we represent a very, very sizable percentage of the market. And, as a consequence of that, we can, we can change our investment mentality in terms of promoting the area because, obviously, we have a level of scale that is proportionately different, which is very, very helpful.

Speaker Change: in the Galapagos, including our own. So we represent a very, very sizable percentage of the market.

Speaker Change: As a consequence of that, we can change our investment mentality in terms of promoting the area because obviously we have a level of scale that is proportionately different, which is very, very helpful.

And yes, about new people, see, Galapagos is an iconic place, you know, for people who are interested in nature, probably as an island group, more known than any other in the world, and more, you know, more aspirational than any other in the world from the perspective of natural history. And so... It absolutely is a place where you can get people in the door for the first time, probably more easily than any place else on Earth. That's really helpful. Thanks very much.

Speaker Change: And yes, about new people. See, Galapagos is an iconic place.

Speaker Change: You know, for people who are interested in nature.

Speaker Change: probably as an island group more known than any other in the world.

Speaker Change: and more, you know, more aspirational than any other in the world from the perspective of natural history. And so.

Unnamed Executive: It absolutely is a place where you can get people in the door for the first time, probably more easily than any place else on Earth. That's really helpful. Thanks very much.

Speaker Change: It absolutely is a place where you can get people in the door for the first time.

Speaker Change: probably more easily than any place else on earth.

Unnamed Executive: Great, that's really helpful. Thanks very much.

Chris Woronka: The next question comes from the line of Chris Woronka with Deutsche Bank. Your line is open.

Chris Woronka: The next question comes from the line of Chris Woronka with Deutsche Bank. Your line is open.

Speaker Change: Next question comes from the line of Chris Woronka with Belchebank. Your line is open.

Hey guys, morning. Thanks for all the details so far. I think you mentioned earlier that you might be looking to increase your activity in the river cruising space. And so, the question is, you do have two new vessels coming for Galapagos, would that require, if you decide to go down the river cruising path in a bigger way, would that require an additional fleet, or can you make that happen with your current fleet?

Chris Woronka: Hey guys, morning. Thanks for all the details so far. I think you mentioned earlier that you might be looking to increase your activity in the river cruising space. And so, the question is, if you have two new vessels coming for Galapagos, would that require, if you decide to go down the river cruising path in a bigger way, would that require an additional fleet, or can you make that happen with your current vessel?

Chris Woronka: Hey guys, good morning. Thanks for all the details so far.

Chris Woronka: So Matt, I think you mentioned earlier that you might be looking to increase your activity in the river cruising space. And so the question is, you do have two new vessels coming for Galapagos.

Chris Woronka: Would that require, if you decide to go down the river cruising path in a bigger way, would that require additional fleet or can you make that happen with your current fleet?

Unnamed Executive: Yeah, so anything that we imagine doing on rivers, well, we do a lot on rivers already, on the Colombian Snake River, on the Amazon. So we are already deeply involved with rivers, and we know that people really like rivers, and in Egypt, obviously, as well.

Yeah, so anything that we imagine doing on rivers, well, we do a lot on rivers already, on the Colombian Snake River, on the Amazon, so we are already deeply involved with rivers, and we know that people really like rivers, and in Egypt, obviously, as well. So we would imagine, at least for the moment, to pursue rivers on a charter basis, not to build for rivers or not to take our ships into rivers more than they currently do on the Colombian Snake River.

Unnamed Executive: Yeah, so anything that we envision doing on rivers, well, we do a lot on rivers already, on the Colombian Snake River, on the Amazon, so we already are deeply involved with rivers, and we know that people really like rivers, and in Egypt, obviously, as well.

Unnamed Executive: So we would imagine, at least for the moment, to pursue rivers on a charter basis, not to build for rivers or not to take our ships into rivers more than they currently do on the Colombian Snake River. So we now own 12 ships, and we charter 8 ships, and those 8 charter ships are also important because they fill different niches, maybe certain places that are particularly seasonal, and we don't necessarily want to own something; we don't want to own something where you can only successfully operate it for 3 months a year and be stuck with it for the other 9.

Unnamed Executive: So, we would envision, at least for the moment, to pursue rivers on a charter basis, not on

Unnamed Executive: You know, not on building for rivers, or not taking our ships, you know, into rivers, more than they currently do in the Colombian Snake River.

So we now own 12 ships, and we charter 8 ships, and those 8 charter ships are also important because they fill different niches, maybe certain places that are particularly seasonal, and we don't necessarily want to own something; we don't want to own something where you can only successfully operate it for 3 months a year and be stuck with it for the other 9. So Charter is really for us a great mechanism to expand our offering in certain instances to test areas that, you know, after which we might decide we want to get more deeply involved. So, we have in the past chartered ships to certain areas and then eventually bought a ship or built a ship to accommodate that interest. But right now, it's going to be primarily focused on charter work.

Unnamed Executive: So we own now 12 ships and we charter 8 ships.

Unnamed Executive: And those eight partnerships are also important because they fill different niches.

Unnamed Executive: Certain places that are particularly seasonal, we don't want to own something where you can only successfully operate it for three months a year and be stuck with it for the other nine. So charter for us is a great mechanism to expand our offerings.

Unnamed Executive: So charter is really for us a great mechanism to expand our offerings, in certain instances, to test areas that, you know, after which we might decide we want to get more deeply involved. So we have in the past chartered ships to certain areas and then eventually bought a ship or built a ship to accommodate that interest. But right now, it's going to be primarily focused on charter work.

Dyson Dryden: And can I just add that... I just want to add one thing, which is, you know, unlike the river product that Sven's mentioning, the Galapagos is a 52-week operational deployment. So that's a place where, you know, owning a ship makes a lot of sense. And I did find the statistics in my notes here. There are only nine ships in the Galapagos with over 40 passengers in existence. So it is a, you know, pretty, you know, little thing.

And can I just add that, you know, unlike the river product that Sven's mentioning, the Galapagos is a 52-week operational deployment. So that's a place where, you know, owning a ship makes a lot of sense. And I did find this statistic in my notes here. There are only nine ships in the Galapagos with over 40 passengers in existence.

So it is a, you know, pretty, you know.

Yeah, yes, understood. Thanks. Thanks, Tyson. I appreciate that.

Chris Woronka: Yeah, yes, understood. Thanks. Thanks, Tyson. I appreciate that.

And then, you know, obviously, there's a lot of moving parts here. You guys, you've taken, if I look at relative to 2019 or 18, whatever the right year is, you've taken on more land-based businesses. You're, you know, growing. You're growing the fleet now. You have the NatGeo and Disney partnership.

Chris Woronka: And then, you know, obviously, there's a lot of moving parts here. You guys, you've taken, if I look at relative to 2019 or 18, whatever the right year is, you've taken on more land-based businesses. You're, you know, growing. You're growing the fleet now. You have the NatGeo and Disney partnership.

Chris Woronka: Youre growing youre growing the fleet now.

Chris Woronka: <unk> and Disney partnership.

And we've had inflation, of course. So, the question is, as we look out, maybe 24 is not the right year. Maybe it's 25, 26.

Chris Woronka: And we've had inflation, of course. So, the question is, as we look out, maybe 24 is not the right year. Maybe it's 25, 26.

Speaker Change: And we've had inflation of course. So the question is as we look out maybe 24 is that the right year, maybe it's 25%, 26% the margin profile of the overall business. We just think about the EBITDA margin of 20% or so reached in 2019 is that J D.

The margin profile, the overall business, we just think about the EBITDA margin of, you know, 20% or so reached in 2019. Is that, is there a lot of upside in the coming years? Or is there, you know, are there structural limits? Just trying to get a sense of how to frame the, you know, the two to three-year potential, right?

Dyson Dryden: The margin profile, the overall business, we just think about EBITDA margin of, you know, 20% or so reached in 2019. Is that, is there a lot of upside in the out years, or is there, you know, structural limits? Just trying to get a sense of how to frame the, you know, the two to three-year potential, right?

Speaker Change: A lot of upside in the out years or is there are there structural limits just trying to get a sense of how to frame.

Dyson Dryden: Two to three year potential right.

Dyson Dryden: Yeah. Without giving specific guidance, we did mention that we're focused on cost and efficiency as well. We think a combination of returning to historical occupancies and also focusing on efficiency and cost should be an opportunity there. And that work is ongoing right now. But certainly that, Chris, to your point, that would be the goal. There should be significant operating leverage in the business. Some will depend on the ultimate mix of land versus marine because they do carry different margin profiles. But yes, your focus is similar to ours.

Yeah. Without giving specific guidance, we did mention that we're focused on cost and efficiency as well. We think a combination of returning to historical occupancies and also focusing on efficiency and cost should be an opportunity there. And that work is ongoing right now. But certainly that, Chris, to your point, that would be the goal. There should be significant operating leverage in the business. Some will depend on the ultimate mix of land versus marine because they do carry different margin profiles. But yes, your focus is similar to ours.

Dyson Dryden: Yeah.

Speaker Change: Without giving specific guidance, we did mention that we're focused on cost and efficiency as well, we think a combination of.

Dyson Dryden: Again, returning to historical Occupancies and also.

Dyson Dryden: Our focus on efficiency and cost there should be an opportunity there.

Dyson Dryden: And that work is ongoing right now, but certainly that Chris to your point that that would be the goal there should be significant operating leverage in the business. Some will depend on the ultimate mix of land.

Chris Woronka: Versus marine.

Dyson Dryden: Because they do carry a different margin profiles, but but yes. Your focus is similar to ours.

Dyson Dryden: Okay.

Chris Woronka: Okay, great. I appreciate that. Thanks, guys.

Okay, great. I appreciate that. Thanks, guys.

Chris Woronka: Okay, great appreciate that thanks, guys.

Speaker Change: Thank you.

Operator: There are no further questions at this time. Mr. Dryden, I turn the call back over to you.

There are no further questions at this time. Mr. Dryden, I turn the call back over to you.

Chris Woronka: There are no further questions at this time, Mr. Jonathan I'll turn the call back over to you.

Dryden: Okay, great. Thank you Doug. Thank you for everyone for joining our second quarter earnings call I Hope everyone has a wonderful day and you have any questions don't hesitate to reach for us directly.

Dyson Dryden: Okay, great. Thank you, Desiree, and thank you to everyone for joining our second quarter earnings call. I hope everyone has a wonderful day, and if you have any questions, don't hesitate to reach out to us directly.

Okay, great. Thank you, Desiree, and thank you to everyone for joining our second quarter earnings call. I hope everyone has a wonderful day, and if you have any questions, don't hesitate to reach out to us directly. Thank you. Ladies and gentlemen, this concludes today's conference call. You may now go...

Operator: Ladies and gentlemen, this concludes today's conference call. You may now disconnect.

Operator: Thank you.

Operator: Ladies and gentlemen. This concludes today's conference call you may now disconnect.

Ladies and gentlemen, this concludes today's conference call. You may now disconnect.

Operator: [music].

Alex Fuhrman, Steven Wieczynski, Craig Felenstein, and Eric Wold

Both businesses continue to outperform our original expectations. On July 31st, 2024, we completed the acquisition of Wineland Thompson Adventures, an adventure travel group that primarily operates African safaris. The acquisition purchase price is $30 million, which is financed through $24 million of cash and $6 million in Lindblad stocks.