Lindblad Expeditions Restructures National Geographic Sales Channel

TL;DR

Nat Geo sales channel commission structure changed Jan 1, 2024. Q3 2023 sales via that channel were $18.6M.

AI Summary

Lindblad Expeditions Holdings, Inc. reported its Q3 2024 results, noting a change in its brand license agreement with National Geographic, effective January 1, 2024. Under the new agreement, National Geographic no longer receives commissions on sales booked through its former sales channel, as the co-selling arrangement now operates as direct sales via Lindblad's system. In Q3 2023, the National Geographic sales channel generated $18.6 million in guest ticket revenue, and $53.2 million for the nine months ended September 30, 2023.

Why It Matters

This change in the sales channel structure with National Geographic could impact revenue recognition and commission structures for Lindblad Expeditions.

Risk Assessment

Risk Level: medium — Changes in significant brand partnerships and revenue streams can introduce financial and operational risks.

Key Numbers

• $18.6M — Q3 2023 Guest Ticket Revenue (Generated through the former National Geographic sales channel.)
• $53.2M — Nine Months Ended Sep 30, 2023 Guest Ticket Revenue (Generated through the former National Geographic sales channel.)

Key Players & Entities

• Lindblad Expeditions Holdings, Inc. (company) — Filer
• National Geographic (company) — Brand partner
• January 1, 2024 (date) — Effective date of agreement change
• $18.6 million (dollar_amount) — Q3 2023 revenue from National Geographic sales channel
• $53.2 million (dollar_amount) — Nine months ended September 30, 2023 revenue from National Geographic sales channel

FAQ

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share LIND The NASDAQ Stock Mar

Filing Documents

• lindb20240930c_10q.htm (10-Q) — 1447KB
• ex_721270.htm (EX-31.1) — 13KB
• ex_721271.htm (EX-31.2) — 13KB
• ex_721272.htm (EX-32.1) — 5KB
• ex_721273.htm (EX-32.2) — 5KB
• 0001437749-24-033357.txt ( ) — 6298KB
• lind-20240930.xsd (EX-101.SCH) — 52KB
• lind-20240930_cal.xml (EX-101.CAL) — 45KB
• lind-20240930_def.xml (EX-101.DEF) — 343KB
• lind-20240930_lab.xml (EX-101.LAB) — 297KB
• lind-20240930_pre.xml (EX-101.PRE) — 374KB
• lindb20240930c_10q_htm.xml (XML) — 969KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 1 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 2 Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 3 Condensed Consolidated Statements of Stockholders' Deficit for the Three and N ine Months Ended September 30, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Statements of Cash Flows for the N ine Months Ended September 30, 2024 and 2023 (Unaudited) 6 Notes to the Condensed Consolidated Financial Statements (Unaudited) 7 ITEM 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 18 ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 30 ITEM 4.

Controls and Procedures

Controls and Procedures 30

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 31 ITEM 1A.

Risk Factors

Risk Factors 31 ITEM 2. Unregistered Sale of Equity Securities and Use of Proceeds 31 ITEM 3. Defaults Upon Senior Securities 32 ITEM 4. Mine Safety Disclosures 32 ITEM 5. Other Information 32 ITEM 6. Exhibits 32

SIGNATURES

SIGNATURES 34 PART 1. FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except share and per share data) As of September 30, 2024 As of December 31, 2023 (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 193,881 $ 156,845 Restricted cash 30,694 30,499 Prepaid expenses and other current assets 63,275 57,158 Total current assets 287,850 244,502 Property and equipment, net 516,939 526,002 Goodwill 67,801 42,017 Intangibles, net 8,058 9,412 Other long-term assets 9,174 9,364 Total assets $ 889,822 $ 831,297 LIABILITIES Current Liabilities: Unearned passenger revenues $ 314,233 $ 252,199 Accounts payable and accrued expenses 70,327 65,055 Lease liabilities - current 1,554 1,923 Long-term debt - current - 47 Total current liabilities 386,114 319,224 Long-term debt, less current portion 624,501 621,778 Deferred tax liabilities - 2,118 Other long-term liabilities 1,575 1,943 Total liabilities 1,012,190 945,063 Commitments and contingencies - - Series A redeemable convertible preferred stock, 165,000 shares authorized; 62,000 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively 76,968 73,514 Redeemable noncontrolling interests 27,542 37,784 104,510 111,298 STOCKHOLDERS' DEFICIT Preferred stock, $ 0.0001 par value, 1,000,000 shares authorized; 62,000 Series A shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively - - Common stock, $ 0.0001 par value, 200,000,000 shares authorized; 54,495,338 and 53,390,082 issued, 54,363,515 and 53,332,150 outstanding as of September 30, 2024 and December 31, 2023, respectively 6 5 Additional paid-in capital 107,739 97,139 Accumulated deficit ( 334,623 ) ( 322,208 ) Total stockholders' deficit ( 226,878 ) ( 225,064 ) Total liabilities, mezzanine equity and stockholders' deficit $ 889,822 $ 831,297 The

Business

Business Lindblad Expeditions Holdings, Inc.'s and its consolidated subsidiaries' (collectively, the "Company" or "Lindblad") mission is offering life-changing adventures around the world and pioneering innovative ways to allow its guests to connect with exotic and remote places. The Company's common stock is listed on the NASDAQ Capital Market under the symbol "LIND". The Company operates the following two reportable business segments: Lindblad Segment. The Lindblad segment currently operates a fleet of ten owned expedition ships and six seasonal charter vessels, and primarily provides ship-based expeditions aboard these customized, nimble and intimately-scaled vessels that are able to venture where larger cruise ships cannot, thus allowing Lindblad to offer up-close experiences in the planet's wild and remote places and capitals of culture. Each expedition ship is fully equipped with state-of-the-art tools for in-depth exploration and the majority of expeditions involve travel to remote places with limited infrastructure and ports, such as Antarctica and the Arctic, or places that are best accessed by a ship, such as the Galpagos Islands, Alaska, Baja California's Sea of Cortez and Panama, and foster active engagement by guests. The Company has a brand license agreement with National Geographic Partners, LLC ("National Geographic"), where the Company's voyages are marketed under the National Geographic-Lindblad Expeditions brand, and provides for lecturers and National Geographic experts, including photographers, writers, marine biologists, naturalists, field researchers and film crews, to join many of the Company's expeditions. Land Experiences Segment. The Land Experiences segment operates land-based, eco-conscious expeditions and active nature focused tours, and includes the five primarily land-based brands, Natural Habitat, Inc. ("Natural Habitat"), Off the Beaten Path, LLC ("Off the Beaten Path"), DuVine Cycling + Adventure Company ("DuVine"), Classic J

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