10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                   to

Commission file number 001-35898

LINDBLAD EXPEDITIONS HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware	27-4749725
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

96 Morton Street, 9th Floor, New York, New York, 10014

(Address of principal executive offices) (Zip Code)

(212) 261-9000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.0001 per share	LIND	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of April 24, 2023, 53,251,533 shares of common stock, par value $0.0001 per share, were outstanding.

LINDBLAD EXPEDITIONS HOLDINGS, INC.

Quarterly Report On Form 10-Q

For The Quarter Ended March 31, 2023

Table of Contents

		Page(s)
PART I. FINANCIAL INFORMATION
ITEM 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets as of March 31, 2023 (Unaudited) and December 31, 2022	1
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2023 and 2022 (Unaudited)	2
	Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2023 and 2022 (Unaudited)	3
	Condensed Consolidated Statements of Stockholders’ Deficit for the Three Months Ended March 31, 2023 and 2022 (Unaudited)	4
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022 (Unaudited)	5
	Notes to the Condensed Consolidated Financial Statements (Unaudited)	6
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	27
ITEM 4.	Controls and Procedures	28
PART II. OTHER INFORMATION
ITEM 1.	Legal Proceedings	28
ITEM 1A.	Risk Factors	28
ITEM 2.	Unregistered Sale of Equity Securities and Use of Proceeds	28
ITEM 3.	Defaults Upon Senior Securities	29
ITEM 4.	Mine Safety Disclosures	29
ITEM 5.	Other Information	29
ITEM 6.	Exhibits	30
SIGNATURES		31

PART 1.	FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

	March 31, 2023			December 31, 2022
	(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	83,984		$	87,177
Restricted cash		36,740			28,847
Short-term securities		-			13,591
Marine operating supplies		8,880			9,961
Inventories		2,221			1,965
Prepaid expenses and other current assets		44,101			41,778
Total current assets		175,926			183,319
Property and equipment, net		534,492			539,406
Goodwill		42,017			42,017
Intangibles, net		10,760			11,219
Deferred tax asset		2,121			2,167
Right-to-use lease assets		3,992			4,345
Other long-term assets		4,960			5,502
Total assets	$	774,268		$	787,975
LIABILITIES
Current Liabilities:
Unearned passenger revenues	$	249,633		$	245,101
Accounts payable and accrued expenses		53,388			71,019
Long-term debt - current		23,308			23,337
Lease liabilities - current		1,683			1,663
Total current liabilities		328,012			341,120
Long-term debt, less current portion		524,332			529,452
Deferred tax liabilities		1,486			-
Lease liabilities		2,582			2,961
Other long-term liabilities		89			88
Total liabilities		856,501			873,621
Commitments and contingencies		-			-
Series A redeemable convertible preferred stock, 165,000 shares authorized; 62,000 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively		70,211			69,143
Redeemable noncontrolling interests		25,698			27,886
		95,909			97,029
STOCKHOLDERS’ DEFICIT
Preferred stock, $0.0001 par value, 1,000,000 shares authorized; 62,000 Series A shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively		-			-
Common stock, $0.0001 par value, 200,000,000 shares authorized; 53,243,007 and 53,177,437 issued, 53,175,702 and 53,110,132 outstanding as of March 31, 2023 and December 31, 2022, respectively		5			5
Additional paid-in capital		86,741			83,850
Accumulated deficit		(264,888	)		(266,530	)
Total stockholders' deficit		(178,142	)		(182,675	)
Total liabilities, mezzanine equity and stockholders' deficit	$	774,268		$	787,975

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

(unaudited)

	For the three months ended March 31,
	2023			2022
Tour revenues	$	143,395		$	67,846
Operating expenses:
Cost of tours		72,050			57,947
General and administrative		26,419			20,637
Selling and marketing		20,652			12,329
Depreciation and amortization		11,808			11,178
Total operating expenses		130,929			102,091
Operating income (loss)		12,466			(34,245	)
Other (expense) income:
Interest expense, net		(10,467	)		(8,715	)
Gain on foreign currency		152			130
Other income		170			533
Total other expense		(10,145	)		(8,052	)
Income (loss) before income taxes		2,321			(42,297	)
Income tax expense (benefit)		1,543			(149	)
Net income (loss)		778			(42,148	)
Net income (loss) attributable to noncontrolling interest		157			(427	)
Net income (loss) attributable to Lindblad Expeditions Holdings, Inc.		621			(41,721	)
Series A redeemable convertible preferred stock dividend		1,069			1,298
Net loss available to stockholders	$	(448	)	$	(43,019	)
Weighted average shares outstanding
Basic		53,128,100			50,757,126
Diluted		53,128,100			50,757,126
Undistributed loss per share available to stockholders:
Basic	$	(0.01	)	$	(0.85	)
Diluted	$	(0.01	)	$	(0.85	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Loss

(In thousands)

(unaudited)

	For the three months ended March 31,
	2023		2022
Net income (loss)	$	778	$	(42,148	)
Other comprehensive income:
Cash flow hedges:
Reclassification adjustment, net of tax		-		634
Total other comprehensive income		-		634
Total comprehensive income (loss)		778		(41,514	)
Less: comprehensive income (loss) attributive to non-controlling interest		157		(427	)
Comprehensive income (loss) attributable to stockholders	$	621	$	(41,087	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Deficit

(In thousands, except share data)

(unaudited)

	Common Stock				Additional Paid-In			Accumulated			Total Stockholders'
	Shares		Amount		Capital			Deficit			Deficit
Balance as of December 31, 2022		53,177,437	$	5	$	83,850		$	(266,530	)	$	(182,675	)
Stock-based compensation		-		-		2,902			-			2,902
Net activity related to equity compensation plans		65,570		-		(11	)		-			(11	)
Redeemable noncontrolling interest		-		-		-			2,090			2,090
Series A preferred stock dividend		-		-		-			(1,069	)		(1,069	)
Net income attributable to Lindblad Expeditions Holdings, Inc.		-		-		-			621			621
Balance as of March 31, 2023		53,243,007	$	5	$	86,741		$	(264,888	)	$	(178,142	)

	Common Stock				Additional Paid-In			Accumulated			Accumulated Other			Total Stockholders'
	Shares		Amount		Capital			Deficit			Comprehensive Loss			Deficit
Balance as of December 31, 2021		50,800,786	$	5	$	58,485		$	(136,439	)	$	(634	)	$	(78,583	)
Stock-based compensation		-		-		1,828			-			-			1,828
Net activity related to equity compensation plans		132,685		-		(6	)		-			-			(6	)
Other comprehensive income, net		-		-		-			-			634			634
Redeemable noncontrolling interest		-		-		-			(4,259	)		-			(4,259	)
Series A preferred shares dividend		-		-		-			(1,298	)		-			(1,298	)
Net loss attributable to Lindblad Expeditions Holdings, Inc.		-		-		-			(41,721	)		-			(41,721	)
Balance as of March 31, 2022		50,933,471	$	5	$	60,307		$	(183,717	)	$	-		$	(123,405	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

LINDBLAD EXPEDITIONS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(unaudited)

	For the three months ended March 31,
	2023			2022
Cash Flows From Operating Activities
Net income (loss)	$	778		$	(42,148	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		11,808			11,178
Amortization of deferred financing costs and other, net		681			701
Amortization of right-to-use lease assets		353			(9	)
Stock-based compensation		2,902			1,828
Deferred income taxes		1,533			(149	)
Change in fair value of contingent acquisition consideration		-			56
Gain on foreign currency		(152	)		(130	)
Write-off of unamortized issuance costs related to debt refinancing		-			9,004
Changes in operating assets and liabilities
Marine operating supplies and inventories		825			482
Prepaid expenses and other current assets		(2,323	)		(4,890	)
Unearned passenger revenues		4,532			29,563
Other long-term assets		(1,041	)		(261	)
Other long-term liabilities		(1	)		845
Accounts payable and accrued expenses		(17,478	)		(908	)
Operating lease liabilities		(359	)		-
Net cash provided by operating activities		2,058			5,162
Cash Flows From Investing Activities
Purchases of property and equipment		(6,425	)		(7,522	)
Sale of securities		15,163			-
Net cash provided by (used in) investing activities		8,738			(7,522	)
Cash Flows From Financing Activities
Proceeds from long-term debt		-			360,000
Repayments of long-term debt		(5,809	)		(334,684	)
Payment of deferred financing costs		(21	)		(10,781	)
Repurchase under stock-based compensation plans and related tax impacts		(266	)		(6	)
Net cash (used in) provided by financing activities		(6,096	)		14,529
Net increase in cash, cash equivalents and restricted cash		4,700			12,169
Cash, cash equivalents and restricted cash at beginning of period		116,024			172,693
Cash, cash equivalents and restricted cash at end of period	$	120,724		$	184,862
Supplemental disclosures of cash flow information:
Cash paid during the period:
Interest	$	16,593		$	3,613
Income taxes		89			58
Non-cash investing and financing activities:
Non-cash preferred stock dividend	$	1,069		$	1,298

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Lindblad Expeditions Holdings, Inc.

Notes to the Unaudited Condensed Consolidated Financial Statements

(Unaudited)

NOTE 1—BUSINESS AND BASIS OF PRESENTATION

Business

Lindblad Expeditions Holdings, Inc.’s and its consolidated subsidiaries’ (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 currently operates a fleet of ten owned expedition ships and five seasonal charter vessels under the Lindblad brand, operates land-based, eco-conscious expeditions and active nature focused tours under the Natural Habitat, Inc. (“Natural Habitat”) and Off the Beaten Path, LLC (“Off the Beaten Path”) brands, designs handcrafted walking tours under the Classic Journeys, LLC (“Classic Journeys”) brand and operates luxury cycling and adventure tours under the DuVine Cycling + Adventure Company (“DuVine”) brand.

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 primarily provides ship-based expeditions aboard 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 Galápagos Islands, Alaska, Baja California’s Sea of Cortez and Panama, and foster active engagement by guests. The Company has an alliance with National Geographic Partners, LLC (“National Geographic”), which 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 includes our four primarily land-based brands, Natural Habitat, DuVine, Off the Beaten Path and Classic Journeys.

● Natural Habitat specializes in conservation-oriented adventures, providing life-enhancing forays into the natural world that feature wild habitats and the animals and people who live there. Natural Habitat’s travel adventures provide unparalleled access to the planet's most extraordinary wildlife, landscapes and cultures. Natural Habitat’s unique itineraries include access to private wildlife reserves, remote corners of national parks and distinctive, secluded, and remote lodges and camps situated where wildlife viewing is best, such as polar bear tours in Churchill, Canada, Alaskan grizzly bear adventures, small-group Galápagos Islands tours and African safaris. Natural Habitat has partnered with World Wildlife Fund (“WWF”) to offer conservation travel, which is sustainable travel that contributes to the protection of nature and wildlife.

● DuVine specializes in luxury cycling and adventure tours around the world, providing immersive cultural and culinary experiences through thoughtfully designed itineraries led by expert local guides. Offerings primarily include tours throughout Europe, the United States and South America. Examples of DuVine’s tours include cycling and culinary tours throughout the Bordeaux and Burgundy wine making regions, Tuscan truffle, porcini and chestnut harvest regions, Napa and Sonoma wine making regions and lakes and volcanos throughout Patagonia. DuVine’s trips include top-quality gear and support and are tailored to riders of all abilities with an emphasis on exceptional food and wine experiences, along with boutique accommodations.

● Off the Beaten Path provides active small-group and private custom journeys around the world with a long-standing focus on offering unique adventures and experiences throughout United States (“U.S.”) National Parks. In addition to other U.S.-based adventures such as ranch vacations and fly-fishing expeditions, Off the Beaten Path’s small-group product offerings include international expeditions across Europe, Africa, Australia, Central and South America and the South Pacific, such as hiking through the Dolomites, family adventures in Patagonia’s Lake District and experiencing the culture of Morocco. All Off the Beaten Path expeditions are defined by a focus on outdoor activity led by experienced, friendly guides.

● Classic Journeys offers highly curated active small-group and private custom journeys centered around cinematic walks focused on engaging experiences that immerse guests into the history and culture of the places they are exploring and the people who live there, led by expert local guides in over 50 countries around the world. Classic Journeys’ tours are highlighted by luxury boutique accommodations and handcrafted itineraries curated through years of local connections such as experiencing Tuscan farmhouse kitchens, exploring Minoan ruins in Crete, or eating and dancing around a Berber encampment campfire.

6

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding unaudited interim financial information and include the accounts and transactions of the Company. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial statements for the periods presented. Operating results for the periods presented are not necessarily indicative of the results of operations to be expected for the full year due to seasonality and other factors. Certain information and footnote disclosures normally included in the consolidated financial statements in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC for interim reporting. All intercompany balances and transactions have been eliminated in these unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements and footnotes should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto for the year ended December 31, 2022 contained in the Company’s Annual Report on Form 10-K filed with the SEC on March 10, 2023 (the “2022 Annual Report”).

There have been no significant changes to the Company’s accounting policies from those disclosed in the 2022 Annual Report.

NOTE 2—EARNINGS PER SHARE

Earnings per Common Share

Earnings (loss) per common share is computed using the two-class method related to its Series A Redeemable Convertible Preferred Stock, par value of $0.0001 (“Preferred Stock”). Under the two-class method, undistributed earnings available to stockholders for the period are allocated on a pro rata basis to the common stockholders and to the holders of the Preferred Stock based on the weighted average number of common shares outstanding and number of shares that could be issued upon conversion of the Preferred Stock.

Diluted earnings per share is computed using the weighted average number of common shares outstanding and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the dilutive incremental common shares associated with restricted stock awards and shares issuable upon the exercise of stock options, using the treasury stock method, and the potential common shares that could be issued from conversion of the Preferred Stock, using the if-converted method. When a net loss occurs, potential common shares have an anti-dilutive effect on earnings per share and such shares are excluded from the diluted earnings per share calculation.

7

For the three months ended March 31, 2023 and 2022, the Company incurred net losses available to stockholders, therefore basic and diluted net loss per share are the same in each respective period. For the three months ended March 31, 2023, 0.8 million unvested restricted shares, 1.9 million shares issuable upon exercise of options and 7.6 million common shares issuable upon the conversion of the Preferred Stock were excluded from the calculation of dilutive potential common shares for the period as they were anti-dilutive. For the three months ended March 31, 2022, 0.8 million unvested restricted shares, 1.5 million shares issuable upon exercise of options and 9.3 million common shares issuable upon conversion of the Preferred Stock were excluded from the calculation of dilutive potential common shares for the period as they were anti-dilutive. 

Loss per share was calculated as follows:

	For the three months ended March 31,
	2023			2022
	(unaudited)
(In thousands, except share and per share data)
Net income (loss) attributable to Lindblad Expeditions Holdings, Inc.	$	621		$	(41,721	)
Series A redeemable convertible preferred stock dividend		1,069			1,298
Undistributed loss available to stockholders	$	(448	)	$	(43,019	)
Weighted average shares outstanding:
Total weighted average shares outstanding, basic		53,128,100			50,757,126
Total weighted average shares outstanding, diluted		53,128,100			50,757,126
Undistributed loss per share available to stockholders:
Basic	$	(0.01	)	$	(0.85	)
Diluted	$	(0.01	)	$	(0.85	)

NOTE 3—REVENUES

Customer Deposits and Contract Liabilities

The Company’s guests remit deposits in advance of tour embarkation. Guest deposits consist of guest ticket revenues as well as revenues from the sale of pre- and post-expedition excursions, hotel accommodations, land-based expeditions and certain air transportation. Guest deposits represent unearned revenues and are reported as unearned passenger revenues when received and are subsequently recognized as tour revenue over the duration of the expedition. Contract liabilities represent the Company's obligation to transfer goods or services to a customer for which the Company has received consideration from the customer. The Company does not consider guest deposits to be a contract liability until the guest no longer has the right, resulting from the passage of time, to cancel their reservation and receive a full refund. In conjunction with the suspension or rescheduling of expeditions, the Company provided guests an option of either a refund or future travel certificates, which in some instances exceeded the original cash deposit. The value of future travel certificates in excess of cash received is being recognized as a discount to tour revenues at the time the related expedition occurs. Future travel certificates are valued based on the Company’s expectation that a guest will travel again. As of  March 31, 2023 and December 31, 2022, the Company has recorded $249.6 million and $245.1 million, related to unearned passenger revenue, respectively.

	Contract Liabilities
(In thousands)
Balance as of December 31, 2022	$	178,198
Recognized in tour revenues during the period		(134,262	)
Additional contract liabilities in period		95,692
Balance as of March 31, 2023	$	139,628

8

The following table disaggregates our tour revenues by the sales channel it was derived from:

	For the three months ended March 31,
	2023			2022
Guest ticket revenue:		(unaudited)
Direct		45	%		45	%
National Geographic		14	%		16	%
Agencies		23	%		20	%
Affinity		7	%		9	%
Guest ticket revenue		89	%		90	%
Other tour revenue		11	%		10	%
Tour revenues		100	%		100	%

NOTE 4—FINANCIAL STATEMENT DETAILS

The following is a reconciliation of cash, cash equivalents and restricted cash to the statement of cash flows:

	For the three months ended March 31,
	2023		2022
(In thousands)		(unaudited)
Cash and cash equivalents	$	83,984	$	154,816
Restricted cash		36,740		30,046
Total cash, cash equivalents and restricted cash as presented in the statement of cash flows	$	120,724	$	184,862

Restricted cash consists of the following:

	As of March 31, 2023		As of December 31, 2022
(In thousands)		(unaudited)
Credit card processor reserves	$	20,737	$	20,400
Federal Maritime Commission and other escrow		14,739		6,882
Certificates of deposit and other restricted securities		1,264		1,565
Total restricted cash	$	36,740	$	28,847

Prepaid expenses and other current assets are as follows: 

	As of March 31, 2023		As of December 31, 2022
	(unaudited)
(In thousands)
Prepaid tour expenses	$	25,914	$	20,605
Other		18,187		21,173
Total prepaid expenses and other current assets	$	44,101	$	41,778

Accounts payable and accrued expenses are as follows:

	As of March 31, 2023		As of December 31, 2022
	(unaudited)
(In thousands)
Accrued other expense	$	34,578	$	54,418
Accounts payable		18,810		16,601
Total accounts payable and accrued expenses	$	53,388	$	71,019

9

NOTE 5—LONG-TERM DEBT

	As of March 31, 2023									As of December 31, 2022
					(unaudited)
(In thousands)	Principal			Deferred Financing Costs, net			Balance			Principal			Deferred Financing Costs, net			Balance
6.75% Notes	$	360,000		$	(8,440	)	$	351,560		$	360,000			(8,968	)		351,032
First Export Credit Agreement		91,569			(1,764	)		89,805			94,794			(1,829	)		92,965
Second Export Credit Agreement		107,485			(2,140	)		105,345			110,044			(2,207	)		107,837
Other		930			-			930			955			-			955
Total long-term debt		559,984			(12,344	)		547,640			565,793			(13,004	)		552,789
Less current portion		(23,308	)		-			(23,308	)		(23,337	)		-			(23,337	)
Total long-term debt, non-current	$	536,676		$	(12,344	)	$	524,332		$	542,456		$	(13,004	)	$	529,452

For the three months ended March 31, 2023 and 2022, $0.7 million and $0.5 million, respectively, of deferred financing costs were charged to interest expense.

6.75% Notes

On February 4, 2022, the Company issued $360.0 million aggregate principal amount of 6.75% senior secured notes due 2027 (the “Notes”) in a private offering. The Notes bear interest at a rate of 6.75% per year, and interest is payable semiannually in arrears on February 15 and August 15 of each year. The Notes will mature on February 15, 2027, subject to earlier repurchase or redemption. The Company used the net proceeds from the offering to prepay in full all outstanding borrowings under its prior credit agreement, including the term facility, Main Street Loan, and revolving credit facility, to pay any related premiums and to terminate in full its prior credit agreement and the commitments thereunder. The Notes are senior secured obligations of the Company and are guaranteed on a senior secured basis by the Company and certain of the Company’s subsidiaries (collectively, the “Guarantors”) and secured by first-priority pari passu liens, subject to permitted liens and certain exceptions, on substantially all the assets of the Company and the Guarantors. The Notes may be redeemed by the Company, at set redemption prices and premiums, plus accrued and unpaid interest, if any. 

The Notes contain covenants that, among other things, restrict the Company’s ability, and the ability of the Company’s restricted subsidiaries, to incur certain additional indebtedness and make certain dividend payments, distributions, investments and other restricted payments. These covenants are subject to a number of important exceptions and qualifications set forth in the Notes. 

Revolving Credit Facility 

On February 4, 2022, the Company entered into a senior secured revolving credit facility (the “Revolving Credit Facility”), which provides for an aggregate principal amount of commitments of $45.0 million, maturing February 2027, including a letter of credit sub-facility in an aggregate principal amount of up to $5.0 million. The obligations under the Revolving Credit Facility are guaranteed by the Company and the Guarantors and are secured by first-priority pari passu liens, subject to permitted liens and certain exceptions, on substantially all the assets of the Company and the Guarantors. Borrowings under the Revolving Credit Facility, if any, will bear interest at a rate per annum equal to, at the Company’s option, an adjusted Secured Overnight Financing Rate (“SOFR”) rate plus a spread or a base rate plus a spread.

The Revolving Credit Facility contains customary affirmative and negative covenants, as well as financial covenants and event of default provisions.

Senior Secured Credit Agreements

In January 2018, the Company entered into a senior secured credit agreement (the “First Export Credit Agreement”) making available to the Company a loan in an aggregate principal amount not to exceed $107.7 million for the purpose of providing financing for up to 80% of the purchase price of the Company’s new ice class vessel, the National Geographic Endurance, delivered in March 2020. The loan amortizes quarterly based on a twelve-year profile, with 70% maturing over twelve years from drawdown, and 30% maturing over five years from drawdown. In September 2021, the Company amended its First Export Credit Agreement to, among other things, waive the net leverage coverage ratio through March 2022 and annualize EBITDA used in its covenant calculation through December 31, 2022. During May 2022, the Company further amended its First Export Credit Agreement to extend the waiver of its net leverage coverage ratio from March 2022 through December 31, 2022. The First Export Credit Agreement, as amended, bears interest at a variable interest rate equal to three-month LIBOR plus a margin of 3.50% per annum, for an aggregated rate of 8.65% over the borrowing period covering March 31, 2023. 

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In April 2019, the Company entered into a senior secured credit agreement (the “Second Export Credit Agreement”), to make available to the Company and subject to certain conditions, a loan in an aggregate principal amount not to exceed $122.8 million for the purpose of providing pre- and post-delivery financing for up to 80% of the purchase price of the Company’s new expedition ice-class cruise vessel, the National Geographic Resolution, delivered in September 2021, and borrowed $122.8 million under the Second Export Credit Agreement. The loan amortizes quarterly based on a twelve-year profile, with 70% maturing over twelve years from final drawdown, and 30% maturing over five years from final drawdown. In September 2021, the Company amended its Second Export Credit Agreement to, among other things, waive the net leverage coverage ratio through March 2022 and annualize EBITDA used in its covenant calculation through December 31, 2022. During May 2022, the Company further amended its Second Export Credit Agreement to extend the waiver of its net leverage coverage ratio from March 2022 through December 31, 2022. The Second Export Credit Agreement, as amended, bears a variable interest rate equal to three-month LIBOR plus a margin of 3.50% per annum, for an aggregated rate of 8.46% over the borrowing period covering March 31, 2023.

Other

The Company’s Off the Beaten Path subsidiary has a loan maturing September 2023 for the purchase of guest transportation vehicles. The loan’s original principal was $0.3 million, is collateralized by the vehicles and bears an interest rate of 4.77% annually.

The Company’s Off the Beaten Path subsidiary has a $0.8 million loan under the Main Street Expanded Loan Facility, originated on December 11, 2020. For the first 12 months, interest was not payable and accrued to the principal balance, thereafter, monthly interest payments are required. The outstanding balance will amortize at a rate of 15% on both December 2023 and December 2024, with the remaining balance due December 2025. The loan bears a variable interest rate equal to one-month LIBOR plus a spread of 3.00%, or 7.86% as of March 31, 2023. This loan may be voluntarily prepaid at any time and from time to time, without premium or penalty, other than customary “breakage costs” and fees for LIBOR-based loans.

The Company’s DuVine subsidiary has a EUR 0.1 million State Assistance Loan related to the financial consequences of the COVID-19 pandemic, for the purpose of employment preservation. This loan matures August 2025, with monthly payments, and bears an interest rate of 0.53% annually. 

Covenants

The Company’s Notes, Revolving Credit Facility, First Export Credit Agreement and Second Export Credit Agreement contain financial and restrictive covenants that include among others, net leverage ratios, limits on additional indebtedness and limits on certain investments. On October 11, 2022, the Company amended the covenants of its Senior Secured Credit Agreements to use an annualized EBITDA calculation in its net leverage ratio covenant for the periods from March 31, 2023 through September 30, 2023. The Company was in compliance with its covenants in effect as of March 31, 2023.

NOTE 6—FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Derivative Instruments and Hedging Activities

The Company’s derivative assets and liabilities consist principally of foreign exchange forward contracts and interest rate caps and are carried at fair value based on significant observable inputs (Level 2 inputs). Derivatives entered into by the Company are typically executed over-the-counter and are valued using internal valuation techniques, as quoted market prices are not readily available. The valuation technique and inputs depend on the type of derivative and the nature of the underlying exposure. The Company principally uses discounted cash flows along with fair value models that primarily use market observable inputs. These models take into account a variety of factors including, where applicable, maturity, currency exchange rates, interest rate yield curves and counterparty credit risks.

Currency Risk. The Company uses currency exchange forward contracts to manage its exposure to changes in currency exchange rates associated with certain of its non-U.S. dollar denominated receivables and payables. The Company primarily economically hedges a portion of its current-year currency exposure to the Canadian and New Zealand dollars, the Brazilian Real, the South African Rand, the Euro and the British pound sterling. The fluctuations in the value of these forward contracts largely offset the impact of changes in the value of the underlying risk they economically hedge.

Interest Rate Risk. The Company previously used interest rate caps to manage the risk related to its previously existing variable rate corporate debt. The Company recorded the effective portion of changes in the fair value of its cash flow hedges to other comprehensive income (loss), net of tax, and subsequently reclassified these amounts into earnings in the period during which the hedged transaction was recognized. Any changes in fair values of hedges that are determined to be ineffective are immediately reclassified from accumulated other comprehensive income (loss) into earnings. 

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The Company held the following derivative instruments with absolute notional values as of March 31, 2023:

(In thousands)	Absolute Notional Value
Interest rate caps	$	100,000
Foreign exchange contracts		12,232

Estimated fair values (Level 2) of derivative instruments were as follows:

	As of March 31, 2023				As of December 31, 2022
	(unaudited)
(In thousands)	Fair Value, Asset Derivatives		Fair Value, Liability Derivatives		Fair Value, Asset Derivatives		Fair Value, Liability Derivatives
Derivative instruments not designated as cash flow hedging instruments:
Interest rate cap (a)	$	316	$	-	$	683	$	-
Foreign exchange forward (b)		-		434		-		572
Total	$	316	$	434	$	683	$	572

(a)	Recorded in prepaid expenses and other current assets.
(b)	Recorded in accounts payable and accrued expenses.

Changes in the fair value of the Company’s hedging instruments are recorded in accumulated other comprehensive income. The effects of derivatives recognized in the Company’s condensed consolidated financial statements were as follows:

	For the three months ended March 31,
(In thousands)	2023			2022
	(unaudited)
Derivative instruments not designated as cash flow hedging instruments:
Interest rate cap (a)	$	(367	)	$	(451	)
Foreign exchange forward (b)		152			130
Total	$	(215	)	$	(321	)

(a)	Recognized in interest expense, net. For the three months ended March 31, 2022, $0.6 million was reclassified from other comprehensive income (loss) to interest expense, net.
(b)	Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged and recognized in gain (loss) on foreign currency.

The carrying amounts of cash and cash equivalents, accounts payable and accrued expenses, approximate fair value due to the short-term nature of these instruments. The Company estimates the approximate fair value of its long-term debt as of March 31, 2023 to be $541.8 million based on the terms of the agreements and comparable market data as of March 31, 2023. As of March 31, 2023 and December 31, 2022, the Company had no other significant liabilities that were measured at fair value on a recurring basis.

NOTE 7—STOCKHOLDERS’ EQUITY

Stock Repurchase Plan

The Company’s Board of Directors approved a stock and warrant repurchase plan (“Repurchase Plan”) in November 2015 and increased the repurchase plan to $35.0 million in November 2016. The Repurchase Plan authorizes the Company to purchase, from time to time, the Company’s outstanding common stock and previously outstanding warrants. Any shares purchased will be retired. The Repurchase Plan has no time deadline and will continue until otherwise modified or terminated at the sole discretion of the Company’s Board of Directors. These repurchases exclude shares repurchased to settle statutory employee tax withholding related to the exercise of stock options and vesting of stock awards. The Company has cumulatively repurchased 875,218 shares of common stock for $8.3 million and 6,011,926 warrants for $14.7 million, since plan inception. The remaining balance for the Repurchase Plan was $12.0 million as of March 31, 2023.  

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Preferred Stock

In August 2020, the Company issued and sold 85,000 shares of Preferred Stock for $1,000 per share for gross proceeds of $85.0 million. The Preferred Stock has senior and preferential ranking to the Company’s common stock. The Preferred Stock is entitled to cumulative dividends of 6.00% per annum, and for the first two years the dividends were paid-in-kind. After the second anniversary of the issuance date, the dividends may be paid-in-kind or be paid in cash at the Company’s option. At any time after the third anniversary of the issuance, the Company  may, at its option, convert all, but not less than all, of the Preferred Stock into common stock if the closing price of shares of common stock is at least 150% of the conversion price for 20 out of 30 consecutive trading days. The Preferred Stock is convertible at any time, at the holder’s election, into a number of shares of common stock of the Company equal to the quotient obtained by dividing the then-current accrued value by the conversion price of $9.50. The Preferred Stock deferred issuance costs was $2.1 million as of March 31, 2023, recorded as reduction to preferred stock. The Company recorded accrued dividends for Preferred Stock of $1.1 million and $1.3 million for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, the 62,000 shares of Preferred Stock outstanding and accumulated dividends could be converted at the option of the holders into 7.6 million shares of the Company’s common stock.

NOTE 8—STOCK BASED COMPENSATION

The Company is authorized to issue up to 4.7 million shares of common stock under the 2021 Long-Term Incentive Plan (“the Plan”) which was approved by shareholders in September 2021. As of March 31, 2023, 2.9 million shares were available to be granted under the Plan.

The Company recorded stock-based compensation expense of $2.8 million and $1.8 million during the three months ended March 31, 2023 and 2022, respectively.

2022 Long-Term Incentive Compensation

During the three months ended March 31, 2023, the Company granted 273,656 restricted stock units (“RSUs”) with a weighted average grant price of $9.57. The RSUs will primarily vest equally over three years on the anniversary of the grant date, subject to the recipient’s continued employment or service with the Company on the applicable vesting date. The number of shares were determined based upon the closing price of our common stock on the date of the award.

During the three months ended March 31, 2023, the Company awarded 96,757 performance-based restricted share units (“PSUs”) with a weighted average grant price of $9.56. The PSUs generally vest three years following the date of grant based on the attainment of performance- or market-based goals, all of which are subject to a service condition. The Company does not deliver the shares associated with the PSUs to the employee, non-employee director or other service providers until the performance and vesting conditions are met. 

Options

During the three months ended March 31, 2023, the Company granted 500,000 options, with an average exercise price of $9.56. The options vest ratably over four years with a term of ten years. 

	Stock Option Grants
	2023
Stock price	$	9.56
Exercise price	$	9.56
Dividend yield		0.00	%
Expected Volatility		64.6	%
Risk-free interest rate		3.63	%
Expected term (in years)		6.25

As of March 31, 2023 and December 31, 2022, options to purchase an aggregate of 1.9 million and 1.4 million shares of the Company’s common stock, respectively, with a weighted average exercise price of $13.64 and $15.10, respectively, were outstanding. As of March 31, 2023, 388,000 options were exercisable.

Natural Habitat Contingent Arrangement

In connection with the 2016 acquisition of Natural Habitat, Mr. Bressler employment agreement, as amended, provides Mr. Bressler, President of Natural Habitat, with an equity incentive opportunity to earn an award of options based on the future financial performance of Natural Habitat, effective as of  December 31, 2025, subject to certain conditions. Mr. Bressler has a one-time right to elect an early option award of 50% at  December 31, 2023, subject to certain conditions. 

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NOTE 9—INCOME TAXES

As of March 31, 2023 and December 31, 2022, the Company had no unrecognized tax benefits recorded. The Company's effective tax rate for the three months ended March 31, 2023 was an expense of 66.5%, versus a benefit of 0.4% for the three months ended March 31, 2022. The effect tax rate for the three months ended March 31, 2023 was impacted by a $1.5 million discrete tax expense.

NOTE 10—COMMITMENTS AND CONTINGENCIES

Redeemable Non-Controlling Interest

The Company has controlling interests in its Natural Habitat, Off the Beaten Path, DuVine and Classic Journeys consolidated subsidiaries. The noncontrolling interests are subject to put/call agreements. The put options enable the minority holders, but do not obligate them, to sell the remaining interests to the Company. The Company has call options which enable it, but does not obligate it, to acquire the remaining interests in the subsidiaries, subject to certain dates, expirations and similar redemption value purchase measurements as the put options.

Since the redemption of the noncontrolling interests are not solely in the Company’s control, the Company is required to record the redeemable noncontrolling interest outside of stockholders’ equity but after its total liabilities. In addition, if it is probable that the instrument will become redeemable, as such solely due to the passage of time, the redeemable noncontrollable interest should be adjusted to the redemption value via one of two measurement methods. The Company elected the income classification-excess adjustment and accretion methods for recognizing changes in the redemption value of the put options. Under this methodology, a calculation of the present value of the redemption value is compared to the carrying value of the redeemable noncontrolling interest and the carrying value of the redeemable noncontrolling interest is adjusted to the redemption value’s present value. Any adjustments to the carrying value of the redeemable noncontrolling interest, up to the redemption value of the noncontrolling interest, are classified to retained earnings. Adjustments in excess of the redemption value of the noncontrolling interest, are treated as a decrease to net income available to common stockholders.

The redemption value of the put options were determined using a discounted cash flow model. The redemption values were adjusted to their present value using the Company’s weighted average cost of capital. 

The following is a rollforward of redeemable non-controlling interest:

	For the three months ended March 31,
(In thousands)	2023			2022
	(unaudited)
Beginning balance	$	27,886		$	10,626
Net income (loss) attributable to noncontrolling interest		157			(427	)
Redemption value adjustment of put option		(2,090	)		4,259
Distribution		(255	)		-
Ending balance	$	25,698		$	14,458

Royalty Agreement – National Geographic

The Company is party to an alliance and license agreement with National Geographic, which allows the Company to use the National Geographic name and logo. In return for these rights, the Company is charged a royalty fee. The royalty fee is included within selling and marketing expense. The fee is calculated based upon a percentage of certain ticket revenues less travel agent commission, including the revenues received from cancellation fees and any revenues received from the sale of pre- and post-expedition extensions. Royalty expense for the three months ended March 31, 2023 was $1.3 million, and was $1.2 million for the three months ended March 31, 2022.

The royalty balance payable to National Geographic as of March 31, 2023 and December 31, 2022 was $2.1 million and $1.8 million, respectively, and are included in accounts payable and accrued expenses.

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Royalty Agreement – World Wildlife Fund

Natural Habitat has a license agreement with WWF, which allows it to use the WWF name and logo. In return for these rights, Natural Habitat is charged a royalty fee and a fee based on annual gross sales. The fees are included within selling and marketing expense. This royalty fee expense was $0.2 million for the three months ended March 31, 2023 and  March 31, 2022.

Charter Commitments

From time to time, the Company enters into agreements to charter vessels onto which it holds its tours and expeditions. Future minimum payments on its charter agreements as of March 31, 2023 are as follows:

For the years ended December 31,	Amount
(In thousands)	(unaudited)
2023	$	10,870
2024		12,914
Total	$	23,784

NOTE 11—SEGMENT INFORMATION

The Company is primarily a specialty cruise and experiential travel operator with operations in two reportable segments, Lindblad and Land Experiences. The Company evaluates the performance of the business based largely on the results of its operating segments. The chief operating decision maker and management review operating results monthly, and base operating decisions on the total results at a consolidated level, as well as at a segment level. The reports provided to the Board of Directors are at a consolidated level and contain information regarding the separate results of both segments.

The Company evaluates the performance of its business segments based largely on tour revenues and operating income, without allocating other income and expenses, net, income taxes and interest expense, net. Operating results for the Company’s reportable segments were as follows:

	For the three months ended March 31,
	2023		2022
(In thousands)		(unaudited)
Tour revenues:
Lindblad	$	115,498	$	50,274
Land Experiences		27,897		17,572
Total tour revenues	$	143,395	$	67,846
Operating income (loss):
Lindblad	$	12,118	$	(33,569	)
Land Experiences		348		(676	)
Total operating income (loss)	$	12,466	$	(34,245	)

For the three months ended March 31, 2023 there was $2.5 million in intercompany tour revenues between the Lindblad and Land Experiences reportable segments, which were eliminated in consolidation. For the three months ended March 31, 2022, there was $1.6 of intercompany tour revenues between the Lindblad and Land Experiences reportable segments eliminated in consolidation.

Depreciation and amortization are included in segment operating income as shown below:

	For the three months ended March 31,
	2023		2022
(In thousands)		(unaudited)
Depreciation and amortization:
Lindblad	$	11,152	$	10,741
Land Experiences		656		437
Total depreciation and amortization	$	11,808	$	11,178

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The following table presents our total assets, intangibles, net and goodwill by segment:

(In thousands)	As of March 31, 2023		As of December 31, 2022
	(unaudited)
Total Assets:
Lindblad	$	628,968	$	662,683
Land Experiences		145,300		125,292
Total assets	$	774,268	$	787,975
Intangibles, net:
Lindblad	$	1,651	$	1,680
Land Experiences		9,109		9,539
Total intangibles, net	$	10,760	$	11,219
Goodwill:
Lindblad	$	-	$	-
Land Experiences		42,017		42,017
Total goodwill	$	42,017	$	42,017

NOTE 12—SUBSEQUENT EVENTS

In May 2023, the Company issued $275.0 million of 9.00% senior secured notes, maturing 2028 (the “2028 Notes”), with proceeds used primarily to prepay in full all outstanding borrowings under its existing export credit facilities. The 2028 Notes are guaranteed on a senior secured basis by the Company and certain of the Company’s subsidiaries, and collateralized by certain of the Company’s assets.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE RESULTS OF OPERATIONS AND FINANCIAL CONDITION

The following discussion and analysis addresses material changes in the financial condition and results of operations of the Company for the periods presented. This discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q (“Form 10-Q”), as well as the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 10, 2023 (the “2022 Annual Report”). Unless the context otherwise requires, in this Form 10-Q, “Company,” “Lindblad,” “we,” “us,” “our,” and “ours” refer to Lindblad Expeditions Holdings, Inc., and its subsidiaries.

Cautionary Note Regarding Forward-Looking Statements

Any statements in this Form 10-Q about our expectations, beliefs, plans, objectives, prospects, financial condition, assumptions or future events or performance are not historical facts and are “forward-looking statements” as that term is defined under the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expects,” “estimates,” “projects,” “positioned,” “strategy,” “outlook” and similar words. You should read the statements that contain these types of words carefully. Such forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what is expressed or implied in such forward-looking statements. There may be events in the future that we are not able to predict accurately or over which we have no control. Potential risks and uncertainties include, but are not limited to:

● events and conditions around the world, including war and other military actions, such as the current conflict between Russia and Ukraine, inflation, higher fuel prices, higher interest rates and other general concerns about the state of the economy or other events impacting the ability or desire of people to travel;

● suspended operations, cancelling or rescheduling of voyages and other potential disruptions to our business and operations related to the COVID-19 virus, the Russia-Ukraine conflict, the political unrest in Peru or another unexpected event;

● the impacts of inflation, the COVID-19 virus and/or the Russia-Ukraine conflict on our financial condition, liquidity, results of operations, cash flows, employees, plans and growth;

● increases in fuel prices, changes in fuels consumed and availability of fuel supply in the geographies in which we operate or in general; 

● the impacts of inflation and negative economic conditions or negative economic outlooks on the demand for expedition travel;

● the loss of key employees, our inability to recruit or retain qualified shoreside and shipboard employees and increased labor costs;

● the impact of delays or cost overruns with respect to anticipated or unanticipated drydock, maintenance, modifications or other required construction related to any of our vessels;

● unscheduled disruptions in our business due to travel restrictions, weather events, mechanical failures, pandemics or other events;

● changes adversely affecting the business in which we are engaged:

● management of our growth and our ability to execute on our planned growth, including our ability to successfully integrate acquisitions;

● our business strategy and plans;

● our ability to maintain or renew (on favorable terms or at all) our relationship with National Geographic and/or World Wildlife Fund;

● compliance with new and existing laws and regulations, including environmental regulations and travel advisories and restrictions;

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● compliance with the financial and/or operating covenants in our debt arrangements;

● the impact of severe or unusual weather conditions, including climate change, on our business;

● adverse publicity regarding the travel and cruise industry in general;

● loss of business due to competition;

● the inability to meet or achieve our sustainability related goals, aspirations, initiatives, and our public statements and disclosures regarding them;

● the result of future financing efforts; and 

● those risks discussed herein and in Item 1A. Risk Factors in our 2022 Annual Report.

We urge you not to place undue reliance on these forward-looking statements, which speak only as of the date of this Form 10-Q. We do not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or uncertainties after the date hereof or to reflect the occurrence of unanticipated events.

Business Overview

We provide expedition cruising and land-based adventure travel fostering a spirit of exploration and discovery, using itineraries featuring up-close encounters with wildlife and nature, history and culture and promote guest empowerment, human connections and interactivity. Our mission is to offer life-changing adventures around the world and pioneering innovative ways to allow our guests to connect with exotic and remote places. 

We currently operate a fleet of ten owned expedition ships and five seasonal charter vessels under the Lindblad Expeditions, LLC (“Lindblad”) brand. Each expedition ship is fully equipped with state-of-the-art tools for in-depth exploration and the majority of our expeditions involve travel to remote places, such as voyages to the Arctic, Antarctic, the Galápagos Islands, Alaska, Baja’s Sea of Cortez, the South Pacific, Costa Rica and Panama. We have a longstanding relationship with the National Geographic Society (“National Geographic”) dating back to 2004, which is based on a shared interest in exploration, research, technology and conservation. This relationship includes a co-selling, co-marketing and branding arrangement whereby our owned vessels carry the National Geographic name and National Geographic sells our expeditions through its internal travel division. We collaborate with National Geographic on voyage planning to enhance the guest experience by having National Geographic experts, including photographers, writers, marine biologists, naturalists, field researchers and film crews, join our expeditions. Guests are able to interface with these experts through lectures, excursions, dining and other experiences throughout their voyage.

We operate land-based nature adventure travel expeditions around the globe, with unique itineraries designed to offer intimate encounters with nature and the planet’s wild destinations and the animals and people who live there.

Natural Habitat, Inc. (“Natural Habitat”) provides eco-conscious expeditions and nature-focused, small-group experiences that include polar bear tours in Churchill, Canada, Alaskan grizzly bear adventures, small-group Galápagos Islands tours and African safaris. Natural Habitat has partnered with World Wildlife Fund (“WWF”) to offer conservation travel, which is sustainable travel that contributes to the protection of nature and wildlife. 

DuVine Cycling + Adventure Company (“DuVine”) provides intimate cycling adventures and travel experiences, led by expert guides, with a focus on connecting with local character and culture, including high-quality local cuisine and accommodations. International cycling tours include the exotic Costa Rican rainforests, the rocky coasts of Ireland and the vineyards of Spain, while cycling adventures in the United States include cycling beneath the California redwoods, pedaling through Vermont farmland and wine tastings in the world-class vineyards of Napa and Sonoma.

Off the Beaten Path, LLC (“Off the Beaten Path”) provides small group travel, led by local, experienced guides, with distinct focus on wildlife, hiking national parks and culture. Off the Beaten Path offerings include insider national park experiences in the Rocky Mountains, Desert Southwest, and Alaska, as well as unique trips across Europe, Africa, Australia, Central and South America and the South Pacific.

Classic Journeys, LLC (“Classic Journeys”) offers highly curated active small-group and private custom journeys centered around cinematic walks led by expert local guides in over 50 countries around the world. These walking tours are highlighted by luxury boutique accommodations and handcrafted itineraries that immerse guests into the history and culture of the places they are exploring and the people who live there.

We operate two segments including the Lindblad segment, which consists of the operations of our Lindblad brand, and the Land Experiences segment, consisting of our Natural Habitat, DuVine, Off the Beaten Path and Classic Journeys brands.

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2023 Highlights

During the first quarter we provided immersive expeditions to our guests across all of our ships including voyages to Antarctica, Patagonia, Baja California’s Sea of Cortez, the Galápagos Islands, Central America, Australia, New Zealand, the South Pacific and elsewhere and generated $143.4 million in revenue, $12.5 million in operating income and $27.2 million in Adjusted EBITDA (non-GAAP financial measure defined below). 

We have substantial advanced reservations for future travel with bookings for the full year 2023 45% ahead of the bookings for 2019 at the same point in 2019.

During May, we issued $275.0 million of 9.00% senior secured notes, maturing 2028, with proceeds used primarily to pay the outstanding borrowings under our existing export credit agreements. 

The discussion and analysis of our results of operations and financial condition are organized as follows:

● a description of certain line items and operational and financial metrics we utilize to assist us in managing our business;

● results and a comparable discussion of our consolidated and segment results of operations for the three months ended March 31, 2023 and 2022;

● a discussion of our liquidity and capital resources, including future capital and contractual commitments and potential funding sources; and

● a review of our critical accounting policies.

Financial Presentation

Description of Certain Line Items

Tour revenues

Tour revenues consist of the following:

● Guest ticket revenues recognized from the sale of guest tickets; and

● Other tour revenues from the sale of pre- or post-expedition excursions, hotel accommodations, air transportation to and from the ships and excursions, goods and services rendered onboard that are not included in guest ticket prices, trip insurance, and cancellation fees.

Cost of tours

Cost of tours includes the following:

● Direct costs associated with revenues, including cost of pre- or post-expedition excursions, hotel accommodations, and land-based expeditions, air and other transportation expenses, and cost of goods and services rendered onboard;

● Payroll costs and related expenses for shipboard and expedition personnel;

● Food costs for guests and crew, including complimentary food and beverage amenities for guests;

● Fuel costs and related costs of delivery, storage and safe disposal of waste; and

● Other tour expenses, such as land costs, port costs, repairs and maintenance, equipment expense, drydock, ship insurance, and charter hire costs.

Selling and marketing

Selling and marketing expenses include commissions, royalties and a broad range of advertising and promotional expenses.

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General and administrative

General and administrative expenses include the cost of shoreside vessel support, reservations and other administrative functions, including salaries and related benefits, credit card commissions, professional fees and rent.

Operational and Financial Metrics

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

The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. You should read this discussion and analysis of our financial condition and results of operations together with the condensed consolidated financial statements and the related notes thereto also included within.

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

The following metrics apply to our Lindblad segment:

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

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

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

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

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

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

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

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

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

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

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

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

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

Foreign Currency Translation

The U.S. dollar is the functional currency in our foreign operations and re-measurement adjustments and gains or losses resulting from foreign currency transactions are recorded as foreign exchange gains or losses in the condensed consolidated statements of operations.

Seasonality

Traditionally, our Lindblad brand tour revenues are mildly seasonal, historically larger in the first and third quarters. The seasonality of our operating results fluctuates due to our vessels being taken out of service for scheduled maintenance or drydocking, which is typically during nonpeak demand periods, in the second and fourth quarters. Our drydock schedules are subject to cost and timing differences from year-to-year due to the availability of shipyards for certain work, drydock locations based on ship itineraries, operating conditions experienced especially in the polar regions and the applicable regulations of class societies in the maritime industry, which require more extensive reviews periodically. Drydocking impacts operating results by reducing tour revenues and increasing cost of tours. Our Natural Habitat, DuVine, Off the Beaten Path and Classic Journeys brands are seasonal businesses, with the majority of Natural Habitat’s tour revenue recorded in the third and fourth quarters from its summer season departures and polar bear tours, while the majority of Off the Beaten Path, DuVine and Classic Journeys’ revenues recorded during the second and third quarters from their spring and summer season departures.

Results of Operations - Consolidated

	For the three months ended March 31,
(In thousands)	2023			2022			Change		%
Tour revenues	$	143,395		$	67,846		$	75,549		111	%
Cost of tours		72,050			57,947			14,103		24	%
General and administrative		26,419			20,637			5,782		28	%
Selling and marketing		20,652			12,329			8,323		68	%
Depreciation and amortization		11,808			11,178			630		6	%
Operating income (loss)	$	12,466		$	(34,245	)	$	46,711		136	%
Net income (loss)	$	778		$	(42,148	)	$	42,926		102	%
Undistributed loss per share available to stockholders:
Basic	$	(0.01	)	$	(0.85	)	$	0.84
Diluted	$	(0.01	)	$	(0.85	)	$	0.84

Comparison of the Three Months Ended March 31, 2023 to Three Months Ended March 31, 2022 — Consolidated

Tour Revenues

Tour revenues for the three months ended March 31, 2023 increased $75.5 million, to $143.4 million, compared to $67.8 million for the three months ended March 31, 2022. The Lindblad segment tour revenues increased by $65.2 million, and the Land Experiences segment increased $10.3 million, primarily due to the ramp of expeditions and trips, and higher pricing. 

Cost of Tours

Total cost of tours for the three months ended March 31, 2023 increased $14.1 million, or 24%, to $72.0 million, compared to $57.9 million for the three months ended March 31, 2022. The Lindblad segment cost of tours increased by $9.5 million, and the Land Experiences segment increased $4.6 million, primarily due to the ramp of expeditions and trips. 

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General and Administrative

General and administrative expenses for the three months ended March 31, 2023 increased $5.8 million, or 28%, to $26.4 million, compared to $20.6 million for the three months ended March 31, 2022. At the Lindblad segment, general and administrative expenses increased $3.3 million from the prior year period, primarily due to higher personnel costs associated with the ramp in operations and higher credit card commissions due to the strong booking environment. At the Land Experiences segment, general and administrative expenses increased $2.5 million, primarily due to increased personnel costs related to operating additional trips and higher credit card commissions due to the strong booking environment. 

Selling and Marketing

Selling and marketing expenses for the three months ended March 31, 2023 increased $8.3 million, or 68%, to $20.7 million, compared to $12.3 million for the three months ended March 31, 2022. At the Lindblad segment, selling and marketing expenses increased $6.3 million, primarily due to higher commissions related to the ramp in operations and increased marketing spend to drive future bookings. At the Land Experiences segment, selling and marketing expenses increased $2.0 million, primarily due to increased marketing spend to drive future bookings.

Depreciation and Amortization

Depreciation and amortization expenses for the three months ended March 31, 2023 increased $0.6 million, or 6%, to $11.8 million, compared to $11.2 million for the three months ended March 31, 2022.

Other Income (Expense)

Other expense for the three months ended March 31, 2023, increased $2.1 million to $10.1 million from $8.1 million for the three months ended March 31, 2022, primarily due to a $1.8 million increase in interest expense, primarily due to higher rates across our debt facilities.

Results of Operations — Segments

Selected information for our reportable segments is below. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

	For the three months ended March 31,
(In thousands)	2023		2022			Change		%
Tour revenues:
Lindblad	$	115,498	$	50,274		$	65,224		130	%
Land Experiences		27,897		17,572			10,325		59	%
Total tour revenues	$	143,395	$	67,846		$	75,549		111	%
Operating income (loss):
Lindblad	$	12,118	$	(33,569	)	$	45,687		136	%
Land Experiences		348		(676	)		1,024		151	%
Total operating income (loss)	$	12,466	$	(34,245	)	$	46,711		136	%
Adjusted EBITDA:
Lindblad	$	26,083	$	(20,981	)	$	47,064		224	%
Land Experiences		1,103		(239	)		1,342		562	%
Total adjusted EBITDA	$	27,186	$	(21,220	)	$	48,406		228	%

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Guest Metrics — Lindblad Segment

The following table sets forth our Available Guest Nights, Guest Nights Sold, Occupancy, Maximum Guests, Number of Guests and Voyages:

	For the three months ended March 31,
	2023			2022
Available Guest Nights		83,184			48,546
Guest Nights Sold		67,057			32,184
Occupancy		81	%		66	%
Maximum Guests		8,990			5,414
Number of Guests		7,354			3,661
Voyages		113			83

The following table shows the calculations of Gross and Net Yield. Gross Yield is calculated by dividing Tour Revenues by Available Guest Nights and Net Yield is calculated by dividing Net Revenue by Available Guest Nights:

Calculation of Gross and Net Yield per Available Guest Night	For the three months ended March 31,
(In thousands, except for Available Guest Nights, Gross and Net Yield per Available Guest Night)	2023			2022
Guest ticket revenues	$	102,614		$	45,502
Other tour revenue		12,884			4,772
Tour Revenues		115,498			50,274
Less: Commissions		(7,816	)		(4,405	)
Less: Other tour expenses		(7,458	)		(9,989	)
Net Yield	$	100,224		$	35,880
Available Guest Nights		83,184			48,546
Gross Yield per Available Guest Night	$	1,388		$	1,036
Net Yield per Available Guest Night		1,205			739

The following table reconciles operating income to our Net Yield Guest Metric for the Lindblad Segment:

	For the three months ended March 31,
(In thousands)	2023			2022
Operating income (loss)	$	12,118		$	(33,569	)
Cost of tours		57,095			47,571
General and administrative		18,566			15,248
Selling and marketing		16,567			10,283
Depreciation and amortization		11,152			10,741
Less: Commissions		(7,816	)		(4,405	)
Less: Other tour expenses		(7,458	)		(9,989	)
Net Yield	$	100,224		$	35,880

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The following table shows the calculations of Gross and Net Cruise Costs:

Calculation of Gross and Net Cruise Cost	For the three months ended March 31,
(In thousands, except for Available Guest Nights, Gross and Net Cruise Cost per Avail. Guest Night)	2023			2022
Cost of tours	$	57,095		$	47,571
Plus: Selling and marketing		16,567			10,283
Plus: General and administrative		18,566			15,248
Gross Cruise Cost		92,228			73,102
Less: Commissions		(7,816	)		(4,405	)
Less: Other tour expenses		(7,458	)		(9,989	)
Net Cruise Cost		76,954			58,708
Less: Fuel Expense		(8,351	)		(5,924	)
Net Cruise Cost Excluding Fuel		68,603			52,784
Non-GAAP Adjustments:
Stock-based compensation		(2,803	)		(1,828	)
Other		(10	)		(19	)
Adjusted Net Cruise Cost Excluding Fuel	$	65,790		$	50,937
Adjusted Net Cruise Cost	$	74,141		$	56,861
Available Guest Nights		83,184			48,546
Gross Cruise Cost per Available Guest Night	$	1,109		$	1,506
Net Cruise Cost per Available Guest Night		925			1,209
Net Cruise Cost Excluding Fuel per Available Guest Night		825			1,087
Adjusted Net Cruise Cost Excluding Fuel per Available Guest Night		791			1,049
Adjusted Net Cruise Cost per Available Guest Night		891			1,171

Comparison of Three Months Ended March 31, 2023 to Three Months Ended March 31, 2022 at the Lindblad Segment

Tour Revenues

Tour revenues for the three months ended March 31, 2023 increased $65.2 million to $115.5 million, compared to $50.3 million for the three months ended March 31, 2022. The 130% increase in 2023 was driven by higher guest ticket revenues primarily from an increase in available guest nights and from higher pricing and occupancy compared with the first quarter of 2022. 

Operating Income

We generated $12.1 million of operating income for the three months ended March 31, 2023, compared to a $33.6 operating loss for the three months ended March 31, 2022, primarily due to the increase in tour revenues, partially offset by higher cost of tours and personnel costs due to the ramp in operations, increased commissions related to the revenue and bookings growth and increased marketing spend to support future growth initiatives.

Comparison of Three Months Ended March 31, 2023 to Three Months Ended March 31, 2022 at the Land Experiences Segment

Tour Revenues

Tour revenues for the three months ended March 31, 2023 increased $10.3 million to $27.9 million compared to $17.6 million for the three months ended March 31, 2022 primarily as a result of operating additional trips during the first quarter 2023 and higher pricing.

Operating Income 

We generated $0.3 million of operating income for the three months ended March 31, 2023, compared to an operating loss of $0.7 million for the three months ended March 31, 2022, primarily due to the increase in tour revenue, partially offset by higher operating and personnel costs related to operating additional departures, increased commissions related to the revenue and bookings growth and increased marketing spend to support future growth initiatives.

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Adjusted EBITDA — Consolidated

The following table outlines the reconciliation of net loss to consolidated Adjusted EBITDA. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Consolidated	For the three months ended March 31,
(In thousands)	2023			2022
Net income (loss)	$	778		$	(42,148	)
Interest expense, net		10,467			8,715
Income tax expense (benefit)		1,543			(149	)
Depreciation and amortization		11,808			11,178
Gain on foreign currency		(152	)		(130	)
Other income		(170	)		(533	)
Stock-based compensation		2,902			1,828
Other		10			19
Adjusted EBITDA	$	27,186		$	(21,220	)

The following tables outline the reconciliation for each reportable segment from operating income to Adjusted EBITDA.

Lindblad Segment	For the three months ended March 31,
(In thousands)	2023		2022
Operating income (loss)	$	12,118	$	(33,569	)
Depreciation and amortization		11,152		10,741
Stock-based compensation		2,803		1,828
Other		10		19
Adjusted EBITDA	$	26,083	$	(20,981	)

Land Experiences Segment	For the three months ended March 31,
(In thousands)	2023		2022
Operating income (loss)	$	348	$	(676	)
Depreciation and amortization		656		437
Stock-based compensation		99		-
Adjusted EBITDA	$	1,103	$	(239	)

Liquidity and Capital Resources

As of March 31, 2023, the Company had $84.0 million in unrestricted cash and cash equivalents and $36.7 million in restricted cash primarily related to deposits on future travel originating from U.S. ports and credit card reserves.

As of March 31, 2023, we had $560.0 million in long-term debt obligations, including the current portion of long-term debt. We believe that our cash on hand and expected future operating cash inflows will be sufficient to fund operations, debt service requirements and necessary capital expenditures. 

Sources and Uses of Cash for the Three Months Ended March 31, 2023 and 2022

Net cash provided by operating activities was $2.1 million for the three months ended March 31, 2023 compared to $5.2 million for the same period in 2022. The $3.1 million decrease is primarily due to higher costs during 2023 as we returned all vessels to operations. 

Net cash provided by investing activities was $8.7 million for the three months ended March 31, 2023 compared to $7.5 million used in investing activities in the same period in 2022. 2023 primarily included divesting of marketable securities, partially offset by vessel capital expenditures, while 2022 primarily included routine capital vessel maintenance across the fleet and renovations to the National Geographic Islander II for its launch during the third quarter of 2022.

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Net cash used in financing activities was $6.1 million for the three months ended March 31, 2023 compared to $14.5 million provided by financing activities for the same period in 2022. 2023 primarily included repayments under our export credit agreements, while 2022 primarily included the issuance of new senior secured notes which were used to repay the prior credit agreement, including the term facility, the Main Street Loan and the revolving facility.

Funding Sources

Debt Facilities 

6.75% Notes

On February 4, 2022, we issued $360.0 million aggregate principal amount of 6.75% senior secured notes due 2027 (the “Notes”) in a private offering. The Notes bear interest at a rate of 6.75% per year and interest is payable semiannually in arrears on February 15 and August 15 of each year. The Notes will mature on February 15, 2027, subject to earlier repurchase or redemption. We used the net proceeds from the offering to prepay in full all outstanding borrowings under our prior credit agreement, including the term facility, Main Street Loan, and revolving credit facility, to pay any related premiums and to terminate in full our prior credit agreement and the commitments thereunder. The Notes are senior secured obligations and are guaranteed on a senior secured basis by us and certain of our subsidiaries (collectively, the “Guarantors”) and secured by first-priority pari passu liens, subject to permitted liens and certain exceptions, on substantially all of our and the Guarantors’ assets. We may redeem the Notes at set redemption prices and premiums, plus accrued and unpaid interest, if any. 

The Notes contain covenants that, among other things, restrict our ability and the ability of our restricted subsidiaries to incur certain additional indebtedness and make certain dividend payments, distributions, investments and other restricted payments. These covenants are subject to a number of important exceptions and qualifications set forth in the Notes. 

Revolving Credit Facility

On February 4, 2022, we entered into a senior secured revolving credit facility (the “Revolving Credit Facility”), which provides for an aggregate principal amount of commitments of $45.0 million, maturing February 2027, including a letter of credit sub-facility in an aggregate principal amount of up to $5.0 million. The obligations under the Revolving Credit Facility are guaranteed by us and the Guarantors and are secured by first-priority pari passu liens, subject to permitted liens and certain exceptions, on substantially all the assets of the Company and the Guarantors. Borrowings under the Revolving Credit Facility, if any, will bear interest at a rate per annum equal to, at our option, an adjusted SOFR rate plus a spread or a base rate plus a spread.

The Revolving Credit Facility contains customary affirmative and negative covenants, as well as financial covenants and event of default provisions. 

Senior Secured Credit Agreements

Our first senior secured credit agreement (the “First Export Credit Agreement”) made available a loan for the purpose of providing financing for up to 80% of the purchase price of our new polar ice class vessel, the National Geographic Endurance. During March 2020, upon delivery, we borrowed $107.7 million under the First Export Credit Agreement for the final contracted payment of the National Geographic Endurance.

Our second senior secured credit agreement (the “Second Export Credit Agreement”) made available a loan for the purpose of providing pre- and post-delivery financing for up to 80% of the purchase price of the National Geographic Resolution. We borrowed $122.8 million under the Second Export Credit Agreement, drawing approximately $30.5 million in 2019, $30.6 million in 2020 and $61.7 million in 2021, with the ship delivered in September 2021. 

The First Export Credit Agreement, as amended, bears interest at a variable interest rate equal to three-month LIBOR plus a spread of 3.50% per annum, or 8.65% over the borrowing period covering March 31, 2023. The Second Export Credit Agreement, as amended, bears a variable interest rate equal to three-month LIBOR plus a spread of 3.50% per annum, or 8.46% over the borrowing period covering March 31, 2023. On October 11, 2022, we amended the covenants of our export credit agreements to use an annualized EBITDA calculation in our net leverage ratio covenant for the periods from March 31, 2023 through September 30, 2023. We were in compliance with our covenants in effect as of March 31, 2023. 

During April 2023, we issued $275.0 million of 9.00% senior secured notes, maturing 2028, with proceeds used primarily to pay the outstanding borrowings under our First and Second Export Credit Agreements. The senior secured notes are guaranteed on a senior secured basis by us and certain of our subsidiaries and are collateralized by certain of our assets.

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Other

Our Off the Beaten Path subsidiary has a loan maturing September 2023 for the purchase of guest transportation vehicles. The loan’s original principal was $0.3 million, is collateralized by the vehicles and bears an annual interest rate of 4.77%.

Our Off the Beaten Path subsidiary has a $0.8 million loan under the Main Street Expanded Loan Facility, originated on December 11, 2020. The outstanding balance will amortize at a rate of 15% on both December 2023 and December 2024, with the remaining balance due December 2025. The loan bears a variable interest rate equal to one-month LIBOR plus a spread of 3.00%, or 7.86% as of March 31, 2023. This loan may be voluntarily prepaid at any time and from time to time, without premium or penalty, other than customary “breakage costs” and fees for LIBOR-based loans.

Our DuVine subsidiary has a EUR 0.1 million State Assistance Loan related to the financial consequences of the COVID-19 pandemic, for the purpose of employment preservation. This loan matures August 2025, with monthly payments, and bears an annual interest rate of 0.53%. 

Equity

Preferred Stock

In August 2020, we issued and sold 85,000 shares of Series A Redeemable Convertible Preferred Stock, par value of $0.0001, (“Preferred Stock”) for $1,000 per share for gross proceeds of $85.0 million. As of March 31, 2023, 62,000 shares of Preferred Stock were outstanding. The Preferred Stock has senior and preferential ranking to our common stock. The Preferred Stock is entitled to cumulative dividends of 6.00% per annum, and for the first two years, the dividends were paid-in-kind. After the second anniversary of the issuance date, the dividends may be paid-in-kind or be paid in cash at our option. The Preferred Stock is convertible at any time, at the holder’s election, into a number of shares of our common stock equal to the quotient obtained by dividing the then-current accrued value by the conversion price of $9.50. At the six-year anniversary of the closing date, each investor has the right to request that we repurchase their Preferred Stock, and any Preferred Stock not requested to be repurchased shall be converted into our common shares equal to the quotient obtained by dividing the then-current accrued value by the conversion price. As of March 31, 2023, the outstanding Preferred Stock and accumulated dividends could be converted, at the option of the holders, into approximately 7.6 million shares of our common stock. 

Funding Needs

We generally rely on a combination of cash flows provided by operations and the incurrence of additional debt to fund obligations. A vast majority of guest ticket receipts are collected in advance of the applicable expedition date. These advance passenger receipts remain a current liability until the expedition date, and the cash generated from these advance receipts is used interchangeably with cash on hand from other cash from operations. The cash received as advanced receipts can be used to fund operating expenses for the applicable future expeditions or otherwise, pay down debt, make long-term investments or any other use of cash. Traditionally we run a working capital deficit due primarily to a large balance of unearned passenger revenues. As of March 31, 2023, we had a working capital deficit of $152.1 million, and as of December 31, 2022, we had a working capital deficit of $157.8 million. 

Critical Accounting Policies

Our preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. For a detailed discussion of our Critical Accounting Policies, please see our 2022 Annual Report, where we have discussed those policies and estimates that we believe are critical and require the use of complex judgment in their application. There have been no significant changes to our accounting policies from those disclosed in the 2022 Annual Report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our exposure to market risks from the information set forth in the “Quantitative and Qualitative Disclosures About Market Risk” sections contained in our 2022 Annual Report.

We are exposed to a market risk for interest rates related to our variable rate debt instruments. We assess our market risks based on changes in interest rates utilizing a sensitivity analysis that measures the potential impact on earnings and cash flows based on a hypothetical 100 basis point change in interest rates. For additional information regarding our long-term borrowings see Note 5 to our Condensed Consolidated Financial Statements included herein. Based on our March 31, 2023 outstanding variable rate debt balance, a hypothetical 100 basis point increase in LIBOR interest rates related to our variable interest rate debt instruments would impact our annual interest expense by approximately $2.0 million.

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ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Based on an evaluation under the supervision and with the participation of the Company’s management, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) were effective as of March 31, 2023 to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. 

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting that occurred during the quarter covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART 2. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is involved in various claims, legal actions and regulatory proceedings arising from time to time in the ordinary course of business. We have protection and indemnity insurance that would be expected to cover any damages.

ITEM 1A. RISK FACTORS

We operate in a rapidly changing environment that involves a number of risks that could materially affect our business, financial condition or future results, some of which are beyond our control. The risks and uncertainties that we believe are most important for you to consider are discussed under the heading “Risk Factors” in the 2022 Annual Report.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Recent Sales by the Company of Unregistered Securities

There were no unregistered sales of equity securities during the quarter ended March 31, 2023.

Stock Repurchase Plan

Our Board of Directors approved a stock and warrant repurchase plan (“Repurchase Plan”) in November 2015 and increased the repurchase plan to $35.0 million in November 2016. The Repurchase Plan authorizes us to purchase from time to time our outstanding common stock and our previously outstanding warrants. Any shares and warrants purchased will be retired. The Repurchase Plan has no time deadline and will continue until otherwise modified or terminated at the sole discretion of our Board of Directors. These repurchases exclude shares repurchased to settle statutory employee tax withholding related to the exercise of stock options and vesting of stock awards. We have cumulatively repurchased 875,218 shares of common stock for $8.3 million and 6,011,926 warrants for $14.7 million, since plan inception. All repurchases were made using cash resources. The balance for the Repurchase Plan was $12.0 million as of March 31, 2023. 

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Repurchases of Securities

The following table represents information with respect to shares of common stock withheld from vesting's of stock-based compensation awards for employee income tax withholding for the periods indicated:

Period	Total number of shares purchased		Average price paid per share		Dollar value of shares purchased as part of publicly announced plans or programs		Maximum dollar value of warrants and shares that may be purchased under approved plans or programs
January 1 through January 31, 2023		716	$	10.70	$	-	$	11,974,787
February 1 through February 28, 2023		307		12.34		-		11,974,787
March 1 through March 31, 2023		36,303		9.52		-		11,974,787
Total		37,326			$	-

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

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ITEM 6. EXHIBITS

Number	Description	Included	Form	Filing Date
4.1	FIRST SUPPLEMENTAL INDENTURE, dated as of May 2, 2023, by and among Lindblad Expeditions, LLC, the other parties listed as New Guarantors and Wilmington Trust, National Association, as trustee.	Herewith
31.1	Certification of Chief Executive Officer of Lindblad Expeditions Holdings, Inc. pursuant to Rule 13a-14(a) or Rule 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended.	Herewith
31.2	Certification of Chief Financial Officer of Lindblad Expeditions Holdings, Inc. pursuant to Rule 13a-14(a) or Rule 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended.	Herewith
32.1	Certification of Chief Executive Officer of Lindblad Expeditions Holdings, Inc. pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Herewith
32.2	Certification of Chief Financial Officer of Lindblad Expeditions Holdings, Inc. pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Herewith
101.INS	Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)	Herewith
101.SCH	Inline XBRL Taxonomy Extension Schema Document	Herewith
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	Herewith
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document	Herewith
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document	Herewith
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document	Herewith
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

30

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on May 3, 2023.

LINDBLAD EXPEDITIONS HOLDINGS, INC.
(Registrant)
By	/s/ Dolf Berle
	Dolf Berle
	Chief Executive Officer
	(Principal Executive Officer)
By	/s/ Craig Felenstein
	Craig Felenstein
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

31

EX-4.1

Exhibit 4.1

FIRST SUPPLEMENTAL INDENTURE

FIRST SUPPLEMENTAL INDENTURE, dated as of May 2, 2023 (this “First Supplemental Indenture”), by and among Lindblad Expeditions, LLC (the “Issuer”), the other parties listed as New Guarantors on the signature pages hereto (each, a “New Guarantor” and, collectively, the “New Guarantors”) and Wilmington Trust, National Association, as trustee (in such capacity, the “Trustee”).

W I T N E S E T H

WHEREAS, the Issuer, the Trustee and the other parties thereto have heretofore executed and delivered an Indenture, dated as of February 4, 2022 (as amended, supplemented or otherwise modified from time to time, the “Indenture”), providing for the issuance by the Issuer of $360,000,000 aggregate principal amount of 6.750% Senior Secured Notes due 2027 (the “Notes”);

WHEREAS, pursuant to Section 9.01 of the Indenture, the Issuer and the Trustee are authorized to execute and deliver this First Supplemental Indenture; and

WHEREAS, all necessary acts have been done to make this First Supplemental Indenture a legal, valid and binding agreement of each New Guarantor in accordance with the terms of this First Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

ARTICLE I
DEFINITIONS

SECTION 1.1    Capitalized Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

ARTICLE II
AGREEMENT TO BE BOUND

SECTION 2.1    Agreement to Guarantee. Each New Guarantor acknowledges that it has received and reviewed a copy of the Indenture and all other documents it deems necessary to review in order to enter into this First Supplemental Indenture, and acknowledges and agrees to (i) join and become a party to the Indenture as indicated by its signature below; (ii) be bound by the Indenture, as of the date hereof, as if made by, and with respect to, each signatory hereto; and (iii) perform all obligations and duties required of a Guarantor pursuant to the Indenture. Each New Guarantor hereby agrees to provide a Note Guarantee on the terms and subject to the conditions set forth in the Indenture, including, but not limited to, Article Ten thereof.

SECTION 2.2    Execution and Delivery. Each New Guarantor agrees that the Note Guarantee shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of such Note Guarantee on the Notes.

ARTICLE III
MISCELLANEOUS

SECTION 3.1    Governing Law. THIS FIRST SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

SECTION 3.2    Severability. In case any provision in this First Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

SECTION 3.3    Ratification. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This First Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder heretofore or hereafter shall be bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this First Supplemental Indenture.

SECTION 3.4    Counterparts. The parties may sign any number of copies of this First Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. One signed copy is enough to prove this First Supplemental Indenture. The exchange of copies of this First Supplemental Indenture and of signature pages by facsimile or other electronic transmission shall constitute effective execution and delivery of this First Supplemental Indenture as to the parties hereto. Signatures of the parties hereto transmitted by facsimile or other electronic transmission shall be deemed to be their original signatures for all purposes.

SECTION 3.5    Effect of Headings. The headings herein are convenience of reference only and shall not affect the construction hereof.

SECTION 3.6    The Trustee. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this First Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by each New Guarantor.

SECTION 3.7    Benefits Acknowledged. Each New Guarantor’s Note Guarantee is subject to the terms and conditions set forth in the Indenture. Each New Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this First Supplemental Indenture and that the guarantee and waivers made by it pursuant to its Note Guarantee and this First Supplemental Indenture are knowingly made in contemplation of such benefits.

SECTION 3.8    Successors. All agreements of each New Guarantor in this First Supplemental Indenture shall bind its successors, except as otherwise provided in this First Supplemental Indenture. All agreements of the Trustee in this First Supplemental Indenture shall bind its successors.

2

IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed, all as of the date first above written.

ISSUER:

LINDBLAD EXPEDITIONS, LLC

By:         /s/ Craig Felenstein          
               Name: Craig Felenstein         
               Title: Chief Financial Officer

NEW GUARANTORS:

LEX ENDURANCE LTD.

By:         /s/ Craig Felenstein          
               Name: Craig Felenstein         
               Title: Chief Financial Officer

LINDBLAD BLUEWATER II LIMITED

By:         /s/ Craig Felenstein         
               Name: Craig Felenstein         
               Title: Chief Financial Officer

TRUSTEE:

WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee

By:         /s/ Sarah Vilhauer          
               Name: Sarah Vilhauer         
               Title: Assistant Vice President

3

EX-31.1

Exhibit 31.1

Certification

I, Dolf Berle, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Lindblad Expeditions Holdings, Inc. (the “Registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as identified in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
	a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
5.	The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
	a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
	b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: May 3, 2023

/s/ Dolf Berle

Dolf Berle

Chief Executive Officer 

EX-31.2

Exhibit 31.2

Certification

I, Craig I. Felenstein, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Lindblad Expeditions Holdings, Inc. (the “Registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as identified in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
	a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
5.	The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
	a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
	b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: May 3, 2023

/s/ Craig I. Felenstein

Craig I. Felenstein

Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of CEO Pursuant To

18 U.S.C. Section 1350,

As Adopted Pursuant To

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q for the period ended March 31, 2023 of Lindblad Expeditions Holdings, Inc., a Delaware corporation (the “Company”), as filed with the Securities and Exchange commission on the date hereof (the “Report”), I, Dolf Berle, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, based on my knowledge:

1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 3, 2023
	/s/ Dolf Berle
	Dolf Berle
	Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification of CFO Pursuant To

18 U.S.C. Section 1350,

As Adopted Pursuant To

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q for the period ended March 31, 2023 of Lindblad Expeditions Holdings, Inc., a Delaware corporation (the “Company”), as filed with the Securities and Exchange commission on the date hereof (the “Report”), I, Craig I. Felenstein, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, based on my knowledge:

1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 3, 2023
	/s/ Craig I. Felenstein
	Craig I. Felenstein
	Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2023	Apr. 24, 2023
Document Information [Line Items]
Entity Central Index Key	0001512499
Entity Registrant Name	LINDBLAD EXPEDITIONS HOLDINGS, INC.
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-35898
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-4749725
Entity Address, Address Line One	96 Morton Street, 9th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10014
City Area Code	212
Local Phone Number	261-9000
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	LIND
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		53,251,533

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 83,984	$ 87,177
Restricted cash	36,740	28,847
Short-term securities	0	13,591
Marine operating supplies	8,880	9,961
Inventories	2,221	1,965
Prepaid expenses and other current assets	44,101	41,778
Total current assets	175,926	183,319
Property and equipment, net	534,492	539,406
Goodwill	42,017	42,017
Intangibles, net	10,760	11,219
Deferred tax asset	2,121	2,167
Right-to-use lease assets	3,992	4,345
Other long-term assets	4,960	5,502
Total assets	774,268	787,975
Current Liabilities:
Unearned passenger revenues	249,633	245,101
Accounts payable and accrued expenses	53,388	71,019
Long-term debt - current	23,308	23,337
Lease liabilities - current	1,683	1,663
Total current liabilities	328,012	341,120
Long-term debt, less current portion	524,332	529,452
Deferred tax liabilities	1,486	0
Lease liabilities	2,582	2,961
Other long-term liabilities	89	88
Total liabilities	856,501	873,621
Commitments and contingencies
Redeemable noncontrolling interests	25,698	27,886
STOCKHOLDERS’ DEFICIT
Preferred stock, $0.0001 par value, 1,000,000 shares authorized; 62,000 Series A shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	0	0
Common stock, $0.0001 par value, 200,000,000 shares authorized; 53,243,007 and 53,177,437 issued, 53,175,702 and 53,110,132 outstanding as of March 31, 2023 and December 31, 2022, respectively	5	5
Additional paid-in capital	86,741	83,850
Accumulated deficit	(264,888)	(266,530)
Total stockholders' deficit	(178,142)	(182,675)
Total liabilities, mezzanine equity and stockholders' deficit	774,268	787,975
Series A Redeemable Convertible Preferred Stock [Member]
Current Liabilities:
Commitments and contingencies	$ 70,211	$ 69,143

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	62,000	62,000
Preferred stock, shares outstanding (in shares)	62,000	62,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	53,243,007	53,177,437
Common stock, shares outstanding (in shares)	53,175,702	53,110,132
Series A Redeemable Convertible Preferred Stock [Member]
Temporary equity, shares authorized (in shares)	165,000	165,000
Temporary equity, shares issued (in shares)	62,000	62,000
Temporary equity, shares outstanding (in shares)	62,000	62,000
Preferred stock, par value (in dollars per share)	$ 0.0001
Preferred stock, shares outstanding (in shares)	62,000

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Tour revenues	$ 143,395	$ 67,846
Operating expenses:
Cost of tours	72,050	57,947
General and administrative	26,419	20,637
Selling and marketing	20,652	12,329
Depreciation and amortization	11,808	11,178
Total operating expenses	130,929	102,091
Operating income (loss)	12,466	(34,245)
Other (expense) income:
Interest expense, net	(10,467)	(8,715)
Gain on foreign currency	152	130
Other income	170	533
Total other expense	(10,145)	(8,052)
Income (loss) before income taxes	2,321	(42,297)
Income tax expense (benefit)	1,543	(149)
Net income (loss)	778	(42,148)
Net income (loss) attributable to noncontrolling interest	157	(427)
Net income (loss) attributable to Lindblad Expeditions Holdings, Inc.	621	(41,721)
Series A redeemable convertible preferred stock dividend	1,069	1,298
Net loss available to stockholders	$ (448)	$ (43,019)
Weighted average shares outstanding
Basic (in shares)	53,128,100	50,757,126
Diluted (in shares)	53,128,100	50,757,126
Undistributed loss per share available to stockholders:
Basic (in dollars per share)	$ (0.01)	$ (0.85)
Diluted (in dollars per share)	$ (0.01)	$ (0.85)

XML

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net income (loss)	$ 778	$ (42,148)
Other comprehensive income:
Reclassification adjustment, net of tax	0	634
Total other comprehensive income	0	634
Total comprehensive income (loss)	778	(41,514)
Less: comprehensive income (loss) attributive to non-controlling interest	157	(427)
Comprehensive income (loss) attributable to stockholders	$ 621	$ (41,087)

XML

Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Dec. 31, 2021	50,800,786
Balance at Dec. 31, 2021	$ 5	$ 58,485	$ (136,439)	$ (634)	$ (78,583)
Stock-based compensation	$ 0	1,828	0	0	1,828
Net activity related to equity compensation plans (in shares)	132,685
Net activity related to equity compensation plans	$ 0	(6)	0	0	(6)
Redeemable noncontrolling interest	0	0	(4,259)	0	(4,259)
Series A preferred stock dividend	0	0	(1,298)	0	(1,298)
Net income attributable to Lindblad Expeditions Holdings, Inc.	0	0	(41,721)	0	(41,721)
Other comprehensive income (loss), net	$ 0	0	0	634	634
Balance (in shares) at Mar. 31, 2022	50,933,471
Balance at Mar. 31, 2022	$ 5	60,307	(183,717)	$ 0	(123,405)
Balance (in shares) at Dec. 31, 2022	53,177,437
Balance at Dec. 31, 2022	$ 5	83,850	(266,530)		(182,675)
Stock-based compensation	$ 0	2,902	0		2,902
Net activity related to equity compensation plans (in shares)	65,570
Net activity related to equity compensation plans	$ 0	(11)	0		(11)
Redeemable noncontrolling interest	0	0	2,090		2,090
Series A preferred stock dividend			(1,069)
Net income attributable to Lindblad Expeditions Holdings, Inc.	$ 0	0	621		621
Other comprehensive income (loss), net					0
Balance (in shares) at Mar. 31, 2023	53,243,007
Balance at Mar. 31, 2023	$ 5	$ 86,741	$ (264,888)		$ (178,142)

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows From Operating Activities
Net income (loss)	$ 778	$ (42,148)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	11,808	11,178
Amortization of deferred financing costs and other, net	681	701
Amortization of right-to-use lease assets	353	(9)
Stock-based compensation	2,902	1,828
Deferred income taxes	1,533	(149)
Change in fair value of contingent acquisition consideration	0	56
Gain on foreign currency	(152)	(130)
Write-off of unamortized issuance costs related to debt refinancing	0	9,004
Changes in operating assets and liabilities
Marine operating supplies and inventories	825	482
Prepaid expenses and other current assets	(2,323)	(4,890)
Unearned passenger revenues	4,532	29,563
Other long-term assets	(1,041)	(261)
Other long-term liabilities	(1)	845
Accounts payable and accrued expenses	(17,478)	(908)
Operating lease liabilities	(359)	0
Net cash provided by operating activities	2,058	5,162
Cash Flows From Investing Activities
Purchases of property and equipment	(6,425)	(7,522)
Sale of securities	15,163	0
Net cash provided by (used in) investing activities	8,738	(7,522)
Cash Flows From Financing Activities
Proceeds from long-term debt	0	360,000
Repayments of long-term debt	(5,809)	(334,684)
Payment of deferred financing costs	(21)	(10,781)
Repurchase under stock-based compensation plans and related tax impacts	(266)	(6)
Net cash (used in) provided by financing activities	(6,096)	14,529
Net increase in cash, cash equivalents and restricted cash	4,700	12,169
Cash, cash equivalents and restricted cash at beginning of period	116,024	172,693
Cash, cash equivalents and restricted cash at end of period	120,724	184,862
Supplemental disclosures of cash flow information:
Interest	16,593	3,613
Income taxes	89	58
Non-cash investing and financing activities:
Non-cash preferred stock dividend	$ 1,069	$ 1,298

XML

Note 1 - Business and Basis of Presentation

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

NOTE 1—BUSINESS AND BASIS OF PRESENTATION

Business

Lindblad Expeditions Holdings, Inc.’s and its consolidated subsidiaries’ (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 currently operates a fleet of ten owned expedition ships and five seasonal charter vessels under the Lindblad brand, operates land-based, eco-conscious expeditions and active nature focused tours under the Natural Habitat, Inc. (“Natural Habitat”) and Off the Beaten Path, LLC (“Off the Beaten Path”) brands, designs handcrafted walking tours under the Classic Journeys, LLC (“Classic Journeys”) brand and operates luxury cycling and adventure tours under the DuVine Cycling + Adventure Company (“DuVine”) brand.

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 primarily provides ship-based expeditions aboard 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 Galápagos Islands, Alaska, Baja California’s Sea of Cortez and Panama, and foster active engagement by guests. The Company has an alliance with National Geographic Partners, LLC (“National Geographic”), which 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 includes our four primarily land-based brands, Natural Habitat, DuVine, Off the Beaten Path and Classic Journeys.

● Natural Habitat specializes in conservation-oriented adventures, providing life-enhancing forays into the natural world that feature wild habitats and the animals and people who live there. Natural Habitat’s travel adventures provide unparalleled access to the planet's most extraordinary wildlife, landscapes and cultures. Natural Habitat’s unique itineraries include access to private wildlife reserves, remote corners of national parks and distinctive, secluded, and remote lodges and camps situated where wildlife viewing is best, such as polar bear tours in Churchill, Canada, Alaskan grizzly bear adventures, small-group Galápagos Islands tours and African safaris. Natural Habitat has partnered with World Wildlife Fund (“WWF”) to offer conservation travel, which is sustainable travel that contributes to the protection of nature and wildlife.

● DuVine specializes in luxury cycling and adventure tours around the world, providing immersive cultural and culinary experiences through thoughtfully designed itineraries led by expert local guides. Offerings primarily include tours throughout Europe, the United States and South America. Examples of DuVine’s tours include cycling and culinary tours throughout the Bordeaux and Burgundy wine making regions, Tuscan truffle, porcini and chestnut harvest regions, Napa and Sonoma wine making regions and lakes and volcanos throughout Patagonia. DuVine’s trips include top-quality gear and support and are tailored to riders of all abilities with an emphasis on exceptional food and wine experiences, along with boutique accommodations.

● Off the Beaten Path provides active small-group and private custom journeys around the world with a long-standing focus on offering unique adventures and experiences throughout United States (“U.S.”) National Parks. In addition to other U.S.-based adventures such as ranch vacations and fly-fishing expeditions, Off the Beaten Path’s small-group product offerings include international expeditions across Europe, Africa, Australia, Central and South America and the South Pacific, such as hiking through the Dolomites, family adventures in Patagonia’s Lake District and experiencing the culture of Morocco. All Off the Beaten Path expeditions are defined by a focus on outdoor activity led by experienced, friendly guides.

● Classic Journeys offers highly curated active small-group and private custom journeys centered around cinematic walks focused on engaging experiences that immerse guests into the history and culture of the places they are exploring and the people who live there, led by expert local guides in over 50 countries around the world. Classic Journeys’ tours are highlighted by luxury boutique accommodations and handcrafted itineraries curated through years of local connections such as experiencing Tuscan farmhouse kitchens, exploring Minoan ruins in Crete, or eating and dancing around a Berber encampment campfire.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding unaudited interim financial information and include the accounts and transactions of the Company. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial statements for the periods presented. Operating results for the periods presented are not necessarily indicative of the results of operations to be expected for the full year due to seasonality and other factors. Certain information and footnote disclosures normally included in the consolidated financial statements in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC for interim reporting. All intercompany balances and transactions have been eliminated in these unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements and footnotes should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto for the year ended December 31, 2022 contained in the Company’s Annual Report on Form 10-K filed with the SEC on March 10, 2023 (the “2022 Annual Report”).

There have been no significant changes to the Company’s accounting policies from those disclosed in the 2022 Annual Report.

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Note 2 - Earnings Per Share

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 2—EARNINGS PER SHARE

Earnings per Common Share

Earnings (loss) per common share is computed using the two-class method related to its Series A Redeemable Convertible Preferred Stock, par value of $0.0001 (“Preferred Stock”). Under the two-class method, undistributed earnings available to stockholders for the period are allocated on a pro rata basis to the common stockholders and to the holders of the Preferred Stock based on the weighted average number of common shares outstanding and number of shares that could be issued upon conversion of the Preferred Stock.

Diluted earnings per share is computed using the weighted average number of common shares outstanding and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the dilutive incremental common shares associated with restricted stock awards and shares issuable upon the exercise of stock options, using the treasury stock method, and the potential common shares that could be issued from conversion of the Preferred Stock, using the if-converted method. When a net loss occurs, potential common shares have an anti-dilutive effect on earnings per share and such shares are excluded from the diluted earnings per share calculation.

For the three months ended March 31, 2023 and 2022, the Company incurred net losses available to stockholders, therefore basic and diluted net loss per share are the same in each respective period. For the three months ended March 31, 2023, 0.8 million unvested restricted shares, 1.9 million shares issuable upon exercise of options and 7.6 million common shares issuable upon the conversion of the Preferred Stock were excluded from the calculation of dilutive potential common shares for the period as they were anti-dilutive. For the three months ended March 31, 2022, 0.8 million unvested restricted shares, 1.5 million shares issuable upon exercise of options and 9.3 million common shares issuable upon conversion of the Preferred Stock were excluded from the calculation of dilutive potential common shares for the period as they were anti-dilutive. 

Loss per share was calculated as follows:

	For the three months ended March 31,
	2023			2022
	(unaudited)
(In thousands, except share and per share data)
Net income (loss) attributable to Lindblad Expeditions Holdings, Inc.	$	621		$	(41,721	)
Series A redeemable convertible preferred stock dividend		1,069			1,298
Undistributed loss available to stockholders	$	(448	)	$	(43,019	)
Weighted average shares outstanding:
Total weighted average shares outstanding, basic		53,128,100			50,757,126
Total weighted average shares outstanding, diluted		53,128,100			50,757,126
Undistributed loss per share available to stockholders:
Basic	$	(0.01	)	$	(0.85	)
Diluted	$	(0.01	)	$	(0.85	)

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Note 3 - Revenues

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE 3—REVENUES

Customer Deposits and Contract Liabilities

The Company’s guests remit deposits in advance of tour embarkation. Guest deposits consist of guest ticket revenues as well as revenues from the sale of pre- and post-expedition excursions, hotel accommodations, land-based expeditions and certain air transportation. Guest deposits represent unearned revenues and are reported as unearned passenger revenues when received and are subsequently recognized as tour revenue over the duration of the expedition. Contract liabilities represent the Company's obligation to transfer goods or services to a customer for which the Company has received consideration from the customer. The Company does not consider guest deposits to be a contract liability until the guest no longer has the right, resulting from the passage of time, to cancel their reservation and receive a full refund. In conjunction with the suspension or rescheduling of expeditions, the Company provided guests an option of either a refund or future travel certificates, which in some instances exceeded the original cash deposit. The value of future travel certificates in excess of cash received is being recognized as a discount to tour revenues at the time the related expedition occurs. Future travel certificates are valued based on the Company’s expectation that a guest will travel again. As of  March 31, 2023 and December 31, 2022, the Company has recorded $249.6 million and $245.1 million, related to unearned passenger revenue, respectively.

	Contract Liabilities
(In thousands)
Balance as of December 31, 2022	$	178,198
Recognized in tour revenues during the period		(134,262	)
Additional contract liabilities in period		95,692
Balance as of March 31, 2023	$	139,628

The following table disaggregates our tour revenues by the sales channel it was derived from:

	For the three months ended March 31,
	2023			2022
Guest ticket revenue:		(unaudited)
Direct		45	%		45	%
National Geographic		14	%		16	%
Agencies		23	%		20	%
Affinity		7	%		9	%
Guest ticket revenue		89	%		90	%
Other tour revenue		11	%		10	%
Tour revenues		100	%		100	%

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Note 4 - Financial Statement Details

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Condensed Financial Statements [Text Block]

NOTE 4—FINANCIAL STATEMENT DETAILS

The following is a reconciliation of cash, cash equivalents and restricted cash to the statement of cash flows:

	For the three months ended March 31,
	2023		2022
(In thousands)		(unaudited)
Cash and cash equivalents	$	83,984	$	154,816
Restricted cash		36,740		30,046
Total cash, cash equivalents and restricted cash as presented in the statement of cash flows	$	120,724	$	184,862

Restricted cash consists of the following:

	As of March 31, 2023		As of December 31, 2022
(In thousands)		(unaudited)
Credit card processor reserves	$	20,737	$	20,400
Federal Maritime Commission and other escrow		14,739		6,882
Certificates of deposit and other restricted securities		1,264		1,565
Total restricted cash	$	36,740	$	28,847

Prepaid expenses and other current assets are as follows: 

	As of March 31, 2023		As of December 31, 2022
	(unaudited)
(In thousands)
Prepaid tour expenses	$	25,914	$	20,605
Other		18,187		21,173
Total prepaid expenses and other current assets	$	44,101	$	41,778

Accounts payable and accrued expenses are as follows:

	As of March 31, 2023		As of December 31, 2022
	(unaudited)
(In thousands)
Accrued other expense	$	34,578	$	54,418
Accounts payable		18,810		16,601
Total accounts payable and accrued expenses	$	53,388	$	71,019

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Note 5 - Long-term Debt

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 5—LONG-TERM DEBT

	As of March 31, 2023									As of December 31, 2022
					(unaudited)
(In thousands)	Principal			Deferred Financing Costs, net			Balance			Principal			Deferred Financing Costs, net			Balance
6.75% Notes	$	360,000		$	(8,440	)	$	351,560		$	360,000			(8,968	)		351,032
First Export Credit Agreement		91,569			(1,764	)		89,805			94,794			(1,829	)		92,965
Second Export Credit Agreement		107,485			(2,140	)		105,345			110,044			(2,207	)		107,837
Other		930			-			930			955			-			955
Total long-term debt		559,984			(12,344	)		547,640			565,793			(13,004	)		552,789
Less current portion		(23,308	)		-			(23,308	)		(23,337	)		-			(23,337	)
Total long-term debt, non-current	$	536,676		$	(12,344	)	$	524,332		$	542,456		$	(13,004	)	$	529,452

For the three months ended March 31, 2023 and 2022, $0.7 million and $0.5 million, respectively, of deferred financing costs were charged to interest expense.

6.75% Notes

On February 4, 2022, the Company issued $360.0 million aggregate principal amount of 6.75% senior secured notes due 2027 (the “Notes”) in a private offering. The Notes bear interest at a rate of 6.75% per year, and interest is payable semiannually in arrears on February 15 and August 15 of each year. The Notes will mature on February 15, 2027, subject to earlier repurchase or redemption. The Company used the net proceeds from the offering to prepay in full all outstanding borrowings under its prior credit agreement, including the term facility, Main Street Loan, and revolving credit facility, to pay any related premiums and to terminate in full its prior credit agreement and the commitments thereunder. The Notes are senior secured obligations of the Company and are guaranteed on a senior secured basis by the Company and certain of the Company’s subsidiaries (collectively, the “Guarantors”) and secured by first-priority pari passu liens, subject to permitted liens and certain exceptions, on substantially all the assets of the Company and the Guarantors. The Notes may be redeemed by the Company, at set redemption prices and premiums, plus accrued and unpaid interest, if any. 

The Notes contain covenants that, among other things, restrict the Company’s ability, and the ability of the Company’s restricted subsidiaries, to incur certain additional indebtedness and make certain dividend payments, distributions, investments and other restricted payments. These covenants are subject to a number of important exceptions and qualifications set forth in the Notes. 

Revolving Credit Facility 

On February 4, 2022, the Company entered into a senior secured revolving credit facility (the “Revolving Credit Facility”), which provides for an aggregate principal amount of commitments of $45.0 million, maturing February 2027, including a letter of credit sub-facility in an aggregate principal amount of up to $5.0 million. The obligations under the Revolving Credit Facility are guaranteed by the Company and the Guarantors and are secured by first-priority pari passu liens, subject to permitted liens and certain exceptions, on substantially all the assets of the Company and the Guarantors. Borrowings under the Revolving Credit Facility, if any, will bear interest at a rate per annum equal to, at the Company’s option, an adjusted Secured Overnight Financing Rate (“SOFR”) rate plus a spread or a base rate plus a spread.

The Revolving Credit Facility contains customary affirmative and negative covenants, as well as financial covenants and event of default provisions.

Senior Secured Credit Agreements

In January 2018, the Company entered into a senior secured credit agreement (the “First Export Credit Agreement”) making available to the Company a loan in an aggregate principal amount not to exceed $107.7 million for the purpose of providing financing for up to 80% of the purchase price of the Company’s new ice class vessel, the National Geographic Endurance, delivered in March 2020. The loan amortizes quarterly based on a twelve-year profile, with 70% maturing over twelve years from drawdown, and 30% maturing over five years from drawdown. In September 2021, the Company amended its First Export Credit Agreement to, among other things, waive the net leverage coverage ratio through March 2022 and annualize EBITDA used in its covenant calculation through December 31, 2022. During May 2022, the Company further amended its First Export Credit Agreement to extend the waiver of its net leverage coverage ratio from March 2022 through December 31, 2022. The First Export Credit Agreement, as amended, bears interest at a variable interest rate equal to three-month LIBOR plus a margin of 3.50% per annum, for an aggregated rate of 8.65% over the borrowing period covering March 31, 2023. 

In April 2019, the Company entered into a senior secured credit agreement (the “Second Export Credit Agreement”), to make available to the Company and subject to certain conditions, a loan in an aggregate principal amount not to exceed $122.8 million for the purpose of providing pre- and post-delivery financing for up to 80% of the purchase price of the Company’s new expedition ice-class cruise vessel, the National Geographic Resolution, delivered in September 2021, and borrowed $122.8 million under the Second Export Credit Agreement. The loan amortizes quarterly based on a twelve-year profile, with 70% maturing over twelve years from final drawdown, and 30% maturing over five years from final drawdown. In September 2021, the Company amended its Second Export Credit Agreement to, among other things, waive the net leverage coverage ratio through March 2022 and annualize EBITDA used in its covenant calculation through December 31, 2022. During May 2022, the Company further amended its Second Export Credit Agreement to extend the waiver of its net leverage coverage ratio from March 2022 through December 31, 2022. The Second Export Credit Agreement, as amended, bears a variable interest rate equal to three-month LIBOR plus a margin of 3.50% per annum, for an aggregated rate of 8.46% over the borrowing period covering March 31, 2023.

Other

The Company’s Off the Beaten Path subsidiary has a loan maturing September 2023 for the purchase of guest transportation vehicles. The loan’s original principal was $0.3 million, is collateralized by the vehicles and bears an interest rate of 4.77% annually.

The Company’s Off the Beaten Path subsidiary has a $0.8 million loan under the Main Street Expanded Loan Facility, originated on December 11, 2020. For the first 12 months, interest was not payable and accrued to the principal balance, thereafter, monthly interest payments are required. The outstanding balance will amortize at a rate of 15% on both December 2023 and December 2024, with the remaining balance due December 2025. The loan bears a variable interest rate equal to one-month LIBOR plus a spread of 3.00%, or 7.86% as of March 31, 2023. This loan may be voluntarily prepaid at any time and from time to time, without premium or penalty, other than customary “breakage costs” and fees for LIBOR-based loans.

The Company’s DuVine subsidiary has a EUR 0.1 million State Assistance Loan related to the financial consequences of the COVID-19 pandemic, for the purpose of employment preservation. This loan matures August 2025, with monthly payments, and bears an interest rate of 0.53% annually. 

Covenants

The Company’s Notes, Revolving Credit Facility, First Export Credit Agreement and Second Export Credit Agreement contain financial and restrictive covenants that include among others, net leverage ratios, limits on additional indebtedness and limits on certain investments. On October 11, 2022, the Company amended the covenants of its Senior Secured Credit Agreements to use an annualized EBITDA calculation in its net leverage ratio covenant for the periods from March 31, 2023 through September 30, 2023. The Company was in compliance with its covenants in effect as of March 31, 2023.

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Note 6 - Financial Instruments and Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Derivatives and Fair Value [Text Block]

NOTE 6—FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Derivative Instruments and Hedging Activities

The Company’s derivative assets and liabilities consist principally of foreign exchange forward contracts and interest rate caps and are carried at fair value based on significant observable inputs (Level 2 inputs). Derivatives entered into by the Company are typically executed over-the-counter and are valued using internal valuation techniques, as quoted market prices are not readily available. The valuation technique and inputs depend on the type of derivative and the nature of the underlying exposure. The Company principally uses discounted cash flows along with fair value models that primarily use market observable inputs. These models take into account a variety of factors including, where applicable, maturity, currency exchange rates, interest rate yield curves and counterparty credit risks.

Currency Risk. The Company uses currency exchange forward contracts to manage its exposure to changes in currency exchange rates associated with certain of its non-U.S. dollar denominated receivables and payables. The Company primarily economically hedges a portion of its current-year currency exposure to the Canadian and New Zealand dollars, the Brazilian Real, the South African Rand, the Euro and the British pound sterling. The fluctuations in the value of these forward contracts largely offset the impact of changes in the value of the underlying risk they economically hedge.

Interest Rate Risk. The Company previously used interest rate caps to manage the risk related to its previously existing variable rate corporate debt. The Company recorded the effective portion of changes in the fair value of its cash flow hedges to other comprehensive income (loss), net of tax, and subsequently reclassified these amounts into earnings in the period during which the hedged transaction was recognized. Any changes in fair values of hedges that are determined to be ineffective are immediately reclassified from accumulated other comprehensive income (loss) into earnings. 

The Company held the following derivative instruments with absolute notional values as of March 31, 2023:

(In thousands)	Absolute Notional Value
Interest rate caps	$	100,000
Foreign exchange contracts		12,232

Estimated fair values (Level 2) of derivative instruments were as follows:

	As of March 31, 2023				As of December 31, 2022
	(unaudited)
(In thousands)	Fair Value, Asset Derivatives		Fair Value, Liability Derivatives		Fair Value, Asset Derivatives		Fair Value, Liability Derivatives
Derivative instruments not designated as cash flow hedging instruments:
Interest rate cap (a)	$	316	$	-	$	683	$	-
Foreign exchange forward (b)		-		434		-		572
Total	$	316	$	434	$	683	$	572

(a)	Recorded in prepaid expenses and other current assets.
(b)	Recorded in accounts payable and accrued expenses.

Changes in the fair value of the Company’s hedging instruments are recorded in accumulated other comprehensive income. The effects of derivatives recognized in the Company’s condensed consolidated financial statements were as follows:

	For the three months ended March 31,
(In thousands)	2023			2022
	(unaudited)
Derivative instruments not designated as cash flow hedging instruments:
Interest rate cap (a)	$	(367	)	$	(451	)
Foreign exchange forward (b)		152			130
Total	$	(215	)	$	(321	)

(a)	Recognized in interest expense, net. For the three months ended March 31, 2022, $0.6 million was reclassified from other comprehensive income (loss) to interest expense, net.
(b)	Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged and recognized in gain (loss) on foreign currency.

The carrying amounts of cash and cash equivalents, accounts payable and accrued expenses, approximate fair value due to the short-term nature of these instruments. The Company estimates the approximate fair value of its long-term debt as of March 31, 2023 to be $541.8 million based on the terms of the agreements and comparable market data as of March 31, 2023. As of March 31, 2023 and December 31, 2022, the Company had no other significant liabilities that were measured at fair value on a recurring basis.

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Note 7 - Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Equity [Text Block]

NOTE 7—STOCKHOLDERS’ EQUITY

Stock Repurchase Plan

The Company’s Board of Directors approved a stock and warrant repurchase plan (“Repurchase Plan”) in November 2015 and increased the repurchase plan to $35.0 million in November 2016. The Repurchase Plan authorizes the Company to purchase, from time to time, the Company’s outstanding common stock and previously outstanding warrants. Any shares purchased will be retired. The Repurchase Plan has no time deadline and will continue until otherwise modified or terminated at the sole discretion of the Company’s Board of Directors. These repurchases exclude shares repurchased to settle statutory employee tax withholding related to the exercise of stock options and vesting of stock awards. The Company has cumulatively repurchased 875,218 shares of common stock for $8.3 million and 6,011,926 warrants for $14.7 million, since plan inception. The remaining balance for the Repurchase Plan was $12.0 million as of March 31, 2023.  

Preferred Stock

In August 2020, the Company issued and sold 85,000 shares of Preferred Stock for $1,000 per share for gross proceeds of $85.0 million. The Preferred Stock has senior and preferential ranking to the Company’s common stock. The Preferred Stock is entitled to cumulative dividends of 6.00% per annum, and for the first two years the dividends were paid-in-kind. After the second anniversary of the issuance date, the dividends may be paid-in-kind or be paid in cash at the Company’s option. At any time after the third anniversary of the issuance, the Company  may, at its option, convert all, but not less than all, of the Preferred Stock into common stock if the closing price of shares of common stock is at least 150% of the conversion price for 20 out of 30 consecutive trading days. The Preferred Stock is convertible at any time, at the holder’s election, into a number of shares of common stock of the Company equal to the quotient obtained by dividing the then-current accrued value by the conversion price of $9.50. The Preferred Stock deferred issuance costs was $2.1 million as of March 31, 2023, recorded as reduction to preferred stock. The Company recorded accrued dividends for Preferred Stock of $1.1 million and $1.3 million for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, the 62,000 shares of Preferred Stock outstanding and accumulated dividends could be converted at the option of the holders into 7.6 million shares of the Company’s common stock.

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Note 8 - Stock Based Compensation

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 8—STOCK BASED COMPENSATION

The Company is authorized to issue up to 4.7 million shares of common stock under the 2021 Long-Term Incentive Plan (“the Plan”) which was approved by shareholders in September 2021. As of March 31, 2023, 2.9 million shares were available to be granted under the Plan.

The Company recorded stock-based compensation expense of $2.8 million and $1.8 million during the three months ended March 31, 2023 and 2022, respectively.

2022 Long-Term Incentive Compensation

During the three months ended March 31, 2023, the Company granted 273,656 restricted stock units (“RSUs”) with a weighted average grant price of $9.57. The RSUs will primarily vest equally over three years on the anniversary of the grant date, subject to the recipient’s continued employment or service with the Company on the applicable vesting date. The number of shares were determined based upon the closing price of our common stock on the date of the award.

During the three months ended March 31, 2023, the Company awarded 96,757 performance-based restricted share units (“PSUs”) with a weighted average grant price of $9.56. The PSUs generally vest three years following the date of grant based on the attainment of performance- or market-based goals, all of which are subject to a service condition. The Company does not deliver the shares associated with the PSUs to the employee, non-employee director or other service providers until the performance and vesting conditions are met. 

Options

During the three months ended March 31, 2023, the Company granted 500,000 options, with an average exercise price of $9.56. The options vest ratably over four years with a term of ten years. 

	Stock Option Grants
	2023
Stock price	$	9.56
Exercise price	$	9.56
Dividend yield		0.00	%
Expected Volatility		64.6	%
Risk-free interest rate		3.63	%
Expected term (in years)		6.25

As of March 31, 2023 and December 31, 2022, options to purchase an aggregate of 1.9 million and 1.4 million shares of the Company’s common stock, respectively, with a weighted average exercise price of $13.64 and $15.10, respectively, were outstanding. As of March 31, 2023, 388,000 options were exercisable.

Natural Habitat Contingent Arrangement

In connection with the 2016 acquisition of Natural Habitat, Mr. Bressler employment agreement, as amended, provides Mr. Bressler, President of Natural Habitat, with an equity incentive opportunity to earn an award of options based on the future financial performance of Natural Habitat, effective as of  December 31, 2025, subject to certain conditions. Mr. Bressler has a one-time right to elect an early option award of 50% at  December 31, 2023, subject to certain conditions. 

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Note 9 - Income Taxes

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 9—INCOME TAXES

As of March 31, 2023 and December 31, 2022, the Company had no unrecognized tax benefits recorded. The Company's effective tax rate for the three months ended March 31, 2023 was an expense of 66.5%, versus a benefit of 0.4% for the three months ended March 31, 2022. The effect tax rate for the three months ended March 31, 2023 was impacted by a $1.5 million discrete tax expense.

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Note 10 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE 10—COMMITMENTS AND CONTINGENCIES

Redeemable Non-Controlling Interest

The Company has controlling interests in its Natural Habitat, Off the Beaten Path, DuVine and Classic Journeys consolidated subsidiaries. The noncontrolling interests are subject to put/call agreements. The put options enable the minority holders, but do not obligate them, to sell the remaining interests to the Company. The Company has call options which enable it, but does not obligate it, to acquire the remaining interests in the subsidiaries, subject to certain dates, expirations and similar redemption value purchase measurements as the put options.

Since the redemption of the noncontrolling interests are not solely in the Company’s control, the Company is required to record the redeemable noncontrolling interest outside of stockholders’ equity but after its total liabilities. In addition, if it is probable that the instrument will become redeemable, as such solely due to the passage of time, the redeemable noncontrollable interest should be adjusted to the redemption value via one of two measurement methods. The Company elected the income classification-excess adjustment and accretion methods for recognizing changes in the redemption value of the put options. Under this methodology, a calculation of the present value of the redemption value is compared to the carrying value of the redeemable noncontrolling interest and the carrying value of the redeemable noncontrolling interest is adjusted to the redemption value’s present value. Any adjustments to the carrying value of the redeemable noncontrolling interest, up to the redemption value of the noncontrolling interest, are classified to retained earnings. Adjustments in excess of the redemption value of the noncontrolling interest, are treated as a decrease to net income available to common stockholders.

The redemption value of the put options were determined using a discounted cash flow model. The redemption values were adjusted to their present value using the Company’s weighted average cost of capital. 

The following is a rollforward of redeemable non-controlling interest:

	For the three months ended March 31,
(In thousands)	2023			2022
	(unaudited)
Beginning balance	$	27,886		$	10,626
Net income (loss) attributable to noncontrolling interest		157			(427	)
Redemption value adjustment of put option		(2,090	)		4,259
Distribution		(255	)		-
Ending balance	$	25,698		$	14,458

Royalty Agreement – National Geographic

The Company is party to an alliance and license agreement with National Geographic, which allows the Company to use the National Geographic name and logo. In return for these rights, the Company is charged a royalty fee. The royalty fee is included within selling and marketing expense. The fee is calculated based upon a percentage of certain ticket revenues less travel agent commission, including the revenues received from cancellation fees and any revenues received from the sale of pre- and post-expedition extensions. Royalty expense for the three months ended March 31, 2023 was $1.3 million, and was $1.2 million for the three months ended March 31, 2022.

The royalty balance payable to National Geographic as of March 31, 2023 and December 31, 2022 was $2.1 million and $1.8 million, respectively, and are included in accounts payable and accrued expenses.

Royalty Agreement – World Wildlife Fund

Natural Habitat has a license agreement with WWF, which allows it to use the WWF name and logo. In return for these rights, Natural Habitat is charged a royalty fee and a fee based on annual gross sales. The fees are included within selling and marketing expense. This royalty fee expense was $0.2 million for the three months ended March 31, 2023 and  March 31, 2022.

Charter Commitments

From time to time, the Company enters into agreements to charter vessels onto which it holds its tours and expeditions. Future minimum payments on its charter agreements as of March 31, 2023 are as follows:

For the years ended December 31,	Amount
(In thousands)	(unaudited)
2023	$	10,870
2024		12,914
Total	$	23,784

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Note 12 - Segment Information

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 11—SEGMENT INFORMATION

The Company is primarily a specialty cruise and experiential travel operator with operations in two reportable segments, Lindblad and Land Experiences. The Company evaluates the performance of the business based largely on the results of its operating segments. The chief operating decision maker and management review operating results monthly, and base operating decisions on the total results at a consolidated level, as well as at a segment level. The reports provided to the Board of Directors are at a consolidated level and contain information regarding the separate results of both segments.

The Company evaluates the performance of its business segments based largely on tour revenues and operating income, without allocating other income and expenses, net, income taxes and interest expense, net. Operating results for the Company’s reportable segments were as follows:

	For the three months ended March 31,
	2023		2022
(In thousands)		(unaudited)
Tour revenues:
Lindblad	$	115,498	$	50,274
Land Experiences		27,897		17,572
Total tour revenues	$	143,395	$	67,846
Operating income (loss):
Lindblad	$	12,118	$	(33,569	)
Land Experiences		348		(676	)
Total operating income (loss)	$	12,466	$	(34,245	)

For the three months ended March 31, 2023 there was $2.5 million in intercompany tour revenues between the Lindblad and Land Experiences reportable segments, which were eliminated in consolidation. For the three months ended March 31, 2022, there was $1.6 of intercompany tour revenues between the Lindblad and Land Experiences reportable segments eliminated in consolidation.

Depreciation and amortization are included in segment operating income as shown below:

	For the three months ended March 31,
	2023		2022
(In thousands)		(unaudited)
Depreciation and amortization:
Lindblad	$	11,152	$	10,741
Land Experiences		656		437
Total depreciation and amortization	$	11,808	$	11,178

The following table presents our total assets, intangibles, net and goodwill by segment:

(In thousands)	As of March 31, 2023		As of December 31, 2022
	(unaudited)
Total Assets:
Lindblad	$	628,968	$	662,683
Land Experiences		145,300		125,292
Total assets	$	774,268	$	787,975
Intangibles, net:
Lindblad	$	1,651	$	1,680
Land Experiences		9,109		9,539
Total intangibles, net	$	10,760	$	11,219
Goodwill:
Lindblad	$	-	$	-
Land Experiences		42,017		42,017
Total goodwill	$	42,017	$	42,017

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Note 13 - Subsequent Events

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE 12—SUBSEQUENT EVENTS

In May 2023, the Company issued $275.0 million of 9.00% senior secured notes, maturing 2028 (the “2028 Notes”), with proceeds used primarily to prepay in full all outstanding borrowings under its existing export credit facilities. The 2028 Notes are guaranteed on a senior secured basis by the Company and certain of the Company’s subsidiaries, and collateralized by certain of the Company’s assets.

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding unaudited interim financial information and include the accounts and transactions of the Company. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial statements for the periods presented. Operating results for the periods presented are not necessarily indicative of the results of operations to be expected for the full year due to seasonality and other factors. Certain information and footnote disclosures normally included in the consolidated financial statements in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC for interim reporting. All intercompany balances and transactions have been eliminated in these unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements and footnotes should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto for the year ended December 31, 2022 contained in the Company’s Annual Report on Form 10-K filed with the SEC on March 10, 2023 (the “2022 Annual Report”).

There have been no significant changes to the Company’s accounting policies from those disclosed in the 2022 Annual Report.

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Note 2 - Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	For the three months ended March 31,
	2023			2022
	(unaudited)
(In thousands, except share and per share data)
Net income (loss) attributable to Lindblad Expeditions Holdings, Inc.	$	621		$	(41,721	)
Series A redeemable convertible preferred stock dividend		1,069			1,298
Undistributed loss available to stockholders	$	(448	)	$	(43,019	)
Weighted average shares outstanding:
Total weighted average shares outstanding, basic		53,128,100			50,757,126
Total weighted average shares outstanding, diluted		53,128,100			50,757,126
Undistributed loss per share available to stockholders:
Basic	$	(0.01	)	$	(0.85	)
Diluted	$	(0.01	)	$	(0.85	)

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Note 3 - Revenues (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]

	Contract Liabilities
(In thousands)
Balance as of December 31, 2022	$	178,198
Recognized in tour revenues during the period		(134,262	)
Additional contract liabilities in period		95,692
Balance as of March 31, 2023	$	139,628

Disaggregation of Revenue [Table Text Block]

	For the three months ended March 31,
	2023			2022
Guest ticket revenue:		(unaudited)
Direct		45	%		45	%
National Geographic		14	%		16	%
Agencies		23	%		20	%
Affinity		7	%		9	%
Guest ticket revenue		89	%		90	%
Other tour revenue		11	%		10	%
Tour revenues		100	%		100	%

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Note 4 - Financial Statement Details (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Table Text Block]

	For the three months ended March 31,
	2023		2022
(In thousands)		(unaudited)
Cash and cash equivalents	$	83,984	$	154,816
Restricted cash		36,740		30,046
Total cash, cash equivalents and restricted cash as presented in the statement of cash flows	$	120,724	$	184,862

Restricted Cash and Marketable Securities [Table Text Block]

	As of March 31, 2023		As of December 31, 2022
(In thousands)		(unaudited)
Credit card processor reserves	$	20,737	$	20,400
Federal Maritime Commission and other escrow		14,739		6,882
Certificates of deposit and other restricted securities		1,264		1,565
Total restricted cash	$	36,740	$	28,847

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]

	As of March 31, 2023		As of December 31, 2022
	(unaudited)
(In thousands)
Prepaid tour expenses	$	25,914	$	20,605
Other		18,187		21,173
Total prepaid expenses and other current assets	$	44,101	$	41,778

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

	As of March 31, 2023		As of December 31, 2022
	(unaudited)
(In thousands)
Accrued other expense	$	34,578	$	54,418
Accounts payable		18,810		16,601
Total accounts payable and accrued expenses	$	53,388	$	71,019

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Note 5 - Long-term Debt (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Long-Term Debt Instruments [Table Text Block]

	As of March 31, 2023									As of December 31, 2022
					(unaudited)
(In thousands)	Principal			Deferred Financing Costs, net			Balance			Principal			Deferred Financing Costs, net			Balance
6.75% Notes	$	360,000		$	(8,440	)	$	351,560		$	360,000			(8,968	)		351,032
First Export Credit Agreement		91,569			(1,764	)		89,805			94,794			(1,829	)		92,965
Second Export Credit Agreement		107,485			(2,140	)		105,345			110,044			(2,207	)		107,837
Other		930			-			930			955			-			955
Total long-term debt		559,984			(12,344	)		547,640			565,793			(13,004	)		552,789
Less current portion		(23,308	)		-			(23,308	)		(23,337	)		-			(23,337	)
Total long-term debt, non-current	$	536,676		$	(12,344	)	$	524,332		$	542,456		$	(13,004	)	$	529,452

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Note 6 - Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

(In thousands)	Absolute Notional Value
Interest rate caps	$	100,000
Foreign exchange contracts		12,232

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) and Non-cash Flow Hedges Impacting the Income Statement [Table Text Block]

	For the three months ended March 31,
(In thousands)	2023			2022
	(unaudited)
Derivative instruments not designated as cash flow hedging instruments:
Interest rate cap (a)	$	(367	)	$	(451	)
Foreign exchange forward (b)		152			130
Total	$	(215	)	$	(321	)

Fair Value, Inputs, Level 2 [Member]

Notes Tables

Schedule of Derivative Instruments [Table Text Block]

	As of March 31, 2023				As of December 31, 2022
	(unaudited)
(In thousands)	Fair Value, Asset Derivatives		Fair Value, Liability Derivatives		Fair Value, Asset Derivatives		Fair Value, Liability Derivatives
Derivative instruments not designated as cash flow hedging instruments:
Interest rate cap (a)	$	316	$	-	$	683	$	-
Foreign exchange forward (b)		-		434		-		572
Total	$	316	$	434	$	683	$	572

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Note 8 - Stock Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Stock Option Grants
	2023
Stock price	$	9.56
Exercise price	$	9.56
Dividend yield		0.00	%
Expected Volatility		64.6	%
Risk-free interest rate		3.63	%
Expected term (in years)		6.25

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Note 10 - Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Redeemable Noncontrolling Interest [Table Text Block]

	For the three months ended March 31,
(In thousands)	2023			2022
	(unaudited)
Beginning balance	$	27,886		$	10,626
Net income (loss) attributable to noncontrolling interest		157			(427	)
Redemption value adjustment of put option		(2,090	)		4,259
Distribution		(255	)		-
Ending balance	$	25,698		$	14,458

Shcedule of Future Minimum Payments for Charter Commitments [Table Text Block]

For the years ended December 31,	Amount
(In thousands)	(unaudited)
2023	$	10,870
2024		12,914
Total	$	23,784

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Note 12 - Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	For the three months ended March 31,
	2023		2022
(In thousands)		(unaudited)
Tour revenues:
Lindblad	$	115,498	$	50,274
Land Experiences		27,897		17,572
Total tour revenues	$	143,395	$	67,846
Operating income (loss):
Lindblad	$	12,118	$	(33,569	)
Land Experiences		348		(676	)
Total operating income (loss)	$	12,466	$	(34,245	)

	For the three months ended March 31,
	2023		2022
(In thousands)		(unaudited)
Depreciation and amortization:
Lindblad	$	11,152	$	10,741
Land Experiences		656		437
Total depreciation and amortization	$	11,808	$	11,178

(In thousands)	As of March 31, 2023		As of December 31, 2022
	(unaudited)
Total Assets:
Lindblad	$	628,968	$	662,683
Land Experiences		145,300		125,292
Total assets	$	774,268	$	787,975
Intangibles, net:
Lindblad	$	1,651	$	1,680
Land Experiences		9,109		9,539
Total intangibles, net	$	10,760	$	11,219
Goodwill:
Lindblad	$	-	$	-
Land Experiences		42,017		42,017
Total goodwill	$	42,017	$	42,017

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Note 1 - Business and Basis of Presentation (Details Textual)	3 Months Ended
	Mar. 31, 2023
Number of Expedition Ships Operated	10
Number of Seasonal Charter Vessels Operated	5
Number of Reportable Segments	2

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Note 2 - Earnings Per Share (Details Textual) - $ / shares shares in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.0001		$ 0.0001
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	0.8	0.8
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	1.9	1.5
Series A Redeemable Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	7.6	9.3
Series A Redeemable Convertible Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.0001

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Note 2 - Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net income (loss) attributable to Lindblad Expeditions Holdings, Inc.	$ 621	$ (41,721)
Series A redeemable convertible preferred stock dividend	1,069	1,298
Net loss available to stockholders	$ (448)	$ (43,019)
Total weighted average shares outstanding, basic (in shares)	53,128,100	50,757,126
Diluted (in shares)	53,128,100	50,757,126
Basic (in dollars per share)	$ (0.01)	$ (0.85)
Diluted (in dollars per share)	$ (0.01)	$ (0.85)

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Note 3 - Revenues (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Contract with Customer, Liability	$ 139,628	$ 178,198
Passenger Revenue [Member]
Contract with Customer, Liability	$ 249,600	$ 245,100

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Note 3 - Revenues - Change in Contract Liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Balance as of December 31, 2022	$ 178,198
Recognized in tour revenues during the period	(134,262)
Additional contract liabilities in period	95,692
Balance	$ 139,628

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Note 3 - Revenues - Disaggregation of Revenues by Type (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Tour revenues	100.00%	100.00%
Guest Ticket [Member]
Tour revenues	89.00%	90.00%
Guest Ticket [Member] | Sales Channel, Directly to Consumer [Member]
Tour revenues	45.00%	45.00%
Guest Ticket [Member] | Sales Channel, National Geographic [Member]
Tour revenues	14.00%	16.00%
Guest Ticket [Member] | Sales Channel, Agencies [Member]
Tour revenues	23.00%	20.00%
Guest Ticket [Member] | Sales Channel, Affinity [Member]
Tour revenues	7.00%	9.00%
Other Tour [Member]
Tour revenues	11.00%	10.00%

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Note 4 - Financial Statement Details - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Cash and cash equivalents	$ 83,984	$ 87,177	$ 154,816
Restricted cash	36,740	28,847	30,046
Total cash, cash equivalents and restricted cash as presented in the statement of cash flows	$ 120,724	$ 116,024	$ 184,862	$ 172,693

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Note 4 - Financial Statement Details - Restricted Cash and Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Total restricted cash and marketable securities	$ 36,740	$ 28,847	$ 30,046
Credit Card Processor Reserves [Member]
Total restricted cash and marketable securities	20,737	20,400
Federal Maritime Commission Escrow [Member]
Total restricted cash and marketable securities	14,739	6,882
Certificates of Deposit and Other Restricted Securities [Member]
Total restricted cash and marketable securities	$ 1,264	$ 1,565

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Note 4 - Financial Statement Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Prepaid tour expenses	$ 25,914	$ 20,605
Other	18,187	21,173
Total prepaid expenses and other current assets	$ 44,101	$ 41,778

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Note 4 - Financial Statement Details - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accrued other expense	$ 34,578	$ 54,418
Accounts payable	18,810	16,601
Total accounts payable and accrued expenses	$ 53,388	$ 71,019

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Note 5 - Long-term Debt (Details Textual) € in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2023	Mar. 31, 2023 EUR (€)	Feb. 04, 2022 USD ($)	Sep. 30, 2021 USD ($)	Jan. 08, 2020	Apr. 30, 2019 USD ($)	Jan. 31, 2018 USD ($)
Amortization of Debt Issuance Costs	$ 0.7	$ 0.5
Senior Secured Notes [Member]
Debt Instrument, Face Amount					$ 360.0
Debt Instrument, Interest Rate, Stated Percentage					6.75%
Credit Agreement [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity					$ 45.0
Credit Agreement [Member] | Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity					$ 5.0
First Export Credit Agreement [Member]
Debt Agreement, Maximum Borrowing Capacity									$ 107.7
Percentage of Purchase Price, Financing Maximum									80.00%
Debt Instrument, Maturing over Twelve Years from Drawdown, Percentage							70.00%
Debt Instrument, Maturing over Five Years from Drawdown, Percentage							30.00%
First Export Credit Facility [Member]
Debt Instrument, Interest Rate, Effective Percentage	8.65%			8.65%
First Export Credit Facility [Member] | London Interbank Offered Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	3.50%
Second Export Credit Agreement [Member]
Debt Agreement, Maximum Borrowing Capacity						$ 122.8		$ 122.8
Percentage of Purchase Price, Financing Maximum								80.00%
Debt Instrument, Interest Rate, Effective Percentage	8.46%			8.46%
Second Export Credit Agreement [Member] | London Interbank Offered Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	3.50%
Export Credit Agreement [Member]
Debt Instrument, Maturing over Twelve Years from Drawdown, Percentage							70.00%
Debt Instrument, Maturing over Five Years from Drawdown, Percentage							30.00%
Loan Maturing September 2023 [Member] | Off the Beaten Path, LLC (OBP) [Member]
Debt Instrument, Face Amount	$ 0.3
Debt Instrument, Interest Rate, Stated Percentage	4.77%			4.77%
Loan Originated on December 11, 2020 [Member] | Off the Beaten Path, LLC (OBP) [Member] | Main Street Expanded Loan Facility Program [Member]
Debt Instrument, Face Amount	$ 0.8
Debt, Weighted Average Interest Rate	7.86%			7.86%
Loan Originated on December 11, 2020 [Member] | Off the Beaten Path, LLC (OBP) [Member] | Main Street Expanded Loan Facility Program [Member] | Forecast [Member]
Debt Instrument, Amortization Rate			15.00%
Loan Originated on December 11, 2020 [Member] | London Interbank Offered Rate [Member] | Off the Beaten Path, LLC (OBP) [Member] | Main Street Expanded Loan Facility Program [Member] | Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	3.00%
State Assistance Loan [Member] | DuVine [Member]
Debt Instrument, Face Amount | €				€ 0.1
Debt Instrument, Interest Rate, Stated Percentage	0.53%			0.53%

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Note 5 - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Principal	$ 559,984	$ 565,793
Deferred Financing Costs, Net	(12,344)	(13,004)
Balance	547,640	552,789
Principal, Current	(23,308)	(23,337)
Deferred Financing Costs, Net, Current	0	0
Balance, Current	(23,308)	(23,337)
Principal, Non-current	536,676	542,456
Deferred Financing Costs, Net, Non-current	(12,344)	(13,004)
Balance, Non-current	524,332	529,452
Senior Secured Notes [Member]
Principal	360,000	360,000
Deferred Financing Costs, Net	(8,440)	(8,968)
Balance	351,560	351,032
First Senior Secured Credit Agreement [Member]
Principal	91,569	94,794
Deferred Financing Costs, Net	(1,764)	(1,829)
Balance	89,805	92,965
Second Senior Secured Credit Agreement [Member]
Principal	107,485	110,044
Deferred Financing Costs, Net	(2,140)	(2,207)
Balance	105,345	107,837
Other Debt [Member]
Principal	930	955
Deferred Financing Costs, Net	0	0
Balance	$ 930	$ 955

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Note 6 - Financial Instruments and Fair Value Measurements (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2023
Long-Term Debt, Fair Value		$ 541.8
Interest Rate Cap [Member] | Not Designated as Hedging Instrument [Member]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	$ (0.6)

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Note 6 - Financial Instruments and Fair Value Measurements - Derivative Instruments Notional Values (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Interest Rate Cap [Member]
Interest rate caps	$ 100,000
Foreign Exchange Contract [Member]
Interest rate caps	$ 12,232

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Note 6 - Financial Instruments and Fair Value Measurements - Estimated Fair Values of Derivative Instruments (Details) - Fair Value, Inputs, Level 2 [Member] - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Derivatives designated as hedging instruments		$ 316	$ 683
Derivatives designated as hedging instruments		434	572
Interest Rate Cap [Member]
Derivatives designated as hedging instruments	[1]	316	683
Derivatives designated as hedging instruments	[1]	0	0
Foreign Exchange Contract [Member]
Derivatives designated as hedging instruments	[2]		0
Derivatives designated as hedging instruments	[2]	$ 434	$ 572

[1] Recorded in prepaid expenses and other current assets.

[2] Recorded in accounts payable and accrued expenses.

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Note 6 - Financial Instruments and Fair Value Measurements - Derivatives Recognized in Condensed Consolidation Financial Statements (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Derivative instruments not designated as cash flow hedging instruments:		$ (215)	$ (321)
Not Designated as Hedging Instrument [Member] | Interest Rate Cap [Member]
Derivative instruments not designated as cash flow hedging instruments:	[1]	(367)	(451)
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Derivative instruments not designated as cash flow hedging instruments:	[2]	$ 152	$ 130

[1] Recognized as income in interest expense, net. For the three months ended March 31, 2022, $0.6 million was reclassified from other comprehensive income (loss) to interest expense, net.

[2] Gains (losses) related to derivative instruments are expected to be largely offset by (losses) gains on the underlying exposures being hedged and recognized in gain (loss) on foreign currency.

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Note 7 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		76 Months Ended
	Aug. 31, 2020	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Dec. 31, 2022	Nov. 30, 2016
Dividends, Preferred Stock			$ 1,298
Preferred Stock, Shares Outstanding, Ending Balance (in shares)		62,000		62,000	62,000
Series A Redeemable Convertible Preferred Stock [Member]
Temporary Equity, Shares Issued (in shares)		62,000		62,000	62,000
Deferred Offering Costs		$ 2,100		$ 2,100
Dividends, Preferred Stock		$ 1,100	1,300
Preferred Stock, Shares Outstanding, Ending Balance (in shares)		62,000		62,000
Convertible Preferred Stock, Shares Reserved for Future Issuance (in shares)		7,600,000		7,600,000
Series A Redeemable Convertible Preferred Stock [Member] | Private Placement [Member]
Temporary Equity, Shares Issued (in shares)	85,000
Shares Issued, Price Per Share (in dollars per share)	$ 1,000
Proceeds from Issuance of Preferred Stock and Preference Stock	$ 85,000
Preferred Stock, Dividend Rate, Percentage	6.00%
Convertible Preferred Stock, Conversion Price (in dollars per share)	$ 9.50
Common Stock [Member]
Dividends, Preferred Stock			$ (0)
Stock and Warrant Repurchase Plan [Member]
Stock Repurchase Program, Authorized Amount						$ 35,000
Warrants Repurchased During Period (in shares)				6,011,926
Warrants Repurchased During Period, Value				$ 14,700
Stock Repurchase Program, Remaining Authorized Repurchase Amount		$ 12,000		$ 12,000
Stock and Warrant Repurchase Plan [Member] | Common Stock [Member]
Stock Repurchased During Period, Shares (in shares)				875,218
Stock Repurchased During Period, Value				$ 8,300

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Note 8 - Stock Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Share-Based Payment Arrangement, Expense	$ 2.8	$ 1.8
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number (in shares)	1,900,000		1,400,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 13.64		$ 15.10
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number (in shares)	388,000
2021 Long-Term Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)	4,700,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)	2,900,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)	500,000
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share)	$ 9.56
2021 Long-Term Incentive Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	273,656
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	$ 9.57
2021 Long-Term Incentive Compensation Plan [Member] | Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	96,757
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	$ 9.56
2021 Long-Term Incentive Compensation Plan [Member] | Share-Based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	4 years
2021 Long-Term Incentive Compensation Plan [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)	10 years

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Note 8 - Share Based Compensation - Summary of Significant Assumptions for Share-based Compensation Awards (Details) - Share-Based Payment Arrangement, Option [Member]	3 Months Ended
	Mar. 31, 2023 $ / shares
Stock price (in dollars per share)	$ 9.56
Exercise price (in dollars per share)	$ 9.56
Dividend yield	0.00%
Expected Volatility	64.60%
Risk-free interest rate	3.63%
Expected term (in years) (Year)	6 years 3 months

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Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Unrecognized Tax Benefits, Ending Balance	$ 0		$ 0
Effective Income Tax Rate Reconciliation, Percent	66.50%	0.40%
Discrete Income Tax Expense	$ 1,500

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Note 10 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
National Geographic [Member]
Royalty Expense	$ 1.3	$ 1.2
Accounts Payable and Other Accrued Liabilities, Current	2.1		$ 1.8
World Wildlife Fund [Member]
Royalty Expense	$ 0.2	$ 0.2

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Note 10- Commitments and Contingencies - Redeemable Non-controlling Interest (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Balance	$ 27,886	$ 10,626
Net income (loss) attributable to noncontrolling interest	157	(427)
Redemption value adjustment of put option	(2,090)	4,259
Distribution	(255)	0
Ending balance	$ 25,698	$ 14,458

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Note 10 - Commitments and Contingencies - Charter Commitments (Details) $ in Thousands	Mar. 31, 2023 USD ($)
2023	$ 10,870
2024	12,914
Total	$ 23,784

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Note 12 - Segment Information (Details Textual) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)
Number of Operating Segments	2
Revenue from Contract with Customer, Including Assessed Tax	$ 143,395	$ 67,846
Intersegment Eliminations [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 2,500	$ 1,600

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Note 12 - Segment Information - Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Tour revenues	$ 143,395	$ 67,846
Operating income (loss)	12,466	(34,245)
Depreciation and amortization	11,808	11,178
Total Assets	774,268		$ 787,975
Total intangibles, net	10,760		11,219
Total goodwill	42,017		42,017
Lindblad Segment [Member]
Tour revenues	115,498	50,274
Operating income (loss)	12,118	(33,569)
Depreciation and amortization	11,152	10,741
Total Assets	628,968		662,683
Total intangibles, net	1,651		1,680
Total goodwill	0		0
Land-experience [Member]
Tour revenues	27,897	17,572
Operating income (loss)	348	(676)
Depreciation and amortization	656	$ 437
Total Assets	145,300		125,292
Total intangibles, net	9,109		9,539
Total goodwill	$ 42,017		$ 42,017

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Note 13 - Subsequent Events (Details Textual) - The 2028 Notes [Member] - Subsequent Event [Member] $ in Millions	May 31, 2023 USD ($)
Debt Instrument, Face Amount	$ 275
Debt Instrument, Interest Rate, Stated Percentage	9.00%