LIND Q1 2021 Earnings

Call Details

• Call Title: Lindblad Expeditions Q1 2021 Earnings Call
• Date: April 29, 2021 at 12:30 PM UTC
• Management Team:
  • Sven Lindblad (Chief Executive Officer)
  • Craig Felenstein (Chief Financial Officer)
  • Dolph Burleigh (Incoming Chief Executive Officer)

Call Summary

Financial Performance

• The company ended Q1 2021 with $164M in unrestricted cash and $22M in restricted cash for a total of $186M.
• Total cash at quarter end was $26M higher than at the end of Q1 2020.
• Net cash spend for the quarter was $18M, which included approximately $18M spent on operating costs, $7M net spent on acquisitions, $5M in principal and interest payments, and $4M in CapEx.
• Operating expenses before depreciation and amortization, interest, and taxes were reduced by nearly 70% versus the same quarter a year ago.
• Maintenance CapEx in the quarter was a little over $1M, which was down $3M year-over-year primarily due to timing of dry docks.
• There was approximately $2M of build costs related to the National Geographic Resolution recorded during the quarter.

Guidance

• The company expects to resume sailings in early June with two ships in Alaska and one in the Galapagos Islands.
• The company stated it will likely activate two more ships later in June if demand and destination permissions allow.
• A fifth ship, the National Geographic Orion, may be activated in Alaska if permission is secured to clear in a Russian port to comply with the Jones Act.
• By year-end the company anticipates being more or less fully operational again, subject to destination openings and permissions.
• Monthly cash usage while paused was estimated to be approximately $10M to $15M on average, excluding new guest payments and refunds.
• Leverage ratio covenants on term and revolver loans were suspended through March 31, 2022, following a loan amendment.