LIND Q3 2020 Earnings

Call Details

• Call Title: Lindblad Expeditions Q3 2020 Earnings Call
• Date: October 29, 2020 at 12:30 PM UTC
• Management Team:
  • Craig Spelenstein (Chief Financial Officer)
  • Sven Lindblad (Chief Executive Officer)

Call Summary

Financial Performance

• Operating expenses before depreciation and amortization, interest and taxes were reduced by 76% in the third quarter versus the same quarter a year ago.
• Cash spend in the quarter was $36 million, which included approximately $20 million in operating costs, $5 million in principal and interest payments, and less than $1 million in capital expenditures.
• The company referenced non-GAAP financial measures and stated that reconciliations to the most directly comparable GAAP measures are contained in the earnings release.
• Voyage cancellations resulted in current bookings for 2020 being down 74% versus 2019 for directly comparable itineraries.
• The company reported generating over $44 million in new bookings since March 1st, with a portion attributable to guests not using future travel credits.
• All ships remain laid up with minimally required crew and the company suspended the majority of advertising and marketing spend while focusing on digital channels.

Guidance

• The company estimates average monthly cash usage of $10 million to $15 million going forward, excluding new guest payments and refunds.
• There are no material debt maturities until 2023, and $500,000 in principal payments remain due for the remainder of 2020.
• Leverage ratio covenants were suspended through June 30, 2021 pursuant to amended credit agreements.
• The remaining installment of approximately $62 million on the National Geographic Resolution is covered by the second export credit agreement and is not scheduled until delivery, which remains anticipated toward the end of 2021.
• The firm stated that it plans to ramp up marketing beginning in Q4 with increased direct mail, social, trade advertising, and travel advisor outreach.
• The company will continue to evaluate short-term operating potential in select geographies such as the Galapagos and Baja California while marketing April 2021 and beyond.