LIND Q4 2020 Earnings

Call Details

• Call Title: Lindblad Expeditions Q4 2020 Earnings Call
• Date: March 9, 2021 at 1:30 PM UTC
• Management Team:
  • Sven Lindblad (Chief Executive Officer)
  • Craig Felenstein (Chief Financial Officer)
  • David Goodman (Chief Marketing Officer)

Call Summary

Financial Performance

• Lindblad ended 2020 with $188M in unrestricted cash and $17M in restricted cash, representing a $95M increase versus year-end 2019.
• Total operating expenses before depreciation and amortization, interest and taxes were reduced by 70% in Q4 versus the same quarter a year ago.
• Cash spend in Q4 was $26M, comprising approximately $18M in operating costs, $5M in principal and interest payments, and $3M in capex.
• Maintenance capex in Q4 was a little over $1M due primarily to dry docks for Explorer and Endeavour II, and full-year maintenance capex was reduced by over 70% versus the original budget.
• Debt principal outstanding was $496M at year-end, an increase of $266M from the end of 2019.
• Combined acquisition price for DuVine and Off the Beaten Path was approximately $10.5M, comprised of $8.7M in cash and $1.8M in Lindblad stock.
• Bookings commentary included that the company is 37% ahead of where it was for 2021 at the same time a year ago.

Guidance

• The company is not providing P&L guidance for 2021 due to COVID-19 uncertainties.
• Estimated cash usage is expected to return to $10M to $15M monthly on average, excluding new guest payments and refunds.
• Maintenance capex is projected to be in the $15M to $17M range for 2021, which includes ventilation modifications across the fleet.
• Growth capex is projected at $75M to $80M for 2021 and does not include any potential new ship builds.
• The remaining contract installment payments for National Geographic Resolution are covered by export credit agreements with $15M scheduled to be drawn in April and $45M upon delivery.
• The company anticipates approximately $10M of principal payments in 2021, predominantly under export credit agreements.
• Voyages were canceled through the end of May and the company expects to resume operations in June with initial focus on Alaska, Galapagos, and Iceland, contingent on vaccination progress and local approvals.