Lindblad Expeditions (LIND) 10 Aug 202020 Q2 Earnings call transcript

Good Day, and welcome to the Lindblad Expeditions Inc. reports Second Quarter 2020 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] I would now like to turn the conference over to Mr. Craig Felenstein, Chief Financial Officer. ahead. go Please

Founder Good I us Brent. call before With Q&A. and you on opening results Lindblad, thank on will financial Officer. Thank with our follow begin Lindblad’s afternoon, open with XXXX we for joining some our Sven is for call and Call. liquidity Chief Second for the Executive the Sven then you, comments, today everyone, and will Quarter and me details Earnings some

earnings in the latest section our our website. Relations find of can You release Investor

expectations. Before no statements. that that we accuracy the are may obligation forward-looking statements. remind different results undertake get forecast The subject any started, and let such of we these to cause expectations may to the include estimates Company me everyone performance cannot Those uncertainties any today Company’s materially and comments guarantee and update or actual to risks be forward-looking from

like please would you more involved the Company’s risks the If filings. see forward-looking on statements, information in SEC

addition, associated way, In comparable call and out And the reference measures that A turn measures. me in financial GAAP most financial other of with non-GAAP the over are Company’s reconciliation to earnings directly contained of the release. comments the Sven. let disclosures our may

a islands people class, a South Hiking and Sea coral to with the exotic resort French Hawaii and world an two afternoon today, hours still explore of further us for and fish. our made to joining morning, a culture distinct to half as you, there conduct are Craig, Coast, Thank atolls I’m and hundreds two by good a Usually rivers exception from today. alive the which the West And that is the you from we an of with everybody locales Polynesia, destination but we thanks appreciate. delightful. than is for and earnings is in to is speaking remarkable calls kayak, explore playground only

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a and consultants team physician reactivation, dedicated meeting for that executives diversified with we in that operational our everyday improve along leadership and includes employees, Speaking with disease infectious have reactivation. refine to protocols of is expertise

We have are ways across safety the pride always fleet, in and augment taken robust and standards. our to exploring protocols existing health continually

Premium example, Purity. activated of disinfection significantly we any introduced reduces a revolutionary light called system a the ahead pandemic, year self It system and transmission. For last that new cleaning is viral bacterial ACT

officials ensure requirements in with and three how health safety. possible are as countries every itinerary. might have maintaining operate and taking leading which for step are instances we to in are Our experts their reactivate necessary. plans They changes order all we to we future closely restart offer that teams to we travel on In local working key suggestions certain in The ingredients. focusing while monitoring

and solution crew show distancing, rigorous to testing, sanitation visitors country’s and on social or relationship clear double requirements. protocols does members intrude involves creative and First Also not guest the signs the both of experience. infection, with in that is and practical guests any PCR their medical any strict specific credible protocols aboard

assured is open maintaining find by ahead, And and the mat Second, day, and and and like of what safety more months they ways by expedition. would third, will being that French to and integrity weeks we them to their taken strides allow anticipate acceptance Polynesia. steps More practical acceptable be by countries need travelers borders. the be I to And more the while open. the their travel in are activated reasonably of made, can stay who every from a learned the each welcome country wish will will visit geographers we protocols

new months will to nearly be resolved. and demand last. are as I much So, And how for believe that earlier, I here is exasperating skyrocketed. will sure expedition be demand it five but total some cruising shutdown, we into will It point it at do sure, pent-up mentioned is nobody longer

assess What that could that travel alike. this damage our several vision protocols the to of built phone wanted travelers It webinars, gratifying was say expeditions of business guests every we so possible, We and know conserve would with exactly and is employee they during decades. period which Since last be travelers simple, meaningful we plane the and come anything on this avoiding What brand our over of take get we calls have this, get don’t how how welfare is that, cash as professionals trust, is over earnings would viewed conversations continue they our with that when much and and indicated must the we emails. have many exists to to reputation through for We trust stayed shutdown will we eager as while clear, out our back had We have to day their call, needed very the to we which people, intact. squander and our have seriously. see conducted. exhibited amongst there we crew heard never will to want managers and ready are They were welfare and very, we I always that proceed. of our although XX% -. when always clear do, out have to from a trust

average differentiator site authentic is experience a and business vessel aspects is our the the provides. is consistently guests ships of XX immersive key that of size an and passengers them of the for One of our size

advantages same enormous is environment. at this speak current to more says times, in Everyone While the normal the even competitive I so thing.

again solutions You and will can manage The was Clearly, far be space, medical necessary. except to that anchor. so, of sheer reasons. we could a because effectively logistics not so even problem more with starting are tenors have many we our size. we We function our can small began fortunate alter ships for there from any is true easier point end when at an and if and if require did ports, we

the finding ships way of and countries are stands remote. our We idea and are smaller happier small the with for brand also

been countries and it or which So, discussing past time gratifying wire. we and are exhibit to see another, restarting. Most have we don’t tough subject in is the have with want. back countries to respect, your wanting is really There often way critical been we the meaningful, when during sentiment is kind environment. of reputation It of These comes this this, and five-months us They in visited authorities have really times one the the our the clearly ourselves said with fronts. of like that what many conversations we of have is also so is to reinvent communities, heartworm. tourism on COVID

Argosy We furlough have we loyal build last and the getting exciting have XX event all We a to taken particularly have was and chartered on shifts in Geographic boarded they National both to XXX onboard Geographic our and Endurance to they home There shifts last Explore home. crew Manila. Germany members Denmark where deliver many National did XXth. employees crew members reduce worked endurance in for our the financial We who from buses to certainly the their it fashion, this were the to newest years. had know of called those flight of hit get June and home used for salaries those us Hamburg one privately able of and flight operation our company crew so dramatic from over team when a many are to our that on that and last so

We that continue achievement remain us our specifically all that so industry uncertainly we standing was but Lindblad will and hugely energized staff they broader soon, optimistic no forward. to Our face there moving a needed. this resume gave question that is by will

after. doing wait any we return We well, we Thanks, This and travels. what it value. pandemic. us Thank not the to want world time challenges going and out to be is and to crossroads weather And array and Travel of call so we the And a Fortunately, I your today. me first get do was ways. proposition the the firmly is wide turn over The has our will is more can’t and question world. the are We into year Craig. It time valuable so have overcome Sven. how so for have resiliency now believe exploring in if faced even we believe resources they we and what to long-term. each and of is helped you every next time meaningful that explore our of adversity, when away. a incredibly Tourism before to differentiated will necessary. what year have the let Millions to not this will people

hope during everyone Sven. Thanks, I times. healthy afternoon, and safe and is Good staying extraordinary these

all I for preserve their for and I preparing continued the begin, our and diligence of again us to ways it thank resiliency to to shown crew efforts they and would operations to Before in have once office return like personnel to capital. identify

closed place we operations impact having had COVID-XX since As Sven our across virus going despite the that we months our it been Once and mentioned, of has swiftly enhance a apparent operations, the put it position. nearly in five fleet. virus plan any to reduce comprehensive to costs liquidity cases not readily became our our was

required been minimally a ship All based have portion carefully of up costs. land crew, operating our laid the and and we with our ships have of eliminated expedition considerable

of annual We our from expected CapEx over savings planned XX% more than originally have the reduced by maintenance also $XX levels. million

office On front, suspended spending all we of with employee we are and returns significantly through bookings. and on and general future travel and spend the primarily of furloughs, advertising marketing that salary focusing elimination And spending. our majority non-essential regards reductions administrative generating discretionary search to lowered have the expenses appropriate opportunities have

have all we payment C bonuses XXXX suite of the including for performance, Additionally, bonuses. majority earned of deferred

cash plan. of the repurchase purchases stock suspended and deferring have under common stock for the we Directors of are compensation We all Board the

we P&L made and principal operating any estimated this ago. all on us a taken usage million. measures XX% quarter to office year cash for previously we guest front, excludes travel payments. cash the payments amortization expenditures, and payments, quarter new have and taxes expenses, and includes our lowered same reduce interest interest monthly depreciation million reforms over have before to have have capital the expenses On operating and the front, to by This guest $XX versus but $XX a and expected ship And future necessary enabled

entire was cash usage Let to quarter to cash cash spend mentioned the excluding refunds. runway. to time our ships $XX quarter it in a approximately current $XX which liquidity me during that million, turning costs, color second take provide to operating reposition included ships second layoff minute some Net position Sven in note not before took throughout million our the on the the and repatriate were full as crew. Important and quarter status as some

reduction further operating a spend in would we moving So, expect forward.

exposure travel and the The September. very $X were of future launch canceled The in have full CapEx primarily related these guests travel plans. opposed growth to the second borrowings, and payments. related to through bulk $X opting by for of as is The consistent and their on approximately has principal of guests and this credit refunds of approximately to quarter Geographic are which encouraging by been remaining also since One million includes expeditions is Endurance voyages our the interest paid end decided lower refunds, or to usage National deposits that, travel. is with export refunds March. to covered included as in other not and guest through forward September our very far, cash been facet significantly future offset partially important moving was regards under has future majority already guests, canceled primarily rescheduled payments the our trend It credits rescheduled that for voyage the thus million the

current to Turning trends. booking

versus had over we ago, to the million start have same growth utilizing great are highlighted very down ahead current on have for resulted from the and future we expedition we are future A same a off well-positioned point in guests in to previously, XX% beyond. and certainly for XXXX, demand X% XXXX, travel for generated $XX for we and not also since year bookings in voyages at is from strong As of bookings were portion of ahead of have March at cancelled Bookings prior remains XXXX but travel point XXXX currently credits. XXXX voyages COVID, while XXXX. a and Xst, opted XXXX cancellations to in that reschedule, guests XX% the that XXXX

of had that significant feedback in guests a in originated we voyages resumed end the from the million not that up also At the the second out are and company and unrestricted on getting get geography. quarter, As to primarily believe is demand the $XX and marketing reminder, related we the on pent cash amazing world’s cash to $XX awareness based in yet million have restricted States. United we there explore deposits

XXXX also to reduce operating deferral Aside we million our our this credit through March, explore from position further principal June, under to export continuing approximately ways costs, from of XXXX agreements. through past enhanced $X further liquidity in quarter, payments

outstanding. quarter $XXX On the with debt front, we ended the principal million in

National export During installment million now market through issuance the and $XX.X XXth, credit certainly and including the by of are down payments time The it no agreements, maturities additional not proceeds under and quarter of and this questions covered additional approximately have. With position, Sven both materials million continue anticipated use covenants we until debt. to The the has leverage amend Resolution ratio on of installment any would morning June we be not to our agreement, end both private ship, markets and several agreement XXXX, answer with including, for Resolution. and the delivery our company may enhance for to liquidity credit I towards of equity the suspension the will to for the due you scheduled year, structure Thank be with limited through second XXXX. to our financing to your lenders any we or credit of evaluate happy still to transaction and conditions. next but XXXX. the worked strategies depend you export of second timing drew to public debt existing and upon until for has Geographic remaining third the the $XX payment majority regards which is for leverage the company the fully covenants, its are The

We [Operator will the answer question now begin session. and Instructions].

Our Wieczynski today Stifel. first ahead. question with go comes from Please Steve

Good guys. afternoon

is bookings. booking So, right? I commentary. first future million Craig, March? say hear the question since you would that all be hear XXXX that That $XX that around new booked your I did of travel Did And you

million XXXX. bookings XXXX. million booking we you future into that XXXX factor been who people in Obviously, travel Yes, over larger are new in, $XX booked $XX actual credits future transferred from The for using not represents factor using when bookings. are is you those much all from number travel so in if credits but the folks have have

And approximately can don’t this, I where but would you say mean, know if a normally be? pretty I that impressive seems like number? that

previously from versus is the we less where you we past. to but seeing booked, it would are give March. interest looking of where would are significant of it do Yes, someplace we frankly, in does to something the the have not with because come been guests It since were are to that going And the certainly fact go. consistent what than demand to we historically, continue that it we I and not speak would that that, early pretty guests to were this only is do exactly all respect but out to say part

you new Okay. in have out then from door? versus Craig, the more cash door going coming do today And the refunds bookings

that today, not the of case. is As

cancelled say shift out say expect the forward, the amount would going to the shouldn’t I later, now future and are in amount that of refunds future out Certainly cancellation. no would moving cash exceed year payments to the when of final that. the payments travel. that to through as was we I the Now, to scheduled, not July. to through I days right we due so barring you payments but now regards What for would is payments certainly September amount because because because a we start that that the significantly have of further to advance. are of we travel received have refunds not less the final longer significant been door payments important into deposits XXX XX be but are significant coming Those pushed And because will rest still expect seeing future final significant is with are voyages payments in final is back case look future. many

to to want when service but in is happen, ask the the to were you. to any clue Okay, the for guys I thoughts understand implementing. about return as you or operations got guys that fully you going updated to no have air I about service look ability chartering you thinking and

reported into guys, guys I you to fall right talked time think the kind that don’t that CDCs you air about a the now? but we is policy, no to up I obviously benefit hang issue you last the the given know be sale seemed the of

Let respond that. to me Yes, Sevn here.

that So, prospect the instances, many we on still And largely of are at depends charter. geography. looking in

And people somewhat going part a that. more or commercial, of of the it. it be protects obviously more so that But prepared cost to which the mitigates people amount also offsets we staying of idea pay it committed, for charter. mitigates imagine to And were certain is charter than would should,

be from And ship actively four days depart positive we have have five so at the to day, which we is negative are XX-hours. test meant then for to within a where another gathering the the a what couple But are point to geographies. returned we test. of And that test or necessarily have get leaving which the to or which within There to done, at want that equation PCR home from of end do is still have in well. so work planned pursuing doesn’t various that people we want

a so essentially we worked out private to and be at bubble modify safe. we itineraries certain various charter, the with other communities people, including deemed unless And we we have for with then, University limit in that a much of point have We go Washington very would that would we so would interaction geographies.

protocol is bit, on varies that and it the depending geography. generally a So, the little

Okay. maybe it for not I ship, to was Got I of actually some But small you Tahiti. is you. you look understand what had ship. you from as start that And the I Gagon] small ship. and learned what (Ph) you over hear that happened kind And question. then on and But, you question topical it as a Sven do something operations you you ask are since tried experience? in last are to up did guys [Paul want about guess, there issues. there

had to was then in there within proved to online happened, here had And what days are what enough, as the into to out back - individual have French second identified four register negative you with came took you - other you guests who after here later, self that four positive was no guest tests. or know positive. one far at from test their test test. XX-hours Well, the protocols then a have been arrival, test been Interestingly arrived immediately She be the I have take reported on system a the that another and board second PCR Polynesia, She least a this negative of that as negative that was cases days either isolated. a on crew. and turned is administered there has leaving

they test, lot she to put procedures So, any I carefully. at the of reopen with she in have a and this But terms of way? been they day into it tourism I happened the managing dealt so folks to first impressed the so how Polynesians, Ministry should that how at took the transition to did not French this. their say, I looking but transmit the of in protocols and are other there has anything between the it, they They Tourism closely incredibly that at have point now others. looking modify contracted the for with in thought time very in with met some

appreciate it. guys. great. Thanks Okay, I

Thanks Steve.

Instructions]. [Operator

Please Our next with Alex come ahead. question will from Furman Craig-Hallum. go

cash you to ask It on position, about getting wanted I in of I crew noteworthy quarter. a to monthly couple liquidity here. A the $XX One Certainly the million Would entire congratulations ship expect like you able very of like million to your sort environment taking to your online? question have know incur last bringing in would burn. need you $XX your this running about. to would through is with $XX million sounds at $XX costs for million accomplishment Thank seems process my you Great. a much and home. were incremental and, mentioned have that things be back if us get fleet up point, there you that ships to back be you burn operations? some to Can into to your back relative consistent walk

Sure.

from operations, Aside you are once get back back to the to normal costs, to that costs, two going are in they operate, operating in not frankly, significant, order the they where the them can incur. that to are biggest have costs

crew The to is going ship. are the you on have to first all get back the

thing So, ultimately that costs you repairs is on bring when to certainly have to done there going travel care once they of location you them And second salaries any associated take to to certainly have are back of be with board. the the launch. and ahead is

waited said, September, that to shifts. us a every year for very the fair there work frame our is time Now, many dry-dock, amount much which is October for that in of of is done

dry-dock get at these we’re which that to very once normal shifts cost would running up we be can do what get less can the these the be that in So, we significant. with ships a looking no in much shifts, up running. is would And line and

next little six, your seems three, walk kind through would would anyway. I definitely does you us then Thanks, nine-months. when Great, next can a the Craig. based is Alaska just helpful. that normally that really that just trip you The next in of over to you, like over regions few on the what important major is Alaska or a normally season imagine season be you be sailing geography normally two month it bit. through And the

we of what seasons the that major for your and the thinking the spring Beyond should and be about are Alaska, sort some of winter regions for coming-up?

the November, Antarctica, so us so next in November, is reading January, is December, starting that really February. Yes, for geography

important that important year. Islands the we is geography. for not I America there in so go is most Baja, Central that mean, geography Galapagos nearly this is is important key important not another so permanently are done obviously in the of course And geography. Alaska, Galapagos California we where could doing still but then the an Antarctica. as now because And single have Mexico ships as that. two geography, another you from aside is

French are at the in into main I Xlooking one major for Polynesia right is, a turn to the us of reasons And situation. coming in I are much I’m So, opportunity now. think and March we the into is the there into those ones clear is beyond. here mean, then more a this geography here post-COVID

for less plus So, of here couple the year, or or more for have we we been every year months, a minus. past

is a months. over of highlights. that is so, one of there made is and think possibility up ships next that really that the I be all distinct could focus it of bulk far know we But several that here the some those with than the longer our of of is you the kinds things, but

voyages passengers as Perfect, of just in as terms million that could thanks had the $XX or bookings so the if And new who well their into of rebooked I passengers for lastly, new for ask, coming friend. are booking are who incremental the maybe upgrading receiving booking credit? they canceling about Anything Are the voyages are are voyages? cancelled. multiple noteworthy incremental for credit cabins they passengers voyages longer booking, their those or with what that booking

Yes, I think go ahead.

Sure.

now, I of one type there wouldn’t specific you doing is swath action. is or of certain right specific what guest say are geography one So, seeing, a

that voyages seeing in cases the we have their to had a back most in credit, are future. same canceled those that travel going think I are are voyage future what using is,

the have book book future who not additional and using use to that in the wait-and-see road. to credit, the credit works in anytime right future. them Some and also additional are looking But There to to for now looking to bring add future. some are decided And are voyages to others credit pay funds down have happens guests to then the alongside. are to the cabins, some upgrade do in Obviously additional gotten folks it other travel cabins to the that that. what way, who book what best

it of seen, runs think operations. and not will into as there continue that I the type we it is really I back one we gamut think So, re-booking have to specific get evolve and

That Great. helpful. really both. Thank is you

you. Thank

[Operator further I’m no questions. this point, At showing Instructions].

conclude remarks. So, to for back will to our over conference this question-and-answer any Craig would session. I turn like closing Felenstein the

you your us have questions, afternoon, Thanks. today. time We please additional Thanks, Glen. know. and Thank you for let joining appreciate us if everybody this

The conference Thank concluded. has presentation. attending for you today’s now

You disconnect. may now