Lindblad Expeditions (US:LIND)2020-08-11 00:42Financial Data and Key Metrics Changes - The company reduced operating expenses before depreciation and amortization, interest, and taxes by over 60% in Q2 2020 compared to the same quarter last year [35] - Estimated monthly cash usage has been lowered to $10 million to $15 million, which includes all ship and office operating expenses, necessary capital expenditures, and expected interest and principal payments [35][36] - Net cash spend during the quarter was $57 million, which included approximately $31 million in operating costs, excluding refunds [36] Business Line Data and Key Metrics Changes - Bookings for 2021 are currently 6% ahead of 2020 at the same point a year ago and 35% ahead of 2019 at the same point in 2018 [41] - The company has generated over $30 million in new bookings since March 1, 2020, from guests not utilizing future travel credits [42] Market Data and Key Metrics Changes - Current bookings for 2020 are down 62% compared to 2019 due to voyage cancellations, but demand for future expedition travel remains strong [41] - The majority of guests are opting for future travel credits instead of full refunds for canceled voyages, indicating a positive trend in customer sentiment [39] Company Strategy and Development Direction - The company is focusing on reactivation plans that include credible medical solutions, welcoming geographies, and ensuring traveler safety [15][16][17] - There is a strong belief that pent-up demand for expedition cruising will significantly increase post-pandemic [17][28] - The company aims to enhance its liquidity position through various strategies, including potential financing in public and private markets [49] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertainty in the broader travel and tourism industry but remains optimistic about resuming operations soon [27] - The company has taken significant steps to preserve capital and maintain its brand reputation during the shutdown [18][24] - There is a clear opportunity to expand operations in French Polynesia post-COVID, which could become a major geography for the company [76] Other Important Information - The company ended the quarter with $81 million in unrestricted cash and $21 million in restricted cash related to deposits on voyages originating in the U.S. [43] - The company has deferred approximately $9 million in principal payments under export credit agreements to enhance liquidity [44] Q&A Session Summary Question: Regarding 2021 booking commentary and new bookings - The $30 million in bookings since March represents new bookings, not including those using future travel credits [51] Question: Cash inflow from new bookings versus refunds - Currently, cash inflow from new bookings does not exceed refunds going out, but this is expected to change as fewer refunds are processed [54][55] Question: Return to operations and air service plans - The return to operations depends on geography, with plans for charter services being explored to mitigate costs and ensure safety [56][58] Question: Incremental costs to bring ships back online - Costs to bring ships back online will primarily involve crew travel and salaries, along with necessary repairs [70][72] Question: Major regions for upcoming voyages - Key regions for upcoming voyages include Antarctica, the Galapagos Islands, and Central America, with a focus on expanding operations in French Polynesia [74][76] Question: Noteworthy trends in new bookings - Guests using future travel credits are generally rebooking similar voyages, with some opting to upgrade cabins or book additional voyages [79]