Lindblad Expeditions: Navigating Troubled Waters in Q1 2020

Published: May 1, 2020

In an era where the travel industry has been turned upside down by unforeseen circumstances, Lindblad Expeditions Holdings, Inc. (NASDAQ: LIND) has released its first-quarter financial results, shedding light on its current state. For those closely watching the earnings surprise landscape, Lindblad's results offer a glimpse into the turbulent waters faced by the cruise sector during the pandemic.

First Quarter Highlights: The Good, The Bad, and The Pandemic

Lindblad's EPS for the first quarter of 2020 was a net loss available to common stockholders of $1.9 million, which translates to an earnings per share (EPS) figure that certainly won't be winning any awards. This loss comes as the company reported a 9% decline in tour revenues, totaling $81.2 million. You can almost hear the collective groan from analysts adjusting their revenue forecasts.

But wait, there's more! Adjusted EBITDA took a hit as well, decreasing by $11.5 million to $10.6 million. Ouch! This brings us to a broader conversation about the impact of COVID-19. Lindblad made it clear that the pandemic significantly disrupted their operations, with cancellations and voyage rescheduling becoming the new normal.

Capacity and Cash: A Silver Lining?

Despite the grim figures, there are still a few rays of sunshine peeking through the clouds. Lindblad managed to significantly expand its capacity with the delivery of the National Geographic Endurance in March 2020. This could be a strategic move for when the world starts to reopen, positioning them to capitalize on pent-up demand.

Moreover, the company's cash position is relatively robust, ending the quarter with $137 million in cash. This liquidity should help them weather this storm, particularly as they implement significant cost reduction measures to bolster their financial profile. Monthly cash burn is expected to be in the range of $10-15 million, excluding the impact of guest payments and refunds. In layman's terms, they?ve got some life rafts ready for this rocky journey.

Looking Ahead: What Lies Beyond the Horizon?

As we look to the future, Lindblad's management remains cautiously optimistic. CEO Sven-Olof Lindblad noted that the first two months of the year showed strong momentum before the pandemic threw a wrench into their plans. The company?s focus on guest and crew safety remains paramount, and it will be interesting to see how their response compares to sector peers.

The cruise industry is at a pivotal juncture, and Lindblad?s experience could serve as a case study for how to navigate the post-pandemic recovery landscape. As they adjust to the new normal, we?ll be watching closely for any shifts in EPS consensus and overall market sentiment.