Lindblad Expeditions has reported a 2020 tour revenues decrease of $260.7 mill, or 76%, compared to 2019.
This fall was driven by a $202.8 mill decrease at the Lindblad segment and a $57.9 mill decrease at Natural Habitat, due to rescheduling nearly all expeditions on the back of COVID-19.
As a result, the net loss for 2020 was $100.4 mill, $2.01 per diluted share, compared with net income of $13.7 mill, $0.28 per diluted share, in 2019.
The $114.1 mill decrease primarily reflected the impact of COVID-19 on operations, a $6.3 mill increase in depreciation and amortisation versus 2019, primarily due to the addition of the ’National Geographic Endurance’ to the fleet in March, 2020 and a $4.8 mill foreign currency loss during the year versus a $0.1 mill foreign currency gain in 2019.
However, the year-on-year decline was partially offset by a tax benefit of $9.8 mill, primarily due to the operating losses in 2020, versus a tax expense of $2.2 mill in the previous year.
Full year Adjusted EBITDA loss was $52.2 mill, a decrease of $118.8 mill, compared to 2019. This decrease was driven by a $102.5 mill decline at the Lindblad segment and a $16.4 mill decrease at Natural Habitat.
Lindblad segment Adjusted EBITDA loss of $44.4 mill was a fall of $102.4 mill, compared to the previous year, due primarily to the revenue impact of rescheduling all expeditions as a result of COVID-19 and costs associated with the ’National Geographic Endurance’ delivery.
Last year brought lower operating costs for the fleet while laid up, a reduction in commissions from the impact of COVID-19 on revenues and reduced marketing and personnel spend.
Natural Habitat Adjusted EBITDA loss of $7.8 mill was a decline of $16.4 mill versus 2019, primarily due to the lower revenue as a result of COVID-19, partially offset by lower operating costs due to rescheduled departures and a reduction in marketing and personnel spend.
Fourth quarter 2020 tour revenues decreased $75.4 mill, or 100%, compared to the same period in 2019. This decline was driven by a $54.8 mill decrease at the Lindblad segment and a $20.7 mill decrease at Natural Habitat, as a result of rescheduling nearly all expeditions due to COVID-19.
Net loss for 4Q20 was $31 mill, $0.59 per diluted share, compared with net loss of $1.5 mill, $0.03 per diluted share, in 4Q19. The $29.5 mill decrease primarily reflected the impact of COVID-19 on operations and a $1.2 mill increase in depreciation and amortisation versus 4Q19, primarily due to the addition of the ’National Geographic Endurance’ to the fleet in March, 2020.
Fourth quarter 2020 Adjusted EBITDA was a loss of $19.8 mill, an increase of $27.8 mill, compared to the same period in 2019. This was driven by a $18.6 mill decline at the Lindblad segment and a $9.2 mill decrease at Natural Habitat.
Lindblad segment Adjusted EBITDA loss of $15.4 mill was a decrease of $18.6 mill, compared to 4Q19, due primarily to the revenue impact of rescheduling all expeditions as a result of COVID-19 and costs associated with the ’National Geographic Endurance’.
The 4Q20 also included lower operating costs for the fleet while laid up, a reduction in commissions from the impact of COVID-19 on revenues and reduced marketing and personnel spend.
Natural Habitat Adjusted EBITDA loss was $4.4 mill, a decrease of $9.2 mill, versus the fourth quarter of 2019, primarily due to the lower revenue as a result of COVID-19, partially offset by lower operating costs due to rescheduled departures and a reduction in marketing and personnel spend.
Lindblad ended the year with $187.5 mill in unrestricted cash and $17 mill in restricted cash.
The Group raised $85 mill in December through borrowings under the Main Street expanded loan facility programme, which followed the same amount raised in September through private placement issuance of convertible preferred equity.
At the same time, the Group implemented significant cost reduction measures reducing monthly cash usage to about $10-15 mill.
Bookings for 2022 are currently 37% ahead of bookings for 2021 at the same point a year ago.
The delivery of ‘National Geographic Endurance’ increased the Group’s available guest nights by nearly 18%.
In March of this year, Lindblad acquired a majority stake in international luxury cycling and adventure company DuVine Cycling + Adventure and a month earlier acquired a majority stake in Off the Beaten Path, an active travel operator focused on US National Parks.
Sven-Olof Lindblad, President and CEO, said: “As Lindblad moves closer to once again exploring the world’s most remarkable destinations, the cost reductions and targeted capital raises we completed over the past year will enable us to return to operations as a vibrant company.
“The steps we have taken also provided us the financial flexibility to pursue additional growth opportunities and we recently expanded our platform of high-quality and authentic experiential offerings with the acquisitions of leading travel providers Off the Beaten Path and DuVine.
“Just like with our acquisition of Natural Habitat, these businesses are ideal complements to our existing platform, and we look forward to building them into meaningful contributors in the years ahead.
“There is significant and growing demand for high quality adventure travel, further evidenced by our current booking strength, and we will continue to look for additional opportunities to broaden and deepen our experiential offerings, both organically and through acquisitions, to aggregate larger audiences, generate greater lifetime value from our loyal guests and build additional shareholder value in the years ahead,” he concluded.
Due to the spread of the COVID-19 virus and the effects of travel restrictions around the world, the company has suspended or rescheduled the majority of its expeditions departing March 16, 2020 through May 31, 2021.
The company’s ships are currently being maintained with minimally required crew on board to ensure they comply with all necessary regulations and can be fully and quickly put back into service as needed, according to a statement.
In accordance with local regulations, the company closed its offices and most employees are working remotely to maintain general business operations, to provide assistance to existing and potential guests and to maintain information technology systems.
As part of a comprehensive plan, the Group is employing cost reduction and cash preservation measures and has accessed available capital under its existing debt facilities and through the issuance of preferred equity, while exploring additional sources of capital and liquidity.
These measures include:
- Significantly reduced ship and land-based expedition costs, including crew payroll, land costs, fuel and food. All ships have been safely laid up.
- Lowered expected annual maintenance capital expenditures by over $15 mill, savings of more than 70% from originally planned levels.
- Reduced general and administrative expenses through employee furloughs, payroll reductions and the elimination of all non-essential travel, office expenses and discretionary spending.
- Suspended the majority of planned advertising and marketing spend.
- Suspended all repurchases of common stock under the stock repurchase plan.
