Business Context and Reporting Period
This Form 8-K was filed by Lindblad Expeditions Holdings, Inc. on July 17, 2020, reporting events occurring on July 17, 2020. The Company operates expedition voyages and is currently navigating operational disruptions caused by the global spread of the COVID-19 virus.
Key Financial Metrics
As of June 30, 2020, the Company reported the following liquidity positions:
- Unrestricted Cash: $80.9 million
- Restricted Cash: $21.3 million (primarily deposits on future travel from U.S. ports)
- Estimated Monthly Cash Usage: $10-15 million while vessels are not in operation (includes operating expenses, capital expenditures, and debt service)
The filing does not provide specific revenue, profit, margin, or total debt figures for the period.
Material Changes and Operational Updates
- Operational Suspension: All expedition voyages scheduled for August 2020 have been rescheduled or rebooked due to continued travel restrictions.
- Executive Departure: Philip Auerbach, Chief Commercial Officer, is departing effective August 7, 2020. A search for a successor has commenced.
Outlook, Risks, and Management Commentary
Management indicates that the Company is estimating monthly cash burn of $10-15 million during the period of non-operation. This estimate excludes guest payments for future travel and cash refunds requested on previously made payments. The primary risk highlighted is the continued impact of the COVID-19 virus on travel restrictions and the ability to operate vessels.
Key Facts for Investor Verification
- Verify the total duration of the vessel suspension and the impact on the $10-15 million monthly cash burn rate.
- Confirm the status of the search for a replacement Chief Commercial Officer.
- Monitor the balance of restricted cash ($21.3 million) and potential refund obligations from guests.
- Assess the timeline for the rescheduled August 2020 voyages.