Lindblad Expeditions Holdings Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the Lynn Bladd Expeditions Incorporated Reports Third Quarter 2020 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's call is being recorded. If you require further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Mr. Craig Spelenstein. Thank you. Please go ahead, sir.

Thank you, Alicia. Good morning, everyone, and thank you for joining us for Lindblad's 2020 Third Quarter Earnings Call. With me on the call today is Sven Lindblad, our Founder and Chief Executive Officer. Sven will begin with some opening comments, and then I will follow with some detail on our financial results and liquidity before we open the call for Q&A. You can find our latest earnings release in the Investor Relations section of our website. Before we get started, let me remind everyone that the company's comments today may include forward-looking statements. Those expectations are subject to risks and uncertainties that may cause actual results and performance to be materially different from these expectations. The company cannot guarantee the accuracy of any forecasts or estimates, and we undertake no obligation to update any such forward-looking statements. If you would like more information on the risks involved in forward-looking statements, please see the company's SEC filings. In addition, Our comments may reference non-GAAP financial measures. Reconciliation of the most directly comparable GAAP financial measures and other associated disclosures are contained in the company's earnings release. And with that out of the way, let me turn the call over to Sven.

Thanks, Craig, and good morning, everyone. And thank you again for joining us today. During our last earnings call, I spoke to you from French Polynesia, I was there to learn about the possibilities, what could be developed, in order to position one of our ships there. Throughout the years, I've been fortunate to spend a fair amount of time in this remarkable location. And if you think of a place like a recipe, French Polynesia has an excess of ingredients. The incredible lagoons, the turquoise waters, reefs, fish, mountains, forests, flowers everywhere, and really some of the nicest and happiest people on Earth. I was able to spend my time there working with local leaders and laying the groundwork for what I believe will be one of the strongest, most sustainable expedition experiences we have ever developed. Now back in soggy New York, we are all somewhat consumed by an upcoming election and made aware each day of the grip that COVID-19 has on our country and much of the world. This is a stubborn pandemic that clearly will be with us into next year and will significantly affect our short-term plans. Over the past few months, our startup team has worked diligently to develop a robust set of stringent protocols that would allow us to operate sooner rather than later in a variety of geographies. We had these protocols vetted by a number of health officials and local authorities who were all impressed with the procedures we had established and were willing to work with us to resume operations. At the same time, we had reached out to our guests who were scheduled to travel with us over the next few months through a series of webinars to gauge whether they were ready to join us on an immersive expedition, and the response was very encouraging. Based on that feedback, we had planned to start reactivation by operating our newest ship, the National Geographic Endurance, in Antarctica beginning this December. Unfortunately, despite the current guest demand, we have now decided to cancel this Antarctic season. On October 26, the CDC issued a warning advising U.S. travelers to defer all cruise travel. Clearly, we do not look upon ourselves as a cruise company, and the size of our ships along with where we travel creates a totally different risk profile. However, we decided that given the significant uncertainty as to the evolution of COVID over the next months, both in reality and in terms of perception, rescheduling was the right thing to do for our long-term future. We've been around for four decades and will continue to grow and prosper for many, many more. But for a while longer, we simply must stay dormant. We are continuing to evaluate the short-term operating potential in additional geographies such as the Galapagos and Baja California, while actively beginning to market April 2021 and beyond with a robust plan that involves every tool in our arsenal. We have also unearthed new concepts and itineraries, which we believe respond well to the times. Please remember, we have a very fortunate circumstance in that because of our size and what we are known for and the reputation we have developed over these decades, we offer the kind of travel that countries and regions really want in a post-COVID world. This I've been told over and over and over again. We are also largely nature-based, which means being outdoors and naturally distanced from large human concentrations. Our spring and summer finds us almost entirely in the wild. Alaska, the Arctic, Galapagos, the Amazon, and Polynesia. As a result of our capital raise in August, along with an already significant cash position, we can weather this pause for quite some time. Our teams have done a remarkable job of paring down expenses while at the same time ensuring that we are ready to reactivate when is the right time. Every aspect of the organization has had to undergo an analysis of what can reasonably be saved without damaging the long-term future. That, in essence, was the driving force behind the capital raises. Never, never damage your long-term future. Significant capital reserves also allow us to look at and seriously consider strategic opportunities that are compatible and broaden our long-term offerings. Clearly there are and will continue to be such prospects as companies reevaluate their future. This pause is also a time to look internally and focus on things that never seem possible when you're at full throttle. Internal IT systems, sales relationship, operational structure. In other words, the back of the house items that while mostly hidden make a huge difference both financially and in terms of efficiency. I've spoken to many colleagues in the industry who have had the exact same experience. There is little time to efficiently correct course when you're driving at 100 miles an hour. Of course, everyone is asking, when will this be over? When will we get back to normal? And while no one knows for sure when, clearly this will pass. Better, more rapid testing, treatments, credible vaccine, flattening of curves, these will all happen And then we will return to an altered world. We will have found strengths we didn't know existed. We will have learned more about handling stress than we could have ever imagined. We will be more excited and motivated than ever returned to business. And we will respect and nurture our guests more than ever before. When I refer to COVID at this time, I use the word pause. Many have said to me, Sven, aren't you beside yourself with what's happening to the business? Frankly, I'm not. I'm deeply saddened by what's happened in the world, for the people who have become sick or died, for those who have lost their livelihoods, for animals who have been killed because their countries simply couldn't afford to protect them. As for the business, COVID presented a crisis. We acknowledged it and built a plan to ride out a pause, including building a large cash coffer. And what I do know, beyond a shadow of doubt, is that when the doors open again, we'll be ready to with what I believe will be amongst the most relevant and sought-after opportunities for travelers. And that position will last far into the future. Lindblad expeditions and natural habitats celebrate the wonders of our world, whether they be natural, cultural, or historical. Our offerings are smart, respectful, and full of value. People will seek out these opportunities in far greater numbers than ever before. Of that, I am 100% certain. So thank you for your time today. And now please, I'd like to turn the call back over to Craig.