SeaWorld Entertainment, Inc. Reports Third Quarter and First Nine Months 2023 Results
ORLANDO, Fla., Nov. 8, 2023 /PRNewswire/ — SeaWorld Entertainment, Inc. (NYSE: SEAS), a number one theme park and leisure firm, at this time reported its monetary outcomes for the third quarter and first 9 months of fiscal 12 months 2023.
Third Quarter 2023 Highlights
- Attendance was 7.1 million company, a lower of roughly 0.2 million company or 2.8% from the third quarter of 2022.
- Total income was $548.2 million, a lower of $17.0 million or 3.0% from the third quarter of 2022.
- Net revenue was $123.6 million, a lower of $11.0 million or 8.2% from the third quarter of 2022.
- Adjusted EBITDA[1] was $266.4 million, a lower of $7.8 million or 2.8% from the third quarter of 2022.
- Total income per capita[2] decreased 0.2% to $76.90 from the third quarter of 2022. Admission per capita[2] decreased 1.6% to $42.05 whereas in-park per capita spending[2] elevated 1.6% to a document $34.85 from the third quarter of 2022.
First Nine Months 2023 Highlights
- Attendance was 16.6 million company, a lower of 0.4 million company or 2.1% from the primary 9 months of 2022.
- Total income was $1,337.6 million, a lower of $3.1 million or 0.2% from the primary 9 months of 2022.
- Net revenue was $194.1 million, a lower of $48.0 million or 19.8% from the primary 9 months of 2022.
- Adjusted EBITDA was $563.1 million, a lower of $11.5 million or 2.0% from the primary 9 months of 2022.
- Total income per capita elevated 1.9% to a document $80.36 from the primary 9 months of 2022. Admission per capita elevated 1.3% to a document $44.07, whereas in-park per capita spending elevated 2.7% to a document $36.29 from the primary 9 months of 2022.
Other Highlights
- Total per capita spending was up low single-digits in October. On a comparable day over comparable day foundation adjusting for the calendar shift that resulted in a single much less Saturday in comparison with prior 12 months, the Company estimates income and attendance would have been up low single-digits.
- During the third quarter, the Company repurchased 78,750 shares for an combination complete of roughly $3.9 million, leaving roughly $38.5 million remaining below the Share Repurchase Program as of September 30, 2023.
- During the third quarter of 2023, the Company got here to the help of 56 animals in want within the wild. The complete variety of animals the Company has helped over its historical past is greater than 40,000.
“We are pleased to report another quarter of solid financial results despite the impact of unusual and significantly adverse weather in our peak operating season across most of our markets.” stated Marc Swanson, Chief Executive Officer of SeaWorld Entertainment, Inc. “Our results during the third quarter continue to demonstrate the resilience of our business, the effectiveness of our strategy and the tireless efforts of our outstanding team. We are particularly pleased to continue to see strong results from our focus, efforts and investment in our in-park offerings as we grew in-park per capita spending for the 14th consecutive quarter to a record level during the quarter. We are excited to see the continued results of our ongoing work in this area in the coming quarters into 2024. Our relentless focus on cost management also continued to deliver as we improved adjusted EBITDA margin on a year-over-year basis for the quarter. We are continuing to execute against our previously discussed cost initiatives and expect to continue to see the results of these efforts in the coming quarters into 2024,” stated Marc Swanson, Chief Executive Officer of SeaWorld Entertainment, Inc. “I want to thank our ambassadors across our parks for their dedicated efforts to welcome and serve our guests during the busy summer season.”
“We’ve simply accomplished one other profitable Halloween season at our parks that includes our award-winning Halloween occasions. We are happy to have grown per capita spending in October and after adjusting for the calendar shift that resulted in a single much less Saturday in comparison with prior 12 months, we estimate attendance and income would have grown as nicely. We are happy with the continued power of our Halloween occasions and the recognition that they proceed to construct with our company. As we enter the vacation season, we’ll start our award-winning Christmas occasions at most of our SeaWorld, Busch Gardens and Sesame parks later this week. Our Christmas occasions function thrilling reside leisure, scrumptious and distinctive meals and beverage choices and vacation looking for company of all ages.
[1] This earnings launch contains Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow that are monetary measures that aren’t calculated in accordance with Generally Accepted Accounting Principles within the U.S. (“GAAP”). See “Statement Regarding Non-GAAP Financial Measures and Key Performance Metrics” part and the monetary assertion tables for the definitions of Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow and the reconciliation of those measures for historic durations to their respective most comparable monetary measures calculated in accordance with GAAP. |
[2] This earnings launch contains key efficiency metrics akin to complete income per capita, admissions per capita and in-park per capita spending. See “Statement Regarding Non-GAAP Financial Measures and Key Performance Metrics” part for definitions and additional particulars. |
“Looking beyond the holiday season into 2024, we are pleased to see 2024 revenue bookings trending up double-digit percentage ahead of prior year for both 2024 groups and our Discovery Cove property. In addition, we recently launched our best pass benefits program ever which we expect will help drive increases in pass sales and a strong pass base for next year,” continued Swanson.
“We continue to make progress on our strategic growth initiatives related to hotels, international expansion and our digital activities. We also have made meaningful incremental investments across our parks this year that we expect to fully benefit from in the coming quarters. We look forward to sharing more on these exciting and value creating initiatives and investments in the coming quarters into 2024.”
“We have proven quarter after quarter that we have a strong and resilient business model and we still have significant opportunities to improve and grow our revenue and profitability. We operate in an industry and in markets with growing demand trends over the long term and we have significant available guest capacity across our park portfolio. Our attendance levels are still below the total attendance levels we achieved in 2019 and well below our historical high attendance of approximately 25 million guests recorded in 2008. We have made significant investments in our business this year and will continue to make investments to improve the guest experience, allowing us to generate more revenue and make us a more efficient and profitable business – we expect these investments to yield highly attractive returns. And, we are planning new initiatives for next year that will make us an even stronger, more profitable and more resilient business that we expect will ultimately lead to meaningful increases in shareholder value,” concluded Swanson.
The Company has introduced its partial line-up of latest rides, points of interest, occasions and upgrades for 2024. This line-up contains, amongst others:
- Penguin Trek, an unforgettable household launch coaster journey at SeaWorld Orlando
- Phoenix Rising, a suspended curler coaster at Busch Gardens Tampa Bay
- A totally restored Loch Ness Monster coaster with all-new thematic and experiential components at Busch Gardens Williamsburg
- Jewels of the Sea: the Jellyfish Experience attraction at SeaWorld San Diego
- Catapult Falls, the World’s first launched flume coaster at SeaWorld San Antonio
The Company’s outcomes of operations for the primary 9 months of fiscal 2023 and 2022 continued to be impacted by the worldwide COVID-19 pandemic due partly to a decline in worldwide attendance from historic ranges.
Third Quarter 2023 Results
In the third quarter of 2023, the Company hosted roughly 7.1 million company, generated complete revenues of $548.2 million, web revenue of $123.6 million and Adjusted EBITDA of $266.4 million. Attendance decreased roughly 207,000 company when in comparison with the third quarter of 2022. The lower in attendance was primarily resulting from considerably opposed climate, together with some mixture of bizarre warmth and/or rain, throughout most of our markets, together with throughout peak visitation durations.
The lower in complete income of $17.0 million in comparison with the third quarter of 2022 was primarily a results of a decline in attendance, partially offset by a rise in in-park per capita spending (outlined as meals, merchandise and different income divided by complete attendance). Admission per capita decreased primarily as a result of web affect of the admissions product combine, partially offset by the conclusion of upper costs in our admission merchandise ensuing from our strategic pricing efforts when in comparison with the prior 12 months quarter. In park per capita spending improved primarily resulting from pricing initiatives, partially offset by elements together with climate, the admissions product combine, closures and disruption associated to development delays at sure in park areas when in comparison with the third quarter of 2022. Adjusted EBITDA was impacted primarily by a lower in income.
Three Months Ended September 30, | Change | |||||||||||
2023 | 2022 | % | ||||||||||
(In hundreds of thousands, besides per share and per capita quantities) | ||||||||||||
Total revenues | $ | 548.2 | $ | 565.2 | (3.0) | % | ||||||
Net revenue | $ | 123.6 | $ | 134.6 | (8.2) | % | ||||||
Earnings per share, diluted | $ | 1.92 | $ | 1.99 | (3.5) | % | ||||||
Adjusted EBITDA | $ | 266.4 | $ | 274.2 | (2.8) | % | ||||||
Net money supplied by working actions | $ | 163.6 | $ | 169.2 | (3.4) | % | ||||||
Attendance | 7.1 | 7.3 | (2.8) | % | ||||||||
Total income per capita | $ | 76.90 | $ | 77.05 | (0.2) | % | ||||||
Admission per capita | $ | 42.05 | $ | 42.75 | (1.6) | % | ||||||
In-Park per capita spending | $ | 34.85 | $ | 34.30 | 1.6 | % | ||||||
First Nine Months 2023 Results
In the primary 9 months of 2023, the Company hosted roughly 16.6 million company, generated complete revenues of $1,337.6 million, web revenue of $194.1 million and Adjusted EBITDA of $563.1 million. Attendance decreased roughly 356,000 company when in comparison with the primary 9 months of 2022. The lower in attendance was primarily resulting from considerably opposed climate, together with some mixture of bizarre warmth, chilly, rain and/or the fall-out from Canadian wildfires, throughout most of our markets, together with throughout peak visitation durations.
The lower in complete income of $3.1 million in comparison with the primary 9 months of 2022 was primarily a results of a decline in attendance, partially offset by will increase in admission per capita (outlined as admissions income divided by complete attendance) and in-park per capita spending (outlined as meals, merchandise and different income divided by complete attendance). Admission per capita elevated primarily as a result of realization of upper costs in our admission merchandise ensuing from our strategic pricing efforts, which was partially offset by the affect of the admissions product combine when in comparison with the primary 9 months of 2022. In park per capita spending improved primarily resulting from pricing initiatives and a rise in income associated to our worldwide companies agreements when in comparison with the primary 9 months of 2022, partially offset by elements together with climate, the admissions product combine, closures and disruption associated to development delays at sure in park areas. Adjusted EBITDA was negatively impacted primarily resulting from elevated labor associated prices and a lower in income.
Nine Months Ended September 30, | Change | |||||||||||
2023 | 2022 | % | ||||||||||
(In hundreds of thousands, besides per share and per capita quantities) | ||||||||||||
Total revenues | $ | 1,337.6 | $ | 1,340.7 | (0.2) | % | ||||||
Net revenue | $ | 194.1 | $ | 242.2 | (19.8) | % | ||||||
Earnings per share, diluted | $ | 3.01 | $ | 3.36 | (10.4) | % | ||||||
Adjusted EBITDA | $ | 563.1 | $ | 574.6 | (2.0) | % | ||||||
Net money supplied by working actions | $ | 398.5 | $ | 468.9 | (15.0) | % | ||||||
Attendance | 16.6 | 17.0 | (2.1) | % | ||||||||
Total income per capita | $ | 80.36 | $ | 78.86 | 1.9 | % | ||||||
Admission per capita | $ | 44.07 | $ | 43.52 | 1.3 | % | ||||||
In-Park per capita spending | $ | 36.29 | $ | 35.34 | 2.7 | % | ||||||
Share Repurchases
During the third quarter, the Company repurchased 78,750 shares for an combination complete of roughly $3.9 million, leaving roughly $38.5 million remaining below the Share Repurchase Program as of September 30, 2023.
Rescue Efforts
In the third quarter of 2023, the Company got here to the help of 56 animals in want within the wild. The complete variety of animals the Company has helped over its historical past is greater than 40,000.
The Company is without doubt one of the largest marine animal rescue organizations on the planet. Working in partnership with state, native and federal companies, the Company’s rescue groups are on name 24 hours a day, seven days per week, three hundred and sixty five days a 12 months. Consistent with its mission to guard animals and their ecosystems, rescue groups mobilize and sometimes journey tons of of miles to assist sick, injured, orphaned or deserted wild animals in want of the Company’s skilled care, with the objective of returning them to their pure habitat. It’s parks additionally present long run care to animals deemed by wildlife authorities as unable to outlive on their very own and for animals seized from wildlife trafficking.
Conference Call
The Company will maintain a convention name at this time, Wednesday, November 8, 2023, at 9 a.m. Eastern Time to debate its third quarter and first 9 months of fiscal 2023 monetary outcomes. The convention name shall be broadcast reside on the Internet and the discharge and convention name may be accessed by way of the Company’s web site at www.SeaWorldInvestors.com. For these unable to take part within the reside webcast, a replay shall be out there starting at roughly 12 p.m. Eastern Time on November 8, 2023, below the “Events & Presentations” tab of www.SeaWorldInvestors.com. A replay of the decision may also be accessed telephonically from 12 p.m. Eastern Time on November 8, 2023, by 11:59 p.m. Eastern Time on November 15, 2023, by dialing (877) 344-7529 from wherever within the U.S., (855) 669-9658 from wherever in Canada, or (412) 317-0088 from worldwide areas and getting into the convention code 2663472.
Statement Regarding Non-GAAP Financial Measures
This earnings launch and accompanying monetary assertion tables embrace a number of non-GAAP monetary measures, together with Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow. Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow aren’t acknowledged phrases below GAAP, shouldn’t be thought-about in isolation or as an alternative to a measure of monetary efficiency or liquidity ready in accordance with GAAP and aren’t indicative of web revenue or loss or web money supplied by working actions as decided below GAAP.
Adjusted EBITDA, Covenant Adjusted EBITDA, Free Cash Flow and different non-GAAP monetary measures have limitations that must be thought-about earlier than utilizing these measures to guage an organization’s monetary efficiency or liquidity. Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow as offered, will not be corresponding to equally titled measures of different firms resulting from various strategies of calculation.
Management believes the presentation of Adjusted EBITDA is acceptable because it eliminates the impact of sure non-cash and different objects not essentially indicative of the Company’s underlying working efficiency. Management makes use of Adjusted EBITDA in reference to sure elements of its government compensation program. In addition, traders, lenders, monetary analysts and score companies have traditionally used EBITDA-related measures within the Company’s trade, together with different measures, to estimate the worth of an organization, to make knowledgeable funding choices and to guage firms within the trade.
Management believes the presentation of Covenant Adjusted EBITDA for the final twelve months is acceptable because it supplies further data to traders concerning the calculation of, and compliance with, sure monetary covenants within the Company’s credit score settlement governing its Senior Secured Credit Facilities and the indentures governing its Senior Notes and First-Priority Senior Secured Notes (collectively, the “Debt Agreements”). Covenant Adjusted EBITDA is a fabric part of those covenants.
Management believes that Free Cash Flow is helpful to traders, fairness analysts and score companies as a liquidity measure. The Company makes use of Free Cash Flow to guage its potential to generate money stream from enterprise operations. Free Cash Flow doesn’t symbolize the residual money stream out there for discretionary expenditures, because it excludes sure expenditures akin to necessary debt service necessities, that are important. Free Cash Flow isn’t outlined by GAAP and shouldn’t be thought-about in isolation or as an alternative choice to web money supplied by (utilized in) working, investing and financing actions or different monetary information ready in accordance with GAAP. Free Cash Flow as outlined above might differ from equally titled measures offered by different firms.
This earnings launch contains a number of key efficiency metrics together with complete income per capita (outlined as complete income divided by attendance), admission per capita (outlined as admissions income divided by attendance) and in-park per capita spending (outlined as meals, merchandise and different income divided by attendance). These efficiency metrics are utilized by administration to evaluate the working efficiency of its parks on a per attendee foundation and to make strategic working choices. Management believes the presentation of those efficiency metrics is helpful and related for traders because it supplies traders the flexibility to evaluate monetary efficiency in the identical method as administration and supplies traders with a constant methodology to research income between durations on a per attendee foundation. In addition, traders, lenders, monetary analysts and score companies have traditionally used comparable per-capita associated efficiency metrics to guage firms within the trade.
About SeaWorld Entertainment, Inc.
SeaWorld Entertainment, Inc. (NYSE: SEAS) is a number one theme park and leisure firm offering experiences that matter, and galvanizing company to guard animals and the wild wonders of our world. The Company is without doubt one of the world’s foremost zoological organizations and a world chief in animal welfare, coaching, husbandry and veterinary care. The Company collectively cares for what it believes is without doubt one of the largest zoological collections on the planet and has helped lead advances within the care of animals. The Company additionally rescues and rehabilitates marine and terrestrial animals which might be sick, injured, orphaned or deserted, with the objective of returning them to the wild. The SeaWorld® rescue crew has helped over 40,000 animals in want over the Company’s historical past. SeaWorld Entertainment, Inc. owns or licenses a portfolio of acknowledged manufacturers together with SeaWorld®, Busch Gardens®, Aquatica®, Sesame Place® and Sea Rescue®. Over its greater than 60-year historical past, the Company has constructed a diversified portfolio of 12 vacation spot and regional theme parks which might be grouped in key markets throughout the United States, a lot of which showcase its one-of-a-kind zoological assortment. The Company’s theme parks function a various array of rides, reveals and different points of interest with broad demographic enchantment which ship memorable experiences and a powerful worth proposition for its company.
Copies of this and different information releases in addition to further details about SeaWorld Entertainment, Inc. may be obtained on-line at www.seaworldentertainment.com. Shareholders and potential traders also can register to robotically obtain the Company’s press releases, SEC filings and different notices by e-mail by registering at that web site.
Forward-Looking Statements
In addition to historic data, this press launch comprises statements referring to future outcomes (together with sure projections and enterprise developments) which might be “forward-looking statements” throughout the which means of the federal securities legal guidelines. The Company typically makes use of the phrases akin to “might,” “will,” “may,” “should,” “estimates,” “expects,” “continues,” “contemplates,” “anticipates,” “projects,” “plans,” “potential,” “predicts,” “intends,” “believes,” “forecasts,” “future,” “guidance,” “targeted,” “goal” and variations of such phrases or comparable expressions on this press launch and any attachment to establish forward-looking statements. All statements, apart from statements of historic info included on this press launch, together with statements regarding plans, aims, objectives, expectations, beliefs, enterprise methods, future occasions, enterprise situations, outcomes of operations, monetary place, enterprise outlook, earnings steering, enterprise developments and different data are forward-looking statements. The forward-looking statements aren’t historic info, and are based mostly upon present expectations, beliefs, estimates and projections, and varied assumptions, a lot of which, by their nature, are inherently unsure and past administration’s management. All expectations, beliefs, estimates and projections are expressed in good religion and the Company believes there’s a cheap foundation for them. However, there may be no assurance that administration’s expectations, beliefs, estimates and projections will outcome or be achieved and precise outcomes might differ materially from what’s expressed in or indicated by the forward-looking statements. These forward-looking statements are topic to quite a lot of dangers, uncertainties and different vital elements, a lot of that are past administration’s management, that might trigger precise outcomes to vary materially from the forward-looking statements contained on this press launch, together with amongst others: a decline in discretionary shopper spending or shopper confidence, together with any unfavorable impacts from Federal Reserve rate of interest actions and inflation which can affect discretionary spending, unemployment or the general economic system; varied elements past the Company’s management adversely affecting attendance and visitor spending at its theme parks, together with, however not restricted to, climate, pure disasters, labor shortages, inflationary pressures, provide chain delays or shortages, overseas change charges, shopper confidence, the potential unfold of travel-related well being issues together with pandemics and epidemics, journey associated issues, opposed normal financial associated elements together with growing rates of interest, financial uncertainty, and up to date geopolitical occasions outdoors of the United States, and governmental actions; failure to rent and/or retain staff; elevated labor prices, together with minimal wage will increase, and worker well being and welfare profit prices; complicated federal and state rules governing the remedy of animals, which may change, and claims and lawsuits by activist teams earlier than authorities regulators and within the courts; activist and different third-party teams and/or media can stress governmental companies, distributors, companions, company and/or regulators, deliver motion within the courts or create destructive publicity about us; incidents or opposed publicity in regards to the Company’s theme parks, the theme park trade and/or zoological amenities; a good portion of the Company’s revenues have traditionally been generated within the States of Florida, California and Virginia, and any dangers affecting such markets, akin to pure disasters, closures resulting from pandemics, extreme climate and travel-related disruptions or incidents; expertise interruptions or failures that impair entry to the Company’s web sites and/or data expertise programs; cyber safety dangers to the Company or the Company third-party service suppliers, failure to keep up or shield the integrity of inner, worker or visitor information, and/or failure to abide by the evolving cyber safety regulatory setting; lack of ability to compete successfully within the extremely aggressive theme park trade; interactions between animals and the Company’s staff and it is company at points of interest on the Company’s theme parks; animal publicity to infectious illness; excessive mounted value construction of theme park operations; seasonal fluctuations in working outcomes; altering shopper tastes and preferences; lack of ability to remediate an recognized materials weak point on a well timed foundation; lack of ability to develop the Company’s enterprise or fund theme park capital expenditures; lack of ability to understand the advantages of developments, restructurings, acquisitions or different strategic initiatives, and the affect of the prices related to such actions; the consequences of the worldwide Coronavirus (“COVID-19”) pandemic, or any associated mutations of the virus on the Company’s enterprise and the economic system normally; opposed litigation judgments or settlements; lack of ability to guard the Company’s mental property or the infringement on mental property rights of others; the lack of licenses and permits required to exhibit animals or the violation of legal guidelines and rules; unionization actions and/or labor disputes; lack of ability to keep up sure business licenses; restrictions within the Company’s debt agreements limiting flexibility in working the Company’s enterprise; lack of ability to retain the Company’s present credit score rankings; the Company’s leverage and rate of interest danger; the flexibility of Hill Path Capital LP and its associates to considerably affect the Company’s choices and their pursuits might battle with the Company or yours sooner or later; insufficient insurance coverage protection; lack of ability to buy or contract with third get together producers for rides and points of interest, development delays or impacts of provide chain disruptions on current or new rides and points of interest; environmental rules, expenditures and liabilities; suspension or termination of any of the Company’s enterprise licenses, together with by laws at federal, state or native ranges; delays, restrictions or lack of ability to acquire or keep permits; monetary misery of strategic companions or different counterparties; tariffs or different commerce restrictions; actions of activist stockholders; the insurance policies of the U.S. President and his administration or any modifications to tax legal guidelines; modifications or declines within the Company’s inventory value, in addition to the danger that securities analysts may downgrade the Company’s inventory or the Company’s sector; dangers related to the Company’s capital allocation plans and share repurchases, together with the danger that the Company’s share repurchase program may improve volatility and fail to reinforce stockholder worth and different dangers, uncertainties and elements set forth within the part entitled “Risk Factors” within the Company’s most lately out there Annual Report on Form 10-Okay, as such dangers, uncertainties and elements could also be up to date within the Company’s periodic filings with the Securities and Exchange Commission (“SEC”). Although the Company believes that these statements are based mostly upon cheap assumptions, it can’t assure future outcomes and readers are cautioned to not place undue reliance on these forward-looking statements, which replicate administration’s opinions solely as of the date of this press launch. There may be no assurance that (i) the Company has accurately measured or recognized the entire elements affecting its enterprise or the extent of those elements’ doubtless affect, (ii) the out there data with respect to those elements on which such evaluation is predicated is full or correct, (iii) such evaluation is appropriate or (iv) the Company’s technique, which is predicated partly on this evaluation, shall be profitable. Except as required by legislation, the Company undertakes no obligation to replace or revise forward-looking statements to replicate new data or occasions or circumstances that happen after the date of this press launch or to replicate the prevalence of unanticipated occasions or in any other case. Readers are suggested to evaluate the Company’s filings with the SEC (which can be found from the SEC’s EDGAR database at www.sec.gov and by way of the Company’s web site at www.seaworldinvestors.com).
CONTACT:
Investor Relations:
Matthew Stroud
Investor Relations
[email protected]
Media:
Lisa Cradit
SVP – Head of Communications
(646) 245-2476
[email protected]
Libby Panke
FleishmanHillard
(314) 719-7521
[email protected]
SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In 1000’s, besides per share quantities) | ||||||||||||||||||||||||||||||||
For the Three Months | Change | For the Nine Months | Change | |||||||||||||||||||||||||||||
2023 | 2022 | $ | % | 2023 | 2022 | $ | % | |||||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||||||||||
Admissions | $ | 299,785 | $ | 313,574 | $ | (13,789) | (4.4) | % | $ | 733,542 | $ | 739,941 | $ | (6,399) | (0.9) | % | ||||||||||||||||
Food, merchandise and different | 248,462 | 251,633 | (3,171) | (1.3) | % | 604,080 | 600,776 | 3,304 | 0.5 | % | ||||||||||||||||||||||
Total revenues | 548,247 | 565,207 | (16,960) | (3.0) | % | 1,337,622 | 1,340,717 | (3,095) | (0.2) | % | ||||||||||||||||||||||
Costs and bills: | ||||||||||||||||||||||||||||||||
Cost of meals, merchandise and different revenues | 40,431 | 41,385 | (954) | (2.3) | % | 101,862 | 105,943 | (4,081) | (3.9) | % | ||||||||||||||||||||||
Operating bills (unique of depreciation and | 205,808 | 215,899 | (10,091) | (4.7) | % | 574,210 | 559,320 | 14,890 | 2.7 | % | ||||||||||||||||||||||
Selling, normal and administrative bills | 59,705 | 53,082 | 6,623 | 12.5 | % | 176,152 | 155,299 | 20,853 | 13.4 | % | ||||||||||||||||||||||
Severance and different separation prices (a) | (139) | — | (139) | NM | 521 | 113 | 408 | NM | ||||||||||||||||||||||||
Depreciation and amortization | 39,171 | 37,216 | 1,955 | 5.3 | % | 114,396 | 114,379 | 17 | 0.0 | % | ||||||||||||||||||||||
Total prices and bills | 344,976 | 347,582 | (2,606) | (0.7) | % | 967,141 | 935,054 | 32,087 | 3.4 | % | ||||||||||||||||||||||
Operating revenue | 203,271 | 217,625 | (14,354) | (6.6) | % | 370,481 | 405,663 | (35,182) | (8.7) | % | ||||||||||||||||||||||
Other (revenue) expense, web | (21) | (66) | 45 | 68.2 | % | 20 | (110) | 130 | NM | |||||||||||||||||||||||
Interest expense | 37,052 | 30,556 | 6,496 | 21.3 | % | 110,407 | 82,736 | 27,671 | 33.4 | % | ||||||||||||||||||||||
Income earlier than revenue taxes | 166,240 | 187,135 | (20,895) | (11.2) | % | 260,054 | 323,037 | (62,983) | (19.5) | % | ||||||||||||||||||||||
Provision for revenue taxes | 42,685 | 52,578 | (9,893) | (18.8) | % | 65,911 | 80,857 | (14,946) | (18.5) | % | ||||||||||||||||||||||
Net revenue | $ | 123,555 | $ | 134,557 | $ | (11,002) | (8.2) | % | $ | 194,143 | $ | 242,180 | $ | (48,037) | (19.8) | % | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Earnings per share, fundamental | $ | 1.93 | $ | 2.00 | $ | 3.04 | $ | 3.39 | ||||||||||||||||||||||||
Earnings per share, diluted | $ | 1.92 | $ | 1.99 | $ | 3.01 | $ | 3.36 | ||||||||||||||||||||||||
Weighted common widespread shares | ||||||||||||||||||||||||||||||||
Basic | 63,954 | 67,176 | 63,955 | 71,450 | ||||||||||||||||||||||||||||
Diluted (b) | 64,319 | 67,569 | 64,425 | 72,130 | ||||||||||||||||||||||||||||
SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In 1000’s) | ||||||||||||||||||||||||||||
For the Three Months | Change | For the Nine Months | Change | Last Twelve | ||||||||||||||||||||||||
2023 | 2022 | # | 2023 | 2022 | # | 2023 | ||||||||||||||||||||||
Net revenue | $ | 123,555 | $ | 134,557 | $ | (11,002) | $ | 194,143 | $ | 242,180 | $ | (48,037) | $ | 243,153 | ||||||||||||||
Provision for revenue taxes | 42,685 | 52,578 | (9,893) | 65,911 | 80,857 | (14,946) | 83,937 | |||||||||||||||||||||
Interest expense | 37,052 | 30,556 | 6,496 | 110,407 | 82,736 | 27,671 | 145,172 | |||||||||||||||||||||
Depreciation and amortization | 39,171 | 37,216 | 1,955 | 114,396 | 114,379 | 17 | 152,637 | |||||||||||||||||||||
Equity-based compensation expense (c) | 4,644 | 4,472 | 172 | 13,715 | 15,554 | (1,839) | 17,918 | |||||||||||||||||||||
Loss on impairment or disposal of belongings and sure non- | 8,723 | 3,540 | 5,183 | 22,985 | 12,555 | 10,430 | 24,648 | |||||||||||||||||||||
Business optimization, improvement and strategic | 6,662 | 4,656 | 2,006 | 28,191 | 14,050 | 14,141 | 33,987 | |||||||||||||||||||||
Certain funding prices and different taxes | 1,147 | 53 | 1,094 | 1,309 | 1,053 | 256 | 1,384 | |||||||||||||||||||||
COVID-19 associated incremental prices (f) | 1,092 | 4,957 | (3,865) | 8,760 | 5,930 | 2,830 | 9,519 | |||||||||||||||||||||
Other adjusting objects (g) | 1,666 | 1,598 | 68 | 3,239 | 5,275 | (2,036) | 4,377 | |||||||||||||||||||||
Adjusted EBITDA (h) | $ | 266,397 | $ | 274,183 | $ | (7,786) | $ | 563,056 | $ | 574,569 | $ | (11,513) | $ | 716,732 | ||||||||||||||
Items added again to Covenant Adjusted EBITDA as | ||||||||||||||||||||||||||||
Estimated value financial savings (i) | 25,200 | |||||||||||||||||||||||||||
Other changes as outlined within the Debt Agreements (j) | 6,522 | |||||||||||||||||||||||||||
Covenant Adjusted EBITDA (okay) | $ | 748,454 | ||||||||||||||||||||||||||
For the Three Months | Change | For the Nine Months | Change | |||||||||||||||||||||
2023 | 2022 | # | 2023 | 2022 | # | |||||||||||||||||||
Net money supplied by working actions | $ | 163,556 | $ | 169,240 | $ | (5,684) | $ | 398,457 | $ | 468,874 | $ | (70,417) | ||||||||||||
Capital expenditures | 88,631 | 49,681 | 38,950 | 234,218 | 150,729 | 83,489 | ||||||||||||||||||
Free Cash Flow (l) | $ | 74,925 | $ | 119,559 | $ | (44,634) | $ | 164,239 | $ | 318,145 | $ | (153,906) | ||||||||||||
SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED BALANCE SHEET DATA (In 1000’s) | ||||||||
As of September 30, | As of December 31, | |||||||
Cash and money equivalents | $ | 215,226 | $ | 79,196 | ||||
Total belongings | $ | 2,575,542 | $ | 2,325,787 | ||||
Deferred income | $ | 161,082 | $ | 169,535 | ||||
Long-term debt, together with present maturities: | ||||||||
Term B Loans | 1,176,000 | 1,185,000 | ||||||
Senior Notes | 725,000 | 725,000 | ||||||
First-Priority Senior Secured Notes | 227,500 | 227,500 | ||||||
Total long-term debt, together with present maturities | $ | 2,128,500 | $ | 2,137,500 | ||||
Total stockholders’ deficit | $ | (252,396) | $ | (437,664) | ||||
SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED CAPITAL EXPENDITURES DATA (In 1000’s) | |||||||||||||||||
For the Nine Months Ended | Change | ||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||
Capital Expenditures: | |||||||||||||||||
Core (m) | $ | 156,060 | $ | 100,197 | $ | 55,863 | 55.8 | % | |||||||||
Expansion/ROI initiatives(n) | 78,158 | 50,532 | 27,626 | 54.7 | % | ||||||||||||
Capital expenditures, complete | $ | 234,218 | $ | 150,729 | $ | 83,489 | 55.4 | % | |||||||||
SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED OTHER DATA (In 1000’s, besides per capita quantities) | ||||||||||||||||||||||||||||||||
For the Three | Change | For the Nine Months | Change | |||||||||||||||||||||||||||||
2023 | 2022 | # | % | 2023 | 2022 | # | % | |||||||||||||||||||||||||
Attendance | 7,129 | 7,336 | (207) | (2.8) | % | 16,646 | 17,002 | (356) | (2.1) | % | ||||||||||||||||||||||
Total income per capita (o) | $ | 76.90 | $ | 77.05 | $ | (0.15) | (0.2) | % | $ | 80.36 | $ | 78.86 | $ | 1.50 | 1.9 | % | ||||||||||||||||
Admission per capita (p) | $ | 42.05 | $ | 42.75 | $ | (0.70) | (1.6) | % | $ | 44.07 | $ | 43.52 | $ | 0.55 | 1.3 | % | ||||||||||||||||
In-Park per capita spending (q) | $ | 34.85 | $ | 34.30 | $ | 0.55 | 1.6 | % | $ | 36.29 | $ | 35.34 | $ | 0.95 | 2.7 | % | ||||||||||||||||
NM-Not significant. | |
(a) | Reflects restructuring and different separation prices and/or changes. |
(b) | During the three and 9 months ended September 30, 2023, there have been roughly 491,000 and 424,000 anti-dilutive shares excluded from the computation of diluted earnings per share, respectively. During the three and 9 months ended September 30, 2022, there have been roughly 328,000 and 246,000 anti-dilutive shares excluded from the computation of diluted earnings per share, respectively. |
(c) | Reflects non-cash fairness compensation bills and associated payroll taxes related to the grants of equity-based compensation. |
(d) | Reflects primarily non-cash self-insurance reserve changes of: (i) roughly $4.8 million for the three months ended September 30, 2023; (ii) roughly $11.8 million for the 9 and twelve months ended September 30, 2023, respectively; and (iii) roughly $2.6 million and $6.5 million for the three and 9 months ended September 30, 2022, respectively. Also contains non-cash bills associated to miscellaneous mounted asset disposals together with asset write-offs and prices, together with roughly $4.5 million for the three months ended September 30, 2023 and $6.5 million for the 9 and twelve months ended September 30, 2023 in disposals related to sure rides and gear which have been faraway from service. |
(e) | For the three, 9, and twelve months ended September 30, 2023, displays enterprise optimization, improvement and different strategic initiative prices primarily associated to: (i) $3.1 million, $17.1 million, and $19.3 million, respectively of third-party consulting prices and (ii) $3.6 million, $9.7 million, and $12.9 million, respectively of different enterprise optimization prices and strategic initiative prices. For the three and 9 months ended September 30, 2022, displays enterprise optimization, improvement and different strategic initiative prices primarily associated to: (i) $2.5 million and $7.6 million, respectively of third-party consulting prices and (ii) $1.8 million and $5.6 million, respectively of different enterprise optimization prices and strategic initiative prices. |
(f) | For the three, 9, and twelve months ended September 30, 2023, primarily displays prices related to sure authorized issues, nonrecurring contractual liabilities and respective assessments associated to the beforehand disclosed short-term COVID-19 park closures. For the three and 9 months ended September 30, 2022, contains roughly $4.1 million of sure authorized issues associated to the short-term COVID-19 park closures. |
(g) | Reflects the affect of bills, web of insurance coverage recoveries and changes, incurred primarily associated to sure issues, which the Company is permitted to exclude below the credit score settlement governing the Company’s Senior Secured Credit Facilities as a result of uncommon nature of the objects. For the 9 months ended September 30, 2022, contains $3.6 million associated to a authorized settlement. |
(h) | Adjusted EBITDA is outlined as web revenue (loss) earlier than revenue tax expense, curiosity expense, depreciation and amortization, as additional adjusted to exclude sure non-cash, and different objects as described above. |
(i) | The Company’s Debt Agreements allow the calculation of sure covenants to be based mostly on Covenant Adjusted EBITDA, as outlined above, for the final twelve month interval additional adjusted for web annualized estimated financial savings the Company expects to understand over the next 24 month interval associated to sure specified actions, together with restructurings and price financial savings initiatives. These estimated financial savings are calculated web of the quantity of precise advantages realized throughout such interval. These estimated financial savings are a non-GAAP Adjusted EBITDA add-back merchandise solely as outlined within the Debt Agreements and doesn’t affect the Company’s reported GAAP web revenue. |
(j) | The Debt Agreements allow the Company’s calculation of sure covenants to be based mostly on Covenant Adjusted EBITDA as outlined above, for the final twelve-month interval additional adjusted for sure prices as permitted by the Debt Agreements together with recruiting and retention bills, public firm compliance prices and litigation and arbitration prices, if any. |
(okay) | Covenant Adjusted EBITDA is outlined within the Debt Agreements as Adjusted EBITDA for the final twelve-month interval additional adjusted for web annualized estimated financial savings amongst different changes as described in footnote (i) and (j) above. |
(l) | Free Cash Flow is outlined as web money supplied by working actions much less capital expenditures. |
(m) | Reflects capital expenditures throughout the respective interval for park rides, points of interest and upkeep actions. |
(n) | Reflects capital expenditures throughout the respective interval for park growth, new properties, income and/or expense return on funding (“ROI”) initiatives. |
(o) | Calculated as complete revenues divided by attendance. |
(p) | Calculated as admissions income divided by attendance. |
(q) | Calculated as meals, merchandise and different income divided by attendance. |
SOURCE SeaWorld Entertainment, Inc.
