ORLANDO,
Fla., Nov. 8, 2023 /PRNewswire/ -- SeaWorld
Entertainment, Inc. (NYSE: SEAS), a leading theme park and
entertainment company, today reported its financial results for the
third quarter and first nine months of fiscal year 2023.
Third Quarter 2023 Highlights
- Attendance was 7.1 million guests, a decrease of approximately
0.2 million guests or 2.8% from the third quarter of 2022.
- Total revenue was $548.2 million,
a decrease of $17.0 million or 3.0%
from the third quarter of 2022.
- Net income was $123.6 million, a
decrease of $11.0 million or 8.2%
from the third quarter of 2022.
- Adjusted EBITDA[1] was $266.4
million, a decrease of $7.8
million or 2.8% from the third quarter of 2022.
- Total revenue 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 while in-park per capita
spending[2] increased 1.6% to a record $34.85 from the third quarter of 2022.
First Nine Months 2023 Highlights
- Attendance was 16.6 million guests, a decrease of 0.4 million
guests or 2.1% from the first nine months of 2022.
- Total revenue was $1,337.6
million, a decrease of $3.1
million or 0.2% from the first nine months of 2022.
- Net income was $194.1 million, a
decrease of $48.0 million or 19.8%
from the first nine months of 2022.
- Adjusted EBITDA was $563.1
million, a decrease of $11.5
million or 2.0% from the first nine months of 2022.
- Total revenue per capita increased 1.9% to a record
$80.36 from the first nine months of
2022. Admission per capita increased 1.3% to a record
$44.07, while in-park per capita
spending increased 2.7% to a record $36.29 from the first nine months of
2022.
Other Highlights
- Total per capita spending was up low single-digits in October.
On a comparable day over comparable day basis adjusting for
the calendar shift that resulted in one less Saturday compared to
prior year, the Company estimates revenue and attendance would have
been up low single-digits.
- During the third quarter, the Company repurchased 78,750 shares
for an aggregate total of approximately $3.9
million, leaving approximately $38.5
million remaining under the Share Repurchase Program as of
September 30, 2023.
- During the third quarter of 2023, the Company came to the aid
of 56 animals in need in the wild. The total number of animals the
Company has helped over its history is more 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."
said 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,"
said 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 just completed another successful Halloween season at our
parks featuring our award-winning Halloween events. We are
pleased to have grown per capita spending in October and after
adjusting for the calendar shift that resulted in one less Saturday
compared to prior year, we estimate attendance and revenue would
have grown as well. We are proud of the continued strength of our
Halloween events and the popularity that they continue to build
with our guests. As we enter the holiday season, we will
begin our award-winning Christmas events at most of our SeaWorld,
Busch Gardens and Sesame parks later this week. Our Christmas
events feature exciting live entertainment, delicious and unique
food and beverage offerings and holiday shopping for guests of all
ages.
[1] This
earnings release includes Adjusted EBITDA, Covenant Adjusted EBITDA
and Free Cash Flow which are financial measures that are not
calculated in accordance with Generally Accepted Accounting
Principles in the U.S. ("GAAP"). See "Statement Regarding Non-GAAP
Financial Measures and Key Performance Metrics" section and the
financial statement tables for the definitions of Adjusted EBITDA,
Covenant Adjusted EBITDA and Free Cash Flow and the reconciliation
of these measures for historical periods to their respective most
comparable financial measures calculated in accordance with
GAAP.
|
[2] This
earnings release includes key performance metrics such as total
revenue per capita, admissions per capita and in-park per capita
spending. See "Statement Regarding Non-GAAP Financial
Measures and Key Performance Metrics" section for definitions and
further details.
|
"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 announced its partial line-up of new rides,
attractions, events and upgrades for 2024. This line-up
includes, among others:
- Penguin Trek, an unforgettable family launch coaster
adventure at SeaWorld Orlando
- Phoenix Rising, a suspended roller coaster at Busch
Gardens Tampa Bay
- A fully restored Loch Ness Monster coaster with
all-new thematic and experiential elements 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 results of operations for the first nine months of
fiscal 2023 and 2022 continued to be impacted by the global
COVID-19 pandemic due in part to a decline in international
attendance from historical levels.
Third Quarter 2023 Results
In the third quarter of 2023, the Company hosted approximately
7.1 million guests, generated total revenues of $548.2 million, net income of $123.6 million and Adjusted EBITDA of
$266.4 million. Attendance decreased
approximately 207,000 guests when compared to the third quarter of
2022. The decrease in attendance was primarily due to significantly
adverse weather, including some combination of unusual heat and/or
rain, across most of our markets, including during peak visitation
periods.
The decrease in total revenue of $17.0
million compared to the third quarter of 2022 was primarily
a result of a decline in attendance, partially offset by an
increase in in-park per capita spending (defined as food,
merchandise and other revenue divided by total attendance).
Admission per capita decreased primarily due to the net impact of
the admissions product mix, partially offset by the realization of
higher prices in our admission products resulting from our
strategic pricing efforts when compared to the prior year quarter.
In park per capita spending improved primarily due to pricing
initiatives, partially offset by factors including weather, the
admissions product mix, closures and disruption related to
construction delays at certain in park locations when compared to
the third quarter of 2022. Adjusted EBITDA was impacted primarily
by a decrease in revenue.
|
|
Three Months Ended
September 30,
|
|
|
Change
|
|
|
|
2023
|
|
|
2022
|
|
|
%
|
|
(In millions,
except per share and per capita amounts)
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$
|
548.2
|
|
|
$
|
565.2
|
|
|
|
(3.0)
|
%
|
Net income
|
|
$
|
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 cash provided by
operating activities
|
|
$
|
163.6
|
|
|
$
|
169.2
|
|
|
|
(3.4)
|
%
|
Attendance
|
|
|
7.1
|
|
|
|
7.3
|
|
|
|
(2.8)
|
%
|
Total revenue 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 first nine months of 2023, the Company hosted
approximately 16.6 million guests, generated total revenues of
$1,337.6 million, net income of
$194.1 million and Adjusted EBITDA of
$563.1 million. Attendance decreased
approximately 356,000 guests when compared to the first nine months
of 2022. The decrease in attendance was primarily due to
significantly adverse weather, including some combination of
unusual heat, cold, rain and/or the fall-out from Canadian
wildfires, across most of our markets, including during peak
visitation periods.
The decrease in total revenue of $3.1
million compared to the first nine months of 2022 was
primarily a result of a decline in attendance, partially offset by
increases in admission per capita (defined as admissions revenue
divided by total attendance) and in-park per capita spending
(defined as food, merchandise and other revenue divided by total
attendance). Admission per capita increased primarily due to the
realization of higher prices in our admission products resulting
from our strategic pricing efforts, which was partially offset by
the impact of the admissions product mix when compared to the first
nine months of 2022. In park per capita spending improved primarily
due to pricing initiatives and an increase in revenue related to
our international services agreements when compared to the first
nine months of 2022, partially offset by factors including weather,
the admissions product mix, closures and disruption related to
construction delays at certain in park locations. Adjusted EBITDA
was negatively impacted primarily due to increased labor related
costs and a decrease in revenue.
|
|
Nine Months Ended
September 30,
|
|
|
Change
|
|
|
|
2023
|
|
|
2022
|
|
|
%
|
|
(In millions,
except per share and per capita amounts)
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$
|
1,337.6
|
|
|
$
|
1,340.7
|
|
|
|
(0.2)
|
%
|
Net income
|
|
$
|
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 cash provided by
operating activities
|
|
$
|
398.5
|
|
|
$
|
468.9
|
|
|
|
(15.0)
|
%
|
Attendance
|
|
|
16.6
|
|
|
|
17.0
|
|
|
|
(2.1)
|
%
|
Total revenue 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 aggregate total of approximately $3.9
million, leaving approximately $38.5
million remaining under the Share Repurchase Program as of
September 30, 2023.
Rescue Efforts
In the third quarter of 2023, the Company came to the aid of 56
animals in need in the wild. The total number of animals the
Company has helped over its history is more than 40,000.
The Company is one of the largest marine animal rescue
organizations in the world. Working in partnership with
state, local and federal agencies, the Company's rescue teams are
on call 24 hours a day, seven days a week, 365 days a year.
Consistent with its mission to protect animals and their
ecosystems, rescue teams mobilize and often travel hundreds of
miles to help ill, injured, orphaned or abandoned wild animals in
need of the Company's expert care, with the goal of returning them
to their natural habitat. It's parks also provide long term
care to animals deemed by wildlife authorities as unable to survive
on their own and for animals seized from wildlife trafficking.
Conference Call
The Company will hold a conference call today, Wednesday, November 8, 2023, at 9 a.m. Eastern Time to discuss its third quarter
and first nine months of fiscal 2023 financial results. The
conference call will be broadcast live on the Internet and the
release and conference call can be accessed via the Company's
website at www.SeaWorldInvestors.com. For those unable
to participate in the live webcast, a replay will be available
beginning at approximately 12 p.m. Eastern
Time on November 8, 2023,
under the "Events & Presentations" tab of
www.SeaWorldInvestors.com. A replay of the call can also be
accessed telephonically from 12 p.m. Eastern
Time on November 8, 2023,
through 11:59 p.m. Eastern Time on
November 15, 2023, by dialing (877)
344-7529 from anywhere in the U.S., (855) 669-9658 from anywhere in
Canada, or (412) 317-0088 from
international locations and entering the conference code
2663472.
Statement Regarding Non-GAAP Financial Measures
This earnings release and accompanying financial statement
tables include several non-GAAP financial measures, including
Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow.
Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow are
not recognized terms under GAAP, should not be considered in
isolation or as a substitute for a measure of financial performance
or liquidity prepared in accordance with GAAP and are not
indicative of net income or loss or net cash provided by operating
activities as determined under GAAP.
Adjusted EBITDA, Covenant Adjusted EBITDA, Free Cash Flow and
other non-GAAP financial measures have limitations that should be
considered before using these measures to evaluate a company's
financial performance or liquidity. Adjusted EBITDA, Covenant
Adjusted EBITDA and Free Cash Flow as presented, may not be
comparable to similarly titled measures of other companies due to
varying methods of calculation.
Management believes the presentation of Adjusted EBITDA is
appropriate as it eliminates the effect of certain non-cash and
other items not necessarily indicative of the Company's underlying
operating performance. Management uses Adjusted EBITDA in
connection with certain components of its executive compensation
program. In addition, investors, lenders, financial analysts and
rating agencies have historically used EBITDA-related measures in
the Company's industry, along with other measures, to estimate the
value of a company, to make informed investment decisions and to
evaluate companies in the industry.
Management believes the presentation of Covenant Adjusted EBITDA
for the last twelve months is appropriate as it provides additional
information to investors about the calculation of, and compliance
with, certain financial covenants in the Company's credit agreement
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 material component of these covenants.
Management believes that Free Cash Flow is useful to investors,
equity analysts and rating agencies as a liquidity measure. The
Company uses Free Cash Flow to evaluate its ability to generate
cash flow from business operations. Free Cash Flow does not
represent the residual cash flow available for discretionary
expenditures, as it excludes certain expenditures such as mandatory
debt service requirements, which are significant. Free Cash Flow is
not defined by GAAP and should not be considered in isolation or as
an alternative to net cash provided by (used in) operating,
investing and financing activities or other financial data prepared
in accordance with GAAP. Free Cash Flow as defined above may differ
from similarly titled measures presented by other companies.
This earnings release includes several key performance metrics
including total revenue per capita (defined as total revenue
divided by attendance), admission per capita (defined as admissions
revenue divided by attendance) and in-park per capita spending
(defined as food, merchandise and other revenue divided by
attendance). These performance metrics are used by management to
assess the operating performance of its parks on a per attendee
basis and to make strategic operating decisions. Management
believes the presentation of these performance metrics is useful
and relevant for investors as it provides investors the ability to
review financial performance in the same manner as management and
provides investors with a consistent methodology to analyze revenue
between periods on a per attendee basis. In addition, investors,
lenders, financial analysts and rating agencies have historically
used similar per-capita related performance metrics to evaluate
companies in the industry.
About SeaWorld Entertainment, Inc.
SeaWorld Entertainment, Inc. (NYSE: SEAS) is a leading theme
park and entertainment company providing experiences that matter,
and inspiring guests to protect animals and the wild wonders of our
world. The Company is one of the world's foremost zoological
organizations and a global leader in animal welfare, training,
husbandry and veterinary care. The Company collectively cares for
what it believes is one of the largest zoological collections in
the world and has helped lead advances in the care of animals. The
Company also rescues and rehabilitates marine and terrestrial
animals that are ill, injured, orphaned or abandoned, with the goal
of returning them to the wild. The SeaWorld® rescue team has helped
over 40,000 animals in need over the Company's history. SeaWorld
Entertainment, Inc. owns or licenses a portfolio of recognized
brands including SeaWorld®, Busch Gardens®, Aquatica®, Sesame
Place® and Sea Rescue®. Over its more than 60-year history, the
Company has built a diversified portfolio of 12 destination and
regional theme parks that are grouped in key markets across
the United States, many of which
showcase its one-of-a-kind zoological collection. The Company's
theme parks feature a diverse array of rides, shows and other
attractions with broad demographic appeal which deliver memorable
experiences and a strong value proposition for its guests.
Copies of this and other news releases as well as additional
information about SeaWorld Entertainment, Inc. can be obtained
online at www.seaworldentertainment.com. Shareholders and
prospective investors can also register to automatically receive
the Company's press releases, SEC filings and other notices by
e-mail by registering at that website.
Forward-Looking Statements
In addition to historical information, this press release
contains statements relating to future results (including certain
projections and business trends) that are "forward-looking
statements" within the meaning of the federal securities laws. The
Company generally uses the words such as "might," "will," "may,"
"should," "estimates," "expects," "continues," "contemplates,"
"anticipates," "projects," "plans," "potential," "predicts,"
"intends," "believes," "forecasts," "future," "guidance,"
"targeted," "goal" and variations of such words or similar
expressions in this press release and any attachment to identify
forward-looking statements. All statements, other than statements
of historical facts included in this press release, including
statements concerning plans, objectives, goals, expectations,
beliefs, business strategies, future events, business conditions,
results of operations, financial position, business outlook,
earnings guidance, business trends and other information are
forward-looking statements. The forward-looking statements are not
historical facts, and are based upon current expectations, beliefs,
estimates and projections, and various assumptions, many of which,
by their nature, are inherently uncertain and beyond management's
control. All expectations, beliefs, estimates and projections are
expressed in good faith and the Company believes there is a
reasonable basis for them. However, there can be no assurance that
management's expectations, beliefs, estimates and projections will
result or be achieved and actual results may vary materially from
what is expressed in or indicated by the forward-looking
statements. These forward-looking statements are subject to a
number of risks, uncertainties and other important factors, many of
which are beyond management's control, that could cause actual
results to differ materially from the forward-looking statements
contained in this press release, including among others: a decline
in discretionary consumer spending or consumer confidence,
including any unfavorable impacts from Federal Reserve interest
rate actions and inflation which may influence discretionary
spending, unemployment or the overall economy; various factors
beyond the Company's control adversely affecting attendance and
guest spending at its theme parks, including, but not limited to,
weather, natural disasters, labor shortages, inflationary
pressures, supply chain delays or shortages, foreign exchange
rates, consumer confidence, the potential spread of travel-related
health concerns including pandemics and epidemics, travel related
concerns, adverse general economic related factors including
increasing interest rates, economic uncertainty, and recent
geopolitical events outside of the United
States, and governmental actions; failure to hire and/or
retain employees; increased labor costs, including minimum wage
increases, and employee health and welfare benefit costs; complex
federal and state regulations governing the treatment of animals,
which can change, and claims and lawsuits by activist groups before
government regulators and in the courts; activist and other
third-party groups and/or media can pressure governmental agencies,
vendors, partners, guests and/or regulators, bring action in the
courts or create negative publicity about us; incidents or adverse
publicity concerning the Company's theme parks, the theme park
industry and/or zoological facilities; a significant portion of the
Company's revenues have historically been generated in the States
of Florida, California and Virginia, and any risks affecting such
markets, such as natural disasters, closures due to pandemics,
severe weather and travel-related disruptions or incidents;
technology interruptions or failures that impair access to the
Company's websites and/or information technology systems; cyber
security risks to the Company or the Company third-party service
providers, failure to maintain or protect the integrity of
internal, employee or guest data, and/or failure to abide by the
evolving cyber security regulatory environment; inability to
compete effectively in the highly competitive theme park industry;
interactions between animals and the Company's employees and it's
guests at attractions at the Company's theme parks; animal exposure
to infectious disease; high fixed cost structure of theme park
operations; seasonal fluctuations in operating results; changing
consumer tastes and preferences; inability to remediate an
identified material weakness on a timely basis; inability to grow
the Company's business or fund theme park capital expenditures;
inability to realize the benefits of developments, restructurings,
acquisitions or other strategic initiatives, and the impact of the
costs associated with such activities; the effects of the global
Coronavirus ("COVID-19") pandemic, or any related mutations of the
virus on the Company's business and the economy in general; adverse
litigation judgments or settlements; inability to protect the
Company's intellectual property or the infringement on intellectual
property rights of others; the loss of licenses and permits
required to exhibit animals or the violation of laws and
regulations; unionization activities and/or labor disputes;
inability to maintain certain commercial licenses; restrictions in
the Company's debt agreements limiting flexibility in operating the
Company's business; inability to retain the Company's current
credit ratings; the Company's leverage and interest rate risk; the
ability of Hill Path Capital LP and its affiliates to significantly
influence the Company's decisions and their interests may conflict
with the Company or yours in the future; inadequate insurance
coverage; inability to purchase or contract with third party
manufacturers for rides and attractions, construction delays or
impacts of supply chain disruptions on existing or new rides and
attractions; environmental regulations, expenditures and
liabilities; suspension or termination of any of the Company's
business licenses, including by legislation at federal, state or
local levels; delays, restrictions or inability to obtain or
maintain permits; financial distress of strategic partners or other
counterparties; tariffs or other trade restrictions; actions of
activist stockholders; the policies of the U.S. President and his
administration or any changes to tax laws; changes or declines in
the Company's stock price, as well as the risk that securities
analysts could downgrade the Company's stock or the Company's
sector; risks associated with the Company's capital allocation
plans and share repurchases, including the risk that the Company's
share repurchase program could increase volatility and fail to
enhance stockholder value and other risks, uncertainties and
factors set forth in the section entitled "Risk Factors" in the
Company's most recently available Annual Report on Form 10-K, as
such risks, uncertainties and factors may be updated in the
Company's periodic filings with the Securities and Exchange
Commission ("SEC"). Although the Company believes that these
statements are based upon reasonable assumptions, it cannot
guarantee future results and readers are cautioned not to place
undue reliance on these forward-looking statements, which reflect
management's opinions only as of the date of this press release.
There can be no assurance that (i) the Company has correctly
measured or identified all of the factors affecting its business or
the extent of these factors' likely impact, (ii) the available
information with respect to these factors on which such analysis is
based is complete or accurate, (iii) such analysis is correct or
(iv) the Company's strategy, which is based in part on this
analysis, will be successful. Except as required by law, the
Company undertakes no obligation to update or revise
forward-looking statements to reflect new information or events or
circumstances that occur after the date of this press release or to
reflect the occurrence of unanticipated events or otherwise.
Readers are advised to review the Company's filings with the SEC
(which are available from the SEC's EDGAR database at www.sec.gov
and via the Company's website at
www.seaworldinvestors.com).
CONTACT:
Investor Relations:
Matthew
Stroud
Investor Relations
Investors@SeaWorld.com
Media:
Lisa Cradit
SVP – Head of Communications
(646) 245-2476
Lisa.cradit@seaworld.com
Libby Panke
FleishmanHillard
(314) 719-7521
Libby.Panke@fleishman.com
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands,
except per share amounts)
|
|
|
|
For the Three
Months
Ended September 30,
|
|
|
Change
|
|
|
For the Nine
Months
Ended September 30,
|
|
|
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
other
|
|
|
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
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of food,
merchandise and other revenues
|
|
|
40,431
|
|
|
|
41,385
|
|
|
|
(954)
|
|
|
|
(2.3)
|
%
|
|
|
101,862
|
|
|
|
105,943
|
|
|
|
(4,081)
|
|
|
|
(3.9)
|
%
|
Operating expenses
(exclusive of depreciation and
amortization shown separately below)
|
|
|
205,808
|
|
|
|
215,899
|
|
|
|
(10,091)
|
|
|
|
(4.7)
|
%
|
|
|
574,210
|
|
|
|
559,320
|
|
|
|
14,890
|
|
|
|
2.7
|
%
|
Selling, general and
administrative expenses
|
|
|
59,705
|
|
|
|
53,082
|
|
|
|
6,623
|
|
|
|
12.5
|
%
|
|
|
176,152
|
|
|
|
155,299
|
|
|
|
20,853
|
|
|
|
13.4
|
%
|
Severance and other
separation costs (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 costs and
expenses
|
|
|
344,976
|
|
|
|
347,582
|
|
|
|
(2,606)
|
|
|
|
(0.7)
|
%
|
|
|
967,141
|
|
|
|
935,054
|
|
|
|
32,087
|
|
|
|
3.4
|
%
|
Operating
income
|
|
|
203,271
|
|
|
|
217,625
|
|
|
|
(14,354)
|
|
|
|
(6.6)
|
%
|
|
|
370,481
|
|
|
|
405,663
|
|
|
|
(35,182)
|
|
|
|
(8.7)
|
%
|
Other (income) expense,
net
|
|
|
(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 before income
taxes
|
|
|
166,240
|
|
|
|
187,135
|
|
|
|
(20,895)
|
|
|
|
(11.2)
|
%
|
|
|
260,054
|
|
|
|
323,037
|
|
|
|
(62,983)
|
|
|
|
(19.5)
|
%
|
Provision for income
taxes
|
|
|
42,685
|
|
|
|
52,578
|
|
|
|
(9,893)
|
|
|
|
(18.8)
|
%
|
|
|
65,911
|
|
|
|
80,857
|
|
|
|
(14,946)
|
|
|
|
(18.5)
|
%
|
Net
income
|
|
$
|
123,555
|
|
|
$
|
134,557
|
|
|
$
|
(11,002)
|
|
|
|
(8.2)
|
%
|
|
$
|
194,143
|
|
|
$
|
242,180
|
|
|
$
|
(48,037)
|
|
|
|
(19.8)
|
%
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
basic
|
|
$
|
1.93
|
|
|
$
|
2.00
|
|
|
|
|
|
|
|
|
$
|
3.04
|
|
|
$
|
3.39
|
|
|
|
|
|
|
|
Earnings per share,
diluted
|
|
$
|
1.92
|
|
|
$
|
1.99
|
|
|
|
|
|
|
|
|
$
|
3.01
|
|
|
$
|
3.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
thousands)
|
|
|
|
|
|
For the Three
Months
Ended September 30,
|
|
|
Change
|
|
|
For the Nine
Months
Ended September 30,
|
|
|
Change
|
|
|
Last Twelve
Months
Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
#
|
|
|
2023
|
|
|
2022
|
|
|
#
|
|
|
2023
|
|
Net
income
|
|
$
|
123,555
|
|
|
$
|
134,557
|
|
|
$
|
(11,002)
|
|
|
$
|
194,143
|
|
|
$
|
242,180
|
|
|
$
|
(48,037)
|
|
|
$
|
243,153
|
|
Provision for income
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 assets and certain non-
cash expenses (d)
|
|
|
8,723
|
|
|
|
3,540
|
|
|
|
5,183
|
|
|
|
22,985
|
|
|
|
12,555
|
|
|
|
10,430
|
|
|
|
24,648
|
|
Business optimization,
development and strategic
initiative costs (e)
|
|
|
6,662
|
|
|
|
4,656
|
|
|
|
2,006
|
|
|
|
28,191
|
|
|
|
14,050
|
|
|
|
14,141
|
|
|
|
33,987
|
|
Certain investment
costs and other taxes
|
|
|
1,147
|
|
|
|
53
|
|
|
|
1,094
|
|
|
|
1,309
|
|
|
|
1,053
|
|
|
|
256
|
|
|
|
1,384
|
|
COVID-19 related
incremental costs (f)
|
|
|
1,092
|
|
|
|
4,957
|
|
|
|
(3,865)
|
|
|
|
8,760
|
|
|
|
5,930
|
|
|
|
2,830
|
|
|
|
9,519
|
|
Other adjusting items
(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 back to
Covenant Adjusted EBITDA as
defined in the Debt Agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated cost savings
(i)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,200
|
|
Other adjustments as
defined in the Debt Agreements (j)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,522
|
|
Covenant Adjusted
EBITDA (k)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
748,454
|
|
|
|
For the Three
Months
Ended September 30,
|
|
|
Change
|
|
|
For the Nine
Months
Ended September 30,
|
|
|
Change
|
|
|
|
2023
|
|
|
2022
|
|
|
#
|
|
|
2023
|
|
|
2022
|
|
|
#
|
|
Net cash provided by
operating activities
|
|
$
|
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
thousands)
|
|
|
|
|
|
As of September
30,
2023
|
|
|
As of December
31,
2022
|
|
Cash and cash
equivalents
|
|
$
|
215,226
|
|
|
$
|
79,196
|
|
Total assets
|
|
$
|
2,575,542
|
|
|
$
|
2,325,787
|
|
Deferred
revenue
|
|
$
|
161,082
|
|
|
$
|
169,535
|
|
Long-term debt,
including current 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,
including current maturities
|
|
$
|
2,128,500
|
|
|
$
|
2,137,500
|
|
Total stockholders'
deficit
|
|
$
|
(252,396)
|
|
|
$
|
(437,664)
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES
UNAUDITED CAPITAL
EXPENDITURES DATA
(In
thousands)
|
|
|
|
|
|
For the Nine Months
Ended
September 30,
|
|
|
Change
|
|
|
|
|
2023
|
|
|
2022
|
|
|
$
|
|
|
%
|
|
|
Capital
Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
(m)
|
|
$
|
156,060
|
|
|
$
|
100,197
|
|
|
$
|
55,863
|
|
|
|
55.8
|
%
|
|
Expansion/ROI
projects(n)
|
|
|
78,158
|
|
|
|
50,532
|
|
|
|
27,626
|
|
|
|
54.7
|
%
|
|
Capital expenditures,
total
|
|
$
|
234,218
|
|
|
$
|
150,729
|
|
|
$
|
83,489
|
|
|
|
55.4
|
%
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES
UNAUDITED OTHER
DATA
(In thousands,
except per capita amounts)
|
|
|
|
For the Three
Months Ended
September 30,
|
|
|
Change
|
|
|
For the Nine
Months
Ended September 30,
|
|
|
Change
|
|
|
|
2023
|
|
|
2022
|
|
|
#
|
|
|
%
|
|
|
2023
|
|
|
2022
|
|
|
#
|
|
|
%
|
|
Attendance
|
|
|
7,129
|
|
|
|
7,336
|
|
|
|
(207)
|
|
|
|
(2.8)
|
%
|
|
|
16,646
|
|
|
|
17,002
|
|
|
|
(356)
|
|
|
|
(2.1)
|
%
|
Total revenue 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
meaningful.
|
(a)
|
Reflects restructuring
and other separation costs and/or adjustments.
|
(b)
|
During the three and
nine months ended September 30, 2023, there were approximately
491,000 and 424,000 anti-dilutive shares excluded from the
computation of diluted earnings per share, respectively. During the
three and nine months ended September 30, 2022, there were
approximately 328,000 and 246,000 anti-dilutive shares excluded
from the computation of diluted earnings per share,
respectively.
|
(c)
|
Reflects non-cash
equity compensation expenses and related payroll taxes associated
with the grants of equity-based compensation.
|
(d)
|
Reflects primarily
non-cash self-insurance reserve adjustments of: (i) approximately
$4.8 million for the three months ended September 30, 2023; (ii)
approximately $11.8 million for the nine and twelve months ended
September 30, 2023, respectively; and (iii) approximately $2.6
million and $6.5 million for the three and nine months ended
September 30, 2022, respectively. Also includes non-cash expenses
related to miscellaneous fixed asset disposals including asset
write-offs and costs, including approximately $4.5 million for the
three months ended September 30, 2023 and $6.5 million for the nine
and twelve months ended September 30, 2023 in disposals associated
with certain rides and equipment which were removed from
service.
|
(e)
|
For the three, nine,
and twelve months ended September 30, 2023, reflects business
optimization, development and other strategic initiative costs
primarily related to: (i) $3.1 million, $17.1 million, and $19.3
million, respectively of third-party consulting costs and (ii) $3.6
million, $9.7 million, and $12.9 million, respectively of other
business optimization costs and strategic initiative costs. For the
three and nine months ended September 30, 2022, reflects business
optimization, development and other strategic initiative costs
primarily related to: (i) $2.5 million and $7.6 million,
respectively of third-party consulting costs and (ii) $1.8 million
and $5.6 million, respectively of other business optimization costs
and strategic initiative costs.
|
(f)
|
For the three, nine,
and twelve months ended September 30, 2023, primarily reflects
costs associated with certain legal matters, nonrecurring
contractual liabilities and respective assessments related to the
previously disclosed temporary COVID-19 park closures. For the
three and nine months ended September 30, 2022, includes
approximately $4.1 million of certain legal matters related to the
temporary COVID-19 park closures.
|
(g)
|
Reflects the impact of
expenses, net of insurance recoveries and adjustments, incurred
primarily related to certain matters, which the Company is
permitted to exclude under the credit agreement governing the
Company's Senior Secured Credit Facilities due to the unusual
nature of the items. For the nine months ended September 30, 2022,
includes $3.6 million related to a legal
settlement.
|
(h)
|
Adjusted EBITDA is
defined as net income (loss) before income tax expense, interest
expense, depreciation and amortization, as further adjusted to
exclude certain non-cash, and other items as described
above.
|
(i)
|
The Company's Debt
Agreements permit the calculation of certain covenants to be based
on Covenant Adjusted EBITDA, as defined above, for the last twelve
month period further adjusted for net annualized estimated savings
the Company expects to realize over the following 24 month period
related to certain specified actions, including restructurings and
cost savings initiatives. These estimated savings are calculated
net of the amount of actual benefits realized during such period.
These estimated savings are a non-GAAP Adjusted EBITDA add-back
item only as defined in the Debt Agreements and does not impact the
Company's reported GAAP net income.
|
(j)
|
The Debt Agreements
permit the Company's calculation of certain covenants to be based
on Covenant Adjusted EBITDA as defined above, for the last
twelve-month period further adjusted for certain costs as permitted
by the Debt Agreements including recruiting and retention expenses,
public company compliance costs and litigation and arbitration
costs, if any.
|
(k)
|
Covenant Adjusted
EBITDA is defined in the Debt Agreements as Adjusted EBITDA for the
last twelve-month period further adjusted for net annualized
estimated savings among other adjustments as described in footnote
(i) and (j) above.
|
(l)
|
Free Cash Flow is
defined as net cash provided by operating activities less capital
expenditures.
|
(m)
|
Reflects capital
expenditures during the respective period for park rides,
attractions and maintenance activities.
|
(n)
|
Reflects capital
expenditures during the respective period for park expansion, new
properties, revenue and/or expense return on investment ("ROI")
projects.
|
(o)
|
Calculated as total
revenues divided by attendance.
|
(p)
|
Calculated as
admissions revenue divided by attendance.
|
(q)
|
Calculated as food,
merchandise and other revenue divided by attendance.
|
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SOURCE SeaWorld Entertainment, Inc.