ORLANDO, Fla. , Aug. 7, 2024 /PRNewswire/ -- United Parks & Resorts Inc.
(NYSE: PRKS ), a leading theme park and entertainment company, today reported its financial results for the second quarter and first six months of fiscal year 2024. Second Quarter 2024 Highlights Attendance was 6.2 million guests, an increase of approximately 0.
05 million guests or 0.8% from the second quarter of 2023. Total revenue was $497.
6 million , an increase of $1.6 million or 0.3% from the second quarter of 2023.
Net income was $91.1 million , an increase of $4.1 million or 4.
7% from the second quarter of 2023. Adjusted EBITDA [1] was $218.2 million , a decrease of $6.
1 million or 2.7% from the second quarter of 2023. Total revenue per capita [2] decreased 0.
4% to $80.44 from the second quarter of 2023. Admission per capita [2] decreased 2.
9% to $42.68 while in-park per capita spending [2] increased 2.5% to a record $37.
76 from the second quarter of 2023. First Six Months 2024 Highlights Attendance was 9.6 million guests, an increase of 0.
1 million guests or 1.3% from the first six months of 2023. Total revenue was a record $795.
0 million , an increase of $5.6 million or 0.7% from the first six months of 2023.
Net income was $79.9 million , an increase of $9.3 million or 13.
2% from the first six months of 2023. Adjusted EBITDA [1] was $297.3 million , an increase of $0.
6 million or 0.2% from the first six months of 2023. Total revenue per capita [2] decreased 0.
5% to $82.50 from the first six months of 2023. Admission per capita decreased 2.
1% to $44.60 , while in-park per capita spending increased 1.4% to a record $37.
90 from the first six months of 2023. Other Highlights During the second quarter, the Company repurchased 4.1 million shares for an aggregate total of approximately $213.
4 million , leaving approximately $286.6 million remaining under the Share Repurchase Program as of June 30, 2024 . During the second quarter of 2024, the Company came to the aid of 215 animals in need in the wild.
The total number of animals the Company has helped over its history is more than 41,000. "We are pleased to report another quarter of strong financial results," said Marc Swanson , Chief Executive Officer of United Parks & Resorts Inc. "We grew attendance and revenue during the quarter despite not seeing any material improvement in weather during the quarter compared to prior year.
We also achieved a record level for in park per capita spending which is a testament to the continued success of our strategies and investments in this area. We are also happy to have been able to repurchase approximately 6.3 million shares since the end of March through August 5th , or nearly 10% of our total outstanding shares at what we believe were depressed and highly attractive prices underscoring our significant free cash flow generation and our commitment to thoughtfully and opportunistically return excess capital to shareholders.
" "Looking forward, we continue to be encouraged by the booking trends at our Discovery Cove property, along with our group bookings which continue to run well ahead of 2023. International visitation while still down compared to 2019, was again up for the quarter compared to prior year. We are very excited about our remaining summer events including "Bands, Brew & BBQ" at SeaWorld Orlando, "Summer Spectacular" at SeaWorld San Diego, "Bourbon & BBQ" at Busch Gardens Tampa Bay and "Bier Fest Brews & BBQ" at Busch Gardens Williamsburg and "Red, White & BBQ" at SeaWorld San Antonio over the next few weeks.
Later in September, we will start our popular Halloween events which will be followed by our Christmas events. These special events have continued to grow in popularity and I expect this year's events to be among the best ever. For the full year 2024, we continue to expect to deliver new records in revenue and Adjusted EBITDA," continued Swanson.
"We have high confidence in our ability to continue to deliver operational and financial improvements that will result in meaningful increases in revenue, Adjusted EBITDA and shareholder value." "I want to thank all of our ambassadors for their hard work and dedicated efforts these past few months as we wrap-up this summer season and head into our popular Halloween and Christmas events for the balance of the year," concluded Swanson. Second Quarter 2024 Results In the second quarter of 2024, the Company hosted approximately 6.
2 million guests, generated total revenues of $497.6 million , net income of $91.1 million and Adjusted EBITDA of $218.
2 million . Attendance increased approximately 47,000 guests when compared to the second quarter of 2023. The increase in attendance was primarily due to increased demand.
The increase in total revenue of $1.6 million compared to the second quarter of 2023 was primarily a result of an increase in attendance, partially offset by a modest decline in total revenue per capita. Total revenue per capita declined modestly due to a decrease in admissions per capita partially offset by an increase in in park per capita spending.
Admission per capita decreased primarily due to lower pricing on certain promotional admission products and the net impact of the admissions product and park mix when compared to the prior year quarter. In park per capita spending (defined as food, merchandise and other revenue divided by total attendance) improved primarily due to pricing initiatives when compared to the second quarter of 2023. First Six Months 2024 Results In the first six months of 2024, the Company hosted approximately 9.
6 million guests, generated total revenues of $795.0 million , net income of $79.9 million and Adjusted EBITDA of $297.
3 million . Attendance increased approximately 119,000 guests when compared to the first six months of 2023. The increase in attendance was primarily due to an increase in demand, partially offset by the impact of adverse weather, particularly at our Florida parks, including during peak visitation periods.
The increase in total revenue of $5.6 million compared to the first six months of 2023 was primarily a result of an increase in attendance, partially offset by modest decline in total revenue per capita. Total revenue per capita declined modestly due to a decrease in admissions per capita partially offset by an increase in in park per capita spending.
Admission per capita decreased primarily due to the net impact of the admissions product mix and lower pricing on certain promotional admission products when compared to the first six months of 2023. In park per capita spending improved primarily due to pricing initiatives, partially offset by a decrease in revenue related to the Company's international services agreements when compared to the first six months of 2023. Adjusted EBITDA was positively impacted primarily due to an increase in revenue, partially offset by increased marketing related costs.
The improvement in revenue was a result of an increase in in-park per capita spending and an increase in attendance. Share Repurchases During the second quarter, the Company repurchased 4.1 million shares for an aggregate total of approximately $213.
4 million , leaving approximately $286.6 million remaining under the Share Repurchase Program as of June 30, 2024 . Rescue Efforts In the second quarter of 2024, the Company came to the aid of 215 animals in need in the wild.
The total number of animals the Company has helped over its history is more than 41,000. 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. Conference Call The Company will hold a conference call today, Wednesday, August 7, 2024 , at 9 a.m.
Eastern Time to discuss its second quarter and first six months of fiscal 2024 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.UnitedParksInvestors.
com . For those unable to participate in the live webcast, a replay will be available beginning at approximately 12 p.m.
Eastern Time on August 7, 2024 , under the "Events & Presentations" tab of www.UnitedParksInvestors.com .
A replay of the call can also be accessed telephonically from 12 p.m. Eastern Time on August 7, 2024 , through 11:59 p.
m. Eastern Time on August 14, 2024 , 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 3667670. 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 United Parks & Resorts Inc. United Parks & Resorts Inc.
(NYSE: PRKS ) is a global theme park and entertainment company that owns or licenses a diverse portfolio of award-winning park brands and experiences, including SeaWorld®, Busch Gardens®, Discovery Cove, Sesame Place®, Water Country USA , Adventure Island, and Aquatica®. The Company's seven world-class brands span 13 parks in seven markets across the United States and Abu Dhabi , offering experiences that matter with exhilarating thrill and family-friendly rides, coasters, and experiences, inspiring up-close and educational presentations with wildlife, and other various special events throughout the year. In addition, the Company collectively cares for one of the largest zoological collections in the world, is a global leader in animal welfare, training, and veterinary care, and is one of the leading marine animal rescue organizations in the world with a legacy of rescuing and caring for animals that spans nearly 60 years, including coming to the aid of over 41,000 animals in need.
To learn more, visit www.UnitedParks.com .
Copies of this and other news releases as well as additional information about United Parks & Resorts Inc. can be obtained online at www.unitedparks.
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: various factors beyond the Company's control adversely affecting attendance and guest spending at the Company's 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 retain and/or hire employees; 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; the ability of Hill Path Capital LP and its affiliates to significantly influence the Company's decisions and their interests may conflict with ours or yours in the future; 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 us or the Company's 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 the Company'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 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 public health events 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; 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; inability to remediate an identified material weakness; 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, 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.unitedparksinvestors.
com ). CONTACT: Investor Relations: Investor Relations Inquiries: Matthew Stroud Investor Relations 888-410-1812 [email protected] Media: Nicole Bott United Parks & Resorts Inc. [email protected] SOURCE United Parks and Resorts Inc.
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