ORLANDO, Fla., Nov. 8, 2023 /PRNewswire/ — SeaWorld Entertainment, Inc. (NYSE: SEAS), a number one theme park and leisure firm, as we speak reported its monetary outcomes for the third quarter and first 9 months of fiscal yr 2023.

Third Quarter 2023 Highlights

• Attendance was 7.1 million visitors, a lower of roughly 0.2 million visitors 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 file $34.85 from the third quarter of 2022. 

First Nine Months 2023 Highlights

• Attendance was 16.6 million visitors, a lower of 0.4 million visitors 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 file $80.36 from the primary 9 months of 2022.  Admission per capita elevated 1.3% to a file $44.07, whereas in-park per capita spending elevated 2.7% to a file $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 yr, 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 mixture whole of roughly $3.9 million, leaving roughly $38.5 million remaining underneath 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 whole 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.” mentioned 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,” mentioned 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 yr, we estimate attendance and income would have grown as effectively. We are pleased with the continued energy of our Halloween occasions and the recognition that they proceed to construct with our visitors.  As we enter the vacation season, we are going to start our award-winning Christmas occasions at most of our SeaWorld, Busch Gardens and Sesame parks later this week.  Our Christmas occasions characteristic thrilling reside leisure, scrumptious and distinctive meals and beverage choices and vacation purchasing for visitors of all ages. 

“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, sights, 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 visitors, generated whole revenues of $548.2 million, web revenue of $123.6 million and Adjusted EBITDA of $266.4 million. Attendance decreased roughly 207,000 visitors when in comparison with the third quarter of 2022. The lower in attendance was primarily attributable to considerably hostile 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 whole 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 whole attendance). Admission per capita decreased primarily because of the 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 yr quarter. In park per capita spending improved primarily attributable to pricing initiatives, partially offset by elements together with climate, the admissions product combine, closures and disruption associated to development delays at sure in park places when in comparison with the third quarter of 2022. Adjusted EBITDA was impacted primarily by a lower in income.

First Nine Months 2023 Results

In the primary 9 months of 2023, the Company hosted roughly 16.6 million visitors, generated whole revenues of $1,337.6 million, web revenue of $194.1 million and Adjusted EBITDA of $563.1 million. Attendance decreased roughly 356,000 visitors when in comparison with the primary 9 months of 2022. The lower in attendance was primarily attributable to considerably hostile 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 whole 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 whole attendance) and in-park per capita spending (outlined as meals, merchandise and different income divided by whole attendance). Admission per capita elevated primarily because of the 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 attributable to pricing initiatives and a rise in income associated to our worldwide providers 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 places. Adjusted EBITDA was negatively impacted primarily attributable to elevated labor associated prices and a lower in income.

Share Repurchases

During the third quarter, the Company repurchased 78,750 shares for an mixture whole of roughly $3.9 million, leaving roughly $38.5 million remaining underneath 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 whole variety of animals the Company has helped over its historical past is greater than 40,000.

The Company is likely one of the largest marine animal rescue organizations on the earth.  Working in partnership with state, native and federal companies, the Company’s rescue groups are on name 24 hours a day, seven days every week, 12 months a yr. Consistent with its mission to guard animals and their ecosystems, rescue groups mobilize and sometimes journey a whole lot of miles to assist in poor health, injured, orphaned or deserted wild animals in want of the Company’s knowledgeable care, with the aim 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 as we speak, 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 will probably be broadcast reside on the Internet and the discharge and convention name may be accessed through the Company’s web site at www.SeaWorldInvestors.com.  For these unable to take part within the reside webcast, a replay will probably be out there starting at roughly 12 p.m. Eastern Time on November 8, 2023, underneath the “Events & Presentations” tab of www.SeaWorldInvestors.com. A replay of the decision will 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 anyplace within the U.S., (855) 669-9658 from anyplace in Canada, or (412) 317-0088 from worldwide places and coming 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 should not acknowledged phrases underneath GAAP, shouldn’t be thought-about in isolation or as an alternative choice to a measure of economic efficiency or liquidity ready in accordance with GAAP and should not indicative of web revenue or loss or web money offered by working actions as decided underneath GAAP.

Adjusted EBITDA, Covenant Adjusted EBITDA, Free Cash Flow and different non-GAAP monetary measures have limitations that ought to be thought-about earlier than utilizing these measures to judge an organization’s monetary efficiency or liquidity. Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow as introduced, might not be akin to equally titled measures of different firms attributable to various strategies of calculation.

Management believes the presentation of Adjusted EBITDA is suitable 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 parts of its government compensation program. In addition, traders, lenders, monetary analysts and ranking companies have traditionally used EBITDA-related measures within the Company’s business, together with different measures, to estimate the worth of an organization, to make knowledgeable funding selections and to judge firms within the business.

Management believes the presentation of Covenant Adjusted EBITDA for the final twelve months is suitable 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 ranking companies as a liquidity measure. The Company makes use of Free Cash Flow to judge its potential to generate money stream from enterprise operations. Free Cash Flow doesn’t signify the residual money stream out there for discretionary expenditures, because it excludes sure expenditures comparable to necessary debt service necessities, that are important. Free Cash Flow just isn’t outlined by GAAP and shouldn’t be thought-about in isolation or as an alternative choice to web money offered 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 introduced by different firms.

This earnings launch contains a number of key efficiency metrics together with whole income per capita (outlined as whole 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 selections. Management believes the presentation of those efficiency metrics is helpful and related for traders because it supplies traders the power to evaluate monetary efficiency in the identical method as administration and supplies traders with a constant methodology to investigate income between durations on a per attendee foundation. In addition, traders, lenders, monetary analysts and ranking companies have traditionally used comparable per-capita associated efficiency metrics to judge firms within the business.

About SeaWorld Entertainment, Inc.

SeaWorld Entertainment, Inc. (NYSE: SEAS) is a number one theme park and leisure firm offering experiences that matter, and galvanizing visitors to guard animals and the wild wonders of our world. The Company is likely 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 likely one of the largest zoological collections on the earth and has helped lead advances within the care of animals. The Company additionally rescues and rehabilitates marine and terrestrial animals which are in poor health, injured, orphaned or deserted, with the aim 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 are grouped in key markets throughout the United States, lots of which showcase its one-of-a-kind zoological assortment. The Company’s theme parks characteristic a various array of rides, exhibits and different sights with broad demographic attraction which ship memorable experiences and a powerful worth proposition for its visitors.

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 traits) which are “forward-looking statements” inside the that means of the federal securities legal guidelines. The Company typically makes use of the phrases comparable 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 determine forward-looking statements. All statements, apart from statements of historic details included on this press launch, together with statements regarding plans, goals, objectives, expectations, beliefs, enterprise methods, future occasions, enterprise circumstances, outcomes of operations, monetary place, enterprise outlook, earnings steering, enterprise traits and different data are forward-looking statements. The forward-looking statements should not historic details, and are based mostly upon present expectations, beliefs, estimates and projections, and varied assumptions, lots 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 affordable foundation for them. However, there may be no assurance that administration’s expectations, beliefs, estimates and projections will consequence 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 various dangers, uncertainties and different vital elements, lots 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 client spending or client 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, international alternate charges, client confidence, the potential unfold of travel-related well being considerations together with pandemics and epidemics, journey associated considerations, hostile common financial associated elements together with rising 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 workers; elevated labor prices, together with minimal wage will increase, and worker well being and welfare profit prices; advanced federal and state rules governing the therapy 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, visitors and/or regulators, convey motion within the courts or create damaging publicity about us; incidents or hostile publicity regarding the Company’s theme parks, the theme park business 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, comparable to pure disasters, closures attributable to 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 techniques; cyber safety dangers to the Company or the Company third-party service suppliers, failure to keep up or defend 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 business; interactions between animals and the Company’s workers and it is visitors at sights on the Company’s theme parks; animal publicity to infectious illness; excessive fastened value construction of theme park operations; seasonal fluctuations in working outcomes; altering client tastes and preferences; lack of ability to remediate an recognized materials weak spot on a well timed foundation; lack of ability to develop the Company’s enterprise or fund theme park capital expenditures; lack of ability to appreciate 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; hostile 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 power of Hill Path Capital LP and its associates to considerably affect the Company’s selections 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 social gathering producers for rides and sights, development delays or impacts of provide chain disruptions on present or new rides and sights; 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 adjustments to tax legal guidelines; adjustments or declines within the Company’s inventory value, in addition to the chance that securities analysts might 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 chance that the Company’s share repurchase program might enhance volatility and fail to boost stockholder worth and different dangers, uncertainties and elements set forth within the part entitled “Risk Factors” within the Company’s most not too long ago out there Annual Report on Form 10-Ok, 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 affordable assumptions, it can not 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’ possible 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, will probably be profitable. Except as required by regulation, 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 incidence 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 through 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
Libby.Panke@fleishman.com

SOURCE SeaWorld Entertainment, Inc.