SeaWorld Entertainment having record year for revenue, net income down
Posted
From the press release:
SeaWorld Entertainment, Inc. (NYSE: SEAS), a leading theme park and entertainment company, today reported its financial results for the second quarter and first six months of fiscal year 2023.
Second Quarter 2023 Highlights
- Attendance was 6.1 million guests, a decrease of approximately 0.1 million guests from the second quarter of 2022.
- Total revenue was $496.0 million, a decrease of $8.8 million or 1.7% from the second quarter of 2022.
- Net income was $87.1 million, a decrease of $29.6 million or 25.3% from the second quarter of 2022.
- Adjusted EBITDA[1] was $224.2 million, a decrease of $10.2 million or 4.4% from the second quarter of 2022.
- Total revenue per capita[2] increased 0.3% to a record $80.80 from the second quarter of 2022. Admission per capita[2] decreased two cents to $43.96 while in-park per capita spending[2] increased 0.6% to a record $36.84 from the second quarter of 2022.
First Six Months 2023 Highlights
- Attendance was 9.5 million guests, a decrease of 0.1 million guests or 1.5% from the first six months of 2022.
- Total revenue was a record $789.4 million, an increase of $13.9 million or 1.8% from the first six months of 2022.
- Net income was $70.6 million, a decrease of $37.0 million or 34.4% from the first six months of 2022.
- Adjusted EBITDA[1] was $296.7 million, a decrease of $3.7 million or 1.2% from the first six months of 2022.
- Total revenue per capita[2] increased 3.4% to a record $82.94 from the first six months of 2022. Admission per capita[2] increased 3.3% to a record $45.57, while in-park per capita spending[2] increased 3.5% to a record $37.37 from the first six months of 2022.
Other Highlights
- During the second quarter, the Company repurchased 235,000 shares for an aggregate total of approximately $13.9 million, leaving approximately $42.4 million remaining under the Share Repurchase Program as of June 30, 2023.
- During the second quarter of 2023, the Company came to the aid of 96 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 significantly adverse weather, in-park venue closures and related disruptions due to construction delays and a shift in the timing of the opening of new rides during the quarter," said Marc Swanson, Chief Executive Officer of SeaWorld Entertainment, Inc. "Our results during the second quarter further underscore the resiliency of our business, the effectiveness of our strategy and the tireless efforts of our outstanding team. Some combination of unusually hot and cold weather, rain and / or the fallout from Canadian wildfires impacted most of our markets during the quarter. In park spending was impacted by the adverse weather and delays in construction projects resulting in prolonged closures of certain in-park facilities and other in park disruptions during the quarter. Despite the unusual headwinds in the quarter, attendance still grew at certain of our parks and total per capita spending increased for the 17th consecutive quarter."
"During the quarter, SeaWorld Abu Dhabi opened, the first SeaWorld park outside of the United States. We are really proud of this park, happy to see attendance well ahead of expectations to date and excited for what this park will deliver over time. I continue to be very encouraged by our group booking revenue trends which are up significantly versus 2022 and 2019, and group bookings revenue to date, through the first six months of the year, already exceeds 2019 bookings revenue for the full year. I am also very excited about our remaining summer events over the next few weeks and our planned Halloween and Christmas events which have grown bigger and bigger over the years and based on what we have planned, we expect this year to be our best events yet. I want to thank all of our ambassadors for their efforts these past few months as we wrap-up this summer season and head into our increasingly popular Halloween and Christmas events for the balance of the year," continued Swanson.
It’s hard to be passionate for SeaWorld Parks & Entertainment if you grew up visiting the parks under Anheuser-Busch ownership. The food, the operations, the design of new exhibits/attractions, park upkeep, etc. just isn’t the same. Haven’t been to any of the parks since the start of Covid but comments online seem to confirm the perception I have of the parks.
I was just at BGW on Fri and Water Country on Sat. We had wonderful times at both parks, though BGW was a ghost town due to rain (and Loch Ness was closed and we skipped Darkastle becuase of the estimated 90 min wait).
I can’t speak to operations because I haven’t been to a major water park in ages (major slides were about 30, but we could rides some tube slides in 10. I don’t know if that’s “good”.) The ride park was dead, but everything seemed relatively clean and in good shape, employees were helpful, and there weren’t too many stoppages.
If asked, I would definitely recommend both.
Edit: The food was okay at best and a bit overpriced, but we had to look for gluten-free options, so we weren't seeing the whole range.
Hobbes: "What's the point of attaching a number to everything you do?"
Calvin: "If your numbers go up, it means you're having more fun."
I'd definitely say the food has slipped from what it once was, but the theming and capital investment, and upkeep, have actually all remained pretty high compared to any other large chain.
I mean the amount of well-themed coasters in the past 2 years, definitely disagrees with the attraction assessment.
And compared to the doom and gloom predicted I would say pretty impressed.
It's certainly not quite up to Herschend levels, but it's still nowhere near SF, or even CF.
I'd say the tight labor market and covid experience break, hurt operations, and hiring everywhere.
Busch Williamsburg is still by far the best looking and best operated park when compared with the Florida parks for sure. I definitely noticed the food wasn't as good when I was there in 2022 compared with past visits in 2018 and the early 2000s. But the overall experience and park operations had in no way slipped the way Busch Tampa and SeaWorld Orlando have.
I mentioned in a topic not long ago, but having visited most of their major properties in the past two years (Sea World San Diego, San Antonio, Orlando... Busch Gardens Williamsburg and Tampa)... Had a fantastic time at all of them with zero complaints. Operations were fine, parks were clean and well staffed, etc... They are very good parks. I don't get the complaining as I never experienced most of what people claim. I've seen far worse operations and had overall worse experiences at CF and Six Flags parks than I have at any SEAS property. Easy.
SteveWoA:
I don't get the complaining as I never experienced most of what people claim.
My experiences at Busch Gardens Williamsburg and Sea World Orlando lately don't compare to those in years past and I think the fact that you're including them in the same sentence as Cedar Fair and especially Six Flags says a lot about where the quality of the parks has gone.
I've always considered the SEAS properties below Disney/Universal, but above Six Flags and Cedar Fair. I still think that is true today as it was many years ago. If anything, Cedar Fair has tanked a bit in recent years, IMO.
I really think a yearly report card system for chains and each park should be implemented by ACE or someone besides Amusement Today with enough members.
Operations/Food/Maintenance/Live E/Theming/Cleanliness/Friendliness
Cause CF has improved in certain areas but only at the Big 5 CP, KI, CW, CW, KD and Knotts is going to be Knott's.
I think the operations at CP is so off-putting to most enthusiast because it was insanely good for nearly 2 decades, and you expected it, on the other hand, KI is definitely better than it has ever been, the small parks are going to be what they are.
But the Live E shows at CP to me are its most underrated asset, and they got a big whack this year, but still have 3 pretty great shows. Also CP having housing gives them a huge leg up.
Universal to me has always been very uneven.
ACE will never be critical of parks, because it would harm their relationships. AT would never be critical of parks, because it would harm their ad revenue.
Jeff - Editor - CoasterBuzz.com - My Blog
Maybe Coasterbuzz could institute a poll? Could bring in some extra ad revenue Jeff ;-)
2022 Trips: WDW, Sea World San Diego & Orlando, CP, KI, BGW, Bay Beach, Canobie Lake, Universal Orlando
Coasterbuzz Top 100 Ride Crews?
13 Boomerang, 9 SLC, and 8 B-TR clones
Meh, ad revenue blows. 20k ad impressions today, worth nine bucks.
Jeff - Editor - CoasterBuzz.com - My Blog
You could do a rating of parks, much like your Top 100 coasters. Have us all rate parks. Every year at a certain time, you could send out a press release to the news outlets telling the the years best coasters and parks. That would get your site in the mainstream news more often, and get more views, which would get more ad revenue and more memberships.
Doing that probably would require too much extra work, I wouldn't think.
CoasterBuzz is the best, and it deserves all the attention it can get. Just a thought.
-Travis
www.youtube.com/TSVisits
The park rating exists. You can do it right now. I've just never surfaced any results. I should probably do that.
Jeff - Editor - CoasterBuzz.com - My Blog
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