GuruFocus -
- Total (EPA:TTEF) Revenue: $545.9 million, a decrease of $2.3 million or 0.4% compared to Q3 2023.
- Net Income: $119.7 million, compared to $123.6 million in Q3 2023.
- Adjusted EBITDA: $258.4 million, a decrease of $8 million compared to Q3 2023.
- Attendance: Decreased by approximately 100,000 guests or 1.4% compared to the prior-year quarter.
- Total Revenue Per Capita: Increased by 1.0%.
- Operating Expenses: Increased by $1.5 million or 0.7% compared to Q3 2023.
- Selling, General, and Administrative Expenses: Decreased by $4.3 million or 7.3% compared to Q3 2023.
- Share Repurchases: 4.1 million shares repurchased for approximately $211.7 million during the quarter.
- Total Available Liquidity: Approximately $759 million, including $77 million of cash on the balance sheet.
- Net Total Leverage Ratio: 2.98 times as of September 30, 2024.
- CapEx: $55.4 million spent in Q3 2024, with $35.1 million on core CapEx and $20.3 million on expansion/ROI projects.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- United Parks & Resorts Inc (NYSE:PRKS) reported strong demand for their parks during normalized operating conditions, with a 3% increase in attendance when adjusted for weather impacts.
- The company achieved record in-park per capita spending, marking growth in 17 of the last 18 quarters.
- United Parks & Resorts Inc (NYSE:PRKS) strengthened its balance sheet by increasing the size of its revolving credit facility and decreasing its cost.
- The company repurchased approximately 9.4 million shares year-to-date, representing about 15% of total outstanding shares, indicating a strong commitment to returning capital to shareholders.
- The launch of a new premium pass program has seen sales increase by over 10%, reflecting strong consumer interest and potential for future revenue growth.
- Third-quarter revenue decreased by $2.3 million or 0.4% compared to the prior year, primarily due to a decrease in attendance.
- Attendance was negatively impacted by adverse weather conditions, including Hurricanes Debbie, Helene, and Milton, resulting in significant operational disruptions.
- Operating expenses increased by $1.5 million or 0.7%, driven by higher labor-related costs and consulting fees.
- Adjusted EBITDA decreased by $8 million compared to the third quarter of 2023, reflecting increased expenses and decreased revenues.
- The company faced challenges with weather-related closures, particularly in the Florida market, which significantly impacted October results and could potentially affect future performance.
A: Marc Swanson, CEO: While 2024 won't be a record year due to weather impacts, we expect to recapture lost weather impacts in 2025 and grow through new attractions and events. Our internal expectation is to return to record performance by leveraging our initiatives and offerings.
Q: How are you preparing for increased competition in the Orlando market in 2025?
A: Marc Swanson, CEO: We've been in the Orlando market since the 1970s and have grown despite competition. We view new parks as beneficial for the market, bringing more visitors. Our differentiated products and value proposition, such as our SeaWorld-centric attractions, will help us compete effectively.
Q: Can you elaborate on the attendance trends and the impact of weather in the third quarter?
A: Marc Swanson, CEO: Attendance was affected by calendar shifts and weather, particularly Hurricane Milton. However, post-Milton, attendance has been strong, up 8% on a day-to-day basis. Our Halloween events, extended into November, helped drive this recovery.
Q: What are the continued efficiency opportunities on the cost side?
A: James Forrester, Interim CFO: We have significant initiatives planned for next year, including technology to improve labor efficiencies and reduce costs in utilities and insurance claims. We aim for these initiatives to positively impact our cost profile.
Q: How are you addressing the consistent weather headwinds, particularly during core summer months?
A: Marc Swanson, CEO: We are investing in indoor attractions and shade structures to mitigate weather impacts. We believe these efforts, along with drink programs and other initiatives, will enhance guest comfort and attendance regardless of weather conditions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.