SeaWorld(SEAS) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter attendance was 4.9 million guests, a decrease of approximately 79,000 guests or 1.6% from the fourth quarter of 2023[10] - Total revenue for the fourth quarter was $384.4 million, a decrease of $4.6 million or 1.2% from the fourth quarter of 2023[10] - Net income for the fourth quarter was $27.9 million, a decrease of $12.2 million or 30.3% from the fourth quarter of 2023[10] - Adjusted EBITDA for the fourth quarter was $144.5 million, a decrease of $6.0 million or 4.0% from the fourth quarter of 2023[10] - For fiscal 2024, total revenue was $1,725.3 million, a decrease of $1.3 million or 0.1% from fiscal 2023[16] - Fiscal 2024 net income was $227.5 million, a decrease of $6.7 million or 2.9% from fiscal 2023[16] - Net revenues for Q4 2024 were $212.8 million, a decrease of 3.5% from $220.5 million in Q4 2023[38] - Total revenues for the year ended December 31, 2024, were $939.6 million, down 1.5% from $954.0 million in 2023[38] - Operating income for Q4 2024 was $75.75 million, a decline of 15.1% compared to $89.27 million in Q4 2023[38] - Net income for Q4 2024 was $27.89 million, representing a decrease of 30.3% from $40.05 million in Q4 2023[38] - Basic earnings per share for Q4 2024 were $0.51, down from $0.63 in Q4 2023[38] - Total costs and expenses for the year ended December 31, 2024, were $1,262.0 million, a slight decrease of 0.4% from $1,266.2 million in 2023[38] Cash Flow and Debt - Free Cash Flow is highlighted as a key liquidity measure, although it excludes mandatory debt service requirements, which are significant[30] - Free cash flow for the year ended December 31, 2024, was $140,500, representing a significant increase of 140.6% from $58,500 in 2023[43] - Total long-term debt, including current maturities, rose to $2,263,442 as of December 31, 2024, compared to $2,125,500 in 2023[41] - The company reported a loss on early extinguishment of debt of $1.487 million in Q4 2024, with no comparable figure in Q4 2023[38] Operational Metrics - Total revenue per capita for fiscal 2024 increased 0.2% to a record $80.07 from fiscal 2023[18] - Key performance metrics include total revenue per capita, admission per capita, and in-park per capita spending, which help assess park performance on a per attendee basis[31] - Total revenue per capita increased by 0.4% to $78.75 for the three months ended December 31, 2024, compared to $78.42 in 2023[44] - In-Park per capita spending rose by 3.5% to $35.14 for the three months ended December 31, 2024, compared to $33.96 in 2023[44] Company Strategy and Future Outlook - The company expects meaningful growth and new records in revenue and Adjusted EBITDA in 2025, assuming no worse weather than experienced in 2024[11] - Management emphasizes the importance of Adjusted EBITDA as it reflects the company's underlying operating performance, excluding non-cash items[28] - Covenant Adjusted EBITDA is crucial for compliance with financial covenants in the company's credit agreements, providing transparency to investors[29] - Management warns that actual results may differ materially from projections due to various uncontrollable factors[36] - The company acknowledges the impact of inflationary pressures and supply chain issues on its operations and financial performance[36] - The company is committed to maintaining transparency with investors through regular updates and filings with the SEC[36] Company Overview - United Parks & Resorts Inc. operates 13 parks across the U.S. and Abu Dhabi, offering diverse entertainment experiences and caring for a large zoological collection[32] - The company has a legacy of rescuing over 41,000 animals, showcasing its commitment to animal welfare and conservation[32] Expenses and Costs - Interest expense increased by 37.7% to $24.37 million in Q4 2024 from $17.7 million in Q4 2023[38] - The company experienced a significant increase in selling, general and administrative expenses, which rose by 10.6% to $49.87 million in Q4 2024 from $45.08 million in Q4 2023[38] - Interest expense increased by 37.7% to $49,917 for the three months ended December 31, 2024, compared to $36,250 in 2023[39] Adjusted EBITDA Definition - Adjusted EBITDA is defined as net income before income tax expense, interest expense, depreciation, and amortization, further adjusted to exclude certain non-cash and other items[54] - Covenant Adjusted EBITDA is calculated for the last twelve-month period, adjusted for net annualized estimated savings related to specified actions, including restructurings and cost savings initiatives[55]