SeaWorld(SEAS) - 2024 Q4 - Annual Report

Theme Parks and Attractions - The company operates 12 theme parks, which include three of the top 20 theme parks and four of the top 10 water parks in North America, as measured by attendance[30] - The combined theme park portfolio features over 800 attractions, including 74 animal habitats, 162 programs, and 206 rides, along with 360 other attractions[30] - SeaWorld Orlando opened Penguin Trek in 2024, a multi-launch family coaster, and was ranked among the top 10 theme parks in North America by attendance[34] - SeaWorld San Antonio opened Catapult Falls in 2024, the world's first launched flume coaster, and encompasses 397 acres[34] - Busch Gardens Tampa Bay opened Phoenix Rising, a family suspended coaster, in 2024 and was ranked among the top 20 theme parks in North America by attendance[35] - Aquatica Orlando was ranked 3 most attended water park in North America in 2023 and opened Tassie's Underwater Twist, an immersive water slide, in 2024[35] - Aquatica San Antonio was ranked 6 most attended water park in North America in 2023 and opened Tikitapu Splash, a multi-level interactive water-play structure, in 2024[35] - Discovery Cove was ranked 19 most attended water park in North America in 2023 and is recognized as a Certified Autism Center[35] - Sesame Place Philadelphia opened 123 Playground, an interactive play area, in 2024 and was the first theme park in the world designated as a Certified Autism Center[36] - Sesame Place San Diego opened in 2022 and features an interactive Sesame Street Neighborhood with immersive character experiences[36] - Water Country USA was ranked 5 most attended water park in North America in 2023 and features attractions like Nitro Racer: Supercharged[38] - Adventure Island was ranked 7 most attended water park in North America in 2023 and opened Castaway Falls, a multi-level splash and play area, in 2024[38] - The company opened numerous new rides and attractions in 2024, including 2 of the top 10 Best New Amusement Park Attractions of 2024[42] - The 2024 theme park portfolio includes a total of 74 animal habitats, 206 rides, 162 shows, and 360 other offerings[40] - The company features multiple award-winning attractions, including Pantheon, ranked 4 Best New Amusement Park Attraction for 2022[43] Financial Performance and Investments - The company has generated significant annual operating cash flow, even in years of declining performance, due to disciplined capital expenditures and cost management[30] - The company made annual targeted investments to support existing theme park facilities and attractions, critical for competitiveness and revenue growth[41] - The company has been recognized as the 9 Best Amusement Park for 2024 and 8 for 2023, with Iron Gwazi ranked 1 Best New Roller Coaster for 2022[39] - The company has faced significant inflationary pressures affecting costs of food, merchandise, fuel, construction, and labor[326] - As of December 31, 2024, approximately $1.5 billion of the company's outstanding long-term debt represents variable-rate debt[327] - A hypothetical 100 bps increase in Term SOFR would increase the company's annual interest expense by approximately $22.4 million, assuming an average balance on revolving credit borrowings of $700 million[327] Conservation and Community Initiatives - The company has invested millions annually in animal rescue, conservation research, and education, helping over 41,000 ill, injured, orphaned, and abandoned wild animals[32] - The company is committed to animal preservation and community initiatives, supporting efforts in environmental sustainability and youth development[32] - SeaWorld has helped over 41,000 animals across various species, including bottlenose dolphins and manatees, with a significant focus on manatee rescue, having assisted over 300 manatees in the past six years[54] - The SeaWorld Coral Rescue Center, opened in 2023, is the largest public-facing coral-recovery exhibit dedicated to Atlantic coral conservation in the U.S.[56] - The company actively engages in conservation efforts, partnering with organizations like the National Oceanic and Atmospheric Administration to protect Florida's endangered coral reefs[56] - The company has been recognized for its environmental and social responsibility, aiming to inspire guests to protect animals and the planet[48] Operational Efficiency and Management - The company’s theme parks are strategically located in geographic clusters, improving operational efficiency and allowing for multi-park pricing packages[34] - The company’s management team has an average tenure of approximately 18 years in relevant industries, enhancing its competitive position[30] - The company operates a diverse portfolio of theme parks and water parks, focusing on family-oriented experiences and innovative attractions[35] - The company benefits from significant capital investments in the Orlando area, enhancing its competitive position in the theme park market[91] Regulatory and Safety Compliance - The company is subject to various federal, state, and local regulations, including those related to animal welfare and environmental protection[94] - Recent regulatory developments include proposed amendments to the Animal Welfare Act, which may impact operations in the future[95][96] - The company is subject to complex federal and state regulations governing the treatment of animals, which can change and may impact operations[101] - The company is committed to safety, with regular inspections and maintenance of rides conducted by both internal and external experts[45] Brand and Market Position - The company leverages its popular brands through licensing and consumer product arrangements, aiming to create new revenue streams and enhance brand visibility[72] - The company competes with major theme parks like Disney and Universal, leveraging its unique zoological collection and conservation efforts[91][93] - The theme park industry is characterized by a proven business model that generates significant cash flow and offers strong consumer value compared to other entertainment options[90] Corporate Changes and Future Plans - The company changed its corporate name from SeaWorld Entertainment, Inc. to United Parks & Resorts Inc. on February 12, 2024, with a new ticker symbol "PRKS" effective February 13, 2024[105] - SeaWorld Abu Dhabi, the first SeaWorld branded park outside the United States, opened in May 2023, with funding expected to offset internal expenses[88] - The company continues to evaluate international opportunities for growth, particularly in markets with significant appeal[89] - The company has a robust plan for new rides and attractions expected to open in 2025, enhancing guest experiences[42] Employment and Workforce Diversity - As of December 31, 2024, SeaWorld employed approximately 3,300 full-time and 13,400 part-time and seasonal employees, with a diverse workforce comprising 51% women and 50% from underrepresented communities[63][64]