SeaWorld(SEAS) - 2025 Q1 - Quarterly Report

Revenue Performance - Total revenues for Q1 2025 decreased by $10.5 million, or 3.5%, to $286.9 million compared to $297.4 million in Q1 2024[116] - Admissions revenue fell by $9.7 million, or 5.8%, to $156.1 million in Q1 2025, primarily due to a decrease in attendance and admissions per capita[117] - Total attendance decreased by approximately 59,000 guests, or 1.7%, in Q1 2025 compared to the prior year, impacted by a calendar shift of holidays[117] - Admission per capita decreased by 4.2% to $46.04 in Q1 2025 from $48.06 in Q1 2024, influenced by the admissions product mix and lower pricing[117] - Total revenue per capita decreased by 1.8% to $84.62 in Q1 2025 from $86.21 in Q1 2024[116] Operating Expenses - Operating expenses decreased by $3.6 million, or 2.2%, to $161.3 million in Q1 2025, primarily due to a reduction in non-cash self-insurance adjustments[120] - Selling, general and administrative expenses decreased by $3.7 million, or 7.8%, to $44.1 million in Q1 2025, mainly due to lower third-party consulting costs[121] Net Loss and EBITDA - Net loss for Q1 2025 was $16.1 million, compared to a net loss of $11.2 million in Q1 2024, representing a 44.0% increase in losses[116] - Adjusted EBITDA for the three months ended March 31, 2025, was $67,440 thousand, down from $79,154 thousand in the prior year[145] - Covenant Adjusted EBITDA for the last twelve months ended March 31, 2025, was $703,698 thousand[145] Interest and Tax Expenses - Interest expense decreased by $4.7 million, or 12.0%, to $34.1 million in Q1 2025 compared to $38.8 million in Q1 2024[116] - Benefit from income taxes was $1.1 million for the three months ended March 31, 2025, down from $5.6 million in the same period in 2024, with an effective tax rate of 6.2% compared to 33.4%[124] - The company reported a benefit from income taxes of $(1,063) thousand for the three months ended March 31, 2025[145] Cash Flow and Capital Expenditures - Net cash provided by operating activities was $25.7 million for the three months ended March 31, 2025, a decrease from $71.4 million in the same period in 2024, primarily due to changes in working capital[129] - Net cash used in investing activities was $56.9 million for the three months ended March 31, 2025, compared to $87.3 million in the same period in 2024, reflecting capital expenditures related to future attractions[130] - Total capital expenditures for the three months ended March 31, 2025, were $56.9 million, with $49.9 million for core projects and $7.1 million for expansion/ROI projects[132] - Net cash used in financing activities was $9.0 million for the three months ended March 31, 2025, compared to $27.3 million in the same period in 2024, primarily due to share repurchases[134] Debt and Financial Position - As of March 31, 2025, the company had $1.535 billion in Term B-3 Loans and a $700 million Revolving Credit Facility, with approximately $688.6 million available for borrowing[137] - The company had outstanding $725 million in Senior Notes due on August 15, 2029, as of March 31, 2025[138] - The company believes existing cash, cash flow from operations, and available borrowings will be adequate to meet capital expenditures and working capital requirements for at least the next 12 months[128] - The company has approximately $1.5 billion of outstanding long-term debt representing variable-rate debt as of March 31, 2025[153] - A hypothetical 100 bps increase in Term SOFR would increase annual interest expense by approximately $22.3 million with an average balance of $700 million in revolving credit borrowings[153] Other Financial Metrics - Depreciation and amortization expense increased by $2.5 million, or 6.4%, to $41.7 million for the three months ended March 31, 2025, compared to $39.2 million for the same period in 2024[122] - Interest expense for the three months ended March 31, 2025, was $34,107 thousand, compared to $38,777 thousand for the same period in 2024[145] - Depreciation and amortization for the three months ended March 31, 2025, was $41,695 thousand, an increase from $39,182 thousand in 2024[145] - Business optimization, development, and strategic initiative costs for the three months ended March 31, 2025, were $1,264 thousand[145] - The company had no material off-balance sheet arrangements as of March 31, 2025[148]