SeaWorld(SEAS) - 2025 Q2 - Quarterly Results

Report Overview & Highlights Second Quarter 2025 Highlights In the second quarter of 2025, United Parks & Resorts experienced a slight 0.8% increase in attendance to 6.2 million guests, but saw declines in total revenue by 1.5% to $490.2 million, net income by 12.1% to $80.1 million, and Adjusted EBITDA by 5.4% to $206.3 million, driven by a 2.2% drop in total revenue per capita | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Attendance (millions) | 6.2 | 6.2 | +0.8% | | Total Revenue | $490.2M | $497.6M | -1.5% | | Net Income | $80.1M | $91.1M | -12.1% | | Adjusted EBITDA | $206.3M | $218.2M | -5.4% | | Total Revenue Per Capita | $78.64 | $80.44 | -2.2% | | Admission Per Capita | $41.03 | $42.68 | -3.9% | | In-Park Per Capita Spending | $37.61 | $37.76 | -0.4% | First Six Months 2025 Highlights For the first half of 2025, attendance remained nearly flat with a minor 0.1% decrease to 9.6 million guests, while total revenue declined 2.2% to $777.2 million, net income decreased 20.0% to $64.0 million, and Adjusted EBITDA fell 7.9% to $273.7 million | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Attendance (millions) | 9.6 | 9.6 | -0.1% | | Total Revenue | $777.2M | $795.0M | -2.2% | | Net Income | $64.0M | $79.9M | -20.0% | | Adjusted EBITDA | $273.7M | $297.3M | -7.9% | | Total Revenue Per Capita | $80.74 | $82.50 | -2.1% | | Admission Per Capita | $42.79 | $44.60 | -4.1% | | In-Park Per Capita Spending | $37.95 | $37.90 | +0.1% | Management Commentary & Outlook CEO Commentary CEO Marc Swanson noted Q2 attendance growth despite severe weather, driven by international and group visitation, expressing optimism for the second half with strong forward bookings and a new $500 million share repurchase program - Q2 attendance grew despite severe weather, driven by an increase in international and group visitation, particularly at all Orlando parks[4] - Forward booking trends for group business and the Discovery Cove property are up mid to high single digits for the rest of the year, with strong trends continuing into 2026[5] - The company anticipates its upcoming Halloween and Christmas events to be among the biggest ever, with early ticket sales for "Howl O' Scream" already ahead of the prior year[5] - Management is confident in its ability to deliver operational and financial improvements and expects strong second-half financial results to offset the challenges from the first half[9] Detailed Financial Results Second Quarter 2025 Results In Q2 2025, attendance increased by 0.8% to 6.2 million due to a favorable calendar shift, but total revenues decreased by 1.5% to $490.2 million, driven by lower per capita spending, resulting in a 12.1% fall in net income to $80.1 million | (In millions, except per capita amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change % | | :--- | :--- | :--- | :--- | | Total revenues | $490.2 | $497.6 | (1.5%) | | Net income | $80.1 | $91.1 | (12.1%) | | Adjusted EBITDA | $206.3 | $218.2 | (5.4%) | | Attendance | 6.2 | 6.2 | 0.8% | | Total revenue per capita | $78.64 | $80.44 | (2.2%) | - The increase in attendance was attributed to a favorable calendar shift of holidays, which was partially offset by the impact of significantly worse weather compared to the prior year quarter[10] - The decrease in total revenue was primarily a result of a decrease in total revenue per capita, which stemmed from declines in both admissions per capita and in-park per capita spending[11] First Six Months 2025 Results For the first six months of 2025, attendance slightly decreased by 0.1% to 9.6 million due to worse weather, leading to a 2.2% decline in total revenues to $777.2 million and a significant 20.0% drop in net income to $64.0 million | (In millions, except per capita amounts) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change % | | :--- | :--- | :--- | :--- | | Total revenues | $777.2 | $795.0 | (2.2%) | | Net income | $64.0 | $79.9 | (20.0%) | | Adjusted EBITDA | $273.7 | $297.3 | (7.9%) | | Attendance | 9.6 | 9.6 | (0.1%) | | Total revenue per capita | $80.74 | $82.50 | (2.1%) | - The decrease in attendance was primarily due to the impact of meaningfully worse weather, including during peak visitation periods, compared to the first six months of 2024[13] - The decrease in total revenue was a result of a decrease in total revenue per capita and a decrease in attendance[14] Capital Allocation and Corporate Initiatives Share Repurchases The Board of Directors recommended a new $500 million share repurchase authorization, pending approval by non-Hill Path stockholders, as an attractive opportunity to return capital - The Board of Directors voted to recommend a new $500 million share buyback authorization[16] - The share repurchase program is subject to approval by non-Hill Path shareholders, with a special meeting expected within 30 days[9] Rescue Efforts As a leading marine animal rescue organization, the company aided 500 animals in Q2 2025, bringing the historical total to over 42,000, demonstrating its ongoing commitment to wildlife conservation - In Q2 2025, the company rescued 500 animals in need, increasing the total number of animals helped in its history to over 42,000[17] - The company's rescue teams are on call 24/7, working with federal, state, and local agencies to help ill, injured, orphaned, or abandoned wild animals with the goal of returning them to their natural habitat[18] Financial Statements and Reconciliations Unaudited Condensed Consolidated Statements of Operations For the first half of 2025, total revenues were $777.2 million, operating income fell to $157.4 million, and net income decreased 20% to $64.0 million compared to the prior year | (In thousands) | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenues | $777,161 | $795,016 | | Operating income | $157,354 | $186,525 | | Income before income taxes | $89,103 | $105,877 | | Net income | $63,975 | $79,923 | | Earnings per share, diluted | $1.15 | $1.26 | Unaudited Reconciliation of Non-GAAP Financial Measures This section reconciles GAAP net income to non-GAAP Adjusted EBITDA and Free Cash Flow, with LTM Covenant Adjusted EBITDA at $697.6 million and H1 2025 Free Cash Flow at $96.4 million | (In thousands) | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income | $63,975 | $79,923 | | Adjusted EBITDA | $273,705 | $297,307 | | Net cash provided by operating activities | $206,911 | $244,673 | | Capital expenditures | ($110,464) | ($166,814) | | Free Cash Flow | $96,447 | $77,859 | - For the last twelve months ended June 30, 2025, Covenant Adjusted EBITDA, a key metric for debt agreements, was $697.6 million[32] Unaudited Balance Sheet Data As of June 30, 2025, the company reported $193.9 million in cash, $2.26 billion in total long-term debt, and a total stockholders' deficit of $394.9 million | (In thousands) | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $193,921 | $115,893 | | Total assets | $2,730,473 | $2,573,578 | | Total long-term debt, including current maturities | $2,255,731 | $2,263,442 | | Total stockholders' deficit | $(394,851) | $(461,540) | Unaudited Capital Expenditures Data For the first six months of 2025, total capital expenditures decreased 33.8% to $110.5 million, primarily due to a 73.2% reduction in expansion and ROI projects | (In thousands) | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | Change % | | :--- | :--- | :--- | :--- | | Core Capital Expenditures | $97,997 | $120,275 | (18.5%) | | Expansion/ROI projects | $12,467 | $46,539 | (73.2%) | | Capital expenditures, total | $110,464 | $166,814 | (33.8%) | Supplementary Information Statement Regarding Non-GAAP Financial Measures The company utilizes non-GAAP measures like Adjusted EBITDA and Free Cash Flow, along with per capita metrics, to provide a clearer view of operating performance and for internal and external evaluation - The company uses non-GAAP measures like Adjusted EBITDA because it believes they eliminate the effect of certain non-cash and other items not indicative of underlying operating performance[20][22] - Key performance metrics such as total revenue per capita, admission per capita, and in-park per capita spending are used by management to assess operating performance on a per-attendee basis[25] Forward-Looking Statements This section cautions that forward-looking statements are subject to inherent uncertainties and risks, including weather, consumer spending, and labor costs, and the company does not commit to updating them - The report contains "forward-looking statements" based on current expectations, which are inherently uncertain and subject to various risks[28] - Key risks include factors affecting attendance and spending (weather, inflation, economic uncertainty), labor costs, regulatory changes, and competition[28][29]