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United Parks & Resorts(PRKS) - 2025 Q2 - Quarterly Results

Report Overview This section introduces United Parks & Resorts Inc.'s Q2 and first six months of fiscal year 2025 financial results, CEO commentary, and key performance highlights Introduction United Parks & Resorts Inc. (NYSE: PRKS) announced its financial results for the second quarter and first six months of fiscal year 2025 on August 7, 2025 - United Parks & Resorts Inc. (NYSE: PRKS) reported financial results for Q2 and first six months of fiscal year 20251 CEO Commentary and Business Outlook CEO Marc Swanson highlighted attendance growth in Q2 despite adverse weather, driven by international and group visitation and strong performance at Orlando parks, expressing confidence in future bookings and announcing a new share repurchase program - Attendance grew in Q2 despite severe weather, with increases in international and group visitation and at all Orlando parks4 - Forward booking trends for group business and Discovery Cove are up mid to high single digits for the remainder of 2025, with strong trends also seen for 20265 - The Board approved a new $500 million share repurchase program, pending approval by non-Hill Path stockholders, reflecting confidence in the company's financial position and shareholder value9 - Management expects to deliver strong second-half financial results, focusing on operational and financial improvements despite first-half headwinds9 Key Highlights The company reported mixed results for Q2 and the first six months of 2025, with attendance showing slight increases or minor decreases, while total revenue, net income, and Adjusted EBITDA generally declined, and per capita spending metrics also saw slight decreases, except for in-park per capita spending for the six-month period Second Quarter 2025 Highlights For the second quarter of 2025, United Parks & Resorts Inc. reported a slight increase in attendance but declines in total revenue, net income, and Adjusted EBITDA compared to Q2 2024, with total revenue per capita, admission per capita, and in-park per capita spending also decreasing | Metric | Q2 2025 | Q2 2024 | Change (%) | | :-------------------------- | :------ | :------ | :--------- | | Attendance (million guests) | 6.2 | 6.2 | 0.8% | | Total Revenue ($ million) | 490.2 | 497.6 | (1.5%) | | Net Income ($ million) | 80.1 | 91.1 | (12.1%) | | Adjusted EBITDA ($ million) | 206.3 | 218.2 | (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 | $37.76 | (0.4%) | First Six Months 2025 Highlights For the first six months of 2025, attendance remained relatively flat, while total revenue, net income, and Adjusted EBITDA all decreased compared to the same period in 2024, with total revenue per capita and admission per capita also declining, but in-park per capita spending saw a slight increase | Metric | 6 Months 2025 | 6 Months 2024 | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | | Attendance (million guests) | 9.6 | 9.6 | (0.1%) | | Total Revenue ($ million) | 777.2 | 795.0 | (2.2%) | | Net Income ($ million) | 64.0 | 79.9 | (20.0%) | | Adjusted EBITDA ($ million) | 273.7 | 297.3 | (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% | Other Highlights Beyond financial metrics, the company's Board recommended a new $500 million share buyback authorization and continued its significant animal rescue efforts, aiding 500 animals in Q2 2025 - Board of Directors recommended a new $500 million share buyback authorization, subject to non-Hill Path shareholders' approval8 - Aided 500 animals in need in the wild during Q2 2025, bringing the historical total to over 42,000 animals8 Financial Performance Analysis This section provides a detailed analysis of the company's financial results for the second quarter and first six months of fiscal year 2025, highlighting revenue, net income, attendance, and per capita spending trends Second Quarter 2025 Financial Results In Q2 2025, the company reported $490.2 million in total revenues and $80.1 million in net income, with attendance increasing by 0.8% to 6.2 million guests, primarily due to a favorable calendar shift of Easter and Spring Break, partially offset by significantly worse weather, leading to a decrease in total revenue mainly driven by lower total revenue per capita Second Quarter 2025 Key Financials | Metric | 2025 (Millions) | 2024 (Millions) | Change % | | :-------------------------- | :-------------- | :-------------- | :------- | | Total revenues ($) | $490.2 | $497.6 | (1.5%) | | Net income ($) | $80.1 | $91.1 | (12.1%) | | Earnings per share, diluted ($)| $1.45 | $1.46 | (0.7%) | | Adjusted EBITDA ($) | $206.3 | $218.2 | (5.4%) | | Net cash provided by operating activities ($)| $181.2 | $173.2 | 4.6% | | Attendance (million guests) | 6.2 | 6.2 | 0.8% | | Total revenue per capita ($)| $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%) | - Attendance increased by 48,000 guests (0.8%) due to a favorable calendar shift of holidays, despite significantly worse weather10 - Total revenue decreased by $7.4 million, primarily due to a 2.2% decrease in total revenue per capita, driven by lower admissions per capita and in-park per capita spending11 First Six Months 2025 Financial Results For the first six months of 2025, the company generated $777.2 million in total revenues and $64.0 million in net income, with attendance slightly decreasing by 0.1% to 9.6 million guests, mainly due to significantly worse weather during peak visitation periods, and the $17.9 million decrease in total revenue was attributed to both a decrease in total revenue per capita (2.1%) and a slight decrease in attendance, with admissions per capita declining while in-park per capita spending saw a marginal increase First Six Months 2025 Key Financials | Metric | 2025 (Millions) | 2024 (Millions) | Change % | | :-------------------------- | :-------------- | :-------------- | :------- | | Total revenues ($) | $777.2 | $795.0 | (2.2%) | | Net income ($) | $64.0 | $79.9 | (20.0%) | | Earnings per share, diluted ($)| $1.15 | $1.26 | (8.7%) | | Adjusted EBITDA ($) | $273.7 | $297.3 | (7.9%) | | Net cash provided by operating activities ($)| $206.9 | $244.7 | (15.4%) | | Attendance (million guests) | 9.6 | 9.6 | (0.1%) | | Total revenue per capita ($)| $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% | - Attendance decreased by 11,000 guests (0.1%) primarily due to significantly worse weather during peak visitation periods13 - Total revenue decreased by $17.9 million, driven by a 2.1% decrease in total revenue per capita and a slight decrease in attendance, with in-park per capita spending increasing by 0.1% to a record $37.95148 Non-GAAP Financial Measures and Key Performance Metrics This section clarifies the company's use of non-GAAP financial measures like Adjusted EBITDA and Free Cash Flow, along with key performance metrics such as per capita spending, to assess operational performance and inform strategic decisions Statement Regarding Non-GAAP Financial Measures The earnings release includes non-GAAP financial measures such as Adjusted EBITDA, Covenant Adjusted EBITDA, and Free Cash Flow, which are not GAAP-recognized, but management uses these measures to assess underlying operating performance, evaluate executive compensation, comply with debt covenants, and gauge liquidity, acknowledging their limitations and potential non-comparability with other companies' similarly titled measures - Adjusted EBITDA, Covenant Adjusted EBITDA, and Free Cash Flow are non-GAAP measures used by management to assess underlying operating performance, evaluate executive compensation, and comply with debt covenants20222324 - These non-GAAP measures have limitations and may not be comparable to similarly titled measures of other companies21 Key Performance Metrics Definitions The company utilizes key performance metrics including total revenue per capita, admission per capita, and in-park per capita spending to evaluate park operating performance and inform strategic decisions, providing investors with a consistent methodology to analyze revenue on a per-attendee basis - Key performance metrics include total revenue per capita (total revenue / attendance), admission per capita (admissions revenue / attendance), and in-park per capita spending (food, merchandise, and other revenue / attendance)2552 - Management uses these metrics to assess operating performance per attendee and make strategic operating decisions, providing investors with a consistent analysis methodology25 Company Information This section provides an overview of United Parks & Resorts Inc., details of its Q2 2025 conference call, a cautionary statement regarding forward-looking information, and contact details for investor relations and media About United Parks & Resorts Inc. United Parks & Resorts Inc. is a global theme park and entertainment company operating 13 parks across seven markets in the U.S. and Abu Dhabi, including brands like SeaWorld and Busch Gardens, and is a leader in animal welfare, training, and veterinary care, and one of the largest marine animal rescue organizations globally, having aided over 42,000 animals - United Parks & Resorts Inc. (NYSE: PRKS) is a global theme park and entertainment company with 13 parks across seven markets in the U.S. and Abu Dhabi26 - The company owns or licenses brands such as SeaWorld®, Busch Gardens®, Discovery Cove, Sesame Place®, Water Country USA, Adventure Island, and Aquatica®26 - It is a global leader in animal welfare and one of the leading marine animal rescue organizations, having helped over 42,000 animals26 Conference Call Details United Parks & Resorts Inc. held a conference call on August 7, 2025, at 9 a.m. Eastern Time to discuss its Q2 and first six months 2025 financial results, with a live webcast and replay made available on the company's investor relations website, and a telephonic replay also accessible for a week - A conference call was held on August 7, 2025, at 9 a.m. ET to discuss Q2 and first six months 2025 results19 - The call was broadcast live and a replay was available on www.UnitedParksInvestors.com and via telephonic access19 Forward-Looking Statements This press release contains forward-looking statements regarding future results, plans, and business trends, which are based on current expectations and assumptions but are subject to inherent uncertainties and risks, with actual results potentially differing materially due to various factors including weather, economic conditions, labor costs, regulatory changes, and competitive pressures, cautioning readers not to place undue reliance on these statements and advising review of SEC filings for comprehensive risk factors - The press release includes forward-looking statements about future results, plans, and business trends, identified by words like 'might,' 'will,' 'expects,' and 'believes'28 - These statements are based on current expectations and assumptions but are subject to numerous risks and uncertainties, many beyond management's control, that could cause actual results to differ materially2829 - Key risks include adverse weather, economic factors, labor shortages, regulatory changes, competitive pressures, and cybersecurity risks2829 Contact Information Contact information for Investor Relations and Media inquiries is provided for United Parks & Resorts Inc - Investor Relations contact: Matthew Stroud, Investors@unitedparks.com, 888-410-181230 - Media contact: Chris Petrikin, chris.petrikin@unitedparks.com30 Unaudited Condensed Consolidated Financial Data This section presents the unaudited condensed consolidated financial data, including statements of operations, reconciliation of non-GAAP measures, balance sheet data, capital expenditures, and attendance/per capita amounts, along with detailed notes explaining various adjustments and definitions Unaudited Condensed Consolidated Statements of Operations The unaudited condensed consolidated statements of operations show a decrease in total revenues for both the three and six months ended June 30, 2025, compared to 2024, with net income and operating income also declining significantly over both periods, while operating expenses increased Unaudited Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change $ (thousands) | Change % | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change $ (thousands) | Change % | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------- | :------- | :----------------------------- | :----------------------------- | :------------------- | :------- | | Admissions | $255,740 | $264,003 | $(8,263) | (3.1%) | $411,855 | $429,812 | $(17,957) | (4.2%) | | Food, merchandise and other | $234,472 | $233,590 | $882 | 0.4% | $365,306 | $365,204 | $102 | 0.0% | | Total revenues | $490,212 | $497,593 | $(7,381) | (1.5%) | $777,161 | $795,016 | $(17,855) | (2.2%) | | Cost of food, merchandise and other revenues | $37,173 | $38,645 | $(1,472) | (3.8%) | $60,132 | $61,692 | $(1,560) | (2.5%) | | Operating expenses | $204,789 | $190,199 | $14,590 | 7.7% | $366,059 | $355,082 | $10,977 | 3.1% | | Selling, general and administrative expenses | $64,402 | $63,788 | $614 | 1.0% | $108,539 | $111,665 | $(3,126) | (2.8%) | | Severance and other separation costs | $408 | $296 | $112 | 37.8% | $408 | $589 | $(181) | (30.7%) | | Depreciation and amortization | $42,974 | $40,281 | $2,693 | 6.7% | $84,669 | $79,463 | $5,206 | 6.6% | | Total costs and expenses | $349,746 | $333,209 | $16,537 | 5.0% | $619,807 | $608,491 | $11,316 | 1.9% | | Operating income | $140,466 | $164,384 | $(23,918) | (14.6%) | $157,354 | $186,525 | $(29,171) | (15.6%) | | Other expense (income), net | $216 | $(147) | $363 | NM | $193 | $33 | $160 | NM | | Interest expense | $33,951 | $39,386 | $(5,435) | (13.8%) | $68,058 | $78,163 | $(10,105) | (12.9%) | | Loss on early extinguishment of debt | $— | $2,452 | $(2,452) | NM | $— | $2,452 | $(2,452) | NM | | Income before income taxes | $106,299 | $122,693 | $(16,394) | (13.4%) | $89,103 | $105,877 | $(16,774) | (15.8%) | | Provision for income taxes | $26,191 | $31,569 | $(5,378) | (17.0%) | $25,128 | $25,954 | $(826) | (3.2%) | | Net income | $80,108 | $91,124 | $(11,016) | (12.1%) | $63,975 | $79,923 | $(15,948) | (20.0%) | | Earnings per share, diluted ($)| $1.45 | $1.46 | | | $1.15 | $1.26 | | | Unaudited Reconciliation of Non-GAAP Financial Measures The reconciliation of non-GAAP financial measures details the adjustments made from net income to arrive at Adjusted EBITDA and Free Cash Flow, showing that for the three months ended June 30, 2025, Adjusted EBITDA decreased by 5.4% to $206.3 million, and for the six months, it decreased by 7.9% to $273.7 million, while Free Cash Flow increased significantly for both periods Unaudited Reconciliation of Non-GAAP Financial Measures (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change $ (thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change $ (thousands) | Last Twelve Months Ended June 30, 2025 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------- | :----------------------------- | :----------------------------- | :------------------- | :------------------------------------- | | Net income | $80,108 | $91,124 | $(11,016) | $63,975 | $79,923 | $(15,948) | $211,549 | | Provision for income taxes | 26,191 | 31,569 | (5,378) | 25,128 | 25,954 | (826) | 63,203 | | Interest expense | 33,951 | 39,386 | (5,435) | 68,058 | 78,163 | (10,105) | 157,657 | | Loss on early extinguishment of debt | — | 2,452 | (2,452) | — | 2,452 | (2,452) | 1,487 | | Depreciation and amortization | 42,974 | 40,281 | 2,693 | 84,669 | 79,463 | 5,206 | 168,644 | | Equity-based compensation expense | 4,043 | 2,979 | 1,064 | 8,376 | 7,270 | 1,106 | 15,723 | | Loss on impairment or disposal of assets and certain non-cash expenses | 12,117 | 2,279 | 9,838 | 13,208 | 7,883 | 5,325 | 38,737 | | Business optimization, development and strategic initiative costs | 3,045 | 4,120 | (1,075) | 4,309 | 7,654 | (3,345) | 15,053 | | Certain investment costs and other taxes | 222 | 1,019 | (797) | 225 | 4,139 | (3,914) | (322) | | COVID-19 related incremental costs | 217 | 1,355 | (1,138) | 505 | 1,861 | (1,356) | (4,398) | | Other adjusting items | 3,397 | 1,589 | 1,808 | 5,252 | 2,545 | 2,707 | 9,255 | | Adjusted EBITDA | $206,265 | $218,153 | $(11,888) | $273,705 | $297,307 | $(23,602) | $676,588 | | Estimated cost savings | | | | | | | 13,400 | | Other adjustments as defined in the Debt Agreements | | | | | | | 7,595 | | Covenant Adjusted EBITDA | | | | | | | $697,583 | | Net cash provided by operating activities | $181,196 | $173,227 | $7,969 | $206,911 | $244,673 | $(37,762) | | | Capital expenditures | 53,561 | 79,528 | (25,967) | 110,464 | 166,814 | (56,350) | | | Free Cash Flow | $127,635 | $93,699 | $33,936 | $96,447 | $77,859 | $18,588 | | Unaudited Balance Sheet Data As of June 30, 2025, the company's cash and cash equivalents increased significantly to $193.9 million from $115.9 million at December 31, 2024, with total assets also growing, while total long-term debt remained relatively stable, and the stockholders' deficit improved from $(461.5) million to $(394.9) million Unaudited Balance Sheet Data (in thousands) | Metric | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------------ | :------------------ | :---------------------- | | Cash and cash equivalents ($) | $193,921 | $115,893 | | Total assets ($) | $2,730,473 | $2,573,578 | | Deferred revenue ($) | $207,753 | $152,655 | | Long-term debt, including current maturities: ($)| | | | Term B-3 Loans ($) | $1,530,731 | $1,538,442 | | Senior Notes ($) | $725,000 | $725,000 | | Total long-term debt, including current maturities ($)| $2,255,731 | $2,263,442 | | Total stockholders' deficit ($) | $(394,851) | $(461,540) | Unaudited Capital Expenditures Data Total capital expenditures for the six months ended June 30, 2025, decreased by 33.8% to $110.5 million compared to $166.8 million in the prior year, with this reduction driven by decreases in both core capital expenditures (park rides, attractions, maintenance) and expansion/ROI projects Unaudited Capital Expenditures Data (in thousands) | Capital Expenditures | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change $ (thousands) | Change % | | :------------------- | :----------------------------- | :----------------------------- | :------------------- | :------- | | Core ($) | $97,997 | $120,275 | $(22,278) | (18.5%) | | Expansion/ROI projects ($)| $12,467 | $46,539 | $(34,072) | (73.2%) | | Total ($) | $110,464 | $166,814 | $(56,350) | (33.8%) | Unaudited Other Data (Attendance and Per Capita Amounts) Attendance for Q2 2025 increased by 0.8% to 6.2 million guests, while for the first six months, it slightly decreased by 0.1% to 9.6 million guests, with total revenue per capita and admission per capita decreasing across both periods, but in-park per capita spending for the six months ended June 30, 2025, saw a marginal increase of 0.1% Unaudited Other Data (Attendance and Per Capita Amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (thousands) | Change % | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (thousands) | Change % | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------- | :------- | :----------------------------- | :----------------------------- | :------------------- | :------- | | Attendance (in thousands) | 6,234 | 6,186 | 48 | 0.8% | 9,625 | 9,636 | (11) | (0.1%) | | Total revenue per capita ($)| $78.64 | $80.44 | $(1.80) | (2.2%) | $80.74 | $82.50 | $(1.76) | (2.1%) | | Admission per capita ($) | $41.03 | $42.68 | $(1.65) | (3.9%) | $42.79 | $44.60 | $(1.81) | (4.1%) | | In-Park per capita spending ($)| $37.61 | $37.76 | $(0.15) | (0.4%) | $37.95 | $37.90 | $0.05 | 0.1% | Notes to Unaudited Financial Tables The notes provide detailed explanations for various adjustments and definitions used in the financial tables, including specifics on severance costs, debt extinguishment losses, anti-dilutive shares, equity-based compensation, non-cash self-insurance reserve adjustments, business optimization costs, investment costs, COVID-19 related expenses, and other adjusting items, along with clarifications for Adjusted EBITDA, Covenant Adjusted EBITDA, and Free Cash Flow definitions - Severance and other separation costs are reflected in note (a)40 - Loss on early extinguishment of debt and write-off of debt issuance costs (note b) relates to 2024 refinancing transactions40 - Anti-dilutive shares excluded from EPS computation were approximately 686,000 for Q2 2025 and 671,000 for the six months ended June 30, 2025 (note c)41 - Non-cash equity compensation expenses and related payroll taxes are detailed in note (d)42 - Note (e) primarily reflects non-cash self-insurance reserve adjustments and asset write-offs43 - Business optimization, development, and strategic initiative costs (note f) include other business optimization costs and third-party consulting costs4445 - Adjusted EBITDA (note j) is defined as net income before income tax, interest, depreciation, and amortization, further adjusted for certain non-cash and other items48 - Covenant Adjusted EBITDA (note m) includes additional adjustments for estimated cost savings and other costs as permitted by Debt Agreements495051 - Free Cash Flow (note n) is defined as net cash provided by operating activities less capital expenditures51