United Parks & Resorts(US:PRKS)2025-08-08 11:15Revenue Performance - Total revenues for the three months ended June 30, 2025, decreased by $7.4 million, or 1.5%, to $490.2 million compared to $497.6 million in the same period of 2024[119] - Admissions revenue decreased by $8.3 million, or 3.1%, to $255.7 million, primarily due to a decrease in admission per capita[120] - Food, merchandise, and other revenue increased by $0.9 million, or 0.4%, to $234.5 million, driven by increased attendance[121] - Net revenues for the six months ended June 30, 2025 totaled $777.2 million, a decrease of $17.9 million, or 2.2%, from $795.0 million in 2024[129] - Admissions revenue for the six months ended June 30, 2025 decreased by $18.0 million, or 4.2%, to $411.9 million compared to $429.8 million for the same period in 2024[130] Attendance Metrics - Total attendance increased by approximately 48 thousand guests, or 0.8%, to 6,234 thousand compared to 6,186 thousand in the prior year quarter[119] - Total attendance for the first six months of 2025 decreased by approximately 11 thousand guests, or 0.1%, compared to the same period in 2024[130] Operating Expenses and Income - Operating expenses increased by $14.6 million, or 7.7%, to $204.8 million, primarily due to a $9.6 million increase in non-cash self-insurance adjustments[123] - Total costs and expenses increased by $16.5 million, or 5.0%, to $349.7 million compared to $333.2 million in the prior year[119] - Operating income for the six months ended June 30, 2025 was $157.4 million, a decrease of $29.2 million, or 15.6%, from $186.5 million in 2024[129] Net Income and Earnings - Net income for the three months ended June 30, 2025, decreased by $11.0 million, or 12.1%, to $80.1 million compared to $91.1 million in the same period of 2024[119] - The company reported a net income of $80.1 million for the three months ended June 30, 2025, compared to $91.1 million for the same period in 2024[160] Interest and Debt - Interest expense decreased by $5.4 million, or 13.8%, to $33.9 million compared to $39.4 million in the prior year[119] - Interest expense for the six months ended June 30, 2025 decreased by $10.1 million, or 12.9%, to $68.1 million compared to $78.2 million for the same period in 2024[136] - Approximately $1.5 billion of the company's outstanding long-term debt represents variable-rate debt, with a hypothetical 100 bps increase in Term SOFR potentially increasing annual interest expense by approximately $22.3 million[167] - The company incurred $33.9 million in interest expense for the three months ended June 30, 2025, compared to $39.4 million for the same period in 2024[160] - The company had outstanding $725 million in aggregate principal amount of Senior Notes due on August 15, 2029, as of June 30, 2025[153] Cash Flow and Capital Expenditures - Net cash provided by operating activities was $206.9 million during the six months ended June 30, 2025, down from $244.7 million in 2024[144] - Capital expenditures for the six months ended June 30, 2025 totaled $110.5 million, a decrease from $166.8 million in 2024[145] - Net cash used in financing activities for the six months ended June 30, 2025, was $9.2 million for share repurchases and $7.7 million for long-term debt repayments, compared to $234.3 million for long-term debt repayments and $228.9 million for share repurchases in the same period of 2024[149] Taxation - Provision for income taxes for the six months ended June 30, 2025 was $25.1 million, compared to $26.0 million for the same period in 2024[138] - The consolidated effective tax rate for the six months ended June 30, 2025 was 28.2%, compared to 24.5% for the same period in 2024[138] Compliance and Adjusted Metrics - The company reported Adjusted EBITDA of $206.3 million for the three months ended June 30, 2025, compared to $218.2 million for the same period in 2024, and $273.7 million for the six months ended June 30, 2025, compared to $297.3 million in 2024[160] - Covenant Adjusted EBITDA for the last twelve months was $697.6 million, which includes estimated cost savings of $13.4 million and other adjustments of $7.6 million[160] - As of June 30, 2025, the company was in compliance with all covenants in the credit agreement governing the Senior Secured Credit Facilities and the indentures governing the Senior Notes[154] Contractual Obligations - The company has not experienced any material changes to its contractual obligations as of June 30, 2025, compared to previous disclosures[161]