SeaWorld(SEAS) - 2025 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2025 was $373.5 million, a decrease of $10.8 million or 2.8% from Q4 2024[7] - Net income for Q4 2025 was $15.1 million, a decrease of $12.8 million or 46% from Q4 2024, including a one-time non-cash write-off of bad debt expense of $7.6 million[7] - Adjusted EBITDA for Q4 2025 was $115.2 million, a decrease of $29.3 million or 20.3% from Q4 2024[7] - Total revenue for fiscal 2025 was $1.7 billion, a decrease of $62.7 million or 3.6% from fiscal 2024[14] - Net income for fiscal 2025 was $168.4 million, a decrease of $59.1 million or 26.0% from fiscal 2024[14] - Adjusted EBITDA for fiscal 2025 was $605.1 million, a decrease of $95.0 million or 13.6% from fiscal 2024[14] - Operating income for Q4 2025 was $56.40 million, a decline of 25.5% compared to $75.75 million in Q4 2024[35] - Net income for the year ended December 31, 2025, was $3 million, a decrease of 46.0% from $7 million in 2024[35] - Basic earnings per share for Q4 2025 were $0.28, down from $0.51 in Q4 2024[35] - Free cash flow for the year ended December 31, 2025, was $(149,162,000), a decrease of 67.4% compared to $(178,703,000) in 2024[40] - Adjusted EBITDA for the year ended December 31, 2025, was $625,430,000, a decrease of 14.4% from $730,200,000 in 2024[36] Attendance and Guest Metrics - Attendance for Q4 2025 was 4.8 million guests, a decrease of approximately 126,000 guests or 2.6% from Q4 2024[7] - In-park per capita spending reached a record $35.89 in Q4 2025, an increase of 2.1% from Q4 2024[7] - Total revenue per capita for Q4 2025 was $78.56, down 0.2% from $78.75 in Q4 2024[42] - Attendance decreased by 2.6% in Q4 2025 to 4,755,000 from 4,881,000 in Q4 2024[42] Costs and Expenses - Selling, general and administrative expenses increased by 17.4% to $58.55 million in Q4 2025, compared to $49.87 million in Q4 2024[35] - The company reported a loss on early extinguishment of debt and write-off of debt issuance costs of $1.48 million in Q4 2025[35] - Interest expense for Q4 2025 was $32.56 million, a decrease of 34.8% from $49.91 million in Q4 2024[35] - Total costs and expenses for the year ended December 31, 2025, were $1,297 million, an increase of 2.8% from $1,262 million in 2024[35] - The company incurred severance and other separation costs of $565,000 in Q4 2025, compared to no such costs in Q4 2024[35] Shareholder Actions - The company repurchased approximately 6.7 million shares, representing about 12% of shares outstanding, from 2025 through February 24, 2026[5] Future Outlook - Looking ahead to 2026, advanced booking revenue for Discovery Cove is up high single digits, and company-wide group booking revenue is pacing up over 50%[9] - Forward-looking statements indicate potential risks including attendance fluctuations, economic uncertainties, and labor costs that could materially affect future results[29][31] Company Operations and Commitments - The company operates 13 parks across seven markets in the United States and Abu Dhabi, featuring a diverse portfolio of brands including SeaWorld® and Busch Gardens®[27] - The company has a significant commitment to animal welfare, having rescued over 42,000 animals in need over nearly 60 years[27] Financial Metrics and Risk Factors - The company emphasizes the importance of Adjusted EBITDA, Covenant Adjusted EBITDA, and Free Cash Flow as key financial metrics, which may not be comparable to similar measures from other companies due to different calculation methods[22][23][24][25] - The company uses Free Cash Flow to evaluate its ability to generate cash flow from operations, excluding significant expenditures like mandatory debt service[25] - Management believes that the presentation of Covenant Adjusted EBITDA provides investors with insights into compliance with financial covenants in the company's credit agreements[24] - The company highlights the relevance of per-capita metrics for investors to analyze revenue consistency over periods[26] - The company is subject to various risks including regulatory changes, labor disputes, and economic factors that could impact its operations and financial performance[31] - The company encourages stakeholders to review its filings with the SEC for detailed risk factors and financial information[31] Debt and Capital Expenditures - Total long-term debt as of December 31, 2025, was $2,248,019,000, a slight decrease from $2,263,442,000 in 2024[38] - Capital expenditures for the year ended December 31, 2025, totaled $217,489,000, down 12.5% from $248,430,000 in 2024[40] - The company experienced a 50.4% decrease in capital expenditures for expansion/ROI projects, totaling $35,051,000 in 2025 compared to $70,712,000 in 2024[40] - The Company's Debt Agreements allow for the calculation of certain covenants based on Covenant Adjusted EBITDA, which includes adjustments for estimated savings from restructurings and cost-saving initiatives over the next 24 months[52] - Covenant Adjusted EBITDA is further adjusted for costs related to recruiting, retention, public company compliance, and litigation as permitted by the Debt Agreements[53] - Free Cash Flow is defined as net cash provided by operating activities less capital expenditures[54] - Capital expenditures during the period include investments in park rides, attractions, maintenance, and park expansion projects[55]