Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $497.6 million, an increase of $1.6 million or 0.3% compared to Q2 2023 [13] - Attendance increased by approximately 47,000 guests or 0.8% year-over-year [14] - Net income for Q2 2024 was $91.1 million, up from $87.1 million in Q2 2023 [16] - Adjusted EBITDA was $218.2 million, a decrease of $6.1 million compared to Q2 2023 [16] - For the first half of 2024, total revenue was $795 million, an increase of $5.6 million or 0.7% [16] Business Line Data and Key Metrics Changes - In-park per capita spending increased by 2.5%, while total revenue per capita decreased by 0.4% [14] - Admission per capita decreased by 2.9% due to lower pricing on certain promotional admission products [14] Market Data and Key Metrics Changes - International visitation was up compared to the prior year, although still down compared to 2019 [6] - The deferred revenue balance as of June 30, 2024, was $230.5 million, an increase of approximately 3.5% compared to June 2023 [18] Company Strategy and Development Direction - The company is focused on driving total revenue and believes it can grow per capita spending over time through various initiatives [21][22] - There is a strong emphasis on cost management, with expected realized savings of approximately $50 million in 2024 [10] - The company is investing in digital transformation, including CRM capabilities and a mobile app to enhance customer engagement [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving new records in revenue and adjusted EBITDA for the full year 2024 [7] - The company is optimistic about upcoming events such as Halloween and Christmas, which are expected to drive attendance and revenue [20] - Management noted that the business has remained resilient even in challenging economic conditions [34] Other Important Information - The company repurchased approximately $6.3 million shares since the end of March through August 5, 2024, representing nearly 10% of outstanding shares [5] - The June 30, 2024, net leverage ratio was 2.76 times, with total liquidity of approximately $605 million [9][17] Q&A Session Summary Question: Can you provide more color on the pressure seen in admissions per capita? - Management indicated that they are focused on driving total revenue and may use promotional offers that could impact per capita metrics [21][22] Question: What is the outlook for the second half of the year regarding EBITDA? - Management highlighted various initiatives, including events and cost efficiencies, to drive performance in the second half [25][26] Question: How is the consumer health picture evolving? - Management noted that in-park per capita spending is up, indicating a positive consumer sentiment [39] Question: What are the plans for marketing ahead of Universal's new park opening? - Management confirmed that they will ramp up marketing efforts and leverage their unique value proposition to attract visitors [51][54] Question: What is the strategy for the 2025 pass product lineup? - Management stated that they will continue to offer compelling benefits to pass holders and aim to secure their commitment [55]
United Parks & Resorts(PRKS) - 2024 Q2 - Earnings Call Transcript