
Financial Data and Key Metrics Changes - The company reported record total revenue of $297.4 million for Q1 2024, an increase of $4.1 million or 1.4% compared to Q1 2023 [31] - Adjusted EBITDA for the quarter was $79.2 million, an increase of $6.7 million compared to the same period last year [36] - The net loss for Q1 2024 was $11.2 million, an improvement from a net loss of $16.5 million in Q1 2023 [36] Business Line Data and Key Metrics Changes - In-park per capita revenue, excluding certain one-time revenue, increased by 4% during the quarter, marking the 16th consecutive quarter of growth [9] - Attendance increased by approximately 72,000 guests or 2.1% compared to the prior year quarter [32] - Admission per capita decreased by 0.9% to $48.06, primarily due to the admissions product mix [34] Market Data and Key Metrics Changes - International visitation improved significantly compared to 2023, although it remains down compared to 2019 [11] - Group bookings are running well ahead of 2023, indicating strong demand in that segment [11] - Deferred revenue balance as of the end of April was $217.7 million, with a 1.4% increase compared to April 2023 [41] Company Strategy and Development Direction - The company is focused on cost management and efficiency, expecting $50 million in realized savings for 2024 [21] - Digital transformation initiatives are underway, including improvements to the mobile app, which has seen a 10% increase in total revenue generated compared to the prior year [22] - The company is exploring hotel opportunities across its portfolio, emphasizing a focus on ROI [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving new records in revenue and adjusted EBITDA for 2024, despite challenges from weather and attendance shifts [12][31] - The company believes it has significant opportunities to drive attendance and per capita spending, with a strong lineup of new attractions and events planned for the year [12][14] - Management noted that the balance sheet remains strong, with a net total leverage ratio of 2.57 times and approximately $577 million in total available liquidity [27] Other Important Information - The company has initiated a $500 million share repurchase program, with $20.2 million spent on repurchasing shares in Q1 2024 [29] - The mobile app has been downloaded over 9.4 million times, with a 28% increase in average transaction value for food and beverage purchases made through the app [22] - The company is committed to animal rescue efforts, having aided 173 animals in need during the first quarter [45] Q&A Session Summary Question: Insights on per capita spending trends - Management indicated that pricing will continue to be a focus, with group business increasing but typically having a lower per capita spend [50] Question: Update on hotel investments - Management is focused on finding the right structure and ROI for hotel projects, emphasizing that they are taking the necessary time to ensure proper execution [54] Question: Underlying demand trends and weather impacts - Management noted that attendance was slightly positive when combining March and April, with weather being a significant factor in Q1 [59] Question: Consumer price sensitivity and spending trends - Management observed that in-park spending is up, indicating that consumers are willing to spend despite economic pressures [75] Question: Cost management and labor wage outlook - Management reported a successful focus on managing labor expenses, with a year-over-year decrease in labor rates [78] Question: Group and international attendance progress - Management confirmed that group attendance is up compared to both 2023 and 2019, while international attendance is improving but still down from 2019 levels [81] Question: Competitive landscape with new park openings - Management expressed confidence in their value proposition and competitive positioning in the market, despite the upcoming opening of Epic Universe [88]