United Parks & Resorts(US:PRKS)2024-02-28 20:46Financial Data and Key Metrics Changes - In Q4 2023, total revenue was $389.0 million, a decrease of $1.6 million or 0.4% compared to Q4 2022, primarily due to decreases in admission per capita [65] - Total revenue per capita decreased slightly to $78.42 from $79.10 in Q4 2022, with admission per capita down 2.6% to $44.46, while in-park per capita spending increased by 1.5% to a record $33.96 [67] - For the full year 2023, total revenue was $1.73 billion, a decrease of $4.7 million or 0.3% compared to 2022, with adjusted EBITDA at $713.5 million, down $14.8 million [70][76] Business Line Data and Key Metrics Changes - Attendance in Q4 2023 increased by approximately 23,000 guests compared to Q4 2022, driven by Halloween and Christmas events, despite adverse weather impacts [66] - For the full year, total attendance was approximately 21.6 million guests, a decrease of 1.5% versus 2022, with total revenue per capita reaching a record $79.91, up 1.3% from 2022 [70][71] Market Data and Key Metrics Changes - Attendance from group and international guests was down approximately 1.3 million guests or 30% from 2019 levels, indicating a significant opportunity for recovery [45] - The company is focusing on increasing group sales and international visitation, which are currently below pre-COVID levels [120] Company Strategy and Development Direction - The company is committed to a disciplined capital allocation strategy, focusing on investing in the business, debt paydown, M&A, and returning capital to shareholders [28][32] - Plans for 2024 include new rides and attractions, with expectations for more normalized weather and a strong lineup of events to drive attendance [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to recover attendance levels to pre-COVID figures, particularly in international and group segments [16][120] - The company anticipates meaningful growth in revenue and adjusted EBITDA for 2024, driven by new attractions, pricing initiatives, and cost management [20][100] Other Important Information - The company has a strong balance sheet with approximately $618.5 million in total available liquidity and plans to spend approximately $225 million on capital expenditures in 2024 [77][86] - A new $500 million share buyback authorization was recommended by the Board of Directors, reflecting confidence in the company's undervalued shares [79][32] Q&A Session Summary Question: Hotel Development Plans - Management clarified that they are exploring various options for hotel development, including partnerships, and emphasized the potential benefits of having hotels adjacent to parks [91][93] Question: Growth Drivers for 2024 - Key growth drivers include weather normalization, new attractions, pricing initiatives, and ongoing cost management efforts [95][100] Question: Weather Impact on Attendance - Management confirmed that the estimated weather-related attendance impacts were relative to 2022, with a total of over 370,000 visits lost due to adverse weather conditions [103][105] Question: Long-term Margin Potential - Management indicated that while margins have fluctuated, they expect to see improvements through attendance growth, pricing strategies, and cost management [109][111] Question: Group and International Visitation Recovery - Management is optimistic about the recovery of group visitation in the near term and is investing resources to stimulate international attendance [116][120]