
Financial Data and Key Metrics Changes - Total revenue for Q2 2023 was $496.0 million, a decrease of $8.8 million or 1.7% compared to Q2 2022, primarily due to a 2.0% decrease in attendance, partially offset by a 0.3% increase in total revenue per capita [30][31] - Net income for Q2 2023 was $87.1 million, down from $116.6 million in Q2 2022, attributed to increased interest expenses [36] - Adjusted EBITDA for Q2 2023 was $224.2 million, a decrease of $10.2 million compared to Q2 2022 [36] Business Line Data and Key Metrics Changes - In-park per capita spending increased by 0.6% to a record $36.84 in Q2 2023, despite adverse weather and construction delays impacting in-park spending [31][33] - Attendance at SeaWorld Abu Dhabi exceeded expectations since its opening, contributing positively to group booking revenue trends [10][23] Market Data and Key Metrics Changes - Attendance was negatively impacted by adverse weather conditions, including Canadian wildfires, which affected most markets during peak visitation periods [8][30] - Group bookings revenue for the first six months of 2023 exceeded 2019 levels, indicating strong demand [10] Company Strategy and Development Direction - The company is focusing on cost and efficiency improvements, raising its target savings to $60 million from $50 million [15] - Investments are being made to enhance guest experiences, including digital transformation initiatives and park-specific ROI investments [17][21] - The company plans to open its first hotels by 2026 and is exploring additional international opportunities [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the significant impact of weather on attendance and revenue, expressing cautious optimism for upcoming popular events [52][54] - The company remains confident in its long-term strategy and ability to deliver improved operational and financial results [44][106] Other Important Information - The company reported a strong balance sheet with a net total leverage ratio of 2.61 times and approximately $518 million in total available liquidity [25][39] - Capital expenditures for Q2 2023 were $75.8 million, with expectations to spend approximately $260 million to $280 million in total CapEx for 2023 [40][41] Q&A Session Summary Question: Impact of weather on attendance - Management noted that weather significantly impacted attendance, with estimates suggesting attendance would have been up without these factors [46][47] Question: Changes in revenue and EBITDA outlook - Management removed previous language about 2023 potentially being a record year due to weather impacts, but expressed optimism for upcoming events [50][52] Question: Cost savings details - Management clarified that the target for cost savings is now $60 million, with ongoing efforts to drive efficiencies [56][57] Question: Performance of SeaWorld Abu Dhabi - Attendance at SeaWorld Abu Dhabi has exceeded expectations, with a minor financial impact of around $700,000 for the quarter [60][61] Question: Attendance breakdown by group and international visitors - International attendance remains down approximately 50% compared to 2019, while domestic attendance has seen slight increases [96] Question: Capital allocation priorities - The company is focused on investing in park improvements and exploring options for debt repayment or share buybacks [90][92]