United Parks & Resorts(US:PRKS)2022-02-24 18:26Financial Data and Key Metrics Changes - In Q4 2021, the company generated record total revenue of $370.8 million, an increase of $72.8 million or 24.4% compared to Q4 2019 [15] - Record net income of $71.5 million was reported, compared to a net loss of $24.2 million in Q4 2019 [18] - Adjusted EBITDA reached a record $152.8 million, an increase of $68.8 million or 82% compared to Q4 2019 [18] - For the full year 2021, total revenue was a record $1.5 billion, an increase of $105.5 million or 7.5% compared to 2019 [19] - Record adjusted EBITDA for the full year was $662 million, an increase of $205.1 million compared to 2019 [20] Business Line Data and Key Metrics Changes - Attendance in Q4 2021 increased by 5.4% compared to Q4 2019, with a 20% increase when excluding international and group-related attendance [15][19] - Total revenue per capita in Q4 2021 was $74.87, up from $63.42 in Q4 2019, driven by higher admissions and in-park spending [16] - In-park per capita spending increased by 22.3% to $31.22 compared to Q4 2019 [16] Market Data and Key Metrics Changes - The company ended 2021 with over $800 million in available liquidity, including $443.7 million in cash and cash equivalents [8] - The deferred revenue balance as of the end of Q4 was $154.8 million, an increase of approximately 48.2% compared to December 2019 [21] Company Strategy and Development Direction - The company is focused on enhancing its parks with new rides and attractions, with a robust investment plan for future growth [7] - There is an emphasis on improving digital capabilities, including mobile app and CRM implementations, to enhance guest experience and operational efficiency [8] - The company is exploring inorganic growth opportunities related to hotels, new parks, and international expansion [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering operational and financial improvements, despite challenges from COVID-19 [5] - The company anticipates that the return of international and group attendance will significantly boost revenue [52] - Management highlighted the importance of cost reduction strategies to offset inflationary pressures [31] Other Important Information - The company received numerous industry honors in 2021, including recognition for its parks and attractions [9] - The company plans to spend approximately $150 million on core capital expenditures and an additional $30 million to $50 million on growth-related projects in 2022 [22] Q&A Session Summary Question: How should we think about the opportunity to grow EBITDA from current levels? - Management noted that attendance is still down compared to 2019, indicating potential for significant growth if attendance levels return [30] Question: What are some of the strategic opportunities the company is considering? - Management mentioned flexibility in using excess capital for investments, strategic opportunities, and potential M&A [34] Question: What is the expected contribution of Sesame Place to attendance and revenue? - Management expressed optimism about better margin and attendance profiles for the new park compared to the previous one [36] Question: How does the company view the labor environment and wage inflation in 2022? - Management is focused on finding efficiencies to offset labor costs and is expanding the use of international workers [43] Question: How much of the recent inflation has the company offset? - Management is continuously identifying efficiencies to mitigate inflationary pressures, particularly in labor and supply chain [48]