SeaWorld Entertainment, Inc. Reports Second Quarter and First Six Months 2023 Results
- Total revenue increased by 1.8% for the first six months of 2023 compared to the same period in 2022, reaching a record $789.4 million.
- Adjusted EBITDA decreased by 4.4% for Q2 2023 compared to Q2 2022, reaching $224.2 million.
- SeaWorld Abu Dhabi opened during the quarter, with attendance exceeding expectations and group booking revenue trends up significantly versus 2022 and 2019.
- Net income decreased by 34.4% for the first six months of 2023 compared to the same period in 2022, reaching $70.6 million.
- Attendance for the first six months of 2023 decreased by 1.5% compared to the same period in 2022, reaching 9.5 million guests.
Second Quarter 2023 Highlights
- Attendance was 6.1 million guests, a decrease of approximately 0.1 million guests from the second quarter of 2022.
- Total revenue was
, a decrease of$496.0 million or$8.8 million 1.7% from the second quarter of 2022. - Net income was
, a decrease of$87.1 million or$29.6 million 25.3% from the second quarter of 2022. - Adjusted EBITDA[1] was
, a decrease of$224.2 million or$10.2 million 4.4% from the second quarter of 2022. - Total revenue per capita[2] increased
0.3% to a record from the second quarter of 2022. Admission per capita[2] decreased$80.80 two cents to while in-park per capita spending[2] increased$43.96 0.6% to a record from the second quarter of 2022.$36.84
First Six Months 2023 Highlights
- Attendance was 9.5 million guests, a decrease of 0.1 million guests or
1.5% from the first six months of 2022. - Total revenue was a record
, an increase of$789.4 million or$13.9 million 1.8% from the first six months of 2022. - Net income was
, a decrease of$70.6 million or$37.0 million 34.4% from the first six months of 2022. - Adjusted EBITDA[1] was
, a decrease of$296.7 million or$3.7 million 1.2% from the first six months of 2022. - Total revenue per capita[2] increased
3.4% to a record from the first six months of 2022. Admission per capita[2] increased$82.94 3.3% to a record , while in-park per capita spending[2] increased$45.57 3.5% to a record from the first six months of 2022.$37.37
Other Highlights
- During the second quarter, the Company repurchased 235,000 shares for an aggregate total of approximately
, leaving approximately$13.9 million remaining under the Share Repurchase Program as of June 30, 2023.$42.4 million - During the second quarter of 2023, the Company came to the aid of 96 animals in need in the wild. The total number of animals the Company has helped over its history is more than 40,000.
"We are pleased to report another quarter of solid financial results despite the impact of significantly adverse weather, in-park venue closures and related disruptions due to construction delays and a shift in the timing of the opening of new rides during the quarter," said Marc Swanson, Chief Executive Officer of SeaWorld Entertainment, Inc. "Our results during the second quarter further underscore the resiliency of our business, the effectiveness of our strategy and the tireless efforts of our outstanding team. Some combination of unusually hot and cold weather, rain and / or the fallout from Canadian wildfires impacted most of our markets during the quarter. In park spending was impacted by the adverse weather and delays in construction projects resulting in prolonged closures of certain in-park facilities and other in park disruptions during the quarter. Despite the unusual headwinds in the quarter, attendance still grew at certain of our parks and total per capita spending increased for the 17th consecutive quarter."
"During the quarter, SeaWorld Abu Dhabi opened, the first SeaWorld park outside of the United States. We are really proud of this park, happy to see attendance well ahead of expectations to date and excited for what this park will deliver over time. I continue to be very encouraged by our group booking revenue trends which are up significantly versus 2022 and 2019, and group bookings revenue to date, through the first six months of the year, already exceeds 2019 bookings revenue for the full year. I am also very excited about our remaining summer events over the next few weeks and our planned Halloween and Christmas events which have grown bigger and bigger over the years and based on what we have planned, we expect this year to be our best events yet. I want to thank all of our ambassadors for their efforts these past few months as we wrap-up this summer season and head into our increasingly popular Halloween and Christmas events for the balance of the year," continued Swanson.
[1] This earnings release includes Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow which are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the
[2] This earnings release includes key performance metrics such as total revenue per capita, admissions per capita and in-park per capita spending. See "Statement Regarding Non-GAAP Financial Measures and Key Performance Metrics" section for definitions and further details.
"We were also thrilled to have recently received recognition from
"We have made significant investments in our business this year and will continue to make investments to improve the guest experience, allow us to generate more revenue and make us a more efficient and profitable business – we expect these investments to yield very attractive returns. We are currently planning new initiatives for the balance of this year and next year that will make us an even stronger, more profitable and more resilient business. We have high confidence in the plans we are executing on today and for the future and in our ability to deliver substantial operational and financial improvements that will lead to meaningful increases in shareholder value," concluded Swanson.
The Company's results of operations for the second quarter and first six months of fiscal 2023 and 2022 continued to be impacted by the global COVID-19 pandemic due in part to a decline in international attendance from historical levels.
Second Quarter 2023 Results
In the second quarter of 2023, the Company hosted approximately 6.1 million guests, generated total revenues of
The decrease in total revenue of
Three Months Ended June 30, | Change | |||||||||||
2023 | 2022 | % | ||||||||||
(In millions, except per share and per capita amounts) | ||||||||||||
Total revenues | $ | 496.0 | $ | 504.8 | (1.7) | % | ||||||
Net income | $ | 87.1 | $ | 116.6 | (25.3) | % | ||||||
Earnings per share, diluted | $ | 1.35 | $ | 1.62 | (16.7) | % | ||||||
Adjusted EBITDA | $ | 224.2 | $ | 234.4 | (4.4) | % | ||||||
Net cash provided by operating activities | $ | 184.6 | $ | 228.8 | (19.3) | % | ||||||
Attendance | 6.1 | 6.3 | (2.0) | % | ||||||||
Total revenue per capita | $ | 80.80 | $ | 80.59 | 0.3 | % | ||||||
Admission per capita | $ | 43.96 | $ | 43.98 | (0.0) | % | ||||||
In-Park per capita spending | $ | 36.84 | $ | 36.61 | 0.6 | % |
First Six Months 2023 Results
In the first six months of 2023, the Company hosted approximately 9.5 million guests, generated total revenues of
The increase in total revenue of
Six Months Ended June 30, | Change | |||||||||||
2023 | 2022 | % | ||||||||||
(In millions, except per share and per capita amounts) | ||||||||||||
Total revenues | $ | 789.4 | $ | 775.5 | 1.8 | % | ||||||
Net income | $ | 70.6 | $ | 107.6 | (34.4) | % | ||||||
Earnings per share, diluted | $ | 1.09 | $ | 1.45 | (24.8) | % | ||||||
Adjusted EBITDA | $ | 296.7 | $ | 300.4 | (1.2) | % | ||||||
Net cash provided by operating activities | $ | 234.9 | $ | 299.6 | (21.6) | % | ||||||
Attendance | 9.5 | 9.7 | (1.5) | % | ||||||||
Total revenue per capita | $ | 82.94 | $ | 80.23 | 3.4 | % | ||||||
Admission per capita | $ | 45.57 | $ | 44.11 | 3.3 | % | ||||||
In-Park per capita spending | $ | 37.37 | $ | 36.12 | 3.5 | % |
Share Repurchases
During the second quarter, the Company repurchased 235,000 shares for an aggregate total of approximately
Other
As of June 30, 2023, the Company's current deferred revenue balance was
Rescue Efforts
In the second quarter of 2023, the Company came to the aid of 96 animals in need in the wild. The total number of animals the Company has helped over its history is more than 40,000.
The Company is one of the largest marine animal rescue organizations in the world. Working in partnership with state, local and federal agencies, the Company's rescue teams are on call 24 hours a day, seven days a week, 365 days a year. Consistent with its mission to protect animals and their ecosystems, rescue teams mobilize and often travel hundreds of miles to help ill, injured, orphaned or abandoned wild animals in need of the Company's expert care, with the goal of returning them to their natural habitat.
Conference Call
The Company will hold a conference call today, Tuesday, August 8, 2023, at 9 a.m. Eastern Time to discuss its second quarter and first six months of fiscal 2023 financial results. The conference call will be broadcast live on the Internet and the release and conference call can be accessed via the Company's website at www.SeaWorldInvestors.com. For those unable to participate in the live webcast, a replay will be available beginning at approximately 12 p.m. Eastern Time on August 8, 2023, under the "Events & Presentations" tab of www.SeaWorldInvestors.com. A replay of the call can also be accessed telephonically from 12 p.m. Eastern Time on August 8, 2023, through 11:59 p.m. Eastern Time on August 15, 2023, by dialing (877) 344-7529 from anywhere in the
Statement Regarding Non-GAAP Financial Measures
This earnings release and accompanying financial statement tables include several non-GAAP financial measures, including Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow. Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow are not recognized terms under GAAP, should not be considered in isolation or as a substitute for a measure of financial performance or liquidity prepared in accordance with GAAP and are not indicative of net income or loss or net cash provided by operating activities as determined under GAAP.
Adjusted EBITDA, Covenant Adjusted EBITDA, Free Cash Flow and other non-GAAP financial measures have limitations that should be considered before using these measures to evaluate a company's financial performance or liquidity. Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow as presented, may not be comparable to similarly titled measures of other companies due to varying methods of calculation.
Management believes the presentation of Adjusted EBITDA is appropriate as it eliminates the effect of certain non-cash and other items not necessarily indicative of the Company's underlying operating performance. Management uses Adjusted EBITDA in connection with certain components of its executive compensation program. In addition, investors, lenders, financial analysts and rating agencies have historically used EBITDA-related measures in the Company's industry, along with other measures, to estimate the value of a company, to make informed investment decisions and to evaluate companies in the industry.
Management believes the presentation of Covenant Adjusted EBITDA for the last twelve months is appropriate as it provides additional information to investors about the calculation of, and compliance with, certain financial covenants in the Company's credit agreement governing its Senior Secured Credit Facilities and the indentures governing its Senior Notes and First-Priority Senior Secured Notes (collectively, the "Debt Agreements"). Covenant Adjusted EBITDA is a material component of these covenants.
Management believes that Free Cash Flow is useful to investors, equity analysts and rating agencies as a liquidity measure. The Company uses Free Cash Flow to evaluate its ability to generate cash flow from business operations. Free Cash Flow does not represent the residual cash flow available for discretionary expenditures, as it excludes certain expenditures such as mandatory debt service requirements, which are significant. Free Cash Flow is not defined by GAAP and should not be considered in isolation or as an alternative to net cash provided by (used in) operating, investing and financing activities or other financial data prepared in accordance with GAAP. Free Cash Flow as defined above may differ from similarly titled measures presented by other companies.
This earnings release includes several key performance metrics including total revenue per capita (defined as total revenue divided by attendance), admission per capita (defined as admissions revenue divided by attendance) and in-park per capita spending (defined as food, merchandise and other revenue divided by attendance). These performance metrics are used by management to assess the operating performance of its parks on a per attendee basis and to make strategic operating decisions. Management believes the presentation of these performance metrics is useful and relevant for investors as it provides investors the ability to review financial performance in the same manner as management and provides investors with a consistent methodology to analyze revenue between periods on a per attendee basis. In addition, investors, lenders, financial analysts and rating agencies have historically used similar per-capita related performance metrics to evaluate companies in the industry.
About SeaWorld Entertainment, Inc.
SeaWorld Entertainment, Inc. (NYSE: SEAS) is a leading theme park and entertainment company providing experiences that matter, and inspiring guests to protect animals and the wild wonders of our world. The Company is one of the world's foremost zoological organizations and a global leader in animal welfare, training, husbandry and veterinary care. The Company collectively cares for what it believes is one of the largest zoological collections in the world and has helped lead advances in the care of animals. The Company also rescues and rehabilitates marine and terrestrial animals that are ill, injured, orphaned or abandoned, with the goal of returning them to the wild. The SeaWorld® rescue team has helped over 40,000 animals in need over the Company's history. SeaWorld Entertainment, Inc. owns or licenses a portfolio of recognized brands including SeaWorld®, Busch Gardens®, Aquatica®, Sesame Place® and Sea Rescue®. Over its more than 60-year history, the Company has built a diversified portfolio of 12 destination and regional theme parks that are grouped in key markets across
Copies of this and other news releases as well as additional information about SeaWorld Entertainment, Inc. can be obtained online at www.seaworldentertainment.com. Shareholders and prospective investors can also register to automatically receive the Company's press releases, SEC filings and other notices by e-mail by registering at that website.
Forward-Looking Statements
In addition to historical information, this press release contains statements relating to future results (including certain projections and business trends) that are "forward-looking statements" within the meaning of the federal securities laws. The Company generally uses the words such as "might," "will," "may," "should," "estimates," "expects," "continues," "contemplates," "anticipates," "projects," "plans," "potential," "predicts," "intends," "believes," "forecasts," "future," "guidance," "targeted," "goal" and variations of such words or similar expressions in this press release and any attachment to identify forward-looking statements. All statements, other than statements of historical facts included in this press release, including statements concerning plans, objectives, goals, expectations, beliefs, business strategies, future events, business conditions, results of operations, financial position, business outlook, earnings guidance, business trends and other information are forward-looking statements. The forward-looking statements are not historical facts, and are based upon current expectations, beliefs, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control. All expectations, beliefs, estimates and projections are expressed in good faith and the Company believes there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, estimates and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond management's control, that could cause actual results to differ materially from the forward-looking statements contained in this press release, including among others: a decline in discretionary consumer spending or consumer confidence, including any unfavorable impacts from Federal Reserve interest rate actions and inflation which may influence discretionary spending, unemployment or the overall economy; various factors beyond the Company's control adversely affecting attendance and guest spending at its theme parks, including, but not limited to, weather, natural disasters, labor shortages, inflationary pressures, supply chain delays or shortages, foreign exchange rates, consumer confidence, the potential spread of travel-related health concerns including pandemics and epidemics, travel related concerns, adverse general economic related factors including increasing interest rates, economic uncertainty, and recent geopolitical events outside of
CONTACT:
Investor Relations:
Matthew Stroud
Investor Relations
855-797-8625
Investors@SeaWorld.com
Media:
Lisa Cradit
SVP – Head of Communications
(646) 245-2476
Lisa.cradit@seaworld.com
Libby Panke
FleishmanHillard
(314) 719-7521
Libby.Panke@fleishman.com
SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
For the Three Months | Change | For the Six Months | Change | |||||||||||||||||||||||||||||
2023 | 2022 | $ | % | 2023 | 2022 | $ | % | |||||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||||||||||
Admissions | $ | 269,894 | $ | 275,505 | $ | (5,611) | (2.0) | % | $ | 433,757 | $ | 426,367 | $ | 7,390 | 1.7 | % | ||||||||||||||||
Food, merchandise and other | 226,135 | 229,312 | (3,177) | (1.4) | % | 355,618 | 349,143 | 6,475 | 1.9 | % | ||||||||||||||||||||||
Total revenues | 496,029 | 504,817 | (8,788) | (1.7) | % | 789,375 | 775,510 | 13,865 | 1.8 | % | ||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||||||||
Cost of food, merchandise and other revenues | 38,210 | 41,518 | (3,308) | (8.0) | % | 61,431 | 64,558 | (3,127) | (4.8) | % | ||||||||||||||||||||||
Operating expenses (exclusive of depreciation and | 195,728 | 190,496 | 5,232 | 2.7 | % | 368,402 | 343,421 | 24,981 | 7.3 | % | ||||||||||||||||||||||
Selling, general and administrative expenses | 68,166 | 56,158 | 12,008 | 21.4 | % | 116,447 | 102,217 | 14,230 | 13.9 | % | ||||||||||||||||||||||
Severance and other separation costs (a) | 656 | 83 | 573 | NM | 660 | 113 | 547 | NM | ||||||||||||||||||||||||
Depreciation and amortization | 37,831 | 38,551 | (720) | (1.9) | % | 75,225 | 77,163 | (1,938) | (2.5) | % | ||||||||||||||||||||||
Total costs and expenses | 340,591 | 326,806 | 13,785 | 4.2 | % | 622,165 | 587,472 | 34,693 | 5.9 | % | ||||||||||||||||||||||
Operating income | 155,438 | 178,011 | (22,573) | (12.7) | % | 167,210 | 188,038 | (20,828) | (11.1) | % | ||||||||||||||||||||||
Other (income) expense, net | (5) | (32) | 27 | 84.4 | % | 41 | (44) | 85 | NM | |||||||||||||||||||||||
Interest expense | 36,954 | 26,810 | 10,144 | 37.8 | % | 73,355 | 52,180 | 21,175 | 40.6 | % | ||||||||||||||||||||||
Income before income taxes | 118,489 | 151,233 | (32,744) | (21.7) | % | 93,814 | 135,902 | (42,088) | (31.0) | % | ||||||||||||||||||||||
Provision for income taxes | 31,434 | 34,623 | (3,189) | (9.2) | % | 23,226 | 28,279 | (5,053) | (17.9) | % | ||||||||||||||||||||||
Net income | $ | 87,055 | $ | 116,610 | $ | (29,555) | (25.3) | % | $ | 70,588 | $ | 107,623 | $ | (37,035) | (34.4) | % | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Earnings per share, basic | $ | 1.36 | $ | 1.63 | $ | 1.10 | $ | 1.46 | ||||||||||||||||||||||||
Earnings per share, diluted | $ | 1.35 | $ | 1.62 | $ | 1.09 | $ | 1.45 | ||||||||||||||||||||||||
Weighted average common shares | ||||||||||||||||||||||||||||||||
Basic | 63,932 | 71,686 | 63,955 | 73,623 | ||||||||||||||||||||||||||||
Diluted (b) | 64,352 | 72,168 | 64,479 | 74,449 |
SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
For the Three Months | Change | For the Six Months | Change | Last | |||||||||||||||||||||||||
2023 | 2022 | # | 2023 | 2022 | # | 2023 | |||||||||||||||||||||||
Net income | $ | 87,055 | $ | 116,610 | $ | (29,555) | $ | 70,588 | $ | 107,623 | $ | (37,035) | $ | 254,155 | |||||||||||||||
Provision for income taxes | 31,434 | 34,623 | (3,189) | 23,226 | 28,279 | (5,053) | 93,830 | ||||||||||||||||||||||
Interest expense | 36,954 | 26,810 | 10,144 | 73,355 | 52,180 | 21,175 | 138,676 | ||||||||||||||||||||||
Depreciation and amortization | 37,831 | 38,551 | (720) | 75,225 | 77,163 | (1,938) | 150,682 | ||||||||||||||||||||||
Equity-based compensation expense (c) | 3,866 | 3,205 | 661 | 9,071 | 11,082 | (2,011) | 17,746 | ||||||||||||||||||||||
Loss on impairment or disposal of assets and certain non- | 10,595 | 4,411 | 6,184 | 14,262 | 9,015 | 5,247 | 19,465 | ||||||||||||||||||||||
Business optimization, development and strategic | 12,104 | 5,790 | 6,314 | 21,529 | 9,394 | 12,135 | 31,981 | ||||||||||||||||||||||
Certain investment costs and other taxes | 114 | 599 | (485) | 162 | 1,000 | (838) | 290 | ||||||||||||||||||||||
COVID-19 related incremental costs (f) | 4,085 | 623 | 3,462 | 7,668 | 973 | 6,695 | 13,384 | ||||||||||||||||||||||
Other adjusting items (g) | 209 | 3,224 | (3,015) | 1,573 | 3,677 | (2,104) | 4,309 | ||||||||||||||||||||||
Adjusted EBITDA (h) | $ | 224,247 | $ | 234,446 | $ | (10,199) | $ | 296,659 | $ | 300,386 | $ | (3,727) | $ | 724,518 | |||||||||||||||
Items added back to Covenant Adjusted EBITDA as | |||||||||||||||||||||||||||||
Estimated cost savings (i) | 27,800 | ||||||||||||||||||||||||||||
Other adjustments as defined in the Debt Agreements (j) | 7,799 | ||||||||||||||||||||||||||||
Covenant Adjusted EBITDA (k) | $ | 760,117 | |||||||||||||||||||||||||||
For the Three Months | Change | For the Six Months | Change | ||||||||||||||||||||||||||
2023 | 2022 | # | 2023 | 2022 | # | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | 184,605 | $ | 228,840 | $ | (44,235) | $ | 234,901 | $ | 299,634 | $ | (64,733) | |||||||||||||||||
Capital expenditures | 75,829 | 65,938 | 9,891 | 145,587 | 101,048 | 44,539 | |||||||||||||||||||||||
Free Cash Flow (l) | $ | 108,776 | $ | 162,902 | $ | (54,126) | $ | 89,314 | $ | 198,586 | $ | (109,272) |
SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES | ||||||||
UNAUDITED BALANCE SHEET DATA | ||||||||
(In thousands) | ||||||||
As of June 30, 2023 | As of December 31, | |||||||
Cash and cash equivalents | $ | 146,746 | $ | 79,196 | ||||
Total assets | $ | 2,505,229 | $ | 2,325,787 | ||||
Deferred revenue | $ | 222,654 | $ | 169,535 | ||||
Long-term debt, including current maturities: | ||||||||
Term B Loans | 1,179,000 | 1,185,000 | ||||||
Senior Notes | 725,000 | 725,000 | ||||||
First-Priority Senior Secured Notes | 227,500 | 227,500 | ||||||
Total long-term debt, including current maturities | $ | 2,131,500 | $ | 2,137,500 | ||||
Total stockholders' deficit | $ | (377,512) | $ | (437,664) |
SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES | |||||||||||||||||
UNAUDITED CAPITAL EXPENDITURES DATA | |||||||||||||||||
(In thousands) | |||||||||||||||||
For the Six Months Ended June 30, | Change | ||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||
Capital Expenditures: | |||||||||||||||||
Core (m) | $ | 105,479 | $ | 67,606 | $ | 37,873 | 56.0 | % | |||||||||
Expansion/ROI projects (n) | 40,108 | 33,442 | 6,666 | 19.9 | % | ||||||||||||
Capital expenditures, total | $ | 145,587 | $ | 101,048 | $ | 44,539 | 44.1 | % |
SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
UNAUDITED OTHER DATA | ||||||||||||||||||||||||||||||||
(In thousands, except per capita amounts) | ||||||||||||||||||||||||||||||||
For the Three | Change | For the Six Months | Change | |||||||||||||||||||||||||||||
2023 | 2022 | # | % | 2023 | 2022 | # | % | |||||||||||||||||||||||||
Attendance | 6,139 | 6,264 | (125) | (2.0) | % | 9,517 | 9,666 | (149) | (1.5) | % | ||||||||||||||||||||||
Total revenue per capita (o) | $ | 80.80 | $ | 80.59 | $ | 0.21 | 0.3 | % | $ | 82.94 | $ | 80.23 | $ | 2.71 | 3.4 | % | ||||||||||||||||
Admission per capita (p) | $ | 43.96 | $ | 43.98 | $ | (0.02) | (0.0) | % | $ | 45.57 | $ | 44.11 | $ | 1.46 | 3.3 | % | ||||||||||||||||
In-Park per capita spending (q) | $ | 36.84 | $ | 36.61 | $ | 0.23 | 0.6 | % | $ | 37.37 | $ | 36.12 | $ | 1.25 | 3.5 | % |
NM-Not meaningful. |
(a) Reflects restructuring and other separation costs and/or adjustments. |
(b) During the three and six months ended June 30, 2023, there were approximately 452,000 and 390,000 anti-dilutive shares excluded from the computation of diluted earnings per share, respectively. During the three and six months ended June 30, 2022, there were approximately 269,000 and 204,000 anti-dilutive shares excluded from the computation of diluted earnings per share, respectively. |
(c) Reflects non-cash equity compensation expenses and related payroll taxes associated with the grants of equity-based compensation. |
(d) Reflects primarily non-cash expenses related to miscellaneous fixed asset disposals including asset write-offs and costs related to certain rides and equipment which were removed from service. Includes non-cash self-insurance reserve adjustments of approximately |
(e) Reflects business optimization, development and other strategic initiative costs primarily related to: (i) |
(f) For the three, six, and twelve months ended June 30, 2023, primarily reflects costs associated with certain legal matters and non-recurring contractual liabilities related to the previously disclosed temporary COVID-19 park closures. For the three and six months ended June 30, 2022, primarily relates to incremental non-recurring costs associated with the COVID-19 pandemic, primarily associated with incremental labor-related costs to prepare, staff, and operate the parks with enhanced safety measures and costs associated with COVID-19 related legal matters. |
(g) Reflects the impact of expenses, net of insurance recoveries and adjustments, incurred primarily related to certain matters, which we are permitted to exclude under the credit agreement governing our Senior Secured Credit Facilities due to the unusual nature of the items. For the three and six months ended June 30, 2022, includes |
(h)Adjusted EBITDA is defined as net income (loss) before income tax expense, interest expense, depreciation and amortization, as further adjusted to exclude certain non-cash, and other items as described above. |
(i) The Company's Debt Agreements permit the calculation of certain covenants to be based on Covenant Adjusted EBITDA, as defined above, for the last twelve month period further adjusted for net annualized estimated savings the Company expects to realize over the following 24 month period related to certain specified actions, including restructurings and cost savings initiatives. These estimated savings are calculated net of the amount of actual benefits realized during such period. These estimated savings are a non-GAAP Adjusted EBITDA add-back item only as defined in the Debt Agreements and does not impact the Company's reported GAAP net income (loss). |
(j) The Debt Agreements permit the Company's calculation of certain covenants to be based on Covenant Adjusted EBITDA as defined above, for the last twelve-month period further adjusted for certain costs as permitted by the Debt Agreements including recruiting and retention expenses, public company compliance costs and litigation and arbitration costs, if any. |
(k) Covenant Adjusted EBITDA is defined in the Debt Agreements as Adjusted EBITDA for the last twelve-month period further adjusted for net annualized estimated savings among other adjustments as described in footnote (i) and (j) above. |
(l) Free Cash Flow is defined as net cash provided by operating activities less capital expenditures. |
(m) Reflects capital expenditures during the respective period for park rides, attractions and maintenance activities. |
(n) Reflects capital expenditures during the respective period for park expansion, new properties, revenue and/or expense return on investment ("ROI") projects. |
(o) Calculated as total revenues divided by attendance. |
(p) Calculated as admissions revenue divided by attendance. |
(q) Calculated as food, merchandise and other revenue divided by attendance.
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[1] This earnings release includes Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow which are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the
[2] This earnings release includes key performance metrics such as total revenue per capita, admissions per capita and in-park per capita spending. See "Statement Regarding Non-GAAP Financial Measures and Key Performance Metrics" section for definitions and further details.
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SOURCE SeaWorld Entertainment, Inc.
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