News Quarterly Financial Results

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Feb 3, 2019
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  • Attendance decreased by 1.0 million guests, to 2.3 million guests from the first quarter of 2019.
  • Total revenue decreased by $67.0 million, to $153.6 million from the first quarter of 2019.
  • Net loss increased by $19.5 million, to $56.5 million from the first quarter of 2019.
  • Adjusted EBITDA[[1]] decreased by $47.3 million, to a loss of $30.9 million from the first quarter of 2019.
First Two Months of 2020 Overview

  • Attendance increased by 0.2 million guests, or 9%, to a record 1.9 million guests from the first two months of 2019.
  • Total revenue increased by $13.0 million, or 12%, to a record $120.6 million from the first two months of 2019.
Other

  • On March 10, 2020, the Company amended its credit agreement to increase its revolving credit commitments from $210.0 million to $332.5 million.
  • On March 16, 2020, the Company suspended operations at all of its parks as a result of the COVID-19 pandemic ("COVID-19").
  • On April 19, 2020, the Company amended its credit agreement to, among other things, revise its financial maintenance covenant to suspend testing of the covenant for the remainder of 2020 and modify the testing of the covenant in 2021.
  • On April 30, 2020, the Company closed on a $227.5 million private offering of 8.75% first-priority senior secured notes.
  • As of April 30, 2020, the Company has just over $400 million of cash and cash equivalents on its balance sheet and estimates its average monthly net cash outflows will be between $20 million and $25 million per month while its parks remain closed. Based on this, the Company believes it can sustain its current level of monthly cash outflows into the fourth quarter of 2021.
  • The Company's rescue teams continue to operate while the parks are closed. In the first quarter of 2020, the Company helped rescue over 350 animals and is approaching 37,000 total rescues over its history.
"While the world is experiencing an unprecedented global health crisis that has impacted nearly everyone on the planet, we are confident in the resiliency of our business, our ability to weather this crisis and that we will emerge an even stronger company," said Marc Swanson, Interim Chief Executive Officer of SeaWorld Entertainment, Inc.

"In response to COVID-19 we took the extraordinary step to close all of our parks on March 16, 2020. Prior to the closure of our parks, we had a strong start to 2020, with record-setting results through February. This performance was a continuation of the strong financial results we have delivered over the last two years, which we believe demonstrates the successful execution of our strategic initiatives related to marketing and communications, pricing, cost and capital efficiencies and new rides, attractions and events.

Although we are currently closed, our animal care professionals along with other essential employees continue to provide comprehensively for the welfare of our animals and maintain our parks. We have a dedicated team focused on finalizing plans to re-open our parks, including enhanced health and safety protocols that will meet and / or exceed government guidelines and provide the safe and clean environment our guests and ambassadors expect. While we don't have any park opening dates to announce today, we are in regular contact with local, state and federal authorities and we look forward to opening our parks and welcoming back our guests as soon as it's safe and permitted to do so."

The Company has taken a number of proactive measures to strengthen its financial position and enhance its liquidity and flexibility while its parks remain closed. The Company significantly reduced its monthly cash expenditures including labor, operating expenses and capital spending; significantly increased its liquidity by upsizing its revolving credit commitments and issuing new senior secured notes; and significantly enhanced its financial flexibility by amending its credit agreement to, among other things, revise its financial maintenance covenant so that the covenant will not apply for the remainder of 2020 and will be modified in 2021. For pass members and other ticket holders the Company has extended expiration dates, provided upgrades and/or added additional benefits.

"I am thankful for our team's extraordinary efforts and unrelenting passion during these uncertain times. I am inspired daily by the collaborative teamwork and dedication to our mission, displayed across the entire organization – including our Ambassadors, the management team and our board. Together, we are committed to successfully navigating through this current environment, reopening our parks and welcoming back our guests as soon as safely possible. We are confident in our business and strategy and sincerely look forward to coming out of this crisis and continuing to drive improved operating and financial results and long-term value for all stakeholders," concluded Swanson.

First Quarter 2020 Results

In the first quarter of 2020, the Company hosted approximately 2.3 million guests, generated total revenues of $153.6 million, a net loss of $56.5 million and an Adjusted EBITDA loss of $30.9 million. Prior to the COVID-19 park closures, the Company had a strong start to 2020 with record-setting attendance and revenue through the first two months of the year. Year to date attendance for the first two months of 2020 was a record 1.9 million guests, an increase of 0.2 million guests, or 9% when compared to the first two months of 2019. Total revenue for the first two months of 2020 was a record of approximately $120.6 million, an increase of $13.0 million, or 12% when compared to the first two months of 2019.

Total attendance for the quarter decreased by 1.0 million, or 30.6%, when compared to the prior year quarter. The decrease was a result of a decline in attendance due to the temporary park closures resulting from the global COVID-19 pandemic, which closed all of the Company's parks beginning on March 16, 2020. The timing of the park closures fell during historically high volume spring break weeks for most of its parks, which adversely impacted the visitation mix for the quarter. Prior to the park closures due to COVID-19, the Company believes the attendance increase through the first two months of the year resulted from increased demand due to a combination of factors including improved marketing and communication initiatives, new pricing strategies, and the positive reception of its new rides and compelling attractions and events.

Total revenue for the quarter decreased by $67.0 million, or 30.4%, when compared to the prior year quarter. Total revenue for the quarter was negatively impacted by the decrease in attendance and by lower in-park per capita spending (defined as food, merchandise and other revenue divided by total attendance) partially offset by improved admission per capita (defined as admissions revenue divided by total attendance). Excluding the impact of other revenue related to certain international agreements which the Company previously announced were terminated in early 2019, in-park per capita spending improved by 0.9%. The increase in admissions per capita was primarily a result of pricing strategies partially offset by the visitation mix when compared to the prior year period. The visitation mix was impacted by the COVID-19 park closures, which occurred during key spring break weeks for most of the Company's parks. Adjusted EBITDA was negatively impacted by the decrease in total revenue resulting from park closures, partially offset by a decrease in expenses. The decrease in expenses results from a reduction in direct labor, other operating costs and marketing and media costs due to the park closures and the continued impact of cost savings initiatives.

For the Three Months Ended March 31,Change
20202019%
(Unaudited, in millions, except per share and per capita amounts)
Total revenues$153.6$220.6(30.4)%
Net loss$(56.5)$(37.0)(52.7)%
Net loss per share, diluted$(0.72)$(0.44)(63.6)%
Adjusted EBITDA$(30.9)$16.4NM
Net cash (used in) provided by operating activities$(40.8)$37.7NM
Attendance2.323.34(30.6)%
Total revenue per capita$66.25$66.040.3%
Admission per capita$39.05$38.601.2%
In-Park per capita spending$27.20$27.44(0.9)%


Debt and Liquidity

As previously announced, on March 10, 2020, the Company entered into an amendment (the "Amendment No. 10") to its senior secured credit facilities, dated as of December 1, 2009, as amended, supplemented, modified or restated from time to time, (the "Credit Agreement"). Pursuant to Amendment No. 10, the Company increased its revolving credit commitments available under the Credit Agreement from $210.0 million to an aggregate of $332.5 million.

On April 19, 2020, the Company entered into another amendment to its Credit Agreement to amend certain provisions therein (the "Amendment No. 11"). Pursuant to the Amendment No. 11, among other terms, the Company will be exempt from complying with its financial maintenance covenant for each of the second, third and fourth quarters of 2020, after which the Company will be required to comply with such covenants starting at the first quarter of 2021. For purposes of calculating compliance with such covenant beginning with the first quarter of 2021, to the extent trailing Adjusted EBITDA for the second, third or fourth quarters of 2020 would have otherwise been included in the calculation of such covenant, in lieu of using actual Adjusted EBITDA for such periods, Adjusted EBITDA for such applicable periods will be deemed to be actual Adjusted EBITDA for the corresponding quarter of 2019. In addition, the Company will be required to comply with a quarterly minimum liquidity test (defined as unrestricted cash and cash equivalents and available commitments under the Company's revolving credit facility) of not less than $75.0 million until the earlier of September 30, 2021 or the date on which the Company elects to use actual Adjusted EBITDA for purposes of calculating its financial maintenance covenant. The Company will also be restricted from paying any certain dividends or making other restricted payments through the third quarter of 2021 unless certain conditions are met.

Separately, on April 21, 2020, the Company announced a private offering of $227.5 million in aggregate principal amount of 8.75% first-priority senior secured notes due 2025 which closed on April 30, 2020.

As of April 30, 2020, the Company has just over $400 million of cash and cash equivalents on its balance sheet and estimates its average monthly net cash outflows will be between $20 million and $25 million per month while its parks remain closed. Based on this, the Company believes it can sustain its current level of monthly cash outflows into the fourth quarter of 2021.

As of March 31, 2020, the Company's total net leverage ratio[2] as calculated under the Senior Secured Credit Facilities was 3.89 to 1.00.

Conference Call

The Company will hold a conference call today, Friday, May 8, 2020 at 9 a.m. Eastern Time to discuss its first quarter 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.seaworldentertainment.com by clicking on the "Investor Relations" link located on the upper right corner of that page. For those unable to participate in the live webcast, a replay will be available beginning at 12 p.m. Eastern Time on May 8, 2020 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 May 8, 2020 through 11:59 p.m. Eastern Time on May 14, 2020 by dialing (877) 344-7529 from anywhere in the U.S., (855) 669-9658 from anywhere in Canada, or (412) 317-0088 from international locations and entering the conference code 10143367.
 
Nov 30, 2018
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It's good SEAS solidified their cash position, though those rates are in junk bond territory. That would seem to problematic for future short and medium term capital projects, unless they really feel they can grow revenue and take on more pricey debt once the parks reopen.
 
Feb 3, 2019
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Notes from today's conference call:

For parks that have been open for at least 30 days, average attendance is up 15%. The company views this as gaining confidence from the public that the parks can be attended safely..

They will continue to explore different event concepts and are adding additional days to existing events.

2021 bookings for discovery cove are up 176% showing that people are willing to rebook with them rather than cancel and take their money elsewhere.

Wcusa and aquatica will not open in 2021 due to them already having limited seasons and basically being past peak season by the time they could open.

They are hoping to do modified Halloween/Christmas events at all parks.

They have adjusted their credit facilities that they could potentially buy a competitor park who goes out of business.

They are burning through 20-25m a month in losses.

2020 rides were 87% complete and the coat to finish them is estimated to be $15 million.

Seas still needs to spend $40-50 m in cash to cover outstanding receipts for work done/preplanned
 

Jonesta6

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Feb 14, 2019
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How are they in any shape to buy out another park when the rest of the news indicates they're currently in rough shape with their existing parks?
 
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Feb 3, 2019
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How are they in any shape to buy out another park when the rest of the news indicates they're currently in rough shape with their existing parks?
They have 400 million in cash and access to an additional 500 million at will.

And they've amended their credit agreements so they can survive as long as they keep $75m cash on hand.
 
Nov 30, 2018
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How are they in any shape to buy out another park when the rest of the news indicates they're currently in rough shape with their existing parks?
They probably have some kind of LBO financing in place if the right opportunity comes along. In theory industry consolidation in places could allow for higher prices and profitability in places.

It seems like the bigger chains all opened up enough credit to buy up distressed assets if/when they become available.
 
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Alf33

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Conference call date announced for 4th quarter and full year 2020 results.
 

Alf33

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Here is what they have at the beginning of their filing with the SEC.

Fourth Quarter 2020 Highlights

Attendance was 2.2 million guests, a decline of 2.5 million guests from the fourth quarter of 2019.

Total revenue was $154.1 million, a decline of $143.9 million from the fourth quarter of 2019.

Net loss was $45.5 million, a decline of $21.4 million from the fourth quarter of 2019.

Adjusted EBITDA[1] was $22.7 million, a decline of $61.2 million from the fourth quarter of 2019.

Admission per capita increased 9.4% to $41.44 while in-park per capita spending increased 9.5% to $27.96.

Fiscal 2020 Highlights

Attendance was 6.4 million guests, a decline of 16.3 million guests from fiscal 2019.

Total revenue was $431.8 million, a decline of $966.5 million from fiscal 2019.

Net loss was $312.3 million, a decline of $401.8 million from fiscal 2019.

Adjusted EBITDA was a loss of $73.2 million, a decline of $530.1 million from fiscal 2019.

Admission per capita increased 12.9% to $40.07 while in-park per capita spending increased 5.2% to $27.68.

Other Highlights

As of December 31, 2020, the Company had approximately $434 million of cash and cash equivalents on its balance sheet and approximately $311 million available on its revolving credit facility resulting in total liquidity of approximately $745 million.

The Company estimates that the average monthly Adjusted Net Cash Burn[1] during the quarter ended December 31, 2020, was approximately $1 million per month, which excludes certain payments to vendors due in and deferred from previous quarters. The Company estimates that the average monthly Net Cash Burn[1] during the quarter ended December 31, 2020 was approximately $18 million per month when including these deferred payments.

As of December 31, 2020, seven of the Company’s 12 parks were open (compared to eight parks in the prior year period) and operating with capacity limitations, modified/limited operations, reduced hours of operation and / or limited operating days. The Company’s SeaWorld San Diego park was forced to close on December 7, 2020 when the State of California imposed restrictions on operations causing the park to shut down during the peak holiday season. This park reopened on a limited basis following state guidelines for reopening zoos on February 6, 2021.

Currently, the Company has eight parks open including SeaWorld Orlando, Aquatica Orlando, Discovery Cove, Busch Gardens Tampa Bay, SeaWorld San Antonio, SeaWorld San Diego, Busch Gardens Williamsburg and Sesame Place. The Company is planning to have all 12 of its parks open, with the addition of Adventure Island, Aquatica San Antonio, Water Country USA and Aquatica San Diego, for their full 2021 operating seasons - subject to local, state and federal guidelines related to COVID-19.

In the fourth quarter of 2020, the Company helped rescue over 470 animals bringing total rescues over its history to more than 38,000.


“Our fourth quarter results demonstrated continued operational improvement and financial stability as we continue to navigate through these extraordinary times,” said Marc Swanson, Interim Chief Executive Officer of SeaWorld Entertainment, Inc. “Guests showed a continuing desire and interest to visit our parks, especially during our Halloween and Christmas events. We are pleased we generated positive Adjusted EBITDA in the quarter and our net cash flows approached breakeven, excluding deferred vendor payments reflecting our continued focus on expense and cash management and improving attendance and operating trends. I am pleased with our strong total revenue per capita performance during the quarter, despite COVID-19 operational impacts and a higher mix of season pass guests when compared to the prior year. Our pricing and product strategies are working, and our guests are spending when they visit our parks. As we enter 2021, we are pleased that guests are returning, including for our popular food and music festivals. As with all our recent events, we have redesigned our food and music festivals with enhanced health and safety protocols for our ambassadors, guests and animals. We have also implemented new operating calendars across several of our parks in 2021 based on learnings over the past 12 months. In particular, for the first time in over a decade we are operating year round at our SeaWorld park in Texas, and for the first time ever we have begun year-round operations at our Busch Gardens park in Virginia and at our Sesame Place park in Pennsylvania. These parks are now open primarily on weekends and holidays during the winter season, in advance of their traditional operating seasons. We now have year-round operations at eight of our 12 parks. Only our water parks in California (Aquatica California), Texas (Aquatica Texas), Tampa (Adventure Island) and Virginia (Water Country USA), are not open year round.”


“Our fourth quarter and fiscal 2020 results clearly demonstrate our Company’s agility, creativity and determination to operate in one of the most challenging environments we have ever encountered,” continued Swanson. “While the COVID-19 pandemic severely impacted our operations with park closures in the spring followed by restricted openings including capacity limitations, our ambassadors worked collaboratively to find ways to operate within the health and safety guidelines established by federal, state and local governments. I am grateful for their commitment, teamwork and passion as they took care of our guests, our animals and each other throughout this period. In addition, I am pleased that we were able to operate our parks more efficiently than ever before due to our relentless focus on expense management and culture of operational efficiency.”


“We look forward to the time when our parks can return to a more normalized operating environment. We believe there are significant additional opportunities to further improve and enhance our execution and drive meaningful growth in revenue and Adjusted EBITDA when our parks are no longer restricted by capacity limitations, and event restrictions. We have identified meaningful additional cost savings opportunities that we believe will lead to strong margin improvement in the coming years. We are excited about the future and the opportunity to deliver significant operational and financial improvement that we expect will lead to meaningful increases in shareholder value once we have returned to a normalized operating environment. As I have said before – and I feel even stronger about it today – we feel very well positioned with the right assets, team, balance sheet and liquidity to navigate through this environment and emerge an even stronger and more profitable enterprise,” concluded Swanson.
 

Alf33

Life is short, so eat dessert first.
Jun 8, 2013
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Well Wall Street liked the financial report as the stock is (while writing this) is currently up a little over $5 a share to $46.62 which is almost to it's all time high which only just happened a few days ago. Up until a couple of days ago it had never been over $40.00!

Edit: The stock closed today at $46.03. It's market cap is 3.24B. Back when they were in trouble their cap was only $1.4B and I think went as low as $1.2B.
 
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Sep 24, 2018
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What a great day to hop back in. I've been sick the past week and haven't done anything beyond watching movies, but this is great news.

SEAS really has been doing good lately and while there are definitely issues, I think it's hard to argue that they've worked and gotten themselves rather quickly into a financial position to withstand this year. I don't this is unfeasible to think that a few years ago, we most likely see to the SEAS close for good if this had happened then.
 
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Feb 3, 2019
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@BGWnut for me the best news to come out of today's presentation is the following breakdown of their realized $100 mm cost savings:

Screenshot_20210225-182522~2.png

If they were planning on adjusting the recurring capex commitment of $150 mm annually; I would definitely think they would have used this breakout to show it and make their cost savings even more impressive.

So my takeaway is we're still on for $150 mm in new attractions per year.
 
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Nov 30, 2018
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Fortune favors the bold and SEAS is definitely being aggressive in this tough time. I feel like they've been betting the farm in their moves, but they may very well come out far ahead, while seeing some competitors go down either partially or completely.
 
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