SeaWorld Park & Entertainment IPO
- Thread starter pandorazboxx
- Start date
It would be one of the most ludicrously ran businesses, that would do everything completely insane but still be a success.
The Busch name is recognizable to a lot of people because of Anheuser Busch. That's probably the reason why they stuck with the Busch Entertainment name for so long instead of changing it over to the instantly recognizable Sea World brand.
If the chain decided to expand on the Worlds of Discovery brand, it could definitely market. Still not as recognizable as some brands out there (Six Flags/Disney), but there are theme park brands that aren't as recognizable to begin with (Herschend/Cedar Fair).
I don't love or hate the current Entertainment branding. It suits the direction the chain is trying to go into and it uses the recognizable Sea World brand. If anything, the name seems a tad generic, which isn't a bad thing. It could be better though.
If the chain decided to expand on the Worlds of Discovery brand, it could definitely market. Still not as recognizable as some brands out there (Six Flags/Disney), but there are theme park brands that aren't as recognizable to begin with (Herschend/Cedar Fair).
I don't love or hate the current Entertainment branding. It suits the direction the chain is trying to go into and it uses the recognizable Sea World brand. If anything, the name seems a tad generic, which isn't a bad thing. It could be better though.
netdvn said:
And you would be exactly correct. As WDW continues to stagnate SWF has risen very high. Once their expansion is done it WILL be a staple for OTown tourists. Some cannot get into the atmosphere at Uni and instantly head to SWF. Even the ones that are UNI fans have no qualms with Disney visits and certainly not SWF visits.
SeaWorld IPO
Here is the IPO filing - lengthy, but an interesting read, I think. http://www.sec.gov/Archives/edgar/data/1564902/000119312512515221/d448022ds1.htm
Note that there is no mention of any sort of resorts/hotels strategy, although they do trumpet the fact that all their parks are located in clusters near each other to allow for efficiencies and shared marketing costs/strategies. Also, it looks like the SeaWorld parks will suck up most of the capex money in 2014/2015 for the 50th Anniversary.
Excerpt from the Business section of the filing:
Our Strategies
We plan to grow our business by increasing our existing theme park revenues through strategies designed to drive higher attendance and increase in-park per capita spending, as well as by creating new sources of revenue through expansion of our theme parks, new theme park development and extending our brands into new media, entertainment and consumer products. We believe that our strategies complement each other as they lead to increased brand strength and awareness and drive revenue growth and profitability. Our strategies include the following components:
Ÿ Continue to Create Memorable Experiences for Our Guests. Our mission is to use the power of educational entertainment to continue to inspire our guests to celebrate, connect with and care for the natural world we share. We provide our guests with innovative and immersive theme park experiences, such as our 3-D, 360-degree TurtleTrek attraction at SeaWorld Orlando, which opened in 2012. We also offer guests exciting rides, animal encounters and beautifully-themed entertainment that are difficult to replicate, such as in-water experiences opened in 2011 with beluga whales at SeaWorld Orlando and our Cheetah Hunt ride, which is a launch coaster that runs alongside a cheetah habitat at Busch Gardens Tampa. As a result of these distinctive offerings, our guest surveys routinely report very high “Overall Satisfaction” scores, with 97% of recent respondents in 2012 ranking their experience good or excellent. Going forward, we will continue to develop high-quality experiences for our guests, focused on integrating our impressive animal collection with uniquely themed settings and products that our guests will remember long after they leave our theme parks.
Ÿ Drive Increased Attendance to Our Theme Parks. We plan to drive increased attendance to our theme parks by continually introducing new attractions, differentiated experiences and enhanced service offerings. Because of the historic correlation between capital investment and increased attendance, we plan to add to our award-winning portfolio of assets and spend capital in support of marketable events, such as SeaWorld’s 50th Anniversary Celebration. We also plan to increase awareness of our theme parks and brands through effective media and marketing campaigns, including the targeted use of online and social media platforms. For example, since their introduction in 2006, our YouTube channels have attracted approximately 16 million views, and we believe that we can continue to use traditional and new media to increase awareness of our brands and drive attendance to our theme parks.
Ÿ Expand In-Park Per Capita Spending through New and Enhanced Offerings. We believe that by providing our guests additional and enhanced offerings at various price points, we can drive further spending in our theme parks. For example, we recently introduced an “all-day-dining deal” for a supplemental fee, which we believe has resulted in increased in-park per capita spending. In addition, we have developed iPhone and Android smartphone applications for our SeaWorld and Busch Gardens theme parks, which offer GPS navigation through the theme parks and interactive theme park maps that show the nearest dining locations, gift shops and ATMs and provide real-time updates on wait times for rides. Our guests have quickly adopted these products with over one million downloads of our iPhone applications from June 2011 through December 2012. We believe that going forward, there are significant avenues to expand guest offerings in ways that both increase guest satisfaction and provide us with incremental revenue.
Ÿ Grow Revenue through Disciplined and Dynamic Pricing. We are focused on increasing our revenues through a variety of ticket options and disciplined pricing and promotional strategies. We offer an array of tailored admission options, including season passes and multi-park tickets to motivate the purchase of higher value products and increase in-park per capita spending. In addition, to increase non-peak demand we offer seasonal and special events and concerts, some of which are separately priced. We have begun deploying a dynamic pricing model, which will enable us to adjust admission prices for our theme parks based on expected demand.
Ÿ Increase Profitability through Operating Leverage and Rigorous Cost Management. Adding incremental attendance and driving additional in-park per capita spending affords us with an opportunity to realize gains in profitability because of the fixed cost base and high operating leverage of our business. We also employ rigorous cost management techniques to drive additional operating efficiencies. For example, we utilize a centralized procurement and strategic sourcing team and participate in several cooperative buying organizations to leverage our purchases company-wide and have recently consolidated our marketing spending with a single agency to streamline our marketing efforts.
Ÿ Pursue Disciplined Capital Deployment, Expansion and Acquisition Opportunities. We pursue a disciplined capital deployment strategy focused on the development and improvement of rides, attractions and shows, as well as seek to leverage our strong brands and expertise to pursue selective domestic and international expansion and acquisition opportunities. As part of this strategy, we seek to replicate successful capital investments in particular attractions across multiple theme parks, as we did with our Journey to Atlantis watercoaster that premiered in SeaWorld Orlando and was later introduced in the other SeaWorld theme parks. We have been successful in grouping our theme parks and water parks near each other, which allows us to operate companion theme parks with reduced overhead costs and creates revenue opportunities through multi-park tickets and other joint marketing initiatives. For example, in November 2012, we acquired Knott’s Soak City Chula Vista, which is located near our SeaWorld San Diego theme park. We plan to re-launch the water park as Aquatica San Diego by mid-2013. We also evaluate new domestic theme park opportunities as well as potential joint venture opportunities that would allow us to expand internationally by combining our brands and zoological and operational expertise with third-party capital.
Ÿ Leverage and Expand Our Brands to Increase Awareness and Create New Opportunities. Our brands are highly regarded and are primarily based on our own intellectual property, which provides us with opportunities to leverage our intellectual property portfolio and develop new media, entertainment and consumer products. For example, in 2013 we will open Antarctica: Empire of the Penguin at our SeaWorld Orlando theme park that will feature a new animated penguin character, Puck, and coincide with the launch of new in-park merchandise, mobile gaming, and consumer products designed around the Puck character. In addition, we are able to expand into new media platforms by partnering with others to create new, powerful entertainment opportunities. For example, in 2012, we launched Sea Rescue, a Saturday morning television show airing on the ABC Network featuring our work to rescue injured animals in coordination with various government agencies and other rescue organizations, which attracted over 27 million viewers in its first season and has been rated as the number one show in its timeslot in most major U.S. markets since its debut.
Ÿ Continue our Support of Species Conservation, Sustainability and Animal Welfare. Our zoological know-how and coast-to-coast presence provide us with significant opportunities to contribute to global species conservation, sustainability and animal welfare initiatives. For example, our employees regularly assist in animal rescue efforts, and the non-profit SeaWorld & Busch Gardens Conservation Fund, of which we are the primary supporter and corporate member, makes grants to wildlife research and species conservation projects worldwide. Our species conservation efforts and philanthropic activities generate positive awareness and goodwill for our business. These efforts are a core part of our corporate culture and identity and resonate with our customers
Here is the IPO filing - lengthy, but an interesting read, I think. http://www.sec.gov/Archives/edgar/data/1564902/000119312512515221/d448022ds1.htm
Note that there is no mention of any sort of resorts/hotels strategy, although they do trumpet the fact that all their parks are located in clusters near each other to allow for efficiencies and shared marketing costs/strategies. Also, it looks like the SeaWorld parks will suck up most of the capex money in 2014/2015 for the 50th Anniversary.
Excerpt from the Business section of the filing:
Our Strategies
We plan to grow our business by increasing our existing theme park revenues through strategies designed to drive higher attendance and increase in-park per capita spending, as well as by creating new sources of revenue through expansion of our theme parks, new theme park development and extending our brands into new media, entertainment and consumer products. We believe that our strategies complement each other as they lead to increased brand strength and awareness and drive revenue growth and profitability. Our strategies include the following components:
Ÿ Continue to Create Memorable Experiences for Our Guests. Our mission is to use the power of educational entertainment to continue to inspire our guests to celebrate, connect with and care for the natural world we share. We provide our guests with innovative and immersive theme park experiences, such as our 3-D, 360-degree TurtleTrek attraction at SeaWorld Orlando, which opened in 2012. We also offer guests exciting rides, animal encounters and beautifully-themed entertainment that are difficult to replicate, such as in-water experiences opened in 2011 with beluga whales at SeaWorld Orlando and our Cheetah Hunt ride, which is a launch coaster that runs alongside a cheetah habitat at Busch Gardens Tampa. As a result of these distinctive offerings, our guest surveys routinely report very high “Overall Satisfaction” scores, with 97% of recent respondents in 2012 ranking their experience good or excellent. Going forward, we will continue to develop high-quality experiences for our guests, focused on integrating our impressive animal collection with uniquely themed settings and products that our guests will remember long after they leave our theme parks.
Ÿ Drive Increased Attendance to Our Theme Parks. We plan to drive increased attendance to our theme parks by continually introducing new attractions, differentiated experiences and enhanced service offerings. Because of the historic correlation between capital investment and increased attendance, we plan to add to our award-winning portfolio of assets and spend capital in support of marketable events, such as SeaWorld’s 50th Anniversary Celebration. We also plan to increase awareness of our theme parks and brands through effective media and marketing campaigns, including the targeted use of online and social media platforms. For example, since their introduction in 2006, our YouTube channels have attracted approximately 16 million views, and we believe that we can continue to use traditional and new media to increase awareness of our brands and drive attendance to our theme parks.
Ÿ Expand In-Park Per Capita Spending through New and Enhanced Offerings. We believe that by providing our guests additional and enhanced offerings at various price points, we can drive further spending in our theme parks. For example, we recently introduced an “all-day-dining deal” for a supplemental fee, which we believe has resulted in increased in-park per capita spending. In addition, we have developed iPhone and Android smartphone applications for our SeaWorld and Busch Gardens theme parks, which offer GPS navigation through the theme parks and interactive theme park maps that show the nearest dining locations, gift shops and ATMs and provide real-time updates on wait times for rides. Our guests have quickly adopted these products with over one million downloads of our iPhone applications from June 2011 through December 2012. We believe that going forward, there are significant avenues to expand guest offerings in ways that both increase guest satisfaction and provide us with incremental revenue.
Ÿ Grow Revenue through Disciplined and Dynamic Pricing. We are focused on increasing our revenues through a variety of ticket options and disciplined pricing and promotional strategies. We offer an array of tailored admission options, including season passes and multi-park tickets to motivate the purchase of higher value products and increase in-park per capita spending. In addition, to increase non-peak demand we offer seasonal and special events and concerts, some of which are separately priced. We have begun deploying a dynamic pricing model, which will enable us to adjust admission prices for our theme parks based on expected demand.
Ÿ Increase Profitability through Operating Leverage and Rigorous Cost Management. Adding incremental attendance and driving additional in-park per capita spending affords us with an opportunity to realize gains in profitability because of the fixed cost base and high operating leverage of our business. We also employ rigorous cost management techniques to drive additional operating efficiencies. For example, we utilize a centralized procurement and strategic sourcing team and participate in several cooperative buying organizations to leverage our purchases company-wide and have recently consolidated our marketing spending with a single agency to streamline our marketing efforts.
Ÿ Pursue Disciplined Capital Deployment, Expansion and Acquisition Opportunities. We pursue a disciplined capital deployment strategy focused on the development and improvement of rides, attractions and shows, as well as seek to leverage our strong brands and expertise to pursue selective domestic and international expansion and acquisition opportunities. As part of this strategy, we seek to replicate successful capital investments in particular attractions across multiple theme parks, as we did with our Journey to Atlantis watercoaster that premiered in SeaWorld Orlando and was later introduced in the other SeaWorld theme parks. We have been successful in grouping our theme parks and water parks near each other, which allows us to operate companion theme parks with reduced overhead costs and creates revenue opportunities through multi-park tickets and other joint marketing initiatives. For example, in November 2012, we acquired Knott’s Soak City Chula Vista, which is located near our SeaWorld San Diego theme park. We plan to re-launch the water park as Aquatica San Diego by mid-2013. We also evaluate new domestic theme park opportunities as well as potential joint venture opportunities that would allow us to expand internationally by combining our brands and zoological and operational expertise with third-party capital.
Ÿ Leverage and Expand Our Brands to Increase Awareness and Create New Opportunities. Our brands are highly regarded and are primarily based on our own intellectual property, which provides us with opportunities to leverage our intellectual property portfolio and develop new media, entertainment and consumer products. For example, in 2013 we will open Antarctica: Empire of the Penguin at our SeaWorld Orlando theme park that will feature a new animated penguin character, Puck, and coincide with the launch of new in-park merchandise, mobile gaming, and consumer products designed around the Puck character. In addition, we are able to expand into new media platforms by partnering with others to create new, powerful entertainment opportunities. For example, in 2012, we launched Sea Rescue, a Saturday morning television show airing on the ABC Network featuring our work to rescue injured animals in coordination with various government agencies and other rescue organizations, which attracted over 27 million viewers in its first season and has been rated as the number one show in its timeslot in most major U.S. markets since its debut.
Ÿ Continue our Support of Species Conservation, Sustainability and Animal Welfare. Our zoological know-how and coast-to-coast presence provide us with significant opportunities to contribute to global species conservation, sustainability and animal welfare initiatives. For example, our employees regularly assist in animal rescue efforts, and the non-profit SeaWorld & Busch Gardens Conservation Fund, of which we are the primary supporter and corporate member, makes grants to wildlife research and species conservation projects worldwide. Our species conservation efforts and philanthropic activities generate positive awareness and goodwill for our business. These efforts are a core part of our corporate culture and identity and resonate with our customers
some interesting tidbits from the IPO:
this part is pretty interesting:
then some more numbers:
Total assets: $2,611,240,000
2010 Net Income (Jan1-Dec31): -$45,464,000
2011 Net Income (Jan1-Dec31): $19,113,000
2011 Net Income (Jan1-Sep30): $49,959,000*
2012 Net Income (Jan1-Sep30): $86,243,000*
(*unaudited)
Does this mean they operated at a loss in 2010? Also It looks like they lost ~30.8 million dollars between Oct 1 to Dec 31 2011.
this part is pretty interesting:
then some more numbers:
Total assets: $2,611,240,000
2010 Net Income (Jan1-Dec31): -$45,464,000
2011 Net Income (Jan1-Dec31): $19,113,000
2011 Net Income (Jan1-Sep30): $49,959,000*
2012 Net Income (Jan1-Sep30): $86,243,000*
(*unaudited)
Does this mean they operated at a loss in 2010? Also It looks like they lost ~30.8 million dollars between Oct 1 to Dec 31 2011.
Yeah, I saw that logo as well and was wondering about it.
Regarding them operating at a loss, here are the numbers I pulled out:
Last Month of 2009: loss of $57.7MM
2010: loss of $45.5MM
2011: profit of $19MM
1st 9 months of 2012: profit of $86MM (for now)
Analysis:
+the loss is 2009 can be attributed to the $67MM in acquisition expenses. Looks like they took all of that hit in 2009 to get it out of the way. Without that expense, they looked profitable. Better to start out looking unprofitable so you can show how you turned the business around.
+2010's loss is probably attributed to the economy and the fact that food and merchandise price increases that they cite as increasing revenue for 2011 had not been put in place yet in 2010. Looks like they also still had high interest expense on their debt since they had not refinanced their long-term debt to lower rates yet.
+For 2011, you have to use the $19MM number and not the $49MM number. The $49MM was the position at the end of September, but there were still significant expenses, including tax provisions, to come in the last quarter, which swung them from $49MM profit to $19MM. The same could happen for 2012 - the nice $86MM number can come down at the end of December as additional expenses kick in. Or who knows, maybe they're killin' it this year. They just give the 1st nine months of 2011 as a conparison point for the only numbers they have for 2012 so far.
So to answer the question, it doesn't really look like AB/InBev was losing tons of money on the parks (remember, they sold Busch Entertainment to raise money to pay off the debt from buying AB, not because the business was bad, although the economy was not helping in 2009). But they look like they needed some work/changes that Blackstone was able to make (investment, efficient/cost changes, etc.) There are some accounting things at play here related to the acquisition too.
Regarding them operating at a loss, here are the numbers I pulled out:
Last Month of 2009: loss of $57.7MM
2010: loss of $45.5MM
2011: profit of $19MM
1st 9 months of 2012: profit of $86MM (for now)
Analysis:
+the loss is 2009 can be attributed to the $67MM in acquisition expenses. Looks like they took all of that hit in 2009 to get it out of the way. Without that expense, they looked profitable. Better to start out looking unprofitable so you can show how you turned the business around.
+2010's loss is probably attributed to the economy and the fact that food and merchandise price increases that they cite as increasing revenue for 2011 had not been put in place yet in 2010. Looks like they also still had high interest expense on their debt since they had not refinanced their long-term debt to lower rates yet.
+For 2011, you have to use the $19MM number and not the $49MM number. The $49MM was the position at the end of September, but there were still significant expenses, including tax provisions, to come in the last quarter, which swung them from $49MM profit to $19MM. The same could happen for 2012 - the nice $86MM number can come down at the end of December as additional expenses kick in. Or who knows, maybe they're killin' it this year. They just give the 1st nine months of 2011 as a conparison point for the only numbers they have for 2012 so far.
So to answer the question, it doesn't really look like AB/InBev was losing tons of money on the parks (remember, they sold Busch Entertainment to raise money to pay off the debt from buying AB, not because the business was bad, although the economy was not helping in 2009). But they look like they needed some work/changes that Blackstone was able to make (investment, efficient/cost changes, etc.) There are some accounting things at play here related to the acquisition too.
That is very lengthy. But it hold a lot of interesting. Anyone sat down and read it all already? or going to?
I did and put the most interesting information in my post above. There is definitely some modest focus of their newer experiments with other types of media: movies, cartoons that are highly rated and pending jump into the mobile gaming market. I find that last part very interesting and exciting. especially if they could mimic the successes Disney has had with Where's my Water and other mobile games.
I'm sorry, but I have to.
Maybe before launching mobile games they should build functional apps for their parks.
Maybe before launching mobile games they should build functional apps for their parks.
Big news.
IPO candidate SeaWorld exploring private sale.
Anyone know who might have that kind of money?
IPO candidate SeaWorld exploring private sale.
Anyone know who might have that kind of money?
Breaking News! A group of people were seen robbing a bank wearing masks depicting Carl Lum.Zachary said:
Zachary said:
I know it's a long shot (to say the least), but the Busch family does...
Hey - a man can dream.
Chill.pandorazboxx said:
In all seriousness, I see H Partners and Apollo Global Management as likely candidates...