United Parks & Resorts Inc. (SEAS)·Q2 2024 Earnings Summary

Executive Summary

• Q2 2024 revenue was $497.6M (+0.3% YoY), diluted EPS $1.46 (+8.1% YoY), and net income $91.1M (+4.7% YoY); Adjusted EBITDA declined to $218.2M (-2.7% YoY), reflecting admissions per-capita pressure offset by record in-park per-capita .
• Attendance grew to 6.2M (+0.8% YoY), with total revenue per capita down 0.4% to $80.44 as admission per capita fell 2.9% amid promotional pricing, while in-park per capita rose 2.5% to a record $37.76 on pricing initiatives .
• Management reiterated expectation to deliver new records in revenue and Adjusted EBITDA in FY 2024; group bookings and Discovery Cove bookings are running ahead of 2023, and international visitation improved YoY, though still below 2019 .
• Bold capital return: the company repurchased ~4.1M shares in Q2 ($213.4M) and ~6.3M shares from end-March through Aug 5 (~10% of shares), leaving ~$286.6M under the program as of June 30, 2024, a potential stock-supportive catalyst .

What Went Well and What Went Wrong

• What Went Well

  • Record in-park per-capita spending of $37.76, driven by pricing initiatives; CEO: “We also achieved a record level for in park per capita spending which is a testament to the continued success of our strategies and investments in this area.”
  • Attendance increased to 6.2M (+0.8% YoY) and revenue rose slightly despite weather headwinds; CEO: “We grew attendance and revenue during the quarter despite not seeing any material improvement in weather…” .
  • Forward demand signals: Discovery Cove bookings and group bookings tracking well ahead of 2023; international visitation up YoY; “we continue to be encouraged by the booking trends… group bookings… run well ahead of 2023… International visitation… was again up… compared to prior year.” .

• What Went Wrong

  • Adjusted EBITDA fell 2.7% YoY to $218.2M; net cash provided by operating activities was $173.2M (-6.2% YoY), reflecting margin pressure and admissions mix/pricing dynamics .
  • Total revenue per capita declined 0.4% YoY, with admission per capita down 2.9% due to lower pricing on certain promotional products and product/park mix; in-park per capita strength only partly offset .
  • Q2 YoY comparables impacted by adverse weather (no material improvement vs prior year) and marketing cost increases noted in H1 commentary, constraining EBITDA momentum .

Financial Results

Guidance Changes

Note: No numeric guidance ranges provided; management commentary indicates directional expectations rather than specific ranges .

Earnings Call Themes & Trends

Transcript not available in the document set. Company issued call details (Aug 7, 2024 at 9 a.m. ET) and replay information but transcript could not be retrieved from available sources .

Management Commentary

• CEO tone/confidence: “We are pleased to report another quarter of strong financial results… We are also happy to have been able to repurchase approximately 6.3 million shares… underscoring our significant free cash flow generation and our commitment to… return excess capital to shareholders.” .
• Forward outlook: “Looking forward, we continue to be encouraged by the booking trends at our Discovery Cove property, along with our group bookings which continue to run well ahead of 2023… International visitation… was again up… compared to prior year… For the full year 2024, we continue to expect to deliver new records in revenue and Adjusted EBITDA.” .
• Strategic messaging (Q1 context): “We strongly believe we have a clear opportunity to drive meaningfully more attendance and total per capita spending… We continue to expect to deliver new records in revenue and Adjusted EBITDA for 2024.” .

Q&A Highlights

• Q&A details and transcript are not available from the accessible document set; the company provided call timing and replay information but the transcript could not be obtained .

Estimates Context

• Wall Street consensus (S&P Global/Capital IQ) for Q2 2024 EPS and revenue was unavailable via our SPGI access at this time due to mapping/request limits; as a result, we cannot determine beats/misses vs consensus for this quarter. Values retrieved from S&P Global were unavailable.
• Implication: With admissions per-capita pressure and Adjusted EBITDA down YoY, while attendance and in-park spending improved, near-term consensus adjustments would likely focus on margin cadence and pricing/mix assumptions rather than top-line growth, pending more complete sell-side data .

Key Takeaways for Investors

• Mixed print: modest revenue and EPS growth with YoY EBITDA compression as admissions per-capita fell on promotional pricing; in-park per-capita resilience mitigated the impact .
• Demand indicators are constructive: bookings at Discovery Cove and group sales ahead of 2023; international visitation improving YoY, supporting H2 events cadence (Halloween/Christmas) .
• Capital returns are assertive: ~$213.4M buybacks in Q2 and ~6.3M shares repurchased since end-March through Aug 5, with ~$286.6M remaining authorization—potentially supportive to per-share metrics and share price .
• Watch margins: continued admissions per-capita pressure from promotional pricing and mix, and no weather relief, constrain EBITDA; monitor pricing discipline and mix normalization into peak event periods .
• Balance sheet/liquidity: cash $232.1M; total debt $2.27B; deferred revenue seasonally strong at $230.5M—track refinancing and revolver expansion initiatives noted in preliminary 8-K .
• FY 2024 outlook reiterated for record revenue/Adjusted EBITDA, but without numeric ranges; ongoing event programming and attractions pipeline should underpin attendance/in-park spending trajectory .
• Absent consensus and transcript, near-term trading may hinge on perceived strength of bookings/higher-margin in-park spend vs admissions mix and weather, plus buyback pace and H2 event execution .