ORLANDO,
Fla., Aug. 4, 2022 /PRNewswire/ -- SeaWorld
Entertainment, Inc. (NYSE: SEAS), a leading theme park and
entertainment company, today reported its financial results for the
second quarter and first six months of fiscal year
2022[1] and announced that its Board of Directors
approved a new $250.0 million share
repurchase program (the "Share Repurchase Program").
Second Quarter 2022 Highlights
- Attendance was 6.3 million guests, an increase of
0.5 million guests or 7.8% from the second quarter of
2021. Compared to the second quarter of 2019, attendance decreased
by 0.2 million guests or 3.1%. Excluding international guest
visitation and group-related attendance, attendance increased by
approximately 3.3% when compared to the second quarter of
2019.
- Total revenue was a record of $504.8 million, an increase of $65.0 million or 14.8% from the second
quarter of 2021. Compared to the second quarter of 2019, total
revenues increased by $98.8 million or 24.3%.
- Net income was $116.6 million, the second highest net
income the Company has reported in a second quarter and a decrease
of $11.2 million or
8.7% from the second quarter of 2021. Compared to the second
quarter of 2019, net income increased by $64.0 million or 121.5%.
- Adjusted EBITDA[2] was a
record$234.4 million, an increase of $15.6 million or 7.1% from the second
quarter of 2021. Compared to the second quarter of 2019, Adjusted
EBITDA increased by $84.8 million or 56.6%.
- Total revenue per capita increased 6.4% to a record
$80.59 from the second quarter
of 2021. Admission per capita increased 5.0% to a record
$43.98, while in-park per capita
spending increased 8.2% to a record $36.61 from the second quarter of
2021. Compared to the second quarter of 2019, total revenue
per capita increased 28.3%, admission per capita increased 24.8%,
and in-park per capita spending increased 32.8%.
First Six Months 2022 Highlights
- Attendance was 9.7 million guests, an increase of 1.6
million guests or 20.5% from the first six months of 2021. Compared
to the first six months of 2019, attendance decreased by 0.1
million guests or 1.4%. Excluding international guest
visitation and group-related attendance, attendance increased by
approximately 7.7% when compared to the first six months of
2019.
- Total revenue was a record of $775.5
million, an increase of $163.8
million or 26.8% from the first six months of 2021. Compared
to the first six months of 2019, total revenues increased by
$148.9 million or 23.8%.
- Net income was a record of $107.6
million, an increase of $24.7
million or 29.9% from the first six months of 2021. Compared
to the first six months of 2019, net income increased by
$92.0 million.
- Adjusted EBITDA[2] was a record $300.4 million, an increase of $56.4 million or 23.1% from the first six months
of 2021. Compared to the first six months of 2019, Adjusted EBITDA
increased by $134.3 million or
80.9%.
- Total revenue per capita increased 5.2% to a record
$80.23 from the first six months of
2021. Admission per capita increased 4.4% to a record
$44.11, while in-park per capita
spending increased 6.3% to a record $36.12 from the first six months of 2021.
Compared to the first six months of 2019, total revenue per capita
increased 25.5%, admission per capita increased 21.2%, and in-park
per capita spending increased 31.2%.
Other Highlights
- The Company repurchased approximately 7.1 million shares of
common stock at a total cost of approximately $390.1 million from April
2022 through July 2022.
- The Company announced that its Board of Directors approved a
new $250.0 million share repurchase
program.
- In the second quarter of 2022, the Company came to the aid of
376 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 our fifth consecutive quarter of
record financial results," said Marc
Swanson, Chief Executive Officer of SeaWorld Entertainment,
Inc. "While our second quarter and first half financial
results were strong, these results still do not reflect a
normalized operating environment and we still have significant
scope to improve our execution and our financial results.
International and group related visitation is better than 2021 but
not yet back to pre-COVID levels; our staffing improved over the
course of the second quarter, but we are still not yet at optimized
staffing levels; inflationary pressures while moderating, continue
to impact costs across the enterprise. Total revenue for the
quarter was up more than 24% versus 2019 and almost 15% versus a
record 2021, and our pricing power and consumer spending remained
strong with total revenue per capita up significantly versus 2019
and up nicely versus a record 2021. While we were focused on
getting all of our parks open and fully operating during the summer
season for the first time since 2019, we could have had more
effective cost management during the quarter. We can and will
work to do a better job going forward, consistent with what we have
been doing for the past several years. We have several new
projects and initiatives in flight that we expect will help us work
to offset the unusually high inflationary pressures and become a
more efficient and profitable operating business. Further, we
expect certain cyclical, supply chain related and/or temporary cost
pressures such as energy and utilities, shipping, food and certain
wage and employee related costs to moderate over the coming months
and quarters."
"We continue to benefit from a very strong financial position
with leverage under 2.7x, long term debt maturities, generally low
cost of debt of slightly over 5% and significant available
liquidity and cash flow generation. Given this strong
financial position, our clear belief in our go forward prospects
and what we believe is an extremely attractive value being offered
by the markets, we continued to aggressively repurchase shares
during the second quarter and into the third quarter, exhausting
the entirety of our prior repurchase authorizations. And today we
are announcing a new $250 million
buyback authorization."
"We are pleased that preliminary July revenue continued to grow
versus a record July 2021 and was up
approximately 20% compared to July
2019 and we look forward to closing out what we expect to be
another solid summer. Looking ahead to the fall, we are
excited about our popular Halloween events we have scheduled at our
SeaWorld, Busch Gardens and Sesame Place parks. We look
forward to building on the strength of last year, including the
return of "Howl-O-Scream" at SeaWorld Orlando and SeaWorld San
Diego following last year's introduction, along with the first year
of the Count's Halloween Spooktacular at our newest park, Sesame
Place San Diego."
"As we continue to demonstrate, our business model is strong and
resilient and we have significant opportunities to improve and grow
our revenue and profitability. As a reminder, we operate in
an industry and in markets with growing demand trends over the long
term and we have significant available guest capacity across our
park portfolio. Our recent attendance levels are still below the
total attendance levels we achieved in 2019 and well below our
historical high attendance recorded in 2008. We have made
significant investments that we expect will continue to pay off and
we have specific plans we are executing on today and for the future
that give us high confidence in our ability to continue to deliver
additional operational and financial improvements that we expect
will lead to meaningful increases in shareholder value," concluded
Swanson.
The Company's results of operations for the second quarter of
2022 and 2021 continue to be impacted by the global COVID-19
pandemic due in part to a decline in both international and
group-related attendance in both periods. Additionally,
results of operations for the second quarter and first half of 2021
were impacted by capacity limitations, modified/limited operations
and/or temporary park closures, decreased demand due to public
concerns associated with the pandemic, and restrictions on
international travel. In particular, beginning on
April 1, 2021, capacity at the
Company's Busch Gardens Williamsburg park was limited to
approximately 13,000 guests. On May
28, 2021, theme park capacity restrictions in the
State of Virginia were
removed. At the beginning of the second quarter of 2021, the
Company's SeaWorld San Diego park was operating under capacity
restrictions in compliance with state safety guidelines for
zoos. On April 12, 2021,
SeaWorld San Diego resumed theme park operations with limited
capacity in accordance with the State of
California guidelines for theme parks. On June 15, 2021, all capacity restrictions for
SeaWorld San Diego were removed in accordance with the State of California guidelines.
Second Quarter 2022
Results
In the second quarter of 2022, the Company hosted approximately
6.3 million guests, generated record total revenue of $504.8 million, net income of $116.6 million (the second highest net income the
Company has reported in a second quarter) and record Adjusted
EBITDA of $234.4 million. Total
attendance for the quarter increased by 0.5 million, or 7.8%, when
compared to the prior year quarter.
Total revenue for the quarter increased by $65.0 million, or 14.8%, when compared to the
prior year quarter. The revenue improvement was a result of
an increase in attendance and total revenue per capita.
Attendance benefitted primarily from an increase in demand
resulting from a return to more normalized operations when compared
to the second quarter of 2021, which included COVID-19 related
impacts including restrictions on international travel,
modified/limited operations and capacity limitations at some of the
Company's parks.
Admission per capita (defined as admissions revenue divided by
total attendance) increased by 5.0% to $43.98, primarily due to the realization of
higher prices in the Company's admission products resulting from
its strategic pricing efforts, which was partially offset the
impact of the park mix when compared to the prior year
quarter. In-park per capita spending (defined as food,
merchandise and other revenue divided by total attendance)
increased 8.2% to $36.61 due to a
combination of factors including pricing initiatives, improved
product quality and mix, the impact of new or enhanced and expanded
venues and/or events or other in-park offerings. These
factors were partially offset by the impact of a higher mix of pass
attendance when compared to the prior year quarter. Adjusted
EBITDA was positively impacted by the increase in total revenue
resulting from improvement in attendance and total revenue per
capita partially offset by an increase in expenses. The
increase in expenses is primarily due to higher operating costs
related to more normalized operations, including labor, and
marketing, and the impact of inflationary pressures which were
partially offset by structural cost savings initiatives when
compared to the second quarter of 2021.
|
|
Three Months Ended
June 30,
|
|
|
Change
|
|
|
|
2022
|
|
|
2021
|
|
|
%
|
|
(In millions,
except per share and per capita amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$
|
504.8
|
|
|
$
|
439.8
|
|
|
|
14.8
|
%
|
Net income
|
|
$
|
116.6
|
|
|
$
|
127.8
|
|
|
|
(8.7)
|
%
|
Earnings per share,
diluted
|
|
$
|
1.62
|
|
|
$
|
1.59
|
|
|
|
1.9
|
%
|
Adjusted
EBITDA
|
|
$
|
234.4
|
|
|
$
|
218.8
|
|
|
|
7.1
|
%
|
Net cash provided by
operating activities
|
|
$
|
228.8
|
|
|
$
|
229.7
|
|
|
|
(0.4)
|
%
|
Attendance
|
|
|
6.3
|
|
|
|
5.8
|
|
|
|
7.8
|
%
|
Total revenue per
capita
|
|
$
|
80.59
|
|
|
$
|
75.71
|
|
|
|
6.4
|
%
|
Admission per
capita
|
|
$
|
43.98
|
|
|
$
|
41.87
|
|
|
|
5.0
|
%
|
In-Park per capita
spending
|
|
$
|
36.61
|
|
|
$
|
33.84
|
|
|
|
8.2
|
%
|
First Six Months 2022
Results
In the first six months of 2022, the Company hosted
approximately 9.7 million guests, generated record total revenue of
$775.5 million, record net
income of $107.6 million and record
Adjusted EBITDA of $300.4 million.
Total attendance for the first six months increased by 1.6 million,
or 20.5%, when compared to the first six months of 2021.
Total revenue for the first six months of 2022 increased by
$163.8 million, or 26.8%, when
compared to the first six months of 2021. The revenue
improvement was a result of an increase in attendance and total
revenue per capita. Attendance benefitted primarily from an
increase in demand resulting from a return to more normalized
operations when compared to the first six months of 2021, which
included COVID-19 related impacts including limited operating days,
a temporary park closure, capacity limitations at some of the
Company's parks and restrictions on international travel.
Admission per capita increased by 4.4% to $44.11, primarily due to the realization of
higher prices in the Company's admission products resulting from
strategic pricing efforts, which was partially offset by the impact
of the park mix when compared to the first six months of
2021. In-park per capita spending increased 6.3% to
$36.12 due to a combination of
factors including, pricing initiatives, improved product quality
and mix and the impact of new or enhanced and expanded venues,
and/or events or other in-park offerings, partially offset by a
higher mix of pass attendance and the impact of park mix when
compared to the first six months of 2021. In-park per capita
spending was unfavorably impacted by less-than-optimal staffing,
particularly during the first quarter of 2022, that impacted the
Company's ability to fully operate and/or open some of its food and
beverage and retail outlets. Adjusted EBITDA was positively
impacted by the increase in total revenue resulting from
improvement in attendance and total revenue per capita partially
offset by an increase in expenses. The increase in expenses
is primarily due to higher operating costs related to a return to
more normalized operations, including labor and marketing and the
impact of inflationary pressures which were partially offset by
structural cost savings initiatives when compared to the first six
months of 2021.
|
|
Six Months Ended
June 30,
|
|
|
Change
|
|
|
|
2022
|
|
|
2021
|
|
|
%
|
|
(In millions,
except per share and per capita amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$
|
775.5
|
|
|
$
|
611.7
|
|
|
|
26.8
|
%
|
Net income
|
|
$
|
107.6
|
|
|
$
|
82.9
|
|
|
|
29.9
|
%
|
Earnings per share,
diluted
|
|
$
|
1.45
|
|
|
$
|
1.03
|
|
|
|
40.8
|
%
|
Adjusted
EBITDA
|
|
$
|
300.4
|
|
|
$
|
244.0
|
|
|
|
23.1
|
%
|
Net cash provided by
operating activities
|
|
$
|
299.6
|
|
|
$
|
248.1
|
|
|
|
20.8
|
%
|
Attendance
|
|
|
9.7
|
|
|
|
8.0
|
|
|
|
20.5
|
%
|
Total revenue per
capita
|
|
$
|
80.23
|
|
|
$
|
76.24
|
|
|
|
5.2
|
%
|
Admission per
capita
|
|
$
|
44.11
|
|
|
$
|
42.25
|
|
|
|
4.4
|
%
|
In-Park per capita
spending
|
|
$
|
36.12
|
|
|
$
|
33.99
|
|
|
|
6.3
|
%
|
Share Repurchases
The Company repurchased approximately 7.1 million shares of
common stock at a total cost of approximately $390.1 million from April
2022 through July 2022 under
its prior share repurchase authorizations.
The Company also announced that its Board of Directors approved
a new $250.0 million share repurchase
program. Under the Share Repurchase Program, the Company is
authorized to repurchase shares through open market purchases,
privately-negotiated transactions or otherwise in accordance with
applicable federal securities laws, including through Rule 10b5-1
trading plans and under Rule 10b-18
of the Exchange Act. The Share Repurchase Program has no time limit
and may be suspended or discontinued completely at any time. The
number of shares to be purchased and the timing of purchases will
be based on the Company's trading windows and available liquidity,
general business and market conditions, and other factors,
including legal requirements, share ownership thresholds, debt
covenant restrictions and alternative investment opportunities.
Leverage and Liquidity
As of June 30, 2022, the Company's
total Net Leverage was 2.7x and total available liquidity was
$531.1 million.[3]
Other
As of June 30, 2022, the Company's
current deferred revenue balance was $235.5
million, a decrease of approximately 1.3% when compared to
June 30, 2021, which included the
impact of some COVID-19 related product extensions, and an increase
of 44.4% when compared to June 30,
2019.
Rescue Efforts
In the second quarter of 2022, the Company came to the aid of
376 animals in need. The total number of animals the Company has
helped over its history is more than 40,000 including bottlenose
dolphins, manatees, sea lions, seals, sea turtles, sharks, birds
and more.
The Company is a leader in animal rescue. 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, including during the temporary park closures in 2020
and 2021 due to the COVID-19 pandemic. Consistent with its mission
to protect animals and their ecosystems, rescue teams mobilize and
often travel thousands 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, Thursday, August 4, 2022 at 9 a.m. Eastern Time to discuss its second quarter
and first six months of fiscal year 2022 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. Prior to the
call, a slide presentation will be posted on the investor relations
section of 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 4, 2022
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 4, 2022 through
11:59 p.m. Eastern Time on
August 11, 2022 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
2771718.
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.
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
the United States, many of which
showcase its one-of-a-kind zoological collection. The Company's
theme parks feature a diverse array of rides, shows and other
attractions with broad demographic appeal which deliver memorable
experiences and a strong value proposition for its guests.
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,
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: COVID-19
or any related mutations and its impact on the Company's business
and the economy in general; failure to hire and/or retain
employees; a decline in discretionary consumer spending or consumer
confidence; factors beyond the Company's control adversely
affecting attendance and guest spending at its theme parks,
including, but not limited to, weather, natural disasters, foreign
exchange rates, consumer confidence, the potential spread of
travel-related health concerns including pandemics and epidemics
(such as the recent declaration by the World Health Organization of
Monkeypox as a global health emergency), travel related concerns,
adverse general economic related factors including increasing
interest rates, economic uncertainty, and recent geopolitical
events outside of the United
States and governmental actions; complex federal and state
regulations governing the treatment of animals, which can change,
and claims and lawsuits by activist groups before government
regulators and in the courts; activist and other third-party groups
and/or media can pressure governmental agencies, vendors, partners,
and/or regulators, bring action in the courts or create negative
publicity about us; incidents or adverse publicity concerning the
Company's theme parks, the theme park industry and/or zoological
facilities; environmental, social and corporate governance ("ESG")
related matters, our reporting of such matters, or sustainability
ratings could negatively impact our business and results of
operations; risks affecting the States of Florida, California and Virginia which generate a significant portion
of the Company's revenues such as natural disasters, closures due
to pandemics, severe weather and travel-related disruptions or
incidents; seasonal fluctuations in operating results, inability to
compete effectively in the highly competitive theme park industry;
interactions between animals and the Company's employees and its
guests at attractions at its theme parks, animal exposure to
infectious disease; high fixed cost structure of theme park
operations; changing consumer tastes and preferences; cyber
security risks and failure to maintain the integrity of internal,
employee or guest data and/or failure to abide by the evolving
cyber security regulatory environment; technology interruptions or
failures that impair access to the Company's websites and/or
information technology systems; increased labor costs, including
wage increases, and employee health and welfare benefits; inability
to grow the business or fund theme park capital expenditures,
inability to realize the benefits of developments, restructurings,
acquisitions or other strategic initiatives, and the impact of the
costs associated with such activities; inability to remediate an
identified material weakness on a timely basis; adverse litigation
judgments or settlements; inability to protect the Company's
intellectual property or the infringement on intellectual property
rights of others; the loss of licenses and permits required to
exhibit animals or the violation of laws and regulations;
unionization activities and/or labor disputes; inability to
maintain certain commercial licenses; restrictions in its debt
agreements limiting flexibility in operating the business;
inability to retain the Company's current credit ratings; the
Company's leverage; inadequate insurance coverage; inability to
purchase or contract with third party manufacturers for rides and
attractions, construction delays or impacts of supply chain
disruptions on existing or new rides and attractions; environmental
regulations, expenditures and liabilities; suspension or
termination of any of the Company's business licenses, including by
legislation at federal, state or local levels; delays, restrictions
or inability to obtain or maintain permits; financial distress of
strategic partners or other counterparties; tariffs or other trade
restrictions; actions of activist stockholders; the ability of Hill
Path Capital LP and its affiliates to significantly influence its
decisions; the policies of the U.S. President and his
administration or any change to tax laws; changes in the method for
determining LIBOR and the potential replacement of LIBOR may affect
its cost of capital; mandates related to COVID-19 vaccinations for
employees; changes or declines in its stock price, as well as the
risk that securities analysts could downgrade the Company's stock
or its sector; risks associated with the Company's capital
allocation plans and share repurchases, including the risk that its
share repurchase program could increase volatility and fail to
enhance stockholder value and other risks, uncertainties and
factors set forth in the section entitled "Risk Factors" in the
Company's most recently available Annual Report on Form 10-K, as
such risks, uncertainties and factors may be updated in the
Company's periodic filings with the Securities and Exchange
Commission ("SEC"). Although the Company believes that these
statements are based upon reasonable assumptions, it cannot
guarantee future results and readers are cautioned not to place
undue reliance on these forward-looking statements, which reflect
management's opinions only as of the date of this press release.
There can be no assurance that (i) the Company has correctly
measured or identified all of the factors affecting its business or
the extent of these factors' likely impact, (ii) the available
information with respect to these factors on which such analysis is
based is complete or accurate, (iii) such analysis is correct or
(iv) the Company's strategy, which is based in part on this
analysis, will be successful. Except as required by law, the
Company undertakes no obligation to update or revise
forward-looking statements to reflect new information or events or
circumstances that occur after the date of this press release or to
reflect the occurrence of unanticipated events or otherwise.
Readers are advised to review the Company's filings with the SEC
(which are available from the SEC's EDGAR database at www.sec.gov
and via the Company's website at www.seaworldinvestors.com).
|
|
|
|
[1] Given results of operations for
the second quarter and first six months of 2021 were impacted by
capacity limitations, modified/limited operations and/or temporary
park closures, decreased demand due to public concerns associated
with the pandemic, and restrictions on international travel, the
Company believes a comparison of its results to the second quarter
and first six months of 2019 provides a more meaningful insight on
its performance and operating trajectory. The Company
provides a comparison versus both 2019 and 2021 periods in this
release and will do so as well in its Form 10-Q.
|
[2] 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 U.S. ("GAAP"). See
"Statement Regarding Non-GAAP Financial Measures" section and the
financial statement tables for the definitions of Adjusted EBITDA,
Covenant Adjusted EBITDA and Free Cash Flow and the reconciliation
of these measures for historical periods to their respective most
comparable financial measures calculated in accordance with
GAAP.
|
[3] Including cash and cash
equivalents and undrawn capacity on the Company's revolving credit
facility.
|
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
Ended June 30,
|
|
|
Change
|
|
|
For the Six
Months
Ended June 30,
|
|
|
Change
|
|
|
|
2022
|
|
|
2021
|
|
|
$
|
|
|
%
|
|
|
2022
|
|
|
2021
|
|
|
$
|
|
|
%
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions
|
|
$
|
275,505
|
|
|
$
|
243,225
|
|
|
$
|
32,280
|
|
|
|
13.3
|
%
|
|
$
|
426,367
|
|
|
$
|
339,005
|
|
|
$
|
87,362
|
|
|
|
25.8
|
%
|
Food, merchandise and
other
|
|
|
229,312
|
|
|
|
196,559
|
|
|
|
32,753
|
|
|
|
16.7
|
%
|
|
|
349,143
|
|
|
|
272,699
|
|
|
|
76,444
|
|
|
|
28.0
|
%
|
Total
revenues
|
|
|
504,817
|
|
|
|
439,784
|
|
|
|
65,033
|
|
|
|
14.8
|
%
|
|
|
775,510
|
|
|
|
611,704
|
|
|
|
163,806
|
|
|
|
26.8
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of food,
merchandise and other
revenues
|
|
|
41,518
|
|
|
|
34,173
|
|
|
|
7,345
|
|
|
|
21.5
|
%
|
|
|
64,558
|
|
|
|
49,115
|
|
|
|
15,443
|
|
|
|
31.4
|
%
|
Operating expenses
(exclusive of
depreciation and amortization shown
separately below)
|
|
|
190,496
|
|
|
|
157,307
|
|
|
|
33,189
|
|
|
|
21.1
|
%
|
|
|
343,421
|
|
|
|
265,079
|
|
|
|
78,342
|
|
|
|
29.6
|
%
|
Selling, general and
administrative expenses
|
|
|
56,158
|
|
|
|
43,190
|
|
|
|
12,968
|
|
|
|
30.0
|
%
|
|
|
102,217
|
|
|
|
74,654
|
|
|
|
27,563
|
|
|
|
36.9
|
%
|
Severance and other
separation costs (a)
|
|
|
83
|
|
|
|
1,496
|
|
|
|
(1,413)
|
|
|
|
(94.5)
|
%
|
|
|
113
|
|
|
|
1,582
|
|
|
|
(1,469)
|
|
|
|
(92.9)
|
%
|
Depreciation and
amortization
|
|
|
38,551
|
|
|
|
36,247
|
|
|
|
2,304
|
|
|
|
6.4
|
%
|
|
|
77,163
|
|
|
|
72,805
|
|
|
|
4,358
|
|
|
|
6.0
|
%
|
Total costs and
expenses
|
|
|
326,806
|
|
|
|
272,413
|
|
|
|
54,393
|
|
|
|
20.0
|
%
|
|
|
587,472
|
|
|
|
463,235
|
|
|
|
124,237
|
|
|
|
26.8
|
%
|
Operating
income
|
|
|
178,011
|
|
|
|
167,371
|
|
|
|
10,640
|
|
|
|
6.4
|
%
|
|
|
188,038
|
|
|
|
148,469
|
|
|
|
39,569
|
|
|
|
26.7
|
%
|
Other (income) expense,
net
|
|
|
(32)
|
|
|
|
21
|
|
|
|
(53)
|
|
|
NM
|
|
|
|
(44)
|
|
|
|
195
|
|
|
|
(239)
|
|
|
NM
|
|
Interest
expense
|
|
|
26,810
|
|
|
|
31,127
|
|
|
|
(4,317)
|
|
|
|
(13.9)
|
%
|
|
|
52,180
|
|
|
|
62,083
|
|
|
|
(9,903)
|
|
|
|
(16.0)
|
%
|
Income before income
taxes
|
|
|
151,233
|
|
|
|
136,223
|
|
|
|
15,010
|
|
|
|
11.0
|
%
|
|
|
135,902
|
|
|
|
86,191
|
|
|
|
49,711
|
|
|
|
57.7
|
%
|
Provision for income
taxes
|
|
|
34,623
|
|
|
|
8,461
|
|
|
|
26,162
|
|
|
NM
|
|
|
|
28,279
|
|
|
|
3,313
|
|
|
|
24,966
|
|
|
NM
|
|
Net
income
|
|
$
|
116,610
|
|
|
$
|
127,762
|
|
|
$
|
(11,152)
|
|
|
|
(8.7)
|
%
|
|
$
|
107,623
|
|
|
$
|
82,878
|
|
|
$
|
24,745
|
|
|
|
29.9
|
%
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
basic
|
|
$
|
1.63
|
|
|
$
|
1.62
|
|
|
|
|
|
|
|
|
|
|
$
|
1.46
|
|
|
$
|
1.05
|
|
|
|
|
|
|
|
|
|
Earnings per share,
diluted
|
|
$
|
1.62
|
|
|
$
|
1.59
|
|
|
|
|
|
|
|
|
|
|
$
|
1.45
|
|
|
$
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
71,686
|
|
|
|
78,986
|
|
|
|
|
|
|
|
|
|
|
|
73,623
|
|
|
|
78,724
|
|
|
|
|
|
|
|
|
|
Diluted
(b)
|
|
|
72,168
|
|
|
|
80,177
|
|
|
|
|
|
|
|
|
|
|
|
74,449
|
|
|
|
80,123
|
|
|
|
|
|
|
|
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES
UNAUDITED
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In
thousands)
|
|
|
|
For the Three Months
Ended June 30,
|
|
|
For the Six Months
Ended June 30,
|
|
|
Last
Twelve
Months
Ended
June 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2019
|
|
|
2022
|
|
|
2021
|
|
|
2019
|
|
|
2022
|
|
|
Net
income
|
|
$
|
116,610
|
|
|
$
|
127,762
|
|
|
$
|
52,651
|
|
|
$
|
107,623
|
|
|
$
|
82,878
|
|
|
$
|
15,631
|
|
|
$
|
281,258
|
|
|
Provision for income
taxes
|
|
|
34,623
|
|
|
|
8,461
|
|
|
|
21,889
|
|
|
|
28,279
|
|
|
|
3,313
|
|
|
|
6,782
|
|
|
|
24,802
|
|
|
Loss on early
extinguishment of debt and write-
off of discounts and debt issuance costs (c)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
58,827
|
|
|
Interest
expense
|
|
|
26,810
|
|
|
|
31,127
|
|
|
|
21,803
|
|
|
|
52,180
|
|
|
|
62,083
|
|
|
|
42,600
|
|
|
|
106,739
|
|
|
Depreciation and
amortization
|
|
|
38,551
|
|
|
|
36,247
|
|
|
|
40,053
|
|
|
|
77,163
|
|
|
|
72,805
|
|
|
|
79,503
|
|
|
|
153,018
|
|
|
Equity-based
compensation expense (d)
|
|
|
3,205
|
|
|
|
6,782
|
|
|
|
4,084
|
|
|
|
11,082
|
|
|
|
11,255
|
|
|
|
7,282
|
|
|
|
40,845
|
|
|
Loss on impairment or
disposal of assets and
certain non-cash expenses (e)
|
|
|
4,411
|
|
|
|
3,079
|
|
|
|
683
|
|
|
|
9,015
|
|
|
|
3,687
|
|
|
|
792
|
|
|
|
12,427
|
|
|
Business optimization,
development and
strategic initiative costs (f)
|
|
|
5,790
|
|
|
|
2,835
|
|
|
|
3,884
|
|
|
|
9,394
|
|
|
|
3,347
|
|
|
|
8,992
|
|
|
|
14,806
|
|
|
Certain investment
costs and other taxes (g)
|
|
|
599
|
|
|
|
329
|
|
|
|
4,412
|
|
|
|
1,000
|
|
|
|
416
|
|
|
|
4,462
|
|
|
|
1,414
|
|
|
COVID-19 related
incremental costs (h)
|
|
|
623
|
|
|
|
2,192
|
|
|
|
—
|
|
|
|
973
|
|
|
|
4,368
|
|
|
|
—
|
|
|
|
19,167
|
|
|
Other adjusting items
(i)
|
|
|
3,224
|
|
|
|
2
|
|
|
|
215
|
|
|
|
3,677
|
|
|
|
(147)
|
|
|
|
46
|
|
|
|
5,126
|
|
|
Adjusted EBITDA
(j)
|
|
$
|
234,446
|
|
|
$
|
218,816
|
|
|
$
|
149,674
|
|
|
$
|
300,386
|
|
|
$
|
244,005
|
|
|
$
|
166,090
|
|
|
$
|
718,429
|
|
|
Items added back to
Covenant Adjusted
EBITDA as defined in the Debt Agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated cost savings
(k)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,100
|
|
|
Other adjustments as
defined in the Debt
Agreements (l)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,329
|
|
|
Covenant Adjusted
EBITDA (m)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
741,858
|
|
|
|
|
For the Three Months
Ended June 30,
|
|
|
For the Six Months
Ended June 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2019
|
|
|
2022
|
|
|
2021
|
|
|
2019
|
|
Net cash provided by
operating activities
|
|
$
|
228,840
|
|
|
$
|
229,685
|
|
|
$
|
129,698
|
|
|
$
|
299,634
|
|
|
$
|
248,078
|
|
|
$
|
167,386
|
|
Capital
expenditures
|
|
|
65,938
|
|
|
|
29,683
|
|
|
|
64,801
|
|
|
|
101,048
|
|
|
|
44,981
|
|
|
|
112,738
|
|
Free Cash Flow
(n)
|
|
$
|
162,902
|
|
|
$
|
200,002
|
|
|
$
|
64,897
|
|
|
$
|
198,586
|
|
|
$
|
203,097
|
|
|
$
|
54,648
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES
UNAUDITED BALANCE
SHEET DATA
(In
thousands)
|
|
|
|
As of June 30,
2022
|
|
|
As of December
31,
2021
|
|
Cash and cash
equivalents
|
|
$
|
160,830
|
|
|
$
|
443,707
|
|
Total assets
|
|
$
|
2,396,610
|
|
|
$
|
2,610,316
|
|
Deferred
revenue
|
|
$
|
235,542
|
|
|
$
|
154,793
|
|
Long-term debt,
including current maturities:
|
|
|
|
|
|
|
|
|
Term B Loans
|
|
|
1,191,000
|
|
|
|
1,197,000
|
|
Senior Notes
|
|
|
725,000
|
|
|
|
725,000
|
|
First-Priority Senior
Secured Notes
|
|
|
227,500
|
|
|
|
227,500
|
|
Total long-term debt,
including current maturities
|
|
$
|
2,143,500
|
|
|
$
|
2,149,500
|
|
Total
stockholders' deficit
|
|
$
|
(401,451)
|
|
|
$
|
(33,916)
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES
UNAUDITED CAPITAL
EXPENDITURES DATA
(In
thousands)
|
|
|
|
For the Six Months
Ended
June 30,
|
|
|
Change
|
|
|
|
|
2022
|
|
|
2021
|
|
|
$
|
|
|
%
|
|
|
Capital
Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
(o)
|
|
$
|
67,606
|
|
|
$
|
31,668
|
|
|
$
|
35,938
|
|
|
|
113.5
|
%
|
|
Expansion/ROI projects
(p)
|
|
|
33,442
|
|
|
|
13,313
|
|
|
|
20,129
|
|
|
|
151.2
|
%
|
|
Capital expenditures,
total
|
|
$
|
101,048
|
|
|
$
|
44,981
|
|
|
$
|
56,067
|
|
|
|
124.6
|
%
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES
UNAUDITED OTHER
DATA
(In thousands,
except per capita amounts)
|
|
|
|
For the Three
Months Ended
June 30,
|
|
|
Change
|
|
|
For the Six
Months
Ended June 30,
|
|
|
Change
|
|
|
|
2022
|
|
|
2021
|
|
|
#
|
|
|
%
|
|
|
2022
|
|
|
2021
|
|
|
#
|
|
|
%
|
|
Attendance
|
|
|
6,264
|
|
|
|
5,809
|
|
|
|
455
|
|
|
|
7.8
|
%
|
|
|
9,666
|
|
|
|
8,023
|
|
|
|
1,643
|
|
|
|
20.5
|
%
|
Total revenue per
capita (q)
|
|
$
|
80.59
|
|
|
$
|
75.71
|
|
|
$
|
4.88
|
|
|
|
6.4
|
%
|
|
$
|
80.23
|
|
|
$
|
76.24
|
|
|
$
|
3.99
|
|
|
|
5.2
|
%
|
Admission per capita
(r)
|
|
$
|
43.98
|
|
|
$
|
41.87
|
|
|
$
|
2.11
|
|
|
|
5.0
|
%
|
|
$
|
44.11
|
|
|
$
|
42.25
|
|
|
$
|
1.86
|
|
|
|
4.4
|
%
|
In-Park per capita
spending (s)
|
|
$
|
36.61
|
|
|
$
|
33.84
|
|
|
$
|
2.77
|
|
|
|
8.2
|
%
|
|
$
|
36.12
|
|
|
$
|
33.99
|
|
|
$
|
2.13
|
|
|
|
6.3
|
%
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES
|
|
UNAUDITED SELECTED
FINANCIAL INFORMATION COMPARED TO 2019
|
|
(In thousands,
except per share and per capita amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended June 30,
|
|
|
Change
|
|
|
For the Six
Months
Ended June 30,
|
|
|
Change
|
|
|
|
2022
|
|
|
2019
|
|
|
#
|
|
|
%
|
|
|
2022
|
|
|
2019
|
|
|
#
|
|
|
%
|
|
Total
revenues
|
|
$
|
504,817
|
|
|
$
|
405,992
|
|
|
$
|
98,825
|
|
|
|
24.3
|
%
|
|
$
|
775,510
|
|
|
$
|
626,567
|
|
|
$
|
148,943
|
|
|
|
23.8
|
%
|
Net income
|
|
$
|
116,610
|
|
|
$
|
52,651
|
|
|
$
|
63,959
|
|
|
|
121.5
|
%
|
|
$
|
107,623
|
|
|
$
|
15,631
|
|
|
$
|
91,992
|
|
|
NM
|
|
Net income per share,
diluted
|
|
$
|
1.62
|
|
|
$
|
0.64
|
|
|
$
|
0.98
|
|
|
|
153.1
|
%
|
|
$
|
1.45
|
|
|
$
|
0.19
|
|
|
$
|
1.26
|
|
|
NM
|
|
Adjusted EBITDA
(t)
|
|
$
|
234,446
|
|
|
$
|
149,674
|
|
|
$
|
84,772
|
|
|
|
56.6
|
%
|
|
$
|
300,386
|
|
|
$
|
166,090
|
|
|
$
|
134,296
|
|
|
|
80.9
|
%
|
Net cash provided by
operating activities
|
|
$
|
228,840
|
|
|
$
|
129,698
|
|
|
$
|
99,142
|
|
|
|
76.4
|
%
|
|
$
|
299,634
|
|
|
$
|
167,386
|
|
|
$
|
132,248
|
|
|
|
79.0
|
%
|
Attendance
|
|
|
6,264
|
|
|
|
6,463
|
|
|
|
(199)
|
|
|
|
(3.1)
|
%
|
|
|
9,666
|
|
|
|
9,802
|
|
|
|
(136)
|
|
|
|
(1.4)
|
%
|
Total revenue per
capita
|
|
$
|
80.59
|
|
|
$
|
62.82
|
|
|
$
|
17.77
|
|
|
|
28.3
|
%
|
|
$
|
80.23
|
|
|
$
|
63.92
|
|
|
$
|
16.31
|
|
|
|
25.5
|
%
|
Admission per
capita
|
|
$
|
43.98
|
|
|
$
|
35.25
|
|
|
$
|
8.73
|
|
|
|
24.8
|
%
|
|
$
|
44.11
|
|
|
$
|
36.39
|
|
|
$
|
7.72
|
|
|
|
21.2
|
%
|
In-Park per capita
spending
|
|
$
|
36.61
|
|
|
$
|
27.57
|
|
|
$
|
9.04
|
|
|
|
32.8
|
%
|
|
$
|
36.12
|
|
|
$
|
27.53
|
|
|
$
|
8.59
|
|
|
|
31.2
|
%
|
NM-Not
meaningful.
|
|
|
(a) Reflects
restructuring and other separation costs.
|
|
(b) 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. During the three and six months ended June 30,
2021, there were approximately 184,000 and 126,000 anti-dilutive
shares excluded from the computation of diluted earnings per share,
respectively.
|
|
(c) Reflects
a loss on early extinguishment of debt and write-off of discounts
and debt issuance costs primarily associated with the refinancing
transactions in 2021.
|
|
(d) Reflects non-cash equity
compensation expenses and related payroll taxes associated with
grants of equity-based compensation. For the twelve months
ended June 30, 2022, includes equity compensation expense related
to certain performance vesting restricted awards which were
previously not considered probable of vesting.
|
|
(e) 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. For the six and twelve months
ended June 30, 2022, includes approximately $3.9 million related to
non-cash self-insurance reserve adjustments.
|
|
(f) For
the three and six months ended June 30, 2022, reflects business
optimization, development and other strategic initiative costs
primarily related to: (i) $2.9 million and $5.1 million,
respectively of third-party consulting costs and (ii) $2.5 million
and $3.9 million, respectively of other business optimization costs
and strategic initiative costs.
|
For the three and six
months ended June 30, 2021, reflects business optimization,
development and other strategic initiative costs primarily related
to: (i) $1.5 million and $1.6 million, respectively, of severance
and other separation costs associated with positions eliminated and
(ii) $0.4 million and $0.5 million, respectively, of third-party
consulting costs.
|
For the three and six
months ended June 30, 2019, reflects business optimization,
development and other strategic initiative costs primarily related
to: (i) $3.6 million and $5.9 million, respectively, of third-party
consulting costs and (ii) $0.1 million and $2.6 million,
respectively, of severance and other employment costs associated
with positions eliminated.
|
For the twelve months
ended June 30, 2022, reflects business optimization, development
and other strategic initiative costs primarily related to: (i) $8.9
million of third-party consulting costs and (ii) $5.8 million of
other business optimization costs and strategic initiative
costs.
|
|
(g) For
the three and six months ended June 30, 2019, includes
approximately $4.3 million relating to expenses associated with the
previously disclosed transfer of shares and related
transactions.
|
|
(h) For
the three and six months ended June 30, 2022 and 2021, 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.
|
For the twelve months
ended June 30, 2022, includes approximately $11.1 million of
nonrecurring contractual liabilities and legal costs impacted by
the temporary COVID-19 park closures and approximately $6.8 million
of incremental temporary labor-related costs incurred to prepare
and staff the parks and certain incremental, nonrecurring,
temporary incentives paid to attract employees to return to or
remain in the workforce during the COVID-19 related
environment.
|
|
(i) Reflects the impact of expenses,
net of insurance recoveries and adjustments, incurred primarily
related to certain matters, which the Company is permitted to
exclude under the credit agreement governing its Senior Secured
Credit Facilities due to the unusual nature of the items. For
the three, six and twelve months ended June 30, 2022, includes $3.6
million related to a legal settlement.
|
|
(j)Adjusted
EBITDA is defined as net income before income tax expense, interest
expense, depreciation and amortization, as further adjusted to
exclude certain non-cash, and other items as described
above.
|
|
(k) The
Company's Debt Agreements, which were effective for the twelve
months ended June 30, 2022, permit the calculation of certain
covenants to be based on Covenant Adjusted EBITDA, as defined, 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.
|
|
(l)
The Debt Agreements, which were effective for the twelve
months ended June 30, 2022, permit the Company's calculation of
certain covenants to be based on Covenant Adjusted EBITDA as
defined, 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.
|
|
(m) 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 (k) and (l) above.
|
|
(n) Free Cash Flow is defined as net
cash provided by (used in) operating activities less capital
expenditures.
|
|
(o) Reflects
capital expenditures during the respective period for park rides,
attractions and maintenance activities.
|
|
(p) Reflects capital expenditures
during the respective period for park expansion, new properties,
revenue and/or expense return on investment ("ROI")
projects.
|
|
(q)
Calculated as total revenues divided by attendance.
|
|
(r)
Calculated as admissions revenue divided by attendance.
|
|
(s)
Calculated as food, merchandise and other revenue divided by
attendance.
|
|
(t) For a
reconciliation of the Company's Adjusted EBITDA for the three and
six months ended June 30, 2019, refer to table above.
|
|
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SOURCE SeaWorld Entertainment, Inc.