ORLANDO,
Fla., Nov. 9, 2022 /PRNewswire/ -- SeaWorld
Entertainment, Inc. (NYSE: SEAS), a leading theme park and
entertainment company, today reported its financial results for the
third quarter and first nine months of fiscal year
2022[1].
Third Quarter 2022 Highlights
- Attendance was 7.3 million guests, an increase of
0.1 million guests or 1.5% from the third quarter of
2021. Compared to the third quarter of 2019, attendance decreased
by 0.8 million guests or 9.7%. Excluding international guest
visitation, group-related attendance, adverse weather impact
(including Hurricane Ian), and calendar shift, attendance increased
by approximately 2% when compared to the third quarter of
2019.
- Total revenue was a record of $565.2
million, an increase of $44.0
million or 8.4% from the third quarter of 2021. Compared to
the third quarter of 2019, total revenue increased by $91.5 million or 19.3%.
- Net income was a record of $134.6
million, an increase of $32.5
million or 31.8% from the third quarter of 2021. Compared to
the third quarter of 2019, net income increased by $36.5 million or 37.3%.
- Adjusted EBITDA[2] was a record of $274.2 million, an increase of $8.9 million or 3.4% from the third quarter
of 2021. Compared to the third quarter of 2019, Adjusted EBITDA
increased by $67.3 million or
32.5%.
- Total revenue per capita[3] increased
6.8% to a record $77.05 from the third quarter of 2021.
Admission per capita[3] increased 4.1% to a record
$42.75, while in-park per
capita spending[3]
increased 10.4% to a record $34.30 from the third quarter of 2021.
Compared to the third quarter of 2019, total revenue per capita
increased 32.1%, admission per capita increased 29.5%, and in-park
per capita spending increased 35.5%.
First Nine Months 2022 Highlights
- Attendance was 17.0 million guests, an increase of 1.8
million guests or 11.5% from the first nine months of 2021.
Compared to the first nine months of 2019, attendance decreased by
0.9 million guests or 5.1%. Excluding international guest
visitation and group-related attendance, attendance increased by
approximately 2.2% when compared to the first nine months of
2019.
- Total revenue was a record of $1,340.7
million, an increase of $207.8
million or 18.3% from the first nine months of 2021.
Compared to the first nine months of 2019, total revenue increased by $240.5 million or 21.9%.
- Net income was a record of $242.2
million, an increase of $57.2
million or 30.9% from the first nine months of 2021.
Compared to the first nine months of 2019, net income increased by
$128.5 million or 113.1%.
- Adjusted EBITDA[2] was a record $574.6 million, an increase of $65.3 million or 12.8% from the first nine months
of 2021. Compared to the first nine months of 2019, Adjusted EBITDA
increased by $201.6 million or
54.0%.
- Total revenue per capita[3] increased 6.2% to a
record $78.86 from the first nine
months of 2021. Admission per capita[3] increased
4.4% to a record $43.52, while
in-park per capita spending[3] increased 8.4% to a record
$35.34 from the first nine months of
2021. Compared to the first nine months of 2019, total
revenue per capita increased 28.5%, admission per capita increased
24.8%, and in-park per capita spending increased 33.3%.
Other Highlights
- The Company repurchased approximately 3.6 million shares of
common stock at a total cost of approximately $183.9 million from August
2022 through October 2022. For
the year-to-date period through October
2022, the Company has repurchased 12.3 million shares of
common stock (or approximately 16% of total shares
outstanding)[4] at a total cost of approximately
$683.9 million.
- In the third quarter of 2022, the Company came to the aid of
229 animals in need in the wild. The total number of animals
the Company has helped over its history is more than 40,000.
"I am happy to report our sixth consecutive quarter of record
financial results," said Marc
Swanson, Chief Executive Officer of SeaWorld Entertainment,
Inc. "While we achieved records for revenue, net income and
Adjusted EBITDA in the quarter, these results still do not reflect
a normalized operating environment and we still have significant
scope to improve our execution and our financial results. We had a
meaningful impact from adverse weather in the quarter, including
Hurricane Ian, that we estimate led to 90,000 less guest visits
during the quarter; international and group visitation are still
not back to pre-Covid levels; our staffing is still not at
optimized levels; and inflationary pressures continue to impact our
costs. We are pleased with the growth in total revenue and total
revenue per capita during the quarter which continued to
demonstrate our pricing power and the strength of consumer spending
in our parks.
____________________________________________
|
[1] Given
results of operations for the first nine 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 COVID-19 pandemic, and restrictions on
international travel, the Company believes a comparison of its
results to the first nine months of 2019 provides a more meaningful
insight on its performance and operating trajectory. The
Company provides a comparison versus both the first nine months of
2019 and 2021 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 and Key Performance Metrics"
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] This
earnings release includes key performance metrics such as total
revenue per capita, admissions per capita and in-park per capita
spending. See "Statement Regarding Non-GAAP Financial
Measures and Key Performance Metrics" section for definitions and
further details.
|
[4] As of
February 22, 2022.
|
Our cost management and the flow-through to Adjusted EBITDA for
the quarter could have been better. To this end, we have enhanced
and increased our efforts related to monitoring and managing costs
throughout the enterprise and our initiatives to reduce costs and
increase efficiencies. As we highlighted last quarter, 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 over the coming quarters. While inflationary
pressures continue to exist, we expect certain cyclical, supply
chain related and/or temporary cost pressures to moderate over the
coming quarters.
We continue to benefit from a very strong financial position and
significant free cash flow generation. This position allowed us to
continue to take advantage of what we believe was an extremely
attractive value being offered by the markets during the quarter as
we continued to aggressively repurchase shares during the third
quarter and have now repurchased 12.3 million shares or 16% of
total shares outstanding[4] year to date.
We recently concluded another successful Halloween season at our
parks featuring our award-winning Halloween events, which led to
strong revenue growth this October compared to October 2021 and October
2019. Revenue for October was up approximately 13%
compared to 2021 and approximately 45% compared to 2019. Over the
next few weeks, we will begin our popular Christmas events at our
SeaWorld, Busch Gardens and Sesame parks. Our Christmas
events feature exciting entertainment, unique food and beverage
offerings and seasonal merchandise for guests of all
ages.
As we have consistently demonstrated, our business model is
strong and resilient, and we believe that we have significant
opportunities to improve and grow our revenue and
profitability. As I've mentioned previously, 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 attendance levels are still below the
total attendance levels we achieved in 2019 and well below our
historical high attendance of approximately 25 million guests
recorded in 2008. We have made significant investments that
we expect will continue to deliver strong returns and we have
specific plans we are executing on today and plans 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," continued
Swanson.
"Looking ahead, we are very excited about our plans for 2023 and
the investments that we have made and will be making that we expect
will drive meaningful growth and new records in revenue and
Adjusted EBITDA," concluded Swanson.
The Company has announced its line-up of new rides, attractions,
events and upgrades, including, something new and meaningful in
every one of its parks. This line-up includes, among
others:
- Pipeline: The Surf Coaster at SeaWorld Orlando
- Serengeti Flyer swing at Busch Gardens Tampa Bay
- Darkoaster straddle coaster at Busch Gardens
Williamsburg
- Arctic Rescue rollercoaster at SeaWorld San Diego
- Catapult Falls flume coaster at SeaWorld San
Antonio
- Riptide Race waterslide at Water Country USA
- a refresh of Laguna Grill at Discovery Cove
The Company's results of operations for the third quarter and
first nine months 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 from historical
levels. Additionally, results of operations for the first
nine 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 severe 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.
Third Quarter 2022 Results
In the third quarter of 2022, the Company hosted approximately
7.3 million guests, generated record total revenue of $565.2 million, record net income of $134.6 million and record Adjusted EBITDA of
$274.2 million. Total attendance for
the quarter increased by 0.1 million, or 1.5%, when compared to the
prior year quarter.
Total revenue for the quarter increased by $44.0 million, or 8.4%, when compared to the
prior year quarter. The revenue improvement was a result of
an increase in total revenue per capita and attendance.
Attendance benefitted largely from an
increase in demand primarily from international guests when
compared to prior year, which was impacted by more severe COVID-19
related restrictions on international travel.
Attendance during the third quarter was also unfavorably
impacted by adverse weather, including the impacts of Hurricane Ian
in September 2022, which led to
closures at the Company's parks in Florida and Virginia for a combined 15 operating days. The
Company estimates adverse weather including the hurricane,
contributed to a decline of approximately 90,000 guests during the
quarter. Compared to the third quarter of 2019, attendance
decreased by 0.8 million guests, or 9.7%, primarily due to a
decline of international guest visitation and group-related
attendance along with a calendar shift and adverse weather,
partially offset by the impact of additional operating days.
Excluding international guest visitation, group-related
attendance, calendar shift and the impact of adverse weather
(including Hurricane Ian), attendance increased by approximately 2%
when compared to the third quarter of 2019.
Admission per capita increased by 4.1% to $42.75, primarily due to the realization of
higher prices in the Company's admission products resulting from
its strategic pricing efforts when compared to the prior year
quarter. In-park per capita spending increased 10.4% to
$34.30. In-park per capita
spending improved 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 other in-park offerings.
Adjusted EBITDA was positively impacted by the increase in
total revenue resulting from improvement in total revenue per
capita and attendance partially offset by an increase in
expenses. The increase in expenses is primarily due to
unusually high inflationary pressures, along with increased
marketing costs and costs associated with new and/or expanded
attractions and events as compared to the prior year quarter, which
were partially offset by structural cost savings initiatives when
compared to the third quarter of 2021.
|
|
Three Months Ended
September 30,
|
|
|
Change
|
|
|
|
2022
|
|
|
2021
|
|
|
%
|
|
(In millions,
except per share and per capita amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$
|
565.2
|
|
|
$
|
521.2
|
|
|
|
8.4
|
%
|
Net income
|
|
$
|
134.6
|
|
|
$
|
102.1
|
|
|
|
31.8
|
%
|
Earnings per share,
diluted
|
|
$
|
1.99
|
|
|
$
|
1.28
|
|
|
|
55.5
|
%
|
Adjusted
EBITDA
|
|
$
|
274.2
|
|
|
$
|
265.3
|
|
|
|
3.4
|
%
|
Net cash provided by
operating activities
|
|
$
|
169.2
|
|
|
$
|
168.4
|
|
|
|
0.5
|
%
|
Attendance
|
|
|
7.3
|
|
|
|
7.2
|
|
|
|
1.5
|
%
|
Total revenue per
capita
|
|
$
|
77.05
|
|
|
$
|
72.13
|
|
|
|
6.8
|
%
|
Admission per
capita
|
|
$
|
42.75
|
|
|
$
|
41.06
|
|
|
|
4.1
|
%
|
In-Park per capita
spending
|
|
$
|
34.30
|
|
|
$
|
31.07
|
|
|
|
10.4
|
%
|
First Nine Months 2022 Results
In the first nine months of 2022, the Company hosted
approximately 17.0 million guests, generated record total revenue
of $1,340.7 million, record net
income of $242.2 million and record
Adjusted EBITDA of $574.6 million.
Total attendance for the first nine months increased by 1.8
million, or 11.5%, when compared to the first nine months of
2021.
Total revenue for the first nine months of 2022 increased by
$207.8 million, or 18.3%, when
compared to the first nine months of 2021. The revenue
improvement was primarily a result of an increase in attendance and
along with an increase in 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 nine 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 more severe
restrictions on international travel. Compared to the first
nine months of 2019, attendance declined primarily due to a decline
from international guest visitation and group-related attendance,
partially offset by the impact of additional operating days when
compared to 2019. Excluding international guest visitation
and group-related attendance, attendance increased by approximately
2.2% when compared to the first nine months of 2019.
Admission per capita increased by 4.4% to $43.52, primarily due to the realization of
higher prices in the Company's admission products resulting from
its strategic pricing efforts, which was partially offset by the
net impact of the admissions product mix when compared to the prior
year period. In-park per capita spending increased 8.4% to
$35.34 due to a combination of
factors including pricing initiatives, improved product quality and
mix and the impact of new or enhanced and/or expanded venues and/or
events or other in-park offerings, partially offset by a higher mix
of pass attendance when compared to the prior year period.
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 costs and the impact of inflationary pressures which
were partially offset by structural cost savings initiatives when
compared to the first nine months of 2021.
|
|
Nine Months Ended
September 30,
|
|
|
Change
|
|
|
|
2022
|
|
|
2021
|
|
|
%
|
|
(In millions,
except per share and per capita amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$
|
1,340.7
|
|
|
$
|
1,132.9
|
|
|
|
18.3
|
%
|
Net income
|
|
$
|
242.2
|
|
|
$
|
185.0
|
|
|
|
30.9
|
%
|
Earnings per share,
diluted
|
|
$
|
3.36
|
|
|
$
|
2.31
|
|
|
|
45.5
|
%
|
Adjusted
EBITDA
|
|
$
|
574.6
|
|
|
$
|
509.3
|
|
|
|
12.8
|
%
|
Net cash provided by
operating activities
|
|
$
|
468.9
|
|
|
$
|
416.4
|
|
|
|
12.6
|
%
|
Attendance
|
|
|
17.0
|
|
|
|
15.2
|
|
|
|
11.5
|
%
|
Total revenue per
capita
|
|
$
|
78.86
|
|
|
$
|
74.29
|
|
|
|
6.2
|
%
|
Admission per
capita
|
|
$
|
43.52
|
|
|
$
|
41.69
|
|
|
|
4.4
|
%
|
In-Park per capita
spending
|
|
$
|
35.34
|
|
|
$
|
32.61
|
|
|
|
8.4
|
%
|
Share Repurchases
The Company repurchased approximately 3.6 million shares of
common stock at a total cost of approximately $183.9 million from August
2022 through October 2022
under its prior share repurchase authorizations. From January 2022 through October 2022, the Company has repurchased
approximately 12.3 million shares of common stock or approximately
16% of total shares
outstanding[4] at a total cost of approximately
$683.9 million.
Leverage and Liquidity
As of September 30, 2022, the
Company's Total Net Leverage Ratio[5] was 2.71x and
total available liquidity was $479.9
million.[6]
Other
As of September 30, 2022, the
Company's current deferred revenue balance was $182.3 million, an increase of approximately 5.1%
when compared to September 30, 2021,
which included the impact of some COVID-19 related product
extensions and one-time items, and an increase of 59.1% when
compared to September 30, 2019.
Rescue Efforts
In the third quarter of 2022, the Company came to the aid of 229
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 hundreds of miles to help ill, injured, orphaned or
abandoned wild animals in need of the Company's expert care, with
the goal of returning them to their natural habitat.
Conference Call
The Company will hold a conference call today, Wednesday, November 9, 2022 at 9 a.m. Eastern Time to discuss its third quarter
and first nine 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
November 9, 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 November 9, 2022 through 11:59 p.m. Eastern Time on November 16, 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 8677683.
___________________________________
|
[5] Total Net Leverage Ratio is a
non-GAAP financial metric defined in the Company's credit agreement
governing its Senior Secured Credit Facilities. See
"Statement Regarding Non-GAAP Financial Measures and Key
Performance Metrics" section for definitions and further
details.
|
|
[6]
Including cash and cash equivalents and undrawn capacity on the
Company's revolving credit facility.
|
Statement Regarding Non-GAAP Financial Measures and Key
Performance Metrics
This earnings release and accompanying financial statement
tables include several non-GAAP financial measures, including
Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow.
Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow are
not recognized terms under GAAP, should not be considered in
isolation or as a substitute for a measure of financial performance
or liquidity prepared in accordance with GAAP and are not
indicative of net income or loss or net cash provided by operating
activities as determined under GAAP.
Adjusted EBITDA, Covenant Adjusted EBITDA, Free Cash Flow and
other non-GAAP financial measures have limitations that should be
considered before using these measures to evaluate a company's
financial performance or liquidity. Adjusted EBITDA, Covenant
Adjusted EBITDA and Free Cash Flow as presented, may not be
comparable to similarly titled measures of other companies due to
varying methods of calculation.
Management believes the presentation of Adjusted EBITDA is
appropriate as it eliminates the effect of certain non-cash and
other items not necessarily indicative of the Company's underlying
operating performance. Management uses Adjusted EBITDA in
connection with certain components of its executive compensation
program. In addition, investors, lenders, financial analysts and
rating agencies have historically used EBITDA-related measures in
the Company's industry, along with other measures, to estimate the
value of a company, to make informed investment decisions and to
evaluate companies in the industry.
Management believes the presentation of Covenant Adjusted EBITDA
for the last twelve months is appropriate as it provides additional
information to investors about the calculation of, and compliance
with, certain financial covenants in the Company's credit agreement
governing its Senior Secured Credit Facilities and the indentures
governing its Senior Notes and First-Priority Senior Secured Notes
(collectively, the "Debt Agreements"). Covenant Adjusted EBITDA is
a material component of these covenants.
Management believes that Free Cash Flow is useful to investors,
equity analysts and rating agencies as a liquidity measure. The
Company uses Free Cash Flow to evaluate its ability to generate
cash flow from business operations. Free Cash Flow does not
represent the residual cash flow available for discretionary
expenditures, as it excludes certain expenditures such as mandatory
debt service requirements, which are significant. Free Cash Flow is
not defined by GAAP and should not be considered in isolation or as
an alternative to net cash provided by (used in) operating,
investing and financing activities or other financial data prepared
in accordance with GAAP. Free Cash Flow as defined above may differ
from similarly titled measures presented by other
companies.
This earnings release includes the Company's Total Net Leverage
Ratio which is a non-GAAP financial metric defined in the Company's
credit agreement governing its Senior Secured Credit Facilities as
total consolidated debt less unrestricted cash divided by Covenant
Adjusted EBITDA for the last twelve month period. Management
believes the presentation of the Total Net Leverage Ratio is
appropriate as it provides additional information to investors
about the calculation of, and compliance with, certain financial
covenants in the Company's Debt Agreements. The Total Net Leverage
Ratio is a material component of these covenants.
This earnings release includes several key performance metrics
including total revenue per capita (defined as total revenue
divided by attendance), admission per capita (defined as admissions
revenue divided by attendance) and in-park per capita spending (defined as food,
merchandise and other revenue divided by attendance). These
performance metrics are used by management to assess the operating
performance of its parks on a per attendee basis and to make
strategic operating decisions. Management believes the
presentation of these performance metrics is useful and relevant
for investors as it provides investors the ability to review
financial performance in the same manner as management and provides
investors with a consistent methodology to analyze revenue between
periods on a per attendee basis. In addition,
investors, lenders, financial analysts and rating agencies have
historically used similar per-capita related performance metrics to
evaluate companies in the industry.
About SeaWorld Entertainment, Inc.
SeaWorld Entertainment, Inc. (NYSE: SEAS) is a leading theme
park and entertainment company providing experiences that matter,
and inspiring guests to protect animals and the wild wonders of our
world. The Company is one of the world's foremost zoological
organizations and a global leader in animal welfare, training,
husbandry and veterinary care. The Company collectively cares for
what it believes is one of the largest zoological collections in
the world and has helped lead advances in the care of animals. The
Company also rescues and rehabilitates marine and terrestrial
animals that are ill, injured, orphaned or abandoned, with the goal
of returning them to the wild. The SeaWorld® rescue team has helped
over 40,000 animals in need over the Company's history.
SeaWorld Entertainment, Inc. owns or licenses a portfolio of
recognized brands including SeaWorld®, Busch Gardens®, Aquatica®,
Sesame Place® and Sea Rescue®. Over its more than 60-year history,
the Company has built a diversified portfolio of 12 destination and
regional theme parks that are grouped in key markets across
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, beliefs,
estimates and projections, and various assumptions, many of which,
by their nature, are inherently uncertain and beyond management's
control. All expectations, beliefs, estimates and projections are
expressed in good faith and the Company believes there is a
reasonable basis for them. However, there can be no assurance that
management's expectations, beliefs, estimates and projections will
result or be achieved and actual results may vary materially from
what is expressed in or indicated by the forward-looking
statements. These forward-looking statements are subject to a
number of risks, uncertainties and other important factors, many of
which are beyond management's control, that could cause actual
results to differ materially from the forward-looking statements
contained in this press release, including among others: the
effects of the global COVID-19 pandemic, or any related mutations
of the virus 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,
including any unfavorable impacts from Federal Reserve interest
rate actions which may influence discretionary spending,
unemployment or the overall economy; various factors beyond the
Company's control adversely affecting attendance and guest spending
at its theme parks, including, but not limited to, weather, natural
disasters, labor shortages, inflationary pressures, supply chain
delays or shortages, foreign exchange rates, consumer confidence,
the potential spread of travel-related health concerns including
pandemics and epidemics (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") matters or related incidents,
including inclusion and diversity matters, the Company's reporting
of such matters, or sustainability ratings could negatively impact
the Company's business and results of operations; a significant
portion of the Company's revenues have historically been generated
in the States of Florida,
California and Virginia, and any risks affecting such
markets, 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 to the Company or its third-party providers,
failure to maintain or protect 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
minimum 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 and interest rate risk; 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 changes 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).
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 September 30,
|
|
|
Change
|
|
|
For the Nine Months
Ended
September 30,
|
|
|
Change
|
|
|
|
2022
|
|
|
2021
|
|
|
$
|
|
|
%
|
|
|
2022
|
|
|
2021
|
|
|
$
|
|
|
%
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions
|
|
$
|
313,574
|
|
|
$
|
296,694
|
|
|
$
|
16,880
|
|
|
|
5.7
|
%
|
|
$
|
739,941
|
|
|
$
|
635,699
|
|
|
$
|
104,242
|
|
|
|
16.4
|
%
|
Food, merchandise and
other
|
|
|
251,633
|
|
|
|
224,512
|
|
|
|
27,121
|
|
|
|
12.1
|
%
|
|
|
600,776
|
|
|
|
497,211
|
|
|
|
103,565
|
|
|
|
20.8
|
%
|
Total
revenues
|
|
|
565,207
|
|
|
|
521,206
|
|
|
|
44,001
|
|
|
|
8.4
|
%
|
|
|
1,340,717
|
|
|
|
1,132,910
|
|
|
|
207,807
|
|
|
|
18.3
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of food,
merchandise and other revenues
|
|
|
41,385
|
|
|
|
37,977
|
|
|
|
3,408
|
|
|
|
9.0
|
%
|
|
|
105,943
|
|
|
|
87,092
|
|
|
|
18,851
|
|
|
|
21.6
|
%
|
Operating expenses
(exclusive of depreciation
and amortization shown separately below)
|
|
|
215,899
|
|
|
|
195,113
|
|
|
|
20,786
|
|
|
|
10.7
|
%
|
|
|
559,320
|
|
|
|
460,192
|
|
|
|
99,128
|
|
|
|
21.5
|
%
|
Selling, general and
administrative expenses
|
|
|
53,082
|
|
|
|
53,617
|
|
|
|
(535)
|
|
|
|
(1.0)
|
%
|
|
|
155,299
|
|
|
|
128,271
|
|
|
|
27,028
|
|
|
|
21.1
|
%
|
Severance and other
separation costs (a)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
ND
|
|
|
|
113
|
|
|
|
1,582
|
|
|
|
(1,469)
|
|
|
|
(92.9)
|
%
|
Depreciation and
amortization
|
|
|
37,216
|
|
|
|
36,306
|
|
|
|
910
|
|
|
|
2.5
|
%
|
|
|
114,379
|
|
|
|
109,111
|
|
|
|
5,268
|
|
|
|
4.8
|
%
|
Total costs and
expenses
|
|
|
347,582
|
|
|
|
323,013
|
|
|
|
24,569
|
|
|
|
7.6
|
%
|
|
|
935,054
|
|
|
|
786,248
|
|
|
|
148,806
|
|
|
|
18.9
|
%
|
Operating
income
|
|
|
217,625
|
|
|
|
198,193
|
|
|
|
19,432
|
|
|
|
9.8
|
%
|
|
|
405,663
|
|
|
|
346,662
|
|
|
|
59,001
|
|
|
|
17.0
|
%
|
Other (income) expense,
net
|
|
|
(66)
|
|
|
|
(39)
|
|
|
|
(27)
|
|
|
|
(69.2)
|
%
|
|
|
(110)
|
|
|
|
156
|
|
|
|
(266)
|
|
|
NM
|
|
Interest
expense
|
|
|
30,556
|
|
|
|
28,372
|
|
|
|
2,184
|
|
|
|
7.7
|
%
|
|
|
82,736
|
|
|
|
90,455
|
|
|
|
(7,719)
|
|
|
|
(8.5)
|
%
|
Loss on early
extinguishment of debt and
write-off of discounts and debt issuance costs
(b)
|
|
|
—
|
|
|
|
58,827
|
|
|
|
(58,827)
|
|
|
NM
|
|
|
|
—
|
|
|
|
58,827
|
|
|
|
(58,827)
|
|
|
NM
|
|
Income before income
taxes
|
|
|
187,135
|
|
|
|
111,033
|
|
|
|
76,102
|
|
|
|
68.5
|
%
|
|
|
323,037
|
|
|
|
197,224
|
|
|
|
125,813
|
|
|
|
63.8
|
%
|
Provision for income
taxes
|
|
|
52,578
|
|
|
|
8,936
|
|
|
|
43,642
|
|
|
NM
|
|
|
|
80,857
|
|
|
|
12,249
|
|
|
|
68,608
|
|
|
NM
|
|
Net
income
|
|
$
|
134,557
|
|
|
$
|
102,097
|
|
|
$
|
32,460
|
|
|
|
31.8
|
%
|
|
$
|
242,180
|
|
|
$
|
184,975
|
|
|
$
|
57,205
|
|
|
|
30.9
|
%
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
basic
|
|
$
|
2.00
|
|
|
$
|
1.29
|
|
|
|
|
|
|
|
|
|
|
$
|
3.39
|
|
|
$
|
2.35
|
|
|
|
|
|
|
|
|
|
Earnings per share,
diluted
|
|
$
|
1.99
|
|
|
$
|
1.28
|
|
|
|
|
|
|
|
|
|
|
$
|
3.36
|
|
|
$
|
2.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
67,176
|
|
|
|
78,962
|
|
|
|
|
|
|
|
|
|
|
|
71,450
|
|
|
|
78,804
|
|
|
|
|
|
|
|
|
|
Diluted
(c)
|
|
|
67,569
|
|
|
|
79,950
|
|
|
|
|
|
|
|
|
|
|
|
72,130
|
|
|
|
80,065
|
|
|
|
|
|
|
|
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In
thousands)
|
|
|
|
For the Three Months
Ended
September 30,
|
|
|
For the Nine Months
Ended
September 30,
|
|
|
Last Twelve
Months
Ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2019
|
|
|
2022
|
|
|
2021
|
|
|
2019
|
|
|
2022
|
|
Net
income
|
|
$
|
134,557
|
|
|
$
|
102,097
|
|
|
$
|
98,028
|
|
|
$
|
242,180
|
|
|
$
|
184,975
|
|
|
$
|
113,659
|
|
|
$
|
313,718
|
|
Provision for income
taxes
|
|
|
52,578
|
|
|
|
8,936
|
|
|
|
34,123
|
|
|
|
80,857
|
|
|
|
12,249
|
|
|
|
40,905
|
|
|
|
68,444
|
|
Loss on early
extinguishment of debt and write-off of
discounts and debt issuance costs (b)
|
|
|
—
|
|
|
|
58,827
|
|
|
|
—
|
|
|
|
—
|
|
|
|
58,827
|
|
|
|
—
|
|
|
|
—
|
|
Interest
expense
|
|
|
30,556
|
|
|
|
28,372
|
|
|
|
21,463
|
|
|
|
82,736
|
|
|
|
90,455
|
|
|
|
64,063
|
|
|
|
108,923
|
|
Depreciation and
amortization
|
|
|
37,216
|
|
|
|
36,306
|
|
|
|
40,822
|
|
|
|
114,379
|
|
|
|
109,111
|
|
|
|
120,325
|
|
|
|
153,928
|
|
Equity-based
compensation expense (d)
|
|
|
4,472
|
|
|
|
13,076
|
|
|
|
1,162
|
|
|
|
15,554
|
|
|
|
24,331
|
|
|
|
8,444
|
|
|
|
32,241
|
|
Loss on impairment or
disposal of assets and certain
non-cash expenses (e)
|
|
|
3,540
|
|
|
|
1,291
|
|
|
|
1,425
|
|
|
|
12,555
|
|
|
|
4,978
|
|
|
|
2,217
|
|
|
|
14,676
|
|
Business optimization,
development and strategic
initiative costs (f)
|
|
|
4,656
|
|
|
|
2,307
|
|
|
|
9,270
|
|
|
|
14,050
|
|
|
|
5,654
|
|
|
|
18,262
|
|
|
|
17,155
|
|
Certain investment
costs and other taxes (g)
|
|
|
53
|
|
|
|
56
|
|
|
|
468
|
|
|
|
1,053
|
|
|
|
472
|
|
|
|
4,930
|
|
|
|
1,411
|
|
COVID-19 related
incremental costs (h)
|
|
|
4,957
|
|
|
|
13,560
|
|
|
|
—
|
|
|
|
5,930
|
|
|
|
17,928
|
|
|
|
—
|
|
|
|
10,564
|
|
Other adjusting items
(i)
|
|
|
1,598
|
|
|
|
451
|
|
|
|
136
|
|
|
|
5,275
|
|
|
|
304
|
|
|
|
182
|
|
|
|
6,273
|
|
Adjusted EBITDA
(j)
|
|
$
|
274,183
|
|
|
$
|
265,279
|
|
|
$
|
206,897
|
|
|
$
|
574,569
|
|
|
$
|
509,284
|
|
|
$
|
372,987
|
|
|
$
|
727,333
|
|
Items added back to
Covenant Adjusted EBITDA as
defined in the Debt Agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated cost savings
(k)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,000
|
|
Other adjustments as
defined in the Debt Agreements
(l)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,561
|
|
Covenant Adjusted
EBITDA (m)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
748,894
|
|
|
|
For the Three Months
Ended
September 30,
|
|
|
For the Nine Months
Ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2019
|
|
|
2022
|
|
|
2021
|
|
|
2019
|
|
Net cash provided by
operating activities
|
|
$
|
169,240
|
|
|
$
|
168,359
|
|
|
$
|
146,297
|
|
|
$
|
468,874
|
|
|
$
|
416,437
|
|
|
$
|
313,683
|
|
Capital
expenditures
|
|
|
49,681
|
|
|
|
28,610
|
|
|
|
40,142
|
|
|
|
150,729
|
|
|
|
73,591
|
|
|
|
152,880
|
|
Free Cash Flow
(n)
|
|
$
|
119,559
|
|
|
$
|
139,749
|
|
|
$
|
106,155
|
|
|
$
|
318,145
|
|
|
$
|
342,846
|
|
|
$
|
160,803
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED BALANCE
SHEET DATA (In thousands)
|
|
|
|
As of September
30,
2022
|
|
|
As of December
31,
2021
|
|
Cash and cash
equivalents
|
|
$
|
109,572
|
|
|
$
|
443,707
|
|
Total assets
|
|
$
|
2,355,488
|
|
|
$
|
2,610,316
|
|
Deferred
revenue
|
|
$
|
182,267
|
|
|
$
|
154,793
|
|
Long-term debt,
including current maturities:
|
|
|
|
|
|
|
|
|
Term B Loans
|
|
|
1,188,000
|
|
|
|
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
|
|
$
|
2,140,500
|
|
|
$
|
2,149,500
|
|
Total
stockholders' deficit
|
|
$
|
(420,302)
|
|
|
$
|
(33,916)
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED CAPITAL
EXPENDITURES DATA (In thousands)
|
|
|
|
For the Nine Months
Ended
September 30,
|
|
|
Change
|
|
|
|
|
2022
|
|
|
2021
|
|
|
$
|
|
|
%
|
|
|
Capital
Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
(o)
|
|
$
|
100,197
|
|
|
$
|
44,046
|
|
|
$
|
56,151
|
|
|
|
127.5
|
%
|
|
Expansion/ROI projects
(p)
|
|
|
50,532
|
|
|
|
29,545
|
|
|
|
20,987
|
|
|
|
71.0
|
%
|
|
Capital expenditures,
total
|
|
$
|
150,729
|
|
|
$
|
73,591
|
|
|
$
|
77,138
|
|
|
|
104.8
|
%
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED OTHER
DATA (In thousands, except per capita
amounts)
|
|
|
|
For the Three
Months Ended
September 30,
|
|
|
Change
|
|
|
For the Nine
Months
Ended September 30,
|
|
|
Change
|
|
|
|
2022
|
|
|
2021
|
|
|
#
|
|
|
%
|
|
|
2022
|
|
|
2021
|
|
|
#
|
|
|
%
|
|
Attendance
|
|
|
7,336
|
|
|
|
7,226
|
|
|
|
110
|
|
|
|
1.5
|
%
|
|
|
17,002
|
|
|
|
15,250
|
|
|
|
1,752
|
|
|
|
11.5
|
%
|
Total revenue per
capita (q)
|
|
$
|
77.05
|
|
|
$
|
72.13
|
|
|
$
|
4.92
|
|
|
|
6.8
|
%
|
|
$
|
78.86
|
|
|
$
|
74.29
|
|
|
$
|
4.57
|
|
|
|
6.2
|
%
|
Admission per capita
(r)
|
|
$
|
42.75
|
|
|
$
|
41.06
|
|
|
$
|
1.69
|
|
|
|
4.1
|
%
|
|
$
|
43.52
|
|
|
$
|
41.69
|
|
|
$
|
1.83
|
|
|
|
4.4
|
%
|
In-Park per capita
spending (s)
|
|
$
|
34.30
|
|
|
$
|
31.07
|
|
|
$
|
3.23
|
|
|
|
10.4
|
%
|
|
$
|
35.34
|
|
|
$
|
32.61
|
|
|
$
|
2.73
|
|
|
|
8.4
|
%
|
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 September 30,
|
|
|
Change
|
|
|
For the Nine Months
Ended
September 30,
|
|
|
Change
|
|
|
|
2022
|
|
|
2019
|
|
|
#
|
|
|
%
|
|
|
2022
|
|
|
2019
|
|
|
#
|
|
|
%
|
|
Total
revenues
|
|
$
|
565,207
|
|
|
$
|
473,666
|
|
|
$
|
91,541
|
|
|
|
19.3
|
%
|
|
$
|
1,340,717
|
|
|
$
|
1,100,233
|
|
|
$
|
240,484
|
|
|
|
21.9
|
%
|
Net income
|
|
$
|
134,557
|
|
|
$
|
98,028
|
|
|
$
|
36,529
|
|
|
|
37.3
|
%
|
|
$
|
242,180
|
|
|
$
|
113,659
|
|
|
$
|
128,521
|
|
|
|
113.1
|
%
|
Net income per share,
diluted
|
|
$
|
1.99
|
|
|
$
|
1.24
|
|
|
$
|
0.75
|
|
|
|
60.5
|
%
|
|
$
|
3.36
|
|
|
$
|
1.39
|
|
|
$
|
1.97
|
|
|
|
141.7
|
%
|
Adjusted EBITDA
(t)
|
|
$
|
274,183
|
|
|
$
|
206,897
|
|
|
$
|
67,286
|
|
|
|
32.5
|
%
|
|
$
|
574,569
|
|
|
$
|
372,987
|
|
|
$
|
201,582
|
|
|
|
54.0
|
%
|
Net cash provided by
operating
activities
|
|
$
|
169,240
|
|
|
$
|
146,297
|
|
|
$
|
22,943
|
|
|
|
15.7
|
%
|
|
$
|
468,874
|
|
|
$
|
313,683
|
|
|
$
|
155,191
|
|
|
|
49.5
|
%
|
Attendance
|
|
|
7,336
|
|
|
|
8,123
|
|
|
|
(787)
|
|
|
|
(9.7)
|
%
|
|
|
17,002
|
|
|
|
17,925
|
|
|
|
(923)
|
|
|
|
(5.1)
|
%
|
Total revenue per
capita
|
|
$
|
77.05
|
|
|
$
|
58.31
|
|
|
$
|
18.74
|
|
|
|
32.1
|
%
|
|
$
|
78.86
|
|
|
$
|
61.38
|
|
|
$
|
17.48
|
|
|
|
28.5
|
%
|
Admission per
capita
|
|
$
|
42.74
|
|
|
$
|
33.00
|
|
|
$
|
9.74
|
|
|
|
29.5
|
%
|
|
$
|
43.52
|
|
|
$
|
34.86
|
|
|
$
|
8.66
|
|
|
|
24.8
|
%
|
In-Park per capita
spending
|
|
$
|
34.30
|
|
|
$
|
25.31
|
|
|
$
|
8.99
|
|
|
|
35.5
|
%
|
|
$
|
35.34
|
|
|
$
|
26.52
|
|
|
$
|
8.82
|
|
|
|
33.3
|
%
|
NM-Not
meaningful.
|
|
(a) Reflects
restructuring and other separation costs.
|
|
(b) 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.
|
|
(c) During
the three and nine months ended September 30, 2022, there were
approximately 328,000 and 246,000 anti-dilutive shares excluded
from the computation of diluted earnings per share,
respectively. During the three and nine months ended September
30, 2021, there were approximately 178,000 and 143,000
anti-dilutive shares excluded from the computation of diluted
earnings per share, respectively.
|
|
(d) Reflects
non-cash equity compensation expenses and related payroll taxes
associated with grants of equity-based compensation. For the
three and nine months ended September 30, 2021 and twelve months
ended September 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. Includes
approximately $2.6 million for the three months ended September 30,
2022 and approximately $6.5 million for the nine and twelve months
ended September 30, 2022 related to non-cash self-insurance reserve
adjustments.
|
|
(f) For the
three and nine months ended September 30, 2022, reflects business
optimization, development and other strategic initiative costs
primarily related to: (i) $2.5 million and $7.6 million,
respectively of third-party consulting costs and (ii) $1.8 million
and $5.6 million, respectively of other business optimization costs
and strategic initiative costs.
|
|
For the three and nine
months ended September 30, 2021, reflects business optimization,
development and other strategic initiative costs primarily related
to: (i) $1.7 million and $2.2 million, respectively of third-party
consulting costs; (ii) $1.6 million of severance and other
separation costs in the nine months ended September 30, 2021
associated with positions eliminated and (iii) $1.0 million and
$2.1 million, respectively of other business optimization costs and
strategic initiative costs.
|
|
For the three and nine
months ended September 30, 2019, reflects business optimization,
development and other strategic initiative costs primarily related
to: (i) $6.5 million and $12.5 million, respectively, of third
party consulting costs and (ii) $1.2 million and $3.8 million,
respectively, of severance and other employment costs primarily
associated with positions eliminated.
|
|
For the twelve months
ended September 30, 2022, reflects business optimization,
development and other strategic initiative costs primarily related
to: (i) $9.7 million of third-party consulting costs and (ii) $6.6
million of other business optimization costs and strategic
initiative costs.
|
|
(g) For the
nine months ended September 30, 2019, includes approximately $4.3
million relating to expenses associated with the previously
disclosed equity transaction.
|
|
(h) For the
three, nine and twelve months ended September 30, 2022, includes
approximately $4.1 million of certain legal matters related to the
temporary COVID-19 park closures. For the twelve months ended
September 30, 2022, also includes approximately $3.1 million of
certain incremental, nonrecurring, temporary incentives paid to
attract employees to return or remain in the workforce during the
COVID-19 related environment and approximately $1.7 million of
contract termination or modification costs related to impacts from
the temporary COVID-19 park closures.
|
|
For the three and nine
months ended September 30, 2021, includes approximately $9.2
million and $10.4 million, respectively, of nonrecurring
contractual liabilities and legal costs impacted by the temporary
COVID-19 park closures and approximately $4.1 million and $6.9
million, respectively, 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. Includes approximately $3.6 million for
the nine and twelve months ended September 30, 2022 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 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 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 nine months
ended September 30, 2019, refer to table above.
|
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SOURCE SeaWorld Entertainment, Inc.