On August 7, 2024, United Parks & Resorts Inc (PRKS, Financial) released its 8-K filing detailing the financial results for the second quarter and first six months of fiscal year 2024. United Parks & Resorts Inc operates in the United States leisure industry, primarily through the operation of theme parks and entertainment facilities under brands such as SeaWorld, Busch Gardens, Aquatica, Discovery Cove, and Sesame Place.
Second Quarter 2024 Highlights
United Parks & Resorts Inc (PRKS, Financial) reported a slight increase in attendance and revenue for the second quarter of 2024. Key highlights include:
- Attendance reached 6.2 million guests, up by 0.8% from the same period in 2023.
- Total revenue was $497.6 million, a 0.3% increase from the second quarter of 2023.
- Net income rose by 4.7% to $91.1 million.
- Adjusted EBITDA decreased by 2.7% to $218.2 million.
- Total revenue per capita decreased by 0.4% to $80.44.
First Six Months 2024 Highlights
For the first six months of 2024, the company also saw growth in several key metrics:
- Attendance was 9.6 million guests, a 1.3% increase from the first six months of 2023.
- Total revenue reached a record $795.0 million, up by 0.7% from the same period in 2023.
- Net income increased by 13.2% to $79.9 million.
- Adjusted EBITDA rose slightly by 0.2% to $297.3 million.
- Total revenue per capita decreased by 0.5% to $82.50.
Financial Performance and Challenges
The increase in attendance and revenue is a positive indicator of the company's ability to attract more visitors despite challenges such as adverse weather conditions. However, the modest decline in total revenue per capita and adjusted EBITDA highlights areas where the company faces challenges. The decrease in admissions per capita, primarily due to lower pricing on certain promotional admission products, was partially offset by an increase in in-park per capita spending.
Key Financial Metrics
Important financial metrics from the income statement, balance sheet, and cash flow statement include:
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total Revenues | $497.6 million | $496.0 million | 0.3% |
| Net Income | $91.1 million | $87.1 million | 4.7% |
| Adjusted EBITDA | $218.2 million | $224.2 million | -2.7% |
| Attendance | 6.2 million | 6.1 million | 0.8% |
| Total Revenue Per Capita | $80.44 | $80.80 | -0.4% |
Share Repurchases and Rescue Efforts
During the second quarter, United Parks & Resorts Inc repurchased 4.1 million shares for approximately $213.4 million, leaving $286.6 million remaining under the Share Repurchase Program. Additionally, the company aided 215 animals in need, bringing the total number of animals helped to over 41,000.
Management Commentary
"We are pleased to report another quarter of strong financial results," said Marc Swanson, Chief Executive Officer of United Parks & Resorts Inc. "We grew attendance and revenue during the quarter despite not seeing any material improvement in weather during the quarter compared to prior year. We also achieved a record level for in-park per capita spending which is a testament to the continued success of our strategies and investments in this area."
Conclusion
United Parks & Resorts Inc (PRKS, Financial) has demonstrated resilience and growth in key areas despite facing challenges. The company's ability to increase attendance and revenue, coupled with strategic share repurchases and animal rescue efforts, underscores its commitment to operational excellence and shareholder value. Investors and stakeholders will be keen to see how the company navigates the remainder of the fiscal year.
Explore the complete 8-K earnings release (here) from United Parks & Resorts Inc for further details.
