On November 7, 2024, United Parks & Resorts Inc (PRKS, Financial) released its 8-K filing detailing the financial results for the third quarter and first nine months of fiscal year 2024. The company, a prominent player in the U.S. leisure industry, operates theme parks under well-known brands such as SeaWorld, Busch Gardens, and Sesame Place, generating most of its revenue from admission ticket sales.
Third Quarter Financial Performance
During the third quarter of 2024, United Parks & Resorts Inc (PRKS, Financial) experienced a slight decline in both attendance and revenue. Attendance fell by 1.4% to 7.0 million guests, while total revenue decreased by 0.4% to $545.9 million compared to the same period in 2023. Net income also saw a reduction of 3.1%, amounting to $119.7 million. The company attributed these declines primarily to adverse weather conditions, including Hurricanes Debby and Helene, which impacted peak visitation periods.
Revenue and Spending Metrics
Despite the overall decline in revenue, the company reported a 1.0% increase in total revenue per capita, reaching $77.66. This was driven by a 0.5% rise in admission per capita to $42.24 and a 1.6% increase in in-park per capita spending to a record $35.42. These metrics are crucial as they reflect the company's ability to enhance visitor spending, a key performance indicator in the travel and leisure industry.
First Nine Months of 2024 Highlights
For the first nine months of 2024, United Parks & Resorts Inc (PRKS, Financial) reported a slight increase in attendance by 0.1% to 16.7 million guests. Total revenue reached a record $1,340.9 million, marking a 0.2% increase from the previous year. Net income rose by 2.8% to $199.6 million, showcasing the company's resilience despite weather-related challenges. However, Adjusted EBITDA decreased by 1.3% to $555.7 million.
Strategic Financial Moves and Share Repurchases
In a strategic move to strengthen its financial position, the company increased its revolving credit facility from $390 million to $700 million, reducing the cost of funds by 50 basis points. Additionally, United Parks & Resorts Inc (PRKS, Financial) repurchased 4.9 million shares, representing over 8% of its total outstanding shares, demonstrating a commitment to returning capital to shareholders.
Operational Challenges and Future Outlook
The company faced significant operational challenges due to adverse weather conditions, which led to a decrease in attendance. However, CEO Marc Swanson expressed optimism, stating,
We continue to see strong demand for our parks during normalized operating conditions and we are growing total revenue per capita."Looking ahead, the company is optimistic about its upcoming Christmas events and new attractions planned for 2025, which are expected to drive future growth.
Financial Summary Table
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $545.9 million | $548.2 million | -0.4% |
| Net Income | $119.7 million | $123.6 million | -3.1% |
| Adjusted EBITDA | $258.4 million | $266.4 million | -3.0% |
| Attendance | 7.0 million | 7.1 million | -1.4% |
| Total Revenue Per Capita | $77.66 | $76.90 | 1.0% |
Conclusion
United Parks & Resorts Inc (PRKS, Financial) navigated a challenging third quarter with a slight decline in revenue and attendance due to adverse weather conditions. However, the company demonstrated resilience through strategic financial maneuvers and increased per capita spending. As it looks forward to the holiday season and new attractions in 2025, the company remains optimistic about its growth prospects in the competitive travel and leisure industry.
Explore the complete 8-K earnings release (here) from United Parks & Resorts Inc for further details.
