United Parks & Resorts (PRKS) 9 May 232023 Q1 Earnings call transcript

Hello, and welcome to SeaWorld's First Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Matthew Stroud, Investor Relations. Please go ahead.

morning, good and you, everyone. Thank first Welcome earnings call. XXXX to SeaWorld's conference quarter and is call being recorded. Today's webcast A press issued Investor release was Relations on is website our available at www.seaworldinvestors.com. this morning and in this can be for on following website call. our release information Replay available be found and the call will the press

open Joining then first and call Officer; morning Treasurer. the Jim me we Marc we quarter Interim questions. Forrester, will Executive morning Chief are our financial This and results Chief will this review your to Swanson, and Financial up Officer

Before our we of number the are forward-looking the begin, everyone I statements would like a of comments statements risks to remind and meaning Federal that These to contain Securities materially identified from including uncertainties laws. the filed today that of different statements, Securities will subject and cause within Form section Factors XX-Q Exchange be in Risk Annual reports Commission. forward-looking those Report our on with and quarterly XX-K those results actual Form the on to could

These be updated the to forward-looking in available be update time risk undertake obligation factors will on to our with are that no SEC any may website. time included We filings statements. and our from

metrics on reference release filings and regarding In comparable earnings be found measure we on and call, measures the other our adjusted non-GAAP statements our to and financial in forward-looking website is with the in available free most our GAAP as may can the and measures financial cash SEC. addition, flow. information included such EBITDA non-GAAP our More also reconciliations of

Executive to call Officer, Marc? Swanson. our like to the Chief turn would I Now, Marc over

thank and everyone, morning, for you Good Matthew. joining you, us. Thank

XX our market despite our of rides. first of only across and we quarter another attractions open. our the two number a timing opening quarter, out in weather new opened, report adverse the California shift markets, of our the quarter rides a we first particularly of had had year attractions new the of to record this financial rides XXXX, our new and of pleased of XX seven results in and while in We're In

eighth our anticipate our ongoing summer ambassadors generated we be have prepare what season. we financial another want marks their This where efforts busy results. consecutive as to for I will quarter we thank for record

drive We consumer capita the parks. strategies, effectiveness quarter to our growth strength in continue in spending the our the in of per our spending power, total of and demonstrating pricing revenue

ahead attractions, of Looking ahead, very we by our of most and which which several forward our are are excited them of of XXXX we weeks. and some booking well events, the are are of opening most rides rides, to group coming new of encouraged and trends about the really in running XXXX lineup looking XXXX anticipated

we first park also SeaWorld of in thrilled United On branded the Dhabi States Abu are international the for SeaWorld and opening the of front, Park May the fourth the on outside XXXX. XX,

branded very are introducing project Park, of this of are Abu XX SeaWorld and our park introducing world wonders along of with a in proud SeaWorld region new built the first excited We about the the in years. and SeaWorld a next-generation new to partners Dhabi

sea. square aquarium, multi-species custom-built complexity, world's the that and showcase and animals, eight the indoor SeaWorld realms meters feature is the park of XXX,XXX marine will approximately a beauty XXX,XXX Abu that largest under Dhabi life almost different over entirely interconnectivity,

by we I venue, excited and on some a display. and the park and more I have facility, the animals time staff, world-class and spent could this It's the one-of-a-kind, see this are of impressed to not visiting been open. attractions really course last month

Dhabi park we more and As information partner a reminder, with arrangement the share this once licensing our a operating. Abu is is will in

to most anticipated as USA the Gardens rides, Today. events, four Serengeti XX XXXX, according feet as takes attractions, company new riders and of coasters ranging the Busch and a upgrades, up Screaming miles -- that of tallest world's per including Swing February, speeds lineup to XXX XXXX, opened has reaching In the Tampa speeds For of the Flyer, exciting fastest hour. truly roller

San newly expanded Kata's a -- opened shade private and with foot all-new Kookaburra multi elements, cabanas, and a water square March, structures. Aquatica play upgraded unique In splashpad and Cove, fully-themed waterspouts, Antonio area X,XXX multiple multiple shade

sensation moments open position surf first-of-its-kind Coaster, This and in that miles month, to surfing rise XX mimic Pipeline, the a SeaWorld curl Orlando The and wave innovative riders to wave. coaster an a per with inversion. through five will seats the will airtime Surf of coaster, riding fall accelerate The hour

open riders through where XX hour over coaster Busch track. of all-indoor DarKoaster, will Gardens feet first straddle experience at four speeds launches miles per X,XXX America the Williamsburg to in North up

Aquatica bottles will water water Orlando and spraying umbrellas, Kid play buckets, spraying Turi's water Cove, will buckets, featuring tipping an Ernie's play area tower. And bobbles, Bert Place featuring jets, Philadelphia open water and palms, tipping water Sesame water spraying Splashy Shores, watering open a area all-new a more. jets, &

this SeaWorld to that the open at Coast coaster takes speeds miles per XX and hour. will San Later Diego West Rescue, longest through fastest riders the spring straddle on up and summer, launches Arctic three

Diego expanded tipping Water open Splash three pipeline play slides, which and Castle, water Country water play four over enhanced Race, XXX USA water and buckets, dueling structure the area features will Place Riptide slide The play in elements. open and San an other Virginia, will Sesame first Count's

flume flume flume Catapult finally, And features will Texas. world's open lift world's anticipate only launched vertical the Antonio steepest in that flume coaster the the with first a North we America's Falls, San drop, SeaWorld tallest drop and

a Now, brief let give initiatives. update strategic our of on some me

million. progressing organize and us target for labor and efficiently, expenses. end unnecessary continues internal team source The cost eliminate to work efficiency and/or savings redundant pace dedicated $XX and we technology, $XX on and replace find with to of are high related a our specialized to to is team well million more ways capital with at our and our outside deliver the and cost consultants First, of

our us we are front, in out transformation about CRM, for improve guests infancy ultimately and more which more still -- build see having and members our our On digital CRM opportunities rollout upside app. the to see and really able mobile we their engage offerings. capabilities being and continue messages to on tailor data rich and Second, effectively past and behavior analyze we

On app, the mobile our we about are today. excited performance

than app, Our by recently is an being rolled our in number million used guests out been which parks times. downloaded X has of and increasing more

at of of revenue year, year. compared generated target restaurants. As Mobile over is of up and number higher XX% had active been our XX% to operating over app the orders approximately XX% the prior prior compared April, XXX% total of is has have average and ordering to is order Mobile end expanded users to compared additional the to orders. the restaurants non-mobile now a volume on

ordering are continue these and with mobile to experience we expand portfolio. app functionality we across While results, see early additional happy the and improve our from upside to capability continuing

excited revenue, the in-park decreases We the the increases and app in guest to drive costs. of are about ability in potential experience, and its improve

infrastructure and and our Third, guest improving have the decreased incremental beverage as ROI we revenue and and offering, increased around an park our investments food to in generally experience expanding, know, through in you strategically and/or and parks this facilities. enhancing, improving effort journey our cost specific year retail drive and aesthetics, parks

these course and of will the began the Many the summer opening as and/or we our see of will guests the move improvements be others venues these into of the to season we really experience benefits opening We're new year. improved rest over of new important venues excited be enhanced and for to the investments. and

coming Fourth, of share on expect other more already coming and opening international the discussed, to continue SeaWorld have with discussions Abu Dhabi the in to quarters. good as on make related are to to front, thrilled progress opportunities and have I international we

also expect on make plans Fifth, we with second that quarter, in communicated we have XXXX to by hotel last first open progress as continue last the our our front, followed quarter, hotel in hotel our and we XXXX. discussed to

additional on on-site selection hotels park We across those two our and working are planning and hotels design for for portfolio.

we to forward value what look much the investments experience, more be and very creating sharing enterprise. quarters on we about an Very and and exciting guest projects. revenue, future have really significant the business making profitable many more in that improve We and initiatives will we more efficient underway us generate specifics the to expect us are make excited we allow more our expect across to

building an and we operational and business are that financial results resilient in shareholder We stronger increases deliver even will more are improved meaningful value. and confident

strong. be Let me our which balance to sheet, on briefly continues comment

flow. is XX, where Our the our liquidity, in available leverage $XXX.X balance starting sheet total we generate of cash majority the approximately on of including had XXXX $XX.X ratio advance our X.X times million us we cash season million March of total of net summer and

allocate flexibility have with confidence and attraction the and deliver that upgrades underway of high sheet Despite goal opportunistically we're balance strong, our times continue is our financial and the grow strong living shareholders. This that gives invest for capital with quarter results, us to is our maximize along business resilient, and in to to business uncertain the first in improved new other and initiatives meaningful us in coming our opening position new lineup, park venues, we the XXXX. long-term to in value give and EBITDA records ride our of adjusted all the revenue continue ability of and event for to our and and opening and growth enhancements, to

Jim? detail. will With our results more in that, discuss Jim financial

and you, Marc, morning, good everyone. Thank

good for quarter. to another with you It's be back

in During $XX.X increase revenue to decrease The an of the quarter of increase X.X% revenue quarter, attendance first by an $XXX.X partially was of per in when increase total million, capita we million of X.X%. a the first total or record X.X%, due offset of compared XXXX. in to generated revenue

markets, also attraction a in The new during to rides in Attendance the California compared impacted peak weather adverse primarily XXXX. was our timing likely particularly due of visitation of decrease and at periods. was number to our including unfavorably parks, across XXXX by openings attendance

to per revenue of first by capita Admission compared product X.X% This resulting quarter and driven of per realized pricing $XX.XX record continue of Our the spending. first to increased X.X% total per in increased $XX.XX $XX.XX admissions drive capita in-park record the in quarter a to increase of higher first the per in by XXXX by to spending in-park a $XX.XX XXXX. pricing and capita both and capita to quarter in capita compared was quarter record XXXX. the improvements in strategies per

impact the spending an capita prices increase in product primarily quarter admissions with first the of due to net of of efforts improved agreements, services strategic to increase higher the resulting the to mix in pricing in pricing along from due the international admissions was our compared projects prior-year compared and with quarter. XXXX. along primarily revenue to company's per impact related to the when In-park capita initiatives our products, per the admission when of realization The

increase Operating million services $XX.X labor-related expenses to due costs of more partially optimal XXXX. in initiatives operating to quarter legal increase The disclosed compared due increased costs when in staffing, XXXX. first agreements, including structural when the compared is million an or to in the quarter approximately our temporary and costs, offset cost increase an to increased savings related expenses associated XX.X% by primarily COVID-XX park the closures, international to previously with of $X.X first

X.X% costs cost primarily marketing-related $X.X to Selling, administrative decreased due along one-time The first of quarter in is partially and costs or to million expenses by in initiatives. general efficiency and $X.X including third-party a offset $X.X administrative costs increase of and million XXXX. expenses increase the selling, impact million, savings increased general the with of consulting compared

EBITDA generated for million, in a we the million of an loss compared of lowest million XXXX. the first the quarter $X.X first a And of when generated the second increase We for net first compared quarter, of ever of million to quarter of the XXXX. quarter adjusted loss first net to $XX.X record $X $XX.X

an adjusted in to first revenue partially of quarter increase of total by offset the by was an improvement XXXX for primarily in EBITDA expenses per XXXX. The capita, quarter first in driven compared the when increase

Now turning to our balance sheet.

end of our quarter the which increase products of Our of X.X% teacher, of year April Fun $XXX.X April the million, was XXXX. preschool current and when of at Card, as base includes levels deferred compared XXXX. premium, an approximately pass this time down balance March XXXX, to near-record all the approximately first and was only end for to X% accounting of revenue of At pass compared

advertising positioned status well current new coming and most attractions opening of pass peak the and with our of with season weeks We approaching. and in rides base the our feel selling the

continue that are to year. We also on quite products compared pleased our realize price double-digit we to pass increases prior

position. As Marc have strong mentioned, very balance we a sheet

from and cash million was million flow revolving facility. liquidity XXXX. quarter credit million As the available total was first sheet million of $XX.X of March including for $XXX.X on $XX.X equivalents on Cash our and of cash XX, balance $XXX.X operations XXXX, available our our

which We CapEx was was spent $XX.X CapEx expansion $XX.X projects. first approximately of and the $XX.X million in quarter million approximately and/or of million XXXX, on on ROI core on

solidified, For $XX projects. million our completion investment CapEx high-conviction timelines growth to have to CapEx. on of we $XXX between spend million We to on XXXX and and as million $XXX refined expect and spend plan million ROI estimates approximately $XXX core been

In total, approximately we to in still CapEx million expect XXXX. $XXX $XXX to for spend million

and results. to We through our to from benefits excited sincerely ability make investments are look forward the about flowing and high-confidence to our returns financial these these ROI investments

share Now, final call let me turn who thoughts. will the some over to Marc? Marc back

Thank you, Jim.

in came closing aid over XX,XXX we animals some we we the more. open Over dolphins, call our to helped manatees, to of comments. first animals bottlenose In the turtles, lions, Before the quarter sea seals, XX questions, sharks, sea XXXX need. history, and including birds, of have I have your

underscore for once for of to call assets they in proud Orlando I our Water parks Also, the continued thank our and want Best really enthusiasm some team's of awards to States. rescue want and USA readers recent ambassadors do all all them hard United I'm as again the Aquatica operate out important work to the which received Today to voted some the I of our efforts. parks our the these parks. and for dedication their quality Outdoor experiences. and Park our

Mako the Fyre Irish Orlando the Celtic coaster voted voted best SeaWorld Antonio dancing have San non-roller Tidal ride, Busch park in States. step at Surge and the as best the at Roller as at voted as theme They Coaster roller have entertainment. best SeaWorld live they Gardens, coaster They have Williamsburg United the

roller the in San in Top in XX Gardens best for the Tampa XX at Outdoor and the XX coaster Tampa Williamsburg parks Water Adventure Orlando, at Busch theme Diego roller Emperor for also placed United for the in The Gwazi in Island placed coaster SeaWorld all Williamsburg Top also United Tampa Water States, Busch Busch States. coasters Gardens in and in Additionally, Gardens Bay, the Iron SeaWorld in United placed USA while the Parks Best the roller Top and best Country Bay States.

recognition of from parks our USA are very kind We receiving are this proud that of Today. readers

attractions, and an coming start excited offerings lineup certainly are We exciting the with busy new opening in and about and XXXX them some season. venues improved rides, weeks of of in-park new events, we the ahead summer as

there of believe meaningful improve and continue We drive to to continue both growth execution, advantage revenue additional adjusted significant opportunities in take our opportunities, long-term EBITDA. and growth to are clear

for expect financial in high to our we have in deliver and ability to increase results that to continue improved confidence We long-term our operating and significantly will strategy lead value meaningfully stakeholders.

Now, your let's take questions.

Steve from question go Instructions] Wieczynski Please first with Today's ahead. comes [Operator Stifel.

idea seen Any kind any a standpoint? Yes. attendance us that about that question. might guys housekeeping weather have you terms guys. from quick, Marc, quantify there Is morning, an that? real can so Hi, in way help the you first, impact just think good of or of

Yes. Hi, Steve.

we have help lost other So that impact in with you and attendance as and XXX,XXX you've in our California Texas I that. competitors was in where then the talk we think was Obviously, had weather. can Virginia, California declines alone in And notably, heard about I well. and that just over biggest markets, some

In fairness, in few little a bit weather we had a better spots.

weather X% low-single didn't net you up being weather you have impact. percentages out, digit the down took basically probably all it us with the when to So from if

just Marc. a starting in we're question, weeks lot what of Abu had help and look, a And impact Dhabi like? get on get hasn't that, maybe understanding new you're have, sure in look for obviously impacts here look is of up And terms and to you the given thinking the this financial Thanks then income aren't couple from opening going ramp questions perfect. look understand about That's impact about what investors yet asset? to just And if of but is going maybe an a second what could the of Okay. you us guys opened, here. could could statement, it to of trying what of this this and the how wondering from perspective. potential And investors park the flow through the the like return you kind how to

not would Well, the EBITDA. is a of obviously mentioned, then Sure. a it's but the agreement park to it. excited early, percent expect we're great millions this for you we accordingly month. later and that's here open a adjusted this I'm really right of so the digit deliver about it's obviously depending how revenue can go-forward parks think the I the think on little I on basis going the popular ramp It park a single as some would opening you very We likely share say, and licensing is. mentioned, and now obviously, as I year park. excited

the over from So it can certainly term I longer there. think expand

you think it we as it. and can some and to updates do excited what operating, about provide I going certainly but very gets is forward, expect opened some more can us details

upper than said the it digit be EBITDA single perspective should going from forward, So mid kind that? year and higher this of then you an impact to

model year. more little Yes. for Again, in tell. would mid early a low to to maybe I probably the this

know sorry. Low to we until mid-millions, hard open. get it to Just

question go ahead. The Swartz with Mike comes Please Securities. next from Truist

morning, Yes. Hi, guys. good

revenue in season Just your base. pass maybe a on clarification question deferred

quarter. I the do said math revenue X% you of I April. at up was here, the you deferred at just to trying the said I'm think end first the end think of

products, past X%. the in of base was you're April, then the increase pass end down double-digit a seeing about only You're talking

sales Am in is mean considerable of pass there uptick in reading that I month that the pretty April? does wrong? season a So

if me anything wants let start add Well, he and can. then to Jim

I that's last X%. a without the of think remember that, record Jim base seeing our really about we're what versus new mentioned XXXX open. pass year of rides just is, with and as And many down of April

a that's of the rides are pass. ahead -- think people look that obviously time new would and So a buy we many us to that

base once Also, hopefully normalized get would our going see would have think expect I to rides and sales those weather. pass up. some more be open we'll So we we hopefully

little not the a being of should weather that So the bad number. say, lack on kind the I of put of weather, rides open pressure and and bit

So still of good think think. tailwinds with story I the be it's a kind down I to of pretty X% ahead us

Yes. thing increase The deferred we nice Marc pass did see in year-over-year on sales revenue, sales would in for add, NORC our I we our deferred have in a increase March only are And comfortable our is and April, sheet did an deferred balance pass between with. revenue. respectable we our which

So where our again, think we plan I we're comfortable relative are the for to year. with

And then helpful. Okay, just following Abu prior. on up Dhabi perfect. That's the question

first how per agreements cap it I a separately? those going to think growth think in-park is in out cap, number driven of way per that per that is per that'd that I the much international little a contributed that of the was be to differently Any falling had caps that break and or mentioned you think broken by revenue X% forward? in-park how Would quarter. kind out in stream we should the about cap

with you try me help that. let to Yes,

for the quarter. related million performs depending the would I about going obviously is So little so in how that say things That's different bit number revenue I ebb or there on and park to to agreement. flow -- and you over just the what $X.X that a think

bit that's that necessarily bit ebb a go to and here I of forward. Obviously, a it's going flow color. on hopefully a little won't model little So in.

Okay. Thank you.

Cusack from JPMorgan. comes question ahead. next go Phil Please The with

versus imagine? specific specific can outside hotels, how someone side, picture. more and you about about capital I Hi, one The partnering on and the one that maybe financing operating is, you tell think will us with the bigger do matter your for owning

there know get question. was that think was record should the a fewer potential, and that? is picture on to record lot weighing overall, at you do still I then you. we that think Blackfish levers Thank to back big the bigger attendance it more were was demand you When are And less a competitive, What how think the attendance? you that issue parks, on about

can I Hi, Yes. that. it's Phil, take Marc.

can have So the on final don't a determination that share. financing, hotel we we on that

our a we on that So own one something hotels. share basis. have few or about own obviously the hotel. do, We're when the We're of in that industry can we excited that's own the our hotels go-forward doesn't

we're for those So excited possibilities.

as what in last over quarter, takes what of several of the what obviously far what did in we're kind we and out than some I'll attendance referencing reference and right on which we back did once million is attendance to get big As to we XX slides million now. it less picture that put probably you're XXXX,

we investments we I to parks, and we continue have do think So things our in and demonstrated are we doing make we're to have that. the -- doing, seen you've that certainly

heard me You you talk Jim doing year for of heard things and rides and the attractions. about about some this talk we're the

If to to investments added well. where some parks. think should hotels, our like I our continue I up parks, refreshing we with line once make adding events as us things parks. more nicely gives our take So venues certainly, to hopefully We've back in opportunities were. We're tenants -- in

drive So to things trying people. more do to

learning which still We have the think that. how to CRM use we system, really

there's we've by to that -- that want I So optimized suggest don't any means.

think can help still our We do on lot learn as to as better learning that. I well that have to performance a how we and that utilize drive of

to continue So some done those do that. us will things and we to of that we know work of We've of there. we'll lot a need around and that. to conservation those broadcasting do more We rescue believe people, examples efforts are drive

basis. the So go-forward about excited I'm prospects a on

growth Texas know, Florida think in about locations. those like attractive share United we and the think that we continues When standpoint. population our Pennsylvania, like take I the from it, as you in states population Virginia, grow to if and California, and are And also markets very a States you're of just of largely that. you We're

so to grow long and to obviously feel And to did only poised we can not to we get tenants over better do that begin but is goal here what term that. the than we our once back

up can I If Marc. the hotel. Thanks, on follow

going one If be you. imagine you're going in time to to 'XX, financing which important. ground about a to at side? is you're there open Is breaking I soon tell pretty the Thank us going

What I will that. is We you can share when tell to now. will we on have share think more I we you back right -- come to we don't have anything to

Thanks again.

is question ahead. next with go Please The Citigroup. from James Hardiman

Hi. Wagner can wonder is quantify? on or the first Sean James. ride there's as to called give timing quantification quarter for that if is can This hit out, benefit any that on there from whether well that you XQ I you a that you

Sean. Hi, Yes.

our tell is I would what of what said prepared remarks. you in kind So I

of If were following Day you Memorial had in opening summer. opening traditional time kind that QX. is of the historically lot around a or year remember, more of last year we ride our already in the a This into new right rides opened range

Obviously, would build will -- expect so and we find come and want people attractive expect rides them we because we visit. to

that open. determined. would be going that But ends certainly, being So we year whatever be to these what positive I up think rides forward still for ultimately get the once a lift

them there of and be number rides some mentioned, a As out anticipated should I our a of parks. nice addition most the to are

XXXX. that's We fair rides don't have of called we parks very last we we estimate and periodically results but would a on that guests some detail same why our survey to we Marc, would, we good out. opened survey our that level was a come that for had have impact typically I year they know those in there and thing why and only XXXX, The Yes.

And the this pressure or Okay, we what much any will expenses there that growth there numbers this and come absolute of year? earmarked is your way in points SG&A how major savings think operating you've kind about of whether are understood. by should year, rate

know as on mean just I we thoughts you me let you level on high have costs. focus a give tremendous Well, some costs.

mention heard me that. You

out, pacing the job end think I that to around efforts done $XX team working we and well $XX as higher closer good on well that that set the that is is OpEx. would has that to SG&A million as we're And believe towards include million that. of a we

growth. we're going our have expense the term. per recipe I for That's a number long -- If So to to would know low exact over you, like grow target the we don't we I good can that and recipe in caps obviously, single-digit keep at a good generally our check at -- well a is attendance digits single-digit business. low single grow by as growing in our percentage and a then at them costs that lower this

So that's helpful. would what we target. Hopefully, that's

Yes. very much. Thank you

The from Stanley. Morgan Yeh Please with Thomas next question comes ahead. go

to you so about group Great. Thank ask bookings. much. Wanted

compared and to there recovery might be You that how Can healthy visitation XXXX just us some international where mentioned from give levels. trending? relative on pre-COVID XXXX, to maybe on also you an update that stands

you Yes, help I can there.

with international not up mean me start was So XXXX. in let It's I up to still obviously international. XXXX. versus QX

still be my XX% is optimistic in opinion that reason are again, XXXX international a QX to in down to So roughly we attendance. over in that

to obviously more up there. have make we ground So

There's we sure things as well. I'm of. that There's obviously be could aware you're I'm sure macro better factors doing

that clearly that's we're something working And on. so

So that's us. a opportunity for good I think

The business group trending is very XXXX. versus well

kind We line, head XXXX. versus would pacing and will, typical Versus we're have XXXX, in was -- of ahead units this we're time we well you of of if it the year revenue have of good the still -- the The we're really news levels. QX, more are bookings down in out it's to driving we XXXX is to close back slightly cases, but being most in doing. in

levels some about pull tech any just maybe initiatives think an overall to the color, labor should during we then last incremental putting to maybe Is on Okay, you're might out and stuff back look compared that year, place? with makes kind hours how of that season of how sense. and there peak costs, year? And just kind this in opportunity staffing

Yes. I would say -- it's Jim.

What like For of a think see, few to our we of There's in somewhat feel our hours, measurably a many I comfortable labor Labor less our would recent staffing comfortable the is labor pressures of couple than is pockets areas. is that X.X% overall Department less. was has in select from much of still that rate rate that we to said me locations. year-over-year, our inflationary labor especially more improved that about

with, equation. think side I least of the the at pleased so expense labor And we're

we in hours, make some Labor have more ourselves efficient. do place to initiatives

technology projects As our at mentioned quarter, look to forward entrances. couple main last we there are that

analysis we've doing at making sure our also support also things capital more will our we're them got growth labor hour labor restaurants are time doing the We modifying make right to some to that in place, the And expected the moderate efficient. and our labor some attendance. detailed year-over-year hour with right right spend very

with question comes next Securities. Wold B. go Please The from Eric Riley ahead.

questions. I the or one guess, topic. last comment Two on a last just you. Thank follow-up

you and You XX% XXX% a season, 'XX goal mentioned the that? driving the is implemented what when the around the those that from planned mobile this and or about ordering. for higher then ultimate to are that on consumers? restaurants, sizes fully labor-staffing goal is purchases to or Is drive at plan more you restaurants maybe in of at Can actually reduced goal it's later get basket the is

Eric. Hi, Yes.

Look, a it can high better we Jim ordering about. some I for in fill in mean, then on with experience of be Let talked one is app want our me give to maybe just level general timing you goal is mobile guests. he the fold. that and the several in comments the the

satisfaction it whether like app So a able better a guest or with to experience being order seat it's or be, download of app quick guest a food from key a whatever component reserve an queue them may standpoint. buy we that have or certainly that's

people spend that buying more when clearly the know app. through We they're

would advantage. mobile these of can another then the thing obviously we locations that's guess believe staff some have So And we third efficiently, be, I more order ultimately costs. we and lower so

And goal So we're that, of those kind the target timing things want it's all to of the as app. think the about thinking that a as talk are of combination then I that? about how you in far and the

Marc. Sure, Yes.

style service of installing spend of of retrofitting do restaurants. that legacy part our our on restaurants, significant that a that of changing as ordering to and and dedicated as part mentioned, So our capital we mobile have those amount I

in We that's going multi-year incorporate very some busy be approaching project, got will design we've But future to major a and the course ones that. restaurants of new season. to the we're

in limited at take do same down some these retrofits. of to the all somewhat to we're So restaurants time ability the

over So goal is we'll our XXXX it do methodically that. and XXXX for

other maximize As times generating labor far are we going able constrained it so we're would labor to also us helps while locations revenue add -- that in areas, lot environment as labor, more there. the move when to I take efficient, and to be them a we're revenue the of to that other only

obviously, focus Thank point question you. over What see optimal the does the the repurchasing leverage years, shares as of coming over And then you're higher. the shift what interest years? capital lot recent of reducing a just a ratio, and excess would a on have obviously debt, and follow-up question rates you the towards moved ratio

obviously cash we higher so the we're use that with wouldn't mean, you on forward. ratio would have really or I is tell but Yes. I we now. I a mean, the X.X Hi, to is, with that we don't Board guide target. work we'll at do than comfortable we are and continue to times. lower comfortable be that that, what's even where we Not best do of going We're than What Eric. what our

you. Thank

Credit Chaiken question from The comes next Suisse. Ben Please go ahead. with

are pretty items transitory is year, those today, at kind year? Hi, Last how's last you it rolling you highlighted Thanks. going? of environment you a the off were what in inflation you sticky seeing When costs. transitory 'XX versus it look or of bucket highlighted operating

of labor. moderation many would we about mindful pressures in mentioned I have areas, be we cost Ben, already, seen Yes. the say like the I to continue that

I think of rate being that. manage very more a we're to growth at on targeted either pleased more through at we're or shotgun ability efficient our rates our be overtime hours allowance reduction target in approach very abroad then labor a labor

very had getting with partners to The dedicated vendor best pricing is We've other our of cost negotiations ensure the we're of that. with sales.

moderation So there. we've seen

we've to forward, of rate sort close I that. our think going reset

look in to of think good fairly new at our pressures. I general, continue were some We inflationary baseline. at a we But

April. heard trends and some of you Thanks. a if helpful. nice you you sales I attendance Is said with I correctly, think then And was between a saw in That's fair March else? you're I up seeing pass this there step correlates that kind think or something it assumption

is I Well, on would commenting think tell -- you without what we're I attendance.

I have obviously. think A we ahead driver. those rides we opening people of -- so rides a as closer to and of times buying pass our we us, that's get and like products things lot that,

Okay, thanks.

comes next Bank. with from The Woronka go ahead. Chris Deutsche Please question

far. and And and little the down we Thanks little maybe segmentation Hi, all customer hoping guys. about then local your or good buckets about for probably parks. we and a group then bit more the so Florida morning, talking we're the a I drill into was the bit international. is think presentation could details if

-- six,nineX you would those over in is noticed I there kind spend any months? of past among or guess Have any change park I any delineation three, in groups say, the

know out don't provide any Look, we're more that detail. that I or going to break

our can you over throughout for our with -- is time obviously that's in read visiting quarter into quarter have what growing so think parks some and of per I caps for year. our the levels and now, different been

they compelling across tourist. and Orlando visit they're our we're think or parks. that of in we're pleased a do local when to parks coming in that spending the parks new think a I I our a There's with So folks the here our from generally people to whether things visit number are seeing specifically

kind that size is smaller it's that up park fair could domestically, with whether is follow Dhabi now Abu table it of or look Thanks, And perhaps that's or venture something Marc. for joint Okay, something be on sesame at? the is that enough. things just you even licensing a never thing larger a then opening,

into getting lot Well, different specifics, entertain of look, can without I I a things. we think you is, tell what certainly

so do we to will that. continue And

situation, the yes, domestic whether opportunity, right or mean, it, look at So certainly I we it's international. would right the

Thanks. good. very Okay,

Barton with Rosenblatt comes Crockett question go Please Securities. today last from The ahead.

Okay. not and this labor just were Thanks a by optimal the year does that is season markets the in for rides ride new when why time cadence and description later squeezing for and design, or this last me things best in. little or to of I sooner? explanation able your words, other wondered -- year this construction impact bit I things being the year. Is about about we to than was out are open is construction of the launch kind of last efficient markets starting build curious get as as quite reflect on maybe they were

Yes.

one. So, during opened I most we of Barton, that remember, take if I had we time mean, you can the in the construction COVID XXXX rides under period.

along fairly So of they COVID when were in hit. far a lot cases

of lot them to open due a XXXX to remember going got and COVID. in You delayed were

runway to So those earlier. to have big and was a open there was complete of advantage which pretty why were kind less to them rides, we able

construction it our opening in coming Obviously, more kind in impacted projects, time we're now certain and be. traditional any delays, just it's rides labor more like may them challenges or have of open we with mean, many I that here is in construction like weather historically the a new cases whatever certainly you said, weeks to whether rides.

a you of So things. have lot different

the I'm a to to for and through that going enjoy lineup excited we summer. delivering that we're compelling into be So we'll as guests move work

Okay, Thank that's you. it.

our concludes call CEO, back This Swanson I question-and-answer to Marc like any remarks. the for turn to closing now session. would

Entertainment, rest Thank us you, thank you this MJ. at team On behalf of to management we Jim and the SeaWorld of for morning. joining want the

drive which long will we confident heard financial operating results stakeholders. today, our and and you term for in value strategy, we believe As improved long-term are

Thank speaking with you And look quarter. you. we forward next to

attending conference presentation. The concluded. you for has now Thank today's

now disconnect. may You