United Parks & Resorts (PRKS) 8 Aug 232023 Q2 Earnings call transcript

Good morning, everyone, and welcome to the SeaWorld Second Quarter 2023 Earnings Conference Call. All participants are in a listen-only mode. After today’s prepared remarks, there will be an opportunity to ask questions. [Operator Instructions] Please also note that today's call is being recorded.

At this time, I'd like to hand the floor over to Matthew Stroud, Investor Relations.

morning, good and you, everyone. Thank second Welcome conference earnings to SeaWorld's call. quarter recorded. is being call webcast Today's and A issued release Investor press 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 second 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

of disruptions results and opening quarter impact of rides another report weather, significantly the to a the delays, the during new to despite and related construction in-park timing in of venue shift pleased of quarter. solid the adverse are financial closures due We

outstanding further and underscore team. of tireless efforts second the our our strategy our the of the the effectiveness Our of results resiliency during quarter business,

during Some combination Canadian rain quarter. the impacted and/or of and our most fallout cold weather, the unusually hot from markets wildfires of

by impacted attendance certain in was XXth facilities quarter, disruptions resulting total per the the in headwinds of delays our the grew spending adverse certain of unusual in-park and at closures during in spending the other still the quarter. and in-park capita weather increased Despite consecutive parks projects In-park and quarter. construction prolonged for

the the opened, first of SeaWorld outside United During States. the SeaWorld Abu quarter, Park Dhabi

to We park XXXX are the which what revenue are to Happy group already significantly first full this of really proud our for booking very be group expectations continue year. six over by see park. the and revenue up will attendance this date year of months versus excited trends, to encouraged bookings deliver revenue bookings of I for well-ahead time. the date XXXX and to exceeds XXXX and through

excited their efforts remaining for to based of balance planned year be for past we and the about and we year. this season ambassadors events bigger I'm events, which And over what Christmas planned weeks years. our and summer events Halloween expect grown over also the next few bigger have this very and we on our have want wrap-up these and the increasingly of Halloween our summer events the our into I months thank yet. all few popular to best Christmas our as head

parks We voted Orlando having and for received United outdoor also Aquatica water of in the was in TODAY recently some are to readers country. thrilled States. USA from best the recognition have park attractions best the

at Best And United in Tidal the was roller United Gardens best roller Mako SeaWorld the the Entertainment States. coaster Busch was Amusement SeaWorld non-roller best was Williamsburg ride in Celtic in coaster Orlando in voted voted San States. in States. Surge Antonio voted coaster Fyre Our Park United

XX rankings our and of parks received top other well. attractions Several as

recognition the of We country. are and proud and our these parks across the collection to receive awards

significant allow business. to experience and more continue to the make We investments guest revenue to generate in business have improve we'll efficient made a our more profitable us and year and this investments make us

investments yield very these attractive We returns. to expect

for us planning this balance business. year next initiatives year are stronger, We of resilient that profitable even will an the more and currently new and more make

substantial we high in that on have financial in in meaningful are increases lead ability We confidence today for to improvements shareholder and the our the will plans and executing to future and deliver value. operational

some of Now me the on you let initiatives. our update of progress strategic

to opportunities. good with dedicated reduction our on cost making and related consultants efficiency internal progress our find continue and are we work cost First, additional outside and team specialized

We target target our $XX million. savings have to up million previous from revised our of $XX

to continues better labor along for drive with to technology scheduling utilize find capital organize team efficiencies source and/or expenses. efficiently, to and eliminate us and and unnecessary redundant ways improvements The more

We will initiatives time. over to expect these with cost along savings revenue enhancement our margins increased initiatives lead

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

our QX. is been in by has of experience. of in-park In number being to to X.X the app, end guests up now at five million their are regards than an mobile used more we parks the million improve times times app from it downloaded The pleased increasing

beverage through generated orders. XXX% app compared are is purchases value to plus up Total in XX% we over app seeing a year. prior made point-of-sale food transaction the to now the And average increase compared revenue on for and

at restaurants XX% been restaurants. is approximately additional our target operating has to expanded now of and ordering Mobile

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

current the increase We further optimize capabilities and and capabilities additional develop to are refine continuing engagement experience. to

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

than refurbishments quarter. these upgrades have negatively and of caps some in-park noted per planned the affected taken longer As second in which

While these we capital the benefit of are to investments they and we online the over full excited of disappointed these caused, remainder come projects with as year. are the disruption realize delays the of

We expected are and in will for that planning attractive the guest way ROI. to well our on and experience additional XXXX further projects are enhance yield

Dhabi Abu the in international has SeaWorld meaningfully attendance late on above Fourth front been and May expectations. opened

pleased forward see how to time. growing look contributions is and its open are to We over this strong park

other make to in expect We continue related international coming have to to share quarters. more and progress on opportunities to discussions

Fifth.

hotel to front the also on On progress we make continue our plans.

in refining first on XXXX. design currently our to are our expect and we We begin planning opening hotels

to significant profitable investments us and to have what on we quarters Overall, more guest more business we for will very be work improve We experience, We exciting and we additional expect site in more are and revenue I'm across allow across we more initiatives park underway the hotels really about portfolio. make on and our many efficient hope that to expect enterprise. us a making our to generate continue value-creating selection in future specifics excited share projects. the

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

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

and to leverage approximately we to our total million XX, available is business sheet. million grow XXXX, and $XXX of $XXX This ratio over in on for shareholders. liquidity June net X.XX had maximize gives to of the invest goal Our allocate strong capital continue balance flexibility the times value to cash opportunistically sheet total and with balance long-term including us

comment credit repricing the markets Let me launched and on of strong repricing our Last activity we last tightening also credit week opportunistic an back debt debt on week. spreads.

right other markets. government our rating, downgraded we know, activity, repricing after you credit the Fitch factors As among negatively credit which launched US impacted

loan lower was time While and we where our Board the interest to to it our the have wait to such, the opportunistic pricing market our cost, and we as have reprice be level we to expect plan debt. a better canceled and reprice to at conditions repricing for and our not ability

we Halloween years our over year weeks. the said we our events bigger ahead, which expect I and as about of our the few summer have remainder what on this popular events, next to and bigger And for based over the best excited Holiday Looking grown events are and planned have incredibly be planned the we yet.

over We fund of park passes have also one and weeks. our the coming passes remainder in the plan already XXXX XXXX launched parks cards launch to across including

passes will and reasons to continue passholders, value Our to great XXXX to with our visit. benefits exciting provide

guest experience, store efficiencies excited and are for are revenue of about in drive for year and planning We the next expansion. have initiatives will the also and and expect improve we we margin XXXX, in extremely new investments and further increased middle

have about excited new planned attractions, lineup our events XXXX where and/or We every of other we rides, something also park. are for experiences,

We will to XXXX in for say as the specifics we to more have begin announce park. weeks, more each coming about

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

morning, and quarter. be everyone. you to good It's good you, with Marc another Thank back for

weather, second second X.X%, decrease decrease of some peak $XXX.X adverse XXXX. increase in generated million primarily During a total we or and rain of during an in X.X%. quarter including the of million, from attendance wildfires per offset or quarter, the total of capita cold a to was of decrease revenue in periods. in combination unusually Canadian revenue compared significantly The to was The across due the visitation including revenue and of when markets by decrease our X.X% partially of $X.X due most hot to fallout weather attendance

by ride impacted XXXX. compared new unfavorably timing Attendance in also with was XXXX the of openings

the the our of As the quarter. of many a opened rides in most rides in later XXXX, quarter first in XXXX, in whereas opened second reminder

second product drive in essentially capita by per higher $XX.XX realized in in-park in $XX.XX XXXX second per to record and revenue was compared XXXX. capita increased spending second flat record quarter quarter pricing of X.X% of of pricing Admission the $XX.XX while a resulting Our the in quarter total of at continue the XXXX. compared per to to strategies $XX.XX, the to quarter capita

primarily admission was pricing net to partially the our capita resulting higher to of the our due mix, products admissions from of the compared when The year realization strategic the efforts by per prices quarter. admissions prior decrease product offset impact in in

of impacted at XXXX. the quarter spending in-park related per initiatives per certain spending to to by In-park disruption capita, delays, compared primarily closures weather, was and In-park capita negatively, factors construction to locations. improved including pricing due second when

increases the $X.X increase self-insurance or expenses to noncash an and implemented structural of the park COVID-XX initiatives previously second from liabilities costs compared compared of quarter contractual the million X.X% by The XXXX. Operating expenses closures, impact to cost legal disclosed is of in reserve in the increase increased operating to when offset due temporary primarily, XXXX. second and nonrecurring savings adjustments, resulting quarter partially when in

million nonrecurring Selling primarily administrative to expenses to XX.X% third-party when $XX.X initiatives increased impact compared strategic quarter The the along increase or general consulting in costs expenses administrative of an savings general cost due and XXXX. costs a for in increase in partially is efficiency marketing of of offset $X.X million quarter increase implemented by XXXX. compared the and and the to selling second second with, initiatives

for The compared was decline of XXXX. second revenue compared EBITDA quarter We quarter driven net increase second year. million primarily the to in to The a second $XX.X compared the We in generated of when generated net expense in in quarter prior XXXX. quarter the when million second of decrease $XXX.X to XXXX by income primarily of income decline in a decrease $XXX.X when income quarter the of XXXX. net second of to $XX.X interest for the of to adjusted of million is related EBITDA million, compared adjusted the

was or of guests a X.X period Looking of X.X%. $XXX.X or at X.X%. half for XXXX. was attendance XXXX or Net $XX.X million, revenue the our $X.X Total income million million, decline results and million an the a of XXX,XXX adjusted million for record of X.X%. $XX.X was compared guests, was $XX.X to increase $XXX.X of million, decrease first Total EBITDA decrease million a

Now turning to sheet. balance our

up pass end the XX, the X% XXXX. to compared of when at was of products a of approximately as record XXXX, was and the X.X% $XXX.X second base pass balance quarter decrease June our this of revenue year, a June of time At the of level deferred current all compared to Our million, including for approximately end XXXX. June

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

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

available June XX, on sheet on revolving XXXX, facility. our million including As million was of available our credit $XXX.X total of and cash cash $XXX.X liquidity $XXX.X our and million balance equivalents

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

core $XXX $XXX XXXX, million expect high and we conviction on million to CapEx on on projects. to For growth spend approximately and $XXX CapEx plan we spend million to approximately ROI

In high to confidence approximately through these $XXX to the our in total, look we to these XXXX. returns to spend and flowing to million We're million make benefits sincerely results. and $XXX our investments forward about excited CapEx ROI financial expect for from ability investments

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

Thank you, Jim.

Before XX,XXX the important call Manatees, team's Dolphins, hard helped do them, these the and second XXXX, the including I rescue I Sea animals Over and all questions Seals, in closing In parks. our Birds don't over we of operate Lion, to open aid ambassadors we continued XX thank for have your some to Turtles, of to all have our to really and know that our to need. efforts. we I history, quarter came animals the Sea more. want of they dedication work their I'm proud Sharks, comments.

excited the head are summer the and XXXX, winter as out finish our and remainder into fall events. We we about of

next are and Halloween SeaWorld, month, Place popular events increasingly Busch starting Park. our Gardens Our Sesame at

in best be Choice USA that Awards. by voted SeaWorld's by recall XXBestReaders' Halloween will was followed screen park events Christmas November. events one XX the Halloween may Hollow XXXX events You The our started that of TODAY's theme

XXBestReaders' Christmas reminder best voted holiday Awards. a one USA by event theme number As park Orlando's SeaWorld was Celebration TODAY's Choice

guests our expect year we this we of exciting proud our are events have from events the received to yet. be and We most recognition and these

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

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

your take let's Now questions.

first with We begin question ahead. comes will Steven session. the from now question-and-answer go Wieczynski Instructions]. Please [Operator Today's Stifel.

Hey, guys. Good morning. Yes.

similar So, like was seems the obviously, actually Disney. quarter -- from of was during some comments heard we've weather impactful super it your peers including and

in the do you wasn't I where have impactful. is, your can So question looked ballpark guess what of And idea about attendance the impact was us on help the a weather actually you the weather quarter? like parks what have think days maybe on

Thanks. underlying the at like trying spend the to Just for look parks how and understand demand levels this point?

Hey, can that Yes. take question. Steve I

again, weather we of factors that look, look things I we of So, timing the year you one remember And earlier a this the on -- in there's they that attendance. year if openings. lot year. in the say, at obviously quarter would one the in the things is isolated of year. we was addition this other had opening later last to ride important And why that's opened

not So year. April did primarily did rides many in last we have we as open as and May

the the an little the those So obviously of you it's up would been bit look when openings estimate adjust the or -- you look quarter. for of timing if in tenants you the kind the and for weather ride combination And if have adjust those. at but in of our delay a those

then second And days. like-for-like on on question your

attendance I there think June is what days. the small on that rides see like we a look when we say, increase would we at month things there had open I in when did of the like like-for-like that

missed, time lot in impact releases you. least, the headwind encountered about Marc. that as of I'm take around you've a previous like I quarter. trends on Okay. assume during anything of was But EBITDA in color you question of potentially is being making this, there couple comment the a kind that then Got you might sure weather kind language have else that have for language removed because XXXX is talked of it and Thanks, out? a around. looked of And is is and that somewhat And July revenues been were. you earnings it And second the how weather well. second not any record was this that I of July if but

help you try I out there. to Sure. can

about of down a a was continues days. you So We on your the impact. significant Having significant in nailed question the what said call we that, saw kind that weather be number impacted about weather to of July, increase obviously, revenue X.X%.

well as given were we month did the will kind that could so tell we as impacts of So the you in July. July. also I in caps up weather of per

July. on color little a that's So

there's and here lot year out. being the what popular factors As rest cautious noted gives the this me simply that I far I think other as of coming weather the the year, of called think we're as of some we've not has a how we've about little rest just guess as some events. we into called think out been a year it -- then I the optimism impacts of we is, about and

with Christmas last and weather our and we in storms, know of and meaningful November have QX, hurricane/tropical we also then remember did Halloween of and year you QX impacts then are the So have -- a holiday combination in December. of our And events weather if periods the guests. poor a lot popular especially the some around from pretty

lineup, that will The that been of repeat So, and have them thing. some good these think parks would that that that to who of be strong. delayed be in some delayed, repeat. venues get events We're going knows I as if us. opened, about get a that open that which talked repeat. I our in-park But doesn't should have our things been for we well. good expect we to think And and Hopefully our are doesn't if

just see shakes are out. I but think to have where we'll that some, there So tailwinds some

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

you in us is million expect coming laid of $XX $XX that to are achieve I your commentary you're savings, Maybe little or sense commentary. expecting in from million savings Hey. Good now cost you think think incremental where versus which those guys. timing them? give morning, prior up I out Marc, and maybe a the just which so cost

Hey, Mike. Yes.

Look, what continual reiterate clarifying prepared I driving to just, think in so say efficiencies back from is, I have so said go Just to we I'll million, $XX was a my that. on if remarks, just you focus up $XX look million, business. the what

going have a We of on work lot that.

leaders two job senior finding great a promoted efficiencies how of months efficiencies to and I oversee And in other our most of in they're A our operations. we doing our think ago couple of park labor we help operate. parks

So those type And that to work continue I regular can on of the things going find we're we tell are the in a you it on to business. basis.

about on some know based saw through. I'm going work obviously, feel I exact But, saw what good we're come plans going I that that I comment of and we forward. see And timing good the about that. doing we'll the in there. don't the feel July, And on to

starting strategic one cost of the cost I those look including of investments the types throughout referenced and just see at the initiatives, the of to for might sourcing add, the you for company. months seeing that three When sales our our our Mike for of you're reductions benefit down we're some that's in food call. materializing of in we significantly results example

see it's per you've that you. Got And on then, in licensing quarter? What a know the from just I did fees, the seen Dhabi. to I and color I'm you And a little not on very early. in-park mistaken SeaWorld what add benefit more Yes. if the Abu caps. then the think follow-up today Maybe

Sure.

-- as we're with in Abu of pleased said the opening Dhabi. the the remarks, I SeaWorld we're prepared So look,

you it. kind a I visit. an a long a just a rec you recommend highly And attendance away, really really there and is -- and I expectations product. If exciting visit get take just to it's park place It's of highly the it's above exciting chance obviously but one way to know,

open I May. it noted. on, until didn't even Still very early mean you like

super and licensing for It over not share whatnot. impact the a And ends is amount. we the huge a deal So where that probably and see is $XXX,XXX. around time. quarter we'll royalty in It's up

the bring does kind think people I park, of the that and bring gone And But may folks what's that understand it, know-how tell we certainly And that a people other we're think what will we see the you seen about opportunities park helping can to actually what operate can has brand with and international I the for the whatever I it excited it over opened. helping brand. experience. our think us up art and park, helping help possible think construct it we and of have see I set as -- that be, is experience as

go from Hardiman The ahead. of Citi. next James Please question comes

Hey good my taking for call. morning. Thanks

of to delayed better of It as sounded caps wanted July But you Marc terms X.X% a So, opened said I in down revenues was visitation. maybe that up with you just clarify things month the per a June of up. couple then rides said. some like think were

was -- more out bit that are of presumably then anything sort that here? better attendance other worth got maybe and weather attendance things of weather, if than And down something looking perspective. so a at any right is that else an outside little X.X%. we guess worse So, there Are calling I from or just

So, significant in we that's look I year. years think over number kind the highest it factor XX say kind of of would the of weather look of if was days last right? I XX the of a call kind it's meaningful I all weather-impacted the over was been mean to not what so news, July. then highest. you kind the James, we the at Hey meaningfully And if well when last the kind up of among pretty

that. for a in So, driver it's definitely big July

maybe season we And think how helpful. that's passes. about then Okay, do

is season record levels. said base you pass at So,

help down us but are I pricing said is bridge there? X%. you up gap the think deferred revenues Maybe

timing think And for sorry I'm pass already how I park pricing we timing for mentioned XXXX? you the season compares sounds pass how XXXX to then normal. the is your -- pass one like And about that it should understand selling XXXXs. season think us Help

Sure.

passes, Langhorne probably So, That traditional spring the Philadelphia. we season shuts of the more kind opens in sense our at Sesame the Christmas. the bit of kind and timing look that around pass of in it of little down launched a season a outside Park in on park largely is

So, kind that's consistent about most prior general our of it typically or in what think makes very And launching start things pass launches now. that pretty pretty like the sense largely line And with look And we you're you launch see are years. years. that that. of to to would I much in would in close prior the done and into next to into we've around September this time over weeks few going

So, that's not a typical.

deferred And weather sure but multiple things know wasn't I'm revenue. our lost sales besides have you impacts, the some on to are we pass that Look estimate revenue weather good. deferred when in pass the harder there's we when obviously

sit people that as buy an our advance that single-day so have in that well have deferred. tickets number. that And things impact can and on And you just like that in then

in So, lot there's there. different factors a of

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

so Yes, ease? up timing that do your Thanks And back either just does in you following fully And like delays, think of not that construction comes right? much. kind sounds everything the July. that Is to of when it point related normalized on has when online. all

right. Morgan, Yes. Hey you're

in Park couple a have still our California restaurant probably remains we unfortunately, In things still closed. closed. out -- our particular of SeaWorld of our one So, in biggest

to hopefully now. We any it time open expect

still unfortunately don't the again, But of that they'll get you not exact -- timing. certainly things of. I year. opened There's delays as of July. can can I here those open quickly working Some been number know not open open. we that this we're we're as expect not tell to others, real proud I obviously in And a the

up per were As that. mentioned, I even caps with in July

in pretty a So venues we to when open. that do refreshes things be when hopefully target is our parks. We these attractive and returns these tailwind going new

So there. we're excited and got they open just to we once get get

number you're a XXXX. booking or talking And already revenues the Maybe half above just booked? helpful? of that pacing demand recognized, what more there being of that Okay. six Makes and to Thank additional group on sense. terms into second the for you. trends about then months really visibility yet been kind be revenues already that the some have are Is be in provide we seeing would

I Yeah. is The of the about think on sales kind books. it are way that

Like those in and have we what not a the saw are more those year for bookings XXXX. all So full up. shown we of people than have

So some to and those people of have come. come still obviously some

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

Hey, there any of us deals ready joint know to plans going structure is consider you be are kind it commitment balance good hotel sheet, things balance in morning, to of -- of those or is like ventures way terms think but potential or guys. you're going on all that with brand partners? not details to share the to the yet, for all about I sheet and

anything I with you. can have that tell I you to specific don't Chris, Hey, share

-- a different at that is number I options. think looked of we've

we that's back operating I for as how to do and think that opportunistic. we to and we obviously make hotel. multiple we feel that we really do the want finance the best one And far sure looks, that. come good But as ways about how most There's could you. shareholders we'll

was Okay. some enough. QX. And besides a some in Fair there delays or just of or issue quick the chain that a then mentioned of issues, weather-related also that attractions kind labor like on Were you anything supply weather? those follow-up the all rides or on and

-- about you're you and obviously with also to a get there's even permitting do inspections. factors. there's say I Look vendors like better talking We've multiple what I chains. things depending got mean would job, And but on and supply

One going lot bit. just are around really is little a working Some down of the they places some moving municipalities we on. from hard, operate these of things the and a come folks to have we thing but hear that the

things times so certainly say can And delays think ride I those because a never less weather has we that. a some But Weather in-park outdoor an less have probably there's I to impact. would -- in things lot and at like on or do processing certainly something indoors. helps. it's typically more permits factors. -- with weather an of are But myriad

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

Thank you. Good morning.

in mentioned So likely to I season from negatively face know Anything was positively sales, higher impacted the purchase prices? renew. around pass difficult surprising rates kind though pass But you trends? anything also Even weather renewal know doesn't Any the why right? always the of someone up pushback? or quarter. glean you those of pass in it's the base the you

it say of product ability is I'd gives visit throughout benefits, to a number What a you we year. gives offer and attractive really you the pass

I think when reason in investments like it's a compelling buy you to new a and compelling that with we're whether that to rides that visit. is things the making parks, or events venues, the reason couple

So something certainly continue think to people. to especially long attractive as like going And going do concert it's compared to like that's value, I things to good a be that as we or to a long and buying very park stay can of that. in a like how visit things the season you a can you amount that pass and value like to the you consider a ours park when tremendous times is relative

things. to continue we'll those emphasize So

I great think, it's a product.

the product think if that visit. in giving refurbishments offering or But things control weather. to impact like areas, I exactly that, to reason regardless and to a people mentioned to but like you'd to estimate estimate good in rides is. Hard you'd think again you have delayed when a like can Obviously, what the of continuing we and hard more And that, our those to get what go think better I'd things parks is sales. invest and

kind wage difficult seeing of what it's around kind you're of Any still pockets of more seeing anything Got getting pressures of Appears hourly system. a to wage on you everyone in it. regions you're with terms the difficulty where want park? in then the or And rates follow-up. to maybe have

number. Let me pockets think can specific are the I Jim just that overall labor of comment labor of and mean, you give kind of I then there's still look challenging. the kind

Jim? think we better feel And as are it's as others of trade far certainly year-over-year this But the pockets have but in like still year. last that that sure especially I noted think rates, as better than I have lifeguards then year challenging. spot positions you a things I'm

Marc, Bureau leisure and year-over-year. wake up I the about the think X.X% in of statistics Labor talk hospitality of

we're rates think our very wage I moderate. very that are pleased

In actually overall hourly for fact they're labor. down year-over-year

in good our a very this labor we're position think I management with topic. So in

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

of guys. side. the A spending a little Hi, bit follow-up on

you market park can projects among discuss impact you. You into the of ticked are up the capital the or peers? Orlando how doing? CapEx And maintenance new seeing to second again. dig pricing a that can business? especially this Is or promotion can projects theme the then due in standpoint that quickly And you're and incremental you either in all, extra from your what you competition delays, Thank

Orlando. in let the on Phil, Hey, I think have obviously competition Orlando with one me opened start XXXX Look A in your of time. that we've with SeaWorld. second been since since lot parks

product. But experience It's and I look great competitors area. I have bit of like luxury the We of value good different. tremendous our a area. offer might have We at little than product. other a very in as in a find think It's parks you very differentiated. some our a maybe in the parks well the Universal Disney Obviously,

in Aquatica water I in a added in park we've XXXX. added we Discovery and XXXX, back Cove believe back And

know certainly ability that's over I think Orlando think I area. I a all something to we also advantage here, remains our long and time. here And and bit, and term we are to going think here the we're to know but coming the I all so our benefit we be but they that and competitors competitors little take people from like that, rational are to trends our -- more differentiate continue ebbs growing and desired Orlando over destination. flows a think I in product of And we'll compete hopefully

on over that capital continue time, over about the spending $XXX I million in period CapEx to on And to on focus think average the a front, try years. we of core

XXXX XXXX, we're we refinement is for as our our attractions think, XXXX plans and refine menu. what seeing I a of

mentioned learned work delays to need And design start earlier. what our is We do to in some had we've also ROI think as and I some much a projects. prep

we next year. Ready much So projects that we're that go get XXXX. to for allowance so sooner for some those can making

Thanks, guys.

Dove with Sachs. from Goldman comes question next The ahead. Please go Lizzie

start the mass kind wanted say allocation. like Hi, reaching capital question. cash it still But to of seem perspective there. buyback on more things. side you're there's Thank generation. of for much but I of taking you a critical your by my hotel not does can lot you also on asking know, I of terms in an from flow ownership

paying about a or down or thinking priorities allocation whether dividend that'd be you're how anything going capital potentially debt else? curious forward, I'm So,

question. you I Hey help Marc. Lizzie, can that it's with

Obviously, our several So, over of we've different we do to that is continue things here demonstrated couple invest look and business plan a we one buckets. a the it to into new I our parks last years to priorities the main have think every And in year. that. in put of

our as I the to allocation. talked parks. already we kind that remain, So hallmark of is initiatives those be continue business. to little high-growth making investing initiatives well. that ROI invest kind again, think ROI those as We've a in on long continue will capital bit those our types be a And think of investments of of our I in today opportunities We'll of our supportive as about Board

would may your we is the come or next shareholders is, you can paying I that. buying of kind And or that's set with for what and do. with on tell our them of maximizing just you to you down kind a strategic shares cash on use the it's of whatever best work whatever whether alternatives, Board to work Certainly, of something or kind debt focused we'll value back to paying is that's going that of be. What on dividend our forward. then -- it Board continue continue And things

wanted makes it kind out travel kind might up on up you've been There's that Thank XQ digit down be lot the they quarter an that to I'm kind called like percent impact you might happening. impact slightly that maybe seeing if mid-single this of a And headlines follow curious you. international sounds some I year-on-year just in lines, Disney of of an think focus. and Phil's Orlando, something attendance. if continues of like, and between but That on were Universal, sense. reading up on different question attendance Orlando in quarter. whether they been into trade that's to that of ramp there's continue actually

comment -- certainly, Yes. I that in the think more seems States our least it's people parks, I've mean, Orlando going I'm said. other it internationally I already news don't to in are United mean, know I people specifically been of I at are kind than on what that traveling like.

visit So, here see. the it have we'll people Continue event our to in and is. my remarks, in that continue I something mentioned specifically Orlando. in Orlando well that's think Again, reasons what done. that is really is our And parks. Christmas I parks, to to come invest in can out I prepared think

So, we'll here the visit in good people to and place this market continue be be for and a area. to be in

The Aurand next with Markets. question comes from Capital KeyBanc Robert

taking Thanks question. for Hi. my

out domestic can of it between any way nongroup look international we there group in break attendance is trends? you kind quarter, at As versus versus the attendance second

to mean, Look, that. XXXX down Robert, Well, comment on relative I to be of let just XX% you range. a me give or in down. continues kind let that just, International it's me two

talk when down million on least annual at competitors well. you've think basis, in an as basis one people. over I here of our one that's about for you look But rate a So kind of them at Orlando run international being heard

business I'm strong. group there -- that's revenue the So, bookings, about the not we are talked bookings The international.

that hopefully so, continues. And

So, a bag a little bit have you two. of there those mixed with

is kind of like for bit. and if it, -- or of as same quarter, far up need in what's what more of kind our that kind day. as visit closer local little to like the ability our be. your the visitation the think to about when call domestic that we just parks, a have And that makes delay and folks then that the across are you down quickest all is into sense tourism, markets. their whether And will what you domestic, I'll can those And When are look domestic react if and attendance people your the because things

Dhabi. quick a just then And on Abu follow-up Understood.

I think you quarter. $XXXXXX in mentioned the

a think to impact year. EBITDA attendance trending were $X expected? low is given mid-single-digit, any better the I last Are there updates than call there talking dollar you about you million for

I guidance we or think is Hey you kind millions. We'll the use have I just still just that new. excited it gave you the But modeling stick park. Park low-to-mid-single-digit can We're really, time, to would with last about still Robert, quarter. last really see of the obviously.

go from Barton Rosenblatt. comes Please The question with next Crockett ahead.

reporting I had weather. question. from your Hi. of on the are buy the exposes to all commitment consumers is climate them was taking customer that change, all of media that if Thanks hearing, attitude a and you impact in, to season financial which the we've pass for base the of any experience interested being around detecting asked a

season lot base? customer bad buy being of kind reporting see media pass? people's about your this this a year, new desire to normal. pretty was Weather from a this of impacting Is And a what you

I weather try quarter. It I the Look, an -- I'll that. certainly best do answer July. as can you the impacted to I think, Barton, give can. I said Hey on I impacted

not weather buy pass because a people did – there's obviously who to or buy ticket visit. of there's a know we come obviously, likely So or

that like see. I don't think that to what We'll eventually term. to know, normalizes the some of over longer weather time. means long over would I period have

years be think I cognizant to have we we have. just of where

to pools, like we to comfortable do day this to to try or things. hot try We on try had if in parks in our We water Difficult cases. a year can come heat still more to the to weather people other we make give some can reasons visit. our have park

to may about think seismic very there's some shift we differently if a little it. early to but bit, people say still have So how think in things just about think I here we're

these hopefully out overtime. will things think, I normalize

Okay. That's it. Thank you.

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

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

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

We quarter. look speaking to you you. forward with next Thank

now The concluded. Thank for your participation. conference you has

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