United Parks & Resorts (PRKS) 7 Nov 242024 Q3 Earnings call transcript

Good day, and welcome to the United Parks Third Quarter 2024 Earnings Conference Call. [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.

Thank you, and good morning, everyone. & Quarter Parks Conference United to Resorts Earnings Third Call. Welcome recorded. is being call webcast Today's and

A issued Replay release press website Investor call press following was be release, Relations on is can available website our and available the will at on in call. www.unitedparksinvestors.com. found information be this this for the morning, our and

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

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

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

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

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

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

to pleased We solid quarter results. report of financial are another

weather and Helene X% was negative year impact worse shift a compared meaningfully to the of results Adjusting guests. for prior August Hurricane calendar weather, approximately attendance and Debby shift these would both and quarter the were impacted approximately the September. worse increased in The including impacts, by Hurricane calendar meaningfully in Third XXX,XXX quarter. combined have

to during and strong continue total we see We for operating our revenue normalized per are conditions, demand capita. growing parks

and investments spending to off areas growth the again in quarter, delivered pay per we as in-park our in-park continue related revenue record Our during last quarters. the XX to strategies capita representing XX of

and During the by sheet size we facility our our credit balance liquidity revolving cost. the increasing quarter, strengthened of and decreasing position its

capital approximately follow advantage take cash and back aggressively on to opportunistically depressed significant of to shareholders and X.X total or and at X% generation repurchased shares approximately million of or shares outstanding our end flow repurchased continue also of return buying shares June our to approximately We through through attractive free have outstanding by excess our our X.X since shares million November more shares. X. commitment than prices. the we Year-to-date, highly We total our extremely of XX%

wrapped another featuring we parks award-winning Halloween our at Halloween season week, Last events. busy up our

realized Excluding our increasingly Howl-O-Scream attendance popular our Park, we event across again our Tampa parks. record-breaking for

a Milton strengths of storm. strong, post day-to-day impact over on approximately past have resulted which from in X-week up operating the extended our our the X% the through market as Attendance an were Florida XX and parks attendance impacted basis Milton, recovered the at market significantly of period Hurricane closures with results X. Tampa impact been Hurricane that November day October by in impact

food and this exciting all our with Christmas shopping our coming Parks. specialty of events and We guests new shows, Christmas weeks, we offerings and year at and In SeaWorld our events for ages. the will rides, best Gardens and ever, attractions be our beverage believe will holiday award-winning featuring Busch our popular Sesame and begin exhibits

season summer their for ambassadors our our busy during our well upcoming as Christmas I our want events to events. thank and as dedication and Halloween during efforts

demand we're intended As seeing trending XXXX, out what extremely bookings up prior we X our ahead in look are are Cove of year. into double-digit date with XXXX percentages and ticket all Discovery indicators. pleased bookings we sales, group

features and also have new since recently and improved sales We premium launch, sales our pass launched benefits program, best our to XX% over with up which strong seen ever, we date.

and continue demand increased our differentiated and unique our the and in Our strength year-to-date of results demonstrate our the parks to resiliency for business offerings. model

initiatives do. seeing from of are lot we our have payoffs the more know work by a While and to across we enterprise, our encouraged are a -- we investments we lot

our and further XXXX monetize beyond, wrap season in meaningful in up and take assets have grow we our for brands to we value. improve advantage and significant operations, footprint, confident we valuable to deliver highly opportunities increases and are planning and ability our profitability shareholder revenue, As our our clear of

breathtaking as world, upgrades at journey Arctic of announced skies and families top guests icy to dive events Orlando. the into never flying thrill the of the includes We our immersive the lineup like XXXX. to traction the invites rides, seekers SeaWorld for and the experience, taking over attractions, new and alike This a through an before on revolutionary sort lineup depths

and Gardens fascinating reimagined While some oasis, of in for digital and up canopy a wonderland, Tampa and the at drop animal effects an interactive tower encounters of rainforest, sites the and play rush animals habitat all-new most Busch new of the all sounds the sound featuring featuring realms multi-species [indiscernible] the Bay. world's close the multilevel water newly state-of-the-art with

kid-friendly rescue waterplay realm Rescue Antonio. Jr., area rides, new all and theme at more featuring so much an San animal SeaWorld

Williamsburg. delivering highly longest and are swept where family unparalleled experience, families Wolf's the Gardens Revenge, thematic immersive into of are a world excitement at a unique Busch Big a delivering Bad America's coaster, inverted Wolf, North

glowing Sea, Jewels the SeaWorld the San graceful interactive and of jellyfish an immersive mysterious the attraction and experience Diego. jellyfish of into offers underwater world view at

a more SeaWorld ever to exciting create San to be original and will than [indiscernible] paying Journey first immersive new to coaster, the experience Also, Atlantis, Diego's elements reinvented, version, beloved before. tribute

shares aggregate total repurchased September of for the to approximately million $XXX.X XXXX, During million. we total an for we of X.X Subsequent million. approximately XXXX, aggregate approximately million an $XX.X repurchased shares XX, X, November through quarter, X.X

our The Board strongly the materially shares and continue undervalued. to company be believe

confidence our and our in have we feel business, in are undervalued, assets, current share We that it, there our value the reasonable of we at and any significant you opportunity materially prospects our look way upside is price. and

balance Our strong. be continues sheet to

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

have $X XXXX We for on year, initiatives realize and million realizing our expect to continue cost initiatives started fourth XXXX. million initiatives impact in of year more from an XXXX, approximately run to the of in new make quarter. savings this million currently additional full planned we progress $X still have We $XX and far in approximately so rate

know, cost we of have management focus management you efficiencies. deliver key ability is a discipline demonstrated to As cost our our on team, and

adoption, an continue to used increasing available increasing other in-park on number locations. some substantive update improve their on being the is of of usage an guests me functionality, and make app, In regards our experience, initiatives. to and impact. at our financial number parks you by is let in mobile targeted we progress It of to Now

XX% orders. downloaded transaction decreases in approximate excited made revenue now We're now in of has value times costs. more are app end million and and of point-of-sale its the continues about in-park times, increase we ability through QX. increases average XX drive from at The experience, and transactions to Total on to an the seeing than guest potential the XX.X million grow, for app food app been compared the up app generated to improve and revenue the beverage the in

the of app. in the are innings We early still monetizing fully

supporting marketing a CRM is customer strategy, generating our demonstrating by Our incremental approach while engagement. to existing revenue holistic more program

our We CRM and a connections that in providing insights play our to growth scale. deeper we continue guests strategy, meaningful as more to with long-term continue believe role will

projects, continue we expect on several quarters. progress projects, to more and to coming new discussions have particular, the exciting international the X new in On news share on front, to in

estate discussions with refine potential real to the On partners. continue and various we have plans our hotel front,

also develop holdings. and estate to real our opportunities other are strategic monetize discussing We

substantial discussed As we very valuable into integrated previously, unused our have hotels holdings have we and land are and monetize opportunity the excited properties. to about our

laser-focused achieving As we a a on projects. minimum capital reminder, all are for ROI

growing our park see towards excited we portfolio. and business group put business. to We grow across significant new the our our have about We group are our efforts resources opportunity

of XXXX, mentioned, this bookings As and are I channel. group in a profitable full unlocking we double-digit increase the seeing potential for are excited about we

area. incremental dedicated meaningful to quarters. time parks. success our around of recently also generate a in not More audience recently profits sponsorship from on future creating we over around we meaningful to we And generate we that opportunity This more opportunity. We have the this the focus effort is many competitors as in put focused to we result, in profits something much. parks the our have recognize opportunities and had the as have have have leveraging come capturing have our potential We from a believe this in

a generate our more I'm underway us will initiatives making operations the more we across the improve have we are many about business, efficient and very and allow that more make enterprise. excited we revenue our significant to us investments and expect profitable and

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

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

Thank you, Marc.

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

calendar and guests visitation Hurricanes Attendance was of year The year compared to the due to negative weather, XXX,XXX when the Helene, decrease peak prior worse attendance meaningfully or during in prior by compared periods approximately quarter. primarily for X.X% XXXX quarter. shift quarter primarily and Debby to related a third to decreased the

impact approximately Marc year shift guests. XXX,XXX weather increased Adjusting attendance have quarter. As compared mentioned, the prior to was the would calendar of and adverse approximately for the impacts, combined these the X%

per of increased capita in-park as products food, to third increased to when prior park and the divided offset net per capita capita due revenue compared X.X%. compared of by per X.X%, impact increased year defined admission X.X% promotional admission pricing certain increased improved primarily revenue the lower attendance total partially capita XXXX. due spending the per other to Total Admission by on pricing mix, and quarter quarter. the per when to In-park merchandise primarily capita spending initiatives

costs labor-related the million to million compared is in expenses of to Operating X.X% fixed asset third-party with due and compared costs in The increase third $X.X third XXXX. associated quarter or when a strategic a decrease an expenses consulting when by increased the offset write-offs in of to initiatives, operating in quarter increase $X.X nonrecurring noncash XXXX. primarily increase partially

decrease Selling, administrative expenses administrative The is or due when decreased general quarter and compared to including nonrecurring million million third-party selling, in by the X.X% compared third $X.X and partially to initiatives, approximately in $X.X million expenses offset decrease consulting a the of for XXXX. of third XXXX. general primarily in costs an to costs, quarter $X.X increase of costs strategic marketing-related

Adjusted the EBITDA the of $XXX.X the increases of adjusted the a to net calculate compared revenues due a EBITDA to $XXX.X and quarter of for net adjusted third generated when quarter quarter We income prior third of generated decrease $XXX.X of decrease expenses third XXXX. to in to EBITDA million, relative of compared We million declined million used XXXX. in million in income $X to year.

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

Now our turning sheet. balance to

liquidity size million and to by of and Marc position from during already $XXX quarter. decreasing further strong $XXX our our strengthened revolving the facility As increasing very sheet million mentioned, our credit costs we the balance

available total the As September million of of cash sheet. including on XX, added million $XX of XXXX, we $XXX approximately balance liquidity,

capital to Our balance with continue and The at maximize and to of the gives to allocate was flexibility net business, sheet end X.XXx. to quarter grow total leverage the for us value in our goal strong shareholders. long-term invest ratio the opportunistically

XXXX, $XXX.X the through of $XXX an November September approximately from Board, X.X of shares, our repurchase million. aggregate Under $XX.X repurchased million total aggregate approximately X.X we we authorization total the for million. purchased an third to during shares X, Subsequent XX, approximately million quarter, for million XXXX,

$XXX.X as compared end Our decrease XXXX. September of the of September deferred revenue was when a of of balance X.X% to approximately million,

products reminder, a vacation and passes revenue our ticketing, a and contains balance seasonal deferred annual products. packages, to ancillary As number of include

We to This for transitioned payments who up deferred us revenue. initial many with completion have show been a commitment. past month-to-month of continue as who revenue at also year see pass at holders their not the to does least month-to-month

of year we which to expect best ever drive for end recently has Our base and base pass the this Through compared which of pass XXXX. up remainder flat pass will base, October when and our benefits program including October from strong next with XXXX, and improved sales our launched pass XXXX compared year. products, third a led pass double-digit XX% the the all XXXX, quarter. to for October was We

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

For $XXX we expect CapEx or XXXX, of on projects. which CapEx million CapEx, will to be $XXX core $XX ROI on spend approximately of million and on million growth approximately

defined $XXX growth we and normalized continue CapEx, CapEx maintenance, to clear ROI core to million is $XXX a million expect and $XX million a with to on on or to return. rides, and spend up attractions On supportable which basis, as

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

Thank you, Jim.

closing Before I we some call the questions, to open your have comments.

XXX came the rescue sea efforts. animals nose work In bottle their birds more. I'm important seals, XX,XXX sea need. Over quarter dolphins, of to aid including we lions, team's XXXX, third of sharks, helped dedication history, of over our in to the have we hard animals, the manatees, and really these continued and proud turtles,

events which up at the start Wine planning our and Gardens, calendar Parks the are Seas excited SeaWorld in for our for Christmas Parks, for to our quarter Food favorites. to Gras look Mardi Festival Seven and including and we will Gardens the upcoming great at of their Food our that XXXX, wrap first efforts preparation winter Tampa SeaWorld during fall We're the SeaWorld at and Busch the and want about guest events at XXXX, more season thank Festival and the Bay. I inside ambassadors upcoming events, are Busch summer parks,

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

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

Now let's questions. your take

The comes Stifel. Instructions] from question from Steve first [Operator Wieczynski

of a you revenue clear experienced So over given were now your past of have weather guys table guys you Florida the expecting Marc, talked have XXXX, I'm guys you year. couple lot know EBITDA of record the probably be across a off quarters, I the and kind pretty it's adverse to about that guessing that's parks.

just trying but looking be the why is, back what well And we reason in the seeing more of mean year? not is on record wouldn't forward patterns, you're start to that question of get cost more kind reasons normalized. kind talked that my you, you for I'm Is guess weather of out demand previous there we're today about about of that wouldn't believe XXXX guidance XXXX I north of I think based realization spend get next in EBITDA you to to potentially But more terms that XXXX? assuming case savings. any as of

question. Yes. Thanks, the Steve, for

impacts you don't year, obviously, the the I given part we this out. projection, significant about in first that the have that called So our weather mean, correct. for you're record

So finish October. especially going EBITDA, obviously, Milton with noted. as record weather we'll try weather. adjusted to we're strong -- revenue as due expect year, the Hurricane longer to it's but unfortunate, can, in not good, out no as been to we that's, The again, And here but you the has record and

a As our that of this visit, attractions, weather of to signs ways that look compelling et other events, additional lot talk either heard would be some with lost grow, to and about. encouraging to on there's expectation certainly, cetera. far we as reasons then as find me you XXXX, new top would how we recapture impact we And out that,

whether So rides through to visit. around you and in certainly business, other a the our yes, get internally, you performance again, tell number, can and it's to and recovery our I our I would and all can't specific some guide we're getting reasons growing different our the be to to then record initiatives, doing attractions weather but from means things expectation back

about think So how we yes, it. that's

clear my Okay. is competition it's going kind to of And investment coming a fear about to -- you material as second be pretty leads there in think there's going that some we XXXX, is guys kind this the Orlando. think have in that online And community I the market XXXX. there out competition question. in it's Obviously, new impact of in on to increased

you obviously versus some Orlando value Look, peers of market. a have that guys pretty proposition big in your

help thinking in about against maybe about 'XX of how going think just that you're us new competition? So terms up

Steve. Sure,

of So said of repetitive things. be new some add will I some I've And in but try the things, from too. I'll what to a know this past, couple

if you been Look, here since early go I mean, we've back, the XXXXs.

market. in We've we added opened and about Aquatica. then parks participate XXXXs, Discovery And the in EBITDA have And of the market in early opened we the Orlando that time that with Orlando. our own. growth parks the online SeaWorld then to think about X in of you continued think all since You X since Cove the come we the

drive when in market, grow in said we the we can we a past, view, for to competition know to people to good as there's that's generally parks. park to to need is our that the market. we have on And people be the I've new market. It's our going demonstrated the bring view to execute And more opening already market. going we've plans this we as So in those

going It's we think, that SeaWorld. animal unique, we and coming in you're product to is going experience be be would SeaWorld and to to get differentiated have attraction year how next do ride a again, you going So asking, that? in components SeaWorld-centric. a That's to a differentiation. Like The product. to do it. to I be very It's coming be Orlando something

We have we good already value, offer with think tickets. and we noted, We our a value season tremendous multi-day as especially proposition, that really about. feel you our passes

are parks I our experience So to parks. easier are access coming It's to I an also, would a think, more in general, our I would argue, it's say, experience. enjoyable relaxed for much people.

lastly, any year. there's anything, coming next And we're park to into Orlando or obviously, details competitive again, new without going aware that

We own and strategies have own folks working our that. our on

like much And so we our have do to over the on we're confidence to -- strategies, have this of history we market. I And that. going being execute in can have again, we

all more welcome we and to we've sure is well, the we demonstrated very to in they're and participate we I'm I'm market do things offer. going feel have with crowded, people to We a different growing there's can might Epic very days that think be like share But little that the bit. going in to sure I of past, town. it

The JPMorgan. comes from next Boss question Matthew of

think if and through is on self-execution? a improvement weather. between all And I just how drivers way that together, weather, you quarter? think top maybe maybe for of fourth best saw cadence takes macro, maybe walk could through in you to that elaborate you company And line the the quarter? cited you of can trends putting for much little maybe Marc, could just October, the about puts know So there best you attendance of some is you that a the the as

of calendar a and and out I was the mean Yes, flowed shift the the the impact. that in weather you can little quarter, help there. kind attendance try to I a ebbed of third bit lot and

alluded the I performance of has shift the you -- and you related months. it, other kind So Milton is exciting, of was But think of since calendar to can more what's weather most calmed the the some was probably of down. kind July

lead a So had Gardens us we October, to put So Hurricane right? really that's time. Park have parks days, close had ready the Milton where a Busch getting up other to because start especially you we the Tampa, some quite and for then they're then long time. consecutive people coming closed. then in X not our And you tough spot are storm. And has which have And for in recovery the process, taken

in on basis, what's weeks, X So been is of remarks idea you give up. a the on what there our where, like And we ending is to tried do November day-to-day attendance the X. an that's last

X%. about said we think I

extend So into a that programs. able We popularity that and nice is on weekend. was driven first demand saw decision last on November, part, which for weekend our by, I of good Halloween think, in our the we the Halloween to were a that

So some helping amount of very helping make October. we that that's that in lost of up significant drive attendance and

side, could top Great. the how relative best Jim, just And Or cost the about to on cost speak think then to to profile efficiency continued line? opportunities? you multiyear maybe,

I would for we're as the say continued profile. thinking cost as about far

have to improve These reduce things labor some things area utilities insurance we that using to a got. our like that technology for spend, efficiencies claims mentioned, or planning next and Marc year. like we've or of could of significant we're include number initiatives our As

on, we've to we like making believe are said stages toward we'll continue remarks $XX we talked of sure they work to gross that the flow the on and about got basis, do We've would that in in planning that that. those we -- million a through, that we new although initiatives clearly

Jamie The Citi. next question comes from from Hardiman

were they or was the I quarter, of down the Revenues million guess $X in were like EBITDA quarter, from but the some were then guess, the I million, $XX to more in math So down respects. and just flat wanted pretty operations million. $X X accounting, down walk cash through third

of to to cash to the to that obviously, of a operations. EBITDA seems get EBITDA bunch maybe and coming there's from -- EBITDA adjusted but sort adjustments some sort bridge of walk of revenue in, It some of conceptually, walk maybe that's those seems and is items. like through EBITDA, us it then from where the So delta

Yes. that. can I help James, you with

just the and total the on with weather, you attendance look, shift headwinds a as those calendar little So down revenue, the driven and said, right? that's bit, by

did -- continues we're the grew pointed out, ]. quarter. So We the especially good caps, job doing That as per story, be impart I [ for our we per a of a the growing good to caps face per right? of attendance on in cap even lower

of labor probably EBITDA, guess, And got you then kind had Jim we do a walk in of. from to, things there areas. Look, some cost said. some from we've And pressures bit some job some that. are certainly, There the I there little that adjusted heard learnings better as were mention you

I forward, control only that. not like cost up, that. are costs our like we Going X%. recognize mean It's EBITDA the or are think, I out of anything

And got really good level. doing we're a pretty you've to of So lot job of managing pressures. a still a low inflationary

things got think, other this You've and and QX. and we've QX, can -- apply labor that learned we've things I in from, efforts insurance into we

think So to -- where things. about from how that's the get to of there walk kind we

Got on the if it. piece. know you to don't And I touch flow want cash

clearly on read No. into can press I probably that mean you pretty think release. the I

of if of was misheard, incremental same. there there enough. your couldn't was in something then Okay. sort it I the Fair or you maybe on prepared mentioned more real tell And I remarks estate.

Is an you find partners your terms development development. is also to also -- of Are in to continuing partnership about the incremental monetize. opportunities there discussing try you'd talked just previously opportunity communicated? But do said that other and You sort versus to develop you're of own hotel versus to track? you what then

Yes.

there's I think we land and we've we consider monetize that how use things. for I we it And we land, that have use we talked have recognize that desirable a that and And areas, how at was, to And appreciated lot about land. land what least and in right? the or alluding we much valuable of to, Board always by to you believe ways should that everyone could have or we was fully how James, recognize it's not other it others I'm that sure what hotels recognize, is. ways and

that are us we have So approach discussions those just with ideas. can or people internally as

ways the specific And so to we're just is I we aware monetize hotels. that our our other there people don't obviously it to to clear And anything something you, it's I beyond with Board think are share that assets recognize have just of. making but

The Dove question comes Lizzie next from Goldman Sachs. from

I going by the on pace point. with you're capital looks It allocation like just end keep wanted finish to the buyback to the the of year.

what route? of require So your XXXX? to you is kind could do you terms would shareholder or whether order think would refresh hotel kind of I a us have you as you authorization, just of vote? outline look of a like the that give Could priorities to in want another Or there dividend a down go

I Lizzie, take can Yes. that question.

obviously is So that simplest know it capital going to to know way are our and about. I the up sum something we is, allocation about think obviously, want to ask investors

our that have well is that they the sure like that And considering of Board it's assured options best something that and the so be will, they're they make past, what for can are aware shareholders. you in

And I a will has they think that that can you consider to worked with confident that think can feel continue I is leave basis. what go-forward I that, you on

shareholders. don't ways have continue to to consider cash best the to, they'll are I to than return anything direct what to So other you specific

of impact guess of of the of I fourth quarter? EBITDA just on it. Could of hurricane Got prices you outline mix. earlier the one ticket follow-up so events, are what which, has of ahead higher think, event. more, hurricane hit was a the with obviously, again, the think, versus Halloween kind I then questions. And rest I kind come the in kind per for of which the been kind Florida, maybe cap the of help It typically, it

EBITDA hit So seen that's cap of and kind has just impacted also of been? what guess, quarter-to-date that trends kind I per kind just of, curious you've how the

Yes. question. I that can take

pretty X a being closed years, I to So I we days. lingering then Tampa. at impact closed Orlando. October, days we been had October. we the in And Busch on impact, impacts we XX a we the meaningful start see. row haven't in over think have you mentioned, a had And for of And this Gardens as so went back, many obviously, at least impact, could that in And significant when here kind then

hard $XX-ish is pretty so $X but on But significant, it, It's or an way that's impact it. say, million clearly million would about maybe the a more. in to be I estimate. EBITDA would So or put think probably exact number to an

to kind recovery with Thanksgiving of some stuff down a lingers of Christmas are the of in now it with eye an into some got of we just Tampa on kind in or the beaches keep and reopening is cases. What if lot of

So saw very hopefully, it kind we like of impact. will a continue at beginning meaningful here to return But yes, the of normal, November. to

next The question Ben Chaiken comes Securities. from of Mizuho

in I for as lumpy lower Can and cost It's quarter, ] [ And from Anything conversion be Ali we to abnormal operations to quarter up was about the follow-up, anything talk a in out? considering slightly year-over-year. Ben than the about Was should EBITDA or cash expected. Chaiken. working to forward? cash slightly think you your then capital cash Patel wanted on I there from for flow ask going call we

really concerned -- to There's expected second to it's that on not nature your or to line. seasonal nothing discuss in nothing no, about. one take first is, I'll be

other that labor asked mean and in one, maybe similar more have did your that. I some parks I kind little like in the Yes. of question. some We first think some bit And Obviously, from on there's are quarter costs a additional lumpy. things a pressures the James

believe, -- But I only, in growth about the cost the again, general, was X%.

some just And so as will there learned apply some quarter are things tried we as things that go-forward from a the staffing that we other on far basis. some and

a obviously we continue and be cost, still we a of hallmark confidence rigor So around and have to do. what that will of lot

comes The from Macquarie next Golding question from Capital. Paul

evolving obviously, or and opportunity elevated we've strategizing headwind, around East the wanted around your consistent operating close-in the summer Is temperatures days more may you hurricanes years Coast. ask, particularly on saw basis in months Just may in now how visits of waves few on heat headwinds consistent weather seen good? the an becoming days be to from SoCal we is trying on Just view maybe really with here? a and considering there the weather, Wondering how of to you weather concentration driving certain that are when be a understand core this?

Appreciate question. Paul. Thanks, Yes. the

doing has address problem years So that. I look, a here. mean, the several we some are right, And things been you're I weather there's think to last in certainly

last I But been a will the in I good if would normalize the has I've remind Milton, here out. think in I I weather time. our you, over term, you long -- the do just think in things want mean post these locations. the weeks couple also mean, I of been long business even quite to pretty Hurricane

recent some years, times it tougher I'm optimistic will for indoor in in have to recognition example. more the had do we that we're attractions, trying that So Until eventually normalize. time

So has to we Orlando this component an The attraction SeaWorld indoor as we to in year have Orlando an opened next it coming well. indoor attraction year.

day And then invested in things we structures. programs shade all have like and cool stay -- drinks drink can have we've that. where you in invested and We've

listing we there's we the certainly different comfortable all recognition there's are to doing. things regardless we're here and make but want that and doing them. And So come it weather things for of people of I'm not to them,

would obviously, good weather, on the Your like have the kind point we about of peaking you of the where -- peak. idea days we

good, to there's the the have more we park example. a people for try the lot when park of come really get So and of weather to people in economies to if scale is

I considering. taking So would But the immediate think all actions with do normalize do that leave you period -- I some things we're here. are we of term time, but things over these in

how But as visit, type but visitors given maybe for product, getting weather part as what that about are an product. a generally well? type when thinking you prior as in the product -- about thinking around Obviously, higher-yielding follow-up that the bookings in and capacity, we attraction then And capacity appetite itself. context lower but higher-yielding this is the Cove how are How Cove, about maybe of mix in of strength think you of type Discovery conversation of a versus you the category? year is do and Discovery lower

mean Cove I would right? you top-rated what tell theme one Yes. It's parks. is is park, Discovery wonderful the I of a

visit. It's can go to and over call a experience, it, You like all certainly quite attracted following inclusive as a oasis I the this is has years. great

essentially around point. that in we you days. where can where pay dynamic is might more weekdays, in would to then your willing open price think the be I days increase prior opportunities seasons price there, still year, especially might to capacity, than peak. but the the on we shoulder what there year And And we pricing, the less peak limited over or have round, park be is It

ability we that to like kind So our park. of manage

Epic international international think in comes the reasonable been which or perhaps attendance with year, Cove part also, has Orlando extent to attendance popular a I more opening. international more guests. happens next would with back do pretty seem That Discovery

another, in with So its that's I something favor in internationals. think, --

Wold The next Riley comes B. from Eric Securities. question from

think into to guess you've when more recent that spend? you that and on the kind price to to subsequent sensitivity that the in to that you of maybe where I the value cautious over guess, what I or tenants relative you year do expect seen forward proposition admissions a been talked Do you import move next you on on Orlando, know to 'XX market. obviously, lean has noted, take or it Looking have I also, in and the X? about price room you around? little price peers drive 'XX, be

Yes.

mean I if I So I'd have Eric, mean, a things. I one, mean, Orlando, opportunities. specifically couple you're think at I talking look think I in we of

Universal We proposition to are at think and a still value continue. Disney, will only I that and

think well. So our as and the we it time to expensive, value, increase over they have our that showcases get as ability more prices I

So across of in but pricing. only pricing -- Orlando, opportunity grow across not to I key that's strategy we is tenet what a and of kind certainly grow about to continue that's our feel to good think the we most of markets, our

going Again, focus revenue. total to we're always on

that driving do price but to taking certain total things may not certainly, remain. product we that sales even or opportunity be of take medium I will of we involve simulate different price think, term, So revenue. the all long over to a there discounting, more to times are the guys But may our feel

a Got And then it. follow-up.

and next percentage out call transaction value What go and do transactions the over app that food called and for of years? currently in beverage the And through few of going average consistently could POS? the beverage. the kind You on on downloads XX% of and app number the where think increase food are versus the you

Yes.

that average on they more use saw of I let like certainly app. available to we're me penetration. but of think, comment and also more, see places. the try has think innings on kind of But think app I there's it, all it lot the it more still, talk that app in people We seeing, and engagement tend call, a to just early we're value, using the said kind mobile there emphasize buy to the I I the Let trying and -- Jim I'll transaction can in And people ordering, I then through when on the do. about make I and And people the do do helped did for can things we're right? it we more

here, places over near make it idea available you be day, will. as that the if can would the many think to medium we I all to as term

just not certain want at that make sense. it's day that it of at if We makes times the more permanent, to So certain available restaurants.

to But talk or... of kind about how it are do people want -- Jim, using the you many

a maybe penetration that our or at zoo and that's not X/X include both categories other from things other than only on less penetration would food a Yes, we quick say of but would all offer app, like I little from the all standpoint, you're almost things that. beverage, queues which looking experiences or

Yes.

a grow, like, bit to of sounds quite it So room yes.

Yeh The Thomas from Stanley. next comes from question Morgan

has X ticket, on of at changed A The get in more X that any advance? digits mentioned your overall all in into be given or your double any intended quarter helpful. forward the as a on attendance ticket sales, What you date up well. or And sizing mix commentary. how visitation purchased few booking lead help would times even purchases? translates pacing is months typical date-specific that's portion base XXXX more the Have

tickets look, we planned for Look, more give long it's advance you're But reasons, said, is exact those versus I of I the if people are, depending number Florida. probably out planned from you further -- one indicators. the Like a you've who -- it's that know in who competitive vacation, buying obviously. don't somebody

the So it's by person visiting the type going to of vary park.

pleased of the things leading sales anything we have, of can don't share indicators, in sold is just of this bookings that. year certainly think you a other But of with have don't at give Cove into. last mentioned. of are it's along I being what with that lion's not Discovery indicators these and or I one I We tickets ton translates a general, it's like we're one but some we our have. think time. more than we I that don't that know it those that But what is

premium have I that is of any pass product smaller you just And your season portion is I can then mean a season digits fair but pricing update, And the say but Understood. double overall pass versus pass pass on maybe as the the blended share Okay. growing program? flat the square offering? units on uptick premium it to do it, the on you so far? missed season us help pass might

Yes.

as add to And pass. that's say we labeled Jim we let flat, as number if preschool a anything -- bit. can well. has we All our referencing we and he have help then when have me right? we that teacher have have our you we generically passes, our our with being pass, of was So gets fun remember, as pass, But kind that add, Jim pass, little premium the cards, that

And so passes things, couple square to with how you premium the have up. a that of being

that They the more a visit we buy be selling the passes. that So good sign loyal. in people tend tend expensive The passes that to more to more I think of are more. that's

those benefits So these with up are you are And move as increasingly passes better. benefits. tier, the

entry revenue very And we so fun level card, like than any. total which like if with season basically play little a you bigger pass is if a that's an sell benefit,

So passes, even less the premium selling expense cards. it's fun we at if idea like more of the of

We're sales to So the the in spring have now, will launch flat we things base that categories, very kind up over we and into and continue be pass we think time. would process, our We'll other expand premium like like especially as own that. to is ramp to next would the see. the our still hold the can would get idea and grow of early in but if

Friday. big have coming a We that's day think up with But about how Black of it. kind we

Chris from Bank. question Deutsche comes Woronka next from The

of you kind the maybe just I was ROI the on of more a an some or give just premiumization kind for else? of could give know hoping on something a of second and parks going for we target given for us you've of one little may this CapEx. of a you ranges down ongoing. the on Can for are those the little of things at drill piece? involve? detail kinds that us those things a I cabanas What idea bit it's Is strategy, whether what to? kind year Can

Yes. are And talking 'XX? 'XX specifically or Chris, you

guess -- do, -- trying out to to the I involves. kind yes, Jim, figure I'm mean, just what generally, mean, you that that want more of whatever I I all

Yes.

of generally, our and to efficient ROI could beverage those revamping our lot short that's to food quicker. and it, and more So lines through to guests to get be one, beverage when provide for allow we facilities, offerings section update the in of new opportunity be generally And going found spend capital is this large projects. food offerings, a a

go more there's are kiosk, of up if So or opposed cart full long. a lines an into the to too buy meal to opportunity to as

going to of So that that's ROI capital. up take some

things at buy ride for efficient our did call, currently exit ability an that utility to make efficiencies Place the soon or have to or we or or tangible a looking in then be to items, as retail that in our up in progress, through a we are like Sesame that technology attractions experience. parks sure also We're coming like entrances for number are main using mentioned either from our there's turnstiles reduced through labor in earlier spend. And in our in automatic our about I more power, solar of expenses memory in

just a that. quick follow-up. And Appreciate then Okay.

where and a you mobile You be to But play a maybe pricing about you opportunities kind are of some the a about strategy some forward? coming can app. talk talked dynamic the a bigger going lot whether of that are through pricing little that's the role bit of on the and the going in

pricing Sure. Certainly, have we efforts that. around, opportunities to is be to dynamic something and continue we that do more and think more do to going there's

example how today you the you're line, an example, of buy and we in you're standing would if but a is like you maybe that busy the dynamically you'd silly app you're a it's you're and you in So or don't right? on -- be now on it's line longer app, I here is, price pass silly depending and And not If accordingly. line on park front a time, the through lot the wait example. give can could than to of have the and app

a that's, I So think, pretty simple example.

other that like areas. things the components So you do app using around have some to or even

ticketing And opportunities. just outside dynamic the app, then you I have even think of

on we we time. us the So more help I again, can can think, over to dynamic our get at to can will park, the that, that price flex pay come times. we certainly you And

continue focus forward. it's certainly, on something So will going we that to

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

thank On you the management United and Resorts, Parks us morning. Okay. at Thank for I the Jim you. rest behalf of of & this team to want joining

to and strategy, stakeholders. believe long-term heard with quarter. speaking you, we you and we you As which look are and value for long-term forward will improved drive results operating we our Thank confident next financial today, in

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

disconnect. now may You