SeaWorld Entertainment (SEAS) Misses Q1 EPS by 17c

SeaWorld Entertainment (NYSE: SEAS) reported Q1 EPS of ($0.72), $0.17 worse than the analyst estimate of ($0.55). Revenue for the quarter came in at $186.4 million versus the consensus estimate of $205.97 million.

• Total revenues were $186.4 million, compared to $220.2 million in the first quarter of 2016, primarily due to a shift in the timing of the Easter holiday into the second quarter of 2017 which also impacted the timing of spring break for a number of schools.
• Year-to-date attendance through the end of April is essentially flat over the prior year period.
• Exciting lineup of new attractions coming online in the second quarter.
• Season pass sales revenues are up nearly 6% through the end of April compared to the same period of 2016.
• The company remains on pace to achieve its cost optimization program net cost savings targets for the year.
• For the full year of 2017, the company expects Adjusted EBITDA[1] in the range of $330 million to $360 million.

"Given the improving attendance trends we saw in April, and the incredibly robust lineup of new attractions we are launching in the coming weeks, we are well-positioned going into our seasonally important second and third quarters," said Joel Manby, President and Chief Executive Officer of SeaWorld Entertainment, Inc. "Our season pass sales revenues for 2017 are up nearly 6%; the cost optimization program we initiated in the fourth quarter of 2016 continues to have a positive impact on results; and the successful renewal and increased capacity of our revolving credit facility and refinancing of our existing term debt in late March of 2017 enhances our financial flexibility. Our strategy and progress received a strong vote of confidence with the acquisition by Zhonghong Zhuoye Group of Blackstone\'s approximately 21% stake in the company at a significant premium to our current market price per share. Additionally, the advisory and support agreements we entered into in late March of 2017 with Zhonghong Holding give us the opportunity to carefully evaluate new strategic growth opportunities in China, Taiwan, Hong Kong and Macau."

"Our Board and management are intently focused on increasing value for our shareholders. Looking ahead, our revenue management and cost optimization initiatives, as well as one of the strongest lineups of new attractions we\'ve ever offered, give us confidence that we will achieve improved performance in all elements of our five-point plan," Manby continued. "We expect to drive attendance through the continued introduction of fun and meaningful experiences for our guests, and will work to improve ticket yields through increased use of new strategic and tactical pricing initiatives. We\'re very excited about 2017, and look forward to reporting our progress throughout the year."

For earnings history and earnings-related data on SeaWorld Entertainment (SEAS) click here.

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