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SeaWorld Entertainment (SEAS) Misses Q3 EPS by 18c, Revenues Beat

November 5, 2020 6:53 AM EST

SeaWorld Entertainment (NYSE: SEAS) reported Q3 EPS of ($1.01), $0.18 worse than the analyst estimate of ($0.83). Revenue for the quarter came in at $106.1 million versus the consensus estimate of $99.16 million.

Third Quarter 2020 Highlights

  • Attendance was 1.6 million guests, a decline of 6.6 million guests from the third quarter of 2019.
  • Total revenue was $106.1 million, a decline of $367.5 million from the third quarter of 2019.
  • Net loss was $79.2 million, a decline of $177.3 million from the third quarter of 2019.
  • Adjusted EBITDA[1] was a loss of $11.2 million, a decline of $218.1 million from the third quarter of 2019.
  • Admission per capita increased 22.4% to $40.39 while in-park per capita spending increased 8.9% to $27.55.

"I continue to be extremely proud of our team's resilience and performance during these extraordinary times," said Marc Swanson, Interim Chief Executive Officer of SeaWorld Entertainment, Inc. "The actions we have taken over the past eight months related to costs, cash flow, balance sheet and liquidity, re-opening protocols and operations have put us in a strong position to successfully navigate the current operating environment and emerge an even stronger business when conditions normalize."

"I am encouraged by our third quarter results which demonstrate steady operational and financial improvement. During the third quarter, we successfully and safely re-opened three more parks to bring the total number of parks in operation to 10 out of 12 parks in our portfolio at the end of September. All of our re-opened parks are operating with enhanced health and safety protocols for our employees, guests and animals and are operating in accordance with state and local guidelines. Monthly attendance improved throughout the quarter relative to prior year as we re-opened more parks and our guests demonstrated an increasing desire and willingness to visit our parks, including attending our reimagined events. We are particularly pleased with our recently concluded Halloween events and look forward to starting our popular Christmas events next week."

"I am also pleased with our strong admissions and in park per capita performance during the quarter, despite COVID-19 operational impacts and a higher mix of season pass visitors in the quarter when compared to prior year. Our pricing and product strategies are working and our guests appear willing to spend when they visit our parks," continued Swanson.

In addition to re-opening three parks during the third quarter and resuming special events, the Company maintained its focus on reducing costs and managing cash flows while also strengthening its balance sheet and liquidity position. During the quarter, the Company further extended its covenants and raised additional capital through a $500 million notes offering, which leaves the Company with approximately $800 million of total liquidity as of September 30, 2020.

"I want to sincerely thank our ambassadors for their continued efforts to welcome back our guests and care for our animals while also remaining resilient and creative in adapting our parks and our events to new operating and safety protocols. I also want to express our gratitude to the many loyal pass holders and guests who have returned to visit our parks. We have been building attendance since June through our efforts around providing a safe and fun guest experience while thoughtfully reintroducing our modified events across our theme parks. We will continue to sensibly navigate the months ahead as we look forward to the time when our parks can return to a more normalized operating environment. As I have said before, we feel very well positioned – with the right assets, team, balance sheet and liquidity - to navigate through this environment and emerge an even stronger and more profitable enterprise. We continue to have high confidence in our long-term strategy and in our ability to deliver significantly improved operating and financial results that we believe will lead to meaningfully increased value for all stakeholders," concluded Swanson.

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



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