SeaWorld Entertainment Inc (SEAS) Reports Decline in Q3 and Nine-Month 2023 Earnings Amid ...
Q3 2023 attendance decreased by 2.8% and total revenue fell by 3.0% compared to Q3 2022.
Net income and Adjusted EBITDA for Q3 2023 saw declines of 8.2% and 2.8%, respectively.
For the first nine months of 2023, SeaWorld Entertainment Inc (NYSE:SEAS) reported a 19.8% decrease in net income.
In-park per capita spending reached record levels despite overall revenue declines.
On November 8, 2023, SeaWorld Entertainment Inc (NYSE:SEAS), a prominent theme park and entertainment company, disclosed its financial outcomes for the third quarter and the initial nine months of the fiscal year 2023. The company faced a downturn in attendance and revenue, attributed mainly to adverse weather conditions that affected its peak operating season. Despite these challenges, SEAS managed to increase in-park per capita spending to record levels.
Financial Performance Overview
SEAS reported a decrease in attendance by approximately 0.2 million guests or 2.8% in Q3 2023 compared to the same period in 2022. Total revenue for the quarter was $548.2 million, marking a 3.0% decrease from Q3 2022. Net income for the quarter stood at $123.6 million, an 8.2% decline, while Adjusted EBITDA also fell by 2.8% to $266.4 million.
For the first nine months of 2023, SEAS saw a 0.4 million or 2.1% drop in attendance from the previous year. Total revenue slightly decreased by 0.2% to $1,337.6 million, and net income experienced a more significant reduction of 19.8%, amounting to $194.1 million. Adjusted EBITDA for the nine-month period decreased by 2.0% to $563.1 million.
Key Financial Metrics
Despite the overall decline in revenue, SEAS achieved record in-park per capita spending, which increased by 1.6% to $34.85 in Q3 2023. Admission per capita, however, decreased by 1.6% to $42.05. For the first nine months, total revenue per capita increased by 1.9% to $80.36, with admission per capita and in-park per capita spending also reaching record levels.
Strategic Initiatives and Share Repurchases
SEAS continued its focus on strategic cost management and repurchased 78,750 shares for approximately $3.9 million during Q3 2023. The company also highlighted its rescue efforts, aiding 56 animals in need during the quarter, contributing to a historical total of over 40,000 animals helped.
"We are pleased to report another quarter of solid financial results despite the impact of unusual and significantly adverse weather in our peak operating season across most of our markets," said Marc Swanson, CEO of SeaWorld Entertainment, Inc. "Our results during the third quarter continue to demonstrate the resilience of our business, the effectiveness of our strategy and the tireless efforts of our outstanding team."
Outlook and New Attractions
Looking ahead, SEAS is optimistic about its 2024 revenue bookings and the launch of its best pass benefits program. The company is also progressing on strategic growth initiatives, including hotels, international expansion, and digital activities. SEAS has announced a partial lineup of new rides and attractions for 2024, aiming to enhance guest experiences and drive future growth.
The company's financial results for the first nine months of 2023 were still impacted by the global COVID-19 pandemic, particularly due to a decline in international attendance.
For a detailed analysis of SeaWorld Entertainment Inc (NYSE:SEAS)'s financial performance, including the full financial statements and reconciliations of non-GAAP measures, please visit SeaWorldInvestors.com.
Explore the complete 8-K earnings release (here) from SeaWorld Entertainment Inc for further details.
This article first appeared on GuruFocus.
