SEAS - Earnings call transcript Q3 2017 | United Parks & Resorts Inc.

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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to SeaWorld Entertainment's Third Quarter 2017 Financial Results Conference Call. My name is Andrea, and I'll be your conference operator today. All participants will be in listen-only-mode. Please note this event is being recorded. to conference like to now would turn over the Mr. I Investor SeaWorld's Vice Trinske, Relations. President Mark of Please go ahead, sir.

Mark Trinske

available call and and and this information to was our XXXX in Today's Investor SeaWorld's found you, issued call third being will Thank good following is press the on at the quarter can earnings morning, this morning Relations our conference be available press website live. website for A webcast everyone. be and Welcome is release release recorded on call. Replay www.seaworldinvestors.com. call.

the Joel Joining morning Financial our this we Executive will quarter me call Chief today's and up Officer; On Marc are will to Chief Manby, our your results President third our we financial Swanson questions. and review call, and then Officer. open

I'd a to today risk cause These that of may time-to-time Annual posted section to risks of made available our XX-K statements, We no XX-Q any the the could factors Commission. that website. our begin, from those filed updated in forward-looking within statements undertake we on including These number to actual and be with filings to obligation laws. our update the forward-looking Form those results the everyone like are and the Exchange identified and comments statements. will on SEC and statements reports from remind Securities quarterly Report subject be of with Form in federal meaning differ contain factors on materially will uncertainties Before and securities our forward-looking

be regarding comparable our are Relations measures SeaWorld feel non-GAAP these additional the free conclusion at will financial EBITDA to on you and reconciliations in release financial are of cash included which the with the and to our today, Also, on SEC. contact the Investor call free website, In statements call, any and questions, found filings we please adjusted our of the after measures most forward-looking can also addition, if measures. earnings in available GAAP More our information have non-GAAP flow, XXX-XXX-XXXX. reference

would like to call over Manby. I Now, the Joel? to turn Joel

Joel K. Manby

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

Before in their preventative measures to Florida and both wanted animals moment and employees efforts for extraordinary I I and to take Texas. for undertaking our our recovery thank start, parks a in

This parks quarter's severe as have events would some XX/X possible. worse animals results, been without some quickly it worked literally had our and the people, a reopened lot unexpected and as commitment on impact to weather deep of protect get our but our who and dedication our

I'd the financial to and this company-wide, results; significant we Turning expected weather the results operational context. hurricanes, impact first, our quarter's be. were results from largely what underlying like in them to our to put Absent

a be by decline Diego As continued we overall the concentrated attendance, quarter SeaWorld and third anticipated, to impacted international in in and largely San parks. our domestic at attendance Orlando

discussed in reminder, the we define a attendance XXX-mile we market. late September forecasted guests radius beginning and August, Southern our outside a improved by our SeaWorld California Also, series. of October and As event parks. Diego decline with impacted as San of was our further from domestic as Halloween attendance into trends a

and to through compelling advertising. enhanced to strategies, business growth committed new and returning products, are pricing We our marketing

advance drive of our plan. Over continuing to stabilize the last began business, to last we our few while targeted the quarter, sustainable months, growth, elements outlined core implementing to the we actions and five-point

our to marketplace in new maintain well rides sufficient attractions, one in domestic the last available the noted I attendance element needed To itself. indicated to point, brand us our decline Planet, adjustment of to about that quarter, perception response to to be that address commitment positive SeaWorld's specifically new key As to we had positive where helping is campaign data an we finalized the highlight issues that and animals awareness in we San a soft-launched strategy and national feedback advertising save SeaWorld From Planet and the protect as we and in generating as is marketing a marketing designed conveying must exciting Diego, From planet's already to our recognized to to and early Park and to share-of-voice to Park spend. our inspirational We October. continue that by national message oceans. the

buy when a an is times when watch just attractions-focused we our seen website conversion rate people then to Planet advertisement, and six higher ticket our Park Specifically, than we've the on market attractions. to

Park this While success, consumers. fully-integrated summer that to local very XXXX, launch market, we of Planet's first the this of sampling vacation spring is we're quarter and a park a with activation PR message a and plan will advertising in inspirational encouraged break resonating our in is small on ahead Based planning. nationwide

in spots giving Metrix's the highest-rated campaign. at One in we see database, the us the hospitality group's Investor yourself, as of breakthrough you have and ads back XXXX, third Relations We encourage a www.seaworldinvestors.com. confidence you ranked of survey the look. further potential this for to are these which of new ad so available the spots links great of single that topped Ace history can website and to dates in our take They on quarterly research was travel quarter

families vacation are with Beyond which period frontloading next to year our marketing break spring a and plans. coincide we content incremental and enhancing our make most in reach, advertising summer

our we updates are We evaluate near awareness, real-time impact employing adjust that customer obtain of weekly quickly can the if so needed. messages also and on to advertising monitoring

and Fun model revenue products. are very and implementing In in year, Texas a driven help unit higher-revenue our a to in four annual are were leading and three months. the ticket where versus quarter, have pass simplify annual guest successful last we changes with with introduce the XXXX XXXX. pass higher mix, and San higher last Even have after SOCAL a Card initial Overall, Diego, Following our this we California pass encourage SeaWorld increased by of Trends to our from a parks a parks higher-retention work we increased of pricing pass upgrades pass choice to these presales very consultant, pass modeled up a from admission-per-caps guests in in positive. in in season we sales our Florida. similar across all begun good-better-best high-single-digits which shifting

Our program, pass member base, compared a metric key our is in the up time Annual also for same Pass to XXXX.

our We this reduce Now, and significant we enable anticipate duplication on our restructured made we efficiency, reduction functions, in and have October, cost to efforts, us increase will of progress. operations. improve workforce

I'll marketing without With increasing cost these that return call our to look that, over like initiatives cost give to We overall in into then expect turn revenue to Marc of growth activity I'd of XXXX expenses. you ahead. financial increased Marc? to redeploy drive and savings to discuss offset some a the to results. the

Marc G. Swanson

Joel, Thanks, and morning, good everyone.

the with As in expectations, Joel mentioned, absent were weather company-wide, impact. line our largely our results

attendance expected, lower in we attendance U.S. United Diego. nine the declined also largely Kingdom now XXXX, declined quarter in the Kingdom. the of from third down third the attendance, by International and months. and in year with company's to XX% the XX% the international due is declined markets to and related third multiple first compared for the parks primarily quarter quarter domestic As prior Orlando United San to concentrated at majority Attendance

first of As of by declined X% Latin and quarter attendance. reminder, our America XXXX. XX% total Kingdom the XXXX in attendance This same a to in compared the of annual attendance the period is first to nine a nine XXXX. the historically, of approximately for XX% period third months X% versus compares same the now from decline months in United XXXX represents the down

$XXX.X third was revenue compared The decline decrease $XX.X XXXX. $XX prior-year primarily as ratio on times revolver. generated income the quarter $XXX.X compared the to decrease and third XX%, operating quarter. of credit net net we $XXX $XX.X limit, our per agreement $XX.X or of our million And million generated During year in to from $X.XX in or Adjusted the share, lastly, decline cash of by share $X.XX XXXX to million, of compared the million, under quarter. We prior provided million our or the to Net was a X.XX covenant $XXX.X we quarter activities quarter. in drawn quarter, leverage the million, of per zero was results a revenue or within the million attendance. prior-year in million $XX.X diluted third of million compared the in for XX%, diluted have EBITDA

itself We address or options been the are review closely present to have actively attractive ratio monitoring and engaged our to leverage need debt arise. opportunity should market debt our an advisors with financing

barter quarter. Our by per $XX.XX third in $XX.XX capita capita to X.X% capita to to pass per XXXX. offerings including revenue of per primarily $XX.XX higher of when a by promotional and decreased attendance total declined quarter ticket the compared Admission the total compared XXXX. free to in quarter prior-year revenue of mix decline X.X% The results per $XX.XX to and with in-park mix compared to decreased revenue the season spending from the less of guests, capita third along

basis, Joel were in In of the disruptions this our point by in out Harvey, it monthly on months. severe Hurricane same year. in Texas, closures of parks. and combined quarter unexpected However, The closures the caused impacted well than four at our Texas, and last XX and impact Virginia. we QX park in have by events October and which the of XX the a Florida, capita Florida, closures including events weather should as which Irma in more per last Earnings days Hurricane particular, month as caused weather closures Tampa; looking that resulted quarter, mentioned, as admission increased weather in park and of impacts in three Virginia days Orlando in weather double park park travel of caused

currently mentioned, members' storms attractions of were as through adjusted limit approximately impact open to end low of Primarily Joel narrowing the scheduled to able impacts, our weather unchanged range. recovery However, XXXX extraordinary EBITDA, the are reflect largely as to we team a The our the these lowered impact of measures, planned. and to the of end $X top are and result our we as hurricanes. our of the guidance remains was guidance million

program. $XXX noted similar year, non-GAAP estimated These adjusted are cost the in adjusted only as earnings GAAP EBITDA to XXXX, our restructuring estimated full EBITDA savings recent the to a savings that million So, we note results. prior to impact for million adjusted add-back now the our $XX expect of not release, Please million. that in the year does in will item reported of include QX range related $XXX we EBITDA cost

So, progress the XXXX. pointed cost a expense fully to making on reduction savings ago, net moment in end achieve $XX we to front of expect fixed Joel million and the solid are as by

stopping. here, great had success have are we we Although not

actions the we restructure As we in noted advertising. spent million $XX these an last will of October quarter, we gross to took portion identified includes A savings additional and savings, have workforce. cost marketing in our be on which

Joel. I like call to back Now, would to turn the

Joel K. Manby

Thank you, Marc.

Before comments. to I I open your up call a few questions, closing have the

shareholders First, board of of Capital, to will front, top it nine business. business, public governance directors. an And and to fundamental the and as of the Founder look all seen to working of Scott may accounting, on has our we behalf experts other We also is board The operational and the Hill the and in committee. whom our and directors, attractiveness morning, international together on of Managing our and investors, marketing Path blend insiders and serve board's front, that confident of SeaWorld board on Partner Ross, theme finance advertising. appointed are Scott of announced second, you directors SeaWorld's on is this of comprised have forward industry brand Scott in important board stakeholders. independent. park remain revenue the welcome excellent eight its and executive-level of company now

and plan meaningful believe addressing financial sharp drive and guest a maintaining experiences, challenges discipline. We continue by while to can growth our focus fun on reputational five-point creating

of September. Halloween launched $XX Diego. Christmas an our up we to pass exciting we our looking And XX% fund since And XXXX, us of less During with marketing the as have additional October from for and growth quarter we signs than as will with explained, new advertising at enable company Marc expected, our actions this initiatives and net restructuring typically SeaWorld million more in overall rollout savings additional savings in improved business, annual initiatives to and and of no sales than in cost December, have attendance implemented late new expenses. on-target the challenges took the end November spirit which targeted friends and represents for And significantly savings the should trends the fixed the Parks us up to cost quarter, XXXX in we're are aimed experiences the return believe year of to momentum, we goal San events footing. our that debut and our overall through after early addressing by their Christmas expanded the with lineup theme more. Rudolph enable Red-Nosed will even to a on popular SeaWorld solid the families the finish enjoy for seeing Reindeer

to And to believe we're advertising with the marketing attract Place experiences. and fun of that the already are evaluation China. I'll locations prudently updated Notably, with across this to Dhabi, positioned Parks next we're exciting create that America and our We XXXX. SeaWorld longer for are over ensure our making years are in park, compelling year confidence open development for reviewing a investments us work our every development Sesame meaningful the that, product call and to cadence in new And We potential Orlando domestic to new of pricing guest attractions of response, our term, five continuing generating lineup, in Abu we all improve strategies, new more customers. questions. track up promising invest SeaWorld we continuing performance positive on and the we're give well are for significant in regular

Operator

session. We question-and-answer will begin now the

from Hendrix Barclays. ahead. Our Felicia first comes Please question go of

Felicia Hendrix

question. Good Hi. thank and for morning taking you my

But guidance, go the the does First, hasn't sheet, the imply of changed. about of error just covenants. there, did your narrow balance kind to wanted but a margin the you I it very in which of in terms touch remarks prepared low-end of back

So, just second, upon a could you I touch if was wondering that for please.

Marc G. Swanson

Sure. is Yeah. Felicia, this Marc.

would compliance with So, that. still feel yeah, at the be and low-end obviously of covenant, in we good we our the range guidance about

would down have the our a to some those million we good narrow I to get conditions take to we you a look You're right. is, there, into have of of that and guidance, start you range market and think advantage does perhaps that a conversations what is some There and now. action. can $XXX cushion confidence tell when take lot we lot is I opportunities to – where in continue today going we're have we about out had evaluate of and But

having do can pull. So, we're going we confidence have trend to that one, levers problem. we we have start not some to a have we towards If

Felicia Hendrix

I'm know some efforts a advertising just, of and next how Thank you. And, mainly with attendance but just that grow solely program not seeing, asking are what you can what And from that you've commentary Park you momentum of you're year, or some Joel, your you had just make today, to making you from the wondering gave year? attendance the Planet on comments coming you're about on based that the us around kind would next be lot efforts? based other to just on And some confident fall you holidays.

Joel K. Manby

Good parks to XXXX, well. your SeaWorld the as confident Parks, other just not but question. great about hear very our Felicia, Well, voice. We're

on However, where Orlando are our the the we've places Those San primarily focus Diego. attendance and most is seen drop. two

very markets this strong We country, any with tallest X incredible Diego; hooks. in Infinity like level in Orlando, in coming ride marketing rapids. which then, water product Electric both of in San Eel is Falls of kind and drop the longest, have

and had per one on marketing progress XXXX. very in that, of domestic well well are that three which Park it we plan and barter about we hook PR some we last encouraged good we're to haven't our very So, issues initiatives, all as even initiatives, admissions a marketing On stronger months to up on have PR top And customers. we at Planet, our But much touched of it's the I'm briefly. a will year. improved in the as done market month, that in with seeing Marc four lately pricing we cap, this have

strong cost And improvement. there. course, of great where good shown it's we've positive so, our And signs control,

PR, primary we absolute feel our cost very and XXXX, So increase pricing marketing in well it's focus. our performance our initiatives, strong positioned between control, and product, to very,

Felicia Hendrix

And to price is in and – you was when how you to there price-related. Thank that. study Park how that the increased about for the buy – ticket, that a was was Planet you the effect that doing intent much or there how were – talked just it wondering of much housekeeping, just price was just it any I'm

Joel K. Manby

is had very the make daily stepping local it because difference the in had but strong running Planet, all that basis that's XXXX. On Halloween purchases, it double-digits only how strongest Halloween attendance not and in in was think, up up this a literally year. October in establishing was is increase and PR tickets, did Diego the the same it exact Park actual we're on was we're we a San and October. stronger And remarks, test campaign. and a how and We are minute, is we've rate. we campaign, year San encouraged Diego by and times in marketing we're a proper, comment six day-to-day back product same was I the ticket in prepared better difference double-digits our did in a to I last The for conversion and running a ticket, This October, only price

to I'm The to to very, we're going a Attendance positive XXXX San the Texas because be using is Park up. good turn, in be up. part a well going EBITDA up. is exact to that's news Orlando. as to not key we've encouraged SeaWorld is we direction. going Now, proven a be is is in the can market predict us Diego that outcomes very as necessarily but for future, for turn

do our is as the we're our strong of we as to around. – XXXX, all it's we're to And And that in turn to initiatives to in grow our it to product, And they SeaWorld we going cost with we're flow. Texas. we with Parks with revenue. EBITDA show grow of stock a intend effort clear other energy undervalued and good well-marketed, we've going in going So, and start are, attendance, all can two really mind, the and proven growth the once will our

Felicia Hendrix

Thank you.

Operator

comes from ahead. next Please go Swartz question of Our SunTrust. Michael

Anna Glaessgen

is This morning. for Good Mike. Anna on

and bit more initiatives any on give spoke little you to response for a in how You maybe new positive color Could a San through that's well? already you Diego. Florida spoke marketing the driving that coming as about

Joel K. Manby

Yeah, Anna.

We started have October. It that campaign. running a launch in not was soft

going to national make are We campaign. a it

have reductions they're show visiting. we and with of We the to they but don't what know in combined committing changes the to portion of spend, we How strong international. from specific another but broad, a we product. we Planet, for we because net through just to in we're Orlando offering plans. product about haven't we cost detail to a will $X breadth some to I visited are and go depth get address that have. the SeaWorld million. Park very media $XX need when about breadth SeaWorld, as hurt the depth What Orlando level, don't worst to very we Planet, we're want is will much our is shows excited not domestic of A – Park And finding and we all and can that them the we, only visitation domestic on and marketing our people million advertisement reasons, the that do, is competitive where are too said getting in found help national broad

that's So, domestic. for

our we with competitive. to make front international Orlando, distributors the is our On working sure hard for pricing are

because our think We sure ticket the can, as have can they with as do are influence the here, to efforts we local make we do possible marketing we advertising. when to customers many hotels getting intercept come. that's best where we're the with most international impact most down doubling working on on our billboards domestic intercept But we'll

Anna Glaessgen

just then high-single And spoke where for presales makes housekeeping, that were correct? of you was XXXX up digits, sales California, sense. it, that initial just to pass The Got not overall kind

Joel K. Manby

And we're across up in that ticket year, which as significantly double-digits and We're board. high-single company near digits, or purchases performance. Yeah, in incredibly almost double-digits. up nowhere encouraging a solidly single in low overall, kind California, last up we're at this in California. the over of is we point were – revenue obviously

very Eel of Planet proper area excited way that Electric marketing I've in attendance So, the is we're Diego to of growth San as course, in out pointed October. well in already Park double-digit about as, the increase

Anna Glaessgen

Thanks. Great. for That's me. all

Operator

Our comes ahead. of go from Steve Stifel. next Wieczynski question Please

Steven Moyer Wieczynski

guys. morning. Good Yeah. Hey,

Marc, think heard impact I talked weather I the you if So, about the was million you in about $X correctly. quarter,

Marc G. Swanson

Yeah.

midpoint $XXX and million So, would – had million. from way was And that kind I midpoint is new our if of the the midpoint $XXX.X million previous difference that is, to $X about guidance you basically $X million, midpoint we think the between is guidance, weather. the

So, impact, narrowing weather of drove our I absent that's there. that what mean, most

Steven Moyer Wieczynski

Okay.

to domestic in to decline, the and us that you of look when the was so release help which about any the X% is talked X%, of was weather-related the slowdown the I And terms at drop in of attendance? how understand much kind close – kind which to going of that international point, versus way in guess, you there attendance

Marc G. Swanson

No. Yeah.

easiest divide by kind take per-cap a $X But that thing and get I of $XXX,XXX. north could kind the you your think of million is you'll well it's do number. of through and

Steven Moyer Wieczynski

ask around us Thanks. I and your – rumors don't under you asset and you, And don't going Joel, or about you lot potential assets your sales you're view color kind going to there's out any there certain of umbrella? answer like question, can things way of that actually But Okay. the been that, obviously, company. there with give you're second this. think think a I'm to going to Great. I Is

Joel K. Manby

on Steve, you don't that that you But rumors right. speculations. or you're comment – can't answer know I on speculate absolutely we know I question. and can't

buy over is on always time and you opportunities we have the looked and we as both at engaged I do this side side is the and board always very order. matter all that of a can sell So, tell

assured And a would engaged is board. so in maximizes that you that that We board, this can anything very shareholder handle a like way be value. very strong

Steven Moyer Wieczynski

didn't thought Got I you. but I'd answer think I it, try. you'd

on Can us that's the of unit pretty terms question, a give in sales. side looks bit final terms what high you So, like little of sales, encouraging of of in price the in pass terms of that on singles, things? idea

Joel K. Manby

Yeah.

X% Just try right and passes revenue. it's a we – our X% to solid price get on to a We're to and feel. up, season both now so units that gives you in though,

up not it's a as So, We're in And revenue just sales here. really well. play solidly I'm unit encouraged.

really for think gaining and on competitive investors, said analysts call, who including the news, about, still visit I share. Orlando you as us I most, and all pressures product, our all the are in to where and we have like all the who the people good people know about we talk of the quarterly most last the the

rescues, to about with take that to know our we're are well doing that's knows of a that of to are. knows aware customers customer mile really going great We that, XXX they're company in marketing sure PR opportunity advantage me, the domestic XXXX. make in need we the We who about that. And that

I'm encouraged pass by sales. really And so, season those

Steven Moyer Wieczynski

it. Okay. Great. guys. Appreciate Thanks,

Operator

B. of from Barton Our Riley ahead. go Please Crockett next FBR. B. comes question

Barton Crockett

if part Card something an the I you're one about I extraordinarily I pass growth your you in is touched up talking Yes. think, was you migrating Card pass, priced pass, wondering questions to And kind normal kind ask the comments, of season Hi. of how more bit that of in Fun Barton but season Fun over be from detail And product talk It's your in wanted Crockett. cheaper pass is season your to that bit little a of bit a product to what's strategy. been you cheap think or I could that about because a more time? Okay. Path, see And of kind could about and down? Fun on on you a little Hill in that particular it a thought growth but within has the happening Card, re-pricing the season

Joel K. Manby

let then Marc and I'll... start Okay. I'll

Marc G. Swanson

Card then But annual numbers shift things Barton, can. has can which, you're a I cheaper And just annual just did kind of some that our if the some total you September, in what in that XXXX want California. $XXX,XXX or pass more at has to we a want revenue a good pass parks, up. a end end just some June, think that's you job us season think in we're couple I in break saw the our just narrative. other right, season deferred of deferred Texas June, is At statistics out basically benefits kind were at shifting But of Yeah. pass revenue, or just within and up X%. this million of up do. revenue, at look we you one Texas Joel of one let is of do this people of to just you're the pass year to so we give deferred the going X.X%. $X.X see you notably kind give we to continue a and year and I me We from true of that people to our of or Fun price. statistic, if higher We only did

in right there a and So, passes. pretty a around the big positive season direction there's delta direction

add... let Joel So I'll

Joel K. Manby

people XX% that with the Card up move Marc just said, then bought Card, the opportunity the this hit which lots year, who offers. over season about would strategy. it's trades pass, is, them increased to company. give in there's by done good-better-best And it willing season and the it opportunity the strategy Fun that time. accretive for that EBITDA, of incredible California, we although in first Marc who and them also phase the but low-end to And the buy there the still be it pricing see called to see a be the into pass, people is see product then are willing we've successfully. right, getting of Texas chain of to as same rolling we Card, – season we beginning, strategically, the Fun from And inexpensive we across them admissions weeds, we're close in now to and in without just time people the – the numbers, the daily. going opportunity the that at you're that's more then We're and is doing And and are off entire very pay very opportunity the wean Fun we're that up a we

Barton Crockett

Fun just little is and this up cited? up a season in pass bit Okay, – the though, you down growth the within or is it Card is there to that follow

Marc G. Swanson

so I it is less part which those pass. more want of be down of We and design. season would again mean the Yes,

again, So, gate because season to price, and pass is different would your by gate of price generally, your take we that be multiples. going trade-off Card north Fun is at

Joel K. Manby

as are the on enough product rates They Fun versus it. it's And it's because rolling as focused renewing utilize The Card, in time, where that in pay it about Barton, the XX% place people it's season. but of season that we on the program, we other mention, – membership thing renewal And haven't much. for call XX% don't for we which sell should auto-renewal renewal that, the are is a years, the a we pass a it neighborhood XX-month rates of the lower. mostly had primarily of we've

the So, higher only admissions over per in and adding drive we product opportunity, but revenue. rates time, renewal capita, of not will in which see value to lots

see very So it's of concrete we early the very strategy. We're and opportunity. a lots in stages,

Barton Crockett

helpful. Thank That's Okay. guys. very you

Operator

Fargo go ahead. of question next Tim Conder Please Wells comes from Securities. Our

Timothy Andrew Conder

Thank you.

Just then, mean color anticipate little bit color. of for of currencies then I international, back is versus international here. thank to which A the into if I'll relative you at on real Marc, on XXXX come all domestically? given though, it guests, have just questions and a as I And versus any we commentary obviously, look the your the early would Greatly couple Joel you looking quick another international much domestic, XX%/XX% domestic how and with appreciated. stabilization both push you're stabilized Canada? more, out much, – how is here. any guess, zoom And can there? generally question we

Joel K. Manby

to people's the when harder Yeah. it's they focused having that planned picture, on of there's we of U.S. but economy, said so that, to they as want those that come harder attendance. fruit that's tickets. in – to strength no on grow Orlando, of than strength for price way strong days stabilization and internationally, to already it commissions, basically when marketing do earlier, indicate the intentions, front are we're I then, travel their our or for dollar But low-hanging intercept that's can, said anticipating to they planning is not the the center not more get we but one and influence strong where international usually of selling relationships, decreasing us want And market. in there. U.S. attendance. we we domestic But obviously, distributor so are international The the through focusing and strength are admittedly, we're with the Big issue the do domestic dollar come, increasing hard

Marc G. Swanson

attendance. Yeah. I we And, be as Canada, UK less. specifically annual or of around would Canada mean, Tim, our remarks, X% in mean, X% is about the on I mentioned

So, – bigger two groups, America, it's which little UK notably UK international Brazil, bit a being our are than meant. are smaller, obviously, I Latin biggest and

Joel K. Manby

is we And as Kingdom down an double as just forecasted, are more in Yeah. of United digits. we and color. positive Brazil. The anticipated we one But Brexit movement definitely point is, seeing issue;

stabilization few months. been We last are definitely single actually digits the and up there seeing

Timothy Andrew Conder

some And maybe little then gave color a just more. you bit region, but by Okay.

company, were exclude California the they of the then you if for you sales, double-digits in and want high-single Gardens Florida, Gardens, however parse market said non-SeaWorld look to season at then Can the we up Southern you Busch you pass whole inclusive And if up Florida do or want So, the maybe Busch to digits. brands. it.

Joel K. Manby

digits. cut there. (XX:XX), I'll But, we're Florida. up [Tim] sorry. I'm And about you Barton look, (sic) Orlando very say is itself off high-single Sorry. encouraged

XXXX they good the we But in So, admit our same. two lowest solid solidly which partly that about up last Orlando performers. turn SeaWorld-issued news we because let's perennial are is is up Busch the have parks it, both to product that in the Gardens in markets. Tampa offerings strong SeaWorld just they're and the percentages year, were and and the parks, still have Actually, are

Timothy Andrew Conder

Okay. Great. gentlemen. you, Thank

Joel K. Manby

sorry, it's Oh, I'm Barton. Tim. Thanks, Tim.

Operator

comes question next Our from ahead. James Wedbush Hardiman go Securities. Please of

Unknown Speaker

morning. you. Good got a couple This questions for is Matthew (XX:XX) I've on for James.

be savings a of will marketing most You the of towards deployed reference and that gross advertising. digital million made $XX

advertising you EBITDA And revenue to sort what do and you what in, in be? savings of anticipate net the all the expect from campaign? then do XXXX impact So,

Joel K. Manby

the on (XX:XX), not are to figure. one, we net committing a Matt Well, first

any covered saying are We advertising that. just will by increases in be

Certainly, think than be organization. exceeding million. and the costs we've that I that now, down a never way be cost My year. going improvement is to are think We're continuous covered. in ways finding point our be we initiatives to better. another net it with we $XX We're are XXXX done committed more our will main this

to So, regardless to $XX costs. we be going million Street. then commitment to analysis, return the return far in our But, as down unless what obviously, And we're but more, and even commit the advertising, don't feel, revenue, on we we spend as that's aren't of Hopefully a drive that. then invest advertising to get going in it. we good after on on net

Unknown Speaker

reduction? would And Okay. XXXX. front-loaded marketing spend mentioned of Thanks. there then you a on on the helps offsetting lag cost the be timing Will That the be the following lot. up some in a incremental just savings,

Joel K. Manby

with most and a cost focus. No. parks, well the Diego, restructuring from cost two then focusing reductions, revenue Actually in of and also Orlando just on was cost here the San decline, October, we where the primarily that's to standpoint and as match we're done

that's – Any in comment? it other announced all So, start and most of XXXX. will been place hit started and already will and already of has

Marc G. Swanson

Yeah. the but two, they're restructuring then, those in already big cetera, Diego, I only identified revenue X well. of being next in week kind shift Easter some have schedules, to with as mentioned, Easter et which some San will operational the add of is is would that the into And cost we've QX, cost of QX, so associated The from year, other line have thing the Joel Orlando plans nature, and we obviously the – so, but the only coming first cost does and as behind done. April has it – been

Unknown Speaker

Thank appreciate the you. I detail.

Operator

comes of Our ahead. from Chris Prykull Goldman Please next Sachs. question go

Christopher Prykull

for about, program. the destination most little just What thanks parse wondering you are focus and how a questions. talk spend but then, was any spend. I taking revenue quantification around morning or And smarter stabilize about to the could I to around the excited targeted versus think more just more you XXXX broader CapEx? is if know question too Good bit plan maybe maybe capital ones? parks you be just it need you my to do on or regional expected it a you might CapEx CapEx, early,

Joel K. Manby

is pulled cadence million planning, and into $XXX parks. brought Overall, picture, years SeaWorld telling accelerated have our million Two down. at capital to a We're $XXX and million. for model it have figure we that said $XXX of we – forward people's Parks. was our now the people million $XXX Big to we've annual to ago, about to all consistent keep

It's which until in It's are product, What feel XXXX. consistent you we investments those around, turn very I'm about parks and marketable. excited drop marketing butter do Orlando in is we can family which of So, in level rapids. the park, park that raft anticipate most with will the Falls ride, the we kind doing hooks, Infinity bread have. huge tallest any attraction, incredible world of need four in it a water but and doesn't has a

it still very there. California, and oriented. then It the family will area be Explorer very will have out tall a market Eel, is marketable, well-marketed identifiable, will lot nationally. which that's be Electric Ocean have it's we presence, the fairly quickly that will understand and So, and fill And people very in of a coaster

we as capabilities. So, we our and impact have call festivals, either very Gardens – we're but are want and our Christmas. learning our what products Seas most SeaWorld Those ride as to Food Festivals, Parks of increasing product course festivals our those the attraction bringing with well are Halloween food the really very two strong as Busch strong marketing. that pass at typical on, for our season Seven and Wine Parks beer parks Wine also especially season else, pass and are into and festivals, actually our everywhere well

I pass think seeing one reason that's season we're our increases.

it to product revenue competitive million be had. next $XXX we've new standpoint we're every million have one a that So, that has $XXX we're growth, percent sale a excited of talk for and with lineups we'll year we very of to Almost – accretive other about park doing And from so, of with something and the competitors. range. best very little

Christopher Prykull

that primarily the how of One helpful. experience. deep expenses Thanks. And think eliminated, savings. the risk on wondering cutting headquarters? just impacts Great. about in That's the those where guest really cost the positions you were are up follow it Where too the were I at asked park,

Joel K. Manby

they and have some them at our are scores year is experience primarily we the That's and base also all I affected here by fact, property revenue to will our are your their decreased increasing look that we the their and their this increasing decreasing in increased we what the can on was scores maintained center at and can have of the an yet Yeah. are our But sweet just and you In it our to really those because at properties. parks, ones most call hard general, statistic. margins any cut is is this corporate results. costs spot park employees experience employee business, team, employees costs. our I'm haven't support to parks though, it. cost and we leadership guests. park, scores, got balance or tell presidents, that's frontline our just none guest in then accomplish. – And – much the of feel are them I of give at guest solid Anybody and which The scores, financial – all our support they're very you've leaders have driving it's Anybody our engaged, employee drops. intersection three in your guest been to too to or this be of in hard proud year. And guest the way at part the the business, incredible scores, they

So, the team. It's it. to I'm have very of to balance because great you proud question a ask

Universal. of an strong done guest and incredible we've Net up maintaining job think anybody, a cuts very, Promoter are there very making And Disney, our still right some Scores with I dramatic experience.

very, experience. strong very We have guest

Christopher Prykull

Great. Thanks. me. into for all the That's quarter. fourth luck Good

Joel K. Manby

All Thanks. right.

Operator

of Alexia JPMorgan. from next go Quadrani Please question comes Our ahead.

Alexia S. Quadrani

Hi. Thank you.

think Just spend on the and will it your spend. totally on be PR I two The that said funded I marketing, follow-up commentary understand, cost can how days no program? Historically, And completely sort off of at if that of notably follow-up you can, changed incremental us a pass terms just How please? give of you think that to your first compares Disney sort maybe sales ratio? advertising by in savings, under looks your you allocate of of sort in questions, Do But of question, to overall general know to peers how just it peeled from your sort a this spending. one, it – of if a maybe compares advertising I so has any as color mix sort times? percentage new on as visitors And how of sort SeaWorld. that recent and has attendance. a more I benefited coming few SeaWorld then sale.

Joel K. Manby

you the percent what think point that sales feel, the is as give last if first adjust of we the we'll And for just that cost not every results we versus question, make we as accordingly. advertising, far need, than in – more a we're to a month, will will And on again, getting cuts. Well, we're a looking XXXX. about monitor year we're XXXX, for than more and at up as we

always And the encouraged really I'm what As had this competitors; in for look the we've Universal been have the who market. who is, people question, again, us always best, by other Disney, know continue Disney, with know to That's in. basis, continue to those and where next go year people go they and Universal do XXX-miles this on sales, the we year, well. Disney, are they frequent preseason we pass a great to

to me product have that proves a that that motivate we can So, people.

component is that attract a guests the advertising, way. so, we And key about, as talked to domestic

Alexia S. Quadrani

Thank you.

Operator

question-and-answer Mr. conference like our Manby over I would concludes to Joel This any for back remarks. to the turn session. closing

Joel K. Manby

close I appreciate want support. reiterate to your this, great have ongoing the XXXX we we product. questions, at of strong Well, everybody's

opportunities marketing our We're very improved on positive our cost initiatives. pricing about with have control. and We the strong making and enthused PR and we're progress

All brands of for all me again shareholder on we're very those four value. XXXX, things parks and SeaWorld focused added and showing driving up of to the to lead confidence three growing the

you questions, and support, for So, your have your a day. rest for thank good of the

Operator

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

You now your may lines. disconnect

United Parks & Resorts (PRKS) 7 Nov 172017 Q3 Earnings call transcript