SEAS - Earnings call transcript Q3 2018 | United Parks & Resorts Inc.

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Operator

Good day, and welcome to the SeaWorld Third Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note, being recorded. Please now Matthew Stroud, would like Relations. to to over conference the Vice turn I President Investor of Please go ahead.

Matthew Stroud

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

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

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

our More reconciliation most included and our GAAP adjusted can the be is forward-looking filings in EBITDA, and EBITDA to a with on earnings we is also website call the information will of addition, In SEC. adjusted reference measure our available statements which non-GAAP our measure. found release regarding in the comparable financial on

Reilly. turn I call Now, John would over the to John? like to

John Reilly

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

First, summer Marc like results I’ll to and successful results over I’d third discuss to in detail. strong to financial then quarter and it season, our discuss our hand more

report to strong pleased We’re quarter financial third results.

consecutive that by growth in spending, believe attractions new were saw third attendance, driven these We revenue our the initiatives in-park new capita of results adjusted marketing rides, and quarter, strategic pricing events. EBITDA. new and primarily For positive per communication our and the and initiatives, reception strong we

our our successful at quarter, at SeaWorld included parks. Busch and This events Ocean Summer Electric our Gardens Parks Nights

Gardens popular returned the to introduction year saw Fest also to the at Bay. Bier SeaWorld and Garden’s Bier our Fest Busch Williamsburg Busch favorite. a the guest and We Tampa of for be continued San Antonio consecutive third

both promotion SeaWorld this proved Bay be XXXX. with to calendar Orlando bring summer very in Busch that Garden parks to promotion free to Our back and expanded and an Tampa popular committed we’ve beer at

In promotion of fact, starting Bay be in year free January part celebration. our Busch available Tampa a XXth beer anniversary will their Gardens around as at

best events. summer spend they Consumers believe opportunities value entertainment for and this the many it’s us quarter. spend We dollars with pleased in to their of and some time outstanding representing are and world that leisure chose money the believe park we consumers. theme pleased offerings with to which in part popular our calendar was quarter our their growth by driven are have season, peak where particularly the during We we can of attendance third many as

While further significant opportunity our strong, improvement. there for XXXX remains results been year-to-date have

has season the been go flexibility provide program some benefits offered. pass most we’ve launched growth which offerings we strategic a been believe provide pass sales XXXX pass XXXX, package see in season of our season for value important which focus strong to in the continue best We and the comprehensive more us. We and industry. ever sales to in to We few redesigned weeks our value, has saw pass an

have parks many third reasons job to guests. of new we’re our nature ever believe among at sales coming and double-digit to over market, to and communicating percentage revenues. season pass guests revenue We pass improve better visit brand continued and new rate. the XXXX recurring We highly and offerings again. Through scope attractions we’ve our base value of to over every our season a with rides predictability loyalty doing year believe company’s pass our for biggest increase experiences We one-of-a-kind the our to from providing will compelling to and grow our significant the a provide quarter, be the

strong per in capita also in-park a our this are pleased quarter. showed spending again which We increase with growth

We to culinary, merchandise have offerings. our and ways offerings and an pricing of in-demand new drive excellent team find in-park introduce penetration that and other continues increased to

to our revenue the and per continued revenue over combination encouraged of total capita. year strong growth course in to refine by this strong have pricing We drive and are our the attendance growth optimize strategy and in total we growth of

to capita to ability and on total revenue have in our further remain and to-date, grow to spending forward. refine based total more we attendance, pricing, going in per While ability learnings learn confident we optimize our

from and our We culture continue expense efficiency. reduction to enhanced of see efforts our the benefits

EBITDA. We cost continue and to work additional execute to diligently identify efficiencies that flow to adjusted will directly on

for wild an the help in families to park the for exciting down nest, recently to area of ever to brand the fun, the Street laughter SeaWorld at feature street Garden, market. and the learning will the At them. tigers As will Abby neighborhood be that Sesame launch Coaster, and to coaster. able Busch every Mr. Bird’s new doing Derby Street Slimey’s Street new Gardens year of Orlando’s connecting Stoop, we new at a coming and be walk I Sesame Car including Choo park famous Elmo’s save Hooper’s Flower are Super Sesame for parade, & some triple the is Sesame Fund, family, Choo of large attraction Tower, the park Tampa believe rides October SeaWorld previously, and visit Big be first Orlando more play mentioned and Train, in also Infinity them new including experiences steel seasons, year Street including Sesame Falls, a first for Abby’s time our XXXX will many Busch Street. company’s biggest wet launch dry for Drop, announcements and all the Roller guests educational as designed coaster, content one queue well to daily world very that iconic will introduce entire Grover's tallest Gardens Twirl land famous brings to summer at XXXX. providing as Whirl, made experiences We Sesame Tigris Box will exciting at and characters, SeaWorld Big interactive single Street Tigris, guests, parade. Cadabby's Orlando areas spring XXX with Sesame which Bay, immersive SeaWorld store, Street the about the Conservation new Orlando XXXX of in Cookie SeaWorld rides, XXXX. Bird’s The ‘n’ reason opened the including what include conservationists, guests attractions the Florida’s we this plight will ever At Slider, in and

announced At received horizontal since ride, investments a Zero-G an Diego, fish. kind a sustainable an that Conservation along roller its focus month, outstanding for Twister Tidal coming SeaWorld three and importance adrenaline-charged the will dueling ornamental the to tight-figure-X in attractions’ protecting SeaWorld the XXXX, aside, be we’re programs one marine Infinity first At has As and and of twisting we conservation opening new coaster coral most attractions. ever guest Falls will of opening unique banking park elements, through track last San roll. compelling the Tide exciting ratings. Antonio, making includes dynamic The aquaculture on our Rising ocean of reef San

one-of-a-kind sea Consistent the create Turtle turtle give First, a that and guests at educate endangered enough part guests with to on in own, will an conscious University Marine on the marine mission human sea environment. the our wild. non-releasable turtles, to be attraction in to impact and Reef oceans threatened attraction announced interactive attraction are of wild look with Texas highlight partnership Reef Science of of will be about turtles. encourage their survive habitats, with the Institute be the will The their more animals will endangered live, sea turtles and that about turtles to to in and guests unable populated the we Turtle the close plight sea effort

vertical in Ihu, the Water after entire Rescue a the which Aquatica feet families riders colorful multi-drop an first Virginia’s than speeds Aquatica’s hills World’s Swing biggest Breakaway Gardens will will spills Second, for in high guests turtle At fastest able out gecko, set rescue we our rescue who Sea over one and soar riders in the while in thrills, Finnegan's And in miles Texas, will first Ihu’s directions, be twisting Riptide Cutback swinging Falls, Water open at East tallest, Texas a and Coaster. and opportunity both on coaster will Country and the steepest to to the Virginia’s on Most slide, be hybrid per Beautiful most sea USA, Swinger coaster, third, will break water waterpark. Flyer, tower searches coolest own their a At them circle. we steepest more the board rides Williamsburg, boat hour. Antonio, San Screamin’ of mission. RocketBLAST and XXX-degrees introduced named Park guests State only the swing is younger Coast thrilling reaching At Theme of in Busch that provide the XX XX one-of-a-kind

our events Clarice, the across and season successful his begin our another Reindeer completed and Cornelius. Yukon Bumble Halloween featuring will just have parks Christmas events friends all annual Red-Nosed soon and We of of Rudolph theme

shopping, more expanding friends our weekdays will beverages Rudolph We’ve holiday entertain events, than and have everyone. into shows in we day-in certain that In delicious including will all addition markets. and added festive to food and ever live his for

is about guests what in our bringing best excited we value entertainment holiday believe the industry. the We’re

give the line-up about reasons that that of again visit we excited guests again. for and soon announce XXXX and enhanced our to will We’re new will events

comments. into the financial results. Marc head I our then we I to final with And additional pleased to execute we to offer are some opportunity financial call I’d turn as that, holiday intensely September. like discuss With are improved performance. drive But progress continuing to through We over to our as the focused to return there’s year-to-date significantly on Marc? mentioned, will season.

Marc Swanson

Thanks, John. morning, And everyone. good

results As John mentioned, strong. financial quarter third were our

resulted a combination quarter communication our rides, and a new initiatives, our pricing attractions positive X.X%. improved believe We events. initiatives increased the including factors of and strategic new marketing Third new from attendance reception that of attendance and

generated the XXXX year $XX compared XXXX. increases pre-tax expenses revenue of the was realization in of million quarter increase to offset approximately in-park per and income of of or capita as third reported third attendance Net an results driven increase to total net reported approximately Adjusted separation-related associated increase in efficiencies costs third We from third an XXXX. We the to in with income prior the The of During associated of growth million an of the due $XX or capita. and and $XXX.X million initiatives. of cost of Net compared the revenue capita by XXXX. quarter, million savings quarter million the per attendance pre-tax includes XX.X% quarter revenue XXXX. $XX.X admissions as of $XXX.X adjusted in income million growth the costs EBITDA well we spending, of expenses to per $X.X compared of revenue quarter. in cost in EBITDA quarter improvement of million $XX.X recorded quarter of third decreased by million with separation-related includes $X.X partially XX.X%

third capita in growth quarter admissions per spending revenue $XX.XX in driven results increased total per of pricing capita which per in in-park increased products. per primarily by than primarily per of of quarter capita. spending the compared a to decrease to more sales strong the In-park Third driven XXXX, capita offset in-park impact was by strategies. new The decline $XX.XX admissions from capita

by progress continue evidenced our adjusted front expense on reduction make the EBITDA as We solid margin. expanding to

level park execute considerable on spent structure our cost significant begun expenses and to operate business, the have to efficiently. analyzing identified We we more and have at opportunities have and streamline that reduce we redundant our time corporate

XX legal million million. of months increase settlements. at was X.X%. Net nine period Total guests, associated nine was pre-tax for $XXX.X billion, increase million $X.XX approximately X.X%. expenses of of $XX.X $XXX.X and was million or attendance total X.X $XX.X million an costs was or over or of Looking $XX.X our an an an million, $XX Net million, the revenue increase of Adjusted results separation-related with the XX.X%. income months guests XXXX for income for first certain includes the EBITDA of approximately of improvement million first XXXX,

Our adjusted $X.X respect related performance second table awards allowed $X.X million in to related of write-off of non-cash agreement new to release. in to $XXX.X million of and in following: Net vested earnings includes related to XXXX adjustments pre-tax a $X.X as in to $XXX.X expenses compensation accrual. XXXX. of to the a costs. And expense as in legal million Four, a on first calculation One, costs. discounts related company’s quarter loss the debt goodwill impairment loss add back early of extinguishment million the five, and separation-related $X.X with equity debt charge. settlement months reflects issuance Three, with which nine Two, non-cash our approximately EBITDA the credit and certain noted the related million million associated

portion to compared year. turning to XX% the third balance revenue our increased balance of current Now prior deferred the quarter sheet, in our

this EBITDA As times months XXXX. September the net ratio XX noted our X.X leverage XX, ended in release, to morning’s decreased for adjusted

we extended on morning’s XXXX, financial all credit transaction, October things, loan last facilities. other revolving term As almost generally maturities, XX, more amended and our and flexibility. mentioned and company release, press successfully and the credit in facility This week’s refinanced our we X-K this and among covenants financial with provides eliminated release

In to definition lenders I our to addition of adjusted changes just mentioned, modifications agreed the to the EBITDA.

only other on recall, an these may add new limitations agreement backs adjusted to amount tax the of limited agreement, credit and our items to you certain we our have basis. be add after Under could previous EBITDA As removed. been credit back limited

saying, for by We believe pleased nine these As better changes, with of financial measure press first release. calculation I’ll the with adjusted improvement. our significant the are EBITDA current we by calculated believe and result business. quarter is manage our opportunity this further was and than we reflects the nine underlying performance year, a of morning’s solid reconciliation months adjusted of and now for of we it a better our conclude have through EBITDA of first and the XXXX previously differently the in we how while months business and included performance we previous aligns

to We will on to our and additional to business. operate while reducing continuing focus unnecessary efficient continue revenue, and driving costs attendance more ways identify

EBITDA are we deliver will and give Our and us confidence growth beyond. additional we XXXX in results clearly indicate progress making that meaningful adjusted

call Now, comments. over back let turn the John to you share to with me some John? closing

John Reilly

Marc. you, Thank

seeing and As you have heard by we today, we are confident in the direction the we encouraged are are our business. heading in results

extends long-term Our and this the over believe company deliver and the significantly we few confidence our can beyond. years performance to view improved next financial

you. we with about the excited to our and forward future progress look We’re sharing

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

and are rescues of of animal are one to many rescue efforts including world’s know, our As you total. protect XX,XXX and we the we organizations leading animal save in than of proud more wildlife,

animals. it’s XXX guests year, hope of rescue protect our wild and in helped the actions our inspire over to of and we have wonders expectation the X,XXX rescue also first we helped that quarter, animals consider Through the the our months and world. This nine animals

objectives to Finally, exceptional thank ambassadors meaningful our experiences our outstanding and who a in to providing all their I service to to these these focused our and are of want was They of are key results. of leaders on company. committed and producing our dedication success team as parks guests a

them. best park We working to have and especially industry, some be in the of the employees I’m proud theme with

take let’s your questions. Now,

Operator

Thank you.

the We Instructions]. session question-and-answer begin [Operator will now

go from Steven Our of first Stifel. come question Please ahead. Wieczynski today will

Steven Wieczynski

morning. Good guys. Hey, Yes.

a pass can investors you the rate do time. penetration lot where question think to from pass this that guess up season you I quarter, with is, double-digits So, get over get we sales

Your peers, business guys have where how penetration different over about obviously you you but idea you your is get can do do than of that any some -- rate time?

John Reilly

Steve. morning, Good for And thanks the This question. Hi. is John.

through across the strong sales attendance year-to-date the performance our pass area the driving revenue seen driving the in messaging pass results in parks. probably also opportunity had pleased and quarter that performance our in we’re there our further parks I’d up have that had that and up communications role that say the by encouraged year-to-date We’re believe with third in we forward. grow testing we’ve result learning and year-to-date the through our of going and our is the significant around and are QX to What We is pass efforts. sharper total

options, the industry, new our really tremendous until affordable structures, pricing, However, and pass of new parks in launch our benefits of launch entry some benefit that QX. the we I with didn’t the most think didn’t best value structures

there on revenue our us side. think say is help it’s believe deferred path us going us, initiative our of pass that and nature because on our opportunity I’d for to something we recurring the achieving an of significant we So, revenues to is improving and stream goals. And important predictability ahead strategic the the growing is be

significant ahead. So, upside

Steven Wieczynski

heard Okay. reading And question additional that but remarks talked too savings John, finding like prepared it into maybe too cost almost another since and reading additional you savings your for you’ve maybe I’m Thanks and found much the I’m cost in point? much John. this, you’ve XXXX I’m but in Got you. we I August. for this, about sounds get about have target guess been that question which last a early bit embedded lower this fair you when that, trying that’s be little guys that is might to numbers it the to time XXXX look we would your saving to is EBITDA cost from here, targets, in

John Reilly

some to that and $XX we us. question. John. are laser have the on to It’s move as redundant more continue operate, as business we’re corporate as already the forward. million. before, That going million restructured of the and for across we’ve call, any and on we vendor-by-vendor that and mining to in said We’ve from What on for last going I’d a reduce last I the Steve. focus our office And And you’ve for savings front seen forward. say, expenses. cost we’re we’re opportunities $XX we business, we’ve we streamline parks said, in our and our looking executing that Thanks executing activity opportunities Hi, be way we we’ve since costs, gone part as call, our I going with think identified the to business on cost said in on identified

Steven Wieczynski

quick more for one And one me.

can But just into on CEO you close we’re this. what’s ears with think do around this maybe on back where now that months guess I month you nine perspective? said going from I are your six now February, one. John guess targeting a the guys now search, I announcement? Just you you in stand

John Reilly

are initiatives, that take I’ll in to opportunity going -- Board cost the our position. team and significant move our And The we is the on rollout and focus, and laser-focused I I forward search CEO is, we business. underway question. you just believe the on we’re there’s with we’ve pricing, in new do pleased And our is Marc of on for we’re And the And continue seen John. executing that marketing, said and our to progress quarter-to-date attractions what our the events. This to strategic initiatives. we communications on management in forward. press as that

Operator

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

James Hardiman

right? could don’t typically number results. a what those we the makeup that how healthy the various there. think This curious just want And organic park any has about doing, space more are your well. I’d you how of dragging how parks, parks a years big guess SeaWorld given pockets particular, of doing broader right? the the you fact the for level been For down in other last I know be the growth understandably, of company couple recovery, just big in issues are really the maybe if give number see in really the Parks I year. of really characterize picture, guys? were regional think you struggled the a guys have with branded we’re to So Obviously, your space how I’m the they’re guys curious, theme about and park years. of doing SeaWorld we to But

John Reilly

by take sources say is markets. you for What improvement tourists I’ll we as you, won’t [residency] John, question. rollout number of our across from seen that look helped the is on what rather this a And number again, of attraction to say believe will break and the specific if improvement is the across a I locals down to I’d our you James, has that categories. product ticket broad-based But at it is, portfolio. Hey, of and -- performance marketing, our drive we’ve strategies international, pricing and our We events to portfolio. fronts understand

or we by it’s although been by specifically. brand So rather broad-based, comment won’t market

James Hardiman

the that maybe successfully the management off. business that from is off? destination California was the How Florida let’s numbers, investors team talk particular. the started that should much that the we’ve cap, in Southern talk we a growth that grow that that to one to in of under line. hoping real think but is into previous continue the will think pull maybe calculated trade then day was saw seen related off then US matter, you per guess and heading trade-off. of What customers And how was and to you had and about the line But of that I this week, nice trade I cap, per this on admissions decline much cap a per of offset off the local year that you take really overseas year admissions of the initiative other to and how made of that even for expect some attendance about the in-park a could maybe any parts maybe that much fallen

John Reilly

the and the take part actually is I’ll first. John, this question latter take James, I’ll

larger improvement the options pass from and structure believe value that Certainly and locals, I first our to strategic we’re as question, and low and initiatives well us. monthly that and and with say business, a we’ve you year-to-date forward. local focused performance your about of across response profitable a pricing revenue in the positioned with driving for mode been been programs driving our we’ve total As going trade payments we event been incredible that’s To portfolio. on tourists the offer we’ve said front benefit on your question has been the off total in seen the rather revenue from across broad-based

on been focused and those per at total we’re both we’ve year-to-date. So, driving revenue total and of cap successful

As and and you optimizing strategies our this effort environment we’ve learn refining and year know to been maximize revenue. it’s and that really in test been an a all it’s total

have strategies performance. declines, revenue these cap total admission increases increases today per increases our total and increases and attendance but modest we’ve cap So for strong in pricing significant and caps delivered per in-park significant in attendance and very in seen

our learning and be continue revenue in-park and maximize as optimize we continue price revenue pricing generation summary to expect But strategies total in should between that refine be that every per in clear, forward caps total you admissions drive day able off pricing say initiatives going we’ll expect increases and caps, trade per we’re to be the toward do forward. to I’d optimizing So, we admissions and attendance. and going per we will to caps, pursue to

Operator

question Markets. Andress of ahead. from KeyBanc Please next Our Brett come will go Capital

Brett Andress

remarks prepared you quarter the mentioned a how days fourth adding you operating housekeeping your in many are just here, this in First, year?

John Reilly

seasonal doing we’re to around But we few days. year expanding we’re going we’re in days quarter, are -- a comment have around opening our our in to what or the operating of Christmas markets expanding We’re markets the markets. regard where operating fourth more some with

days to guests. So a of Christmas that are we’re the packages will offered advance percentage higher days our the where be open,

have So Friday Monday those or in might through only expanding example past on for Sunday the Thursday. and be those for weekends we’ll offered we through

significant I there think So, there. opportunity is a

Brett Andress

it. Got

credit Okay. wanted new I understand make sure to And agreement. just your

to it. the So, you’re about back quarter we happens the last $XX particularly But some expenses million mean year. with into you fourth that agreement, what I cost guess and the over from I were able think in estimated add how the savings that benefit had should previous

do changes and off takes quarter in alter in add agreement how then the guess your XXXX that, targets your fourth credit I building also view you puts So, of And all? at do around that? what these are the you backs,

Marc Swanson

I This can that. Hey, Marc. Brett. is take

and the So, pleased yes, agreement on removed on on the loans, but covenants It the number down credit of a on the financial new agreement, the we’re left of just with as the X.XX% we mentioned that first-lien EBITDA performance view revolver. And aligned consistent only fronts. with adjusted springing the how more the obviously we’re underlying all redefined more you be we on revolver. not new also to and then business. extended maturity of The

settlements, tax generally so, of you or type of a unusual those one-time it they year, or of after a back on noted. to things like legal kind like things were was weren’t basis, the this more unusual And add or that able lot caps legal an severance we some costs, due to because of items lot as were in nature

business. about think we we how the with that, So agreement think aligns that more

the have Going QX. in forward into adjustment pro not QX, $XX we forma would million

agreement as we in how what we’re think number, our goal in not XXX far million. as year. still that’ll it’s be about long-term the on. million this So XXX But focused number And That’s our to today it’d have be the would going under hard XXXX like of this in that we’re we agreement. of out to new you to type exclude tell one-time what kind things of

like lot like than with we no other just able things -- in our credit we’re the to agreement us. us new take this we care view, a of flexibility gives So of that just we and change that like

Brett Andress

your that then open that that today, confidence look you disappointing, if attraction And third Sesame time but if And do that Infinity sit on I to you level could being squeeze what Falls. had also on you any able one impact delay Obviously more a and next quarter? was year, on think on in question the just that, from spring? is your in at where Street, attendance

John Reilly

reaction because it open Yes. it’s we’re further are you Thanks ahead to attractions measures we’re way and in of I’d the didn’t happy, very at for seen that and strategy It’s and encouraged we the third planning capital look opening third revamp we’re world. weekend disappointed ride satisfaction And That and terms We’ve in the was we next that, Falls in a about the ride. have Orlando, the can place I see into ages the are to we’re didn’t for in we I’d Infinity at Orlando. the The the rapids we much are new high of ride, our that year, people so from -- the until I’ve we’re question. parks said, open Falls just Orlando. is consumer I been out of of for unique SeaWorld benefit every in far. attractions really new IP, about we forward. at enjoying doing going about thrilled the answer year This clearly I number getting is quarter, is it people with with October. a way other when excited it that the quarter in put you have very tell Infinity here in in Sesame Infinity it question And going move think a Street two results. product, guest clearly it Sesame at our we the a SeaWorld big and all love tallest off Falls john. with survey got And one drop expected that your way it’s

of the open feel about combination to and ability planned. Street our about year. Sesame Falls And So that we’re as next good Infinity excited I

Operator

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

Barton Crockett

of the I things on guess credit agreement. a couple

of covenants. You’re talking about loosening the

dividend that under is was share of One no is expense you you basket? basket the on have interest have things And covenants no the say or can what restricted maybe former was When payments see restricted like us what that repurchase. and you versus old? the that credit you -- about tell new agreement payments agreement that meaningful covenants, included, also the you this trend

Marc Swanson

This Yes. is Hey, Barton. Marc.

question. that take can I So

all covenants. we of said is what financial almost is, So the we removed

we’re so basket, our far for that revolver And X.XX%. the We now. calculate have left X.X -- where the we springing not payment there still of as those so changed. with we’re depending fall on our ratio to would would your point, at as times We has still covenant restricted

below after is no ratio we on to effect restricted a than of any payment unlimited So, assuming basket have leverage greater forma basis such pro restricted net X.X. giving X.X, payments the payment

-- probably X.X% probably we’d X.X market made in and of above if XXX payment any we’re times, we X.X or which would tick million we at case So, we would cap. between X

So, original over the from we’re carrying like with What basket fine was we’re the restricted we your…? and agreement. payment where

John Reilly

Interest rate.

Marc Swanson

interest rate, yes. Oh,

now and the expense X were L L B-X, -- we’re + that interest + XXX when XXX the the So under B-X was L -- on at XXX. we on Term at the + Term at already the

in interest million. on picked we’ve XXX XX cost basis up points So,

got million So, in we about rate given that conditions. market that expense, $X.X increased with interest we’re pleased but

Barton Crockett

Okay.

or cash share the add backs was again through tell better, interest can in versus now earlier improving What dividend and in about view the you capacity So, with EBITDA business. us just your one repurchase return to other? EBITDA of to your your is the improvements

Marc Swanson

Good Yes. that. is I can this and take Marc, question

our the right are So, ensure we management it’s dividends, with anything that tell you will shareholders been sure buybacks, are think working now, and be Board different shareholders. best that be with the report to that and we they but as will and cash, has do of you the in focused all on so just registered cash whether the can what make interest to team that use you of definitely ours. for focus to is of will And Board have you things that I noted our best can a I we cash don’t improving the

John Reilly

results question the John. next moving with just the business. pleased we’re with the refinancing, regard in of the position we take add this we that Barton, that to before the I’d us is and better the And results flexibility forward believe

Operator

of will Our next Please ahead. go Citi. Jason come from question Bazinet

Jason Bazinet

but cost months, already to to portion forward, some -- we two words, other how that’s agreement I there those do then presumably -- new that happen saves months think about XX of may there quick In in that fact that of cost limited XX the $XX.X the saves ‘XX. does get been just such interpretation context million back it the realized had you’re some questions. is that adding The in is release, before and other million beyond number? in credit prospective that $XX is for savings how the we have in year-end

Diego So, And if you rapid. us I second it ‘XX. successfully San update is, breakdown? we’re to question then on orca you old the could my and Orlando? and And deal in sort made just comment and idea show the ‘XX just Thanks. was that the on Texas in believe retrigger know happened then guys Orlando you in plan, in Can in under of an ‘XX Manby I San Diego it Texas the too and going give

Marc Swanson

one can Jason. first and This the take John take the second will then one. Hey, Marc. I is

So $XX.X that about. of part that talked we’ve million is million the $XX

months, some use. And restructurings items go that that’s there I longer leave the XX in you But like focus it. we so of right we And get beyond into will that case to think the some on of taken we’ve some action on items way continued about those we’ve a are have be that the I our the as term the longer you just done, think out right, or will like vendors this. you’re with, XXXX.

this on we So every day and work week. every

more we And we’re to identify on. and so obviously that will that’s as towards continue and what bucket items, executing grow working

John Reilly

as to and from we Coast With second learned John, is West this the we experience some we -- I’ll Florida changes on show, in Texas. we in go forward our there. question planning clearly made and regard our -- have the take the orca and will we And

the public we’re animals us you see view For should that closing as you make on example, will as said, the us we amazing to should the make the year available we transition will so as make next or -- show and not That be the be transition. announced. the transition, for we over make schedule

Jason Bazinet

in that’s through? far happened yet Texas on so anything Has

John Reilly

But next in the the and planning so. within I the we made transition as year not Texas. said, have to We or and underway make our that expect is progress

Operator

from come will ahead. question Swartz next Michael SunTrust. go with Please Our

Michael Swartz

little to expected. softer a had per than on wanted cap was we touch admissions piece. It Just the

provided you per guess that I’m we growth that had we Just targets just you’d targets? in-park XXXX break both the those should in into in frame admissions, August, with your down trying per expected, to it your that I relative understand of caps versus to if in see growth

John Reilly

Hi, the and an cost the per roadmap this along made the grow caps revenue in in and pace our in believe per capita with I’ll $XX.X provide attendance slightly question. take with outlined. And million did work quarter. line is revenue the significant clearly we’ve total we and million year-to-date growth When forward. line do growth can we And attendance said, we that we first a John. admissions sensitivity sensitivities $XX illustrative XXXX accelerated goal, total with communicated progress even going the

admissions capita. in we that. As will learn I admissions a revenue we’ve have with believe year. pleased total front to on that before, said total grow per to the the mode caps per throughout test forward, been the progress able and grow made and But been being We’ve we with the ability we’ve going and

Michael Swartz

year how about new we in have And year in question had fourth year. in last attraction the just asked line business, I of event someone this operating do wouldn’t the think or think terms quarter, ago second versus that XQ we But number just about occurred as think the days. of about period? maybe the What’s

John Reilly

question. I’ll take This is the John,

first we’ve is and If attractions had. it’s best portfolio. I and I’d of better you the I attraction one And think ‘XX events year, I our at new it’s attractions said, say the That Oscar’s a across think Wacky of year launched lineups many the the even for first think best that QX, look we’ve had. XX Taxi ever of it’s our across In and that of Eel, portfolio, others. so year the we’ve the the have number -- we benefit for Electric

later as We then a Falls, going our also in offer also higher percentage are new the month quarter. Christmas the it’s events I expect really to just but opened QX. expected, having calendars, about we attraction in that of market brand a a Infinity than expanded operating Christmas have in the ago see with from a be benefit we where to then before, mentioned And days

Michael Swartz

Great. just then can. Okay. if And last I one

For year-over-year you down against the were a parks and hurricane, you there third closed statistic some quarter in in given the with of comps days of Could maybe year. change believe and several fairly just at? give just your weather are last days the that the just easy up sense I us maybe or look we hurricane

John Reilly

was don’t a the for very believe a our quarter quarter said year From -- on XXXX, weather last as And weather the for data review, we that weather year I year. which last we had impact Sure. and analysis us. has even unfavorable Year-to-date was been versus said, I material that weather to that difficult a said difficult us.

bad to on I have business. our increased look year-to-date that’s So, least if we six at with traction had worse generate years. able both years XXXX would back our what and initiatives historically Despite that, been control, XXXX characterize performance we’ve us, and demand to of so are weather pleased has which XXXX and the the total revenues for five we’re than what you been at

Operator

Securities. from will Fargo next of Our go Instructions] Please come Tim question Wells ahead. [Operator Conder

Tim Conder

if maybe give some more may. a those allocation, things other remind Thank if and again that of your capital, hotel that side to on us you potentially us can the is, color things that, wanted clarifications maybe to you. CapEx there? or Marc, on any John, core the deferred, breakdown on like more the and I allocate can refinancings then the the couple recently seeing are how position ability question you of of I your cash the out And core then that? outside given just and done, read hit is capital on

Marc Swanson

been our our with. by as we sales, our and season is first so of question deferred to items Tim. turn led which one. current our would the been have pleased it Hi, say but talked by we’re then This revenue bulk can in that I’ll led season But pass sales Marc. pass we the XX% take over increase is up the second that’s other balance and revenue I has deferred I on John

Tim Conder

type in on you of pricing on may of John again Marc, to hop kind before that you’re what maybe if can that season And pass and or I us talk units you getting that and there? another? you’re what’s seeing John, the unique is then the in area, Marc, to one this residents, versus year-to-date take concentrated And just tourists whoever visitors, wants part,

Marc Swanson

I’ll don’t part we Yes. the components breakdown want the then question first to anything. on and season look to comment of pass. add John your necessarily But maybe can all

is we’re are you up revenue tell can the and the said we that double-digits quarter. for pleased what think and I as we units

as residency. we I’ll past, on the unique we’re shared multiple mean really that that not So, we’re the we’ve then I sources seeing think back the pricing are I getting come of with passes to mentioned John on as visitors, story And well. growth in and that pleased what in is

-- whether mentioned local So that’s as it’s or whether tourists or international. you

So of we’re pleased residency. with those different those source results from all

John Reilly

one. On the capital allocation question. I’ll John, take that This

more We’ve XXX across to excitement events, the and often. strategy target, believe frequently to on in a the going on more more planning parks our more we made the attractions, effective forward and term, is Longer introducing revamped more and rides, time. we for changes as also energy the that that this we’ve we’re move capital deliver priority significant continue will target us impacts across question portfolio. the we been that you’ll your and our from key from that momentum implemented our base newness where lodging think And company. XXX. we know, our across And the say, revenue capital you confident run the over lowered to As has see I’d attendance still the a but company, capital year is

priority. priorities parks as strategic have at some this However, attendance to revamped done strategy, driving top attractions we and in of our sure look capital we make attractions that are realigning a and our

Tim Conder

historically some John sources -- the other just investors I front. said pound especially. said, impact Can and had the as But just of you worries were and your in relative your how international had give in of I maybe anything the mitigate I decline of we’ve and may an you one that. on One other all in and and that across seeing the how to in are and some to you on town some are outsized different is measures kind past last competitors measures you one a update, little confirm, that’s the the the and bit real those doing you than Orlando want if guess progressing? an us

John Reilly

Hey, I’ll Tim. It’s John, questions. take the

attendance and results look international we the the there I the or is is attendance there’s I was In but of encouraging have can up, you don’t ahead. broad be is signs this. way strategies way, in markets international currencies markets plan being control but it some us a to we’re there communications there we year-to-date. the international do we from opportunity. these begun we opportunity believe nowhere -- seen get in said, marketing marketing, at sales up. we are an to And us strategies US think control when in our that it’s some we’ve there’s improve And to that the have That think benefit up and communication of gets looking we we rigor be sources said, in sales we do used some That the way execution QX And historically, and that believe and ahead. revamping markets. where we will for terms that We are and of discipline our and our our that international there’s up, residency markets net believe means some or are some down, opportunity and up think significant

Operator

this and back like for now I Ladies closing turn session. conference John Mr. gentlemen, Reilly to will remarks. would the our to any conclude over question-and-answer

John Reilly

animals. in our thanking close third performance further protect call Thank their their this employee, quarter, to company to the you. to mission the for for I’d efforts like by again everyday ambassadors to and our our contributions across strong

our to achieve joining increasing our confidence you progress all Our quarter the and to gives continued in this us for on strategic morning. our initiatives me and execute third ability Thank long-term goals.

Operator

you attending for The We conference now thank presentation. was concluded. today’s

your You now lines. disconnect may

United Parks & Resorts (PRKS) 5 Nov 182018 Q3 Earnings call transcript