SEAS - Earnings call transcript Q2 2019 | United Parks & Resorts Inc.

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Operator

Good morning, and welcome to SeaWorld's Second Quarter 2019 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] Please note this event is being recorded.

I would now like to turn the conference over to Matthew Stroud, VP of Investor Relations. ahead. go Please

Matthew Stroud

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

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

statements These begin, those federal to Before I'd the Commission. within Annual that including are our statements Form XX-Q remind meaning be like results comments cause statements, of uncertainties to risks reports securities on Exchange the and those that of different filed our the of forward-looking a contain could section Form number with in laws. we from Securities everyone identified Report the subject and Factors quarterly and actual forward-looking today materially XX-K to on will Risk

will may on SEC These from risk any with statements. undertake update forward-looking website. be be included no filings time-to-time We that factors our and our in available updated the are obligation to

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

the turn Antorcha. over to Gus? like Gus I'd to Now, call

Gus Antorcha

We're report pleased you, Thank us. second and financial results. for Good you solid to quarter morning, everyone, joining thank Matthew.

quarter and EBITDA attendance, growth second for adjusted record achieved XX month consecutive and For income adjusted organic the saw trailing we in revenue period. net sixth in and quarter, the We EBITDA. the

EBITDA quarter $XXX income million $XX adjusted was over was second quarter second Our million. net over and our

was our million $XXX and XX trailing XX million. month adjusted net income was Our month over over EBITDA $XXX trailing

These both XXXX, of in quarter of our and refinement impacted related believe our Easter events. second by was We driven and break by later results communication record reception revenue initiatives. as primarily and and and attractions and positive efficiency attendance and rides spring the calendar the well cost timing continuation positively in that pricing, a marketing of our the strategies setting new compelling to were of shift as growth

at offset factors largely parks, unfavorable These June. in by month weather were particularly most the of our of

to our efforts continue see benefits culture working reductions and efficiency, to and identify cost our efficiency. and reduction and expense execute We we're additional on from enhanced relentlessly

one or featured have feedback received this year As kind at parks all of our rides events new positive we from guests. attractions you know, almost a of and they our

each our and many we summer, of This and San our in our Ocean Electric San our including Parade have award-winning Sesame Antonio, Orlando, Parks. favorite in events of on, one a going Diego event SeaWorld guest kind of

In parks. reason theme theme parks addition, at of Nights Halloween to In start events this our mid-September, visit. are popular Fest out Gardens event. roll will Beer featuring our of Summer later most all start our month parks another in giving our will popular our Busch to And guests

through progress can pleased While we year-to-date the quarter better. XXXX, our of second with we're do

we're improved the to fall. throughout strongly communicated, additional on As and believe the performance remainder drive to execute continuing into summer and focused we intensely season of our financial have opportunity there is we peak significantly on

to and deliver our future the financial We improvement are increasing about and ability . operational meaningful enthusiastic

Marc? turn like With our results. to Marc financial over to to discuss call the I'd that,

Marc Swanson

and Gus, everyone. Thanks, good morning,

results. financial As Gus quarter mentioned, solid we reported second

attendance quarter X.X%. increased Second

in During generated second the was capita an capita. quarter by of revenue XXXX. admissions of million, increases attendance per the of This per we million driven X.X% $XX.X quarter, to compared in-park increase $XXX spending, or and

improvement other million, approximately includes $X.X second transaction announced $X.X Net quarter attributable compared and to the $XX net restructuring cost. million of pre-tax previously reported pre-tax of related associated XXXX. an of to We related of equity agreements million income expenses the $XX.X income of expenses million with and and separation

a of in Net in second accrual recorded $X.X approximately expenses million XXXX. related of costs $XXX.X income EBITDA second with reported We pre-tax XXXX, of the includes million. quarter and the separation legal associated adjusted of quarter settlement

and EBITDA improvement of improvement total realization to cost million this quarter. for driven was prior a initiatives. mentioned, record an was compared by year of revenue and the savings $XX.X Gus an in us adjusted As The increase

total in-park $XX.XX of second initiatives to capita per the quarter In-park admissions the increased compared by in revenue per primarily $XX.XX and per Second XXXX, pricing of driven spending due products. increased an was capita to X.X%, sales capita and capita. quarter in in-park spending per increase

We continue and business, reduction expense front, to cost that Last we streamline expenses efficiently. redundant reduced significant evidenced and adjusted margin. by identified declining on our we to progress as year, opportunities to began our make operate EBITDA on the more expanding execute

and XXXX, Our efforts have to identify efficiencies. we additional continued into cost continue opportunities as reduction

shares repurchased common million announced we the of As previously in stock. approximately second X.X quarter,

of repurchase XXXX. shares Today, June XX, were our announced as to increased held has back All authorization million. of Board shares $XXX that our repurchase at Directors the we treasury share

X.X%. revenue guests $XXX.X or the results half of an our of Looking Total XXXX, X.X million $XX.X of attendance X.X%. at an guests, was for increase was million total XXX,XXX million, or first increase

$XX.X income the of million. Net improvement was period million, $XX.X for an

or an EBITDA of XX.X%. million, million was $XXX.X $XX.X improvement adjusted And

XXXX, mentioned, certain $X.X separation-related associated pre-tax for half associated and net pre-tax of I expenses with includes million $X.X agreements the million with income transaction approximately costs. of As of previously equity the expenses announced and first related

approximately X.X% balance year to when of sheet, increase balances the compared revenue prior $XXX.X quarter. of turning current to million, end deferred of the Now our our an as was quarter second the

expenditures. almost capital in reported quarter, $XXX million second the During we

of as XXXX. opportunities capital complete to new to XXXX. amount seasonal As season. expenditures expenditures approximately including capital new are projects of cost excludes for be still is and properties, core reduction million opportunities. in expenditures with in industry million and/or aware, in time revenue expenditures, and the work expenditures summer you half anticipate capital range many first non-core we capital We in this expansion associated to the particularly the $XXX This ROI anticipate peak the year $XX in are capital $XX million in We these high

which was cost using defined XX, in this noted the release, months times, As is X.XX adjusted ended for credit June as by our our net amended XX leverage including ratio estimated in XXXX calculated morning's savings earnings agreement. EBITDA

of will the quarter, will XX-Q $XXX in see you we the of since our that As million morning, revolver. paid the tomorrow down on million filed second the $XXX that drawn be have was end

pleased EBITDA of and XXXX. adjusted income growth the are the continued quarter net second We in of with

as strongly have However, believe further we significant better, for mentioned, Gus we do opportunity we improvement. can and

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

adjusted delivering to are us confidence to progress, achieving million EBITDA end We of million by goal on way our we XXXX. $XXX gives the of which are our $XXX of that making

turn Gus, over me Gus? will thoughts. call some the share to who final back Now let

Gus Antorcha

Thank you, Marc.

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

research, leading to cetacean we're of protect one many we're you than I of mammals animal efforts world's and more rescue our of know than conservation including save rescues and marine rescue organizations. And advance proud XX,XXX does in the As no to company protect animal SeaWorld. that total. know, wildlife, more and

the It's animals. second wonders that our expectation quarter, over world. and our to hope the protect During we their to of XXX animals, also our our consider habitat inspire rescue actions helped and guests wild and

thank of They outstanding meaningful providing our efforts this guests. ambassadors to I exceptional our service to team want their experiences focused on and for summer.

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

you As can very in direction have many in I of business. encouraged to I've in do for we're see months, that the by I'm know heading. on we opportunities fronts. you the significant work tell I'm company And plenty now our the six now been I confident

will the order adjustments necessary and is We performance company this refine and as marketing strategies to deliver achieving. financial in pricing improved continue our of test to significantly capable and make

model. said I've an we before, have business exceptional As

We the introduction execution and pricing on with year. new our of improving more initiatives, are enhanced rides, and strategies focused effective marketing events attractions and park compelling communications every every in

improved will continue identify contribute attendance, initiatives will We Through result in revenue meaningful to these profitability. increased will that growth capital value. confident adjusted on and that and margins expect we cost efficiency efforts, shareholder EBITDA are we meaningfully we to deliver and and will execute

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

Now, your let’s questions. take

Operator

Please [Operator Instructions] session. Wieczynski Thank begin will you. from Stifel. first now question-and-answer ahead. Steve with come the We’ll The question go

Steve Wieczynski

morning. good guys, Hey

but any sure June helpful? attendance any there not trending have think around us would was you how you it around much around may say about June metric the much that how I’m weather color attendance the quarter, looked So is impacts can would how the attendance without whether and be could for impacted be can way help how through or you,

Marc Swanson

I from Gus in those other said we the do shifts, Marc, June, obviously but know then prepared as June impacts, and Easter encountered Yes. some the in we’ve some significant we had the can or days Hey, comments. weather. things in we we moved take and then that as question quarter we weather Steve, Look, among benefited XXXX. can as it’s And remarks, that can calendar particularly we since We into seen the worst add measure. were what

measure estimate, it’s can, to can we try something that we as best an clearly it’s we so And see. still but

significant did a did that so have we And it’s call that it out. enough and headwind

were attendance Gus weather XXXX. $XXX goal the adjusted things of But to of other you with tell we there better what in we his the obviously pleased impressions is, factors, were talk headwinds our pleased towards even to quarter, end progress that pleased factors making $XXX quarter. do and that like can the impact our on Now the with like the by lots there’s results, and million will we’d of we’re million I EBITDA we’re that is beyond about with weather and of some

give Let as quarter me have well. on Gus his impressions the you

Gus Antorcha

But not out you’re Marc. to the in answer think question to specifically, I Thanks, going Sure. numbers. break

headwind, big weather a what you track definitely especially we June. And so attendance and we look, track I daily, in in Marc, hourly the right, headwind saw it big is said quarter, was we think

would said, manage But we that higher. and which grow that grow clearly been attendance to good. still to is Marc As revenue we have managed

building a months. I XX team as see been pushing even continue grow to I’m though able opportunity and that at growth lot the here, and a the think further. last to growth we’ve I ways push deliver I’m looking to of

have don’t we’re running we We’re but mistakes. perfectly yet making everything and promotions, tweaking our pricing, creative media, certainly

learning as go. we We’re

But make. a yet you until and weather, decisions and when we’re optimal it trying not optimization, then complicates throw factor to you’re like

the can I headwind, and So more big there’s we’re the along was go. are, do number and but work we it we we of would as dimensions learning say

Steve Wieczynski

is for question impact San generic kind since at next, so? And just Diego, up Wars in weeks about call Okay, that out what, seen maybe second color. set great you Star or to the as as then going they Orlando, you then in you thanks, have to of are how four roll that any LA. guys look be and in thanks And competition that are a and question it prepared opened here if

Gus Antorcha

It’s had has to especially sense and California. in we been. comment California. the continued in Southern the my give if seen lot impact Marc at weather well colder, We’ve in a Land Great, want a as since for well, year material been how Disney. not you this cooler, But it’s California, colder documented Star feel but of QX, you opening Wars wet it’s It California yes. have been free. in of I’ll

So like the an multiple Wars. impact parks. But I material said, seen issue that’s Disney been we’ve from a opening not across Star of

Marc Swanson

know we few differentiated add, we’ve we’ve a other since specific have this XXXXs product. here I And think said what Yes. to in I Steve, Orlando, we the quarters, a competed and would

time, have and value good a of We have open. we have product, can seen we think lot parks to consumers a and long we things of competed offer we’ve a a lot here good and a for

Orlando. compete And feel look, good always continuing about we to in we’re so –

Gus Antorcha

capital that add thing that is is including view other would The thing are of on is what Orlando a for Orlando we’re my building, good – the others just SeaWorld investment in amount what I therefore thing for a in Orlando is for positive to today. Orlando building SeaWorld. an for going than bigger that’s think vacations it Orlando make And even I tourism for destination and SeaWorld, is and

differentiated. We’re

have unique a value We proposition.

compelling animals. – that Sesame, we for we their in provides vacation part our have our and And of to I We coasters, like experience come lands a have we very are us. our together, roller spend think have differentiated family with

And visitation into see to coming benefit I so think I if drive encouraged it. it you and will investment by Orlando, will because I of more I it And it. mean, the think I’m think market,

Steve Wieczynski

And could? you or anything, Marc more guys? Just aware can pretty should be weather one it’s anything July I quarter, looked one third of if like as you maybe at for normal comparisons And for ask that. I quick whether we was

Gus Antorcha

is say. We July. couple Let would weather better is, July, in into performance whether the don’t impacts weather we’ve let through to account. as our we heat a specifics usual is, it been it weather again the just shifts down highly here manage seen. the it’s in But that The continued what out I’ll things have there Marc saw or okay. you it’s and that typically we discuss California. the was we – want in covered have performance, – June take me than without in would trends waves in won’t I know, on or headwind Northeast clearly of in a – weather it, we’re of seeing comment but Florida – media, July And But you may in this been

Marc Swanson

in calendar QX is call is than Yes. shift, the last would day less And a on year one I weekend Steve, QX. what this there specifically out negative year. There

And so for significant. is QX day part pretty weekend in most any the

having less standpoint. just timing negative impact, a one going So is be to from a

Steve Wieczynski

Okay, color, great, thanks Appreciate guys. for the all it.

Gus Antorcha

Sure.

Operator

ahead. with Wedbush Your Hardiman next Please Securities. James go question comes from

James Hardiman

morning. my Hi, call. taking good for Thanks

in don’t So put I context, OpEx $X costs like guess, for quarter think much biggest maybe $XX terms of And third decline there in a And quarter? XQ think million of space reason park I less are year-over-year the Is that, taking there quarter, costs XQ you business, the can’t OpEx that I it XQ? be couldn’t an $XX any first I of think that and then as theme in in about given the down know I of types what’s declines. the shift why driving sort the your the precedent out? what costs? in is was in about million of between is Easter another that, seems million year,

Marc Swanson

Yes.

James, this Marc. So is

expenses Let qualitatively. as in can kind then reduction relates in some of me the the in dial to and about. primarily specifics in decrease the But look, our But of the Gus comment would can fixed write-offs. on talk efficiencies you see kind operating more result quarter, and obviously which efficiencies decline Gus focused that a focus back a to of I on asset cost labor cost in say, again cost

relentless rest the of focus, feel kind ahead. have a we there the on is lie just focus about tell we think tremendous we is a of and you that do opportunities what year, As I’ll cost

and going know to XXXX given to of not I not when we’ve optimistic, we – we level the and we still going our million we’re part $XX come future. that a goal look reach you stop as are but goal, stop, what If in see to we’re

Gus Antorcha

way. ongoing some in Marc. think focus Thanks, a comment, echo just I of cost an be will for I us Marc’s would

to I we think now. still pushing continue have opportunity

bit a we But we’re on always on efficient becoming the sure working without you and and it of I team think I’ve lever it’s cruise lowest find of as continue we again, continue has Now guest impacting it’s think an sometimes we’re going business. about been industry, you company to this we’re little the came without and what I the push – in much operators from experience. one lot push approach trick you become more way very with will testing to the and I to hard, is learning think here, the cost go. and we a I to think And ways a back. is making the pull cost to and what focused and mistake make doing

with I sure that business. And working continue think closely to of so and to that work teams focus the I – am continue drive cost make we out

James Hardiman

as asset mean to year, like labor basis? be able be should we quarter you sounds – move I’m the not on biggest the but should fixed the like the of continue bit I But also guess, write-offs you it costs a sounds bigger as see big just moving you clarify, year-over-year that reduce should on it are, if of or clear benefit into real that to forward. what I’m

Marc Swanson

I out fixed the as bigger in the talked on because labor simply included is decline what that was about decrease million there just number, OpEx, and Yes, assets the portion bigger $XX just of was mentioned pointing I the the but Gus well.

don't So I we focus you reductions. initiatives. we're efforts a said, to those those into to you And bigger to think, that have move as as on going of think that continue are look, I quarter lot incorrect assume around a Gus

Gus Antorcha

question Next please.

Operator

comes The Andrews KeyBanc Brett Markets. from next with Please question ahead. Capital go

Brett Andrews

Hey, good morning.

So I guess, mentioned pricing strategies the learn testing with in price quarter. about guess elasticity cap, you attendance that any trade-off nice what you did per growth or your I were you customer? this but the

Gus Antorcha

know, I'll while. take that. as strategy, promotional we've for Sure, We've communicated you testing, been as strategies a pricing

me but move learned moves competitive promotional can imagine, learning. get products, we've for to to highly because gets across on different specifics you as what both what attendance are think into and structural we and pricing pricing, I hard folks it's

can the makes promotional learning activity learning pricing. say really like it's it of But into it more complicated the details structural have difficult when little exactly can't a as I gets and said, I what you get will competitive. both because are you And just we as highly I imagine. weather, shocks on exogenous

Brett Andrews

Understood. million on guess, is And how progress quarter. your million guess the $XX then could I should savings think estimated here? I current target from trending line cost you and maybe future this left much that Marc, tie how line, just $XX at to from looking about And to cost going that? savings help we that

Marc Swanson

good I savings. you've we Look, our million. going do seen not that. We're stop when to Brett, progress made $XX reach think I Sure, cost on we've Yes. can as

We have focus in of a area. this lot

we that savings as to pro go – line cost them, bucket. identify kind into forma that So they look on execute of things come, and the

can what that's there have we that today, a tell what but on focus you, And I is that. continual

guide I to cost to than want going optimistic we're more So don't we'll a you other say continue number, and we're I that to to focus find specific to to continue think opportunities. on

Operator

next come with will The JPMorgan. question Quadrani from go ahead. Please Alexia

Anna Lizzul

Anna Alexia. for is Thanks this Hi, Lizzul question. on the much so for

Just Disney of follow you advance the do the stronger any do how in with And overall, your for than season parks? expectations the any in And the given you unique looking renewals and also at ago? any market and new expanded terms on give for seeing as holders so ahead you bookings pass see year you're if wondering pass did could up, just you the attractions Universal? color much. season attendance, Florida additional have a Thanks QX

Marc Swanson

question Marc. and will with that quick that. just that is several continue talked on for to I can, last I opportunities continue to an that better on that do comment focus we'll focus can that opportunities area continue pass this to we focus and on there on. on we'll – area, QX. lot grow is a on there We've focus that's I area, pass, on your pass, to think then quarters, the and further of to about a have Look, Yes, we on is start

have the our attention component revenue your And been I range, went in revenue. pass. deferred for X.X%. revenue, It deferred call have up of of would up the Zhonghong as it to increase, our to biggest fees is the the write-off used you season if that know, not X% would deferred that the we in

pleased with growth on focus revenue. have we're look, of So we And pass. deferred the lot in a

more think on out Steve pointed in let one to a QX, of I you question the weekend thing only I but quarter negative day, of Gus is And the less I'd one things remind to – wants specifically is, shift maybe with qualitative. there can talk if is, your calendar I the

markets. competition I your think come around to in and was question more other Orlando maybe

Gus Antorcha

some ahead, I grows I about actually competition we and Orlando talk July will then at about SeaWorld. the benefit talked on that how high already, a we quarter, specifics made in level. quarter, comments the as believe started And think won't it I

Anna Lizzul

competition? any advance for stronger park's the Okay, the you bookings thanks. seeing Are more given

Gus Antorcha

Yes, specifics. think on not to we're I again, comment going

Operator

Thank you.

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

Michael Swartz

guys. morning, good Hey,

where generating I around operating around in running benchmark I some of sales? or color mean anything maybe sales. a maybe it's business little right Is there us a of reductions go? as you too 'XXs particularly as longer-term, you can you're you are anything the of more expense higher terms the park of that high the Just a a percentage percentage cost that think question in level that of maybe operating now of Just at think things. just targeting you're around, or side give

Gus Antorcha

Thanks Sure. you question. understand. the sure make We'll for

talking the You're month spend of in-park margin. margins our retail park about of

Michael Swartz

of as park Total percentage spend revenue. a

Gus Antorcha

Yes. Okay.

few comments. me give a let I’ll So –

there’s think park. I in significant So opportunity

and industries, industry side, driving think the focused within desired. spend I that’s and look cruise beverage the And generally other be cruise I for I specifically see at leaves to If a it I been you came food on industry, theme very opportunity parks property. in food significant they’ve think us. lot on from

eat people parks parks. food, but theme at come people theme Now don’t to for

the is There is primarily that’s to opportunity sales significant you there category, sell-through. think given opportunity improvement merchandise – category there’s I want so we drive I what in how as think we in and margins, the both and it’s offer beverage also retail around as the And sell. well and

for it. as margins think cost merchandising I well. it well is us so how opportunities do And selling a matter there, think as and gets of But lot there’s there we’re opportunity as I material what and we’re

the that so we are within lower drive inside the at parks. looking we And sell cost we how items

Marc Swanson

heard What we optimistic And talk in-park we that’s a piggyback our on Michael, little interactions add spend that – also about to I is just mean, neat to a close it’s really get –then experience ways. and that’s – a of know animals we offer have up interact a of some I would And we and zoological us world-class in that component collection. world-class you’ve with SeaWorld this unique Marc. bit about, that something only can a lot different is zoological and are so

So amount that we a is on that as an area have tremendous well. of focus

Michael Swartz

this in And on, maybe just to you on generate back great. CapEx, those Okay, piece, terms what as given ever some you of color then as investments? pay about you talk to look of ROI have any maybe

Marc Swanson

try Yes, I obviously mean, those what be do we there I on fairly our but a the tell obviously process sure very so we returns quick of mean lots into returns to near that ones look, can believe covering are term is, go again – you nature. going for to that we But mean spending, return. things, a I near-term is I CapEx have in to we’re that have factors make

Operator

The come ahead. Tim with Fargo Wells Conder Please go will Securities. next question from

Tim Conder

to on and touched ongoing that more execution. couple to you. of on I color a the have try maybe And may. I on Thank wanted little been if go a congrats gentlemen back get questions

away seen folks maybe scared see got hyped then of the maybe that until with major and to we’ve go San delay a by things things ride the Let’s along it excessively that to now. competition. January media Diego, from Disney, appears the In

to have anyone way, cut you Just that Disney in delayed Are any the to other the same Universal That’s visitation you that’s yourselves gone and in people And folks color be yourself benefited we’ve on Orlando and kind along benefiting maybe that line if one. How maybe at guess here market, any all, that? do promotional. else? whether haven’t also seen and they question think a of or seeing day? degree Disney, out I is

would year-to-date Thank color us year-over-year, unique give units change, could units, your again or you. you if then have how helpful? dining some that season additional pass guests pass And be

Marc Swanson

me Gus at Tim, a your metric this period. we let kind can then answer question a let first first with me over your Hey, the unique is a visitors, question – of Marc, – on one. and look Look it’s rolling start XX-month second

maybe you have already seen I’ll bit unique on of think about – little competition, it’s talked then maybe, California increase small a and we So the about I this Gus a in And let talk kind visitors. but…

Gus Antorcha

you and comment San come summer. you the to so promotional I offers Yes, with may think you'd exactly ask why, then sure Diego, Orlando Universal Not in have on Disney and over seen some have them.

Diego we think I before, manage San on said impact have what significant I material demand opened based seen, San at not a we like to the in we and in they see impact Diego, up Disney World.

out, on negative it’s you’re is So little asking positive. a parse to hard it’s whether a

is say impact. haven’t seen we can we what the think just I

Tim Conder

you on Or or take season pass color part. thank Gus, you any ever for Marc, diamond that pass that And Okay. year-over-year? and additional want the Gus to units

Marc Swanson

ours, to passholders and weather. mean mean focus that are it’s for by locals get impacted I an again competitive reasons, into of most can a able think it’s Look, No. to of know I be area also not going can right. I weather, – area – would specifics, we’re kind we avoid they I

is is and they I home. with stay weather point But continue to deferred and think pleased what we I revenue. tend to there when that deferred we're grow So would – to bad revenue

Operator

America Lynch, ahead. please Bank comes with The next go of Goldberg from question Bryan Merrill

Bryan Goldberg

standpoint of Is of could a from wondering do made a for on back go pricing was comments some out if looking opportunities where you pricing years, to the see strategy. you Thanks. I the we the curious couple I'm the greatest business. should it milestones the in-park you're is or have that experiences, admission more be then in-park, side, what regard? thinking that just progress in the follow-up. about beverage and side. in I I'm we food for curious how And looking it and just on a

Gus Antorcha

Your pricing or to I'll revenue? answer both. question Well, relate specifically

many the with on on think don't very and about you much pricing, to isolation. think together tied when in I we're articulated other and So factors that we've work pricing works that pursuing. strategy and it's decide you Pricing

events, order on And it a rides, that generates that focused in adding capital effectively. for we're So demand. new adding and to market market then new we we've new to have demand, got lands generate

media capture our that revenue price So that then gets got and it a strategy drives placement, to creative, return. drives demand and and digital ultimately media, you've

down we're those, I work one parallel and think what the is path just levers these to of on all in pricing is

continue I we'll think lot we've and to a lot. do done a

we've activity, pass promotional made the to talked program. we've our pricing. – We've us seen You've about changes structural our changed

the to other pricing All focused those. obviously to well of two as creative with each continue do those get work as on those us see refine work us together and and more we each influence other. and what and sharper fine tune together like I'd on media you'll see

as milestones. far As

we how do we're two and on and of working I are in strategies, terms goal that's and both realize progress per really every think that's like you growth and revenue cap would evaluate the the leading in towards have pricing they that. the over long-term, to to they per – every you'd to our cap our see we're quarter, revenue quarters what able

quarter; over the in the quarter, a but happened adjust maybe quarter, so towards. that's working adjust to I seeing little and you you're up maybe in in down, long-term, a a and things what Now little the we're particular think the milestone you

Bryan Goldberg

far international, you've haven't this international unfavorable on weather I thanks. update year, but right, in mean the so while. And I had I'm seen related is we little my trends a visitation an curious, appreciate follow-up on trends All

you are in I'm terms source top three So of what curious markets. your seeing

be Canada, UK Brazil, greatly would think, and color Thanks. any I there appreciated?

Marc Swanson

it's can Brian, Marc, Yes, I take that question. hey,

down. to Outside rates we that but an environments, look, the We we'd equation exchange execute softness some where if we overall. think, pleased in so do one execute rest and the But you we when see you – them exclude on. kind the said don't we from Brazil, of can international of is necessarily and don't is we're obviously things control Brazil improvement. like political seen Brazil, look on, category, as I area we at have of the to try

Operator

ahead. Capital Tyler from Janney The Markets. Batory go with next question Please comes

Tyler Batory

morning. good thanks, hey, Yes,

of just circle side my have things. questions CapEx I answered, on of back from been couple wanted most a to So just me, the but more

year your quarter? before And the you was you that all was year any the results discuss to you peak significant well? I How just up the wouldn't guys as able in you past, were season. then on of there in to attractions open in think terms why that next open an for this guys second time new is everything and issue such can why reason expect driving

Gus Antorcha

on making we was been honest. open it ride early issue why I can. relentless know do has to think don't I we sure focus an historically, as as there a be

to they to and and we clearly for is park the the continuing been that. benefit So they openings on on coasters, our that us lines it they're have this in received well features things great us our or I and many and satisfaction great attendance. was having talk new the to so the to for the myself, new experience market additions and certainly focused the to measure very year, experience. do the on guests clearly helpful team help think guests allow from guests to help and to and rides see deliver improve in various written that park, are the and We them do I of

Tyler Batory

And per shift And to those two impact impact I just Okay. the quarter capital to banks knot then want does and on of of specifically. the of the cap? in admissions then bad emission on your can what sort the weather, sort just tie explain you the also Easter what have per here

Marc Swanson

Marc, I Yes. take it's that Hey, can one. Tyler,

to not you we're in per able come then and give the obviously in cap, the be you locals quarter Easter specifics, to benefited obviously. is holders mix the and I visitation react you and what had obviously that can to pass not come when have of to admissions tell but tend some So going weather, your

very believe So and when we'll mean, as at and look we products to at in do. this did inflationary – pricing look, that certain you grow goal long-term having that's our that but mentioned. business the the We look do said prices I on over we Gus quarter. can that's level increase what

that do long-term, going look, optimize on be and we sorry. learn and the an and times Having cap could certain test Gus with that, cap. attendance, over as But admissions grow we and at And test we're we're revenue mentioned, feel total – to then focused points. both always odd driving revenue and per can price per said revenue

Operator

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

Chris Prykull

promotion/marketing? what and Good break are domestic local each from morning, maybe via the tourist you ask those about And give how seeing of cohorts guys. you Thanks targeting What customer. customer them wanted types so much reaction those been for could each of down color some between taking the of specifically to maybe and the pricing And questions. the the of are has whether each year-to-date? I for around customers? you just

Marc Swanson

Yes.

– pretty this and obviously think at getting comments. you Marc, impact, I is clearly, probably weather can some specifics, me I you have look into on mean I've to Again when local your but give this an with is that domestic, I local going Let to so guest. alluded more

we're the again we're in pleased into they to I we're in what markets, Having they what seeing want improves. don't come we're I – can there. And said the can get think with I weather think again that, pleased but domestic specifics, category. they're so seeing when

Gus Antorcha

second target working competitive those segments better we’re ways something been about And get to different I of on – your there. behave on was continue how we've going local, are think we're and that's at, capability of that do think we working It's and question slightly domestic the because into so they geographically, building customer there it's international how again, we get detail, to but And and the target we can't how markets. part shape going for we whether or differently. we're the have something started offers or to reasons, and to

our target us build. important so to capability to them is ability for an And to communicate and

Chris Prykull

for then laid out timeline thinking I was a you ramification and it. know about thinking on so would much. a you Got the that about was delaying park, And originally what about Are the potential Place update that? just be? maybe new there Sesame any year Thanks there. How are

Gus Antorcha

that the working that something park, open to share, share We open specific it, When plan are that it. we'll park. open and working timeline on towards have but park, we we're to

Operator

from And ahead. Conder Tim our last Fargo Wells please question today with a go Securities, follow-up is

Tim Conder

Falls. ride to Gentlemen, potential you. the on any the related wanted Infinity last delay Thank you Have just I was or due recovery know OEM. issues check anticipate some do you to to the opening in that? year that with

Marc Swanson

look, the summer having can we Marc, at who get time, obviously – year of new I now this opened. are benefit of were I question. it's hadn't It it's basically the that we we were for disappointed ride with last highly take Sesame park at people it Tim, Hey, opened the hadn't this mean, over area ride Yes. Street the opened, disappointed, fall, the so and lot a along a visiting as new well. in

excited we're have portfolio in open. to it the that and So ride have

Tim Conder

recovery there any any Was anticipate Marc or do that? you from

Marc Swanson

I ride, benefit. like I mean have year of that mean far I far this kind get like a an you breakdown, into as And recovery as year, basis, like… that. mean don't know year-over-year do, didn't Yes, But that we'll as do just on think we added think we as I specific I just that's last

Tim Conder

for the from OEM, delays the sorry. Monetary recovery I'm

Marc Swanson

we're Okay, on that think on comment sorry. going can I to comment that. or don't

Tim Conder

you, Thank Okay. gentlemen.

Operator

Antorcha turn over Ladies would any to gentlemen, concludes for this and the I conference back to our like Gus closing remarks. question-and-answer session.

Gus Antorcha

On to to Chad. to mission every our want further joining I our and the exceed efforts this their for here our you, SeaWorld, ambassadors also us expectations management the at rest Marc thank you of I guest behalf of want and morning. and for to thank Thank again contributions day their team to protect animals.

in look talking on we about you. of discussion call, in that comments forward Thank the coming from our we're tell and we months the can to to the made you. all business the you confident As

Operator

for And sir. thank has The you concluded. presentation. you, now Thank conference attending today’s

disconnect. You may now

United Parks & Resorts (PRKS) 6 Aug 192019 Q2 Earnings call transcript