SEAS - Earnings call transcript Q4 2019 | United Parks & Resorts Inc.

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Operator

Good morning, and welcome to SeaWorld’s Fourth Quarter and Fiscal 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. ahead. go Please

Matthew Stroud

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

Joining are Financial Officer; This XXXX our morning your then me Marc morning, and to and call and quarter questions. review Executive this we’ll Chief Rivera, Sergio the open will Swanson, fiscal Officer. Chief results, fourth up financial we

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

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

Sergio Sergio? I turn our Chief would Officer, to the to over Executive Rivera. Now, like call

Sergio Rivera

you thank my joining SeaWorld. for everyone, day at Matthew. you, and XXXth marks us. Thank morning, Good Today

results, I brief my about Before into comments get few to I early want some thoughts. about just and quarter observations and make fourth a the full-year comments

a a This differentiated that world-class has model valuable collection continues is of company irreplaceable brands up satisfy assets. strong, its organization passionate, made potential. unique and highly business It also and I’ve and is has of and and of delight guests of It truly employees some of. part meaningful any being the has had the and unrealized ever of hardworking engaged most a privilege to

by education, years shareholder and around animal has significant As effective rehabilitation. organization clearly these struck revenue, increases attendance, research, few results, organization’s dedication that past value. the I’ve and yielded EBITDA particularly animal has couple past of time to welfare, conservation, I’ve thoughtful executing a spent strong in This the the adjusted over and been with company been months, strategy and rescue

costs, value. As and you all and communicated hear of the we events, drive and see and intended rides, you will communications, many to we progress strategic make pricing pillars, marketing have our to from across attractions profitability each as over opportunities last greater and and continue several to today, shareholder quarters, to us

shareholder as should to you continue will we new we we which drive will strategy along You expect, adjustments and enhanced value. make communicate we execute and on the will this to levers tweaks, and to way identify

assets, organization excited realize ambassadors. and of I’m full and and be here the brands our the to potential help guide

turn recent let to our financial me With that, results. most

driven cost almost rides, initiatives new realizing communication organization. efficiencies year. fourth record and a adjusted record focus to pleased our and attractions full-year strategic quarter every results and are for these every results financial in relentless We believe the by and pricing marketing, the income on and revenue events EBITDA park We for net quarter Enhanced and across fiscal fourth primarily on were our report with focus overall year.

the quarter weather headwinds the peak in fourth despite the to in summer meaningfully quarter by compared XXXX quarter. unfavorable grew to in call, in was impacted months And continued year our in compared prior as weather prior our last year. Attendance attendance X.X%, we discussed

We quarter believe driven park value parks. our calendar offerings events, the attendance Christmas have the best world, theme our of Christmas we representing for Halloween outstanding of part consumers. in believe by growth popular celebration the at in including and Howl-O-Scream, Spooktacular, the some theme was in Town, We

total quarter. was increase the capita growth driven capita the X.X% making X.X% X.X% our fourth per in reflects for in revenue a admissions the per we’re full-year strategic on pricing by revenue quarter grew capita and We Fourth per and total progress initiatives.

efforts see to adjusted EBITDA. working and reduction and that will and enhanced from our execute we’re expect additional benefits cost to continue efficiency, flow of the to efficiencies expense diligently on our directly we identify culture We

important season job growth our believe of saw doing for we has provide offer. the strategic the communicating Importantly, we’re an base year-end, We of in which pass pass values know, compelling us. our been at passes as better the a these some best highly focus you and in season industry offerings value

to attention XXXX. our Turning

parks events excited we new every one believe to over markets, ever our and/or providing experiences compelling reasons introduce be year to what again. highly and to the for our strongest visit attractions, visit with very record-breaking and rides, over of coming to brand-new We’re company’s many attractions, to

remind Orlando. spike vertical swing we be what’s a Let me in Breaker, America, a coming be will featuring the Ice XXXX. beyond everyone Breaker Ice more will four which take coaster will in quadruple a in steepest in Florida. filled and drop SeaWorld At Orlando, first sixth introduce in North reverse few coaster airtime the at than any leading park launch backwards up SeaWorld both forwards, minutes to vertical launch XX-foot the to launches, culminating

the a vertical before drop than Emperor, will into car Diego, the introduce floorless angle climbing XX SeaWorld coaster feet, to the a be more fastest, hour. dangle After which and accelerate XXX-foot tallest, XXX first at on that At dive San Coast. plunging will per longest we riders will will than coaster West more miles XX-degree

will introduce wooden At SeaWorld the miles XX San fastest, coaster drop Antonio, feature XXX and be tallest, which will in feet, airtime of per XX hills. of we longest hour, and Stingray, speed a Texas, over Texas top a will

before and introduce will airtime a coaster, of Tampa beyond At Iron which be will world’s we into Bay, Busch fastest vertical than moments. drop. largest hybrid dozen Riders the climb America drop, Gardens XXX the will reaching Gwazi, and hybrid experiencing world’s a per hour, XX North the in and tallest steepest miles more speeds feet plunging coaster with

world’s will airtime accelerate riders coaster will miles XX drop, feet. speed At and Busch to launches, fastest multi-launch Gardens of Williamsburg, a a per We include hour which and the height two will will introduce moments XX XXX XX-degree Pantheon, four inversions, a be of and

At in pipeline of we introduce XXX the accelerations. riders send Race, will tight Aquatica Orlando, slide of while feet will and slide Florida, will and through the first all Riptide which state dueling be nearly turns navigating

on two we Solar tailspin in the sliders journey rotations will raft At first sending North high-banking open rapid be Adventure Island, America. which waterslide dual Vortex, and tailspin descents swirling introduce will features. family through a slide This combines

water first feet rings, of with thrill we will color you new over introduce guests will rafts take XX of sound providing XXX USA, slide in through each new Aquazoid Country dynamic spread experience Virginia. the This changing slide, Water its be will which fully kind a in time At Supercharged, enclosed ride.

and high-energy San twisting At body be first XXX riders kind its of introduce Texas, turning with with effect feet will exciting lighting Tonga giving will enjoy and and music, the an show. Twister, thrilling Antonio, a where will sound light tubes special Aquatica we slides, of patterns which guests in two through

introduce will double-decker a Street-inspired backdrop and on bus Bird’s around Bus, a some with Big oversized, his friends. and red to bus Tour on this At the goes Sesame Place, whole bringing we smiles cityscape with board. the as will family Sesame everyone of furry ride Big around The enjoy where Bird

This before world-class of in as largest coasters. the of time of are a have and our parks all rides our season. all open the Equally peak scheduled is each year, we theme important, the and roller to five these first coasters summer opening same in in attractions are truly coaster major our history,

SeaWorld weekend pass this weekend. opened will Stingray and be for guests fact, for In coming past at opened Antonio this Texas members all San

Our teams our refining great of reorganizing the see will effort. planning we really year, this job and done fruit have And and a construction this process.

Wine We festivals Gardens at are at include Food our and excited Busch events The parks lineup about also of for biggest events our Seas our Seven Food and SeaWorld parks. our XXXX. popular Festival

parks. Our return Busch parks, while SeaWorld this award Summer our return Electric will summer Ocean will at to our our Gardens Nights winning event

year. All major Christmas parks feature and this our Halloween our of popular will events

Sesame Kids’ Craft at in and at introducing be including in Mardi Elmo’s Celebration Orlando, Birthday at Orlando, Orlando, also a will Beer XXXX, brand-new We Gardens SeaWorld Busch SeaWorld events Festival Tampa Bay. SeaWorld Gras new Weekends

progress But season. financial and into XXXX. as our as operating with we have spring we drive pleased we in and are we opportunity believe intensely to additional execute head improved are strongly on there’s performance, significantly to continuing focused the We break mentioned,

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

Marc Swanson

Thanks, everyone. good Serge, morning, and

with record net quarter EBITDA fourth for and and were results income fiscal year. financial mentioned, quarter Serge record for As the strong, full-year the our and fourth adjusted revenue

events; of of X.X%. largely Fourth improved combination the a believe that positive attractions the We marketing, and our increased rides; pricing and enhanced and overall communication initiatives. reception attendance quarter compelling new from attendance resulted including factors,

As including the compared some during year mentioned prior that record we days, in limited we unfavorable some the saw growth. days. to weather our quarter, this strong unfavorable attendance had morning’s press weather particularly Absent release, attendance

in from of quarter revenue The million, attendance. During of an admissions compared or fourth of revenue growth both results the per to increase quarter, in X.X%, the increase we XXXX. and generated million, $XX capita $XXX the

a compared loss net $XX.X the fourth a Net fourth the million. of XXXX. includes expenses, loss of million, legal charge, Net $XX.X fourth of settlement of includes in $XX.X $XX.X earnings insurance net recoveries reported pre-tax approximately of quarter of million, approximately a to our as in in quarter XXXX of decrease of million quarter XXXX loss We described the release.

reported of we the $XX.X revenue or improvement driven XXXX, was year EBITDA prior to adjusted adjusted million, improvement cost EBITDA primarily an and total in quarter realization the by of initiatives. increase compared fourth quarter. of of the the savings $XX.X XX.X% million, For The

the capita partially by from compared fourth revenue results visitation new $XX.XX, total per driven in the admissions of increase pricing Fourth was in $XX.XX mix. primarily strategies, quarter an impact capita quarter increase by capita. to of The in offset XXXX, primarily admissions per per

largely $XX Looking factors, at approximately the by X.X%. increase total positive an was of our including results a for X.X%, or million, reception of offset Total million and unfavorable revenue of marketing, our fiscal $X.X guests, attendance negative of communication driven to holiday compelling new increase our an $XX.X XXXX, was pricing billion, rides summer combination during impacts XXXX. These and were from by particularly events, overall XXXX, peak enhanced compared attractions factors in and when initiatives. weather and seasons, and

million, an by income improvement $XX.X a an also and compared total Fiscal of Adjusted the $XX.XX year $XX.X for or Net company a record increase capita the record and to in-park the was an in revenue EBITDA for XXXX, was for capita increase $XX.X was million, XX.X%. per XXXX $XX.XX, primarily per $XXX.X million. spending. in of million, company driven

Net settlement XXXX announced earnings income costs. includes insurance expenses as million $X.X severance $XX a related to legal million associated pre-tax previously with $XX.X and with of and approximately recoveries, in expenses pre-tax in charge, fiscal pre-tax of associated transaction $X.X income Net million our described million net XXXX, of includes release. of expenses, other approximately separation-related for equity a

Now sheet. turning balance our to

the deferred XXXX. $X.X end deferred deferred would the increase quarter revenue an revenue exclude have million, $XXX.X in approximately current of of quarter our approximately XXXX, the the of revenue million as of almost of X% Our of balance X%. related ZhongHong as to If increased of we was fourth end

to capital approximately on We attractions. million on million which XXXX We to XXXX, on core $XXX schedules XXXX ride CapEx million or accelerated estimate spent approximately of core $XX a in expenditures shift XXXX and of due in $XX million timing for opening CapEx that and was in relates expansion $XXX was projects. ROI

summer we mentioned, before opening peak previously the some have starts. we track of season open our rides As are spring break, and rides on all to before

expect we approximately target million CapEx. to forward, million in core $XXX Going to annual $XXX

our that spend or and non-core hurdles, discussed, Sesame including previously find will ROI like on have projects, on projects opportunities. California, we opportunities revenue-enhancing CapEx return new park opportunistically in cost-reducing we As expansion incremental when meet our parks and similar other Place expansions, we

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

you for heard have as further and improvement. me past have As quarters, we say even the opportunity Serge several we mentioned, consistently over significant believe

while additional and operate identify will we total costs our focus efficient To eliminating more to accomplish business. this, attendance and to revenue, to unnecessary on continuing continue ways driving

making adjusted EBITDA of us goal XXXX. our are to higher-end We of greater good to million gives achieve $XXX progress, million in of the confidence of ability by which $XXX end the our

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

Sergio Rivera

Marc. you, Thank

the to team I closing meaningful of want our on to call have to to our They continue some comments. Before we focused open their outstanding questions, your guests. ambassadors experiences providing thank for efforts. remain and inspirational I

ambassadors’ inspired care ambassadors. protecting their the past the the and globe. and we the I’ve had have I’m months, dedication habitats with opportunity to are us and industry, Those theme dedication incredibly our believe join with animals, them. of of be park the mission in and time most several passionate proud in across our some our have impressed visit of to to parks, our working the guests our for parks our and their I to spend employees animals with our animals best, Over sincerely our guests. under care I been

we On in company’s in that rescues quarter. the announced XXXX XX,XXX including XXX the animal over fourth over we surpassed side, rescue the rescues history,

and We wildlife. our are efforts proud world’s rescue and the of animal to we leading one organizations of protect save are

we have exceptional we model. business As before, said an have

strategies, every marketing with and and initiatives, of as focused year. efforts attractions introducing in well events pricing execution rides, every on and our enhance goal our are our park our compelling to We a improving as continue adjust new communication

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

coronavirus. I go coronavirus. tell impact we you discernible all we will Before you no can questions, the to I to attendance to related expect is, address our one today have, seen want just topic that I What on have

We are obviously the very situation. aware of and monitoring

With that, questions. let’s your take the up lines open to

Operator

Thank you.

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

Steven Wieczynski

per strategic back was the And go initiatives, much admission guess, price was quarter, growth how initiative. saw question I guys, Hey, more X% the to about caps per the I really think should talked in about guys good due year? admissions morning. to room we have you to Want to in which caps is, increases your those you marketing how right think for as you this I push marketing now? as well wondering

Marc Swanson

Hey, this take that question. can I is Marc. Steve,

end in per we talked back-half the in would and year noted. about you caps, we’ve As as year come you that sometime, thought growth to saw quarter, and we got as achieve admissions the the the of for towards through of we the

at get that. a inflationary increases have We think, increases perhaps power beyond price we take. believe we about We minimum, times be continue and will smart the pricing we and to can

an going to the optimize going we’ve test all eye as all so and we’re total towards to driving with in and to towards driving total eye have continue We’re an talked – revenue, revenue price different always volume. about, points

be long-term, overall, pleased in believe we’re pricing fourth and driving our admissions per the towards obviously, ultimately, again, the But in eye that’ll revenue. to but with growth we continue the can an get quarter. the with And we over total cap goal,

Steven Wieczynski

be – I be you’ve there what your impact that if is assuming that that us But virus. you mean this could first? And I end impact going that to XXXX And more through kind kind guidance, the of now. point, And whether you domestic, this assume be where think would would whether I lack international. I gotcha. impact an at guess, or was got you that get I no terms of in that impact, addressed, COVID Okay, would you walk at out is from Serge, then of range of the see there guess, right around EBITDA

But which seems long any make of almost to guess, could be you’re impact would that that the And multiple again, super Am virus part upper I and on today, it to about you trajectory it almost questions. kind last like this the think us I it’s of is the outside I excluding of question, way? on the believe range. know that crazy

Sergio Rivera

the – Yes, don’t part. look, why – high in upper we range last We’ve of upper of have we’ve I – part described we before. in with the start our signaled the the confidence range that that a degree achieving

Obviously, us, correct there that. that. – be So out threaten your events to probably would hold we you I that we there’s think recognize still and statement and could

and days. To it’s COVID early the coronavirus question, the look,

seen I to in stated As no date discernible our on remarks, our impact we’ve business.

health the would some our we safety take care. working for employees, and very animals our it We’re And seriously our start. thinking contingency plans. Obviously, through through or where that’s and guests under

that, Beyond I Stay really say speculate tuned, guess. or want don’t I to more.

Steven Wieczynski

it. Okay, great. appreciate guys. Thanks, I

Sergio Rivera

Thank you.

Operator

Hardiman The is Please next Securities. Wedbush James with from ahead. question go

James Hardiman

could Good consumers? last exposure sort point, to over I know morning. third To that of to talked on You’ve your significant just at would your right? it’s least about imagine America/Brazil think consumer help the recent Chinese and years, you us Brexit. a talked you Is you’ve about for your exposure, list, Chinese in exposure consumer the with conjunction about UK guys? South I

Sergio Rivera

in it answer no, short not. the It’s list. The top is not is to that

Canada, Canadians China UK, Asia call. – a confusing as As Mexico, sorry, significant of particularly no you seas the Brazil, China, keep the part But South I our stated, not sorry the there, on is America, I’m Latin Canada, America, business. for

James Hardiman

guess, mean, fourth the to that the topics. least have to out that a I maybe the of us couple helpful. coming I That’s San slowed in some Star really data a lot like quarter. then Wars at seems Obviously, to, of people would Diego, obviously, to connect of speak look And just related opening.

lot it fourth park, about you the in even Thanks. broadly has speak maybe you’re think like of particularly quarter if to pronounced and Star your how at at impacted, were from speaking But where Wars and Orlando those that some Diego a what opening? all, San if seems weather trends, park been negative you

Sergio Rivera

Yes.

that’s bit there. – Let me – there’s a

about jump is I in think San how This me on Let Diego. it.

may meaningful You saw some that in in XXXX, attendance. we recall back increases

And starts that I story I think park. the it around that in we think XX% was saw there.

think I is to about I’ve the thinking lens today, that two-year to have it. way you been really park back a thinking think about

As had some We in new you mentioned, work didn’t we out, have XXXX. did a attraction headwinds minor We whether. had as planned. that

substantial in All meaningfully. saw occasionally over of years to gain pretty still up those this the to think industry, to not it’s a Being were contributors the I’m retraction this is reminded in that that we we attendance, euro things XXXX. would new such we though, say a retraction like two see after and unusual

So, I’m with don’t also, came from, is I not retraction coming our where from goal. really happy that. I think

upon So to got great lineup attractions events that. Diego. San coming of a we’re improve diligently We working and to

think amper, We California. new coaster landscape going I to meaningful the We the which that’s addition roller Southern have described. to in a be

we’re going Then that. confident we’re to realize there’s potential that’s Diego San and plenty of attendance. to working that in So drive diligently help

So there. let me stop

I’ve to adult investment a seen market from of heard life. for my us As of of parks as this the a and pretty here Orlando, most lot you’ve substantially I’ve Orlando before, seen grow say various and this and theme I’ve capital it. it result lived in relates

fabulous Disney Star attraction land. their a has Wars built with

result Orlando in and here seeing it. are increases a expect in We of as attendance

what come I’m in I think of saw that. so and we’re about we with I’m quarter generally pleased Orlando, I’m the pleased generally fourth seeing today, what what our results, seeing even out

if to wants add anything going he has to to that, ask else I’m Marc, but… he

Marc Swanson

Yes. I would James. add, just

Serge we’ve years this in this over Orlando As long of time into mentioned, come been and in market a XX lots market.

we’ve And the out to being obviously, hard would years welcome without he we capital our recovery last be visitation. We the park. the had Orlando, increase welcome as two mentioned, biggest investment. of type in it good have performance increase So of the over of

James Hardiman

clarify, weakness San the competitive-related? Diego to you don’t guys really That’s helpful. think any But of is

Sergio Rivera

we attribute don’t I that. to could think anything

So there’s attribute to nothing can we that that…

James Hardiman

it. Got

Sergio Rivera

…to that attraction being our….

James Hardiman

Very helpful.

Sergio Rivera

…opportunity opportunity. we use we destiny control ourselves, we’re apply and results we’ve I over what mean, and have to we’re doing as an working don’t as and I with stated. that want we’re towards we seen comfortable when and our positive

that will compete what is, will confident and they I’m do do effectively, So we so. competitors

James Hardiman

Much appreciated. Thanks, guys.

Operator

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

Timothy Conder

gentlemen. morning, good and you, Thank

couple here. a Just

So that then the you base? color One, one. your I’ll just on basis pass an unit lump of could visitation you year-over-year on your uniques basis your all of saw as from us season give what season into a on represented them your attendance, grow and frequency that if pass some annual a total percent

question, on unit on guess you’re to and clarify, impact or in seen as to I And negative related COVID? XXXX? you represents back as the point, at that trying feedback then to what monitor have you’re looking here – then to advanced not dollar into just And sales any anyway or a here any metric COVID basis, this

Marc Swanson

that like I to Hey, – pleased can with But and we give remarks, that Tim, end on the combination a I going ties path we his which think increase was as Serge then pass or in last were revenue. we’re is a think, at fun I exact look, people – base, pleased of part. or the would mean, it the to – it the that. you year, to deferred and of base, fairly But our Serge the prepared part Marc. in not anything can we said was refer and up first nicely that increase as I with the have maybe card take the take this

of the with X%. sure base think, QX sitting almost the normalize there not some ZhongHong this for of And you fees and associated are been that would the deferred indication the revenue, kind revenue in I pass year, gives that. our across remarks, make deferred And you in to want of XXXX I up deferred were have that one the strength the in came of that revenue thing if

Timothy Conder

frequency then And visitation? uniques Marc on and

Marc Swanson

I had general, any at I if had you we don’t times we we’re increase in an a significant look XXXX, – in mean, think, of people full-year unique visit. the of know did many have differences that in I number – we seeing visitors. how

overall have just a on people park something more into that continue and we’ve worked that that’s hard – We’re them a product basis. gets pleased focus the And to effectively we round that on. obviously year we’ll

Timothy Conder

Okay.

Sergio Rivera

your question again. to I’ll can We’ve emphasize just around our Tim, coronavirus. coronavirus. seen that business no to discernible to we impact attribute

So the that’s date. – and

not can So there’s really more think that much we I add.

Timothy Conder

this I’ve that follow-up. we they quadrupled. internal in you is clients the that doubled saw gentlemen, a of here guess, questions last of of QX, big, or And had Okay. of things and a your effectively fees kind XXXX fees one is morning. functions. duplicated look at I the have consulting Yet areas almost guys, XXXX, this consulting the years, on And couple couple saved your already over if effectively eliminating you in same disclosures versus from

kind can an help that? So to of with your back EBITDA? And also it’s why us as add treated then you

Marc Swanson

take Yes. Hey, Tim. that It’s Marc. question. I can

disclosure our to related agreement and – reconciliation really optimization should out have So adjusted point credit strategic EBITDA what in But us table allows release. the and a obviously, business – our and we we initiatives add is, back I in good press costs.

help these by we therefore, to us optimization and different should a forward. forever business initiatives. strategic help would business look you, back. on scrutiny we’ve But business tell we’ve I that lot that at bucket to also – expect means, very any different strategic add last added optimization firms and something don’t carefully they’re it’s of as before basically So and around we the back. we noted, initiatives, things have costs engaging drive But to bucket We been

Operator

JPMorgan. our And Alexia will question Quadrani ahead. you. with come from Please go next Thank

Anna Lizzul

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

how potential multiple of you coronavirus, Just give prolonged there other a insight would business us impact the of could experience draw the regarding that Thanks. some prior spread out certain parts? can company’s of costs of the and a Meaning could or the from shutdown in your you history in the business? is any what take virus park

Sergio Rivera

me is But us let and I thing the coronavirus add Anna, seen is SARS, for yes. to the and see – flu. be seen Look, The have we answer to obvious things prudent to we in We’ve try to best responsible not the that. think past? something like speculate.

have of see exogenous events of lot earthquakes, hurricanes, a We us – impact that fires, we things nature.

think can we question should the again, business what the your things to coronavirus a is truly I way. past, negative in has that significantly presents seen parallels But, What past in nothing today. and say the impacted have we we draw don’t between in

it’s create to So I – prudent don’t those. I don’t think connect to

Anna Lizzul

you. Thank Okay.

Operator

come Eric will question next The Riley. with Wold from B. Please go ahead.

Eric Wold

year. tend in maybe of consolidated performance with relative about on outlooks last been How of headwinds kind a Good Diego versus or a year. Thank kind headwind kind you. the don’t for of average? your you that given that’s least to called XXXX you of park basis. kind morning. the the of last know Thinking San of about I the of park the that kind expectations some of kind think park-by-park saw for But performance out discuss we should

Marc Swanson

Yes. Hey, Eric, this is Marc.

I mentioned, coaster, rise the he as into mean, the to that described, West great that’s the best Coast. think, the one think, really excited it’s, And I So, about we’re going park. I it’s on be as of going Serge dive

to we’re park. continue that try help some do to other better. going to park also things There’s jumpstart obviously I that’ll had other And that think impacts XXXX. in

performing we’re the optimistic ride And what going open like, and out to he going get that in we said, park. can the So, get as we’re well think, as there. I exactly to year keep

in we’d As when but we’re pleased better do you two-year the like he two XXXX. it a said, basis, on – over obviously years, at look last on to

Eric Wold

yet Okay. permanent you then could of the about took of how has maybe kind benefited kind of those frame would cuts structural cuts – that lastly, to cost see in we be you How you were of then cost company And kind benefit flow year? think and the XXXX much XXXX? last into can kind you – what – and still and of

Marc Swanson

it’s parks that fees, been I question. clear to we’ve to I Look, the Eric, that offices they’ve Hey, and Yes. corporate services, and optimization, labor labor mean, various on efficiency. consulting applied can Marc. pretty cost take cuts around the the

things for that still there’s in at to cost run you’ll XXXX rate see year. come that. a in out we pro some from forma this and number look And – savings if release, identified So you our laid our we’ve we

over two-year if you the last grew basis, we – kind of reductions. we’ve $X.X XXXX, million. grew success I of and million; XXXX over had look million; grew we adjusted good cost two EBITDA, we attendance years, with and $XXX a $XXX revenue, a the We’ve pretty think a

So, and in of also EBITDA million covered right savings, variable cost growth. growth. costs just the we difference associated attendance had revenue there with million the But we the associated $XX between $X.X then

or If you margin. go out, kind attendance cost of back XX% largely laid XX% through we about and at a look an at said flows target our the we

covered we off those So costs.

like parks new costs. attractions, when together, are you get you brand-new, rides, so to things associated require have If things add that and million. that, in putting you things add $XX mechanics close those that and they we’re those into like our things new operators And are an then

to you In you in up, think some industry. wage had north not obviously we’re million When like others in the to well going that cost But We’ve incremental all cases, pressures savings. get stop. of we’ve add $XX I days. added

continue to to forward. continue focus on to We’re drive this going and

XXXX. to And drive the feel I that But share each about number buckets potentially we taking cost – what initiatives other quarter, we how a to as what report and specific what with you and efficiencies we try don’t have have we we’re for we’ll more going forward. highlight – as could

what I think I driving just a the and with leave have we efficiencies of to those focus on you culture is, business.

Eric Wold

you. Thank helpful. That’s

Sergio Rivera

Thanks, Sure. Eric.

Operator

Brett ahead. Andress question The come with next Capital will Markets. KeyBanc Please go from

Brett Andress

take strategies in mix you do Just referenced? give some the detail tickets? price day Can increase less more discounts it Was the did guess, I Did quarter how what any component Hey, single in the you capita And implemented you per on that color you passes? good quarter? morning. the XQ was that season price then much there? on on pricing the on you that work? during of

Marc Swanson

Hey, we on its levers I lot pricing. Look, a of different there’s take Marc. can have Brett, that.

we cases, a in reduce headline ways, promotions, of So, But price. that. like just other we in lot can can some take reduce discounts, things

is, And we reasons, do and, generally get to that so into you know think tell want what kind we I of competitive I the combination would for specifics. don’t I a

power. we We we we take again, in believe pricing general, But pricing. can have believe

as to example, example. for for new passes we’re put price, would find generally be example, as that we the following trying year, sale ways on So, increase one people, to for

up, that. fourth the us see think I think, I to makes in you’ve showed said, And continue quarter. it you’ll And it largely well do So as noted. pretty I like sense,

towards show as the had, We been we’ve past or in that this quarters, thought back-half talked up of we’ve – past in about, kind talked years, would XXXX. we of we’ve about we had,

would that. kind I probably think it of leave at I

Brett Andress

Got Thank Antonio? it’s San getting? that Orlando would helpful. then Orca you transition you days, early in I are How about Show Just of That it. be And and show but is the the you. performing? what guests know talk feedback can

Sergio Rivera

Well, the I’ll question, Thanks one. take for Brett. that

You’re correct.

It’s to with natural the new they and the Orca the order to and describes how We positioning in how them, face. We oceans of that they presentation. Orca’s have live it what refer learned and really threats and a as Encounter. we’ve we educational-based interact the speaks

tremendous has if everyone I the it. call it you the And haven’t to reception show on seen would received see from just guests encourage media. come and The our

Brett Andress

Thank you.

Sergio Rivera

you. Thank

Operator

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

Sergio Rivera

– of Thank day this and employee protect and behalf On not be would the morning. environments. team to ambassadors SeaWorld thank Entertainment, the of you, efforts management to rest their want mission Chad. Marc animals to joining us at every remiss our thank for to in our for you their our we here I further

this we slate goal million. million to the adjusted As are rides, you’ve and in of heard the higher-end events achieve EBITDA of history. our confidence believe our XXXX morning, to We the our $XXX in attractions of strongest have $XXX ability XXXX

increased value. revenue We And shareholder quarter. to EBITDA you. that we in confidence We all expect attendance, and deliver We will to to you we growth. of next speaking adjusted forward result this thank have look

Operator

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

You disconnect. may now

United Parks & Resorts (PRKS) 26 Feb 202019 Q4 Earnings call transcript