- Earnings call transcript Q3 2022

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Operator

Good day, and welcome to the SeaWorld Q3 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Matthew Stroud, Head of Investor Relations. ahead. go Please

Matthew Stroud

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

Marc are Chief earnings to morning and presentation this we Chief Treasurer. will Executive morning, press Adams, a your me Joining will call remarks. we Also, review discuss short during results, the Michelle and Swanson, our on have quarter Financial This open website Officer; then we slide financial and investor Officer prepared our we posted our will release up our that questions. third with along

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

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

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

Marc Swanson

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

to quarter of sixth pleased record are financial report We results. consecutive our

the records We While had Ian the back revenue, our including environment the visitation that not in XX,XXX from estimate and do to have and and still levels. group to a impact significant weather led still these reflect during adverse not Hurricane and a quarter. in adjusted meaningful quarter, are improve operating results our EBITDA we normalized less we guest quarter, achieved we International pre-COVID income financial for to visits still net scope results. execution

our optimized Our staffing inflationary continue is still not to pressures impact cost. and at levels

strength total pleased the are growth during consumer our the total our and parks. which pricing We of demonstrate power capita with and to revenue in quarter, spending continued revenue the in per

management adjusted and to cost and end, through and better. the to enhanced monitoring costs been enterprise and to Our increase increased reduce To this EBITDA efficiencies. our we and efforts flow related for our the costs have initiatives quarter throughout could managing have

work new help profitable and more the several flight business initiatives have projects will highlighted that the operating we we As and coming over we a efficient to inflationary quarter, high expect us become and last quarters. in pressures unusually offset

season approximately October was this award-winning XXXX. up Revenue strong Halloween events, XX% and growth We to our revenue XXXX featuring successful to continue moderate to which pressures compared inflationary cost the Halloween certain and/or over XXXX. While led and approximately for another chain compared at pressures recently exist, temporary parks concluded our expect cyclical to compared XXXX October, XX% to quarters. supply we to related October coming October

we popular Busch Gardens SeaWorld, and Sesame events weeks, few begin Christmas next Parks. our our the Over will at

ages. all offerings feature and unique guests events entertainment, Christmas beverage and food merchandise exciting Our of seasonal for

consistently we to model revenue we improve profitability. our strong grow and believe significant have As our business opportunities and resilient is that and have we and demonstrated,

we I've and significant our with term across operate industry product guest portfolio. As capacity available previously, long in we in trends an mentioned and markets have over growing the demand

Our total well attendance historical XXXX recorded are XX levels approximately the attendance and levels below we tenants in million still high our achieved guests XXXX. in of below

in We the returns executing to are plans our have significant have and to future deliver additional, continue investments high that will will operational strong value. that to and shareholder in financial we plans improvements meaningful increases continue deliver give made today lead we for we we to expect on us and specific confidence that expect ability

about are records ahead, and new in meaningful will we EBITDA. adjusted Any made expect making and that be for our investments drive XXXX. plans and revenue growth Looking very excited we we have will

We of detail visitation reduction with XX our the provides portfolio, of statistic of cost Country orientation park during how on portfolio. a Williamsburg; Diego, DarKoaster, Swing whole an attractions, Rescue of our at a performed Tampa Gardens® Similar trends short more at and few upcoming of offering, Busch Catapult efficiency Gardens events quarter, SeaWorld others lineup Cove. and Flyer for Bush refresh at including Orlando, our the water Water in something our update attendance each and of levels, upgrades, includes mobile Riptide our Coaster initiatives, portfolio Falls earnings the X, across aggregate San San a a and historical Bay; and have and Page around park the slide our to visitation and Investor the previous press Laguna Arctic attendance announced of rides, app. new new on markets of along This among SeaWorld Discovery On description SeaWorld at value USA peak at website Coaster industry show our Surf at Coaster our our the Flume our release and the Straddle Race the historical Rollercoaster our presentation at we we Antonio; have business Serengeti each parks. meaningful Pipeline, recessions, that Grill posted

you quarter, of can we XX% we estimate parks. As last the page, approximately that attendees from as see our our to drive discussed and

two two recessions. peers. the specific On Page Page of X an the show theme recessions. people our compare industry business the peers X, during business. visitation of our to over typical closely our of and opposed as to shows presentation, more a the comparable park theme we Disney the to Our park years our amusement times, similar Universal, industry is destination that show and last are parks more or believe theme graph US performance the regional last On the we XX resiliency regional to we growth during destination dynamics but last business visitation like our US At industry the park

can you believe and recession. resiliency demonstrated recession As our the we XXXX/XXXX see, business XXXX/XXXX in both

our we during returning XX and we the where explain latest This in periods, customers our go to not to expect As of pricing our shows entertainment we we continue offerings. it have versus has past offer value visitors the the our well Page attendance tremendous underscores drive by to recessionary show will approximately also park, we attractive environments. economic historical offering slide only how provide value in attendance levels. the to and our LTM of our proposition our potential resiliency highlights value value discussed before, proposition perform guests future for recessionary park helps business to our relatively performed to business parks grow nature opportunity our given X, our other and of can of Page but million and downturns. and the X incredible a On

we levels are and see discussed you we below As are well can we peak XXXX XXXX still and have attendance. below

at attendance getting higher The We potential levels. back tenants achieved to by of in punchline also parks same would achieve meaningfully we show historical what if peak the our that have all significant we our is attendance be year. to

updated efficiency imagine, presentation. As attendances. initiatives. reduction target X are we you and recapture we recognize can on present to plans We for our cost working the opportunity and Page of this loss an

As have to additional these enhanced efforts around these teams and opportunities. realize we and highlighted, initiatives dedicated we have our

reflect work As the will and on not a we this on Page just On our update months are over an quarter, It working mobile coming select is we we does list. or provide last will or XX, highlighted on necessarily quarters. everything app.

see, to adoption and progress value can features new we make in good usage. continue gaining you enhancing our rolling As

million September, used was of more parties guest the visiting of had XX% downloads and our than by As app X.X parks.

We are and of at app and park the it's revenue restaurants. XX% XX% or in target our on restaurants capturing been certain it's half and up now ordering is Mobile expanded to operating for has products about XX, to of more. then additional

We continue through order. made the food average see sale compared point to transaction and for a beverage value of app purchases to increases in

and business in relative attendance our our efficiency hope experience, revenue park and drive regional resiliency this the about particular, our performance. moving the and to drive and We understand update ability nature and financial overall better in in cost. everyone before the value cost mobile decreases park our We potential, the shell efforts, reduction portfolio, our guest increases to our potential of her are and app improve app on of and excited helps attractive and theme the its of the industry

me Let a comment on greater in few items detail. more

continues First, strong. let balance to sheet, to be which our me speak

investments, and total cash. to net invest sheet to thoughtfully and XXX liquidity us business, our million including flexibility return September, This to we approximately $XXX make ratio balance million LTM total our have strong grow times to Our shareholders. opportunistic of of leverage X.XX is almost in available XXXX capital gives and continue

build our Second, we with our continue plans to to park compliment hotels offerings. make progress to

to sharing design future more possible identified planning dedicated have and leader forward this experience specifics drive We look have sites, We continued and effort. efforts, in to hired quarters. our a help

completion our dedicated World expected it include construction Abu partner Sea has and This will generation open announced theme, marine XXXX in Abu research, is UAS Dhabi. next in park XX% marine the Park Third, rescue, and the center. return to first rehabilitation life reached Dhabi of

related opportunities discussions other to international progress expect quarters. to to coming continue share more We have in to and

October, August, into of total approximately repurchased continue total to at of from million. XX% stock of Finally, fourth total approximately million the $XX.X during shares XXXX $X.X and stock common or as repurchase common shares of date through quarter at the million approximately shares repurchased quarter we year to cost October, we $XXX.X $XXX.X a a million cost aggressively through shares have third XXXX of outstanding we approximately

XX guests million report report which and us we million is a we we $XX XX over in achievements basis revenue and trailing I million the go faced XXX.X to well that, of on to With have to on profitability. EBITDA our strong the prospects our clear believe was share increased extremely markets results challenging below would record attendance our guests, $XXX of detail. discuss and million net regards to to basis have of which balance XXXX. income still our These attendance to of this like achieved adjusted trailing historical re year. we achieved record a with efforts XXXX month extraordinary are environment to proud a XX more offered In red would We turn month teams record and company in of a high attractive repurchases. an continue forward the in below it growth despite value Michelle our position, financial reflect belief Overall, in operate financial this for parks over our I and like position sheet over

Michelle Adams

Thank morning you, good and Marc, everyone.

continue international part operations attendance shown related for global the pre-COVID compared periods decline mentioned, both as XXXX of to be in and the both third and levels. As impacted of by in as in by XXXX the results pandemic Marc group quarter COVID-XX our to

months quarter our financial XXXX, was today provide in had and will commentary our our My on our XXXX the results by limited also part impacts and modified pandemic limitations charts earnings focused so capacity XXXX park to third in however, of temporary of date year results, some key impacted form first versus to and results on release will or XX-Q. our due the comparison The also a to do both XXXX of we our be in XXXX compared closures. nine operations

an an X.X% decline the guests or X.X% and increase weather revenue capita XX in the in was company's quarter During generated Florida record to prior was estimate for adverse the severe from in attendance an on at to more parks of by COVID-XX an revenue of unfavorably to international the the compared from hurricane million, Ian days. to $XX year, increase increase travel third of quarter. increase restrictions impacts related adverse demand a is in XXXX, international compared of of impacted total primarily We September, to Hurricane contributed The during Virginia a approximately X.X%. XX,XXX which benefited when weather largely per when by in including impacted during in we increase quarter million and combined revenue the which of operating of led Attendance XXXX. third Attendance total including $XXX.X due quarter, guests closures

improving, lingering compared to said, while Marc pre-COVID effects XX% to third down was quarter and to quarter, the quarter in same the we Still of still related to visitation. As was pandemic group XXXX XXXX. international yet. same while compared international the XX% continue Back group visitation levels the experience down in visitation with in not

cost realized capita $XX.XX improved a to to third product to by when and capita of of and admissions to strategic in increase in due to increased prior both from $XX.XX impact in quarter the or per-capita third product pricing with compared were of third non-cash factors per In admissions and per including and factors and along also in XXXX when structural and strategies and capita the XXXX. is pressures capita associated higher a costs compensation pricing XX.X% expenses XXXX and quarter capita third per Our and increase part a in spending a as by combination closures. third expenses equity attractions compared initiatives, by X.X resulting for in in improvements realization X.X% improved quarter of high expenses higher XXXX. quarter XXXX. to third or in and XX.X% These Admissions increased revenue million the new initiatives of year. part prices quarter our expense million non-recurring from compared to the to liabilities the record quarter to in our of admission the for quality XXXX. the per contractual the COVID-XX Operating to by venues park due our or other spending and was total third XXXX offerings, of events, the park to in resulting when or compared efforts of increase product quarter to increased compared products The cost by were in pricing driven temporary of and Operating expenses operating This impacted XX.X% spending. the savings expanded of per mix, pricing of offset part, primarily for compared quarter XX.X% capita decrease the were year resulting enhanced increase revenue the approximately of per inflationary continue quarter. $XX.XX, percent third drive XXXX. $XX.XX quarter prior legal accruals of $XX.X partially with The the primarily operating as was compared in new to in an expanded legal due

prior hours early levels. from shown optimal year, to third as improved the higher in our has we staffing staffing still quarter compared at not While in year labor by are the

million revenue initiatives. partially costs percent third EBITDA when We the of XXXX factors we expense to compensation was net the generated X.X for XXXX quarter record the quarter cost prior of offset in non-cash million compared third costs the roles moderate million The to various compared adjusted adjusted million a XXX of X.X a an XXXX, million times capture the our driven and to the other third general third were to driven among the coming fully increase during party expenses. are per and of to primarily XX.X% quarter of XXXX, to of quarter than things in XX of increase ability of These to moderately quarter quarter staffing which If EBITDA by when quarter, compared of labor and XXX.X base park hours the XXXX. the third in in to selling and XXXX. compared impacted compared savings from Labor income third third income consulting were $XXX.X third we of as costs in and attendance administrative quarters. driven X.X% third year and of expenses parks revenue We prior million marketing revenue. XX quarter and inflation decreases administrative was believe the temporary for to unusually selling. suffer was hourly that our shortages to compared for third improvement the primarily equity we due compared and our the when General by third million wage costs increased expect quarter total for continue The by of across increased primarily record decrease various of impact the decrease quarter or XXXX. of net in only year approximately that XXXX rate in to in capita generated quarter to higher X% high the at in efficiency quarter

to first of $X.X $XXX.X of of an in million results the $XX.X attendance the Looking XX.X%. guests, adjusted months million for Total our a $X.XX million increase was net a for XXX.X an guests or and record, or income improvement increase period XXXX at $XX.X at XX.X%. $XX or XXX.X was of million XXXX, million improvement million EBITDA revenue was XX.X% record record nine was and billion, a total compared million

the to the September turning to when impact revenue Deferred extensions the current XXXX. the increase balance end COVID-XX XXXX. of quarter end product our of of included XX.X% our Now September, some onetime related and October, increase of deferred $XXX.X to XXXX, and compared sheet, items X.X% was approximately balance of at of third revenue as which compared million

compared to and of the XX% the a Our healthy demand for October of pass indicator October base level remainder consumer was for parks record year. of at very approximately our up XXXX, a

our to our our year. to XX% continuing we compared are premium base compared value to end, higher increases a also higher prior benefits realize year still products. prices in of To We seeing continue to approximately on prior our passes up of recognize pass price the products the pass pass with holders mix past are and as that tiered meaningful

mentioned, we as a balance have As Marc XX, very position XXXX. strong sheet September of

$XXX.X available facility, flow million, sheet, not $XXX.X and the was stock Cash shares third approximately common million we through outstanding total including on at of cost approximately million XXXX August, spent and XXX.X projects. from repurchased a October, of XXXX available revolving operations cash $XX.X for was on million million from was of cash $XX.X cost the of liquidity a date million our been XXXX, million drawn. total million credit expansion Our of approximately flow or total was repurchased on has balance quarter Year approximately have equivalence $XXX.X of XXXX. $XXX.X which through common stock quarter million on Free We third cash at on was million XXXX. approximately $XXX.X We to of a quarter core shares X.X of $XXX.X $XX.X the XX% for of total XXXX. and third CapEx and approximately shares in million. our XX.X CapEx which of October, million ROI approximately

We $XXX CapEx in spend expect XX. approximately for to to million $XXX X XX to $XXX million

expected back time our invest evaluating projects. high have months over the into opportunities several flow last analyzing ROI our spent and in We considerable business substantial cash to

you, meaningfully all next to you XXXX, from While of and our we our already can plans parks announcements, offering strategy will something still with we continue finalizing invest our the capital share know across as we year. is of for our are of compelling new that in midst

have growth highly identified ROI that execute also on and to our Beyond attractive XXXX. attractions, a we in of cadence expect projects bride of and list we robust typical

XXXX, and invest we'll In million in eliminate to at experience in improve, retail new or shareholder outlets over create our and discussion. to we beverage details and invest next and strategies also technology venues, cost. and and inorganic XXX plans We or food more spend will value. growth plan reduce share guest further improve We'll the park least quarterly We in the in to drive will infrastructure aggregate. animal habitats, and enhance, and

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

Marc Swanson

Michelle, closing history. have XXX aid open third your we call of Thank animals the I need. the Before in questions, Over came you, we to our to comments. the In XXXX, quarter some of

for proud dolphins, operate dedication efforts. all We have animals and hard including do their sharks, sea they rescue sea all thank to these them this parks birds, and important team's environment. continued to I'm over nose, the of lions, work in bottle, our and helped I turtles, manatees, want current that XX,XXX ambassadors more. to really seals, our

our We about as of Christmas remainder holiday events. into excited post-popular head XXXX the we are

mentioned, parks. the start will As over coming weeks, Christmas I our our events in

excited XXXX. really about also are for our plans We

our we we to made over take to past progress While both continue long-term are believe meaningful of opportunities, in and EBITDA. clear the additional have advantage drive year, revenue execution, good growth significant growth and continue there to improve adjusted opportunities

We in confidence deliver to and lead have that stakeholders. our results our operating we continue high meaningfully improved financial ability significantly increased for to value strategy to and expect in will

questions. your take let's Now,

Operator

[Operator Cusick instructions] from go Please First ahead. Chase. with question comes JPMorgan Philip

Philip Cusick

cost Hi the, is comes a guys. up growth sort XXXX wanted that on but of do into up core is you or core first very Thank costs cutting that guess you the efforts, nine. I inflation commentary. is and of -- follow numbers understand also to with how think the, CapEx why number $XX I could or the And moderate. that million the $XXX expect that as $XXX triple, Do Thanks number to year, that sort the million stable start the well? double the next you then on really slide million I'll think didn't to much. you.

Marc Swanson

the look so Phil, on CapEx. Yeah. answer Hey, your I Marc. it's question, can

in things identified. that about core heard, Shell the, remarks, beyond prepared I the think be talk efforts, of you we've kind heard her you the

of attractions laid that in additional our venues some refresh So can in kind invest new to mentioned. I we're mention coasters all the like undertaking that new then some other park out parks, of new, to every effort we new goal habitats, mentioned venues, year, especially parks. our that rides and And a this areas and her at number of our the, we're refresh animal in improved But heard retail as I those something every to look she is of, impact things. of you or bringing

So so than we've I in more than, normally in, maybe the million our bit ability spend continue little in it's excited to we're about quoted yeah, remarks, a the I, had I past. I and be business. free to, those a expect the, to really ability things, that'll think But, her of in we in our function invest think invest in the cash prepared flow to, and that $XXX to

On the you about your what is tell cost. inflation efforts, question I your, would

hard a those have we well, provided on will work with list a number a and efforts with our management we around forward on costs, to and there's there tremendous the, of efforts. cost We refine our things cost that focus continuing do to as containment, and going continue

Philip Cusick

like some impact the time? you the imagine have and surveying gas as the most moved up sounds prices of there on look subject, as How resistant follow different peers. bit recession inflation you drive it months on sort again. of more impact your I than around customers over six can business over expect seen, resistant at last gas your of about a terms have people of in I If Thanks, little prices your or thanks because do you that you a what think of

Marc Swanson

Yeah, thanks, Phil.

growth what the I the would our what is at consumer and at I is you would do what look look I, parks. I tell spending what So in

a that's indicator offerings investments we've and people that's pretty events coming the doing, to high they're out in a our the, even made the think a that parks, the testament we I that we're are our environment in spending inflationary parks. good money have. And in

And so even coming people in I our still are these quarters and seen spending ability inflationary last obviously out in good where impacts, about parks. we've feel our couple I, in these,

Operator

Okay.

comes Hardiman with from Please Citi. James Our ahead. next question

James Hardiman

Hi, good morning.

ultimately from commentary, it's of , like sounds your heard rate to was as quarter sort you the of run October the sustainable And last on but uptick maybe week. for just fourth what We similar question, going trend. of October guess there really last one similar, versus of an strong was pretty like well. peers open-ended speak Maybe October I strong. the that So October third see sounds quarter? is remainder kind

Marc Swanson

Yeah, Thanks, James.

I So continued a to we those. is and October is I be think around you can to Halloween saw month obviously tell started good what popular, events, which our response the is good

noted revenue in was year. about was, noted to XX% our last my you I As in as and up remarks prepared

Christmas. our this parks a some then and parks Hurricane rest was the and, in if later been of We'll think Halloween's So be of strong. well. basis. the continue the like run popular the had our be as this this, especially had, far the Halloween, October weekend, we towards to as would into, end at I we starting quarter, that in impact month in the tell bit obviously go on events, of as of What I bleed you events that little into some at, QX of run Christmas Ian, what weight, the rate, and did a about how do think But forward on we and I that

traditionally popular have those people with So, events well. been as

be exact same and the don't the come I as do compelling think visit if I know run So those rate October, park. it'll reasons but are to

James Hardiman

think building you some to right? and takes this I certainly And that maybe in some on ask, looking answer you're those confidence of for color then the of confidence ultimately next of each how out EBITDA your and numbers, know But but to any year as puts not helpful. about figured want Obviously each per right, of level XXXX, attendance of give year, next those we us items? one there's I'm growth those margin we grow will look going level don't one, blocks, of as That's to but caps guidance. to much I I'd you're, could

Marc Swanson

Sure.

one So, what are, there's our in like look, you them rides can are and attractions mentioned and can attendance. tell that business, of the parks, so is, to We're time a you apart our things in and parks. coming the on all things we and, the at investing that I there's kind we're pillars new had grow confident ability to that take

new We we're spending CapEx our that, also as around habitats parks. in well. have the exciting improved habitats And and is and and things that refreshes additional like and, that

we parks. drive generally people that new So things to know

we've hopefully pricing, international that'll but, have well. recovery us. We don't when that'll, further back, to mentioned continue consumer we're parks. We're, still in levels, a, to our spending XXXX will we see when On know a as attendance for strong it that back obviously as I tailwind occur, does, but the not a of be

It's we to parks, we we've a me I things value think one what that of about a we our about offer. of us to opportunities, confidence good options. We, slide some to the and our it, other talked grow value I that and entertainment and, and probably very that maybe come posted relative gives parks gives to can done around think I to good value pricing. obviously to continue showcase coming

our that parks people zoological that specifically I highlight if world amazing know collection, wanting our that to class over we things that think and another to, to and will think will come you experiences perhaps elsewhere. And showcase get some our parks as our are and I you things, that offer we We continue visit. just with wanting matter, and in cannot as, reason experience experiences also more of to more buying park,

to, that. hopefully will, again, from benefit rolling how system. things of to market you if to, in the we're in allow to that. our But how CRM people will like very that to and better utilize also kind I learnings continued and out, that that We're, We better early have us think learning

of in, lot just mentioned. people to all in, park think the getting confidence come in, I for to reasons So our there's a I

I'll expansion, the is, On tell cost side, been good strong since done some for we've XXXX. at a we've led what you had cost We've industry our really XXXX, have since very the as really job expanding margin in a time. margin

better operating have job. in got a could think, we job we're, mentioned, and working teams better to we and It's to as Now the And, on in we're think mobilized, out that we're, think really mobilize again that. this these and And to nonetheless, and quarters. better initiatives with of we're doing we I reality a put environment a these we, our new kind challenging accept here resources we, situated better, on. a we our I of we're in of different the have an around fairness, better point that's labor do the But inflationary environment job to done headwinds. to and I better a, And reality. couple last where address and, I slide in we things the and that getting new like we're some have of some

and we So, some the gives about costs think you them. hopefully context and tenants on how both that

James Hardiman

It sounds all mouth, your does it, words want year. put four but sounds like like, those in it should I you up don't could and think to of be next

Marc Swanson

would continue grow that continue going obviously. be the to expectation our to Yeah, to business forward,

our So

Operator

go ahead. Steve Next with question comes Stifel. from Please Wieczynski

Steve Wieczynski

morning. good guys, you Yeah,

of out kind of these so laid quarter. cost of keep to you kind costs, have called So the is to have, guys the the second Mark, over look, side improved going goals, and actually last want here with want the, quarter equation, and this they've the

with Marc, environment. today that, that, margins and let's a running what actually guess, that, margins a but you could think going understand, you're And it normalized I So trying to call us you're like in where help I potential can look, forties to just understand, not that could give go about number, low time? more over range I me look get

Marc Swanson

Yeah. Thanks Steve.

growing So approach think where but guide that translates ourselves you, grow little per may a manage we've I position year each to to, that. if achieve if to think So, about be that's bit business able execute a pace. our, each good I point, the year. about reason caps not last achieved on how that three is to cost and higher a margins a we attendance I we caps And years not so. I'm at to to think we, we of and more well that obviously continue going per we, dollars again, if, And with a we're to attendance, we way then think team The couldn't there's our outsized efficient then where if put And if the cost adjusted the it year look, them growth get I have I leads growing do that in to thinks we bit EBITDA, like being back in to simplistic. our, and an and think good obviously, grow way it's this little our fairly that the you those things the can We we grow, take that question. way business, growing

Steve Wieczynski

that metric you. attendance Got X, there out presentation, question XX% your And is would than be in running that higher XX%, potential which, today. it it's of attendance let's around Okay. call second is almost laid where of Slide kind then

wondering that just starting would got that by here be is of achievable the $XX potential parks? sacrifice if so, is the and million that in at that to in range, a up what you more have if metric into terms I actually mean to you point customer And experience just people tenants overcrowding

Marc Swanson

good of the a They're Good, we, part, One, attendance you gets that of to of you is Steve. of a Hey, you out what million, reason down. then which reasons, potential, shut is each we having handful part would days parks kind that what, of, question. to at XX of where, obviously look, number and showed rarely capacity. a just show we're Yeah. two to operate put the, one And you higher things. the I the we but where peak tell slide the our and the peak year couple park, Well, mentioned.

our to more into room certainly have people we So have parks. drive to,

something not as I'm to if certainly do are, New so it's certainly room, in we that worried will out that. working about and are And to Yorks, we you mentioned my running I a that and capacity have are we prepared attendance so loss recapture

Steve Wieczynski

Thanks it. you. guys. Got Appreciate Okay.

Operator

ahead. question with next Schwartz Please comes from Truist, go Our Michael

Michael Swartz

Maybe, XX and below your trending XX% Yeah, been experiencing. that we running your, attendance everyone. that, something I XX just may currency international like how laid then sense and headwinds us you, a you good international think think out you, given, Hey, of going visitors that should morning about be levels, how into but that's give maybe

Marc Swanson

what what quarters, been has is, you tell can now international in that I XXXX couple range. Michael, yeah, for has, I, last Hey versus down XX% Yeah. the

where when know of factors a that attendance don't there's -- lot international really to So impact a, we that want of more and that's more back, we'll know, until go basis, certainly a, much we does that, a for tailwind, but, you opportunities of that forward on know of to on a will but see. it see goes can where offset look come it but back. we'll, that more I we'll have to obviously obviously as come as become

Michael Swartz

follow just whether you the October apples and on in, trying to I'm up operating Okay, in periods? much those year understand of mean, operating number are the were then how I there days thanks. relative just to XXXX figures gave, And question, how, difference versus and apples, revenue XXXX. this those days

Marc Swanson

about out, and from this Sesame added that the would a But pickup think you XXXX, the added, we've if Halloween events, Place tell San I revenue stripping yeah, then is year. park we slight can still you events, I feel is there we've be versus new versus increase similar XX, will. we in good the Diego What that of more even ran

did not night-time in, a, back of it, in we stream bit brought a have also version little and in And So the Orlando we I Texas. in think better California.

total is, on total, helped certainly on continue and to what us. we'll focus And that. that So is driving focused revenue that's we're

The a to have so don't that a I of I I an just impact. that as with still negative had by said that that this well. other a, you, but already, was but I had a, hurricane share impact impacted remind would, early number October would I, thing you, had kind negative had exact

So achieved I impact, that guess we growth. with that we those even put numbers, revenue

Operator

Our question Deutsche Chris comes go next Please Bank. with from Woronka ahead.

Chris Woronka

are, everyone. Hey versus that know for million attendance, know -- are just to, delta that parks, of marketing I already that the know attendance, exclusively driving or talked going or you we good XXXX all to more that the that maybe more that don't yet about to side? prior pricing there? are Or, we I a, back solve I, a of on but, a we've it but morning and is or and are where $X don't there million $X more about action today get is lot is initiatives of

Marc Swanson

we refreshes about or, it. And XXXX peak. are versus very we've, to think One been that I also parks, component think ways of attendance and I do versus helps and is beyond each of, is I their know think certainly XXXX, either we in our parks is, we've Chris, a And venues over, there's important new recapturing parks goal Yeah, at We're what things a also mentioned that our that's parks have we're that that, in I and, think And, marketing, you an the, kind in I about. mentioned. over, each think our in, again, of things you're in in to And visiting. something and continue new of that, asking how, of year. investing, the component stated talked and couple we, the us like that when shell it. going that, people that lost how invest that's about there's, we've think have as we'll to our clear to in, or

to will guests. we of We efficient general, that to to will. messaging harness in things new have marketing you and communicate our and and we CRM have opportunities be our also still system the relatively to think I our more that, how power is promote if just the parks us continue in

of total drive us that things a So package to loss are to hopefully that, going sorts of attendance. of that it's kind recapturing all

Chris Woronka

that slide Okay. aren't to to is there on offsets necessarily slide? Thanks costs. Marc. also that to going any around And And are And XX million? nine, back the that XX follow is the on specific timing there any up

Marc Swanson

benefit and now, Yeah, here, on working should us is, next what on would so, we're those right the you we on things into things are are quarters impact So I as we now we working year. endeavor that right these can to going would right? go these things forward tell be

lot offsets ability happens be questions I the going of in I environment to and an still inflation. what answer so that to by think what, look, inflationary with a determined we're think

up. but that example, see in still are prices, Florida, very are, We see energy for moderating we much we our other know, going that up example, have are that moderating here to numbers. and know go We certain we things that in is things freight for going

to chart we're depend will on execute inflationary that on identify on going lot kind a things on offsets. those. But our and, listed there's the of we've work environment and of think and, that the if to do I more and So macro part

Operator

next Crockett with Rosenblatt ahead. go comes from Our Barton Please Securities. question

Barton Crockett

how XX% aren't. share seeing numbers much there the could difference harbinger international, from group was it. to other I it XX% XX in decline of you seem is because the to what last I be could curious kind you there weather. there guess we to One that flagged understand the just I two to sustained maybe would XXXX kind for curious of you up guys be and wouldn't series that. was down the think there for break pandemic or I trend, if XX% is between attendance in apparently two that a I included said attendance then, of were, Disney were of XX,XXX the things talk the reported whether was you Orlando. about. but might no why wondering of I pre if wondering and kind Disney how international some between of a up reason would is point whether to, to attendance, Which night of you that is was guys of just seem items of be X% was versus Hi. back their the norm adjusted you delta beyond the And elements in kind think nine much but was nearly down so

You guys will see.

Marc Swanson

Yeah. take I Hey, Marc. question. that Barton, it's can

versus the nine then, obviously little look normalize the, then So more. bit of the, of the the when of called out. don't I date than there out a group there a what and impact attendance, year was more and kind on specific we I get that to XX, more versus you the couple comparison we'll impacts out, called get of international already 'XX, to calendar know mean, the months we've first shift tends in 'XX we, calendar There's, to

So that, then the weather well. that you as have may obviously help you. And impact

here that, speak on promote doing. to, we we know that tell I So to on things product to parks offer. can look the can that, the international in don't what Disney's and that continue that what what, and to I attendance can will I offer our our they are, you are the Orlando than differentiated different

on to continue we'll historically been has not international for that. work we'll, has So attendance And been roughly of us, total or attendance. XX% the company's

capture back, you hopefully drive attendances So be it goal comes fully try is and do that. to to to more but our might when more be to will, we'll if there, continue more there's able international

Operator

Golding ahead. Right go comes from Please Macquarie. Paul with next question

Paul Golding

timing. start you, see and should lead to typically come Thanks see inform it, of so with line sort start international those longer we purchases bookings maybe do give around time I do what So time on on on? of you quarter. pass color along season the can but help to call a, you wanted with the in category that? respect in might in any lines, come when a ask or any this When look group or is sort these they back trend when like, to could congrats around to around is there different lead much

Marc Swanson

Yeah one some we, and we are other different in we maybe have that the challenges little the, bit don't things have that. one a our of of than parks of other, hotels than, Orlando like is look,

general is I we, tend So if will. I'm our view a into here. little And the speaking generally you limited in more future see, think to

in Disney to whether of Universal. we think again, see closer the parks, be it tend visit I to their than book or destination some maybe people

on on, to numbers specific any have though don't I share with that. you So

Okay.

Paul Golding

$XX a variable there could moderate of shell's any out if might costs to give the then or right. that with to the bucket? on of etcetera, All million on side what fixed it's $XX on expected you respect Thanks. to numerical, And numbers is split that inflation just Even cost million QX call versus directional? related be of but not

Michelle Adams

Thanks Sure, question, one. I take that the Paul. can for

pressures I to inflationary the we those wage $XX related cost, labor to expenses So $XX 'XX. costs 'XX of we, of on approximately And million received lot had million were had and to of above referenced the normal inflation. compared in QX a

transportation and also utilities, of We our then also in and food and beverage within insurance, increases retail some and energy items. commodities saw the in shipping, rates

moderation we're as pieces freight to and starting increases mentioned, to had in we So those from shipping, in see are some continuing Marc utilities. see also but

some some like kick there's solar parks. utilities increases address we from that ready to that, related we investments our specifically specifically, we mentioned, have in off but project do you As to are in one Florida getting are, our of

those are we, quarters. overall do we moderating So we that are but that, next the think into continue go into to moderating as and we'll they the, see

Operator

Credit Ben Our Please ahead. next with question Suisse. Chaiken comes go from

Ben Chaiken

It's one revenue then is quick management follow Can you going? you of hotel the in Dhabi, Hey, you 'XX. large frame to this more how's it us bit, try, black opening Are Both. up a attraction Let's a Abu And contract? terms help not I this box, would in but of of so one. like market. guys size let's for little have been the project, a somewhat a In say, a different try tied up. profitability?

Marc Swanson

And could, can what our Yeah. excited in, a part kind the, and to it expected really showcases you open that some, be. be there think the will world And I of park of what in world. brings is the sea of it next a question. Hey, another will, Look, to generation could I some whole the brand that feedback Ben. on give we're XXXX. could,

in So it them. we call you is of will. licensing would arrangement, share, And, have, like, would a capital as and you I'll a what if light agreement mentioned, kind we with

in, I that quarters I look on that. future for think maybe it's think a to bit get guide updates in coming you early we can you little the to anything, until open, but it, too

Ben Chaiken

to you. moving period? get, I think more time it. is forward the guess than Just the you're generating to continue And a then I for Got the cash appreciate buyback, plan dislocation? a buyback on pre perceived I flow

Marc Swanson

do our board of cash What would what then I work best Yeah. and year, the we we'll on the like our tell throughout is, use shareholders. for advisors with you is

I work so other best we is to And to return what our but than guide anything, deliver believe shareholders. that, we to will can't the highest and you

Operator

our over remarks. conference question answer concludes like to any This and session. would I Marc turn the to Swanson back closing for

Marc Swanson

rest the us Thank SeaWorld Shell Entertainment, of this you Dave. management at of behalf the joining morning. to for you, want On team thank and

As forward we heard we look confident drive quarter. and for strategy, operating and you will you stakeholders. value our are long term Thank which term in speaking you we long believe and improved to today, next with results financial

Operator

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

You may now disconnect.

United Parks & Resorts (PRKS) 9 Nov 222022 Q3 Earnings call transcript