NYSE$PRKS

United Parks & Resorts Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

SeaWorld Entertainment, Inc. experienced significant declines in attendance and revenue due to COVID-19 related park closures, resulting in a net loss.

SeaWorld Entertainment, Inc. reported a sharp decline in financial performance for Q2 2020 due to the COVID-19 pandemic, with park closures significantly impacting attendance and revenue. The company reported total revenues of $18.0 million, a net loss of $131.0 million, and an Adjusted EBITDA loss of $53.8 million. The company focused on cost reduction, cash flow management, and balance sheet fortification during the quarter. Nine of the company's twelve parks have reopened with limitations as of August 10, 2020.

  • Attendance was 0.3 million guests, a 95.8% decrease compared to Q2 2019.
  • Total revenue was $18.0 million, a 95.6% decrease compared to Q2 2019.
  • Net loss was $131.0 million, a significant decline compared to a net income of $52.7 million in Q2 2019.
  • As of June 30, 2020, cash and cash equivalents were approximately $376 million.

Headline financials

Total Revenue

$18M

Previous: $406M-95.6%
EPS (adj)

-$1.68

Previous: $0.64-362.5%
Attendance

272.0K

Previous: 6.5M-95.8%
Total Revenue per Capita

$66.27

Previous: $62.82+5.5%
Admission per Capita

$35.94

Previous: $35.25+2.0%
In-Park per Capita Spending

$30.33

Previous: $27.57+10.0%
Capital Expenditures

-$53.7M

Previous: -$113M+52.4%
Free Cash Flow

-$185M

Previous: -$60.1M-207.4%
Net Income

-$131M

Previous: $52.7M-348.9%
Operating Income

-$101M

Previous: $96.3M-205.2%
Gross Profit

-$42.2M

Previous: $204M-120.7%
Cash & Equivalents

$376M

Previous: $43.6M+761.6%
Total Assets

$2.58B

Previous: $2.3B+12.2%
Stock-Based Comp

$3.32M

Previous: $4.08M-18.7%

Revenue & EPS history

United Parks & Resorts · Revenue · Quarterly

$18M

Q2 2020-95.6%vs Q2 2019

Revenue by segment

United Parks & Resorts · $18M total across 2 segments · Q2 2020

  • Admissions
    $9.78M-95.7%
  • Food, merchandise & other
    $8.25M-95.4%

Forward guidance

The company did not provide specific financial guidance, but is encouraged by improving trends in reopened parks and growth in the pass base. The company has strengthened its balance sheet and liquidity position.

Tailwinds

  • Feedback from guests who have returned to the parks has been positive.
  • The company is generating positive cash flow from reopened parks at reduced attendance levels.
  • Improving trends are seen in parks as events and entertainment offerings are reintroduced.
  • There is growth in the pass base led by open parks since the end of May.
  • 2021 bookings at the Discovery Cove park are up significantly compared to 2020 bookings at the same time last year.

Headwinds

  • The future remains uncertain.
  • Nine of the Company’s twelve parks have reopened with capacity limitations, reduced hours of operation and / or limited operating days.
  • The Company’s second quarter financial results were significantly impacted by the global COVID-19 pandemic.
  • Attendance since the parks reopened in June has been impacted by capacity limitations due to COVID-19 social distancing guidelines, fewer operating days per week versus the prior year, limited marketing spend and a limited events line-up.
  • The Company does not currently plan to open its Aquatica waterpark near San Diego or its Water Country USA waterpark in Williamsburg this year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.3%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+3.7%

Avg return

30 days after

48%

27 / 56 earnings

Positive

+21.1%

Q2 2018

Best reaction

-36.1%

Q2 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.2%-8.0%+12.2%
Q4 2025+6.2%+1.5%-12.0%
Q3 2025-24.2%-25.7%-23.1%
Q1 2025+3.8%+4.3%-10.0%
Q4 2024-3.2%-7.0%-15.2%
Q3 2024-0.1%+0.0%+5.2%
Q2 2024+0.7%+1.2%+11.5%
Q1 2024+9.2%+9.5%+2.9%
Q4 2023+5.2%+9.8%+15.2%
Q3 2023-3.1%-0.5%+9.9%
Q2 2023-5.9%-5.3%-11.1%
Q1 2023+4.5%+1.5%+2.7%
Q4 2022+1.6%+4.1%-7.7%
Q3 2022-1.3%+0.3%-6.9%
Q2 2022+7.5%+7.8%+4.7%
Q1 2022-9.6%-16.3%-19.7%
Q4 2021+7.1%-1.4%+8.7%
Q3 2021-6.0%-7.7%-6.7%
Q2 2021+19.6%+16.0%+8.9%
Q1 2021+0.9%-0.5%+5.2%
Q4 2020+20.1%+17.0%+22.7%
Q3 2020+1.9%+16.5%+27.7%
Q2 2020+7.2%+12.4%+27.6%
Q1 2020-5.4%-17.2%+30.8%
Q4 2019-7.0%-11.1%-54.1%
Q3 2019+13.5%+14.0%+14.9%
Q2 2019+2.9%+12.9%-1.0%
Q1 2019+3.8%+4.1%+17.5%
Q4 2018+6.6%+7.7%+1.8%
Q3 2018-3.1%-5.9%+5.6%
Q2 2018+21.1%+18.3%+42.2%
Q1 2018+5.6%+7.8%+28.6%
Q4 2017-7.1%-6.9%-5.8%
Q3 2017+8.8%+8.6%+15.2%
Q2 2017-6.1%-6.2%-9.3%
Q1 2017+8.7%+4.9%-5.1%
Q4 2016+0.6%-3.1%-9.9%
Q3 2016+15.1%+19.3%+30.5%
Q2 2016-11.0%-12.5%-11.3%
Q1 2016-5.1%
Q4 2015-10.3%
Q3 2015-7.1%
Q2 2015+3.8%
Q1 2015-2.6%
Q4 2014-7.9%
Q3 2014-8.5%
Q2 2014-36.1%
Q1 2014-0.8%
Q4 2011-2.5%
Q4 2013+0.6%
Q3 2012-4.0%
Q3 2013-3.9%
Q2 2012-7.8%
Q2 2013-4.2%
Q1 2012+0.7%
Q1 2013-1.7%
Q4 2012

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