On February 28, 2024, United Parks & Resorts Inc (PRKS, Financial), formerly known as SeaWorld Entertainment Inc, released its 8-K filing, detailing its financial performance for the fourth quarter and fiscal year 2023. The company, which operates a network of theme parks and entertainment facilities across the United States, including SeaWorld, Busch Gardens, and Discovery Cove, faced a challenging year with slight decreases in revenue and net income despite achieving record attendance in the fourth quarter.
Financial Performance Overview
United Parks & Resorts Inc reported a marginal decrease in total revenue for fiscal 2023, amounting to $1,726.6 million, a 0.3% dip from the previous year. Net income for the year was significantly impacted, showing a 19.6% decrease to $234.2 million. Adjusted EBITDA also experienced a decline, falling by 2.0% to $713.5 million.
The fourth quarter of 2023 saw a record attendance of 5.0 million guests, an increase from the same quarter in the previous year. However, total revenue per capita decreased by 0.9% to $78.42, with admission per capita down by 2.6%. In contrast, in-park per capita spending increased by 1.5% to a record $33.96, indicating a robust consumer spending within the parks.
Challenges and Strategic Highlights
CEO Marc Swanson highlighted the adverse weather impacts and unfavorable calendar shifts that affected attendance, particularly in Florida during peak visitation periods. Despite these challenges, the company managed to grow total revenue per capita for the sixth consecutive year. Swanson also noted the successful opening of the first SeaWorld park outside the United States in Abu Dhabi, which is performing ahead of expectations.
Looking ahead, Swanson expressed confidence in the company's ability to drive attendance and manage costs effectively. The planned celebrations for SeaWorld Parks' 60th anniversary and the introduction of new rides and attractions are expected to bolster performance in 2024.
Financial Health and Shareholder Value
The company's balance sheet shows a cash and cash equivalents balance of $246.9 million as of December 31, 2023. The Board of Directors has recommended a new $500 million share buyback authorization, subject to approval, signaling a commitment to enhancing shareholder value. Additionally, the company continued its animal rescue efforts, aiding hundreds of animals throughout the year.
United Parks & Resorts Inc's performance in fiscal 2023 reflects resilience in the face of external challenges. With strategic initiatives in place and a focus on improving the guest experience, the company is poised to navigate the complexities of the travel and leisure industry and enhance value for its stakeholders.
For detailed financial tables and further information, please refer to the full 8-K filing.
Investors and interested parties can access the conference call replay and additional details on the company's website at www.UnitedParksInvestors.com.
Explore the complete 8-K earnings release (here) from United Parks & Resorts Inc for further details.
