8-K: United Parks & Resorts Inc. Reports Slight Revenue Dip Despite Record In-Park Spending for Q4 and Fiscal Year 2024

United Parks & Resorts Inc. reported a slight decrease in revenue for both the fourth quarter and fiscal year 2024, despite record in-park per capita spending.

Summary

• United Parks & Resorts Inc. announced its financial results for the fourth quarter and fiscal year ended December 31, 2024.
• Attendance for Q4 2024 was 4.9 million guests, a decrease of approximately 79,000 guests compared to Q4 2023.
• Total revenue for Q4 2024 was $384.4 million, a decrease of $4.6 million or 1.2% from Q4 2023.
• Net income for Q4 2024 was $27.9 million, a decrease of $12.2 million from Q4 2023.
• Adjusted EBITDA for Q4 2024 was $144.5 million, a decrease of $6.0 million from Q4 2023.
• Total revenue per capita increased 0.4% to $78.75 in Q4 2024.
• Admission per capita decreased 1.9% to $43.61, while in-park per capita spending increased 3.5% to a record $35.14 in Q4 2024.
• For fiscal year 2024, attendance was 21.5 million guests, a decrease of approximately 59,000 guests or 0.3% from fiscal 2023.
• Total revenue for fiscal year 2024 was $1,725.3 million, a decrease of $1.3 million or 0.1% from fiscal 2023.
• Net income for fiscal year 2024 was $227.5 million, a decrease of $6.7 million or 2.9% from fiscal 2023.
• Adjusted EBITDA for fiscal year 2024 was $700.2 million, a decrease of $13.3 million or 1.9% from fiscal 2023.
• Total revenue per capita increased 0.2% to a record $80.07 for fiscal year 2024.
• Admission per capita decreased 1.2% to $43.61, while in-park per capita spending increased 2.0% to a record $36.46 for fiscal year 2024.
• The company refinanced its Term Loans in December 2024, resulting in approximately $8 million in annual interest savings.
• During fiscal 2024, the company repurchased 9.4 million shares of common stock at a total cost of approximately $482.9 million.
• The company estimates that unfavorable weather impacted attendance by approximately 167,000 guests in Q4 and 432,000 guests for the full year.
• The company expects meaningful growth and new records in revenue and Adjusted EBITDA in 2025, assuming no worse weather than in 2024.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While the company experienced some declines in key metrics, they are optimistic about 2025 and are focusing on growth initiatives. The record in-park spending is a positive sign.

Positives

• In-park per capita spending reached record levels in both Q4 and fiscal year 2024.
• The company successfully refinanced its Term Loans, resulting in $8 million in annual interest savings.
• A significant number of shares were repurchased, demonstrating a commitment to returning capital to shareholders.
• The company is a leader in animal rescue, aiding over 600 animals in need during the year.
• The company expects meaningful growth and new records in revenue and Adjusted EBITDA in 2025, assuming normal weather conditions.
• Total revenue per capita increased 0.4% to $78.75 in Q4 2024.
• Total revenue per capita increased 0.2% to a record $80.07 for fiscal year 2024.

Negatives

• Attendance decreased in both Q4 and fiscal year 2024.
• Total revenue decreased slightly in both Q4 and fiscal year 2024.
• Net income and Adjusted EBITDA decreased in both Q4 and fiscal year 2024.
• Unfavorable weather conditions significantly impacted attendance.

Risks

• Adverse weather conditions can significantly impact attendance and financial results.
• A decline in discretionary consumer spending could negatively affect revenue.
• The company faces competition in the theme park industry.
• Incidents or adverse publicity concerning the theme parks or zoological facilities could harm the company's reputation and attendance.
• The company's high fixed cost structure makes it vulnerable to fluctuations in attendance.
• The company's leverage and interest rate risk could impact financial performance.

Future Outlook

Assuming no worse weather than experienced in 2024, the company expects meaningful growth and new records in revenue and Adjusted EBITDA in 2025.

Management Comments

• We are pleased to report another quarter and fiscal year of strong financial results, said Marc Swanson, Chief Executive Officer of United Parks & Resorts, Inc.
• Our revenue strategies are working and continue to demonstrate our pricing power and the strength of consumer spending in our parks.
• We are very excited about the clear opportunity we have to drive meaningfully more attendance to our parks, grow total per capita spending, manage and reduce costs and realize significant additional value from our strategic growth initiatives.
• We have high confidence in our ability to continue to deliver operational and financial improvements that will lead to meaningful increases in shareholder value, continued Swanson.
• We are excited about our plans for 2025, including the meaningful investments we have made across our parks and business and an incredible line-up of new, one-of-a kind rides and attractions, popular events, improved in park venues and offerings across our parks.
• I want to thank our ambassadors for all their hard work and dedication as we start 2025, concluded Swanson.

Industry Context

The theme park industry is highly competitive, with companies like Disney and Universal also vying for consumer spending. United Parks & Resorts' focus on in-park spending and new attractions aligns with industry trends to enhance the guest experience and drive revenue.

Comparison to Industry Standards

• Disney's theme park revenue is significantly higher, but United Parks & Resorts is focusing on improving per capita spending, a key metric in the industry.
• Compared to Six Flags, United Parks & Resorts has a stronger focus on animal welfare and rescue efforts, differentiating its brand.
• Universal Studios also invests heavily in new attractions, similar to United Parks & Resorts' plans for 2025.

Stakeholder Impact

• Shareholders may be concerned about the decrease in revenue and net income, but the share repurchase program could provide some support.
• Employees can expect continued investment in the parks and new attractions.
• Customers can look forward to new rides and attractions in 2025.
• Suppliers may see some impact from the company's cost management efforts.
• Creditors should be reassured by the successful refinancing of the Term Loans.

Next Steps

• The company will continue to invest in new rides, attractions, and in-park venues.
• The company will focus on driving attendance and increasing per capita spending.
• The company will continue its animal rescue efforts.
• The company will monitor weather conditions and their impact on attendance.

Key Dates