Earning Date, Transcript Summary & Report

Record Attendance and Spending: We delivered near record attendance and record in-park per capita spending in Q4 2024, despite poor weather conditions.

Record Revenue Achievement: For the full year, we achieved near record revenue and record total revenue per capita, demonstrating strong consumer spending.

Consistent Revenue Growth: We have grown in-park per capita for 18 of the last 19 quarters and total revenue per capita for seven straight years, indicating effective revenue strategies.

Share Repurchase Commitment: We repurchased 9.4 million shares, approximately 15% of total shares outstanding, reflecting our commitment to returning cash to shareholders and confidence in our stock's value.

Future Growth Expectations: We expect meaningful growth in 2025, with strong booking trends and a lineup of new attractions and events planned.

Industry Accolades Received: In 2024, we received several industry accolades, including SeaWorld Orlando being voted the #3 Best Amusement Park by USA Today readers.

Strong Balance Sheet Position: Our balance sheet remains strong with a net total leverage ratio of 2.94x and approximately $798.4 million in total available liquidity, providing flexibility for growth investments.

Cost Efficiency Initiatives: We have identified $75 million in cost efficiency initiatives, with expected savings of $50 million in 2025, demonstrating our focus on cost management.

EBITDA Growth Strategy: We see a clear path to $1 billion in adjusted EBITDA with multiple growth levers, including strategic initiatives and returning to historical attendance levels.

Attendance Decline Analysis: Attendance decreased by approximately 79,000 guests or 1.6% in Q4 2024 compared to the prior year, primarily due to adverse weather conditions, particularly Hurricane Milton.

Q4 Revenue Decline: Total revenue for Q4 2024 was $384.4 million, a decrease of $4.6 million or 1.2% compared to Q4 2023, attributed to lower attendance despite an increase in total revenue per capita.

Net Income Decline: Net income for Q4 2024 was $27.9 million, down from $40.1 million in Q4 2023, indicating a significant decline in profitability.

Q4 2024 Adjusted EBITDA Decline: Adjusted EBITDA for Q4 2024 was $144.5 million, a decrease of $6 million compared to the previous year, reflecting lower revenues and increased expenses.

Revenue and Attendance Decline: For the fiscal year 2024, total revenue was $1.73 billion, a decrease of $1.3 million or 0.1%, with total attendance down by approximately 59,000 guests or 0.3%.

Net Income Decline: Net income for the fiscal year 2024 was $227.5 million, a decrease of $6.7 million from the previous year, indicating a downward trend in profitability.

Adjusted EBITDA Decline: Adjusted EBITDA for the fiscal year 2024 was $700.2 million, a decrease of $13.3 million or 1.9% compared to 2023, highlighting ongoing challenges in maintaining profitability.

Increased SG&A Expenses: Selling, general and administrative expenses increased by $4.8 million or 10.6% in Q4 2024 compared to the prior year, primarily due to increased marketing initiatives, which may indicate rising operational costs.

Operational Disruptions and Learning: The company faced operational disruptions in 2023 due to taking on more projects than usual, leading to delays and headwinds in performance, which they acknowledged as a learning experience.

Market Undervaluation Concerns: Despite a strong balance sheet, the company expressed frustration over being undervalued in the market, trading at lower multiples compared to peers, which may impact investor confidence.