United Parks & Resorts(PRKS) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2024 was $384.4 million, a decrease of$4.6 million or 1.2% from Q4 2023[10] - Net income for Q4 2024 was $27.9 million, a decrease of$12.2 million or 30.3% from Q4 2023[10] - Adjusted EBITDA for Q4 2024 was $144.5 million, a decrease of$6.0 million or 4.0% from Q4 2023[10] - For fiscal 2024, total revenue was $1,725.3 million, a decrease of$1.3 million or 0.1% from fiscal 2023[16] - Fiscal 2024 net income was $227.5 million, a decrease of$6.7 million or 2.9% from fiscal 2023[16] - Net revenues for Q4 2024 were $212.8 million, a decrease of 7.67$220.5 million in Q4 2023[38] - Total revenues for the year ended December 31, 2024, were $939.6 million, down 1.5$954.0 million in 2023[38] - Operating income for Q4 2024 was $75.75 million, reflecting a decline of 15.1$89.27 million in Q4 2023[38] - Basic earnings per share for Q4 2024 were $0.51, down from$0.63 in Q4 2023[38] - Total costs and expenses for the year ended December 31, 2024, were $1,262.0 million, a slight decrease of 0.4$1,266.0 million in 2023[38] Attendance and Guest Metrics - Attendance in Q4 2024 was 4.9 million guests, a decrease of approximately 79,000 guests or 1.6% compared to Q4 2023[10] - Total revenue per capita for fiscal 2024 increased by 0.2% to a record $80.07 compared to fiscal 2023[18] - Attendance for the three months ended December 31, 2024, was 4,881, a decline of 1.6$36.46, an increase of 2.0% from $35.75 in 2023[44] Cash Flow and Capital Expenditures - Free Cash Flow is highlighted as a key liquidity measure, although it excludes mandatory debt service requirements, making it not fully representative of discretionary cash flow[30] - Free cash flow for the year ended December 31, 2024, was$140,500, an increase of 140.6% compared to $58,300 in 2023[43] - Capital expenditures for the year ended December 31, 2024, totaled$248,430, a decrease of 18.5% from $304,836 in 2023[43] - Capital expenditures during the period reflect investments in park rides, attractions, maintenance activities, and park expansion projects[58] Debt and Financial Management - The company repurchased 9.4 million shares of common stock in fiscal 2024 at a total cost of approximately$482.9 million, representing about 15% of total shares outstanding[19] - The company refinanced approximately $1.5 billion in Term Loans in December 2024, resulting in approximately$8 million in annual interest savings[20] - Total long-term debt, including current maturities, increased to $2,263,442 as of December 31, 2024, from$2,125,500 in 2023[41] - Interest expense increased by 37.7% in Q4 2024, totaling $49.91 million compared to$36.25 million in Q4 2023[38] - The company reported a loss on early extinguishment of debt of $1.487 million in Q4 2024, with no comparable figure in Q4 2023[38] Management Insights and Expectations - Management emphasizes the importance of Adjusted EBITDA as it reflects the company's underlying operating performance, which is crucial for investors and analysts[28] - Forward-looking statements indicate potential risks affecting attendance and guest spending, including economic uncertainties and labor shortages[36] - The company acknowledges the impact of external factors such as inflation, supply chain issues, and geopolitical events on its operations and financial performance[36] - Management's expectations and projections are subject to uncertainties, and actual results may vary significantly from these forward-looking statements[36] - The Company expects to realize estimated savings over the following 24-month period related to restructurings and cost savings initiatives[55] Operational Highlights - United Parks & Resorts Inc. operates 13 parks across the U.S. and Abu Dhabi, offering diverse experiences and maintaining a large zoological collection[32] - The company has a legacy of rescuing over 41,000 animals, showcasing its commitment to animal welfare and conservation efforts[32] Performance Metrics - Key performance metrics include total revenue per capita, admission per capita, and in-park per capita spending, which help assess park operations on a per attendee basis[31] - Total revenues are calculated as total revenues divided by attendance, providing insights into revenue generation efficiency[58] - Admissions revenue is calculated as admissions revenue divided by attendance, indicating the performance of ticket sales[58] - Food, merchandise, and other revenue are calculated as revenue divided by attendance, highlighting additional revenue streams[58] - Adjusted EBITDA is defined as net income (loss) before income tax expense, interest expense, depreciation, and amortization, adjusted for certain non-cash items[54] Compliance and Reporting - Covenant Adjusted EBITDA is significant for compliance with financial covenants in the company's credit agreements, providing transparency to investors[29] - The Company’s Debt Agreements allow for the calculation of certain covenants based on Covenant Adjusted EBITDA, which is defined as Adjusted EBITDA for the last twelve-month period further adjusted for net annualized estimated savings related to specified actions[55] - Covenant Adjusted EBITDA includes adjustments for recruiting and retention expenses, public company compliance costs, and litigation costs as permitted by the Debt Agreements[56] - The company provides contact information for investor relations and media inquiries, ensuring transparency and accessibility for stakeholders[37]