Workflow
United Parks & Resorts(PRKS) - 2024 Q4 - Earnings Call Transcript
PRKSUnited Parks & Resorts(PRKS)2025-02-26 20:10
Filings

Financial Data and Key Metrics Changes - In Q4 2024, total revenue was 384.4million,adecreasefromQ42023,primarilyduetoadecreaseinattendance,partiallyoffsetbyanincreaseintotalrevenuepercapita[66]−Attendancedecreasedbyapproximately79,000guestsor1.6384.4 million, a decrease from Q4 2023, primarily due to a decrease in attendance, partially offset by an increase in total revenue per capita [66] - Attendance decreased by approximately 79,000 guests or 1.6% compared to the prior year quarter, largely due to adverse weather conditions [67] - For the full year 2024, total revenue was 1.73 billion, a decrease of 1.3millionor0.11.3 million or 0.1%, with total attendance at 21.5 million guests, a decrease of approximately 59,000 guests or 0.3% [71] Business Line Data and Key Metrics Changes - Total revenue per capita increased by 0.4%, while admission per capita decreased by 1.9%, and in-park per capita spending increased by 3.5% [68] - The increase in in-park per capita spending was attributed to pricing initiatives compared to Q4 2023 [68] Market Data and Key Metrics Changes - The company reported a strong balance sheet with approximately 798.4 million in total available liquidity and a net total leverage ratio of 2.94 times as of December 31, 2024 [72][22] - The deferred revenue balance decreased by approximately 1.9% compared to December 2023, indicating a shift in customer payment preferences [76] Company Strategy and Development Direction - The company plans to invest approximately 225millioninCapExfor2025,with225 million in CapEx for 2025, with 175 million allocated for core CapEx and 50millionforexpansionandROIprojects[78]−Strategicinitiativesincludehoteldevelopment,realestatemonetization,andinternationalpartnerships,withexpectationsforsignificantrevenuegrowthfromtheseareas[36][38]Management′sCommentsonOperatingEnvironmentandFutureOutlook−ManagementexpressedconfidenceinachievingrecordrevenueandadjustedEBITDAin2025,assumingnormalweatherconditions[14]−ThecompanyanticipatesbenefitingfromincreasedvisitationtotheOrlandomarketduetotheopeningofUniversal′sEpicUniversePark[41]OtherImportantInformation−Thecompanyrepurchased9.4millionshares,approximately1550 million for expansion and ROI projects [78] - Strategic initiatives include hotel development, real estate monetization, and international partnerships, with expectations for significant revenue growth from these areas [36][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record revenue and adjusted EBITDA in 2025, assuming normal weather conditions [14] - The company anticipates benefiting from increased visitation to the Orlando market due to the opening of Universal's Epic Universe Park [41] Other Important Information - The company repurchased 9.4 million shares, approximately 15% of total shares outstanding, at a total cost of approximately 482.9 million in 2024 [75] - The company has a disciplined capital allocation strategy focusing on business investment, debt paydown, M&A, and returning capital to shareholders [24][27] Q&A Session Summary Question: How does the company view the impact of the new Epic Universe Park on attendance? - Management views the opening of Epic Universe as a positive opportunity, expecting it to increase overall visitation to the Orlando market, which could benefit their parks [87][90] Question: What are the expectations for 2025 EBITDA compared to Wall Street consensus? - Management believes Wall Street consensus estimates for 2025 EBITDA are significantly below their internal expectations, indicating confidence in achieving higher performance [93][94] Question: What are the trends observed in Q1 2025 so far? - Management noted that January was abnormally cold, impacting attendance, but February showed improvement, with overall attendance up on a day-to-day basis [100] Question: Is there any evidence of visitation deferral ahead of the Epic opening? - Management does not currently see clear evidence of visitation deferral, emphasizing that a significant portion of their attendance comes from local visitors [104] Question: What are the key factors affecting attendance growth and pricing strategy? - Management aims to grow total revenue while also focusing on pricing, with expectations to capture more attendance through new attractions and events [110][112]