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United Parks & Resorts Inc. Fiscal Year 2024 Results

Introduction
United Parks & Resorts Inc., a key player in the theme park and entertainment industry, has released its financial performance for the fourth quarter and the full fiscal year of 2024. This report highlights various aspects of attendance, revenue, and strategic initiatives taken amidst weather challenges that affected operations throughout the year.

Fourth Quarter 2024 Performance

In the fourth quarter, United Parks welcomed approximately 4.9 million guests. Although this figure signifies a slight decrease from the same period in 2023, it reflects the ongoing challenges posed by significant weather events. In total, the company's revenue reached $384.4 million, a modest decline of 1.2% or $4.6 million compared to the previous year. The net income for the quarter was $27.9 million, marking a notable decrease from $40.1 million in the previous year, primarily affected by external factors such as inclement weather that discouraged attendance.

In terms of per capita spending, revenue per visitor climbed to $78.75, an increase of 0.4%. Notably, visitors spent an average of $35.14 on food and merchandise, a record high reflecting effective pricing strategies and consumer confidence.

Fiscal Year 2024 Overview

For the entirety of FY 2024, United Parks saw an attendance total of 21.5 million guests, slightly down by 59,000 or 0.3% compared to the previous year. Total revenue for the year showed resilience, settling at $1,725.3 million, representing only a minor decline of 0.1%. The firm's net income totaled $227.5 million, down 2.9%. Adjusted EBITDA, a crucial metric for the company, was recorded at $700.2 million, indicating a decrease of 1.9% from fiscal year 2023.

Addressing Operational Challenges

The adverse weather conditions, including Hurricanes Debby, Helene, and Milton, were major factors that impeded attendance and, consequently, revenue. Management estimated that these weather events contributed to a loss of approximately 432,000 guests over the fiscal year. Marc Swanson, the CEO of United Parks, stated that while weather has negatively impacted results, they are pleased with the underlying growth in per capita spending, demonstrating the strength of their pricing strategies in a challenging environment.

Shareholder Engagement and Strategic Movements

The company has been actively engaging in share repurchases to enhance shareholder value, buying back around 9.4 million shares, which amounts to roughly 15% of total shares outstanding throughout the year. This move underscores United Parks' belief in the intrinsic value of its stock and its strong cash flow capabilities.

In December 2024, the firm successfully refinanced its term loans, resulting in an estimated $8 million in annual interest savings and extending maturity timelines, further stabilizing the company’s financial position.

Future Outlook and Exciting Developments for 2025

Looking ahead, United Parks is optimistic about the growth opportunities for 2025. They have planned significant investments to enhance their parks, including new attractions and improved experiences geared towards families. The company expects attendance and revenue to rise, predicting new records barring any similar weather disruptions as experienced in the past years.

Highlights for 2025 include a revolutionary immersive attraction at SeaWorld Orlando, alongside several other new rides across various parks which aim to attract visitors and create memorable experiences.

Conclusion

Despite the challenges faced in 2024, United Parks & Resorts Inc. has maneuvered strategically to solidify its operations and maintain positive engagements with its shareholders. The company’s commitment to quality experiences, animal welfare, and financial strength assures a robust outlook for the future. As the entertainment landscape continues to evolve, United Parks remains positioned to adapt and thrive in the competitive theme park industry.