SeaWorld Continues to Sink in 2nd Quarter Earnings Report

Thursday, August 6, 2015

The numbers don't lie.  SeaWorld's 2nd quarter earnings reported "an attendance decline due to the timing of Easter, record levels of rainfall in Texas and continued brand challenges in California, partially offset by improvements in demand at the Company's other park locations, including Florida."

 

Those “brand challenges” could include the fact that just last week California Coastal Commission has stalled the vote which would allow SeaWorld to build bigger tanks in their proposed Blue World Project.  

 

NBC San Diego reported that the CCC received 75,000 letters and emails, mostly opposing the plan.

 

 

"Our attendance for the second quarter declined due to the timing of Easter, record levels of rainfall in Texas and continued brand challenges in California. " said Joel Manby, President and Chief Executive Officer of SeaWorld Entertainment, Inc. on this morning's call.  "We realize we have much work ahead of us to recover more of our attendance base, increase revenue and improve our performance as returning to historical performance levels will take time and investment."

 

During the second quarter of 2015, the Company generated revenue of $391.6 million, a decrease of $13.5 million, or 3%, versus the second quarter of 2014. Adjusted EBITDA was $100.2 million compared to $126.1 million in the second quarter of 2014. 

 

The decrease in revenue was driven by a 1.8% decrease in total revenue per capita along with a 1.6% decrease in attendance for the quarter. Total revenue per capita was $60.45 in the second quarter of 2015 compared to $61.54 in the second quarter of 2014.  Admission per capita, defined as admissions revenue divided by total attendance, decreased by 2.8% to $36.81 in the second quarter of 2015 from $37.86 in the prior year second quarter primarily as a result of an increase in promotional offerings and passholder visitation along with an unfavorable change in the park attendance mix.  In-park per capita spending, calculated as food, merchandise and other revenue divided by total attendance,  remained relatively flat at $23.64 in the second quarter of 2015 compared to $23.68 in the prior year second quarter.

 

During the first half of 2015, the Company generated revenue of $606.2 million, a decrease of $11.2 million, or 2%, compared to the same period in 2014.

 

Cash flow from operating activities was $142.1 million in the first half of 2015 compared to $133.5 million in the first half of 2014.

 

In other words, they are spending more for less.  In the central Florida area, residents can’t turn on the TV or radio without hearing a commercial or see a promotion for SeaWorld.  Restaurants and grocery stores also have promotional offers.  The campaign is costing them millions, yet it seems they can’t even GIVE tickets away.

 

Orlando Sentinel broke it down this way: 

 

Despite spending millions in its second quarter to improve its theme parks' reputation, SeaWorld Entertainment this morning reported an 84 percent drop in net income amid falling attendance.

SeaWorld's selling, general and administrative expenses spiked largely because of a new marketing campaign to convince the public its killer whales are thriving. SeaWorld spent $73.3 million on SG&A costs, compared with $58.6 million the previous year.

 

Still, SeaWorld's net income declined to $5.8 million from $37.4 million the previous year.

Attendance decreased 1.6 percent to 6.5 million visitors. Revenue dropped to $391.6 million from $405.2 million.

 

Ocean Advocate News has developed a new petition to continue to pressure SeaWorld into changing this sinking business practice of orca captivity.  Captivity will not end until their breeding program ends.  Please join us in signing and sharing the petition to demand that SeaWorld put an end to the cruelty.

 

 

The entire 2nd quarter earnings report can be found here on PR Newswire.

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