United Parks & Resorts Inc. ((PRKS)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call of United Parks & Resorts Inc. conveyed a mixed sentiment, reflecting both optimism and challenges. The company celebrated strong attendance growth and strategic investments in new attractions for 2025, yet faced hurdles such as decreased revenue, EBITDA, and increased operating expenses. Additionally, adverse weather conditions impacted attendance, contributing to the overall balanced sentiment.
Near-Record Attendance and Revenue
Despite facing poor weather conditions, United Parks & Resorts Inc. reported near-record attendance and record in-park per capita for the fourth quarter and fiscal year 2024. This achievement underscores the company’s resilience and ability to attract visitors even in challenging circumstances.
Share Repurchase Program
In 2024, the company repurchased 9.4 million shares, approximately 15% of total shares outstanding. This move highlights the company’s strong cash flow generation and confidence in its valuation, signaling a commitment to returning value to shareholders.
Positive Booking Trends for 2025
Looking ahead, United Parks & Resorts Inc. reported positive booking trends for 2025, with group bookings up double digits and international sales growth in the mid-single digits. These trends indicate a promising outlook for the company’s future performance.
Numerous Industry Accolades
The company received several industry accolades, with SeaWorld Orlando and Aquatica Orlando earning top rankings in USA TODAY’s best amusement and water parks. Additionally, Busch Gardens Williamsburg was named the world’s most beautiful theme park for the thirty-fourth consecutive year, enhancing the company’s reputation.
Innovative New Attractions for 2025
United Parks & Resorts Inc. announced an exciting lineup of new rides and attractions across various parks for 2025. These innovations are expected to draw more visitors and enhance the overall guest experience.
Impact of Poor Weather
Adverse weather, including hurricanes, led to a decrease in attendance by approximately 167,000 guests in the fourth quarter and 432,000 guests for the fiscal year. This significant impact highlights the challenges posed by unpredictable weather conditions.
Decline in Total Revenue and EBITDA
The company experienced a decline in total revenue by $1.3 million and adjusted EBITDA by $13.3 million, or 1.9%, compared to 2023. These decreases reflect the financial challenges faced during the fiscal year.
Increased Operating Expenses
Operating expenses rose by $2.6 million, or 1.4%, compared to the fourth quarter of 2023, primarily due to increased non-cash adjustments. This increase underscores the need for effective cost management.
Decreased Net Income
Net income for fiscal year 2024 was $227.5 million, a decrease of $6.7 million compared to 2023. This decline is indicative of the financial pressures experienced by the company.
Lower Admission Per Capita
Admission per capita decreased by 1.9% due to the impact of lower pricing on certain promotional admission products. This reduction highlights the challenges in maintaining pricing power.
Forward-Looking Guidance
United Parks & Resorts Inc. provided guidance for a record year in 2025, assuming weather conditions do not worsen. The company aims to increase attendance, grow total per capita spending, and manage costs to enhance shareholder value. With significant growth expected in international sales and group bookings, and new attractions planned, the company is poised for a promising year ahead.
In conclusion, United Parks & Resorts Inc.’s earnings call reflected a mixed sentiment, balancing optimism with challenges. While the company faced financial pressures and adverse weather impacts, it remains focused on strategic growth initiatives, including new attractions and increased bookings, to drive future success.