UNITED PARKS & RESORTS INC. ANNOUNCES PRELIMINARY SECOND QUARTER RESULTS
The Company's financial statements for the three and six months ended
- Attendance was approximately 6.2 million guests, an increase from 6.1 million guests from the quarter ended
June 30, 2023 ("Q2 2023"). - Total revenues is expected to be approximately
$495-$500 million , compared to$496.0 million in Q2 2023. - Net income is expected to be approximately
$87-$95 million , compared to$87.1 million in Q2 2023. - Adjusted EBITDA is expected to be approximately
$215-$220 million , compared to$224.2 million in Q2 2023.
The Company's financial information is preliminary and unaudited and inherently uncertain and subject to change as the Company completes its financial statements as of and for the three months ended
Statement Regarding Non-GAAP Financial Measures
This release and accompanying financial statement tables include Adjusted EBITDA, a non-GAAP financial measure, which is not a recognized term under GAAP, should not be considered in isolation or as a substitute for a measure of financial performance or liquidity prepared in accordance with GAAP and is not indicative of net income or loss or net cash provided by operating activities as determined under GAAP.
Adjusted EBITDA has limitations that should be considered before using the measure to evaluate a company's financial performance or liquidity. Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies due to varying methods of calculation.
Management believes the presentation of Adjusted EBITDA is appropriate as it eliminates the effect of certain non-cash and other items not necessarily indicative of the Company's underlying operating performance. Management uses Adjusted EBITDA in connection with certain components of its executive compensation program. In addition, investors, lenders, financial analysts and rating agencies have historically used EBITDA-related measures in the Company's industry, along with other measures, to estimate the value of a company, to make informed investment decisions and to evaluate companies in the industry.
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Forward-Looking Statements
In addition to historical information, this press release contains statements relating to future results (including certain projections and business trends) that are "forward-looking statements" within the meaning of the federal securities laws. The Company generally uses the words such as "might," "will," "may," "should," "estimates," "expects," "continues," "contemplates," "anticipates," "projects," "plans," "potential," "predicts," "intends," "believes," "forecasts," "future," "guidance," "targeted," "goal" and variations of such words or similar expressions in this press release and any attachment to identify forward-looking statements. All statements, other than statements of historical facts included in this press release, including statements concerning plans, objectives, goals, expectations, beliefs, business strategies, future events, business conditions, results of operations, financial position, business outlook, earnings guidance, business trends and other information are forward-looking statements. The forward-looking statements are not historical facts, and are based upon current expectations, beliefs, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control. All expectations, beliefs, estimates and projections are expressed in good faith and the Company believes there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, estimates and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond management's control, that could cause actual results to differ materially from the forward-looking statements contained in this press release, including among others: various factors beyond the Company's control adversely affecting attendance and guest spending at the Company's theme parks, including, but not limited to, weather, natural disasters, labor shortages, inflationary pressures, supply chain delays or shortages, foreign exchange rates, consumer confidence, the potential spread of travel-related health concerns including pandemics and epidemics, travel related concerns, adverse general economic related factors including increasing interest rates, economic uncertainty, and recent geopolitical events outside of
CONTACT:
Investor Relations Inquiries:
Investor Relations
888-410-1812
Investors@unitedparks.com
Media:
FleishmanHillard
(314) 719-7521
Libby.Panke@fleishman.com
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UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
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(In millions) |
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For the Three Months |
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For the Six Months Ended |
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Last Twelve |
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2024 |
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2023 |
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2024 |
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2023 |
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2024 |
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Net income |
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$ |
87 |
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$ |
71 |
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Provision for income taxes |
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31-33 |
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31 |
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25-27 |
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23 |
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81-83 |
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Interest expense |
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39-40 |
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37 |
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78-79 |
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73 |
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151-152 |
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Loss on early extinguishment of debt and write-off |
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2-3 |
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— |
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2-3 |
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— |
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2-3 |
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Depreciation and amortization |
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40 |
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38 |
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79 |
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75 |
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158 |
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Equity-based compensation expense (b) |
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3 |
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4 |
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7 |
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9 |
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16 |
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Loss on impairment or disposal of assets and certain |
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2 |
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11 |
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8 |
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14 |
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25 |
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Business optimization, development and strategic |
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4-5 |
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12 |
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7-8 |
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22 |
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20-21 |
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Certain investment costs and other taxes (e) |
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1 |
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— |
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4 |
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— |
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6 |
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COVID-19 related incremental costs (f) |
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1 |
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4 |
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2 |
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8 |
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3 |
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Other adjusting items (g) |
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2 |
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— |
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3 |
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2 |
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6 |
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Adjusted EBITDA (h) |
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$ |
224 |
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$ |
297 |
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Items added back to Covenant Adjusted EBITDA as defined in the Debt Agreements: |
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Estimated cost savings (i) |
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Other adjustments as defined in the Debt Agreements (j) |
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Covenant Adjusted EBITDA (k) |
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Note: Columns may not foot due to rounding |
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(a) |
Reflects a loss on early extinguishment of debt and write-off of discounts and debt issuance costs associated with the Company's Refinancing Transactions in the second quarter. |
(b) |
Reflects non-cash equity compensation expenses and related payroll taxes associated with the grants of equity-based compensation. |
(c) |
Reflects primarily non-cash expenses related to miscellaneous fixed asset disposals including asset write-offs and costs related to certain rides and equipment which were removed from service. Includes non-cash self-insurance reserve adjustments of: (i) approximately |
(d) |
For the three, six, and twelve months ended |
(e) |
For the three, six and twelve months ended |
(f) |
Primarily reflects costs associated with certain legal matters and nonrecurring contractual liabilities related to the previously disclosed temporary COVID-19 park closures. |
(g) |
Reflects the impact of expenses, net of insurance recoveries and adjustments, incurred primarily related to certain matters, which we are permitted to exclude under the credit agreement governing our Senior Secured Credit Facilities due to the unusual nature of the items. |
(h) |
Adjusted EBITDA is defined as net income (loss) before income tax expense, interest expense, depreciation and amortization, as further adjusted to exclude certain non-cash, and other items as described above. |
(i) |
The Company's debt agreements permit the calculation of certain covenants to be based on Covenant Adjusted EBITDA for the last twelve-month period further adjusted for net annualized estimated savings we expect to realize over the following 24-month period related to certain specified actions, including restructurings and cost savings initiatives. These estimated savings are calculated net of the amount of actual benefits realized during such period. These estimated savings are a non-GAAP Adjusted EBITDA add-back item only as defined in the Company's debt agreements and does not impact its reported GAAP net income (loss). |
(j) |
The Company's debt agreements permit the calculation of certain covenants to be based on Covenant Adjusted EBITDA for the last twelve-month period further adjusted for certain costs as permitted by Company's debt agreements including recruiting and retention expenses, public company compliance costs and litigation and arbitration costs, if any. |
(k) |
Covenant Adjusted EBITDA is defined in the Company's debt agreements as Adjusted EBITDA for the last twelve-month period further adjusted for net annualized estimated savings among other adjustments as described in footnotes (i) and (j) above. |
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