United Parks & Resorts Inc. Q1 FY2025 earnings call

• Strong financial results despite calendar shifts affecting attendance and revenue. April 2025 attendance was up 8.1% compared to April 2024. - Significant investments in parks including new rides and attractions like SeaWorld San Diego's Jewels of the Sea, SeaWorld San Antonio's Rescue Jr., etc. - Strategic initiatives: ongoing work on hotels, real estate (over 2,000 acres of valuable real estate), sponsorships (expecting mid- to high single-digit revenue from sponsorships in 2025), international discussions, IP partnerships, and park enhancements. - Strong balance sheet with net total leverage ratio 3.1 times and $764 million total available liquidity as of March 31, 2025. - Repurchased 100,000 shares for approximately $4.6 million in the first quarter. - Rescued 205 animals in need in Q1 2025, with over 42,000 animals helped historically.

In the first quarter of 2025, total revenue was $286.9 million, a decrease of $10.5 million or 3.5% compared to the first quarter of 2024. Attendance decreased by approximately 59,000 guests or 1.7% due to the unfavorable calendar shift of Easter and spring break. However, adjusting for the Easter shift impact, attendance would have increased by approximately 2%. Total revenue per capita decreased 1.8%, admission per capita decreased 4.2%, and in-park per capita spending increased 1.1%. Operating expenses decreased $3.6 million or 2.2% compared to the first quarter of 2024. Adjusted EBITDA was $67.4 million, a decrease of $11.7 million compared to the first quarter of 2024.

• Expect new records in revenue and adjusted EBITDA in 2025 with 75% of historical attendance and revenue opportunity still ahead as of April 30, 2025. - April 2025 attendance up 8.1% compared to April 2024. - 2025 bookings for Discovery Cove, group bookings, and international ticket sales running ahead of 2024. - CapEx plans: $56.9 million spent in Q1 2025, expecting $175 million to $200 million on core CapEx and $50 million on growth/ROI projects in 2025.

• Economic uncertainty which may impact guest spending. - Weather impacts, including potential hurricane effects. - Timing of holidays affecting attendance and revenue. - Competition from other attractions like Epic, which could impact market share. - Softening of international market, though it has less impact on United Parks & Resorts due to lower international attendance historically.

Q: Steve Wieczynski asked about the rest of the year outlook, including bridging from Q1 loss to record territory.

A: Marc Swanson responded by pointing to April's strong performance (8% attendance increase, year-to-date day-to-day attendance up over 3%), new rides/attractions, peak pass selling season, sponsorship opportunities, and cost management.

Q: Arpine Kocharyan asked about international sales and group bookings.

A: Marc Swanson said international ticket sales up low single digits, group business continues to have growth opportunities.

Q: Brandt Montour asked about weather impact and Epic.

A: Marc Swanson mentioned slight weather negative in April, and focus on own park strategies despite Epic, with expectation of more people coming to the market due to Epic.

Q: Elizabeth Dove asked about cost impact around Epic and wage/marketing spend.

A: James Mikolaichik responded that labor increases for minimum wage were managed, and marketing spend was strategically redeployed.