ORLANDO, Fla., May 7, 2019 /PRNewswire/ -- SeaWorld
Entertainment, Inc. (NYSE: SEAS), a leading theme park and
entertainment company, today reported its financial results for the
first quarter of 2019.
First Quarter 2019 Highlights
- Attendance increased by 0.1 million guests, or 3.6%, to 3.3
million guests from the first quarter of 2018.
- Total revenue increased by $3.4
million, or 1.6%, to $220.6
million from the first quarter of 2018.
- Net loss was $37.0 million,
compared to a net loss of $62.8
million in the first quarter of 2018. Net loss for the first
quarter of 2019 includes approximately $2.6
million of separation-related costs, as discussed further
below. Net loss for the first quarter of 2018 includes
approximately $21.5 million of
certain pre-tax expenses, as discussed further below.
- Adjusted EBITDA[1] was $16.4
million, an improvement of $14.1
million, over the first quarter of 2018.
"We are pleased with our first quarter results that exceeded the
prior year quarter. Increased attendance and revenue growth
and the realization and flow through of cost savings are
demonstrating improved operating leverage," said Gus Antorcha, Chief Executive Officer of
SeaWorld Entertainment, Inc. "Attendance and revenue
primarily benefitted from increased demand and increased in park
spending which was partially offset by impacts from unfavorable
weather in some of our parks and the shift in the timing of Easter
and school spring break in some of our markets from the first
quarter to the second quarter. Our improved results reflect
our focus on improved marketing and communications initiatives, new
pricing strategies, and the favorable guest reception to our new
rides and compelling attractions and events. Our results also
reflect the impact of our successful and ongoing efforts to reduce
costs. Despite this solid start to the year, we know we still
have significant opportunity for further improvement."
"We are excited about our rides, attractions and events coming
to our parks," continued Antorcha. "This year, we believe we
have one of the best lineups we have ever had. In March, we
opened Sesame Street at SeaWorld Orlando and Ihu's
Breakaway Falls at Aquatica San Antonio. Since the end of the
first quarter, we opened KareKare Curl at Aquatica Orlando,
Tigris at Busch Gardens Tampa Bay, Turtle Reef, Sea
Swinger and Riptide Rescue at SeaWorld San Antonio,
Finnegans's Flyer at Busch Gardens Williamsburg and an
all-new Sesame Street Neighborhood at Sesame Place. Later
this month, we will open Tidal Twister at SeaWorld San Diego
and Cutback Water Coaster at Water Country USA. We are
pleased to report that all of our new rides and attractions will
open before the start of the peak summer season.
Additionally, this summer we have our one-of-a-kind Sesame Parade
returning to San Diego and
San Antonio, our award winning
Electric Ocean event returning to each of our SeaWorld parks and
our Summer Nights event returning to each of our Busch Gardens
parks."
First Quarter 2019 Results
In the first quarter of 2019, the Company hosted approximately
3.3 million guests, generated total revenues of $220.6 million, incurred a net loss of
$37.0 million and reported Adjusted
EBITDA of $16.4 million. Net loss
includes approximately $2.6 million
of pre-tax expenses associated with separation-related costs.
Net loss in the first quarter of 2018 includes approximately
$21.5 million of pre-tax expenses
associated with separation-related costs and a legal settlement
accrual recorded in the first quarter of 2018.
The Company believes the attendance increase resulted from
increased demand due to a combination of factors including improved
marketing and communication initiatives, new pricing strategies,
and the positive reception of its new rides and compelling
attractions and events. Attendance was negatively impacted in
the quarter by a combination of unfavorable weather at some of its
parks and the later timing of Easter and spring break for a number
of schools from the Company's key markets. These negative impacts
on attendance were partially offset by an extra weekend day in
March and the timing of school holiday break schedules in early
January.
Total revenue was positively impacted by the increase in
attendance and improved in-park per capita spending (defined as
food, merchandise and other revenue divided by total attendance)
partially offset by lower admission per capita (defined as
admissions revenue divided by total attendance). The decline in
admission per capita primarily results from the continued
implementation of new pricing strategies and visitation mix,
primarily related to the shift of Easter and spring break into the
second quarter and increased season pass mix during the
quarter. The Easter and spring break shift decreased the
percentage of tourist visitation during the quarter, which
generally comes with higher admissions per capita. The
increased season pass mix generally drives higher total revenue,
but lower admissions per capita. Adjusted EBITDA was
positively impacted by an increase in total revenue and the
realization of cost savings initiatives.
1 This earnings release includes
Adjusted EBITDA and Free Cash Flow which are metrics that are not
calculated in accordance with Generally Accepted Accounting
Principles in the U.S. ("GAAP"). See "Statement Regarding Non-GAAP
Financial Measures" section and the financial statement tables for
the definitions of Adjusted EBITDA and Free Cash Flow and the
reconciliation of these measures for historical periods to their
respective most comparable financial measures calculated in
accordance with GAAP.
|
|
For the Three
Months Ended March 31,
|
|
|
Change
|
|
|
|
2019
|
|
|
2018
|
|
|
%
|
|
(Unaudited, in
millions, except per share and per capita
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$
|
220.6
|
|
|
$
|
217.2
|
|
|
|
1.6
|
%
|
Net loss
|
|
$
|
(37.0)
|
|
|
$
|
(62.8)
|
|
|
|
41.1
|
%
|
Net loss per share,
diluted
|
|
$
|
(0.44)
|
|
|
$
|
(0.73)
|
|
|
|
39.7
|
%
|
Adjusted
EBITDA
|
|
$
|
16.4
|
|
|
$
|
2.3
|
|
|
|
614.4
|
%
|
Net cash provided by
operating activities
|
|
$
|
37.7
|
|
|
$
|
20.3
|
|
|
|
85.5
|
%
|
Attendance
|
|
|
3.34
|
|
|
|
3.22
|
|
|
|
3.6
|
%
|
Total revenue per
capita
|
|
$
|
66.04
|
|
|
$
|
67.36
|
|
|
|
(2.0)
|
%
|
Admission per
capita
|
|
$
|
38.60
|
|
|
$
|
40.32
|
|
|
|
(4.3)
|
%
|
In-Park per capita
spending
|
|
$
|
27.44
|
|
|
$
|
27.04
|
|
|
|
1.5
|
%
|
Debt and Liquidity
As of March 31, 2019, the
Company's total leverage ratio as calculated under the Senior
Secured Credit Facilities was 3.51 to 1.00.
Conference Call
The Company will hold a conference call today, Tuesday, May 7, 2019 at 9
a.m. Eastern Time to discuss its first quarter 2019
financial results. The conference call will be broadcast live on
the Internet and the release and conference call can be accessed
via the Company's website at
www.seaworldentertainment.com by clicking on the
"Investor Relations" link located on the upper right corner of that
page. For those unable to participate in the live webcast, a replay
will be available beginning at 12 p.m.
Eastern Time on May 7, 2019
under the "Events & Presentations" tab of
www.SeaWorldInvestors.com. A replay of the call can also be
accessed telephonically from 12 p.m. Eastern
Time on May 7, 2019 through
11:59 p.m. Eastern Time on
May 14, 2019 by dialing (877)
344-7529 from anywhere in the U.S., (855) 669-9658 from anywhere in
Canada, or (412) 317-0088 from
international locations and entering the conference code
10130727.
Statement Regarding Non-GAAP Financial Measures
This earnings release and accompanying financial statement
tables include several supplemental non-GAAP financial measures,
including Adjusted EBITDA and Free Cash Flow. Adjusted EBITDA and
Free Cash Flow are not recognized terms 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 are not indicative of net income or loss or net cash provided
by operating activities as determined under GAAP. Adjusted EBITDA,
Free Cash Flow and other non-GAAP financial measures have
limitations that should be considered before using these measures
to evaluate a company's financial performance or liquidity.
Adjusted EBITDA and Free Cash Flow, 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 a 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. The presentation of Adjusted
EBITDA also provides additional information to investors about the
calculation of, and compliance with, certain financial covenants in
the Company's Senior Secured Credit Facilities. Adjusted EBITDA is
a material component of these covenants.
The financial statement tables that accompany this press release
include a reconciliation of historical non-GAAP financial measures
to the most directly comparable U.S. GAAP financial measures.
About SeaWorld Entertainment, Inc.
SeaWorld Entertainment, Inc. (NYSE: SEAS) is a leading theme
park and entertainment company providing experiences that matter,
and inspiring guests to protect animals and the wild wonders of our
world. The Company is one of the world's foremost zoological
organizations and a global leader in animal welfare, training,
husbandry and veterinary care. The Company collectively cares for
what it believes is one of the largest zoological collections in
the world and has helped lead advances in the care of animals. The
Company also rescues and rehabilitates marine and terrestrial
animals that are ill, injured, orphaned or abandoned, with the goal
of returning them to the wild. The SeaWorld® rescue team
has helped more than 34,000 animals in need over the last 50
years. SeaWorld Entertainment, Inc. owns or licenses a
portfolio of recognized brands including SeaWorld, Busch
Gardens®, Aquatica®, Sesame Place®
and Sea Rescue®. Over its more than 50-year history, the
Company has built a diversified portfolio of 12 destination and
regional theme parks that are grouped in key markets across
the United States, many of which
showcase its one-of-a-kind zoological collection. The Company's
theme parks feature a diverse array of rides, shows and other
attractions with broad demographic appeal which deliver memorable
experiences and a strong value proposition for its guests.
Copies of this and other news releases as well as additional
information about SeaWorld Entertainment, Inc. can be obtained
online at www.seaworldentertainment.com. Shareholders and
prospective investors can also register to automatically receive
the Company's press releases, SEC filings and other notices by
e-mail by registering at that website.
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 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,
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: a decline in
discretionary consumer spending or consumer confidence; various
factors beyond management's control adversely affecting attendance
and guest spending at the Company's theme parks, including the
potential spread of contagious diseases; any risks affecting the
markets in which the Company operates, such as natural disasters,
severe weather and travel-related disruptions or incidents;
increased labor costs and employee health and welfare benefits;
complex federal and state regulations governing the treatment of
animals, which can change, and claims and lawsuits by activist
groups; incidents or adverse publicity concerning the Company's
theme parks; any adverse judgments or settlements resulting from
legal proceedings as well as risks relating to audits, inspections
and investigations by, or requests for information from, various
federal and state regulatory agencies; cyber security risks and the
failure to maintain the integrity of internal or guest data;
inability to protect the Company's intellectual property or the
infringement on intellectual property rights of others; risks
associated with the Company's cost optimization program, capital
allocation plans, share repurchases and financing transactions; and
other risks, uncertainties and factors set forth in the section
entitled "Risk Factors" in the Company's most recently available
Annual Report on Form 10-K, as such risks, uncertainties and
factors may be updated in the Company's periodic filings with the
Securities and Exchange Commission ("SEC").
Although the Company believes that these statements are based
upon reasonable assumptions, it cannot guarantee future results and
readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's opinions
only as of the date of this press release. There can be no
assurance that (i) the Company has correctly measured or identified
all of the factors affecting its business or the extent of these
factors' likely impact, (ii) the available information with respect
to these factors on which such analysis is based is complete or
accurate, (iii) such analysis is correct or (iv) the Company's
strategy, which is based in part on this analysis, will be
successful. Except as required by law, the Company undertakes no
obligation to update or revise forward-looking statements to
reflect new information or events or circumstances that occur after
the date of this press release or to reflect the occurrence of
unanticipated events or otherwise. Readers are advised to review
the Company's filings with the SEC (which are available from the
SEC's EDGAR database at www.sec.gov and via the Company's
website at www.seaworldinvestors.com).
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands,
except per share amounts)
|
|
|
|
For the Three
Months Ended
March 31,
|
|
|
Change
|
|
|
|
|
|
2019
|
|
|
2018
|
|
|
#
|
|
|
%
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions
|
|
$
|
128,913
|
|
|
$
|
130,003
|
|
|
$
|
(1,090)
|
|
|
|
(0.8)
|
%
|
|
|
Food, merchandise and
other
|
|
|
91,662
|
|
|
|
87,163
|
|
|
|
4,499
|
|
|
|
5.2
|
%
|
|
|
Total
revenues
|
|
|
220,575
|
|
|
|
217,166
|
|
|
|
3,409
|
|
|
|
1.6
|
%
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of food,
merchandise and other revenues
|
|
|
17,213
|
|
|
|
17,051
|
|
|
|
162
|
|
|
|
1.0
|
%
|
|
|
Operating expenses
(exclusive of depreciation and
amortization shown separately below and includes equity
compensation of $1,357 and $1,563 for the three months
ended March 31, 2019 and 2018, respectively)
|
|
|
149,885
|
|
|
|
155,473
|
|
|
|
(5,588)
|
|
|
|
(3.6)
|
%
|
|
|
Selling, general and
administrative expenses (includes
equity compensation of $1,841 and $5,982 for the three
months ended March 31, 2019 and 2018,
respectively)
|
|
|
42,764
|
|
|
|
63,524
|
|
|
|
(20,760)
|
|
|
|
(32.7)
|
%
|
|
|
Restructuring and
other separation costs (a)
|
|
|
2,566
|
|
|
|
8,835
|
|
|
|
(6,269)
|
|
|
|
(71.0)
|
%
|
|
|
Depreciation and
amortization
|
|
|
39,450
|
|
|
|
38,430
|
|
|
|
1,020
|
|
|
|
2.7
|
%
|
|
|
Total costs and
expenses
|
|
|
251,878
|
|
|
|
283,313
|
|
|
|
(31,435)
|
|
|
|
(11.1)
|
%
|
|
|
Operating
loss
|
|
|
(31,303)
|
|
|
|
(66,147)
|
|
|
|
34,844
|
|
|
|
52.7
|
%
|
|
|
Other expense,
net
|
|
|
27
|
|
|
|
63
|
|
|
|
(36)
|
|
|
|
(57.1)
|
%
|
|
|
Interest
expense
|
|
|
20,797
|
|
|
|
19,913
|
|
|
|
884
|
|
|
|
4.4
|
%
|
|
|
Loss before income
taxes
|
|
|
(52,127)
|
|
|
|
(86,123)
|
|
|
|
33,996
|
|
|
|
39.5
|
%
|
|
|
Benefit from income
taxes
|
|
|
(15,107)
|
|
|
|
(23,279)
|
|
|
|
8,172
|
|
|
|
35.1
|
%
|
|
|
Net
loss
|
|
$
|
(37,020)
|
|
|
$
|
(62,844)
|
|
|
$
|
25,824
|
|
|
|
41.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share,
basic
|
|
$
|
(0.44)
|
|
|
$
|
(0.73)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share,
diluted
|
|
$
|
(0.44)
|
|
|
$
|
(0.73)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
83,354
|
|
|
|
86,209
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
(b)
|
|
|
83,354
|
|
|
|
86,209
|
|
|
|
|
|
|
|
|
|
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In
thousands, except per share amounts)
|
|
|
|
For the Three
Months Ended
March 31,
|
|
|
Change
|
|
|
Last Twelve
Months
Ended
March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
#
|
|
|
%
|
|
|
2019
|
|
Net
loss
|
|
$
|
(37,020)
|
|
|
$
|
(62,844)
|
|
|
$
|
25,824
|
|
|
|
41.1
|
%
|
|
$
|
70,612
|
|
Benefit from income
taxes
|
|
|
(15,107)
|
|
|
|
(23,279)
|
|
|
|
8,172
|
|
|
|
35.1
|
%
|
|
|
26,087
|
|
Loss on early
extinguishment of debt and write-off of
discounts and debt issuance
costs (c)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,150
|
|
Interest
expense
|
|
|
20,797
|
|
|
|
19,913
|
|
|
|
884
|
|
|
|
4.4
|
%
|
|
|
81,798
|
|
Depreciation and
amortization
|
|
|
39,450
|
|
|
|
38,430
|
|
|
|
1,020
|
|
|
|
2.7
|
%
|
|
|
161,975
|
|
Equity-based
compensation expense (d)
|
|
|
3,198
|
|
|
|
7,545
|
|
|
|
(4,347)
|
|
|
|
(57.6)
|
%
|
|
|
17,805
|
|
Loss on impairment or
disposal of assets and certain non-
cash expenses(e)
|
|
|
109
|
|
|
|
395
|
|
|
|
(286)
|
|
|
|
(72.4)
|
%
|
|
|
18,576
|
|
Business
optimization, development and strategic initiative
costs (f)
|
|
|
5,108
|
|
|
|
11,466
|
|
|
|
(6,358)
|
|
|
|
(55.5)
|
%
|
|
|
23,102
|
|
Certain investment
costs and other taxes (g)
|
|
|
50
|
|
|
|
178
|
|
|
|
(128)
|
|
|
|
(71.9)
|
%
|
|
|
3,225
|
|
Other adjusting items
(h)
|
|
|
(169)
|
|
|
|
10,494
|
|
|
|
(10,663)
|
|
|
NM
|
|
|
|
4,067
|
|
Adjusted EBITDA
(i)
|
|
$
|
16,416
|
|
|
$
|
2,298
|
|
|
$
|
14,118
|
|
|
|
614.4
|
%
|
|
$
|
415,397
|
|
Items added back
to Adjusted EBITDA, after cost savings, as
defined in the Amended Credit
Agreement:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated cost
savings (j)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,400
|
|
Adjusted EBITDA,
after cost savings (k)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
436,797
|
|
Prior to the
Amended Credit Agreement, the credit agreement governing the
Company's Senior Secured Credit Facilities limited
the amount of certain add-backs as described in footnotes (f) and
(h) below. The Adjusted EBITDA for all periods above reflects
the current definitions in the Amended Credit Agreement. The
following table reconciles the Adjusted EBITDA calculation as
previously defined prior to the Amended Credit Agreement to the
Adjusted EBITDA calculation as defined in the Amended Credit
Agreement. This table is presented as supplemental
information only:
|
|
|
|
|
|
|
|
For the
Three
Months
Ended
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (as
previously defined)
|
|
|
|
|
|
$
|
(117)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain expenses over
previous credit agreement limit(f)
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes related to
other adjusting items not previously added
back(h)
|
|
|
|
|
|
|
2,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (as
defined in Amended Credit
Agreement)
|
|
|
|
|
|
$
|
2,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
March 31,
|
|
|
Change
|
|
|
|
|
|
|
|
2019
|
|
|
2018
|
|
|
#
|
|
|
%
|
|
|
|
|
|
Net cash provided
by operating activities
|
|
$
|
37,688
|
|
|
$
|
20,317
|
|
|
$
|
17,371
|
|
|
|
85.5
|
%
|
|
|
|
|
Capital
expenditures
|
|
|
47,937
|
|
|
|
45,822
|
|
|
|
2,115
|
|
|
|
4.6
|
%
|
|
|
|
|
Free Cash Flow
(l)
|
|
$
|
(10,249)
|
|
|
$
|
(25,505)
|
|
|
$
|
15,256
|
|
|
|
59.8
|
%
|
|
|
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED BALANCE
SHEET DATA (In thousands)
|
|
|
|
As of
March 31, 2019
|
|
|
As of December
31,
2018
|
|
Cash and cash
equivalents
|
|
$
|
51,860
|
|
|
$
|
34,073
|
|
Total
assets(m)
|
|
$
|
2,306,194
|
|
|
$
|
2,115,602
|
|
Long-term debt,
including current maturities:
|
|
|
|
|
|
|
|
|
Term B-5
Loans
|
|
$
|
1,519,513
|
|
|
$
|
1,523,389
|
|
Revolving credit
facility
|
|
|
65,000
|
|
|
|
30,000
|
|
Total long-term debt,
including current maturities
|
|
$
|
1,584,513
|
|
|
$
|
1,553,389
|
|
Total stockholders'
equity
|
|
$
|
226,420
|
|
|
$
|
265,194
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED CAPITAL
EXPENDITURES DATA (In thousands)
|
|
|
|
For the Three
Months Ended
March 31,
|
|
|
Change
|
|
|
|
|
2019
|
|
|
2018
|
|
|
#
|
|
|
%
|
|
|
Capital
Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core(n)
|
|
|
44,676
|
|
|
|
45,203
|
|
|
|
(527)
|
|
|
|
(1.2)
|
%
|
|
Expansion/ROI
projects(o)
|
|
|
3,261
|
|
|
|
619
|
|
|
|
2,642
|
|
|
NM
|
|
|
Capital expenditures,
total
|
|
$
|
47,937
|
|
|
$
|
45,822
|
|
|
$
|
2,115
|
|
|
|
4.6
|
%
|
|
SEAWORLD
ENTERTAINMENT, INC. AND SUBSIDIARIES UNAUDITED OTHER
DATA (In thousands, except per capita
amounts)
|
|
|
|
For the Three
Months Ended
March 31,
|
|
|
Change
|
|
|
|
|
2019
|
|
|
2018
|
|
|
#
|
|
|
%
|
|
|
Attendance
|
|
|
3,340
|
|
|
|
3,224
|
|
|
|
116
|
|
|
|
3.6
|
%
|
|
Total revenue per
capita (p)
|
|
$
|
66.04
|
|
|
$
|
67.36
|
|
|
$
|
(1.32)
|
|
|
|
(2.0)
|
%
|
|
NM-Not meaningful.
(a) Reflects restructuring and other separation
costs. For the three months ended March 31, 2018 primarily relates to severance and
other employment expenses for certain executives whose employment
terminated during the first quarter of 2018.
(b) During the three months ended March 31, 2019 and 2018, the Company excluded
potentially dilutive shares of approximately 1,893,000 and
4,495,000, respectively, from the calculation of diluted loss per
share as their effect would have been anti-dilutive due to the
Company's net loss in those periods.
(c) Reflects the write-off of $8.2 million in debt
issuance costs incurred on the Term B-5 Loans during the twelve
months ended March 31, 2019.
(d) Reflects non-cash equity compensation expenses
associated with the grants of equity compensation. For the
three months ended March 31, 2018 and
the twelve months ended March 31,
2019, includes approximately $4.5
million and $1.0 million,
respectively, related to equity awards which were accelerated in
connection with the departure of certain executives, as required by
their respective employment agreements.
(e) Reflects primarily non-cash expenses related to
miscellaneous fixed asset disposals and impairments. For the
twelve months ended March 31, 2019,
includes approximately $10.9 million
associated with certain rides and equipment which were removed from
service.
(f) For the three months ended March 31, 2019, reflects business optimization,
development and other strategic initiative costs primarily related
to $2.6 million of severance and
other employment costs associated with positions eliminated and
$2.3 million of third party
consulting costs. For the three months ended March 31, 2018, reflects business optimization,
development and other strategic initiative costs primarily related
to $8.8 million of severance and
other employment costs associated with the departure of certain
executives during the first quarter of 2018 as well as $2.0 million of third party consulting costs. For
the twelve months ended March 31,
2019, reflects business optimization, development and other
strategic initiative costs primarily related to $11.1 million of severance and other employment
costs which includes costs associated with the departure of certain
executives during 2018 and costs related to a restructuring program
and $11.1 million of third party
consulting costs.
On October 31, 2018, the Company
entered into a refinancing amendment (the "Amended Credit
Agreement") to the existing Senior Secured Credit Facilities.
Prior to the Amended Credit Agreement, due to limitations under the
credit agreement governing the Company's Senior Secured Credit
Facilities, the amount which the Company was able to add back to
Adjusted EBITDA for these costs, was limited to $15.0 million in any fiscal year. The Company did
not have any costs exceeding this limit in the three months ended
March 31, 2018.
(g) For the twelve months ended March 31, 2019, includes a loss of approximately
$2.8 million relating to expenses
incurred and fees associated with the termination of an agreement
in September 2018.
(h) Reflects the impact of expenses, net of insurance
recoveries and adjustments, incurred primarily related to certain
legal matters, which the Company is permitted to exclude under the
credit agreement governing the Company's Senior Secured Credit
Facilities due to the unusual nature of the items. For the
three months ended March 31, 2018 and
the twelve months ended March 31,
2019, also includes $8.1
million and $4.0 million,
respectively, related to legal settlements.
Prior to the Amended Credit Agreement, these items were excluded
on an after-tax basis only, as such, the Adjusted EBITDA
calculation for the three months ended March
31, 2018 previously reported did not reflect related taxes
of approximately $2.4
million.
(i) 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 permitted in calculating covenant compliance under the
credit agreement governing the Company's Senior Secured Credit
Facilities. The Adjusted EBITDA presentation for the prior periods
has been changed to conform with the current period
presentation. In particular, the Adjusted EBITDA calculation
was changed to conform with the changes made to its definition in
the Amended Credit Agreement. Prior to the Amended Credit
Agreement, the credit agreement governing the Company's Senior
Secured Credit Facilities limited the amount of certain add-backs
as described in footnotes (f) and (h) above.
(j) The Senior Secured Credit Facilities permits the
Company's calculation of certain covenants to be based on Adjusted
EBITDA, as defined above, for the last twelve month period further
adjusted for net annualized estimated savings the Company expects
to realize over the following 18 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 Amended Credit Agreement and does not impact the
Company's reported GAAP net income (loss). The Amended Credit
Agreement limits the amount of such estimated savings which may be
reflected to 25% of Adjusted EBITDA, calculated for the last twelve
months before the impact of these estimated cost savings. Prior to
the Amended Credit Agreement, the credit agreement limited the
amount of such estimated savings which could be reflected in the
calculation of Adjusted EBITDA to $10.0
million for any four consecutive fiscal quarters calculated
as the amount the Company expected to realize over the following 12
month period.
(k) The Senior Secured Credit Facilities
permits the Company's calculation of certain covenants to be based
on Adjusted EBITDA, as defined above, for the last twelve month
period further adjusted for net annualized estimated savings as
described in footnote (j) above.
(l) Free Cash Flow is defined as net cash provided by
(used in) operating activities less capital expenditures.
Management believes that Free Cash Flow is useful to investors,
equity analysts and rating agencies as a liquidity measure. The
Company uses Free Cash Flow to evaluate its ability to generate
cash flow from business operations. Free Cash Flow does not
represent the residual cash flow available for discretionary
expenditures, as it excludes certain expenditures such as mandatory
debt service requirements, which are significant. Free Cash Flow is
not defined by GAAP and should not be considered in isolation or as
an alternative to net cash provided by (used in) operating,
investing and financing activities or other financial data prepared
in accordance with GAAP. Free Cash Flow as defined above may differ
from similarly titled measures presented by other
companies.
(m) Total assets as of March
31, 2019 includes the impact from the adoption of Accounting
Standards Codification ("ASC") 842, Leases, which required
right of use assets associated with the Company's leases to be
recorded on the balance sheet. Right of Use Assets–Operating
of approximately $145.8 million are
included in total assets as of March 31,
2019.
(n) Reflects capital expenditures during the
respective period for park rides, attractions and maintenance
activities.
(o) Reflects capital expenditures during the
respective period for park expansion, new properties, revenue
and/or expense return on investment ("ROI") projects.
(p) Calculated as total revenues divided by
attendance.
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SOURCE SeaWorld Entertainment, Inc.