8-K: United Parks & Resorts Inc. Reports First Quarter 2025 Results: Attendance and Revenue Decline

United Parks & Resorts Inc. reported a decrease in attendance and revenue for the first quarter of 2025, impacted by the timing of Easter and Spring Break holidays.

Summary

• United Parks & Resorts Inc. announced its first quarter 2025 financial results, revealing a decrease in both attendance and revenue compared to the first quarter of 2024.
• Attendance was 3.4 million guests, a 1.7% decrease from the prior year.
• Total revenue decreased by 3.5% to $286.9 million.
• The company reported a net loss of $16.1 million, which is a decrease of $4.9 million from the first quarter of 2024.
• Adjusted EBITDA was $67.4 million, a decrease of 14.8% from the first quarter of 2024.
• Total revenue per capita decreased 1.8% to $84.62, while admission per capita decreased 4.2% to $46.04.
• In-park per capita spending increased 1.1% to a record $38.58.
• The company repurchased approximately 100,000 shares for $4.6 million during the quarter.
• United Parks & Resorts aided 205 animals in need during the quarter, bringing their historical total to over 42,000 animals.
• The company anticipates new records in revenue and Adjusted EBITDA in 2025.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While the current quarter's results are down, the company expresses optimism for the remainder of the year and highlights positive trends in in-park spending and future bookings. The forward-looking statements and management's confidence contribute to the moderate sentiment.

Positives

• In-park per capita spending increased by 1.1% to a record $38.58.
• April 2025 attendance was up 8.1% compared to April 2024.
• The company expects new records in revenue and Adjusted EBITDA in 2025.
• The company aided 205 animals in need during the quarter, bringing their historical total to over 42,000 animals.
• 2025 bookings for Discovery Cove, group bookings, and international ticket sales are running ahead of 2024.

Negatives

• Attendance decreased by 1.7% to 3.4 million guests.
• Total revenue decreased by 3.5% to $286.9 million.
• Net loss was $16.1 million.
• Adjusted EBITDA decreased by 14.8% to $67.4 million.
• Total revenue per capita decreased 1.8% to $84.62.
• Admission per capita decreased 4.2% to $46.04.

Risks

• The timing of Easter and Spring Break holidays negatively impacted the first quarter results.
• Certain timing related impacts resulted in over five million dollars more of certain expenses being recorded in the first quarter of 2025 compared to the first quarter of 2024.
• 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 the United States, and governmental actions.
• Failure to retain and/or hire employees.
• A decline in discretionary consumer spending or consumer confidence, including any unfavorable impacts from Federal Reserve interest rate actions and inflation which may influence discretionary spending, unemployment or the overall economy.
• The ability of Hill Path Capital LP and its affiliates to significantly influence the Company's decisions and their interests may conflict with ours or yours in the future.
• Increased labor costs, including minimum wage increases, and employee health and welfare benefit costs.
• Complex federal and state regulations governing the treatment of animals, which can change, and claims and lawsuits by activist groups before government regulators and in the courts.
• Activist and other third-party groups and/or media can pressure governmental agencies, vendors, partners, guests and/or regulators, bring action in the courts or create negative publicity about us.
• Incidents or adverse publicity concerning the Company's theme parks, the theme park industry and/or zoological facilities.
• A significant portion of the Company's revenues have historically been generated in the States of Florida, California and Virginia, and any risks affecting such markets, such as natural disasters, closures due to pandemics, severe weather and travel-related disruptions or incidents.
• Technology interruptions or failures that impair access to the Company's websites and/or information technology systems.
• Cyber security risks to us or the Company's third-party service providers, failure to maintain or protect the integrity of internal, employee or guest data, and/or failure to abide by the evolving cyber security regulatory environment.
• Inability to compete effectively in the highly competitive theme park industry.
• Interactions between animals and the Company's employees and the Company's guests at attractions at the Company's theme parks.
• Animal exposure to infectious disease.
• High fixed cost structure of theme park operations.
• Seasonal fluctuations in operating results.
• Changing consumer tastes and preferences.
• Inability to grow the Company's business or fund theme park capital expenditures.
• Inability to realize the benefits of developments, restructurings, acquisitions or other strategic initiatives, and the impact of the costs associated with such activities.
• The effects of public health events on the Company's business and the economy in general.
• Adverse litigation judgments or settlements.
• Inability to protect the Company's intellectual property or the infringement on intellectual property rights of others.
• The loss of licenses and permits required to exhibit animals or the violation of laws and regulations.
• Unionization activities and/or labor disputes.
• Inability to maintain certain commercial licenses.
• Restrictions in the Company's debt agreements limiting flexibility in operating the Company's business.
• Inability to retain the Company's current credit ratings.
• The Company's leverage and interest rate risk.
• Inadequate insurance coverage.
• Inability to purchase or contract with third party manufacturers for rides and attractions, construction delays or impacts of supply chain disruptions on existing or new rides and attractions.
• Environmental regulations, expenditures and liabilities.
• Suspension or termination of any of the Company's business licenses, including by legislation at federal, state or local levels.
• Delays, restrictions or inability to obtain or maintain permits.
• Inability to remediate an identified material weakness.
• Financial distress of strategic partners or other counterparties.
• Tariffs or other trade restrictions.
• Actions of activist stockholders.
• The policies of the U.S. President and his administration or any changes to tax laws.
• Changes or declines in the Company's stock price, as well as the risk that securities analysts could downgrade the Company's stock or the Company's sector.
• Risks associated with the Company's capital allocation plans and share repurchases, including the risk that the Company's share repurchase program could increase volatility and fail to enhance stockholder value.

Future Outlook

The company anticipates new records in revenue and Adjusted EBITDA in 2025, encouraged by 2025 bookings for Discovery Cove, group bookings, and international ticket sales running ahead of 2024.

Management Comments

• Results in the first quarter were negatively impacted by the timing of Easter and Spring Break holidays moving into the second quarter this year compared to being in the first quarter last year.
• Despite the negative calendar shift, in-park per capita spending increased 1.1% during the first quarter to a record level and has now grown for 19 of the last 20 quarters.
• As we look ahead to the remainder of the year, we are excited about the significant investments we have made across our parks and business, including the incredible line-up of new, one-of-a kind rides and attractions, popular events, improved in park venues and other offerings across our parks.
• We strongly believe we have a clear opportunity to drive substantially more attendance and total per capita spending and we have high confidence in our ability to continue to deliver operational and financial improvements that we expect will lead to meaningful increases in shareholder value.

Industry Context

The theme park industry is highly competitive and sensitive to economic conditions, consumer spending, and travel trends. United Parks & Resorts' results reflect the impact of calendar shifts and timing of holidays, which can significantly affect attendance and revenue. The company's focus on new attractions and in-park experiences aligns with industry trends to enhance guest engagement and drive per capita spending.

Comparison to Industry Standards

• Comparing United Parks & Resorts to competitors like Disney and Universal, it's important to consider their diverse revenue streams and global presence.
• Disney's theme park performance is often benchmarked against its media and entertainment divisions, while Universal benefits from its film and television studios.
• Cedar Fair and Six Flags are closer comparables in terms of regional theme park focus, but they may have different capital expenditure strategies and market positioning.
• United Parks & Resorts' focus on animal rescue and conservation efforts differentiates it from some competitors, but also subjects it to scrutiny from activist groups.
• The company's per capita spending metrics are crucial for evaluating its ability to monetize its guest base, and these should be compared against industry averages and competitor performance.

Stakeholder Impact

• Shareholders may be concerned about the decrease in revenue and EBITDA, but encouraged by the share repurchase program and future outlook.
• Employees are likely to be affected by any cost-saving initiatives or restructuring efforts.
• Customers can expect new rides, attractions, and events at the parks.
• Suppliers may see changes in demand based on the company's performance and capital expenditure plans.
• Creditors will monitor the company's ability to meet its debt obligations.

Next Steps

• The company will continue to focus on new rides, attractions, events, and in-park venues.
• Management expects to drive more attendance and per capita spending.
• The company will hold a conference call on May 12, 2025, to discuss the results.

Key Dates

Keywords

United Parks & Resorts, Theme Parks, Financial Results, Attendance, Revenue, EBITDA, Animal Rescue