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Jun 30, 2020
United Parks & Resorts Q2 2020 Earnings Report
SeaWorld Entertainment, Inc. experienced significant declines in attendance and revenue due to COVID-19 related park closures, resulting in a net loss.
Key Takeaways
SeaWorld Entertainment, Inc. reported a sharp decline in financial performance for Q2 2020 due to the COVID-19 pandemic, with park closures significantly impacting attendance and revenue. The company reported total revenues of $18.0 million, a net loss of $131.0 million, and an Adjusted EBITDA loss of $53.8 million. The company focused on cost reduction, cash flow management, and balance sheet fortification during the quarter. Nine of the company's twelve parks have reopened with limitations as of August 10, 2020.
Attendance was 0.3 million guests, a 95.8% decrease compared to Q2 2019.
Total revenue was $18.0 million, a 95.6% decrease compared to Q2 2019.
Net loss was $131.0 million, a significant decline compared to a net income of $52.7 million in Q2 2019.
As of June 30, 2020, cash and cash equivalents were approximately $376 million.
United Parks & Resorts
United Parks & Resorts
United Parks & Resorts Revenue by Segment
Revenue by Segment
Admissions Revenue
CapyFin.comFood, Merchandise and Other Revenue
CapyFin.com Forward Guidance
The company did not provide specific financial guidance, but is encouraged by improving trends in reopened parks and growth in the pass base. The company has strengthened its balance sheet and liquidity position.
Positive Outlook
- Feedback from guests who have returned to the parks has been positive.
- The company is generating positive cash flow from reopened parks at reduced attendance levels.
- Improving trends are seen in parks as events and entertainment offerings are reintroduced.
- There is growth in the pass base led by open parks since the end of May.
- 2021 bookings at the Discovery Cove park are up significantly compared to 2020 bookings at the same time last year.
Challenges Ahead
- The future remains uncertain.
- Nine of the Company’s twelve parks have reopened with capacity limitations, reduced hours of operation and / or limited operating days.
- The Company’s second quarter financial results were significantly impacted by the global COVID-19 pandemic.
- Attendance since the parks reopened in June has been impacted by capacity limitations due to COVID-19 social distancing guidelines, fewer operating days per week versus the prior year, limited marketing spend and a limited events line-up.
- The Company does not currently plan to open its Aquatica waterpark near San Diego or its Water Country USA waterpark in Williamsburg this year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income