United Parks & Resorts Inc 10-Q for FY2021 Q2

United Parks & Resorts Inc. (PRKS)

10-Q 2021-08-06 For: 2021-06-30

Added on April 07, 2026

About this 10-Q

United Parks & Resorts Inc filed this 10-Q on August 6, 2021, covering the quarter ended June 30, 2021 (FY2021 Q2).

Headline figures

Quarter ended June 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $439.78M; up 2339.7% from $18.03M a year earlier
Net income: $127.76M; compared with a net loss of $131.03M a year earlier
Diluted EPS: $1.59; compared with -$1.68 a year earlier

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Delaware		27-1220297
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
6240 Sea Harbor Drive Orlando, Florida		32821
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	SEAS	New York Stock Exchange

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐

Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

		Page No.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS		1

PART I.	FINANCIAL INFORMATION	3

Item 1.	Unaudited Condensed Consolidated Financial Statements	3

	Unaudited Condensed Consolidated Balance Sheets	3

	Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)	4

	Unaudited Condensed Consolidated Statements of Changes in Stockholders’ (Deficit) Equity	5

	Unaudited Condensed Consolidated Statements of Cash Flows	6

	Notes to Unaudited Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34

Item 4.	Controls and Procedures	35

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	36

Item 1A.	Risk Factors	36

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36

Item 3.	Defaults Upon Senior Securities	36

Item 4.	Mine Safety Disclosures	36

Item 5.	Other Information	36

Item 6.	Exhibits	37

	Signatures	38

	June 30,			December 31,
	2021			2020
Assets
Current assets:
Cash and cash equivalents	$	615,791		$	433,909
Accounts receivable, net		90,419			30,410
Inventories		25,111			30,700
Prepaid expenses and other current assets		20,241			12,418
Total current assets		751,562			507,437
Property and equipment, at cost		3,314,860			3,272,705
Accumulated depreciation		(1,676,366	)		(1,611,745	)
Property and equipment, net		1,638,494			1,660,960
Goodwill		66,278			66,278
Trade names/trademarks, net		157,000			157,000
Right of use assets-operating leases		133,909			136,572
Deferred tax assets, net		24,179			22,847
Other assets, net		15,298			15,264
Total assets	$	2,786,720		$	2,566,358
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable and accrued expenses	$	129,983		$	105,369
Current maturities of long-term debt		65,505			15,505
Operating lease liabilities		3,210			3,757
Accrued salaries, wages and benefits		19,245			10,781
Deferred revenue		238,694			130,759
Other accrued liabilities		51,243			50,950
Total current liabilities		507,880			317,121
Long-term debt, net		2,122,708			2,177,137
Long-term operating lease liabilities		118,251			120,144
Deferred tax liabilities, net		17,786			15,772
Other liabilities		41,409			41,987
Total liabilities		2,808,034			2,672,161
Commitments and contingencies (Note 9)
Stockholders’ Deficit:
Preferred stock, $0.01 par value—authorized, 100,000,000 shares, no shares issued or outstanding at June 30, 2021 and December 31, 2020		—			—
Common stock, $0.01 par value—authorized, 1,000,000,000 shares; 95,380,481 and 94,652,248 shares issued at June 30, 2021 and December 31, 2020, respectively		953			946
Additional paid-in capital		681,964			680,360
Accumulated deficit		(288,922	)		(371,800	)
Treasury stock, at cost (16,260,248 shares at June 30, 2021 and December 31, 2020)		(415,309	)		(415,309	)
Total stockholders’ deficit		(21,314	)		(105,803	)
Total liabilities and stockholders’ deficit	$	2,786,720		$	2,566,358


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the Three Months Ended					For the Six Months Ended
	June 30,					June 30,
	2021		2020			2021		2020
Net revenues:
Admissions	$	243,225	$	9,775		$	339,005	$	100,281
Food, merchandise and other		196,559		8,251			272,699		71,306
Total revenues		439,784		18,026			611,704		171,587
Costs and expenses:
Cost of food, merchandise and other revenues		34,173		1,153			49,115		14,257
Operating expenses (exclusive of depreciation and amortization shown separately below)		157,307		59,049			265,079		192,048
Selling, general and administrative expenses		43,190		21,104			74,654		48,058
Severance and other separation costs		1,496		9			1,582		74
Depreciation and amortization		36,247		37,941			72,805		75,954
Total costs and expenses		272,413		119,256			463,235		330,391
Operating income (loss)		167,371		(101,230	)		148,469		(158,804	)
Other expense (income), net		21		(1	)		195		(13	)
Interest expense		31,127		21,908			62,083		41,061
Income (loss) before income taxes		136,223		(123,137	)		86,191		(199,852	)
Provision for (benefit from) income taxes		8,461		7,892			3,313		(12,304	)
Net income (loss)	$	127,762	$	(131,029	)	$	82,878	$	(187,548	)
Other comprehensive income:
Unrealized gain on derivatives, net of tax		—		855			—		1,559
Comprehensive income (loss)	$	127,762	$	(130,174	)	$	82,878	$	(185,989	)
Earnings (loss) per share:
Earnings (loss) per share, basic	$	1.62	$	(1.68	)	$	1.05	$	(2.40	)
Earnings (loss) per share, diluted	$	1.59	$	(1.68	)	$	1.03	$	(2.40	)
Weighted average common shares outstanding:
Basic		78,986		78,093			78,724		78,153
Diluted		80,177		78,093			80,123		78,153

	Shares of Common Stock			Common Stock			Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive (Loss) Income		Treasury Stock, at Cost			Total Stockholders' Deficit
Balance at December 31, 2020		94,652,248		$	946		$	680,360		$	(371,800	)	$	—	$	(415,309	)	$	(105,803	)
Equity-based compensation		—			—			4,473			—			—		—			4,473
Vesting of restricted shares		130,834			1			(1	)		—			—		—			—
Shares withheld for tax withholdings		(41,271	)		—			(1,971	)		—			—		—			(1,971	)
Exercise of stock options		116,634			1			2,392			—			—		—			2,393
Net loss		—			—			—			(44,884	)		—		—			(44,884	)
Balance at March 31, 2021		94,858,445		$	948		$	685,253		$	(416,684	)	$	—	$	(415,309	)	$	(145,792	)
Equity-based compensation		—			—			5,634			—			—		—			5,634
Vesting of restricted shares		653,146			7			(7	)		—			—		—			—
Shares withheld for tax withholdings		(213,601	)		(3	)		(10,554	)		—			—		—			(10,557	)
Exercise of stock options		82,491			1			1,638			—			—		—			1,639
Net income		—			—			—			127,762			—		—			127,762
Balance at June 30, 2021		95,380,481		$	953		$	681,964		$	(288,922	)	$	—	$	(415,309	)	$	(21,314	)

	Shares of Common Stock Issued			Common Stock			Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive (Loss) Income			Treasury Stock, at Cost			Total Stockholders' Equity
Balance at December 31, 2019		94,044,203		$	940		$	673,893		$	(59,479	)	$	(1,559	)	$	(402,903	)	$	210,892
Equity-based compensation		—			—			(3,601	)		—			—			—			(3,601	)
Unrealized gain on derivatives, net of tax expense of $254		—			—			—			—			704			—			704
Vesting of restricted shares		410,807			4			(4	)		—			—			—			—
Shares withheld for tax withholdings		(121,089	)		(1	)		(3,159	)		—			—			—			(3,160	)
Exercise of stock options		11,096			—			203			—			—			—			203
Adjustments to previous dividend declarations		—			—			1			—			—			—			1
Repurchase of 469,785 shares of treasury stock, at cost		—			—			—			—			—			(12,406	)		(12,406	)
Net loss		—			—			—			(56,519	)		—			—			(56,519	)
Balance at March 31, 2020		94,345,017		$	943		$	667,333		$	(115,998	)	$	(855	)	$	(415,309	)	$	136,114
Equity-based compensation		—			—			3,320			—			—			—			3,320
Unrealized gain on derivatives, net of tax expense of $318		—			—			—			—			855			—			855
Vesting of restricted shares		71,530			1			(1	)		—			—			—			—
Shares withheld for tax withholdings		(8,987	)		—			(154	)		—			—			—			(154	)
Exercise of stock options		818			—			15			—			—			—			15
Net loss		—			—			—			(131,029	)		—			—			(131,029	)
Balance at June 30, 2020		94,408,378		$	944		$	670,513		$	(247,027	)	$	—		$	(415,309	)	$	9,121

	For the Six Months Ended June 30,
		2021		2020
Cash Flows From Operating Activities:
Net income (loss)	$	82,878		$	(187,548	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		72,805			75,954
Amortization of debt issuance costs and discounts		3,323			1,876
Deferred income tax provision (benefit)		682			(12,913	)
Equity-based compensation		10,107			(281	)
Other, including loss on sale or disposal of assets, net		2,112			322
Changes in assets and liabilities:
Accounts receivable		(75,345	)		26,349
Inventories		5,647			(2,655	)
Prepaid expenses and other current assets		(3,896	)		(5,294	)
Accounts payable and accrued expenses		20,361			24,624
Accrued salaries, wages and benefits		8,464			(7,929	)
Deferred revenue		121,815			36,234
Other accrued liabilities		845			(17,616	)
Right-of-use assets and operating lease liabilities		224			253
Other assets and liabilities		(1,944	)		298
Net cash provided by (used in) operating activities		248,078			(68,326	)
Cash Flows From Investing Activities:
Capital expenditures		(44,981	)		(53,699	)
Net cash used in investing activities		(44,981	)		(53,699	)
Cash Flows From Financing Activities:
Proceeds from issuance of senior secured notes, net		—			222,335
Repayments of long-term debt		(7,752	)		(7,752	)
Proceeds from draws on revolving credit facility		—			272,500
Repayments of revolving credit facility		—			(11,500	)
Purchase of treasury stock		—			(12,406	)
Payment of tax withholdings on equity-based compensation through shares withheld		(12,528	)		(3,314	)
Exercise of stock options		4,032			218
Debt issuance costs		—			(1,089	)
Other financing activities		(4,357	)		(719	)
Net cash (used in) provided by financing activities		(20,605	)		458,273
Change in Cash and Cash Equivalents, including Restricted Cash		182,492			336,248
Cash and Cash Equivalents, including Restricted Cash—Beginning of period		435,225			40,925
Cash and Cash Equivalents, including Restricted Cash—End of period	$	617,717		$	377,173
Supplemental Disclosure of Noncash Investing and Financing Activities:
Capital expenditures in accounts payable	$	18,737		$	48,550
Other financing arrangements	$	4,239		$	2,837

	For the Three Months Ended June 30,
	2021						2020
	Net Income		Shares		Per Share Amount		Net Loss			Shares		Per Share Amount
	(In thousands, except per share amounts)
Basic earnings (loss) per share	$	127,762		78,986	$	1.62	$	(131,029	)		78,093	$	(1.68	)
Effect of dilutive incentive-based awards				1,191							—
Diluted earnings (loss) per share	$	127,762		80,177	$	1.59	$	(131,029	)		78,093	$	(1.68	)

Years Ending December 31:	(In thousands)
Remainder of 2021	$	57,753
2022		15,505
2023		15,505
2024		1,445,863
2025		677,500
Total	$	2,212,126

	Three Months Ended June 30,			Six Months Ended June 30,
	2020			2020
Derivatives in Cash Flow Hedging Relationships:	(In thousands)
Loss recognized in accumulated other comprehensive (loss) income	$	(26	)	$	(370	)
Amounts reclassified from accumulated other comprehensive (loss) income to interest expense	$	1,199		$	2,501

	For the Three Months Ended
	June 30,					Variance
	2021		2020			#			%
Summary Financial Data:	(In thousands, except per capita data)
Net revenues:
Admissions	$	243,225	$	9,775		$	233,450		NM
Food, merchandise and other		196,559		8,251			188,308		NM
Total revenues		439,784		18,026			421,758		NM
Costs and expenses:
Cost of food, merchandise and other revenues		34,173		1,153			33,020		NM
Operating expenses (exclusive of depreciation and amortization shown separately below)		157,307		59,049			98,258			166.4	%
Selling, general and administrative expenses		43,190		21,104			22,086			104.7	%
Severance and other separation costs		1,496		9			1,487		NM
Depreciation and amortization		36,247		37,941			(1,694	)		(4.5	%)
Total costs and expenses		272,413		119,256			153,157			128.4	%
Operating income (loss)		167,371		(101,230	)		268,601		NM
Other expense (income), net		21		(1	)		22		NM
Interest expense		31,127		21,908			9,219			42.1	%
Income (loss) before income taxes		136,223		(123,137	)		259,360		NM
Provision for income taxes		8,461		7,892			569			7.2	%
Net income (loss)	$	127,762	$	(131,029	)	$	258,791		NM
Other data:
Attendance		5,809		272			5,537		NM
Total revenue per capita	$	75.71	$	66.27		$	9.44			14.2	%
Admission per capita	$	41.87	$	35.94		$	5.93			16.5	%
In-park per capita spending	$	33.84	$	30.33		$	3.51			11.6	%

	For the Three Months Ended June 30,					For the Six Months Ended June 30,					Last Twelve Months Ended June 30,
	2021		2020			2021		2020			2021
	(Unaudited, in thousands)
Net income (loss)	$	127,762	$	(131,029	)	$	82,878	$	(187,548	)	$	(41,895	)
Provision for (benefit from) income taxes		8,461		7,892			3,313		(12,304	)		(14,908	)
Interest expense		31,127		21,908			62,083		41,061			121,929
Depreciation and amortization		36,247		37,941			72,805		75,954			147,397
Equity-based compensation expense ^(a)		6,782		3,320			11,255		(281	)		19,003
Loss on impairment or disposal of assets and certain non-cash expenses^(b)		3,079		1,035			3,687		1,420			9,454
Business optimization, development and strategic initiative costs ^(c)		2,835		264			3,347		2,299			8,316
Certain investment costs and other taxes ^(d)		329		560			416		662			798
Other adjusting items^(e)		2,194		4,271			4,221		(5,954	)		5,416
Adjusted EBITDA ^(f)	$	218,816	$	(53,838	)	$	244,005	$	(84,691	)	$	255,510
Items added back to Adjusted EBITDA, after cost savings, as defined in the Amended Credit Agreement:
Estimated cost savings^(g)												7,100
Adjusted EBITDA, after cost savings ^(h)											$	262,610

Period Beginning	Period Ended	Total Number of Shares Purchased⁽¹⁾		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs⁽²⁾
April 1, 2021	April 30, 2021		188,679	$	49.14		—	$	237,594,184
May 1, 2021	May 31, 2021		10,351	$	50.47		—		237,594,184
June 1, 2021	June 30, 2021		14,571	$	52.30		—		237,594,184
			213,601				—	$	237,594,184

Exhibit No.		Description

10.1*†		Offer Letter of Employment, Agreed and Accepted the 24th day of June 2021, between SeaWorld Entertainment, Inc. and Tom Iven

31.1*		Certification of Periodic Report by Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002

31.2*		Certification of Periodic Report by Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002

32.1*		Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2*		Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS*		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH*		Inline XBRL Taxonomy Extension Schema Document.

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104		The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 has been formatted in Inline XBRL.

* †		Filed herewith. Identifies exhibits that consist of a management contract or compensatory plan or arrangement

		SEAWORLD ENTERTAINMENT, INC.
		(Registrant)


Date: August 6, 2021		By: /s/ Elizabeth C. Gulacsy
		Elizabeth C. Gulacsy
		Chief Financial Officer and Treasurer
		(Principal Financial Officer)


Date: August 6, 2021		By: /s/ Christopher C. Yarris
		Christopher C. Yarris
		Chief Accounting Officer
		(Principal Accounting Officer)

Date: August 6, 2021	Signature:	/s/ Marc G. Swanson
		Marc G. Swanson
		Chief Executive Officer
		(Principal Executive Officer)

Date: August 6, 2021	Signature:	/s/ Elizabeth C. Gulacsy
		Elizabeth C. Gulacsy
		Chief Financial Officer and Treasurer
		(Principal Financial Officer)