United Parks & Resorts Inc 10-Q for FY2024 Q3

United Parks & Resorts Inc. (PRKS)

10-Q 2024-11-08 For: 2024-09-30

Added on April 07, 2026

About this 10-Q

United Parks & Resorts Inc filed this 10-Q on November 8, 2024, covering the quarter ended September 30, 2024 (FY2024 Q3).

Headline figures

Quarter ended September 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $545.9M; down 0.4% from $548.25M a year earlier
Net income: $119.68M; down 3.1% from net income of $123.56M a year earlier
Diluted EPS: $2.08; up 8.3% from $1.92 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	PRKS	New York Stock Exchange


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


		Page No.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS		2

PART I.	FINANCIAL INFORMATION	5

Item 1.	Unaudited Condensed Consolidated Financial Statements	5

	Unaudited Condensed Consolidated Balance Sheets	5

	Unaudited Condensed Consolidated Statements of Income	6

	Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Deficit	7

	Unaudited Condensed Consolidated Statements of Cash Flows	9

	Notes to Unaudited Condensed Consolidated Financial Statements	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31

Item 4.	Controls and Procedures	32

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	33

Item 1A.	Risk Factors	33

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 3.	Defaults Upon Senior Securities	33

Item 4.	Mine Safety Disclosures	34

Item 5.	Other Information	34

Item 6.	Exhibits	34
	Signatures	35


	September 30,			December 31,
	2024			2023
Assets
Current assets:
Cash and cash equivalents	$	76,835		$	246,922
Accounts receivable, net		86,633			73,845
Inventories		50,900			49,236
Prepaid expenses and other current assets		41,751			20,179
Total current assets		256,119			390,182
Property and equipment, at cost		3,945,234			3,814,799
Accumulated depreciation		(2,041,227	)		(1,972,861	)
Property and equipment, net		1,904,007			1,841,938
Goodwill		66,278			66,278
Trade names/trademarks, net		157,846			157,771
Right of use assets-operating leases		130,937			127,379
Deferred tax assets, net		15,864			8,019
Other assets, net		48,588			33,479
Total assets	$	2,579,639		$	2,625,046
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable and accrued expenses	$	144,390		$	160,611
Current maturities of long-term debt		15,540			12,000
Operating lease liabilities		3,983			3,380
Accrued salaries, wages and benefits		16,894			21,204
Deferred revenue		155,724			155,614
Other accrued liabilities		61,873			58,106
Total current liabilities		398,404			410,915
Long-term debt, net		2,234,839			2,093,190
Long-term operating lease liabilities		116,130			112,724
Deferred tax liabilities, net		226,149			164,949
Other liabilities		59,975			51,484
Total liabilities		3,035,497			2,833,262
Commitments and contingencies (Note 8)
Stockholders’ Deficit:
Preferred stock, $0.01 par value—authorized, 100,000,000 shares, no shares issued or outstanding at September 30, 2024 and December 31, 2023		—			—
Common stock, $0.01 par value—authorized, 1,000,000,000 shares; 97,058,799 and 96,660,357 shares issued at September 30, 2024 and December 31, 2023, respectively		971			967
Additional paid-in capital		725,523			723,260
Retained earnings		609,699			410,099
Treasury stock, at cost (41,298,407 and 32,690,289 shares at September 30, 2024 and December 31, 2023, respectively)		(1,792,051	)		(1,342,542	)
Total stockholders’ deficit		(455,858	)		(208,216	)
Total liabilities and stockholders’ deficit	$	2,579,639		$	2,625,046


	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024		2023
Net revenues:
Admissions	$	296,954		$	299,785		$	726,766	$	733,542
Food, merchandise and other		248,947			248,462			614,151		604,080
Total revenues		545,901			548,247			1,340,917		1,337,622
Costs and expenses:
Cost of food, merchandise and other revenues		40,629			40,431			102,321		101,862
Operating expenses (exclusive of depreciation and amortization shown separately below)		207,336			205,808			562,418		574,210
Selling, general and administrative expenses		55,361			59,705			167,026		176,152
Severance and other separation costs		(12	)		(139	)		577		521
Depreciation and amortization		41,577			39,171			121,040		114,396
Total costs and expenses		344,891			344,976			953,382		967,141
Operating income		201,010			203,271			387,535		370,481
Other expense (income), net		54			(21	)		87		20
Interest expense		39,682			37,052			117,845		110,407
Loss on early extinguishment of debt and write-off of debt issuance costs and discounts		—			—			2,452		—
Income before income taxes		161,274			166,240			267,151		260,054
Provision for income taxes		41,597			42,685			67,551		65,911
Net income	$	119,677		$	123,555		$	199,600	$	194,143
Earnings per share:
Earnings per share, basic	$	2.09		$	1.93		$	3.27	$	3.04
Earnings per share, diluted	$	2.08		$	1.92		$	3.24	$	3.01
Weighted average common shares outstanding:
Basic		57,292			63,954			61,052		63,955
Diluted		57,663			64,319			61,532		64,425


	Shares of Common Stock Issued			Common Stock			Additional Paid-In Capital			Retained Earnings			Treasury Stock, at Cost			Total Stockholders' Deficit
Balance at December 31, 2023		96,660,357		$	967		$	723,260		$	410,099		$	(1,342,542	)	$	(208,216	)
Equity-based compensation		—			—			3,520			—			—			3,520
Vesting of restricted shares		425,904			4			(4	)		—			—			—
Shares withheld for tax withholdings		(142,136	)		(1	)		(7,459	)		—			—			(7,460	)
Exercise of stock options		17,611			—			455			—			—			455
Repurchase of 375,000 shares of treasury stock, at cost		—			—			—			—			(20,162	)		(20,162	)
Net loss		—			—			—			(11,201	)		—			(11,201	)
Balance at March 31, 2024		96,961,736			970			719,772			398,898			(1,362,704	)		(243,064	)
Equity-based compensation		—			—			2,848			—			—			2,848
Vesting of restricted shares		69,257			1			(1	)		—			—			—
Shares withheld for tax withholdings		(17,627	)		(1	)		(936	)		—			—			(937	)
Exercise of stock options		18,232			—			664			—			—			664
Repurchase of 4,105,110 shares of treasury stock, at cost		—			—			—			—			(215,575	)		(215,575	)
Net income		—			—			—			91,124			—			91,124
Balance at June 30, 2024		97,031,598		$	970		$	722,347		$	490,022		$	(1,578,279	)	$	(364,940	)
Equity-based compensation		—			—			3,190			—			—			3,190
Vesting of restricted shares		23,565			—			—			—			—			—
Shares withheld for tax withholdings		(5,140	)		—			(245	)		—			—			(245	)
Exercise of stock options		8,776			1			231			—			—			232
Repurchase of 4,128,008 shares of treasury stock, at cost		—			—			—			—			(213,772	)		(213,772	)
Net income		—			—			—			119,677			—			119,677
Balance at September 30, 2024		97,058,799		$	971		$	725,523		$	609,699		$	(1,792,051	)	$	(455,858	)


	For the Nine Months Ended September 30,
	2024			2023
Cash Flows From Operating Activities:
Net income	$	199,600		$	194,143
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		121,040			114,396
Amortization of debt issuance costs and discounts		3,826			4,608
Loss on early extinguishment and modification of debt and write-off of debt issuance costs and discounts		3,406			—
Deferred income tax provision		53,354			62,139
Equity-based compensation		9,558			12,809
Other, including loss on sale or disposal of assets, net		12,463			22,236
Changes in assets and liabilities:
Accounts receivable		(20,943	)		(13,181	)
Inventories		(1,614	)		413
Prepaid expenses and other current assets		(20,578	)		3,699
Accounts payable and accrued expenses		7,872			(6,823	)
Accrued salaries, wages and benefits		(4,310	)		6,989
Deferred revenue		7,951			(4,383	)
Other accrued liabilities		(1,708	)		9,095
Right-of-use assets and operating lease liabilities		451			329
Other assets and liabilities		(2,697	)		(8,012	)
Net cash provided by operating activities		367,671			398,457
Cash Flows From Investing Activities:
Capital expenditures		(222,207	)		(234,218	)
Other investing activities, net		(75	)		—
Net cash used in investing activities		(222,282	)		(234,218	)
Cash Flows From Financing Activities:
Repayments of long-term debt		(238,202	)		(9,000	)
Proceeds from the issuance of debt, net		379,295			—
Proceeds from draws on revolving credit facility		—			20,000
Repayments of revolving credit facility		—			(20,000	)
Purchase of treasury stock		(445,265	)		(17,861	)
Payment of tax withholdings on equity-based compensation through shares withheld		(8,642	)		(6,561	)
Exercise of stock options		1,351			2,738
Debt issuance costs		(3,136	)		—
Other financing activities		(877	)		(649	)
Net cash used in financing activities		(315,476	)		(31,333	)
Change in Cash and Cash Equivalents, including Restricted Cash		(170,087	)		132,906
Cash and Cash Equivalents, including Restricted Cash—Beginning of period		246,922			82,320
Cash and Cash Equivalents, including Restricted Cash—End of period	$	76,835		$	215,226
Supplemental Information:
Capital expenditures in accounts payable	$	26,576		$	34,466
Right-of-use assets obtained in exchange for financing lease obligations	$	1,553		$	2,900
Cash paid for income taxes, net	$	11,127		$	4,351


	For the Three Months Ended September 30,
	2024						2023
	Net Income		Shares		Per Share Amount		Net Income		Shares		Per Share Amount
	(In thousands, except per share amounts)
Basic earnings per share	$	119,677		57,292	$	2.09	$	123,555		63,954	$	1.93
Effect of dilutive incentive-based awards				371						365
Diluted earnings per share	$	119,677		57,663	$	2.08	$	123,555		64,319	$	1.92


Years Ending December 31:	(In thousands)
Remainder of 2024	$	3,885
2025		15,540
2026		15,540
2027		15,540
2028		1,491,793
2029		725,000
Total	$	2,267,298


	For the Three Months Ended
	September 30,						Variance
	2024			2023			#			%
Summary Financial Data:	(In thousands, except per capita data)
Net revenues:
Admissions	$	296,954		$	299,785		$	(2,831	)		(0.9	%)
Food, merchandise and other		248,947			248,462			485			0.2	%
Total revenues		545,901			548,247			(2,346	)		(0.4	%)
Costs and expenses:
Cost of food, merchandise and other revenues		40,629			40,431			198			0.5	%
Operating expenses (exclusive of depreciation and amortization shown separately below)		207,336			205,808			1,528			0.7	%
Selling, general and administrative expenses		55,361			59,705			(4,344	)		(7.3	%)
Severance and other separation costs		(12	)		(139	)		127			91.4	%
Depreciation and amortization		41,577			39,171			2,406			6.1	%
Total costs and expenses		344,891			344,976			(85	)		(0.0	%)
Operating income		201,010			203,271			(2,261	)		(1.1	%)
Other expense (income), net		54			(21	)		75		NM
Interest expense		39,682			37,052			2,630			7.1	%
Income before income taxes		161,274			166,240			(4,966	)		(3.0	%)
Provision for income taxes		41,597			42,685			(1,088	)		(2.5	%)
Net income	$	119,677		$	123,555		$	(3,878	)		(3.1	%)
Other data:
Attendance		7,029			7,129			(100	)		(1.4	%)
Total revenue per capita	$	77.66		$	76.90		$	0.76			1.0	%
Admission per capita	$	42.24		$	42.05		$	0.19			0.5	%
In-park per capita spending	$	35.42		$	34.85		$	0.57			1.6	%


	For the Three Months Ended September 30,					For the Nine Months Ended September 30,				Last Twelve Months Ended September 30,
	2024			2023		2024		2023		2024
	(Unaudited, in thousands)
Net income	$	119,677		$	123,555	$	199,600	$	194,143	$	239,653
Provision for income taxes		41,597			42,685		67,551		65,911		80,551
Interest expense		39,682			37,052		117,845		110,407		154,104
Loss on early extinguishment of debt and write-off of debt issuance costs and discounts (a)		—			—		2,452		—		2,452
Depreciation and amortization		41,577			39,171		121,040		114,396		160,852
Equity-based compensation expense (b)		3,208			4,644		10,478		13,715		14,724
Loss on impairment or disposal of assets and certain non-cash expenses (c)		4,850			8,723		12,733		22,985		21,384
Business optimization, development and strategic initiative costs (d)		5,655			6,662		13,309		28,191		19,021
Certain investment costs and other taxes (e)		(564	)		1,147		3,575		1,309		3,977
COVID-19 related incremental costs (f)		662			1,092		2,523		8,760		2,839
Other adjusting items (g)		2,069			1,666		4,614		3,239		6,598
Adjusted EBITDA (h)	$	258,413		$	266,397	$	555,720	$	563,056	$	706,155
Items added back to Covenant Adjusted EBITDA as defined in the Debt Agreements:
Estimated cost savings (i)											20,700
Other adjustments as defined in the Debt Agreements (j)											7,864
Covenant Adjusted EBITDA (k)										$	734,719


Period Beginning	Period Ended	Total Number of Shares Purchased(1)(2)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)		Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs(2)
July 1, 2024	July 31, 2024		1,608,920	$	55.41		1,608,920	$	215,764,550
August 1, 2024	August 31, 2024		2,039,259	$	47.89		2,034,134		118,348,995
September 1, 2024	September 30, 2024		484,969	$	51.76		484,954		93,246,099
			4,133,148				4,128,008	$	93,246,099


Exhibit No.		Description


10.1		Amendment No. 4, dated as of August 23, 2024, to the Amended and Restated Credit Agreement, dated as of August 25, 2021, by and among SeaWorld Parks & Entertainment, Inc., United Parks & Resorts Inc., the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent and as Collateral Agent (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed August 26, 2024 (File No. 001-35883)).

10.2*†		Amended and Restated Outside Director Compensation Policy, effective January 1, 2024.

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*		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 September 30, 2024, formatted in Inline XBRL


		UNITED PARKS & RESORTS INC.
		(Registrant)
Date: November 8, 2024		By: /s/ James W. Forrester, Jr.
		James W. Forrester, Jr.
		Interim Chief Financial Officer and Treasurer
		(Principal Financial Officer)


Committee	Annual Committee Chairperson Fee*
Audit Committee		$35,000
Compensation Committee		$30,000
Nominating and Corporate Governance		$30,000
Revenue Committee		$30,000
Special/Ad Hoc Committee		$35,000**


Committee	Annual Committee Member Fee*
Audit Committee		$25,000
Compensation Committee		$20,000
Nominating and Corporate Governance		$20,000
Revenue Committee		$20,000
Special/Ad Hoc Committee		$25,000**


Date: November 8, 2024		By: /s/ Bill Myers
		Bill Myers
		Chief Accounting Officer
		(Principal Accounting Officer)


Date: November 8, 2024	Signature:	/s/ Marc G. Swanson
		Marc G. Swanson
		Chief Executive Officer
		(Principal Executive Officer)


Date: November 8, 2024	Signature:	/s/ James W. Forrester, Jr.
		James W. Forrester, Jr.
		Interim Chief Financial Officer and Treasurer
		(Principal Financial Officer)