United Parks & Resorts Inc 10-Q for FY2024 Q2

United Parks & Resorts Inc. (PRKS)

10-Q 2024-08-08 For: 2024-06-30

Added on April 07, 2026

About this 10-Q

United Parks & Resorts Inc filed this 10-Q on August 8, 2024, covering the quarter ended June 30, 2024 (FY2024 Q2).

Headline figures

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

Revenue: $497.59M; up 0.3% from $496.03M a year earlier
Net income: $91.12M; up 4.7% from net income of $87.06M a year earlier
Diluted EPS: $1.46; up 8.1% from $1.35 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 Operations	6

	Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Deficit	7

	Unaudited Condensed Consolidated Statements of Cash Flows	8

	Notes to Unaudited Condensed Consolidated Financial Statements	9

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

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32

Item 4.	Controls and Procedures	33

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	34

Item 1A.	Risk Factors	34

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34

Item 3.	Defaults Upon Senior Securities	34

Item 4.	Mine Safety Disclosures	35

Item 5.	Other Information	35

Item 6.	Exhibits	35
	Signatures	36


	June 30,			December 31,
	2024			2023
Assets
Current assets:
Cash and cash equivalents	$	232,052		$	246,922
Accounts receivable, net		100,822			73,845
Inventories		52,533			49,236
Prepaid expenses and other current assets		45,280			20,179
Total current assets		430,687			390,182
Property and equipment, at cost		3,925,992			3,814,799
Accumulated depreciation		(2,011,094	)		(1,972,861	)
Property and equipment, net		1,914,898			1,841,938
Goodwill		66,278			66,278
Trade names/trademarks, net		157,849			157,771
Right of use assets-operating leases		131,238			127,379
Deferred tax assets, net		14,716			8,019
Other assets, net		41,279			33,479
Total assets	$	2,756,945		$	2,625,046
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable and accrued expenses	$	183,978		$	160,611
Current maturities of long-term debt		15,540			12,000
Operating lease liabilities		3,750			3,380
Accrued salaries, wages and benefits		22,776			21,204
Deferred revenue		230,496			155,614
Other accrued liabilities		66,804			58,106
Total current liabilities		523,344			410,915
Long-term debt, net		2,239,846			2,093,190
Long-term operating lease liabilities		116,485			112,724
Deferred tax liabilities, net		188,082			164,949
Other liabilities		54,128			51,484
Total liabilities		3,121,885			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 June 30, 2024 and December 31, 2023		—			—
Common stock, $0.01 par value—authorized, 1,000,000,000 shares; 97,031,598 and 96,660,357 shares issued at June 30, 2024 and December 31, 2023, respectively		970			967
Additional paid-in capital		722,347			723,260
Retained earnings		490,022			410,099
Treasury stock, at cost (37,170,399 and 32,690,289 shares at June 30, 2024 and December 31, 2023, respectively)		(1,578,279	)		(1,342,542	)
Total stockholders’ deficit		(364,940	)		(208,216	)
Total liabilities and stockholders’ deficit	$	2,756,945		$	2,625,046


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2024			2023			2024		2023
Net revenues:
Admissions	$	264,003		$	269,894		$	429,812	$	433,757
Food, merchandise and other		233,590			226,135			365,204		355,618
Total revenues		497,593			496,029			795,016		789,375
Costs and expenses:
Cost of food, merchandise and other revenues		38,645			38,210			61,692		61,431
Operating expenses (exclusive of depreciation and amortization shown separately below)		190,199			195,728			355,082		368,402
Selling, general and administrative expenses		63,788			68,166			111,665		116,447
Severance and other separation costs		296			656			589		660
Depreciation and amortization		40,281			37,831			79,463		75,225
Total costs and expenses		333,209			340,591			608,491		622,165
Operating income		164,384			155,438			186,525		167,210
Other (income) expense, net		(147	)		(5	)		33		41
Interest expense		39,386			36,954			78,163		73,355
Loss on early extinguishment of debt and write-off of debt issuance costs and discounts		2,452			—			2,452		—
Income before income taxes		122,693			118,489			105,877		93,814
Provision for income taxes		31,569			31,434			25,954		23,226
Net income	$	91,124		$	87,055		$	79,923	$	70,588
Earnings per share:
Earnings per share, basic	$	1.47		$	1.36		$	1.27	$	1.10
Earnings per share, diluted	$	1.46		$	1.35		$	1.26	$	1.09
Weighted average common shares outstanding:
Basic		61,890			63,932			62,953		63,955
Diluted		62,268			64,352			63,488		64,479


	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	)


	For the Six Months Ended June 30,
		2024		2023
Cash Flows From Operating Activities:
Net income	$	79,923		$	70,588
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		79,463			75,225
Amortization of debt issuance costs and discounts		2,707			3,078
Loss on early extinguishment and modification of debt and write-off of debt issuance costs and discounts		3,406			—
Deferred income tax provision		16,436			17,397
Equity-based compensation		6,368			8,207
Other, including loss on sale or disposal of assets, net		7,893			13,425
Changes in assets and liabilities:
Accounts receivable		(36,059	)		(22,415	)
Inventories		(3,483	)		(4,881	)
Prepaid expenses and other current assets		(24,588	)		(5,372	)
Accounts payable and accrued expenses		28,212			13,925
Accrued salaries, wages and benefits		1,572			2,375
Deferred revenue		83,254			58,256
Other accrued liabilities		953			12,562
Right-of-use assets and operating lease liabilities		272			197
Other assets and liabilities		(1,656	)		(7,666	)
Net cash provided by operating activities		244,673			234,901
Cash Flows From Investing Activities:
Capital expenditures		(166,814	)		(145,587	)
Other investing activities, net		(78	)		—
Net cash used in investing activities		(166,892	)		(145,587	)
Cash Flows From Financing Activities:
Repayments of long-term debt		(234,317	)		(6,000	)
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		(228,890	)		(13,947	)
Payment of tax withholdings on equity-based compensation through shares withheld		(8,397	)		(6,340	)
Exercise of stock options		1,119			1,644
Debt issuance costs		(895	)		—
Other financing activities		(566	)		(245	)
Net cash used in financing activities		(92,651	)		(24,888	)
Change in Cash and Cash Equivalents, including Restricted Cash		(14,870	)		64,426
Cash and Cash Equivalents, including Restricted Cash—Beginning of period		246,922			82,320
Cash and Cash Equivalents, including Restricted Cash—End of period	$	232,052		$	146,746
Supplemental Disclosure of Noncash Investing and Financing Activities:
Capital expenditures in accounts payable	$	45,727		$	53,080
Right-of-use assets obtained in exchange for financing lease obligations	$	—		$	1,770
Treasury stock purchases not yet settled in other accrued liabilities	$	4,706		$	—


	For the Three Months Ended June 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	$	91,124		61,890	$	1.47	$	87,055		63,932	$	1.36
Effect of dilutive incentive-based awards				378						420
Diluted earnings per share	$	91,124		62,268	$	1.46	$	87,055		64,352	$	1.35


Years Ending December 31:	(In thousands)
Remainder of 2024	$	7,770
2025		15,540
2026		15,540
2027		15,540
2028		1,491,793
2029		725,000
Total	$	2,271,183


	For the Three Months Ended
	June 30,						Variance
	2024			2023			#			%
Summary Financial Data:	(In thousands, except per capita data)
Net revenues:
Admissions	$	264,003		$	269,894		$	(5,891	)		(2.2	%)
Food, merchandise and other		233,590			226,135			7,455			3.3	%
Total revenues		497,593			496,029			1,564			0.3	%
Costs and expenses:
Cost of food, merchandise and other revenues		38,645			38,210			435			1.1	%
Operating expenses (exclusive of depreciation and amortization shown separately below)		190,199			195,728			(5,529	)		(2.8	%)
Selling, general and administrative expenses		63,788			68,166			(4,378	)		(6.4	%)
Severance and other separation costs		296			656			(360	)		(54.9	%)
Depreciation and amortization		40,281			37,831			2,450			6.5	%
Total costs and expenses		333,209			340,591			(7,382	)		(2.2	%)
Operating income		164,384			155,438			8,946			5.8	%
Other income, net		(147	)		(5	)		(142	)	NM
Interest expense		39,386			36,954			2,432			6.6	%
Loss on early extinguishment of debt and write-off of debt issuance costs and discounts		2,452			—			2,452		NM
Income before income taxes		122,693			118,489			4,204			3.5	%
Provision for income taxes		31,569			31,434			135			0.4	%
Net income	$	91,124		$	87,055		$	4,069			4.7	%
Other data:
Attendance		6,186			6,139			47			0.8	%
Total revenue per capita	$	80.44		$	80.80		$	(0.36	)		(0.4	%)
Admission per capita	$	42.68		$	43.96		$	(1.28	)		(2.9	%)
In-park per capita spending	$	37.76		$	36.84		$	0.92			2.5	%


	For the Three Months Ended June 30,				For the Six Months Ended June 30,				Last Twelve Months Ended June 30,
	2024		2023		2024		2023		2024
	(Unaudited, in thousands)
Net income	$	91,124	$	87,055	$	79,923	$	70,588	$	243,531
Provision for income taxes		31,569		31,434		25,954		23,226		81,639
Interest expense		39,386		36,954		78,163		73,355		151,474
Loss on early extinguishment of debt and write-off of debt issuance costs and discounts (a)		2,452		—		2,452		—		2,452
Depreciation and amortization		40,281		37,831		79,463		75,225		158,446
Equity-based compensation expense (b)		2,979		3,866		7,270		9,071		16,160
Loss on impairment or disposal of assets and certain non-cash expenses (c)		2,279		10,595		7,883		14,262		25,257
Business optimization, development and strategic initiative costs (d)		4,120		12,104		7,654		21,529		20,028
Certain investment costs and other taxes (e)		1,019		114		4,139		162		5,688
COVID-19 related incremental costs (f)		1,355		4,085		1,861		7,668		3,269
Other adjusting items (g)		1,589		209		2,545		1,573		6,195
Adjusted EBITDA (h)	$	218,153	$	224,247	$	297,307	$	296,659	$	714,139
Items added back to Covenant Adjusted EBITDA as defined in the Debt Agreements:
Estimated cost savings (i)										18,000
Other adjustments as defined in the Debt Agreements (j)										7,567
Covenant Adjusted EBITDA (k)									$	739,706


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)
April 1, 2024	April 30, 2024		1,230,327	$	53.62		1,223,237	$	452,749,665
May 1, 2024	May 31, 2024		1,505,676	$	51.19		1,495,164		376,234,279
June 1, 2024	June 30, 2024		1,386,753	$	51.43		1,386,709		304,914,364
			4,122,756				4,105,110	$	304,914,364


Exhibit No.		Description


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 June 30, 2024, formatted in Inline XBRL


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


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


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