## United Parks & Resorts Rides Through Weather Challenges, Reports Steady Revenue Growth in Q3 2024
United Parks & Resorts Inc. (NYSE: PRKS), a global leader in theme park and entertainment, has unveiled its financial performance for the third quarter and first nine months of fiscal year 2024. Despite facing significant weather challenges, including three hurricanes that impacted park operations, the company demonstrated resilience, reporting steady revenue growth and record in-park spending across its properties.
For the third quarter ending September 30, 2024, United Parks & Resorts welcomed 7 million guests, a slight decrease of 1.4% compared to the same period last year. This dip in attendance was primarily attributed to park closures due to Hurricanes Debby, Helene, and Milton. However, the company’s revenue reached $545.9 million, a minor decrease of 0.4% year-over-year, highlighting the success of its revenue optimization strategies in mitigating the impact of reduced attendance.
Marc Swanson, Chief Executive Officer of United Parks & Resorts, emphasized the positive performance amidst the challenges: “Despite facing severe weather challenges, we saw strong guest engagement and spending, a testament to the strength of our brand and the experiences we deliver.” He noted that excluding the weather-related impacts, attendance would have seen an approximate 3% year-over-year growth.
While net income for the quarter was $119.7 million, down 3.1% compared to Q3 2023, Adjusted EBITDA stood at $258.4 million, a decrease of 3.0%. Swanson highlighted the company’s operational adjustments and commitment to delivering value to guests as contributing factors to these results despite the external pressures.
Looking at the broader picture, the first nine months of 2024 saw total revenue reaching $1.34 billion, a marginal increase of 0.2% compared to the same period in 2023. Net income for the period rose to $199.6 million, reflecting a 2.8% increase, with attendance at 16.7 million guests, demonstrating the enduring demand for the company’s offerings despite operational disruptions. Notably, the company witnessed a slight increase in total revenue per capita to $80.46, with in-park spending per capita climbing by 1.5% to a new record of $36.85.
Swanson expressed optimism about the company’s trajectory, stating, “We’re encouraged by strong demand indicators going into the final quarter and into 2025. Our innovative guest experiences, coupled with pricing initiatives, have consistently driven growth in revenue per capita.”
In addition to operational performance, United Parks & Resorts also demonstrated its commitment to shareholder value through strategic financial moves. During Q3, the company expanded its revolving credit facility from $390 million to $700 million, while simultaneously reducing the cost of funds by 50 basis points. This financial maneuver boosted total liquidity to $759 million as of September 30, further solidifying the company’s financial position and improving its net leverage ratio to 2.98x.
The company also implemented a robust share repurchase program, buying back 4.1 million shares during the quarter for a total of $211.7 million. This commitment to shareholder value was further emphasized by an additional 0.8 million shares repurchased between September 30 and November 6, amounting to approximately $37.7 million. “We are capitalizing on our strong cash flow to execute our share repurchase program, returning significant capital to shareholders,” Swanson commented.
Beyond financial achievements, United Parks & Resorts continues to prioritize guest experiences. The company successfully completed its Halloween events across its parks, with Howl-O-Scream experiencing record-breaking attendance, excluding the Tampa location impacted by Hurricane Milton. Recent weeks have seen a notable recovery in attendance, with an 8% year-over-year increase across parks, fueled by the popularity of Halloween attractions.
Looking ahead, the company is preparing to launch its renowned Christmas events across SeaWorld, Busch Gardens, and Sesame Place parks, promising festive activities, specialty food, and seasonal shopping for guests of all ages. Swanson expressed confidence that the 2024 Christmas season will set new attendance records: “Our holiday events are designed to bring unique experiences that resonate with our guests, building on the success of previous years.”
United Parks & Resorts remains committed to its long-standing dedication to wildlife conservation. In Q3, the company’s teams assisted 132 animals, adding to the over 41,000 animals rescued throughout its history. Operating as one of the largest marine animal rescue organizations globally, the company collaborates with state and federal agencies to provide support to wildlife in distress.
Further solidifying its commitment to future growth, United Parks & Resorts has unveiled an ambitious slate of new attractions and upgrades set for 2025, aimed at enhancing guest engagement and diversifying its offerings across its theme parks. Swanson highlighted the company’s focus on forward-looking investment: “With guest demand and bookings trending up for 2025, we are confident that these new attractions will provide unique, memorable experiences for our guests and continue to drive growth across our parks.”
As part of its long-term sustainability initiatives, United Parks & Resorts remains committed to reducing its environmental footprint. The company’s conservation programs aim to protect marine life and habitats, aligning with its values and mission to support ecological health and wildlife preservation. Swanson noted, “Our dedication to animal welfare and environmental stewardship is a defining part of our identity. We look forward to continuing this mission, not only through our rescue and conservation efforts but also in the sustainable practices we incorporate throughout our parks.”
With early indicators showing increased bookings, particularly in group reservations and premium pass sales, United Parks & Resorts is optimistic about continued growth into 2025. The company recently launched a premium pass program with enhanced benefits, reporting a 10% year-over-year increase in pass sales since the program’s rollout.
Swanson concluded, “We are well-positioned to take advantage of evolving market trends and growing demand. Our strategies around guest experience, revenue optimization, and cost efficiency set a strong foundation for long-term growth and shareholder value.”
