"SeaWorld Entertainment, Inc. is a theme park and entertainment company. It owns or licenses a portfolio of brands, including SeaWorld, Sea Rescue and Busch Gardens. It has a diversified portfolio of approximately 10 destination and regional theme parks that are located across the United States. Its theme parks feature a range of rides, shows and other attractions. The Company operates SeaWorld theme parks in Orlando, Florida; San Antonio, Texas, and San Diego, California, and Busch Gardens theme parks in Tampa, Florida, and Williamsburg, Virginia. The Company operates water park attractions in Orlando, Florida (Aquatica); San Diego, California (Aquatica); Tampa, Florida (Adventure Island), and Williamsburg, Virginia (Water Country USA). The Company also operates a reservations-only attraction offering interaction with marine animals (Discovery Cove) and a seasonal park in Langhorne, Pennsylvania (Sesame Place)."
- The company has updated its Adjusted EBITDA guidance for 2016 to be in the range of $310 million to $340 million, see "Guidance" section which follows for a further discussion.
- Second quarter attendance was down 494,000 guests due to a decline in attendance at the company's Florida park locations along with a shift in the timing of holidays in 2016, which impacted nearly all of its park locations. Outside of the calendar shifts, Florida attendance decreased primarily due to a decline in Latin American attendance, softness in the Orlando market, and the adverse impact of Tropical Storm Colin.
- Results for the first half of 2016 provide a more meaningful comparison to the prior year period due to the calendar shift in the second quarter. First half attendance was down by approximately 411,000 guests, primarily from a decrease in Florida. Excluding Florida, total attendance at all other park locations increased by 67,000 in the first half of 2016.
- Revenue trends in California and Texas for the first half of 2016 continue to show improvement over the prior year.
- Selling, general and administrative ("SG&A") expenses increased by $15.0 million in the first half of 2016, which included an increase in non-cash equity compensation expense. Excluding this non-cash expense, SG&A expenses decreased by $4.3 million.
- July monthly total attendance was up 4% year-over-year on a comparable basis. This includes an increase in Florida attendance, where two new attractions, Mako and Cobra's Curse, opened in mid-June.
- Leverage now at 5.3X EBITDA, which makes for a volatile situation
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