United Parks & Resorts (PRKS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $497.6 million, up 0.3% year-over-year, with net income rising 4.7% to $91.1 million and attendance increasing 0.8% to 6.19 million guests.

• In-park per capita spending set a record, offsetting declines in admission per capita; total revenue per capita was $80.44, down 0.4%.

• Share repurchases since March totaled 6.3 million shares for $329.5 million, with $500 million authorization in place.

• Booking trends at Discovery Cove and group bookings are running ahead of 2023; international visitation up year-over-year but still below 2019.

• Special events, new attractions, and cost savings initiatives are expected to drive further demand and performance in the second half of 2024.

Financial highlights

• Net income for Q2 was $91.1 million, up from $87.1 million in Q2 2023; diluted EPS increased to $1.46.

• Adjusted EBITDA for Q2 was $218.2 million, down 2.7% year-over-year due to timing and non-recurring expenses.

• First half 2024 revenue reached a record $795 million, up 0.7% year-over-year; net income was $79.9 million, up 13.2%.

• Operating income for Q2 was $164.4 million, up 5.8% year-over-year; six-month operating income was $186.5 million, up 11.6%.

• Deferred revenue at June 30 was $230.5 million, up 3.5% year-over-year.

Outlook and guidance

• Management expects to deliver new records in revenue and Adjusted EBITDA for full year 2024.

• High confidence in operational and financial improvements to drive meaningful increases in revenue, Adjusted EBITDA, and shareholder value.

• Pass base expected to strengthen with launch of enhanced 2025 pass benefits program.

• Management expects existing cash, cash flow from operations, and available borrowings to be adequate for capital expenditures, debt service, and working capital for at least the next 12 months.

• Strong booking trends at Discovery Cove and group bookings running ahead of 2023; international visitation up year-over-year but still below 2019 levels.