United Parks & Resorts (PRKS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $545.9 million, down 0.4% year-over-year, with net income of $119.7 million, a 3.1% decrease, mainly due to adverse weather and calendar shifts reducing attendance by 1.4% to 7.03 million.

• In-park per capita spending set a record for Q3 and the nine-month period, with 17 of the last 18 quarters showing growth; total revenue per capita for Q3 was $77.66, up 1.0%.

• Share repurchases totaled 4.9 million shares since June (over 8% of shares outstanding), with 9.4 million shares repurchased year-to-date (15% of shares outstanding); $211.7 million spent in Q3 and $37.7 million post-quarter.

• October attendance rebounded post-Hurricane Milton, up 8% day-to-day through early November.

• 2025 demand indicators are strong, with double-digit increases in intended date ticket sales, group bookings, Discovery Cove bookings, and Premium Pass sales.

Financial highlights

• Q3 diluted EPS was $2.08, up 8.3% year-over-year; nine-month diluted EPS was $3.24, up 7.6%.

• Q3 net cash from operations was $123.0 million, down 24.8%; nine-month net cash from operations was $367.7 million, down 7.7%.

• Free cash flow for Q3 was $67.6 million, down from $74.9 million; nine-month free cash flow was $164.2 million, down from $183.0 million.

• Capital expenditures for the nine months were $222.2 million, focused on core maintenance and expansion projects.

• Adjusted EBITDA for Q3 was $258.4 million, down 3.0% year-over-year; for the last twelve months, $706.2 million.

Outlook and guidance

• No longer expect record revenue or Adjusted EBITDA for 2024 due to weather, but anticipate a return to record performance in 2025, assuming normalized weather.

• Double-digit growth in 2025 demand indicators and strong Premium Pass sales support a positive outlook.

• Continued focus on cost savings, with $6 million more to realize in Q4 and $20 million in new initiatives planned for 2025.

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

• New rides, attractions, and upgrades are planned for 2025, including immersive and indoor experiences.