United Parks & Resorts (PRKS) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue was $1.73B, down 0.1% year-over-year, with net income of $227.5M, down 2.9%, and near record attendance and in-park per-capita spending despite severe weather impacts including multiple hurricanes.

• Attendance for the year was 21.5M, down 0.3%, with Q4 attendance at 4.9M, down 1.6%; weather-adjusted attendance would have increased 2% year-over-year.

• In-park per capita spending reached a record $36.46 for the year, up 2.0%, with growth in 18 of the last 19 quarters.

• Significant share repurchases, with 15% of shares (9.4M) bought back in 2024 for $482.9M, reflecting confidence in valuation and cash flow.

• High confidence in operational and financial improvements for 2025, supported by new attractions, events, and strategic initiatives.

Financial highlights

• Q4 2024 revenue: $384.4M, down 1.2% year-over-year; Q4 net income: $27.9M, down 30.3%; Q4 Adjusted EBITDA: $144.5M, down 4.0%.

• FY2024 Adjusted EBITDA: $700.2M, down 1.9%; diluted EPS: $3.79, up 4.4%; free cash flow: $248.4M, down 18.5%.

• Net cash provided by operating activities was $480.1M, down 4.9% year-over-year.

• In-park per-capita spending up 3.5% in Q4; admission per-capita down 1.9% due to promotional pricing.

• Total capital expenditures for 2024 were $248.4M, down 18.5% from 2023.

Outlook and guidance

• Expecting meaningful growth and new records in revenue and Adjusted EBITDA for 2025, assuming weather is not worse than 2024.

• 2025 booking trends are strong, with international sales up mid-single digits and group bookings up double digits.

• Management internal expectations for 2025 Adjusted EBITDA are significantly above Wall Street consensus.

• Significant investments planned for 2025 include new rides, attractions, and improved in-park offerings across multiple parks.