SeaWorld Entertainment's Q3 Revenue Faces Heat From Adverse Weather

SeaWorld Entertainment Inc SEAS reported a third-quarter FY23 sales decline of 3% year-on-year to $548.2 million, missing the analyst consensus estimate of $549.37 million.

Attendance was 7.1 million guests, a decrease of 0.2 million guests from last year. 

The decrease in attendance was primarily due to significantly adverse weather, including some combination of unusual heat and/or rain, across most of the markets, including during peak visitation periods.

Revenue per capita decreased 0.2% Y/Y to $76.90, and in-park per capita spending rose 1.6% to $34.85.

In-park spending improved primarily due to pricing initiatives, partially offset by factors including weather, the admissions product mix, closures and disruption related to construction delays at certain park locations.

Total costs and expenses fell 0.7% Y/Y to $344.976 million. The operating margin was 37.1%, and operating income for the quarter was $203.3 million.

Adjusted EBITDA of $266.4 million decreased 2.8% Y/Y.

EPS of $1.92 beat the analyst consensus estimate of $1.89.

The company held $215.2 million in cash and equivalents as of June 30, 2023. Cash flow from operations totaled $163.5 million in the quarter, with a free cash flow of $74.9 million.

Price Action: SEAS shares closed lower by 0.02% at $47.19 at the time of publication Wednesday.

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