SeaWorld Entertainment Inc. said its earnings fell 84% in its
quarter ended in June—traditionally one of its strongest—as
attendance dropped following record Texas rainfall and continued
challenges in California.
The Florida-based company typically generates its biggest
revenue during the second and third quarters, which include the
prime spring and summer vacation months. In the most recent
quarter, attendance decreased by 1.6% as revenue per capital fell
1.8%.
"Our attendance for the second quarter declined due to the
timing of Easter, record levels of rainfall in Texas and continued
brand challenges in California. These factors were partially offset
by improved demand in our other park locations, including Florida,"
Chief Executive Joel Manby said. The company said it would have two
new coaster additions for 2016 and is focused on resolving its
"brand challenges" in California.
SeaWorld has struggled to counteract negative media attention
and pressure from animal-rights groups over its treatment of killer
whales following the 2013 documentary "Blackfish," which shed an
unflattering light on the company's methods. For its part, the
company has defended itself from the accusations, while pledging to
improve its facilities for the animals.
The company expects to benefit from favorable calendar timing
for the end of the year.
SeaWorld, which also operates parks under the Busch Gardens
brand name, unveiled a restructuring plan in December that includes
300 job cuts and an intention to cut $50 million a year in costs.
Mr. Manby became its new chief executive on April 7.
Overall, SeaWorld reported a profit of $5.8 million, or 7 cents
a share, down from $37.4 million, or 43 cents a share, a year
earlier. Excluding special items, per-share earnings were 22
cents.
Revenue fell to $391.6 million from $405.1 million.
Analysts had expected earnings of 39 cents a share on $398
million in revenue.
Shares, inactive premarket, have fallen 19% in the past three
months through Wednesday's close.
Write to Angela Chen at angela.chen@wsj.com
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