SeaWorld Gives Downbeat Guidance
May 05 2016 - 10:10AM
Dow Jones News
SeaWorld Entertainment Inc., which recently said it would
abandon breeding its signature killer whales, said a measure of
profit for the year would land below analysts' expectations,
sending its shares tumbling.
Still, the company posted a smaller quarterly loss and said
revenue increased as attendance at its parks rose in its latest
quarter from a year ago.
For the full year, SeaWorld expects adjusted earnings before
interest, taxes, depreciation and amortization of between $335
million and $365 million, well below Wall Street's estimates of
$379 million of Ebitda.
Shares fell 8.1% to $17.90 in premarket trading.
In March, SeaWorld said it would stop breeding killer whales and
cease its theatrical shows featuring them, a dramatic shift as
heavy public scrutiny in recent years pressured attendance. Still,
the shift won't happen quickly—the company has nearly 30 killer
whales, one of which is pregnant, and it says they typically live
up to 50 years.
While the March announcement came at the end of the quarter,
Chief Executive Joel Manby said he expects the changes to
contribute to a performance improvement over time.
The theme-park operator has navigated turbulent waters in recent
years, which included the release of "Blackfish," a 2013
documentary that claims orcas, also known as killer whales, suffer
in captivity, and the December 2014 ouster of its chief executive
as the company planned a restructuring.
Attendance increased 2.6% to 3.3 million in the quarter.
SeaWorld attributes 40% of the increase to the opening of a
separate water-park-only gate at its San Antonio location. The rest
came from an earlier Easter holiday and additional operational days
at its Virginia park.
The company's Florida locations were hurt by fewer guests coming
from Latin America, where a number of countries are battling
economic troubles. Rainy weather and reduced discounting on season
passes also hurt results in the sunshine state.
In addition to operating namesake parks, the company's portfolio
includes Busch Gardens and the Sea Rescue television show. Mr.
Manby said Thursday that SeaWorld will this summer open two new
roller coasters in Florida and a new dolphin habitat in Texas.
For the quarter, SeaWorld reported a loss of $84 million, or $1
a share, compared with a year-earlier loss of $43.6 million, or 51
cents a share.
Excluding special items, the company posted a loss of 56 cents.
Revenue grew 2.6% to $220.2 million. Analysts had projected a loss
of 64 cents a share on $216.3 million in revenue, according to
Thomson Reuters.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
May 05, 2016 09:55 ET (13:55 GMT)
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