Florida-based SeaWorld Entertainment, Inc. showed positive operational results during the second quarter of 2021. The company’s Q2 financial report, released on August 5, 2021, displayed record levels of revenue, net income, and adjusted EBITDA during the period.
Marc Swanson, SeaWorld’s Chief Executive Officer, noted that the 2021 Q2 results enhanced the first quarter’s upward-trending financial performance. “Our strong financial performance through the first half of the year underscores both the resilience of our business and our commitment to emerging from this extraordinary environment as an even stronger and more profitable business.”
“During the second quarter, we also generated record Free Cash Flow that further bolsters our already strong balance sheet. Our pricing and product strategies, along with the strong consumer demand environment, continued to drive higher realized pricing and strong guest spending, resulting in record total revenue per capita in the quarter,” Swanson stated.
2021 Q2 Financial Report Highlights
SeaWorld Entertainment, Inc. reported improvements in key operational metrics during 2021 Q2. These positive results reflected ongoing collaborations between the company’s Board of Directors and the Management Team.
SeaWorld Entertainment, Inc. achieved $439.8 million in total revenue throughout 2021 Q2. This record number represented an increase of $421.8 million from 2020 Q2 and $33.8 million (or 8.3%) from 2019 Q2. This higher number resulted primarily from increases in admission per capita and in-park per capita spending figures.
The Company reported a record net income of $127.8 million for the quarter. This number reflected an increase of $258.8 million from 2020 Q2. Similarly, SeaWorld’s 2021 Q2 net income was $75.1 million (42.7%) higher than the 2019 Q2 figure.
The company’s adjusted EBITDA reached $218.8 million in 2021 Q2. This record figure was $272.7 million higher than the 2020 Q2 number. In comparison to the 2019 Q2 adjusted EBITDA, the 2021 Q2 metric showed an increase of $69.1 million (or 46.2%). These positive outcomes resulted from higher total revenues and a corresponding drop in operating, sales, general, and administrative costs.
Admission per Capita
SeaWorld Entertainment, Inc.’s admission per capita saw an increase of 16.5% to $41.87. This higher figure resulted from the company’s successful pricing strategy and the admissions product mix’s net impact. The 2021 Q2 admission per capita increased 18.8% over the 2019 Q2 figure.
In-park per Capita Spending
Aggregate in-park per capita spending rose 11.6% to $33.84 over the 2020 Q2 figure. The 2021 result was also 22.7% higher than the 2019 Q2 number. These positive outcomes resulted from higher realized prices and fees and a rise in guest spending. An optimized product mix and new, enhanced, or expanded in-park offerings were also contributing factors. Strong consumer demand continued during the first half of 2021.
Cash Flow from Operations
SeaWorld Entertainment, Inc. experienced a record $229.7 million cash flow from operations for 2021 Q2. During this period, the company’s Free Cash Flow reached a notable $200 million level.
Executives’ Collaborations Drive Forward Progress
In April 2021, SeaWorld CEO Marc Swanson gave an IAAPA Virtual Conference keynote speech. He linked the company’s successful navigation of its 2020-2021 economic challenges to the ongoing collaborations between its Board of Directors and Management Team.
Specifically, Swanson recognized the leadership of Scott Ross, Founder and Managing Partner of Hill Path Capital and Chairman of SeaWorld’s Board of Directors. “Having a large investor on the Board allowed us to align goals and move even more confidently and decisively,” Swanson emphasized.
“That collaboration allowed us to address our operational costs and maximize our financial flexibility, giving us some breathing room to make difficult decisions with some degree of confidence,” he remarked. Strategic decisions included the deferment or elimination of non-essential expenses and substantial decreases in capital spending.
In May 2021, following the release of SeaWorld Entertainment, Inc.’s 2021 Q1 earnings, Board Chairman Scott Ross mentioned the executive team’s contributions to the company’s performance. Specifically, he recognized CEO Marc Swanson and Chief Financial Officer and Treasurer Elizabeth Castro Gulacsy.
SeaWorld Earns Two Awards
SeaWorld Entertainment, Inc. recently earned two awards for its quality guest experiences. In a 2021 nationwide poll, USA Today’s readers voted SeaWorld Orlando the United States’ Best Amusement Park. Readers named SeaWorld Orlando’s Mako thrill ride as the country’s top rollercoaster.
CEO Marc Swanson acknowledged the awards and recognized the parks’ team members who contribute to SeaWorld’s success. “We are thrilled to receive these awards and proud of the ambassadors in our parks that help deliver amazing guest experiences,” Swanson concluded.