SeaWorld Entertainment, Inc. Reports Fourth Quarter and Fiscal 2017 Results

ORLANDO, Fla., Feb. 27, 2018

Highlights

• Fiscal 2017 total revenues were $1.26 billion, compared to $1.34 billion in fiscal 2016. Net loss was $202.4 million, which included an after-tax, non-cash goodwill impairment charge of $215.1 million, as compared to a net loss of $12.5 million in fiscal 2016.

• Fiscal 2017 Adjusted EBITDA^[1] was $300.8 million, or $5.8 million higher than the top end of the Company's most recent full year guidance range, compared to $332.0 million in fiscal 2016.

• Fourth quarter total revenues were $265.5 million, compared to $267.6 million in the fourth quarter of 2016. Net loss was $20.4 million, as compared to a net loss of $11.9 million in the fourth quarter of 2016.

• Fourth quarter 2017 trends showed improvement versus the first nine months of the year
• Fourth quarter attendance was down 2.7% from the prior year fourth quarter compared to full year 2017 attendance which was down 5.5% from prior year.
• Fourth quarter 2017 total revenue per capita was up 2.0% from the prior year fourth quarter compared to full year 2017 total revenue per capita which was down a modest 0.6% from prior year.
• Fourth quarter 2017 Adjusted EBITDA was down $3.5 million compared to the fourth quarter of 2016. However, the fourth quarter 2017 Adjusted EBITDA calculation does not reflect approximately $3.8 million of adjustments due to certain limitations in the Company's credit agreement^[2].

• In 2017, the Company helped rescue and rehabilitate over 2,100 animals and surpassed 31,000 total rescues over its history.

• Year-to-date 2018 trends are positive when compared to the prior year period with increases in season pass sales and total attendance, led by significant increases in both metrics at SeaWorld San Diego.

• Confident in 2018
• On track to deliver $40 million of previously announced net cost savings by year-end 2018 and an additional $25 million of previously announced cost savings for 2018, a portion of which may be used to offset any potential cost pressures.
• One of the best new product line-ups in the Company's history with 15 new rides, attractions and events being introduced across the park portfolio.
• Most comprehensive marketing and communications strategy bolstered by the largest investment in such efforts in the Company's history.

"We are encouraged by the improvements we saw in the business in the fourth quarter," said John Reilly, Interim Chief Executive Officer of SeaWorld Entertainment, Inc. "Our fourth quarter results were favorably impacted by the continued strong reception of our Halloween and Christmas events. We saw positive trends from our 300-mile and in guests from many of our parks and we saw an increase in overall admission per capita and in-park per capita spending.  We did continue to see some weakness from our international and U.S. domestic guests which we plan to specifically address with our 2018 sales and marketing initiatives." 

"Looking ahead to 2018 we are excited to see positive trends," continued Reilly.  "Year-to-date attendance and season pass sales to date have increased year-over-year, led by our SeaWorld San Diego park which is rebounding from a difficult 2017.  We have one of the most compelling line-ups of new rides, attractions or events across our parks that we have ever had.  We are implementing new pricing and ticketing strategies combined with new sales and marketing initiatives that we believe will help drive attendance, revenue and Adjusted EBITDA across our parks.  We also remain on track to deliver the previously announced $40 million in total net cost savings by the end of 2018 and the additional $25 million of previously announced cost savings.  With our highly compelling product lineup, updated pricing strategies and aggressive marketing and advertising plans, we are confident that we are well-positioned to deliver strong financial performance in 2018."

Fourth Quarter 2017 Results