SeaWorld reports solid balance sheet, record revenue, adjusted EBITDA

By Devika Patel

Knoxville, Tenn., May 10 – SeaWorld Entertainment, Inc. plans to keep delivering record financial results after first-quarter total revenue and adjusted EBITDA soared above 2022 levels, further strengthening the balance sheet and giving management greater financial flexibility.

Total revenue for the quarter was a record $293.3 million, which is a $22.7 million, or 8.4%, increase from the first quarter of 2022.

Adjusted EBITDA for the first quarter was a record $72.4 million, which is a $6.5 million, or 9.8%, increase from the same period in 2022.

The increase in total revenue was primarily a result of increases in admission per capita and in-park per capita spending.

Admission per capita increased primarily due to the realization of higher prices in admission products resulting from the company’s pricing efforts.

“This marks our eighth consecutive quarter where we have generated record financial results,” chief executive officer Marc Swanson said on the company’s first quarter ended March 31 earnings conference call on Tuesday.

“Our pricing and product strategies continue to drive higher realized pricing resulting in record total revenue per capita in the quarter,” treasurer and chief financial officer James W. Forrester Jr. said on the call.

“This increase was driven by improvements in both admissions per capita and in-park per capita spending.

“The increase in admission per capita was primarily due to the realization of higher prices in our admissions projects and products, resulting from our strategic pricing efforts,” Forrester said.

The balance sheet is strong and the company expects to continue delivering record results in 2023.

“Let me briefly comment on our balance sheet, which continues to be strong,” Swanson said.

“Our March 31, 2023 net total leverage ratio is 2.7x and we had approximately $426.4 million of total available liquidity, including $54.8 million of cash on the balance sheet in advance of us starting our summer season where we generate the majority of our cash flow.

“This strong balance sheet gives us flexibility to continue to invest in and grow our business and to opportunistically allocate capital with the goal to maximize long-term value for shareholders.

“Despite the uncertain times that we're living in our financial position is strong, our business is resilient, and our first quarter results, along with the coming opening of our ride attraction and event lineup, the opening of new and improved venues, and other park upgrades and enhancements, and all of the initiatives that we have underway give us high confidence in our ability to continue to deliver meaningful growth and new records in revenue and adjusted EBITDA for 2023,” Swanson said.

Cash and cash equivalents were $54,761,000 as of March 31, 2023, compared to $79,196,000 as of Dec. 31, 2022.

Total long-term debt, including current maturities, was $2,134,500,000 as of March 31, 2023, compared to $2,137,500,000 as of Dec. 31, 2022.

SeaWorld is an Orlando, Fla.-based theme park and entertainment company.

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