How Much Money Does SeaWorld Bring in Annually?

SeaWorld's 12 parks generated $1.4 billion in revenue in 2019, up $30 million over 2018. In fiscal 2019, the 12 SeaWorld parks hosted approximately 22.6 million guests, generating its highest-ever net income of $89.5 million and record adjusted earnings before interest, taxes, depreciation, and amortization of $456.9 million. SeaWorld has grossed between $1.2 billion and $1.46 billion per year since 2010, and the company has sustained its stock price and cash flow even during the pandemic.

Reorganizing to Face a Pandemic

From March 16, 2020, to June 5, 2020, all SeaWorld parks were closed due to the global COVID-19 pandemic. On June 6, the company began reopening its parks, first in Texas and then in Florida. By the end of Q2, 7 of the company's 12 parks were operating with limited capacity, as well as limited days and/or hours. Due to COVID-related park closures, SeaWorld had a total of 7 partially open parks including Orlando, 98 operating days in Q2 of 2020 compared to 12 parks with 861 operating days in Q2 of 2019.

Park attendance since reopening in June has been reduced by capacity limitations necessary for meeting COVID-19 social distancing guidelines, reduced operating days, limited marketing expenditures, and limitations of event lineup. Despite these limitations, total attendance at parks open for at least 30 days has increased 15 percent from the week of June 28 (the first full week the seven parks were reopened) to the week of August 2. The company believes that attendance will continue to grow as it introduces interactive experiences, special events, and other park offerings that were temporarily suspended earlier in the year and as it carefully increases its marketing spend.

SeaWorld Entertainment's Discovery Cove park, which accepts reservations up to 18 months in advance, is outpacing 2019 bookings. As of August 6, 2020, forward bookings for Discovery Cove are 176 percent higher than 2020 bookings at the same time one year earlier.

What are the operating results of SeaWorld's prudent management of post-pandemic park experiences?

• In 2019, the average in-park spending at a SeaWorld park was $27.53 per visitor. In 2020, the average in-park spending at a SeaWorld park was $27.52 per visitor.

• In 2019, average admissions spending at a SeaWorld park was $36.39 per visitor. In 2020, average admissions spending at a SeaWorld park is $38.70 per visitor.

• In 2019, the average total revenue per visitor was $63.92. In 2020, the average total revenue per visitor is $66.22.

As a result of the company's outstanding management practices, SeaWorld continues to have excellent relationships with funders to maintain its cash position.

SeaWorld Has Not Only Maintained but Also Improved Its Cash Position in 2020

SeaWorld has secured the operating capital it needs to continue its operations post-pandemic.

On April 30, 2020, SeaWorld closed on a $227.5 million private offering of 8.75 percent first-priority senior secured notes. As a result, on June 30, 2020, the company had approximately $376 million of cash and cash equivalents on its balance sheet, compared to a balance of approximately $400 million on April 30, 2020. This is equivalent to an average net positive monthly net cash outflow of approximately $12 million.

On July 29, 2020, the company amended its credit agreement to, among other things, further revise its financial covenant to suspend testing of the covenant through 2021 and modify the testing of the covenant in 2022. This allowed the company to close on a $500 million private offering of 9.5 percent second-priority senior secured notes on August 5, 2020.

These transactions left the company with $565 million in cash or cash equivalents and a credit line of $311 million for total liquidity of $876 million on its balance sheet as of June 30, 2020.

SeaWorld Has Streamlined Its Workforce

During the shutdowns at the beginning of the pandemic, SeaWorld laid off about 95 percent of its employees. At the end of 2019, the company had about 11,000 part-time employees and 4,300 full-time employees. In September of 2020, the company announced that many of the employees laid off would not be coming back, making the company part of a growing number of businesses permanently reducing staff.

"While we were able to bring thousands of furloughed ambassadors back to work and hoped to bring back everyone, the current environment requires us to set up the company for long-term success," a SeaWorld representative told The Wall Street Journal.

Construction Continues at SeaWorld Abu Dhabi

As of October 2020, construction at SeaWorld Abu Dhabi on Yas Island was 40 percent complete.

A partnership with Miral, Abu Dhabi's leading curator of educational, entertainment, and adventure experiences, SeaWorld will bring a new generation of marine parks to the island while providing first-class facilities for regional and global conservation efforts. Already visited by His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, member of the Abu Dhabi Executive Council and chairman of the Abu Dhabi Executive Office, the new theme park will be the island's next mega-attraction destination, complementing Miral's existing portfolio of travel destinations.

The Abu Dhabi SeaWorld park will be home to six aquatic realms that tell an immersive "One Ocean" story that shows the interconnections between all terrestrial life and the health of the oceans. As designers of the park point out, "we are connected to the ocean, and the ocean connects all of us."

Once completed, the park will feature one of the world's largest indoor aquariums, with an underwater ride that transports guests on a visually stunning journey from Pole to Pole, with dozens of interactive exhibits. SeaWorld Abu Dhabi will be the company's first park that will not host any killer whales (orcas).

SeaWorld's balance sheet is not encumbered by the project since all capital financing is provided by Miral. Completion of construction is expected in 2022.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes