SeaWorld buoyed by latest news
SeaWorld Entertainment showed signs of a potential turnaround Monday as the embattled theme park group posted gains in quarterly profit and attendance, and announced it has reached a tentative settlement agreement with federal regulators.
SeaWorld shares surged Monday on the news, closing at $24.69 a share, up 16.9 percent from Friday’s closing price of $21.13.
The Orlando, Fla.-based theme park company, which has a park in San Antonio, posted a profit of $22.7 million during the threemonth period that ended June 30 after posting a $175.9 million loss during the same time frame last year.
SeaWorld lost $200 million in 2017, leading to the resignation in February of CEO Joel Manby, who had been on the job for three years and tasked with rehabilitating the park’s image in the wake of the 2013 documentary “Blackfish.”
Manby took more than $23.3 million in cash and stock with him when he left, according to an Express-News analysis of federal securities filings. John Reilly, SeaWorld’s chief parks operations officer, replaced Manby on an interim basis.
SeaWorld parks also saw more foot traffic during the second quarter — 6.4 million visitors, up 4.8 percent from 6.1 million during the second quarter in 2017.
And revenue grew by 8.7 percent during the second quarter, from $560.1 million in 2017 to
$609.1 million this year.
The park company also has cut $40 million in unnecessary costs this year with plans to eliminate $50 million more, Reilly said in a statement.
“We are seeing growth in attendance and revenue as a result of our new pricing strategies, enhanced communications activities and strong operational execution,”
Reilly said.
But the company’s critics cautioned against optimism in the wake of its performance during the second quarter.
“This summer’s events show that although the marine park may have a few upward blips, it’s on a downward trajectory that won’t stop until the animals are out of the tanks and in coastal sanctuaries,” PETA Executive Vice President Tracy Reiman said in a statement.
SeaWorld also announced in Monday’s earnings release that it had reached a tentative settlement with the U.S. Securities and Exchange Commission.
Last year, SeaWorld disclosed subpoenas from the U.S. Justice Department and SEC looking at what executives said publicly about “Blackfish,” as well as at stock sales in or before August 2014.
SeaWorld has not admitted or denied potential charges made by the SEC, the company said, but noted there is no assurance that the SEC will approve the settlement.
The theme park group did not mention the Justice Department investigation.