SeaWorld delays new roller coasters until 2021
But holiday events will stay on schedule
Iron Gwazi and Ice Breaker were supposed to be the two newest roller coasters coming to Central Florida this spring, but instead they are the latest fallout from the coronavirus pandemic.
Orlando-based SeaWorld Entertainment plans to push back the opening dates to 2021 the company reported Monday, as it revealed a net loss of $131 million in the second quarter when the theme parks were closed for the majority of time.
Only 300,000 people visited SeaWorld’s theme parks during the quarter, a staggering decline of 6.2 million from the same time period last year. SeaWorld’s total revenue was just $18 million, $388 million less than last year’s same quarter. Earnings per share were minus-$1.68.
Thrill seekers will have to wait longer to ride Iron Gwazi, the 206-foot tall hybrid coaster that’s drawn a buzz at Busch Gardens Tampa Bay and plenty of attention on social media when the ride was tested recently.
At SeaWorld Orlando, the more family-friendly Ice Breaker also looks enticingly close to being finished but also won’t open
until next year.
The company did not say when in 2021 the rides will open when the Sentinel asked after the earnings call.
Construction is about 87% complete on the company’s new rides that are now pushed back to 2021, said Elizabeth Castro Gulacsy, SeaWorld’s interim chief financial officer, with about $15 million left to finish the rides.
The Sentinel reported in June about the growing number of liens filed against SeaWorld, including for Iron Gwazi and Ice Breaker.
Gulacsy said the company has already received invoices for $40 million to $50 million, adding, “the timing of those cash payments haven’t gotten out the door yet.”
But not all is canceled at theme parks for this year.
Interim SeaWorld CEO Marc Swanson said the company plans to run modified Halloween and Christmas events, a different strategy than at Disney and Universal Orlando, which both canceled their premier Halloween events this year.
“We’re confident we can not only operate these events safely but we can operate these events profitably,” Swanson said.
In August and September,
SeaWorld Orlando is typically only open five to six days a week now, according to the online calendar. Swanson wasn’t specific on whether the parks will be open every day in the third and fourth quarters.
“We’re viewing it very opportunistically. We’re adding days where it makes sense, where they are profitable,” Swanson said.
Swanson also said the company could take advantage of the industry’s disruption from the pandemic and purchase a hotel or water park that could be converted into a SeaWorld brand like Sesame Place.
Like Disney and Universal, SeaWorld Orlando voluntarily shut down March 16 as concerns over large gatherings grew and later local government issued a stay-at-home order.
SeaWorld Orlando opened again on June 11 with new rules in place such as temperature screenings before you could walk through the front gates and required masks for both employees and visitors.
Attendance at the open parks increased by 15% from week of June 28 compared with last week, the company said Monday, without giving exact head counts.
SeaWorld’s advantage is many visitors drive to its parks, so the company isn’t as severely hurt by concerns over airline travel during the pandemic.
Orlando’s Discovery Cove, in particular, stood out for its growing advance bookings, the company said.
To weather the storm, SeaWorld has about $876 million in cash on hand and loans. Only seven of the company’s 12 theme parks around the country opened in June with limited operating hours and crowds, the company disclosed.
SeaWorld San Diego, the No. 17 busiest park in the country, according to an industry report, still doesn’t have an opening date yet, the company said.
Starting in 2018, SeaWorld has rebounded with a bigger attendance after falling further behind from Universal and Disney, which both invested heavily into new rides and their popular Harry Potter and Star Wars franchises.
SeaWorld also has dealt with a wave of negative publicity and anti-whale captivity backlash by trying to repair its image by focusing less on animals and more on new attractions and events.
Some challenges are selfinflicted.
A revolving door of executives has left the company.
The past two chief executive officers departed within months after feuding with the board of directors.
Swanson has run the company since April, during the height of the pandemic.
Despite the new job and the unprecedented challenges at hand, Swanson is well-versed on SeaWorld Entertainment’s finances after previously serving as its chief financial officer during his nearly 20-year tenure at the company.
The company didn’t provide an update on the CEO search Monday.