SeaWorld attendance dives 53% in final quarter of 2020, but stock soars
The pandemic’s rollercoaster plunge on SeaWorld Entertainment’s park attendance continued, as visits fell 53% to 2.2 million for the final quarter of 2020.
Despite the COVID challenges, SeaWorld beat Wall Street estimates and on Thursday morning, the stock (SEAS) shot up to nearly $46 a share, the highest price since the Orlando-based SeaWorld Entertainment became publicly traded in 2013.
Speaking to financial analysts Thursday, interim CEO Marc Swanson said the parks still attract local passholders and road trippers, but international travelers have mostly disappeared.
Most of SeaWorld’s theme parks across the country are open, including Orlando’s SeaWorld, Discovery Cove and Aquatica parks, although capacity is limited as concerns of large gatherings remain since most of the country is not vaccinated from the coronavirus.
Heading into a new financial year, last month’s attendance was “steady,” at a 42% drop from the previous year, Swanson said, adding that figure did not take into account its California or Virginia properties.
The company’s total revenues dipped 48% to $154 million for 2020’s fourth quarter compared with a year ago. The company reported a $45.5 million loss for the quarter. In 2019, its net loss for the same quarter was $24.2 million.
But the company said it still has plenty of access to cash. SeaWorld has $434 million on hand at the end of last year plus could borrow $311 million on credit if needed.
SeaWorld is burning through $18 million a month in expenses, which included paying late bills for vendors. SeaWorld said it owed $20 million to vendors as of the end of last year and pay most of the payments by April.
Last year, the Orlando Sentinel reported construction companies filed a growing number of liens against SeaWorld Orlando and Busch Gardens, complaining they had not been paid for their work. Some of the projects included marque roller coasters.
The company is still investing in new attractions.
“For 2021, depending on the case of recovery from the COVID-19 impacts, we plan on spending between $100 million and $150 million on capital expenditures,” interim chief financial officer Elizabeth Castro Gulacsy said.
Among the ongoing expense, the company continues to rescue about 470 animals. At SeaWorld Orlando, the theme park houses a behind-the-scenes area to care for orphaned manatees, and injured dolphins, turtles and other animals.
Swanson said the company could automate more jobs when asked about how raising the minimum wage could affect the company.
“We would work very hard to offset those increases with other efficiencies and automation efforts over time,” Swanson said.
Last year, Florida voters approved raising the minimum wage up to $15 an hour by 2026. The starting wage at SeaWorld Orlando is current $11 an hour.
SeaWorld has already gone through steady rounds of layoffs over recent years, including 1,900 furloughed employees who permanently lost their jobs in September.
Swanson revealed the company is developing a new app available this year that will have mobile order dining.
He did not disclose when Florida’s newest coasters — Iron Gwazi at Busch Gardens Tampa Bay or Ice Breaker at SeaWorld Orlando — are expected to open. The two thrill rides were originally set to debut in spring 2020 but were caught up in the pandemic. Since then, SeaWorld Entertainment hasn’t provided a more detailed opening date other than sometime this year.
The company also did not give an update on who will take over as the permanent leader.
Swanson, the former chief financial officer at SeaWorld, has led as interim CEO for nearly a year after CEO Serge Rivera abruptly resigned after fighting with the company’s board.