United Parks Reports Quarter Earnings: Challenges Due to Weather

Author: Hannah Lewis Updated: 02-26-2025 12:13 PM

Weather Impacts United Parks' Q4 Earnings Performance

United Parks & Resorts Inc. (NYSE: PRKS) is navigating a challenging earnings landscape. Recently, the company shared its fourth-quarter earnings, which unfortunately missed analyst expectations. With earnings per share recorded at 50 cents, the reported figure fell short of the anticipated 71 cents. However, despite this setback, quarterly sales managed to reach $384.38 million, which reflects a slight dip of 1.3% compared to the previous year but surpassed the analyst estimate of $380.04 million.

Revenue Trends and Guest Attendance

A closer look at the revenue generated reveals that the overall revenue per capita experienced a modest rise of 0.4%, totaling $78.75. While admission fees per capita saw a decrease of 1.9%, bringing it down to $43.61, there was a positive shift in in-park spending, which increased by 3.5% to hit $35.14.

Challenges from Unfavorable Weather Conditions

During the earnings call, CEO Marc Swanson pointed to significantly adverse weather conditions as a critical factor impacting the company’s performance during the fourth quarter and the fiscal year overall. The unexpected weather events included hurricanes that disrupted guest attendance and overall operations.

Effects of Guest Attendance Decline

In the fourth quarter, the total number of guests visiting United Parks fell to 4.9 million, marking a decrease of 79,000 compared to the previous year. Notably, Hurricane Milton's effects were significant, contributing to a loss of approximately 167,000 guests.

Future Attendance Predictions

Swanson provided optimism regarding future attendance, stating, “If we adjust for these severe conditions, we estimate that the attendance for the fourth quarter would have increased by around 2% when compared to the same quarter last year. Looking ahead, we also anticipate an approximate 2% increase in full-year attendance for 2024 relative to 2023.”

Financial Health and Debt Analysis

In terms of financial health, the adjusted EBITDA for the quarter showed a decrease of 4% year-on-year, settling at $144.5 million. The company’s cash and equivalents at the end of the quarter stood at $115.893 million, a significant reduction from $246.922 million a year prior.

Long-term Debt Insights

Long-term debt has also seen a rise, increasing from $2.125 billion last year to $2.263 billion. This upward trend in debt accompanies the company's strategies for navigating the current challenges in the market.

Market Response and Stock Performance

In response to these earnings results, PRKS shares experienced a lift of 1.95%, reaching $55.75 at the latest check on Wednesday. Despite the earnings miss, the market's slight optimism might suggest a confidence in the company's ability to recover from these weather-induced setbacks.

Frequently Asked Questions

What were United Parks' earnings per share for Q4?

United Parks reported earnings per share of 50 cents for the fourth quarter.

How did adverse weather affect United Parks' results?

Adverse weather, including hurricanes, significantly impacted guest attendance and overall financial performance, leading to lower-than-expected earnings.

What was the total revenue for United Parks in Q4?

The total revenue for United Parks in the fourth quarter was $384.38 million, which outperformed analyst expectations.

What does the future hold for guest attendance at United Parks?

The company anticipates a potential increase in guest attendance by about 2% for both the fourth quarter and the full year 2024.

What is the current status of United Parks' long-term debt?

United Parks' long-term debt increased to $2.263 billion, marking a rise from the previous year’s $2.125 billion.

About The Author

Hi there, I'm Hannah Lewis, a writer and financial specialist of 36 years old committed to making money understandable and approachable to everyone. Years of working in the field have given me a thorough grasp of market trends, investment techniques, and economic fundamentals. My objective is to enable people, by means of understandable, useful guidance, to take charge of their financial destiny.

I have written many articles for financial blogs over my career that simplify difficult financial ideas into understandable insights. Being financially literate is a critical ability, and I am passionate about enabling people to confidently manage their financial lives. Regardless of your level of experience, my work will help you at every stage of the investment process. I appreciate being allowed to share in your success and financial expansion.

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