Q2 2020 SeaWorld Entertainment Inc Earnings Call
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Good morning, and welcome to see World Second quarter 2020 earnings Conference call. All participants will be any listen only mode should you need assistance. Please pick all conference specialist.
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After today's presentation, there will be an opportunity to ask questions.
Last question. They press Star then one on your telephone keypad.
Please note this event is being recorded.
I would now like to turn the conference over to Matthew Stroud. Please go ahead.
Thank you and good morning, everyone welcome to see World. The second quarter earnings Conference call today's call is being webcast and recorded.
A press release was issued this morning and is available on our Investor Relations website at Www Sea World investors Dotcom.
A replay information for this call can be found in the press release and will be available on our website following the call.
Joining me. This morning are Mark Swanson interim Chief Executive Officer, and Elizabeth go actually Chief Accounting Officer, and interim Chief Financial Officer and Treasurer.
This morning, we will review our second quarter financial results and then we will open up the call to your questions.
Before we begin I would like to remind everyone that our comments today will contain forward looking statements within the meeting of the federal Securities laws.
These statements are subject to a number of risks and uncertainties that could cause actual results to be materially different from those forward looking statements, including those identified in the risk factor section of our annual report on form 10-K, and quarterly reports on form 10-Q filed with the Securities and Exchange Commission.
These risk factors may be updated from time to time and will be included in our filings with the FCC that are available on our website. We undertake no obligation to update any forward looking statements.
In addition on the call we may reference adjusted EBITDA and free cash flow, which are non-GAAP financial measures.
More information regarding our forward looking statements and reconciliations of adjusted EBITDA and free cash flow to the most comparable GAAP measures is included in our earnings release available on our website and can also be found in our filings with the SEC.
Now I'd like to turn the call over two interim Chief Executive Officer, Mark Swanson Mark.
Thank you Matthew good morning, everyone and thank you for joining us.
This continues to be an extraordinary time for all of us.
That you and your loved ones continued to be safe as we manage through this crisis.
I'd like to start by expressing how proud I am of our team's performance during this unprecedented and challenging time.
Together, we have taken significant actions to reduce our cost.
Carefully manage our cash flows fortify our balance sheet and liquidity position.
Implement new and enhanced operating in safety protocols to meet the realities of the current environment.
And successfully reopened and welcome back guest to nine of our 12 parks.
As you all know our second quarter financial results were significantly impacted by the global covert 19 pandemic.
As we previously announced from March 16th 2020 to June 5th 2020, all of our parks were closed.
Starting on June six we began the process of reopening some of our parks beginning in Texas, and then in Florida and by the ended the second quarter seven of our 12 parks were open and operating with limited capacity limited hours and or limited days.
Due to the park closures, our second quarter of 2020 had only a total of seven parks, partially open with 98 operating days compared to a total of 12 parks fully open with 861 operating days in the second quarter of 2019.
Attendance since the parks reopened in June has been impacted by capacity limitations due to covert 19, social distancing guidelines fewer operating days per week versus the prior year.
Limited marketing spend and a limited events lineup.
Despite these limitations total park attendance at park that had been opened for at least 30 days has increased 15% on the same park basis from the week ended June 28. The first of all week. These parks were open to the weekend in August 2nd.
While the future remains highly uncertain.
Based on what we have seen recently.
We believe attendance trends compared to prior year, well continue to strengthen as we reintroduced special events.
Our active experiences and other embark offerings, which were temporarily suspended and we thoughtfully ramp up marketing spend.
Since the start of the third quarter, we have opened two additional parks sesame place located in Langhorne, Pennsylvania.
Busch Gardens Williamsburg, located in Williamsburg, Virginia.
That's a me placed opened on July 24th on a three day a week operating schedule and we are pleased with the early performance.
[noise] reopening we have seen high demand and we are adding additional operating days.
Our Busch Gardens Park in Williamsburg opened last week with a posters and kras Bruce events and is currently subject to a state imposed very limited 1000 person capacity.
Our Williamsburg team has been created and has developed a business plan that makes sense, even at those very low capacity levels.
We've seen strong demand for the event.
Actively adding more operating days and we're developing additional event concepts that we expect to roll out going forward.
Overall for the parks that have reopened attendance versus the prior year period has ranged from approximately 10% to 15% on the low end and up to approximately 50% on the high end, depending on the park and day.
Without the capacity limitations attendance versus the prior year.
Would likely have exceeded 50% in some parks on certain days.
From a forward looking perspective, we have seen some positive indicators.
Our discovery Cove Park, which accepts reservations up to 18 months in advance is showing strong 2021 bookings and significantly outpacing prior year today.
In particular 2021 forward bookings for discovery Cove as of August six 2020, or 176% higher than 2020 bookings as of the same time one year ago.
With respect to California, well, we don't have a park opening date for see wrote to announce today.
We are in regular contact with state and local authorities and we sincerely look forward to opening in San Diego and walk coming back our gas as soon as its safe and permitted to do so.
As we announced this morning, we do not currently plan to open up our aquatic a waterpark near San Diego or our water country USA Waterpark in Williamsburg This year.
Looking forward to the fall and winter, we're planning to operate and modified version of our popular Halloween and Christmas event at several of our parks.
We know how much these are loved by our guest and we're confident we will deliver compelling exciting and most importantly, safe events with relevant and appropriate operational changes.
More details will be forthcoming as we finalize those plans.
Well I should go without saying, we're confident we can not only operate these events safely well we can operate these events profitably.
Let me offer a few comments regarding our capital structure.
We recently completed a 500 million dollar notes offering and covenant adjustment that among other things further revised our financial covenants to suspend testing of the covenant through 2021 and modify the testing of the covenant in 2022.
Adjusting for the gross proceeds of the notes offering and related transactions as of June Thirtyth 2020, we would've had approximately $565 million of cash and cash equivalents on the balance sheet and $311 million available on our revolving credit facility, resulting in total liquidity.
<unk> of $876 million.
By issuing these notes we have significantly strengthen our balance sheet and liquidity position, providing us with enhanced operating flexibility.
Leading the ability to continue to make long term investments in our business.
And increased our capacity to take advantage of strategic opportunities that may arise from market dislocations.
With that I would like to turn the call over to Elizabeth to discuss our financial results in more detail Elizabeth.
Thanks, Mark and good morning, everyone.
Mark matching our second quarter results were significantly impacted by the temporary part closure, resulting from the current 19 paying back which led to all that parts being clients for the vast majority of the corner.
Our Florida, and Texas parts were able to reopen engine, but with the capacity limitations reduced operating hours and reduced operating day.
As a result attendance for the second quarter decreased by approximately 6.2 million gap, where 96% when compared to the prior year quarter.
We generated revenue of $18 million, a decrease of $388 million or 96% compared to the second quarter 2019.
Decreasing revenue results from the decline in a tend to do you need a part closure.
Second quarter total revenue per capita was $66.27 compared to $52.82 in the second quarter 2019.
An increase of 5.5% driven primarily by an increase in any part per capita spending and admission per capita.
Admission per capita increased by 2%.
$35.94 for the second quarter 2020, primarily due to the realization of higher prices across ignition CRADA, partially offset by the net impact.
Related to higher passive kinda when compared to prior year period.
It's hard for capital spending increased by 10% to $30.33 in second quarter 2020, primarily due to increased failed to starting in park CRADA and higher realized prices, maybe partially offset by reduced in park offering during the quarter.
We generated a net loss of $131 million compared to net income of $52.7 million and second quarter 2019.
Adjusted EBITDA for the second quarter with a lots of 53.8 million dollar a decline of $203.5 million compared to the prior year quarter.
Adjusted EBITDA was negatively impacted by the decrease in total revenue, partially offset by decreasing operating expenses and selling general and administrative expenses.
The decrease in operating expenses largely results from a reduction in labor related costs due primarily to the 'cause it 19 temporary park pleasure.
Operating expenses also decline due to a reduction in non essential operating costs, which were deferred or eliminated due to the park closure as well as cost savings and efficiency initiative.
Selling general and administrative expenses decreased primarily due to reduction in marketing and you get related cost do you get a cousin 19 park closure and the impact of cost savings efficiency initiatives.
Now turning to our balance sheet.
Our total deferred revenue balance related to all of our product as if the ended the quarter was 138.1 million dollar down approximately 15.6% from June of 2019.
Total deferred revenue related to our half product was down approximately 9%.
As of August that our total past eight which include annual pass and fun card was down 31%. However for park, which opened in the quarter. Our total past base has grown eight low double digit percentage since may which is a nice prior to reopening the park.
As Mark mentioned.
We have also taking additional steps to further strengthen our financial position and flexibility and enhance our liquidity.
We issued $500 million and second priority senior secured notes due in 2025.
Additionally in July we entered into another and then make sure senior secured credit facility to one another thing further refine our financial covenant to sustain testing through 2021.
Modified a casino the covenant in 2022.
As a result of this amendment beginning in the first quarter of 2020, Kim for Covenant purposes, only our 12 month trailing adjusted EBITDA using the calculation of our leverage ratio will ignore the second third and fourth quarter 2021, and we'll use adjusted EBITDA for the corresponding quarter.
In 2019 that.
While we are temporarily exam from combined with our leverage ratio covenant, we will be required to comply with a quarterly minimum liquidity cash.
Not less than 75 million dollar thrifty <unk> third quarter 2022.
Or to date on which we elect to your actual adjusted EBITDA to calculate the leverage ratio covenant.
This amendment along with a senior notes transaction further strengthens our cash position and increases our financial flexibility and liquidity.
I do you have heard we have taken a number at proactive measure to manage costs and expenditure and to increase liquidity. Both during the temporary park closure and actually we had began to be open.
With the resumption of limited operations across most of our car, where even more focused than ever before on driving attendance and total revenue by eliminating unnecessary class and continuing to identify more efficient ways to operate.
Now, let me turn the call back over to Mark will share some final by Mark.
Thank you Elizabeth before we open the call to your questions I have some closing comments.
During the quarter, a rescue teams continue to operate helping wildlife and need.
The second quarter, we hoped rescue over 430 animals, and we have now exceeded 37000 animal rescues over the company's history.
We are one of the world's leading animal rescue organizations and we're proud of our efforts to protect and save wildlife.
We went to take on employee ambassadors for their dedication in effort to reopen our parks and welcome back our guest.
We want to thank our guest and loyal pass holders for trust in us and returning to the parks that have reopened.
Finally, we would like to thank our financial and operating partners for their support and understanding during these extraordinary times.
Our business model is flexible and resilient.
While the future remains uncertain today, we feel very well positioned with the REIT asset team balance sheet and liquidity to navigate through this storm and emerge and even stronger and more profitable business.
We continue to have great confidence in our long term strategy and sincerely look forward to fully opening all of our parks and driving improved operating and financial results and long term value for all stakeholders.
With that let's open up the line to take your questions.
Thank you.
We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad, if you're using the speakerphone. Please pick up your handset before Chris in the key.
Withdraw your question. Please press Star then too.
We please.
Limit yourself to one question and one follow up if you have additional questions you may reenter the question Q.
At this time, we will pause momentarily to assemble a roster.
And the first question will come from Steve Zinski with Stifel. Please go ahead.
Hey, guys good morning.
So in the release you have a lot and they're talking about the the opportunity to take advantage of strategic opportunities that may arise and I'm wondering if you can give us some color around what that line actually means and then maybe what type of opportunities or strategic opportunities.
Our out there today that you might look at.
Hey, Steve It's Mark good good to talk to you know I think what we mentioned is you know with the with the notes offering we like the the flexibility that gives us for for a number of reasons as I mentioned, one of them being the potential for strategic opportunities there might be situations, where there's market dislocation or come.
Editors or others in industry, who who aren't able to.
Weather, the storm and so whether its oh, waterpark hotel or something like that a park that we could look at and convert to assess me place. For example, you know those are the type of things, we're talking about and yeah. We will obviously make sure before we would do anything like that that we that we feel comfortable about the future but that's.
That those are the type of things we're talking about.
Okay got you. That's that's really good color. Thanks, and then I wanted to see if you could give any color on.
What the parks look like and I don't know how much you could say here kind of during July and August I know enough. The releasing on their prepared remarks, you talked about attendants being up very nicely, but maybe specifically what you saw in Orlando is it's Florida is obviously been up a virus. So called hotspot did you see any material change.
Isn't visitation and over the last couple of weeks around you know is a virus news kinda picked up that makes sense.
Sure I can take that question. So one of the reasons, we pointed out the the increase in attendance from the weekend in.
June 28 to the weekend in August 2nd was those are those seven parks that are included in that comparison I've been opened more than 30 days and all all seven of them are in Texas, and Florida, and we know those of those have been in the face of a tough new cycle right. So it's good to see them grow obviously, you would expect some growth in July but I would say.
The the trend improved slightly as well and more more recently here. The last couple of weeks. We've been pleased we've been adding back events, we've been adding operating days, we've been giving people a reason that come and visit so we feel.
Good about the current trends and I would say more so in Florida, then in Texas, Although I will say just here in the last week or so I think Texas is is picking up a little bit as well, but I think on Florida hanging in there and we we feel pretty good about overall the parks that are opening and obviously getting sesame place open.
And getting a williamsburg up and has been good as well.
Okay can I ask one more super quick one I guess the you know in your the release, we're talking about discovery Cove and how the you know the forward bookings for 2021, I think are up or whatever the number was 100 and some 70. Some percent is there anyway and I don't know if you had this data, but how many of those are kind of new bookings.
Versus just somebody there was going to come in 2020, pushing that out into 21.
Yeah, what I would tell you is.
Well, we won't break it out specifically, but keep in mind you know those people have chosen to come back that could have they could have chosen to get a refund and instead. They they chose to re buck with US and then and then obviously, there's new bookings as well. So it's it's an indicator that we feel good about that people are going to come in.
Is it a discovery Cove, which as you know is in Orlando. So that's a one of the few can afford metrics. We have a we feel good about where it's at a right now.
Okay, great. Thanks, guys appreciate it.
Your next question will be from James Hardiman with Wedbush Securities. Please go ahead.
Hi, good morning, Thanks for taking my questions here. So Ah I guess two things you had given us sort of a range versus a year ago open anywhere between 10 and 50%.
I was hoping we could maybe narrow that down a little bit is there way to think about sort of in average a run rate of attendance versus where we were last year and then in terms of you just walk us through the capacity caps, where you started out and where you are today with the various parks.
Sure Hey, James as Mark Good to talk to you. So on you know on attendance I. You know we did give you the range kind of 10% to 15% all the way up to around 50% depending on the park depending on the day, Yeah. I think as we you know that that's going to normalize out to you know when you look at the.
The open parks in total for the month of July you know, you're probably in that in that 80%.
ER 20, 20% of prior year might you know, but it's going to be higher at at some parks or and I think we've been pretty pleased with especially our water parks and you know some others as well so we'll well we'll keep we'll keep working towards that I mentioned, we added events and and days.
The other reasons to come and visit and we've been pretty pleased with that.
At at a number of the parks and and that would include the non waterparks as well.
As far as capacity you know it you know those are limitations that you know we have in place. So that we can do a social distancing within the parks.
There's been a handful of days, where we would've liked to have more capacity. It at a Parker too, but I think you know we've been able to manage and we'll be able to continue managing going forward as you know.
No. There's there's not too many days that we operate at peak capacity as we talked about.
Last quarter. So I think we feel pretty good about being able to navigate through this especially as we move into the shoulder season, where where attendants, obviously would be lighter by you know just with schools back concession. It you know in the fall and things like that so well keep monitoring that but were what we're really focused on is getting people reason to be.
Is it.
Adding you know events and days in hours, where it makes sense and and we'll we'll continue to monitor that.
[laughter] things and then there's I think about the path back to profitability I'm I'm, assuming the parks that are currently open or profitable in their own right.
There are way to think about sort of wherever they would be assuming no no more parks open from here. There are way to think about how profitable those parts would need to be for you to get back.
Sort of break even from an EBITDA perspective.
Sure so.
You're right I mean that the the parks you know that are open collectively you know we you know there they're out there a operating pretty well so we feel good about.
The performance from that from those folks on a collective basis, you know is it enough to offset dad and other things you know not not at this point.
But you know as far as what we need to do to get to that point I think we'd have to be you know in the range of 40% of prior year and I'm here that would there's a lot of variables or that would depend on your capital spend and whatnot. So we need to we need to see those parks I do little bit better.
That's our focus I can tell you.
One of things were really focused on is trying to drive to that kinda enterprise breakeven level giddy getting enough with the open parks to cover off our corporate overhead and debt service and then you know anything beyond that related to Capex and whatnot would be kind of more at our discretion.
Thank you. The next question will come from Brett Andrus with Keybanc capital. Please go ahead.
Hey, good morning, I'm, hoping you can provide some detail on the mix or the tendency that you've been seeing here for the parts here recently I guess, the that 85% of drivable attendant test and it still hold off from the last time, we talk to EMEA has played out as you expected.
Yeah, Hey, Brett as Mark So what I can tell you is you know if you look at a June and July you know, we not surprisingly have seen seen an increase in local attendance.
But at the same time, we you know the domestic attendance says has held pretty steady to prior year. So I do think to your point the advantage of people driving in to our parks is holding and you know that 85% is across the whole company.
You know, it's still significant in Orlando not quite that high but we we are we're pleased with.
The the tenants were seen.
So if if local or you know if local is roughly a little more than 50% of the attendance that tells you that we're getting a others who are who are definitely driving into the parks, which were pleased with and for domestic tourism. It's on par with prior year. So we're not dependent on airfare were not or you know air to air travel into the market we have a lot.
Out of people that can drive and access our parks.
Got it. Thank you and then class one it seems like you've been adding more operating days here recently, so you know what number of operating days should we put in our model.
For Threeq you in Fourq you at this point and then just a clarification question I think you at 20% a prior year and answer. The James's question is that that consolidated or is that same park I just wanted to make sure I understood that number.
Yes, so as far as operating days.
You know we're going to you know we're reviewing that you know very opportunistically, and we're adding days, where where it makes sense and where where.
And where we're oh.
Where they're profitable and we can add those days. So I don't you know what.
I don't have an exact number for you, but I mean, we're going to do our events were going to do Halloween, We're gonna do Christmas whether we whether we run every single day like last year, you know it remains to be seen a and then we'll have to see as we get into the fall here dynamics with schools and whatnot, but I mean, our goal is to try to you know if it makes sense to be opened to be opened an obvious.
Actually in some of our seasonal parks, where we have where we would typically go to a more seasonal schedule, we'll probably do that obviously so.
You know beyond yeah. So that's kind of how to think about I think the operating days on a go forward basis.
And the next question comes from Tim Conder with Wells Fargo Securities. Please go ahead.
You know just wanted to clarify again to bretts question on James So the answer your dream to 20% a attendance average and in July that's up on a comp park basis that were open correct.
That that that would be comparable parks that are up and yes. Okay. Okay. Okay. I'll start my question, so or from the the the the attendance mix I just wanted to drill into that a little bit more market. They may.
Hi, This season pass can you comment there versus the non season pass and and and what you've seen so far and then as things stand now any any thing that you all can give us as far as your monthly cash burn expectations and just remembering a just a.
Good redefine how you're.
Looking at cash burn here in the back half of the year.
Yeah, and let me let me makes her on the on the 20%. It is same parks, but includes every day. So if a parks not so it's an aggregate of all the days for for the month.
Just to make sure that that's clear.
As far as Pat passes cetacean.
What I can tell you is you know kind of kinda similarly to how local attendance was up in June and July past attendance was up as well.
You know normally.
As a company, we do about 40% of our tenants. It's past related you know we saw that probably closer to in the 50% range, maybe a little bit higher in June in a little bit lower in July.
So that tells you that theres still probably about half of the attendance is coming on something other than a path. So again back to my point about people do drive to our parks and so we feel we feel pretty good about that.
Just going forward as far as your your your question about.
On cash burn I think there's.
You know a couple of comments I would I would make their you know.
You saw what we did a win win we were closed obviously in and you.
I think we did or did a good job with that we have tremendous focus on on our cash flow and and may make different decisions to manage that obviously.
And so going forward you know I think if you if you had to use a number and we're a little bit has a date because I think theres a lot of variables in it yeah. If he had to use a number I would continue to use 20 to 25 million on average per month, but it's going to be it's gonna be influenced by the number of parks that are open and how those parks perform obvious.
Actually it's gonna be influenced by how we address capex and payments for.
Capex that that already been incurred and then capex going forward. So there's going to be some some payments for that and there's going to be other other payments that we make as well. So you know could it be a little bit higher at times, yeah. It could be a little bit higher could it be a little bit lower at times. It could be that that's our goal. Obviously, so it's hard to give you a range.
Yes, and I would tell you that I think we would we would come back in November with with more of a view of how we used our our cash during the quarter.
I think certainly we're going to be opportunistic and to the extent to the parks perform well, we'll we'll probably deploy cash accordingly, and like I said around Capex and payables and you know will continue to monitor that we're very focused on it and we like the position that we're in right now with our with our liquidity in our flexibility.
At this point Mark the Capex in DNA as things stand at this point or just for the year.
Specifics on that.
Hey can it wasn't as I can take that good morning, So look as we mentioned last quarter, our we're about 87% complete on our construction project.
Right.
Now planning to opening 2021, we've got about 15 million or so laughter and finished its right what I would point out Sally he pointed out marchex need we do happen and that we've already incurred nimbly to that have already been incurred that just the timing of the Kathleen.
I'm going out the door, yet that kitchen is about 40 to 50 million now and you look at the latter half a year. He combination 15 million in me and 40 or 50, just to get the timing it cashing out the door.
Yeah, David I would add.
And I should have led with his sorry, you know we're really excited about the lineup for 2021 as we noted we're moving.
Most of the attractions that you know the ones that in an open this year, we'll we'll move our plan is to move the 2021 and if you recall, we we felt this was gonna be our best lineup of new attractions in our history and so many of those are not going to carry over the next year. So iron Guazi the coaster in Tampa ice breaker the cosier here in early.
Endo pantheon in Williamsburg, there's a lot of emperor the coaster in San Diego. So we feel really good about that 2021 lineup of rides come into the parks and so we're excited to continue to make progress towards that.
Thank you and the next question comes from Jason Bazinet with Citi. Please go ahead.
I just had two part question.
Can you just quickly review I think there's some parts that are close because the state mandates and other parks you alluded to that or close to just based on your.
Managerial decision, but I just want to make sure that dichotomy right and then second our there are there you mentioned that thousand person capacity constraint at Busch Gardens in Virginia are there any other sort of imposed constraints.
I'd like state regulators.
Yeah, Hey, Hey, Jason it's Mark so right now.
You know the.
The big the one big part that's not open is California, and so she wrote San Diego. So we are in in touch we work through the trade Association out there where were members along with Disney and Universal and others and so we'll continue to monitor that situation and hopefully get get that park opened.
But we don't have anything specific right now and then as I mentioned, we the Waterpark near San Diego aquatic a and then the water country, you're saying Williamsburg, you know, we're not going to we're not going to open those parks this year.
They they have a pretty limited operating season, so to get them ramped up if they're not allowed to be up and really right. Now just didn't didn't really make a lot of sense and.
We're obviously really disappointed with that and we know a lot of our fans are but you know well we'll we'll.
We continue to monitor that that whole situation, obviously as far as the constraints I mean really Williamsburg is the one place where we have a hard cap of 1000, you know we have other caps that we've put on place from a standpoint of how many people. We can have in the park and have the right social distancing. So we do.
Do we do monitor that obviously and there's there's some days as I alluded to.
At a parker to where we would have probably done more if we had the capacity, but Williamsburg is the one that its impose exactly by by the government a thousand people in the park at a time so.
Okay, that's great and so then just going back to the.
The way to think about it is there is sort of a california moratorium maybe but in.
And in that for the seasonal parks that are in Virginia, That's just more a function of not wanting to open them because their seasonal that's the right yeah, they're more seasonal so like Williams.
Water country USA in Williamsburg, we would typically only open that park tell about the second week of September so it it even if we could have opened it with under a thousand people. There were some other restrictions as well it just didn't make sense to to open it for four weeks basically there's there's a fair amount of ramp up costs.
Yes, and then similarly aquatic a San Diego, we don't even have a green light to open a park in California, and so the.
You know thinking that we're not sure when we would get that and then again that park would close I think typically right around in October sometime so.
We went ahead and made those decisions again, we're disappointed for our fans, but those are the decisions we made.
And the next question will come from Dan Jenkins with Credit Suisse. Please go ahead.
Hey, guys I'll close enough I appreciate it in Virginia can you talk about the thought process with a thousand people per day I know I imagine that's only a few percentage points here daily attendance I think some of your peers decided not to open in Virginia not to opine on their decision, but just can you talk about kind of the thought process and stay.
Atg, presumably you're taking into consideration pass sales and customer goodwill just any other information there would be would be helpful and anymore.
Yeah sure Dan Smart, so I think in Williamsburg, what what we've done as a couple of things and if you haven't checked out the website you know check it out a but so the event we're running right now it's called coasters in craft beer craft Brewers and so we're opening a small sections of the park and if you've ever vendor that part you know it's it.
As different countries and so we can we can segment that park pretty easily so the whole parts and had opened just certain sections, but you've got certain rides open certain food.
Another attractions opened so that so that makes it exciting and on certain days were running like two shifts. So we have a four hour block in the morning, where we welcome a thousand people and then are up 2000 people and then a four hour block and even even where we can walk them up to 1000 people. So in our mind it was a pretty creative way to too.
To your point.
Our passholders they can comment enjoy it which we wanted to be able to do that for them and we also have you know we're selling tickets for people, who don't have a pass or or hopefully they would bypass but so we were pleased with the event and as I said, we're going to.
China continue to look at events like this for that park certainly while there's while there's a cap and you know a whole hopefully over time, they kept gets lifted or or increased so we can open up more of the park, but that's why we're doing it and that's how we're thinking about it.
That's helpful and then on the cost side, obviously at the unique environment has there been call areas that are incremental to the buckets. You were previously considering dense presumably you're shutting down the parks were not part of the original plan.
What I would tell you is is we have a tremendous focus on on cost and we did prior to this pandemic and and as I mentioned last quarter, you know probably the only.
Advantage to going through what we've just been through with his pandemic is we really were able to strip our costs down to the kind of most essential level. So we probably had as much visibility in our cost as ever and we're being very methodical and careful as we add back costs. So things that we might have used to think were essential to have done a certain way are staffed a certain way we might build.
The view differently now and we're certainly trying to move more cost to a more variable model and that's that's a.
As a strategy that we think over the long term will be good from an efficiency standpoint. So I think we found some new insights and I will continue to deploy those as as we.
Continue to open parks and continue to hopefully ramp up our operations overtime here.
Thank you and our next question will come from Paul quoting.
Laurie Please go ahead.
Thanks, So much for taking my question I guess my my first point around a admissions per cap said there were up 2%.
Offset by mix and I guess my question is if you could give us any color around what your your revenue management strategy is that you've been using I'm just curious to get a.
ER positive.
Growth there despite a presumably would dilute of pass mix and then I've a follow up.
Yeah, I mean, we continue to have a lot of strategies.
Around pricing you know something prior to again prior to the pandemic. We had spent a lot of time on and you heard us talk about that so I think we're pretty pleased with.
What we've seen in that area and there are some some past mix impact in there as well, but I think in general when I look at.
Pricing you know for June in July.
I think if you look across all our products.
Total the price, we're pretty pleased with the pricing we're seeing so.
We will continue to do that and.
If you'll feel good about the strategies that we haven't place.
Is there any any color you could give around what it would have looked like on a like for like basis adjusting out the mix shift or.
Too tough to tell.
Oh, what I would say is is we have.
Yeah, I don't know that we can break that out I mean, what I would tell you is on a sales basis were relative it's all relative relatively doing better on passes and then on single day in multi day tickets. So that's going to help somewhat but I think overall, we're pretty pleased so.
Ladies and gentlemen, this concludes our question and answer session I would like to turn the conference back over to Mark Swanson for any closing remarks.
Yes. Thank you Chad on behalf of Elizabeth and the rest of the management team at Seaworld Entertainment want to thank you for joining US. This morning, you know actually heard today, we're confident in our business and strategy and sincerely look forward to coming out of this crisis and continuing to drive improved operating and financial results and long term value for all our stakeholders and just.
That want to say, thank you and I look forward to talking to you again next quarter.
And thank you Sir the conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Oh.
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