Q3 2024 United Parks & Resorts Inc Earnings Call
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Speaker Change: Note. This event is being recorded I would now like to turn the conference over to Matthew Stroud Investor Relations. Please go ahead.
Matthew Stroud: Thank you and good morning, everyone.
Matthew Stroud: Welcome to United Parks, and resorts third quarter earnings Conference call today's call is being webcast and recorded.
Matthew Stroud: Our press release was issued this morning and is available on our Investor Relations website at Www, United Parks investors Dot com.
Matthew Stroud: Replay information for this call can be found in the press release and will be available on our website following the call.
Matthew Stroud: Joining me this morning, there Marc Swanson, Chief Executive Officer, and Jim Forrester interim Chief Financial Officer and Treasurer.
Matthew Stroud: This morning, we will review our third quarter financial results and then we will open the call to your questions.
Matthew Stroud: Before we begin I would like to remind everyone that our comments today will contain forward looking statements within the meaning of the federal securities laws.
Matthew Stroud: 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.
Matthew Stroud: Including those identified in the risk factors section of our annual report on Form 10-K, and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.
Matthew Stroud: These risk factors may be updated from time to time and will be included in our filings with the SEC that are available on our website.
Matthew Stroud: We undertake no obligation to update any forward looking statements.
Matthew Stroud: In addition on the call we May reference non-GAAP financial measures and other financial measures such as adjusted EBITDA and free cash flow.
Matthew Stroud: More information regarding our forward looking statements and reconciliations of non-GAAP measures to the most comparable GAAP measure is included in our earnings release available on our website and can also be found in our filings with the SEC.
Speaker Change: Now I would like to turn the call over to our Chief Executive Officer, Marc Swanson Marc.
Marc Swanson: Thank you Matthew good.
Marc Swanson: Good morning, everyone and thank you for joining us.
Matthew Stroud: We are pleased to report another quarter of solid financial results.
Matthew Stroud: Third quarter results were impacted by both a negative calendar shift and meaningfully worse weather, including Hurricane Debbie in August and Hurricane Helene in September.
Matthew Stroud: The combined impact of the calendar shift and the meaningfully worse weather was approximately 320000 guest.
Matthew Stroud: Adjusting for these impacts attendance would have increased approximately 3% compared to the prior year quarter.
Matthew Stroud: Continue to see strong demand for our parks during normalized operating conditions.
Matthew Stroud: And we are growing total revenue per capita.
Matthew Stroud: Our investments and strategies related to our in park revenue areas continue to pay off.
Matthew Stroud: As we again delivered record in park per capita spending during the quarter representing growth in 17 of the last 18 quarters.
Matthew Stroud: During the quarter, we strengthen our balance sheet and liquidity position by increasing the size of our revolving credit facility and decreasing its cost.
Matthew Stroud: We also continued to take advantage of our significant free cash flow generation and follow up and follow through on our commitment to return excess capital to shareholders via.
Matthew Stroud: By Opportunistically and aggressively buying back our shares at extremely depressed and highly attractive prices.
Matthew Stroud: We repurchased approximately $4 9 million shares or more than 8% of our total outstanding shares since the end of June through November six.
Matthew Stroud: Year to date, we have repurchased approximately $9 4 million shares or approximately 15% of our total outstanding shares.
Speaker Change: Last week, we wrapped up another busy Halloween season at our parks, featuring our award winning Halloween events.
Matthew Stroud: Excluding our Tampa Park, we again realized record breaking attendance for increasingly popular Hello Scream event across our parks.
Matthew Stroud: Okay.
Matthew Stroud: October results were significantly impacted by Hurricane Milton, which resulted in 14 operating day closures in our Florida market.
Matthew Stroud: And an extended impact at our Tampa parks as that market recovered from the impact of the storm.
Matthew Stroud: Attendance trends over the past three week period post the impact of Hurricane Milton.
Matthew Stroud: Have been strong with attendance up approximately 8% on a day to day basis through November three.
Matthew Stroud: In the coming weeks, we will begin our award winning Christmas events at our Seaworld Busch Gardens, and Sesame parks.
Matthew Stroud: We believe our Christmas events this year will be our best ever featuring our popular rides attractions and exhibits and with new and exciting shows specialty food and beverage offerings and holiday shopping for guests of all ages.
Matthew Stroud: I want to thank our ambassadors for their dedication and efforts during our busy summer season, as well as during our Halloween events and our upcoming Christmas events.
Matthew Stroud: As we look out into 2025.
Matthew Stroud: Extremely pleased with what we're seeing in our forward demand indicators.
Matthew Stroud: 2025 intended date ticket sales.
Matthew Stroud: Group bookings and discovery Cove bookings are all trending up double digit percentages ahead of prior year.
Matthew Stroud: We also recently launched our new and improved premium pass program.
Matthew Stroud: Which features our best benefits ever and we have seen strong sales since launch with sales up over 10% to date.
Matthew Stroud: Our results year to date continue to demonstrate the strength and resiliency of our business model.
Matthew Stroud: And the increased demand for our parks and our unique and differentiated offerings.
Matthew Stroud: While we are encouraged by the payoffs, we're seeing from our investments and initiatives across our enterprise.
Matthew Stroud: We know we have a lot of work a lot more work to do.
Matthew Stroud: As we wrap up planning for our 2025 season and beyond we are confident in our ability to take advantage of clear and significant opportunities we have to improve our operations grow our footprint.
Matthew Stroud: Further monetize our highly valuable assets and brands and deliver meaningful increases in revenue profitability and shareholder value.
Matthew Stroud: We announced our lineup of new rides attractions events and upgrades for 2025.
Matthew Stroud: This lineup includes.
Matthew Stroud: And immersive flying experience, taking guests on Nebraska checking journey to the top of the world.
Matthew Stroud: Revolutionary attraction advice thrill seekers and families alike.
Matthew Stroud: <unk> disguise over the Arctic and dive into the IC depth like never before at Seaworld Orlando.
position by increasing the size of our revolving credit facility and decreasing its cost.
Matthew Stroud: While the Oasis and all new round, featuring the sights and sounds of the rainforest the rush of the newly re imagine drop tower.
Matthew Stroud: Featuring steady our digital and sound effects and interactive water play Wonderland, a multilevel level, claiming canopy and an all new multi species animal habitat for up close encounters with some of the worlds most fascinating animals.
Matthew Stroud: Busch Gardens Tampa Bay.
Matthew Stroud: Rescue Junior and all new Kid friendly realm, featuring animal rescue themed rides water play area and so much more at Seaworld San Antonio.
Matthew Stroud: Big Bad Wolf, the Wolfson revenge, North America's longest family inverted coaster delivering a unique are delivering a highly immersive and thematic experience where families are swept into a world of unparalleled excitement.
Matthew Stroud: At Busch Gardens Williamsburg.
Matthew Stroud: Yeah.
Matthew Stroud: Jewels of the sea jellies fixes the jelly fish experience attraction offers an immersive and interactive view into the mysterious underwater world of glowing and graceful jellyfish at Seaworld San Diego.
Matthew Stroud: Also journey to Atlantis Seaworld, San Diego's first poster will be reinvented paying tribute to the original beloved version, while adding new elements to create a more exciting and immersive experience than ever before.
Speaker Change: During the quarter, we repurchased four 1 million shares for an aggregate total of approximately 211.
Matthew Stroud: $7 million.
Matthew Stroud: Subsequent to September 32024 through November six 2024.
Matthew Stroud: We repurchased approximately 0.8 million shares for an aggregate total of approximately 37 7 million.
Matthew Stroud: The board and the company strongly believe our shares continue to be materially undervalued.
Matthew Stroud: We have confidence in our business, our prospects and the value of our assets in any reasonable way you look at it we feel we are materially undervalued and that there is significant upside opportunity in our current share price.
Matthew Stroud: Our balance sheet continues to be strong on September 32000.
Matthew Stroud: Excuse me our September 32024, net total leverage ratio is 298 times and we had approximately $759 million.
Matthew Stroud: Of total available liquidity, including approximately $77 million of cash on the balance sheet.
Matthew Stroud: This strong balance sheet gives us flexibility to continue to invest in and grow our business and to Opportunistically allocate capital with the goal to maximize long term value for shareholders.
Matthew Stroud: We continue to make progress on realizing our cost savings initiatives. So far this year and we still have approximately <unk> <unk>.
Matthew Stroud: $6 million more to realize in the fourth quarter.
Matthew Stroud: We currently have approximately $20 million of new initiatives planned for 2025 and expect an additional $7 million.
Matthew Stroud: Full year run rate impact in 2025 from initiatives started in 2024.
Matthew Stroud: As you know cost management discipline is a key focus of our management team and we have demonstrated our ability to deliver on cost efficiencies.
Matthew Stroud:
Matthew Stroud: Now excuse me, let me update you on some of our other initiatives.
Matthew Stroud: In regards to the mobile App.
Matthew Stroud: We continued to make substantive progress on functionality adoption usage in financial impact it.
Matthew Stroud: It is being used by an increasing number of guests in our parks to improve their in park experience and is available at an increasing number of targeted locations.
Matthew Stroud: The App has now been downloaded more than 12 million times up from $10 7 million times at the end of Q2.
Matthew Stroud: Total revenue generated on the App continues to grow and we are now seeing an approximate 35%.
Matthew Stroud: Increase in average transaction value for food and beverage transactions made through the app compared to point of sale orders.
Matthew Stroud: We are excited about the potential of the app and its ability to improve the in park guest experience drive increases in revenue and decreases in costs. We are still in the early innings of fully monetizing the app.
Matthew Stroud: Our CRM program is generating incremental revenue by supporting our existing marketing strategy.
Matthew Stroud: While demonstrating a more holistic approach to customer engagement. We continue to believe that CRM will play a role in our long term growth strategy, providing deeper insights and more meaningful connections with our guests as we continue to scale.
Matthew Stroud: On the international front, we continue.
Also, Journey to Atlantis, SeaWorld San Diego's first coaster, will be reinvented, paying tribute to the original beloved version, while adding new elements to create a more exciting and immersive experience than ever before.
Matthew Stroud: Two progressed several discussions on new projects and expect to have more exciting news to share on two new projects in particular in the coming quarters.
Matthew Stroud: On the real estate front.
Matthew Stroud: We continue to refine our hotel plans and have discussions with various potential partners.
Thank you for watching.
Speaker Change: During the quarter, we repurchased 4.1 million shares for an aggregate total of approximately $211.7 million.
Matthew Stroud: We are also discussing other opportunities to develop and monetize our strategic real estate holdings.
Matthew Stroud: As we have discussed previously we are.
Subsequent to September 30th, 2024 through November 6th, 2024.
Matthew Stroud: Excited about the opportunity.
Matthew Stroud: To monetize.
Matthew Stroud: Our substantial and valuable unused land holdings and.
Speaker Change: We repurchased approximately 0.8 million shares for an aggregate total of approximately $37.7 million.
Matthew Stroud: And half hotels integrated into our properties.
Matthew Stroud: Yeah.
Matthew Stroud: As a reminder, we are laser focused on achieving a minimum ROI for all capital projects.
Speaker Change: The board and the company strongly believe our shares continue to be materially undervalued.
We have confidence in our business, our prospects, and the value of our assets. In any reasonable way you look at it, we feel we are materially undervalued and that there is significant upside opportunity in our current share price.
Matthew Stroud: We are excited about our new efforts and the resources, we have put towards growing our group business we.
Matthew Stroud: We see significant opportunity to grow our group business across our park portfolio.
Matthew Stroud: As I mentioned, we are seeing a double digit increase in group bookings for 2025.
Our balance sheet continues to be strong.
Matthew Stroud: And we are excited about unlocking the full potential of this profitable channel.
Speaker Change: On September 30th, excuse me, our September 30th, 2024 net total leverage ratio is 2.98 times and we had approximately $759 million of total available liquidity including approximately $77 million of cash on the balance sheet.
Matthew Stroud: We have also recently put more focus around capturing sponsorship opportunities in our parks.
Matthew Stroud: We recognize the opportunity we have to generate meaningful profits from leveraging the audience, we have in our parks.
Matthew Stroud: And the success many of our competitors have had in this area.
This strong balance sheet gives us flexibility to continue to invest in and grow our business and to opportunistically allocate capital with the goal to maximize long-term value for shareholders.
Matthew Stroud: This is not something that we have recently focused on as much and as a result, we believe we have the potential to generate meaningful incremental profits over time.
Matthew Stroud: From creating a dedicated effort around this opportunity.
Speaker Change: We continue to make progress on realizing our cost savings initiatives so far this year, and we still have approximately $6 million more to realize in the fourth quarter.
Matthew Stroud: More to come in future quarters.
Matthew Stroud: I'm very excited about the significant investments, we are making and the many initiatives we have underway across our business though.
Speaker Change: We currently have approximately $20 million of new initiatives planned for 2025 and expect an additional $7 million of full-year run rate impact in 2025 from initiatives started in 2024.
Matthew Stroud: Though we expect will improve our operations and allow us to generate more revenue and make us a more efficient and more profitable enterprise.
Matthew Stroud: We are building, an even stronger and more resilient business and we are confident we will deliver.
Matthew Stroud: Improved operational and financial results.
Matthew Stroud: Increases in shareholder value.
Speaker Change: As you know, cost management discipline is a key focus of our management team and we have demonstrated our ability to deliver on cost efficiencies.
Matthew Stroud: With that Jim will discuss our financial results in more detail Jim.
Jim Forrester: Thank you Mark.
Thank you. Bye-bye.
Speaker Change: Now, let me update you on some of our other initiatives.
Jim Forrester: During the third quarter, we generated total revenue of $545 9 million a.
Jim Forrester: A decrease of $2 3 million or 0.4% when compared to the third quarter of 2023. The decrease in total revenue was primarily a result of a decrease in attendance, partially offset by an increase in total revenue per capita.
In regards to the mobile app,
Speaker Change: We continue to make substantive progress on functionality, adoption, usage, and financial impact.
Speaker Change: It is being used by an increasing number of guests in our parks to improve their in-park experience and is available at an increasing number of targeted locations.
Jim Forrester: Attendance for the third quarter of 2024 decreased by approximately 100000 guests or one 4% when compared to the prior year quarter.
Speaker Change: The app has now been downloaded more than 12 million times, up from 10.7 million times at the end of Q2.
Jim Forrester: The decrease in attendance was primarily due to a negative calendar shift and meaningfully worst weather primarily related to hurricanes, Debbie and Helene during peak visitation periods compared to the prior year quarter.
Speaker Change: Total revenue generated on the app continues to grow, and we are now seeing an approximate 35% increase.
Speaker Change: increase in average transaction value for food and beverage transactions made through the app compared to point-of-sale orders.
Speaker Change: As Mark mentioned, the combined impact of the calendar shift and the adverse weather was approximately 320000 guests.
Speaker Change: We're excited about the potential of the app and its ability to improve the in-park guest experience, drive increases in revenue, and decreases in cost. We are still in the early innings of fully monetizing the app.
Speaker Change: Adjusting for these impacts attendants would've increased approximately 3% compared to the prior year quarter.
Speaker Change: Total revenue per capita increased 1.0%.
Jim Forrester: Admission per capita increased <unk>, 5% and in park per capita spending increased one 6%.
Speaker Change: Our CRM program is generating incremental revenue by supporting our existing marketing strategy.
Jim Forrester: Admission per capita increased primarily due to the net impact of the park mix, partially offset by lower pricing on certain promotional admission products when compared to the prior year quarter.
Speaker Change: While demonstrating a more holistic approach to customer engagement, we continue to believe that CRM will play a role in our long-term growth strategy, providing deeper insights and more meaningful connections with our guests as we continue to scale.
Jim Forrester: In Park per capita spending defined as food merchandise and other revenue divided by total attendance improved primarily due to pricing initiatives when compared to the third quarter of 2023.
Jim Forrester: Operating expenses increased $1 5 million or <unk>, 7% when compared to the third quarter of 2023 the.
Speaker Change: On the international front, we continue to progress several discussions on new projects and expect to have more exciting news to share on two new projects in particular in the coming quarters.
Jim Forrester: The increase in operating expenses is primarily due to an increase in labor related costs and a $2 $6 million increase in third party consulting costs associated with nonrecurring strategic initiatives, partially offset by decrease in noncash fixed asset write offs when compared to the third quarter of 2023.
On the real estate front,
Speaker Change: We continue to refine our hotel plans and have discussions with various potential partners.
Speaker Change: We are also discussing other opportunities to develop and monetize our strategic real estate holdings.
Jim Forrester: Selling general and administrative expenses decreased $4 3 million or seven 3% compared to the third quarter of 2023.
Jim Forrester: The decrease in selling general and administrative expenses is primarily due to a $6 $6 million decrease in third party consulting costs, including approximately $4 $2 million of nonrecurring costs for strategic initiatives, partially offset by an increase in marketing related costs when compared to the third quarter of 2023.
Jim Forrester: We generated net income of $119 7 million for the third quarter compared to net income of $123 $6 million in the third quarter of 2023.
Jim Forrester: We generated adjusted EBITDA of $258 4 million, a decrease of $8 million when compared to the third quarter of 2023.
Jim Forrester: Adjusted EBIT declined due to increases in expenses used to calculate adjusted EBITDA and a decrease in revenues relative to the prior year.
Jim Forrester: Looking at our results for the nine months of 2024 compared to 2023 total record revenue was $134 billion.
Jim Forrester: An increase of $3 $3 million or 0.2%.
Jim Forrester: Total attendance was $16 7 million guests, an increase of 20000 guests or <unk>, 1%.
Jim Forrester: Net income for the period was $199 $6 million, an increase of $5 $5 million and adjusted EBITDA was $555 $7 million, a decrease of $7 $3 million or one 3%.
Jim Forrester: Now turning to our balance sheet as Mark mentioned, we further strengthened our already very strong balance sheet and liquidity position by increasing the size of our revolving credit facility from $390 million to $700 million and decreasing our cost during the quarter.
Jim Forrester: As of September 32024, we added approximately $759 million of total available liquidity, including $77 million of cash on the balance sheet or.
Jim Forrester: Our net total leverage ratio at the end of the quarter was 298 times the strong balance sheet gives us flexibility to continue to invest in and grow our business and to Opportunistically allocate capital with the goal to maximize long term value for shareholders.
Jim Forrester: Under our $500 million repurchase authorization from the board during the third quarter, we repurchased $4 1 million shares for an aggregate total of approximately $211 7 million subs.
Jim Forrester: Subsequent to September 32000, 2024 through November six 2024, we purchased approximately 0.8 million shares for an aggregate total of approximately $37 $7 million.
Jim Forrester: Our deferred revenue balance as of the end of September was $155 7 million a decrease of approximately three 3% when compared to September of 2023.
Jim Forrester: As a reminder, our deferred revenue balance contains a number of products to include ticketing vacation packages annual and seasonal passes and ancillary products. We also continue to see many pass holders who have been with us for at least a year, who transitioned to mark to mark payments at the completion of their initial pass commitment. This month to month revenue does not show up.
Jim Forrester: As deferred revenue.
Jim Forrester: Our pass base improved from the end of the third quarter.
Jim Forrester: Through October 2024, our pass base, including all past products was flat compared to October 2023, and up 25% when compared with October 2019.
Jim Forrester: We recently launched our best past benefits program ever for 2025, which has led to double digit sales and which we expect will drive a strong pass base for the remainder of this year and next year.
Jim Forrester: We spent $55 $4 million on Capex in the third quarter of 2024.
Jim Forrester: Approximately $35 $1 million was on core capex and approximately $23 million.
Jim Forrester: On expansion and or ROI projects for 2024, we expect to spend approximately $250 million on capex of which a $180 million will be on core capex and approximately $70 million of capex on ROI our growth projects.
Jim Forrester: On a normalized basis, we continue to expect to spend $150 million to $175 million on core Capex, which is defined as rides attractions and maintenance and up to $50 million on ROI, our growth capex with a clear and supportable return.
Jim Forrester: Now, let me turn the call back over to Mark who will share some final thoughts Marc.
Marc Swanson: Thank you Jim before.
Marc Swanson: Before we open the call to your questions I have some closing comments.
Jim Forrester: In the third quarter of 2024.
Jim Forrester: We came to the aid of 132 animals in need.
Jim Forrester: Over our history, we have helped over 41000 animals, including.
Jim Forrester: I don't know as Dolphins Manatees Sea Lions.
Jim Forrester: <unk>.
Jim Forrester: The turtles sharks birds and more.
Jim Forrester: I'm really proud of the team's hard work and their continued dedication to these important rescue efforts.
Jim Forrester: We are excited about our upcoming Christmas events that will wrap up the calendar 2024, and we are planning for more great events to start in the first quarter of 2025, including inside look at.
Jim Forrester: At the Seaworld parks Mardi Gras.
Jim Forrester: At the Seaworld and Busch Gardens Parks, seven Seas Food festival at the Seaworld parks and the food and wine Festival at Busch Gardens Tampa Bay.
Jim Forrester: I want to thank our ambassadors for their efforts during our summer and fall season, and the preparation for our upcoming winter events, which are guest favorites.
Jim Forrester: We continue to believe there are significant additional opportunities to improve our execution to take advantage of clear growth opportunities.
Jim Forrester: Continue to drive meaningful long term growth in both revenue and adjusted EBITDA.
Jim Forrester: Continue to have high confidence in our long term strategy.
Jim Forrester: Our ability to deliver significantly improved operating.
Jim Forrester: And financial results that we expect will lead to meaningful meaningfully increased values for stakeholders.
Jim Forrester: Now, let's take your questions.
Speaker Change: We will begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
Jim Forrester: Thank you are using a speakerphone please pick up your handset before pressing the keys.
Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker Change: And the essence of time, please limit yourself to one question and one follow up.
Speaker Change: The first question comes from Steve.
Speaker Change: With this gain from Stifel. Please go ahead.
Speaker Change: Hey, guys good morning.
Speaker Change: So mark I know over the past couple of quarters, you guys had talked about.
Speaker Change: 2020 for you guys were expecting to be kind of a record revenue and EBITDA year.
Jim Forrester: I'm guessing now that it's pretty clear, that's probably off the table given.
Speaker Change: The adverse weather you guys have experienced across a lot of your Florida parks, but I guess my question is as we start to think more about 2025 based on.
Jim Forrester: What youre seeing today in terms of.
Jim Forrester: Forward demand spend patterns, you talked about the realization of more cost savings yes.
Speaker Change: Is there any reason to believe that the 2025 wouldn't get you back kind of well north of that previous EBITDA record in 2022, I mean, assuming that weather is kind of normalized and I'm not trying to get guidance out of you, but just looking for more reasons why you know why that would potentially be the case next year.
Speaker Change: Yes. Thanks, Thanks, Steve for the question so.
Speaker Change: The first part about the record for this year you are correct I mean, obviously.
Speaker Change: We don't have that in our projection given the significant weather impacts that you called out so it's unfortunate but.
Speaker Change: We're going to try to finish out the year, obviously is strong as we can but no longer expect record revenue and record EBIT adjusted EBITDA as you noted.
Speaker Change: And Thats again due to the weather the weather its been not good, especially with hurricane Milton here in October.
Speaker Change: As far as how we look out to 2025.
Speaker Change: Some encouraging signs as you heard me talked about and certainly our expectation would be that we would we would recapture.
Speaker Change: A lot of this weather impact that we lost and then and then find additional ways to grow on top of that with either new attractions events.
Speaker Change: Other compelling reasons to visit.
Speaker Change: Et cetera, so yes.
Speaker Change: I can't guide you to a specific number but I can tell you internally certainly our expectation would be to get back.
Speaker Change: Two record performance and getting getting some recovery from the weather and in growing through other means and our business whether it's our initiatives.
Speaker Change: All of the different things, we're doing around our rides and attractions and reasons to visit so yeah. That's how we think about it.
Speaker Change: Okay.
Speaker Change: For that market.
Speaker Change: Leads to my my second question.
Speaker Change: Obviously as we kind of think about 2020, there is going to be increased competition coming online in the market in Orlando and it's getting pretty clear.
Speaker Change: Yep.
Speaker Change: You are out there and the investments we knew that this new competition is going to have any.
Speaker Change: Cereal impact.
Speaker Change: You guys in 2025.
Speaker Change: Look you guys, obviously have a pretty big value proposition versus some of your peers in that Orlando market. So maybe just help us think about how.
Speaker Change: Youre thinking about 25 in terms of going up against that new competition.
Speaker Change: Sure Steve So a couple of things and I know some of this will be repetitive from what I've said in the past, but I'll try to add some new things too.
Speaker Change: Look I mean, if you go back we've been here since the early 1970 as you think about Seaworld Orlando and then we opened two two parks since that time with discovery Cove in aquatic and.
Speaker Change: When you think about all of the parks that have come online in the Orlando market. Since we opened in the early 19 seventies.
Speaker Change: We then added two of our own we've continued to participate in the growth of the of the EBITDA in the market. So.
Speaker Change: We've done that we've already demonstrated we can we can grow when there is competition in this market and we know we have a view as I've said in the past that new parks opening in the market. We generally view is that's going to be good for the market, it's going to bring more people.
Speaker Change: To the market and we need to execute on our plans to drive those people to our parks. So.
Speaker Change: How do we do that like like Youre, asking again, we have.
Speaker Change: A differentiated product the ride coming in.
Speaker Change: The attraction coming in to Seaworld Orlando next year is going to be very seaworld centric, it's going to be animal animal components to it it's going to be something that would be unique.
Speaker Change: I think to an experience you get a seaworld.
Speaker Change: That's a product differentiation, we have a value proposition as you already noted that we feel really good about we think we offer tremendous value, especially with with our season passes.
Speaker Change: Our multi day tickets.
Speaker Change: So.
Speaker Change: Our parks are also I would say in general I think are much easier to access for people, it's an enjoyable experience coming to our parks I would argue it's a more relaxed experience.
Speaker Change: And lastly, again without going into any.
Speaker Change: Competitive details or anything obviously, we're aware of that.
Speaker Change: New parks, new part coming to Orlando next year, we have our own strategies on our own folks working on that and so we're going to again, we have to execute on our strategy much like we have over the history.
Speaker Change: I've been in this market and I have confidence we can do that we welcome more people to town I'm sure epic is going to do very well and theres going to be days that I'm sure, they're very crowded and we might feel it a little bit but I think we can we can participate in that growing market share like we've demonstrated in the past with all of the different things we have to offer.
As far as how we look out to 2025, there's there's some encouraging signs as as you heard me talk about and certainly our expectation would be that we would we would recapture.
A lot of this weather impact that we lost and then and then find additional ways to grow on top of that with either new attractions events. Other compelling reasons to visit et cetera. So yeah. I I you know again I cant guide you to a specific number but I can tell you internally certainly our.
Speaker Change: The next question comes from Matthew Boss of Jpmorgan. Please go ahead.
Matthew Boss: Great. Thanks.
Speaker Change: So mark maybe could you elaborate a little on the cadence of attendance trends that you saw in the corner I know maybe parse best you can through weather.
<unk> would be to get back to two two record performance and.
Speaker Change: And if you could just walk through some of the drivers of the improvement that you cited for October maybe between weather macro how much you think as a.
Speaker Change: Company self execution.
Speaker Change: And just putting that all together maybe is the best way to think about top line puts and takes for the fourth quarter.
Speaker Change: Yes, I can try to help you out there.
Speaker Change: The attendance kind of.
Speaker Change: I've been flowed a little bit in the third quarter and a lot of that was the calendar shift and the weather impacts so.
Speaker Change: You can probably.
Speaker Change: Most of the calendar shift.
Speaker Change: It was more July related into whether it was with some of the other months, but.
Speaker Change: I think what's exciting you kind of alluded to it is the performance.
Speaker Change: Kind of a sense since Milton has calmed down so.
Speaker Change: Hurricane Milton really put us in.
Speaker Change: A tough spot to start October right. So we had to close our <unk> park for five consecutive days.
Speaker Change: That's quite a long time and then we had other other parks closed and then you have the lead up where people are not coming because theyre getting ready for the storm and then you have the recovery process, especially in Tampa, which which has taken some time so what we tried to do.
Speaker Change: In our remarks, there is give you an idea of whats been like the last three weeks ending on November three and Thats, where on it on a day to day basis the attendance.
Speaker Change: Is up I think we said about 8%. So that is driven by I think the popularity of our.
Speaker Change: Halloween programs, we were able to extend Halloween into the first weekend in November which was a good decision on our part and we saw a nice demand for that on that last weekend. So.
Speaker Change: What's helping helping drive that and helping.
Speaker Change: Make up some of that that very significant amount of attendants, we lost in October.
Speaker Change: Great and then maybe Jim just on the cost side could you speak to continued efficiency opportunities are how best to think about the multiyear cost profile relative to top line.
Jim Forrester: Hey, Yeah. Good morning, I would say as far as we're thinking about for the continued cost profile as Mark mentioned, we have a number of significant initiatives that we're planning for next year. These could include things like use of technology to improve labor efficiencies or to <unk>.
Speaker Change: Reduce some of our spend and things like that.
Speaker Change: Utilities or our insurance claims area that we have.
Speaker Change: Got it.
Speaker Change: We've said in the remarks that we've got about $20 million of new initiatives that we are in the planning stages on.
Speaker Change: We believe.
Speaker Change: Although we talk to you again in a gross basis, we clearly would like those default flow through and we will continue to work toward making sure that that.
Speaker Change: They do that.
Speaker Change: The next question comes from Jamie Hardiman from Citi. Please go ahead.
Jamie Hardiman: Hey, good morning.
Speaker Change: So I just wanted to walk through some of the math or the accounting.
Speaker Change: I guess in two respects revenues were were pretty flat in the quarter, the third quarter, but I guess they were down $2 million.
Speaker Change: But EBITDA was down more like $8 million and then cash from operations were down $25 million. So maybe sort of bridge the revenue to EBITDA walk and then the EBITDA.
Speaker Change: Cash from operations.
Speaker Change: Obviously, theres a bunch of adjustments to get from from sort of EBITDA to adjusted EBITDA and it seems like that's where.
Speaker Change: Some of that Delta is coming in but conceptually maybe walk us through some.
Speaker Change: Some of those items.
Speaker Change: Yes, Hey, James I can I can I can help you with that.
Speaker Change: So look on the on the on the total revenue.
Speaker Change: Just down a little bit as you said and that's driven by those.
Speaker Change: Tenants.
Speaker Change: Headwinds with the calendar shift and in the <unk>.
Speaker Change: Right.
Speaker Change: As I pointed out we grew we grew our per caps that continues to be a good story, especially on the on.
Speaker Change: On the in park per caps rate. So we're doing a good job.
Speaker Change: Of of growing.
Speaker Change: Per cap even in the face of.
Speaker Change: Lower lower attendance for the quarter, and then kind of the walk from there too.
Speaker Change: Adjusted EBITDA as you said.
Speaker Change: You heard Jim mentioned, there were some some cost pressures and some labor areas and certainly.
Speaker Change: We had some learnings from that Theres some things that.
Speaker Change: We've got to probably do a little bit better job of going forward, we recognize that it is.
Speaker Change: Not like our costs are out of control or anything like that.
Speaker Change: The EBIT costs are only up I think 2%. So we're still doing a really good job of managing to a pretty low level and you've got a lot of inflationary pressures you've got.
Speaker Change: Insurance things and other things in this labor.
Speaker Change: Efforts that we've we've learned from I think in Q3, and we can apply into Q4 so.
Speaker Change: That's kind of the walk from there.
Speaker Change: To get to where how do we think about things.
Speaker Change: Got it and I didn't I didn't know if he wants to touch on the cash flow piece.
Speaker Change: No I mean, I think you can probably.
Speaker Change: Read into that pretty clearly on the press release.
Speaker Change: Okay Fair enough and then.
Speaker Change: Maybe I Misheard you mentioned in your prepared remarks on on real estate.
Speaker Change: Wouldn't tell you if there was something incremental there or it was sort of more of the same you talked about.
Speaker Change: <unk>.
Speaker Change: Continuing to try to find partners in terms of hotel development. But then you also said you are also discussing other opportunities to develop and monetize.
Speaker Change: Is that sort of incremental versus what you had previously communicated are you.
Speaker Change: Is there an opportunity to do your own development versus just the partnership track. Thanks.
Speaker Change: Yes, I think what I was what I was alluding to James was.
Speaker Change: We recognize and.
Speaker Change: And we've talked about it that we have a lot of land and we have land in desirable areas right and you could use that for hotels or other things and I'm not sure. It's always fully appreciated by.
Speaker Change: Everyone, what what that land how much we have and how valuable we believe it is and we recognize the board and others recognize that way.
Speaker Change: Ways to monetize or at least ways that we should consider how to use that land. So those are just discussions that we can have internally or as people approach us with ideas and so I think we're just making it clear to people that we recognize there are there are other ways to monetize.
Speaker Change: Our assets beyond just the hotels and I don't have anything specific to share with you, but it's something that obviously our board is aware of.
Speaker Change: Yeah.
Speaker Change: The next question comes from Lizzie Dove from Goldman Sachs. Please go ahead.
Speaker Change: Hi, Thanks for taking the question I, just wanted to keep going with the capital allocation plan.
Speaker Change: It looks like you're on pace to finish the buyback by the end of the year. So could you just give us a refresh like in terms of you know.
Speaker Change: Whether you would want to have.
Speaker Change: Have another authorization I think that would require a shareholder vote.
Speaker Change: EBITDA will go down the hotel Ralph could you kind of outline what youre kind of order of priority. There is as you look to.
Speaker Change: 25.
Speaker Change: Yes.
Speaker Change: I can take that question. So I think the simplest way to sum it up as obviously.
Speaker Change: We know capital allocation is something that our investors are.
Speaker Change: <unk>, obviously got it.
Speaker Change: Want to know about and ask them out and so you can be assured that our board is well aware of that and it's something that.
Speaker Change: They will like.
Speaker Change: Like to have in the past.
Speaker Change: Make sure that they are considering what are the best options for shareholders.
Speaker Change: I think what I can leave you with is that.
Speaker Change: I think you can feel confident that that is work that they will continue.
Speaker Change: To consider on a go forward basis. So I don't have anything specific to direct you to other than the <unk>.
Speaker Change: Continue to consider what are the best ways to return cash to shareholders.
Speaker Change: Got it and then just to follow up on the earlier kind of hurricane questions could you kind of help outline maybe what kind of EBITDA impact of the hurricane was for the fourth quarter and I guess it had.
Speaker Change: Ahead of the Halloween events, which typically I think Ohio Picop events has been more obviously, seven Florida, which again I think come with higher ticket prices versus the rest of the bank. So just curious kind of I guess, how that's kind of impacted pickup trends that you've seen quarter to date and also just what that kind of EBITDA Hudson.
Speaker Change: Yes.
Speaker Change: I can I can take that question so.
Speaker Change: Yes.
Speaker Change: A meaningful impact, obviously, a pretty significant impact.
Speaker Change: On the start to October and as I mentioned being being closed.
Speaker Change: Days and when we went back.
Speaker Change: I think 30 years, we haven't been closed five days in a row at Busch Gardens that we could see and then we had the impacts over here in Orlando and then you kind of have this lingering impact.
Speaker Change: In October.
Speaker Change: For Tampa so.
Speaker Change: The impact is pretty significant I would say probably.
Speaker Change: $9 million or so or more.
Speaker Change: It's.
Speaker Change: It's hard to put an exact.
Speaker Change: Exactly.
Speaker Change: Number on it but maybe 10 ish million in EBITDA would be a way to think about it but that's clearly an estimate.
Speaker Change: While we got to kind of keep an eye on is if it lingers into Thanksgiving or Christmas with some of the recovery down in Tampa with some of the beaches and stuff are just now kind of reopening and a lot of cases, so hopefully it'll it'll continue.
Speaker Change: Continue to.
Speaker Change: <unk> returned to normal like we kind of saw here at the beginning of November.
Speaker Change: Yes, a very meaningful impact.
Speaker Change: The next question comes from Ben Chaiken of Mizuho Securities. Please go ahead.
Speaker Change: Hi, Thanks for taking our question, although Vitol answer Jay again.
Speaker Change: Can you talk about your cash cost in the quarter I think up slightly year over year was there anything lumpy or abnormal to call out and then as a follow up I wanted to ask about cash conversion from EBITDA cash flow from operations.
Speaker Change: Slightly lower than we expected anything in working capital, we should be considering for the quarter and going forward.
Speaker Change: I'll take your second one first.
Speaker Change: No nothing to be concerned about theirs.
Speaker Change: Nothing really.
Speaker Change: It's not seasonal in nature or expected.
Speaker Change: Two to discuss some outlook.
Speaker Change: On your first one I think I think James kind of asked a similar question.
Speaker Change: Obviously, there is there is.
Speaker Change: Awesome.
Speaker Change: Pressures in the quarter from from additional labor in the parks and some things like that.
Speaker Change: We did have some other costs that maybe are a little bit more lumpy.
Speaker Change: But in general.
Speaker Change: The cost growth was only I believe about 2% and so there's some things we learned from the quarter as far as.
Speaker Change: Just some some staffing and some other things that we tried that will apply on a go forward basis. So we still have a lot of confidence and rigor around cost and that will continue to be obviously, a hallmark of what we do.
Speaker Change: Alright, thanks for that I appreciate it.
Speaker Change: The next question comes from Paul Golding from Macquarie Capital. Please go ahead.
Paul Golding: Yes. Thanks, so much just wanted to ask was whether becoming more consistent headwind, particularly in the core summer months and then we saw the elevated.
Paul Golding: Temperatures heat waves in Socal, and obviously the hurricanes on the East Coast wondering how your view around operating days may be evolving here is there an opportunity or are you considering.
Paul Golding: Maybe driving concentration of visits on a closing basis on certain days when weather is good just trying to understand how you may be strategizing around whether now that we've seen a few years it really consistent headwinds from this thank you.
Speaker Change: Yes, Thanks, Paul I appreciate the question so look I mean.
Speaker Change: Weather has been and certainly.
Speaker Change: A problem in the last several years here and I think there is some things.
Speaker Change: We are doing to address that but I would also remind you I think over over the long term I mean I've been in the business quite a long time I do think these things will normalize out I mean, if you want to even just here in the last couple of weeks post Hurricane Milton now the weather has been pretty good in our locations. So yes.
Speaker Change: I'm optimistic it will eventually normalize.
Speaker Change: Until that time in recognition that we.
Speaker Change: We have had some tougher times in the recent years, we're trying to do more indoor attractions. For example, so we have an indoor traction coming to Seaworld Orlando next year.
Speaker Change: The attraction we opened this year in Orlando has has an indoor component to it as well and then we have we've invested in shade structures, we've invested in.
Speaker Change: Drink programs, where you can.
Speaker Change: Have drinks all day and stay cool and things like that so there's different things we're doing.
Speaker Change: Im certainly not listing all of them, but there are things we are doing in recognition that we want people to come here.
Speaker Change: Regardless of.
Speaker Change: The weather and make it comfortable for them.
Speaker Change: Pointed out on the on the days, where you have good weather, obviously, we like the idea of kind of <unk>.
Speaker Change: <unk> the peaks of the weather's really good try to try to get it.
Speaker Change: People to come to the park and there is there's a lot of economies of scale. When we have more people in the park. For example, so all things that we're considering but I would leave you with I do think these things do normalize over over some period of time, but we are taking actions.
Speaker Change: In the immediate term here.
Speaker Change: Thanks, Mark and then as a follow up around discovery Cove, given the strengths in.
Speaker Change: Bookings versus prior year.
Speaker Change: What is generally.
Speaker Change: Lower capacity, but higher yielding product how do you. How are you thinking about this type of product category. Obviously discovery Cove is some traction in enough itself, but when we think about the appetite for higher yielding type of visit but maybe a lower capacity type product how are you.
Speaker Change: Thinking about that mix in the context of getting visitors and maybe.
Speaker Change: The weather is part of that conversation as well thanks.
Speaker Change: Yes, I mean, what I would tell you is.
Speaker Change: Discovery Cove, a wonderful park.
Speaker Change: It's one of the top rated theme parks you can go you can go visit.
Speaker Change: It is.
Speaker Change: All inclusive Oasis is I hate to call. It this is a great experience.
Speaker Change: And certainly has attracted.
Speaker Change: Quite a following over the years it is limited capacity.
Speaker Change: To your point and I think we have opportunities there.
Speaker Change: Especially around dynamic pricing, where we can price more on peak days and then there might be days in the shoulder seasons or weekdays that park is essentially open year round, where we might.
Speaker Change: Be willing to do so.
Speaker Change: <unk> increased prices over the prior year, but but less of them.
Speaker Change: And then what you would pay in the peak so we like our ability to kind of manage that park I do think also to the extent.
Speaker Change: International attendance comes back more or more international attendance happens in Orlando next year, which would.
Speaker Change: Perhaps reasonable with epic opening.
Speaker Change: Discovery Cove has been a pretty popular park with international guests. So that's another I think it's something in its favor.
Speaker Change: With internationals.
Speaker Change: The next question comes from Eric Wold from B Riley Securities. Please go ahead.
Eric Wold: Thanks, Good morning.
Speaker Change: Sure.
Speaker Change: I guess looking forward into 'twenty one 'twenty.
Speaker Change: You talked about.
Speaker Change: Orlando you noted obviously the value proposition relative to peers in that in that market I guess.
Speaker Change: Thank you have room to take price on admissions over the next year or two do you expect to lean into price or be maybe a little more cautious on that to drive it pans and subsequent importance spin I guess on that also.
Speaker Change: What has been kind of the recent sensitivity to price.
Speaker Change: When you move that around.
Eric Wold: Yeah, So Eric I mean, I think I would look at a couple of things I mean, one.
Speaker Change: If youre talking specifically in Orlando.
Speaker Change: We have opportunities.
Eric Wold: We are.
Eric Wold: Still a value proposition to to universal and Disney and I think that will only continue so.
Speaker Change: As they as they get more expensive.
Speaker Change: I think it showcases our value and we have the ability to.
Speaker Change: Increase our prices over time as well so I think we feel good about the opportunity to continue to grow pricing across our cross selling Orlando, but across most of our markets in that and Thats, what we thats certainly kind of a key tenet of our strategy is to to grow pricing again.
Speaker Change: Again, we're always going to focus on total revenues. So there may be at times that we do we do different things to semi.
Speaker Change: More sales of certain products.
Speaker Change: That may not involve taking price or even discounting, but at all of the guys driving total revenue, but it certainly I think over the medium to long term, we feel our opportunity to take price will remain.
Speaker Change: Got it and then a follow up.
Speaker Change: Called out consists.
Speaker Change: Consistently on the calls.
Speaker Change: And the App.
Speaker Change: The number of downloads in the 35% increase in average transaction value for food and beverage what percentage of <unk>.
Speaker Change: Some of those transactions are currently going through the App versus pls in and where do you think that could go over the next few years.
Speaker Change: Yes.
Speaker Change: Let me just comment on the App and then and then I'll, let Jim talk about kind of the penetration but.
Speaker Change: I did also tried to emphasize in there that we're still I think early early innings of all the things the app can do and I see people using it and I think it certainly has helped helped people in but.
Speaker Change: I think theres a lot more engagement, we can do through the App and we are seeing.
Speaker Change: Like I said on the call when people do use it.
Speaker Change: For mobile ordering.
Speaker Change: They tend to buy more right. We saw that on kind of the average transaction value and we're trying to make it more available in more places.
Speaker Change: Over the over the.
Speaker Change: Near to medium term here the idea would be to make it available as many places as we can.
Speaker Change: All day, if you will so that it's not.
Speaker Change: Available at certain times of the day at certain restaurants, we want to we want to make a more permanent if that makes sense, but Jim do you want to talk about kind of the.
Speaker Change: How many people are using theater.
Speaker Change: From a penetration standpoint, youre looking at maybe almost less than a third of penetration from all others in both categories Thats, not only food and beverage, but all other things that we offer on the App, which would include.
Speaker Change: Zoom experiences or a quick qs or things like that yes, so quite a bit of room to grow it sounds like.
Speaker Change: The next question comes from Thomas <unk> from Morgan Stanley. Please go ahead.
Speaker Change: Thanks, So much a few more on the forward looking commentary the 2025 and tenant sales.
Speaker Change: Sales, you mentioned thats, taking up double digits as well.
Speaker Change: What portion of your typical attendance space.
Speaker Change: Any given quarter.
Speaker Change: Hey, Curt Perkins', two or three or.
Speaker Change: Four months in advance of the lead times changed at all.
Speaker Change: Perfect purchases and anyhow sizing how that translates into your overall visitation mix would be helpful.
Speaker Change: Look it's one of the indicators like I said.
Speaker Change: I don't know that we give out the exact number for competitive reasons, obviously, but look people people, depending who you are if you have planned.
Speaker Change: Our long planned vacation you'll probably.
Speaker Change: Those tickets.
Speaker Change: Further in advance versus somebody who is who is more from Florida. So.
Speaker Change: It's going to vary by the type of person.
Speaker Change: In the park I think just in general what we're pleased with is that more.
Speaker Change: More of those tickets are being sold and then last year at this time.
Speaker Change: But I don't know that we can give you what that translates into I don't think it's it's certainly not a lion's share of our sales or anything like that but it's one of these indicators that we have we don't have a ton of leading indicators, but it is one we have along with discovery Cove bookings and some of the other things I mentioned.
Speaker Change: Okay understood and then just maybe on the season pass update can you help us square the flat season pass units versus.
Speaker Change: The double digit on the premium pass program.
Speaker Change: Is it fair to say that premium is.
Speaker Change: Smaller, but growing as a portion of your overall pass product offering and I might have missed it but can you share any blended pricing on the season.
Speaker Change: Pass uptake so far.
Speaker Change: That is great. Thank you.
Speaker Change: Yes.
Speaker Change: Let me, let me help you with that a little bit and if Jim has anything that he can add as well if I remember when we say pass we have we have a premium passes we have our fund cards, we ever teacher passed we have a preschool pass all that kind of generically.
Speaker Change: Yes.
Speaker Change: Labeled as past and that's.
Speaker Change: The number that Jim was referencing SP as being flat rate.
Speaker Change: And so you have a couple of things.
Speaker Change: How to square that with the premium passes being up so.
Speaker Change: I think that's a good sign and that we are we are selling more of the more expensive passes the past is that the people that buy tend to be more loyal and they tend to visit more. So these are passes with benefits and as you move up to tier those benefits are increasingly better and so that's that's.
Speaker Change: Bigger total revenue play that if we saw like a fun card, which is basically.
Speaker Change: An entry level like season pass with very little benefit if any so we like the idea of selling more premium passes even if its at the expense of less fun card. So the idea would be the basis flat now, but if we can continue to grow the premium pass and kind of hold our own in the other categories. We would like to think that would expand.
Speaker Change: Over time, we will have to see we are still very early in the launch process and our sales, we'll especially ramp up as we get into next spring and things like that we have a big data coming up with with Black Friday, but.
Speaker Change: That's kind of how we think about it.
Speaker Change: The next question comes from Chris Ranke from Deutsche Bank. Please go ahead.
Chris Ranke: Hey, good morning, guys.
Speaker Change: I was hoping we could just drill down for a second on that.
Chris Ranke: Some of the Capex I know you've given the target for this year and for ranges for.
Chris Ranke: Kind of ongoing.
Speaker Change: Can you maybe give us a little bit of idea on the ROI piece.
Chris Ranke: What kind of things those or is that kind of a premium position strategy, whether it's cabanas one of the parks or something else can you just give us a little more detail on what kinds of things those might involve.
Speaker Change: Yes, Chris are you talking specifically 25 or 24.
Jim Forrester: I guess more generally I mean whenever you whenever you want I wanted Jim I mean, I'm, just trying to figure out kind of what all of that involves yeah. So generally we found a lot of opportunity in our food and beverage offerings.
Jim Forrester: <unk>.
Speaker Change: A large section of our capital spend has gone for the ROI projects and this could be generally revamping those facilities, one to provide new food and beverage offerings to update it to allow guests to be more efficient and get lines through quicker. So theres more of an opportunity to buy up to the full meal.
Chris Ranke: As opposed to go into a Carter kiosks lines are too long.
Chris Ranke: That's going to.
Chris Ranke: Take up some of that ROI capital. We're also looking at things like exit retail or either parks like we did in Sesame place before our attractions that are coming up soon or currently in progress to make sure that there is an ability to buy a tangible memory for Matt right experience and then we have a number of items as I mentioned earlier.
Chris Ranke: On the call about using technology to be more efficient in our expenses through.
Chris Ranke: Solar power through automated or reduce labor in our turn styles in our main entrances or efficiencies in our utility spend.
Speaker Change: Okay I appreciate that and then just a quick follow up <unk>.
Chris Ranke: <unk> talked a lot about some of the opportunities that are coming through the app.
Chris Ranke: But can you talk maybe a little bit about where you are on some of the dynamic pricing and whether thats going to be.
Chris Ranke: Play a bigger role in the kind of the mobile and pricing strategy going forward. Thanks.
Chris Ranke: Sure.
Chris Ranke: Dynamic pricing is something that we have.
Chris Ranke: We continue to.
Chris Ranke: Have efforts around and we do think there is going to be more and more opportunities to do that so whether it gives you a silly example, if it's on the App and you're.
Chris Ranke: So the example, but an example would be if youre on the App.
Chris Ranke: And Youre in the park and you are standing in line.
Chris Ranke: <unk>.
Chris Ranke: Maybe it's longer than you'd like to weigh it or you don't have a lot of time.
Chris Ranke: Alright here now you can buy a front of the line pass through the App right and depending on how busy today as we can dynamically price that accordingly. So that's I think a pretty simple example, so you have some some components around using the app to do things like that or or even other other other.
Chris Ranke: Areas and then I think just outside of the App even half.
Chris Ranke: Dynamic ticketing opportunity. So the price you pay to come to our park again, we can we can flex that certainly at times and the more dynamic we can get on that I think will help us over time. So it's certainly something that we will continue to focus on going forward.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Marc Swanson for closing remarks.
Marc Swanson: Okay. Thank you.
Marc Swanson: Jim and the rest of the management team at United Parks and resorts want to thank you for joining US. This morning as you heard today, we are confident in our long term strategy, which we believe will drive improved operating and financial results and long term value for stakeholders.
Chris Ranke: Thank you and we look forward to speaking with you next quarter.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.