Q1 2025 United Parks & Resorts Inc Earnings Call
[music]
Good day and welcome to.
Did the United Parks and resorts first quarter 2025 earnings conference call.
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Speaker Change: I would now like to turn the conference silver to Matthew Stroud from Investor Relations. Please go ahead.
Thank you and good morning, everyone welcome to unite at parks and resorts first quarter earnings Conference call today's call is being webcast and recorded.
Speaker Change: The press release was issued this morning and is available on our Investor Relations website at Www, United Parks investors Dot com.
Speaker Change: Replay information for this call can be found in the press release and will they be.
Speaker Change: The available on our website following the call.
Unspecified Person: Joining me. This morning are Marc Swanson, Chief Executive Officer, and Jim <unk>, Chief Financial Officer and Treasurer.
Unspecified Person: This morning, we will review our first quarter financial results and then we will open the call to your questions.
Unspecified Person: 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.
Unspecified Person: 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 factors section of our annual report on Form 10-K, and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.
Unspecified Person: 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. We undertake no obligation to update any forward looking statements.
Unspecified Person: In addition on the call we May reference non-GAAP financial measures and other financial metrics, such as adjusted EBITDA and free cash flow.
Unspecified Person: 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.
Unspecified Person: Now I would like to turn the call over to our Chief Executive Officer, Marc Swanson Marc.
Marc Swanson: Thank you Matthew good morning, everyone and thank you for joining us.
Marc Swanson: We are pleased to report another quarter of strong financial results.
Marc Swanson: Results in the first quarter were negatively impacted by the timing of Easter and spring break holidays moving into the second quarter of this year compared to being in the first quarter last year.
Marc Swanson: The shift of Easter and spring break from the first quarter to the second quarter also impacted admissions per capita and in park per capita as peak operating days that usually come with higher relative pricing in guest spending also shifted from the first quarter to the second quarter this year as compared to prior year.
Marc Swanson: Despite the negative calendar shift in park per capita spending increased 1.1% during the first quarter to a record level and has now grown for 19 of the last 20 quarters.
Marc Swanson: First quarter results were also impacted by certain timing related impacts that.
Marc Swanson: That resulted in over $5 million more of certain expenses being recorded in the first quarter of 2025 compared to the first quarter of 2024.
Marc Swanson: We're also pleased to report that April 2025 attendance was up eight 1% compared to April of 2024.
Marc Swanson: As we look ahead to the remainder of the year. We are excited about the significant investments we have made across our parks.
Marc Swanson: And businesses and business, including the incredible lineup of new one of a kind rides and attractions popular events.
Marc Swanson: Proved in park venues and other offerings across our parks.
Marc Swanson: We're also encouraged by the 2025 bookings for our discovery Cove property.
Marc Swanson: Our 2025 group bookings and our 2025 international ticket sales.
Marc Swanson: All of which are running ahead of 2024.
Marc Swanson: With approximately 75% of our historical attendance and revenue opportunity still ahead of US as of April 30th 2025, We continue to expect New records in revenue and adjusted EBITDA in.
Marc Swanson: In 2025.
Marc Swanson: We strongly believe we have a clear opportunity to drive substantially more attendance and total per capita spending and have high confidence in our ability to continue to deliver operational and financial improvements that we expect will lead to meaningful increases in shareholder value.
Marc Swanson: Finally, I want to thank our ambassadors for their ongoing efforts as we prepare for what we anticipate will be another busy summer season.
Marc Swanson: For 2025, we have an exciting lineup of new rides attractions events and new and improved.
Marc Swanson: Embark venues and offerings with something new and exciting across our parks.
Marc Swanson: Our new rides and attractions included the following.
Speaker Change: She wrote San Diego debuted jewels of the sea in March and immersive, new aquarium experience featuring multiple galleries, including one of the largest jelly cylinders in the country and an engaging multi media component.
Marc Swanson: The Park also announced the reinvention of journey to Atlanta Sandy.
Marc Swanson: San Diego's first coaster, which will honor the beloved original while introducing new storytelling and thrill elements.
Marc Swanson: Yeah.
Marc Swanson: Seaworld San Antonio launched rescue Junior in March an all new Kid friendly realm celebrating animal rescue.
Marc Swanson: The area features themed rides interactive plays islands, and a water and a water play area designed for young adventurers.
Yeah.
Marc Swanson: So estimate place Philadelphia kicked off its 45th birthday celebration in April.
Marc Swanson: Offering guests birthday themed fun, all spring and summer.
Marc Swanson: Fan favorite entertainment has been refreshed with celebrity seller Detroit twist, including the return of the popular Sesame Street first day parade.
Marc Swanson: She wrote Orlando opened expedition Odyssey on May 9th Groundbait, breaking family friendly attraction that plant somatic storytelling with the right technology to transport gas on an unforgettable journey from the top of the world to the oceans depths.
Marc Swanson: The remaining new attractions include the following bush.
Speaker Change: Busch Gardens Williamsburg, we will open the big Bad Wolf, the Wolf's revenge longest family inverted coaster in North America will take riders through over 2500 feet of track at speeds up to 40 miles per hour.
Marc Swanson: But our country USA will open high tide Harbor, and all new multi level waterfall structure designed for families to explore together.
Marc Swanson: This exciting area features over 100 interactive water elements, including canons, sprayers, and tipping fountains and Sri endless fun for kids of all ages.
Marc Swanson: With vibrant and dynamic water activities high tide harbor promises to be the ultimate family friendly destination for staying cool.
Marc Swanson: Bush Gardens, Tampa Bay will open wildly Oasis and all new ROM featuring the sights and sounds of the rainforest and newly re imagine drop tower, featuring digital and sound effects and interactive waterflood Wonderland, a multilevel climbing canopy and an all new multi species animal habitat for.
Marc Swanson: <unk> close encounters.
Speaker Change: Now, let me give a brief update on just some of our strategic initiatives.
Speaker Change: First on hotels are work and discussions continue we have nothing new to report today, but continue to work through various options and with various potential partners. We are excited about the prospect of integrating branded hotels into our parks and the expected positive benefits.
Speaker Change: Second on real estate as we have discussed we own over 2000 acres.
Speaker Change: The valuable real estate in desirable locations, including approximate 400 acres of undeveloped land adjacent to our parks, including significant development land in Orlando.
Speaker Change: We continue to have discussions with various potential partners as we explore ways to unlock the value.
Speaker Change: This is very valuable real estate, we do not believe that the public markets have or are appropriately, giving credit to these attractive and valuable 100% owned real estate assets.
Speaker Change: Third on sponsorships, we have been actively working over the past several months and various sponsorship opportunities that leverage our valuable assets and customer database. As a reminder, we have over 21 million annual visitors across our product portfolio and the average length of stay is over six hours.
Speaker Change: In recent years, we have not pursued nor had meaningful sponsorship partnerships.
Speaker Change: Clearly we have been missing this opportunity.
Speaker Change: <unk> late last year, we formalized a partnership with a third party group and dedicated internal resources to pursuing this opportunity.
Speaker Change: Since then we have had meaningful discussions with several potential sponsors.
To have exciting announcements in the coming months.
Speaker Change: The reception from potential sponsors has been good given our annual visitation.
Speaker Change: Mcgavock, we attract and related opportunities to target. These guests through our CRM database and other methods.
Speaker Change: We expect these opportunities.
Speaker Change: Opportunities will exceed $20 million over time.
Heart and high margin revenue of which we expect to realize mid to high single digits in 2025.
Speaker Change: Fourth on international we continue discussions with multiple partners on this front in various geographies and look forward to sharing more with you in the near future.
Speaker Change: Fifth on IP partnerships, we continue our active discussions with various partners to bring their globally recognized IP to our parks in new rides attractions and our other.
Speaker Change: Other exciting activations.
Speaker Change: Yes.
Speaker Change: Finally on our other initiatives, including park enhancements technology investments CRM and mobile App among other things.
Speaker Change: All are moving forward and we expect will help drive growth and financial improvements over the coming quarters and years.
Speaker Change: Very excited about the significant investments, we are making and in many initiatives we have underway across our business that we expect will improve the guest experience allow us to generate more revenue and make us a more.
Speaker Change: Efficient and more profitable enterprise.
Speaker Change: We are building, an even stronger and more resilient business that we are confident and expect we will deliver improved operational and financial results and meaningful increases in shareholder value.
Speaker Change: Let me briefly comment on our balance sheet, which continues to be strong on March 31, 2025, net total leverage ratio is three one times and we had approximately $764 million of total available liquidity.
Including approximately $76 million of cash on the balance sheet in advance of us starting our summer season, where we generate a majority of our cash flow.
Speaker Change: This strong balance sheet gives us flexibility to continue to invest in and grow our business and to Opportunistically allocate capital with the goal of with the goal to maximize long term value for shareholders.
Speaker Change: During the first quarter, we repurchased 100000 shares for an aggregate total of approximately $4.6 million.
Speaker Change: Yeah.
Speaker Change: We know buybacks are on the mind of many of our investors.
Speaker Change: And while we don't have anything specific to announce today.
Speaker Change: I can tell you that our board.
Speaker Change: <unk> believes our shares are materially undervalued and that purchasing our shares at or near current levels is an extraordinary opportunity.
Speaker Change: I can also tell you that the.
Speaker Change: <unk> is working through various governance and other considerations and should have something to announce in the coming weeks.
Speaker Change: I would add from the management team, we have significant confidence in our business and our prospects.
Speaker Change: And along with the board believes strongly that our shares are materially undervalued.
Speaker Change: Finally, while we recognize.
Speaker Change: There has been economic uncertainty in recent weeks and while this may or may not continue going forward.
Speaker Change: I want to remind you all that we have a proven and time tested resilient business model.
Speaker Change: And offer a great value proposition to our guests.
Speaker Change: As a reminder, approximately 90% of our guests come from the United States.
Speaker Change: And the majority are within driving distance to our parks.
Speaker Change: Based on the seasonal nature of our business, we have approximately 75% of our attendance and revenue opportunity still ahead of us as of April 32025.
Speaker Change: Along with the coming opening of more of a ride attraction in that lineup and all the initiatives that we have underway give us continued confidence in our ability to achieve new records in revenue and adjusted EBITDA for 2025.
Speaker Change: With that Jim will now discuss our financial results in more detail Jim.
Jim: Thank you Mark and good morning, everyone.
Jim: During the first quarter, we generated total revenue of $286 $9 million, a decrease of $10 $5 million or three 5% when compared to the first quarter of 2024.
Jim: The decrease in total revenue was primarily a result of decreases in admissions per capita.
Jim: And attendance, partially offset by an increase in in park capital spending.
Jim: Attendance was negatively impacted by an unfavorable calendar shift.
Jim: With the later timing of Easter and spring break holidays, when compared to the prior year.
Jim: Attendance for the first quarter.
Jim: 2025 decreased by approximately 59000 guests.
Jim: Or one 7% when compared to the prior year quarter.
Jim: The decrease in attendance was primarily due to Easter shifting into the second quarter compared to the prior year.
Jim: The Easter shift impact was approximately 140000 gas, which adjusting for this impact attendance would have increased by approximately 2%.
Jim: We look at the year to date attendance through April we're seeing approximately one 3% growth on a fiscal basis and greater than that on a day for day basis, indicating a healthy start to the year.
Jim: In the first quarter of 2025 total revenue per capita decreased one 8%.
Jim: Admission per capita.
Jim: Decreased four 2% and in park per capita spending increased one 1%.
Jim: Admission per capita decreased primarily due to the impact of the admissions product mix and lower realized pricing on certain admissions products due in part to the shift of peak visitation days in the first quarter to the second quarter.
Jim: In Park per capita spending increased primarily due to the impact of increased volume for certain in park offerings when compared to the first quarter of 2024.
Jim: Operating expenses decreased $3 $6 million or two 2% when compared to the first quarter of 2024.
Jim: The decrease in operating expenses is primarily due to a $4 $6 million decrease in certain noncash adjustments when compared to the prior year quarter.
Jim: Selling general and administrative expenses decreased $3 $7 million or seven 8% compared to the first quarter of 2020 for.
Jim: The decrease in selling general and administrative expenses, primarily due to a 3 million dollar decrease in third party consulting costs, including approximately $2 $1 million of nonrecurring costs for strategic initiatives when compared to the prior year quarter.
Jim: We reported a net loss of $16 $1 million for the first quarter compared to a net loss of $11 $2 million in the first quarter of 2024.
Jim: And we generated adjusted EBITDA of 67 $4 million, a decrease of $11 $7 million when compared to the first quarter of 2024.
Jim: <unk> EBIT declined due to a decrease in revenues from the calendar shifts previously mentioned the timing of certain expenses and decreases in add back expenses used to calculate adjusted EBITDA relative to prior year to the prior year quarter.
Jim: More specifically first quarter results were negatively impacted by certain timing related impacts that resulted in over $5 million of expenses being recorded in the first quarter of 2025 as compared to the first quarter of 2024.
Jim: These expenses related to approximately $3 million of cost.
Jim: That impacted the first quarter this year that generally impacted future periods in the prior year and approximately $2 million of expense increase this year versus prior year due to credits in prior years that were not repeated this year.
Jim: Now turning to our balance sheet. Our March 31, 2025, net total leverage ratio is three one times and we had approximately $764 million in total available liquidity, including approximately $76 million of cash on the balance sheet.
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 the long term value for shareholders.
Jim: During the first quarter, we repurchased 100000 shares for an aggregate total of approximately $4 $6 million.
Jim: As Mark said and I'll reiterate we believe our shares are undervalued and attractively priced at current levels and beyond.
Jim: Our deferred revenue balance as of the end of March was $195 $9 million deferred revenue decreased approximately six 7% when compared to March of 2024.
Jim: As a reminder, our deferred revenue balance contains a number of products, including ticketing vacation packages annual and season passes and ancillary products.
Jim: In March 2025, our pass base, including all pass products was down approximately 2% compared to March 2024.
Jim: Although we are pleased that we are seeing realized price increases on our premium pass products compared to the prior year.
Jim: We believe we have our best past benefits program ever, which we expect will drive additional increases in pass sales and a strong pass base for this year, especially now that we are in the peak advertising and selling season.
Jim: We spent $56 $9 million on Capex in the first quarter of 2025 of which approximately $49 $9 million was on core capex and approximately $7 $1 million on expansion and our IRI our ROI projects.
Jim: For 2025, we expect to spend approximately $175 million to $200 million on core capex and approximately $50 million of capex on growth and ROI projects.
Marc Swanson: Now, let me turn the call back over to Mark who will share some final thoughts Marc.
Speaker Change: Yeah. Thanks, Jim.
Speaker Change: Before we open the call to your questions I have some closing comments.
Speaker Change: In the first quarter of 2025, we came to the aid of 205 animals in need over our history, we have helped over 42000 animals, including bottle nose Dolphins.
Speaker Change: Manatees Sea Lions seals sea turtles sharks birds and more.
Speaker Change: I'm really proud of the team's hard work and their continued dedication to these important rescue efforts.
We're certainly excited about 2025 with the exciting lineup.
Speaker Change: New rides attractions and events some of which have already opened with the remainder scheduled.
Speaker Change: To open before the summer.
Speaker Change: I want to thank our ambassadors for their dedication and commitment as we pair prepare for what we believe will be an exciting and busy summer season.
Speaker Change: We continue to believe there is significant significant additional opportunities to improve our execution.
Speaker Change: <unk> advantage a clear growth opportunities.
Speaker Change: Continue to drive meaningful long term growth in both revenue and adjusted EBITDA to.
Speaker Change: We continue to have high confidence in our long term strategy and our ability to deliver significantly improved operating and financial results.
Speaker Change: Which we expect will lead to meaningfully increase value for stakeholders.
Speaker Change: Now, let's take your questions.
Speaker Change: We will now begin the question and answer session.
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Speaker Change: Please limit yourself to one question and one follow up question.
Speaker Change: You have further questions you may reenter the queue.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: The first question comes from Steve Rucinski with Stifel. Please go ahead.
Steve Rucinski: Hey, guys good morning.
Speaker Change: So mark wanted to ask about how you guys are thinking about.
Speaker Change: The rest of the year you, obviously, you mentioned youre kind of still expecting that record in terms of revenues and EBITDA, but if we think about the first quarter EBITDA loss being probably a little bit more than expected. Some of that is due to cost timing I understand but can you help us think about bridging getting from that first quarter loss of over <unk>.
Speaker Change: Let's call. It 725 730 million in EBITDA, whatever whatever number you want to think about and look I understand you'd noted advanced bookings remained strong.
Speaker Change: But you've got that big opening in the next couple of days uncertainty around the consumer. So just just wondering maybe give a little bit more color around what gives you guys. So much confidence.
Speaker Change: You're in kind of getting into those records into that record territory.
Speaker Change: Sure Steve I can take that question I think the first thing I would point to.
Speaker Change: Is the performance in April.
Speaker Change: And that was that was strong and you heard Jim mentioned.
Speaker Change: Tenants was up.
Speaker Change: Over 8% on a physical basis, it was actually up more.
Then that on a day to day basis, which on a day to day kind of lines up like days.
Speaker Change: So if you look year to date at the end of April on a day to day basis, our attendance is up over 3%.
Speaker Change: Kind of how we gauge the attendants, we look at it.
Speaker Change: Lineup to like days at the end of April year to date up over 3%. If you kind of carry that 3% forward the rest of the year.
Speaker Change: You know if we're able to do that you can kind of do the resulting math if we were to grow attendance, 3% for the full year you can do the math on what on what that drive. So I think that that's certainly one thing I would point to and this is ahead of the new rides and attractions that are largely.
Speaker Change: You know in some some of our parks still that still to come some have opened obviously and we've seen I think we've been pleased with what we've seen but we still have new things to come.
Speaker Change: Horizon attractions, we have some other new elements coming in other parts of our parks as well, whether it's new entertainment.
Speaker Change: More Aqua Globe events for example that type of thing. We also you know without getting into specifics I think we we saw a.
Speaker Change: A little bit better performance on the admissions per cap and in April than what the what the quarter showed and theres some strategies in place to hopefully.
Speaker Change: Hopefully you get that to a better spot rate. So we don't we don't like being down to where we were in Q1. We know that was influenced obviously in part by the timing of Easter and spring break and things like that but we certainly recognize there is opportunity to do better there and we have some plans to do that.
Speaker Change: We're still have our peak pass.
Past selling season.
Speaker Change: Ahead of us or we're kind of just starting that now.
Jim: As a as Jim mentioned.
Speaker Change: And then finally, yes.
Speaker Change: Really the opportunity that we believe are having an epic in town.
Speaker Change: It's going to bring more people to Orlando and we've talked about this and we like the idea of a compelling.
Speaker Change: And good assets coming to the area, which we think is going to drive more people here. So we need to take advantage of that we view that as an opportunity and something we've been working on for some time to do that obviously and we have our own our own strategies and if you look at like the ride. We just opened here in Orlando, It's a X.
Speaker Change: <unk>, it's a very cool experience it has a animal component to it that is again differentiate it from what you would see at Universal and that's something that we'll continue to point out to people, we have some other things coming as well.
Speaker Change: I guess, just a couple of things I'd hit on the sponsorship opportunity I talked about in my prepared remarks.
Speaker Change: We've been pleased with the reception we've received from people that we've been talking to we think again, that's mid to high single digits here in 2025, and then the cost work that I'm sure Jim will talk about more in some of these questions, but if you look at our our cost performance.
Speaker Change: In Q1, especially when you look at the cost we used to calculate adjusted EBITDA I think we've done a good job of managing.
Speaker Change: Of those costs and that's something that we'll continue to do so a very long way of saying.
Speaker Change: I think if you kind of put all those numbers together.
Speaker Change: That gets you to those to those records, obviously, 75% of the year to go so still a long way to go and we will.
Speaker Change: Date, you in August to see if we're still on pace to do that.
Speaker Change: But that's kind of how we're thinking about it.
Speaker Change: Okay.
Speaker Change: That's really good color I really really appreciate that and then if we could dig into to April maybe a little bit more. So you you talked about the 8% increase.
Speaker Change: In attendance.
Speaker Change: Obviously, the first quarter had a negative impact from Easter and spring break. So just just wondering if you kind of breakdown.
Speaker Change: Maybe how much April benefited from that and also just trying to understand if you know through April through May.
Speaker Change: In terms of customer spend once they're inside our parks have you know have you guys seen any material change in terms of folks.
Speaker Change: Pulling back or spending less.
And then I assume you haven't had to use any kind of discounting tactics to get people into the parks because I think Mark you said April your attendance per caps were actually up so just to make sure I have.
Speaker Change: All that stuff's kind of right.
Speaker Change: Yeah, Let me let me let me help you.
Speaker Change: So first just I think what I said on the admissions per caps as if they were they were better than April it wasn't.
Speaker Change: Implied that they were positive, but they werent they werent they weren't down what they were in.
And in the quarter, but.
Speaker Change: <unk>.
Speaker Change: We got it right.
Speaker Change: When we when we report Q2, we'll have a lot more on that because per caps can.
Speaker Change: <unk> move around a little bit within the quarter, given some of the timing of certain adjustments related to like deferred revenue and things like that.
Speaker Change:
Speaker Change: But really I think probably the simplest way to explain this maybe is the the April performance that we saw on kind of a day to day on a day to day basis was was I think more than what the Easter benefit was right. So we not only got the Easter benefit, but I think we got.
Speaker Change: More more attendants on top of that as well and that gives us some optimism that not only did we benefit as we expected from from the timing of Easter, but we had some additional attendants on top of that so hopefully hopefully that helps you.
Speaker Change: Are there.
Speaker Change: Our next question.
Speaker Change: Sorry go ahead.
Speaker Change: Okay, I hope I got it all Steve if not we'll catch up.
Speaker Change: Thank you question. Please.
Speaker Change: Our next question comes from James Hardiman with Citigroup. Please go ahead.
Speaker Change: Hi, This is Sean Wagner on for James Hardie, and then I guess, just one really quick follow up on all of that.
Speaker Change: I guess, what the April revenue.
Speaker Change: You've kind of given us what admissions per caps looked like in April.
Speaker Change: Did in park per caps were they similar to <unk> I guess, how does the year to date or April revenue look like compared to <unk>.
Speaker Change: Last year.
Speaker Change: Yeah, I mean again and these are preliminary revenue numbers, because it kind of as I was pointing out on the prior question.
Speaker Change: We do tend to look at these things more on a quarterly basis, especially with admissions revenue given some of the shifting that can go on but I think what I can tell you is.
Speaker Change: And in park per cap in park per cap was was positive for April.
And maybe the part of Steve's question that I didn't get to that I should have was have we seen any.
Speaker Change: Pullback.
Speaker Change: In the in the per cap and in April and so in park per cap.
Speaker Change: Was up in April.
Speaker Change: Okay.
Speaker Change: Are there any other calendar related comparisons we should be thinking about for the rest of the year. Our operating days are expected to be relatively flat this year or do you get some back because of adverse weather last year.
Speaker Change: I think for full year is roughly flat I think we've got a couple of trades still between some of the quarters, but when you look at the full year at relatively flattens out yes.
Speaker Change: Yes.
Speaker Change: To your point, we will pick up like he said some weather days.
Speaker Change: Later in the year, because we had.
Speaker Change: Some pretty meaningful closures last year around hurricane Milton.
Speaker Change: In Q4.
Speaker Change: Our next question comes from <unk> Kocharyan with UBS. Please go ahead.
Kocharyan: Hi, good morning. Thank you so much for taking my question.
Speaker Change: You know some competitors in the market has talked about a little bit weaker international sales in Q1 and going into Q2.
Speaker Change: And it sounded like you are not seeing that youre seeing that up year over year, which is great could you maybe talk a little bit about the dynamics youre seeing.
Speaker Change: Did you see any change in behavior or kind of as you progressed through the quarter.
Speaker Change: Given kind of some of the macro developments I think you had guided previously international sales growth being up mid single digits today's release mentions.
Speaker Change: Up.
Speaker Change: But yes, it doesn't say mid single digit just an update to that number if you have it and then on group bookings.
Speaker Change: We're also I think running ahead of last year I think.
Speaker Change: Because if I'm not mistaken if you. It seems like you are still up year over year, but just how much if you could update that that'd be that'd be great. Thank you.
Speaker Change: Yes, let me comment a little bit on on international so the the ticket sales international are up.
Speaker Change: No.
Speaker Change: Say low low low single digits. So.
Speaker Change: And just keep in mind.
Well, that's good don't get me wrong.
Speaker Change: We don't we don't rely.
Speaker Change: As much on international attendance as maybe people think we do.
Speaker Change: Last year I think it was right around six or 7% of our total attendance. If you go back to pre Covid. It was about 10% of our total attendance. So.
That market.
Speaker Change: Perhaps softens like like you said like a lot of people have been saying.
Speaker Change: Not ideal, but I don't think it has as.
Speaker Change: As big of an impact for us given that we generally don't have international as much of our attendance and candidly.
Speaker Change: We werent, probably optimizing that attendants to begin with and for a variety of reasons and I think we've made some changes there.
They do a better job of.
Speaker Change: Servicing.
Speaker Change: And getting more international visitation, So we'll keep we'll keep monitoring that going forward.
Speaker Change: On the group business, we feel we feel good about the group category and I think there continues to be opportunities with the team working on that to continue to grow that.
Speaker Change: Great Great and just one quick housekeeping if I may just a follow up on that 5 million of expenses that moved into Q1.
Speaker Change: Could you just clarify which quarter they moved out of into Q1, I think you said pizza quota just trying to understand for modeling perspective, how to think about Q2 to Q4.
Speaker Change: Thank you.
Speaker Change: Yeah. The largest portion was a sudden annual maintenance that we do a we typically had been doing that in Q4, we chose to move some of that maintenance into Q1, just given that seasonally January and February are slower periods. So I expect some of the maintenance that we typically do towards the end of.
Speaker Change: The year.
Speaker Change: We've pulled that forward and got it done at the beginning of the year and then the rest was the rest of it really just odds and ends and some marketing shifts and changes that are some marketing that moved from late last year into the beginning of this year.
Speaker Change: Really around our preparation in production that we're doing on the marketing side getting ready for the summer season. So we're excited about the marketing that we have on some of it on the prepaid side and some expenses that we've already incurred ahead of that the marketing that we're doing for the busy season in the summer.
Brent <unk>: Our next question comes from Brent <unk> with Barclays. Please go ahead.
Brent: Good morning, everybody. Thanks for taking my question.
Speaker Change: So just maybe.
Brent: Thinking about weather.
Brent: I'd say its been pretty strong.
Brent: April trends.
Brent: Was that against the normal weather backdrop in April and then when you look at the rest of the year.
Brent: Outside of the Hurricanes remind us what assumptions, you're making about whether that underpin the commentary about record revenue and EBITDA.
Brent: Yes, I think four for April.
Brent: We had slight weather negative.
Brent: We didn't call it out because it wasn't a huge number but.
Brent: There was a slight negative weather impact mainly at our park in Williamsburg.
Brent: And then look for the rest of the year I think the way the way to think about it is.
Brent: We had hurricane Milton last year, we've talked a lot about that we had some other hurricanes as well.
Brent: That is.
Brent: Hopefully, we don't have something like Milton again, or the others and I'm certainly not having those as well.
Brent: You can you can do the math you can do the math on those so we're expecting kind of more normalized weather.
Brent: And that's how we.
Brent: Take our projections and we try to look at kind of more normal weather pattern. So that would that would be our assumption that we're not going to have.
Brent: Quite the things that we had last year. So we'll have to wait and see obviously, a long way to go to.
Brent: Hurricane season is just starting here shortly but we'll keep you posted.
Speaker Change: Okay. That's helpful. Thanks for that Mark and then.
Brent: Follow up would be about.
Brent: Epic I know you guys are elite monitoring.
Brent: Closely with what they're doing over in epic with regards to ticket and marketing.
Brent: I think there was a thought that they were going to.
Brent: Not habit as open to locals in year, one they opened at the locals.
Brent: You know not that do not do well or better.
Brent: A wild awhile back earlier this year.
Brent: Yes.
Speaker Change: At this point do you think that there's still a chance that the way they structured the epic tickets in this first year Christy.
Speaker Change: Somewhat of a benefit.
Brent: Or is that maybe not so much the case anymore.
Speaker Change: I mean, I think what I would I mean, we're.
Speaker Change: We're focused on our park right.
Speaker Change: And I think the benefit is really more people coming into the market. So to the extent they bring more people to the market, we have our strategies and our our methods for bringing those people to our parks and that's the that's the opportunity that that we keep talking about and so having the.
Speaker Change: The expedition Odyssey opening in Orlando recently is exciting.
Speaker Change: It's differentiated like I said, having some other things that we haven't announced yet coming in Orlando as well.
Speaker Change: Our exciting also when we're able to talk a little bit more about them, but we'll focus on our.
Speaker Change: Our value proposition our compelling product.
Speaker Change: I'm sure they have lots of different strategies.
Speaker Change: Who knows if they'll adjust them throughout the year, but we're going to focus on doing the things that.
Speaker Change: Have worked for us over.
Speaker Change: Our 50 year history here in Orlando. So we have a number of ways, we can target people and adjust them as necessary.
Chris: The next question comes from Chris <unk> with Deutsche Bank. Please go ahead.
Chris <unk>: Hey, guys. Good morning, Thanks for taking the question.
Speaker Change: Mark I was hoping maybe we could talk a little bit about kind of mix of customer and I know you mentioned that you are I think you mentioned you pass base down now to at the end of the quarter. So I mean does that imply that you guys are seeing a higher mix of kind of first timers and does that.
Chris <unk>: Reasonable expectation gone through the year, maybe compared to prior years is there any way to kind of think about that especially relative to.
Chris <unk>: Admissions per cap.
Chris <unk>: Yeah, what I would say I think.
Chris <unk>: Kind of the first three or four months here.
Chris <unk>: We have been.
Chris <unk>: Really seen more.
People from.
Chris <unk>: Markets that are driving NAND versus versus local and that would kind of make sense with without enough space.
Chris <unk>: Slightly down I will say the pass holders, we do have though.
Chris <unk>: Which is still a lot obviously.
Chris <unk>: They're visiting more more times right so that in and of itself. As you guys know just puts downward pressure on the per cap because they are coming more we.
Chris <unk>: We like that revenue trade rate.
Chris <unk>: We want people to come as many times as they can.
Chris <unk>: Hopefully they are here they are spending when they come so that'll be a dynamic that.
Chris <unk>: We will monitor throughout the year, but I think we also did some things.
Chris <unk>: In the first quarter.
Speaker Change: To attract like you said, maybe some more single day or multi day tickets.
We left some money on the table there.
Speaker Change: To be honest in and learn from that so I think we have some opportunities too.
Speaker Change: Have adjusted some of that that pricing kind of going forward or ways that we do that.
Speaker Change: Okay. Thanks.
Mark: Thanks, Mark and then as a follow up.
Speaker Change: Kind of circle back on.
Speaker Change: Hotel I know you said there is not really any new news to report.
Speaker Change: Is there something bigger that you guys are waiting on.
Speaker Change: Great.
Speaker Change: Deadline, I mean, I'm, just trying to get a sense as to whether you would characterize this as like an extended bake off or whether there is a lot going on and you guys are waiting.
Speaker Change: More specific with with one party or another.
Speaker Change: Well I think the simplest maybe way I can think about it as we have.
Speaker Change: Quite a bit of land right as I mentioned and it's it's an <unk>.
Speaker Change: <unk> that are attractive to people in.
Speaker Change: There's a lot of ways you could use that land right. So one of the ways, we'd be hotels, one of the ways could be housing.
Speaker Change: Attractions, all sorts of things.
Speaker Change: And then there is a lot of different ways to structure, even just the value of that land.
Speaker Change: The underlying value of that land.
Speaker Change: Leasebacks and things like that so.
Speaker Change: When you start talking hotel and you start talking land.
Speaker Change: Using that land, we just wanted to make sure that we get into the best structure that is best for our shareholders invest for the company and I think those discussions I've taken some time.
Speaker Change: And I think there's also <unk>.
Speaker Change: Different ways to think about that and different people proposing different things.
Speaker Change: Obviously familiar with what the makeup of our board being.
Speaker Change: Almost 50% owned by private equity and I can tell you that they get a number of inbounds.
Speaker Change: On this exact topic of land valuation and how to think about that whether it's hotels or other uses of that land or other ways to monetize that land.
Speaker Change: Yeah.
Speaker Change: The next question comes from Thomas Yip with Morgan Stanley. Please go ahead.
Speaker Change: Thanks, So much just one more on <unk> is there any early signs or tea leaves on seeing incremental traffic into the market and are you expecting to run promos or tweak your selling strategy in any way they try to capture that opportunity. Maybe just if you kind of assuming it helps or hurts that the margin in terms of what's embedded in your expectations would be.
Speaker Change: Thomas I don't know that I have.
Speaker Change: <unk> seen anything specific.
Speaker Change: I can tell you that.
Speaker Change:
Speaker Change: We expect more people will come I certainly.
Speaker Change: Again, that's what the opportunity is there is a good one because it's a good park.
Speaker Change: Strong new new attraction in the market that should bring more people and give us the opportunity to to Pickoff visitation like like we've talked about quite a bit.
Speaker Change: Sure.
Speaker Change: And again without getting into anything too competitive like we have a lot of different ways, we can attract people and.
Speaker Change: No different than other years, where we.
Speaker Change: Test and optimize different things, we do different offers different.
Speaker Change: You know ticket packages whatever it may be so I think that will always be something we do and it can be market by market Park by park, depending on what we're seeing.
Speaker Change: Okay understood and then just as a follow up some pretty helpful color on the sponsorship revenue ramp I believe Youre in park rents. Currently do you include some small licensing revenues I think like for Abu Dhabi. For example has that been a net tailwind year over year any update on how that's contributing to your in park per cap number would be helpful. Thank you.
Speaker Change: <unk>.
Speaker Change: Yes.
Speaker Change: Yes, I can I can help you on that.
Speaker Change: What I, what I, probably should have said as you know.
Speaker Change: At the at the moment.
Speaker Change: Sponsorship revenue.
Speaker Change: The large large majority of that would still be ahead of us.
Speaker Change: That is not.
Speaker Change: And the in the Q1 numbers.
Speaker Change: Abu Dhabi is largely.
Speaker Change: In line or a little bit higher than prior years, but I wouldn't I wouldn't say, that's a material increase or anything like that but.
Maybe over time.
Speaker Change: It will continue to build but I think for now.
Speaker Change: It's not a material increase.
Speaker Change: Our next question comes from Lizzie Dove with Goldman Sachs. Please go ahead.
Lizzie Dove: Hi, there. Thanks for taking the question I just wanted to ask I guess about the kind of cost impact around.
Lizzie Dove: Any kind of pressure in terms of labor.
Lizzie Dove: Labor.
Speaker Change: Wages are a little higher than yours, any wage pressure that you've seen or anticipation for kind of higher marketing spend or more events that you are putting on in Orlando that might pressure cost a little bit.
Lizzie Dove: Yeah. We are so we had planned for some labor increases.
Lizzie Dove: For minimum wage across several different markets not just ethic. We've also seen some pricing in the marketplace specific in Orlando.
Lizzie Dove: In relation to the question that Youre asking however, we have been very good at managing that from an hourly standpoint, and I think we've been very good at matching the forecasting on the on our attendance against the <unk>.
Lizzie Dove: While we need to do on the labor side to ensure that we've got the right guest experience. So.
Lizzie Dove: Through through Q1, I think the how we manage that labor and the cost there I think has been extremely solid.
Lizzie Dove: We've chewed through most of the increase in costs for many marginal rate increases and and anything that we've seen from a and from competitive forces them. So.
Lizzie Dove: So I'd say that that's gone gone pretty well.
Lizzie Dove: Got it.
Lizzie Dove: On the more on the marketing side, we had planned to increase in expense on marketing I mentioned, it earlier and I, both I think mark and myself mentioned in our and are our comments.
Lizzie Dove: We have.
Lizzie Dove: We plan to keep marketing relatively flat.
Lizzie Dove: But we've just redeployed.
Lizzie Dove: Strategically across several different markets to make sure that it was impactful in the places that we wanted at the right times for when we wanted it and that's why you saw some spending that I mentioned coming out of last year in the first quarter and some prepaid that we put on the balance sheet with respect to some production that we have planned.
Lizzie Dove: To put against some media spots that we have coming into our bigger selling season.
Lizzie Dove: So the two questions you guys think labor and marketing.
Lizzie Dove: <unk> are on track and we've been very strategic about how we're using it in the right spot.
Lizzie Dove: Got it and then just one follow up on the buyback I know you said it sounds like there was an announcement coming.
Lizzie Dove: But the pace is a little bit slow as they might have expected in the first quarter with the market.
Lizzie Dove: But just curious you know high level, how you think about you know comfortable with leverage whether you'd be willing to kind of tick up a little bit from what you all have or just how you think about capital allocation and buybacks.
Lizzie Dove: Sure.
Lizzie Dove: You can refer to my comments like you said.
Lizzie Dove: That I made earlier on that and look I think.
Lizzie Dove: As always we work very closely with the board.
On use of cash and what's the most.
Lizzie Dove: <unk> returned to shareholders and we'll continue to do that so I don't I don't have any specific comments on what that means for leverage or anything like that I mean, we're comfortable where our leverage ratio is now not not to say, we couldn't be comfortable at a different level higher or lower right. So.
Lizzie Dove: It really just comes down to what what is the best.
Lizzie Dove: Way, we can return cash to shareholders I would also point out we're going to be entering kind of our peak cash earning season here in Q2 and Q3 so.
Lizzie Dove: That'll that'll obviously be a benefit to cash building throughout the year, so more to come on that as I said hopefully in the coming weeks, Yeah, and just a reminder, too it doesn't necessarily need to be a leveraging given what mark said from a free cash flow standpoint, but that's obviously something given our balance sheet that we we could entertain and I think it is.
Lizzie Dove: And also to remember as you look back at sort of the last year, we our share count is down 9 million shares from this time last year. So when you think about the earnings power across that share base with 14% less shares.
Lizzie Dove: We're pretty we're happy with what we're doing from a performance standpoint, and where we're headed and what Mark has laid out sort of as a projection for the remainder of the year and if you think about it in the context of potentially even more.
Lizzie Dove: Downward pressure on that share count that earnings power spread across an even lower balances a is pretty attractive.
Lizzie Dove: Thank you.
Speaker Change: This concludes our question and answer session I would now like to turn the conference back over to Marc Swanson for any closing remarks.
Marc Swanson: Yeah. Thank you Darwin.
Speaker Change: On behalf of Jim and the rest of the management team of United at Parks and resorts I 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.
Marc Swanson: 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.
Speaker Change: Yeah.
Speaker Change: [music].