United Parks & Resorts Q4 2024: Conflicting Signals on Financial Projections, Attendance Trends, and Pricing Strategies

These are the key contradictions discussed in United Parks & Resorts Inc.'s latest 2024Q4 earnings call, specifically including: Financial Projections, Attendance Trends, and Pricing Strategy:



Operational Challenges and Weather Impact:
- United Parks & Resorts reported near record attendance and record in-park per capita for Q4 and the fiscal year 2024, despite meaningfully worse weather impacting the results.
- The combined impact of Hurricanes Debbie in August, Helen in September, and Milton in October resulted in approximately 167,000 guests lost in the fourth quarter and 432,000 guests for the fiscal year.
- Adjusting for these impacts, the company estimated a 2% increase in Q4 attendance and a 2% increase in fiscal year 2024 attendance compared to the prior year.

Financial Performance and Share Repurchases:
- United Parks & Resorts repurchased 9.4 million shares in 2024, approximately 15% of total shares outstanding, underscoring their cash flow generation and commitment to returning excess capital to shareholders.
- The company's net total leverage ratio was 2.94x at the end of Q4 2024, with approximately $798.4 million in total available liquidity.
- These actions reflect a strong balance sheet and the company's confidence in their business and growth prospects.

Strategic Growth Initiatives:
- United Parks & Resorts plans to invest in new rides and attractions, popular events, and improved in-park venues across their parks, with significant investments in their Orlando park.
- Notable attractions include a new immersive flying experience in Orlando, a new family-friendly realm in San Antonio, and a new realm featuring the longest family inverted coaster in North America in Busch Gardens Williamsburg.
- These initiatives are expected to drive new and repeat visitation, contributing to future growth and increased shareholder value.

Capital Allocation and CapEx Outlook:
- The company expects to spend approximately $150 million to $175 million on core CapEx and up to $50 million on expansion and ROI CapEx in 2025.
- This aligns with a disciplined capital spend strategy focusing on maintaining park quality, driving growth, and managing costs.
- The company also emphasized a commitment to returning excess cash to shareholders when it makes sense, supported by strong free cash flow generation and a disciplined capital allocation philosophy.