SeaWorld Entertainment, Inc. (NYSE:SEAS) Q1 2019 Earnings Conference Call Transcript

May 07, 2019 • 09:00 am ET


SeaWorld Entertainment, Inc. (NYSE:SEAS) Q1 2019 Earnings Conference Call Transcript


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Good morning, and welcome to the SeaWorld Entertainment First Quarter 2019 Earnings Conference Call. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will a opportunity to ask questions. Please note, this event is being recorded.

I would now like to turn the conference over to Matthew Stroud, Vice President of Investor Relations. Please go ahead, sir.

Matthew V. Stroud

Thank you, and good morning, everyone. Welcome to SeaWorld's first quarter 2019 earnings conference call. Today's call is being webcast and recorded. A press release was issued this morning and is available on our Investor Relations website at Replay information for this call can be found in the press release and will be available on our website following the call.

Joining me this morning are Gus Antorcha, Chief Executive Officer; and Marc Swanson, Chief Financial Officer. This morning, we will review our first quarter 2019 financial results, and then we will open up the call to your questions.

Before we begin, I would like to remind everyone that our comments today will contain forward-looking statements within the meaning of the federal securities laws. These statements are subject to a number of risks and uncertainties that could cause actual results to be materially different from those forward-looking statements, including those identified in the Risk Factors section of our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. These risk factors may be updated from time-to-time and will be included in our filings with the SEC that are available on our website. We undertake no obligation to update any forward-looking statements.

In addition, on the call, we will reference adjusted EBITDA, which are non-GAAP financial measure. More information regarding our forward-looking statements and reconciliation of adjusted EBITDA 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.

Now I would like to turn the call over to Gus Antorcha. Gus?

Gustavo Antorcha

Thank you, Matthew. Good morning, everyone, and thank you for joining us. Today marks my third month at the company, and I'm pleased to report solid first quarter financial results. For the fifth consecutive quarter, we saw organic growth in attendance, revenue and adjusted EBITDA. We grew attendance and total revenue in the first quarter compared to the prior year despite unfavorable weather and the shift of Easter and some school spring breaks from the first quarter to the second quarter this year.

We believe our first quarter results were primarily driven by the continued implementation of our improved marketing and communications initiatives and new pricing strategies, the positive guest reception of our new rides, compelling attractions and events, and the continued realization of our cost reduction and cost efficiency initiatives. We continue to see success with our season pass program. We believe our season pass offerings provide some of the best value in the industry, and we believe we are doing a better