United Parks & Resorts Inc. · NYSE:PRKS
United Parks & Resorts — Q4 2024 Earnings Presentation
24 slides from United Parks & Resorts's earnings presentation, Feb 26, 2025
Slide 1: Q4 2024 Supplemental Materials
Q4 2024 Supplemental Materials
Slide 2: Cautionary Statements
Cautionary Statements This presentation contains “forward-looking statements” within the meaning of U.S. federal securities laws. All statements contained in this presentation other than statements of historical facts are forward-looking statements. You can identify forward-looking statements by the
Slide 3: Statement Regarding Non-GAAP Financial Measures
Statement Regarding Non-GAAP Financial Measures This presentation includes historical results prior to the Company’s initial public offering, including from periods prior to the Company being a standalone entity when it was included as a segment of its parent company at the time. These results inclu
Slide 4: Table of Contents
Table of Contents ⚫ 1 Capital Allocation ⚫ 2 Capital Spend ⚫ 3 Cash Flow Generation ⚫ 4 Strategics Initiatives Update ⚫ 5 Orlando Update ⚫ 6 Illustrative EBITDA Potential ⚫ 7 Valuation 4
Slide 5: Capital Allocation Strategy Focused on Maximizing Return on Capital
1. Capital Allocation Capital Allocation Strategy Focused on Maximizing Return on Capital ⚫ Continue ongoing maintenance spend Invest in Core ⚫ Continue cadence of new rides, attractions, shows and events in our parks creating new reasons to visit Business ⚫ Identify and execute on high conviction,
Slide 6: Disciplined Capital Spend Strategy
2. Capital Spend Disciplined Capital Spend Strategy Spend to support Revenue and EBITDA ⚫ Maintenance Capex Normalized growth in line with long- $150M - $175M Core Capex1 term base business ⚫ New Rides & Attractions Capex expected growth rates2 ⚫ High-conviction projects with 20%+ ROI (unlevered Nor
Slide 7: Capital Spend Update
2. Capital Spend Capital Spend Update ⚫ Core Capex: $178M − Last of leftover incremental spend from 2023 decisions 2024 Capex ⚫ Normalized Expansion / ROI Capex1: $50M ($248M) ⚫ Incremental Expansion / ROI Capex: $21M − Last of leftover incremental spend from 2023 decisions ⚫ Core Capex: ~$175M − On
Slide 8: 2025 Attraction Line-Up
2. Capital Spend 2025 Attraction Line-Up SeaWorld Orlando SeaWorld California To-be-Named All-New Attraction Jewels of the Sea: The Jellyfish Experience All-New Revolutionary Arctic Immersive Flying All-New Immersive Aquarium - First-of-its-Kind at Experience SeaWorld Orlando California SeaWorld Cal
Slide 9: Significant Discretionary Free Cash Flow Generation
3. Cash Flow Generation Significant Discretionary Free Cash Flow Generation ($ in millions) $700 ~75 - 80% Cash ~60% Cash Conversion 5 Conversion 5 $525 - $550 ($150 - $175) ~$400+ ($130) FY 2024 Adj. EBITDA Normalized Normalized 2024 Unlevered Interest Normalized 2024 Levered 4 Core Capex 1 Free Ca
Slide 10: Strategic Initiatives Update
4. Strategic Initiatives Strategic Initiatives Update Initiative Update 1 ▪ Excited about the opportunity to integrate hotels into our properties ▪ Taking our time to ensure we optimize our outcome – no longer plan to open first hotel in 2026 Hotels ▪ Ultimate decision will be in the best interest o
Slide 11: We've Gotten a Lot of Questions about Epic Universe
5. Orlando Update We’ve Gotten a Lot of Questions about Epic Universe 1 We are excited about the opening of Epic Universe – our new neighbor 2 We expect Epic Universe to be a great park and a great addition to the Orlando market 3 We expect the opening of the park to lead to strong visitation to the
Slide 12: Orlando Theme Parks
5. Orlando Update Our Orlando Parks Well-Positioned to Benefit from Investments in the Market PRKS Orlando Parks EBITDA1 1970's 1980's 1990's 2000's 2010's Current Orlando Theme Parks 2 5 9 11 13 14 Over the years, new park openings have continued to drive increased visitation to the Orlando area; P
Slide 13: Meaningful Opportunity To Grow Attendance By Returning To Historical Levels
6. Illustrative EBITDA Potential Meaningful Opportunity To Grow Attendance By Returning To Historical Levels Total Attendance (# in millions) +25% vs. 2024 +18% vs. 2024 +5% vs. 2024 26.9 +2% vs. 2024 25.4 22.6 22.0 21.5 2024 2024 PF(1) 2019 2008 Company All Parks At Attendance Peak(2) (1) Adjusted
Slide 14: Drivers of Future Attendance Growth
6. Illustrative EBITDA Potential Drivers of Future Attendance Growth Drivers of Future Attendance Growth ⚫ Population growth – addressable markets growing in 1 excess of U.S. national average ⚫ Improve marketing effectiveness – grow awareness, 2 increase conversion, optimize media spend ⚫ Create new
Slide 15: Drivers of Future Per Cap Growth
6. Illustrative EBITDA Potential Drivers of Future Per Cap Growth Admissions Per Cap In Park Per Cap Targeting 2-5% Illustrative Future growth per year Admissions Per Cap Illustrative Future Targeting 2-5% growth per year In Park Per Cap $43.61 $36.46 ▪ Take price every year in excess of inflation ▪
Slide 16: 2025 Cost Efficiency / Reduction Update
6. Illustrative EBITDA Potential 2025 Cost Efficiency / Reduction Update ◼ Leverage enhanced scheduling processes to drive labor efficiencies (including reduced overtime), flex labor staffing with attendance and venue volumes and improve the guest experience Labor ◼ Strategic investment to design an
Slide 17: United Parks & Resorts Illustrative Adjusted EBITDA
6. Illustrative EBITDA Potential United Parks & Resorts Illustrative Adjusted EBITDA1 Significant Adjusted EBITDA Opportunity from Optimizing Our Business Illustrative Implied Adjusted EBITDA Return to 2019 Return to 2008 2019 2024 Cost Savings Attendance Peak Attendance Attendance2 # Growth vs. 202
Slide 18: United Parks & Resorts Valuation Overview
7. Valuation United Parks & Resorts Valuation Overview ($ and shares in millions, except per share metrics) Current Share Price (2/25/25) $54.62 (x) Diluted Shares Outstanding 56 Equity Value $3,085 (+) Debt (Q4 2024A) $2,263 (-) Cash (Q4 2024A) ($116) Net Debt $2,148 Total Enterprise Value $5,232 M
Slide 19: Trading at a Significant Discount Despite Outperformance
7. Valuation Trading at a Significant Discount Despite Outperformance 2017 – 20247 Adj. EBITDA CAGR 20247 Adj. EBITDA Margin 2025E Adj. EBITDA Multiple 40.6% Peer Average: 7.5% Peer Average: 24.3% Peer Average: 11.0x 14.7x 33.3% 29.5% 29.6% 12.0x 24.7% 10.1x 10.1x 10.2x 16.0% 8.9x 13.0% 18.1% 7.5x 1
Slide 20: Implied Future Stock Price
8. Valuation Implied Future Stock Price ($ and shares in millions, except per share metrics) Implied Share Price Delta vs. Current: 146% 179% 196% 213% $162 $171 $153 $134 $55 Current 2x Discount to Theme Park 1x Discount to Theme Park Current Broad Comp Set Theme Park Peers 5-year pre- Peers 5-year
Slide 21: Key Takeaways
Key Takeaways 1 Strong 2024 performance despite unusually bad weather 2 Disciplined capital spend strategy with ~$150M - $225M in normalized annual capex spend 3 Significant discretionary free cash flow generation ($400M+) 4 Meaningful upside from executing on strategic initiatives (hotels, real est
Slide 22: Appendix
Organic Growth Opportunities Appendix
Slide 23: Reconciliation of Non-GAAP Financial Metrics
Reconciliation of Non-GAAP Financial Metrics ($ in millions) 2023 Net income $227 Provision for income taxes 64 Loss on early extinguishment of debt and write-off of debt issuance costs and discounts 4 Interest expense 168 Depreciation & amortization 163 Equity-based compensation expense 15 Loss on
Slide 24: Reconciliation of Non-GAAP Financial Metrics
Reconciliation of Non-GAAP Financial Metrics ($ in millions) Net Cash Provided by Operating Activities $480 Normalized core capex1 (150) – (175) Interest (Normalized less actual) 2 18 Nonrecurring cash costs3 26 Change in net working capital4 20 Cash taxes4 13 Normalized 2024 Levered Free Cash Flow
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