SeaWorld Entertainment Profit Declines - Update

(RTTNews) - Theme park operator SeaWorld Entertainment Inc (SEAS) Wednesday reported a lower third-quarter profit, hurt by an 8 percent drop in revenues as customer attendance waned. Quarterly earnings missed Wall Street estimates, while sales were a tad above expectations.

SeaWorld shares slid more than 12 percent in morning trade on the New York Stock Exchange, following the news.

Attendance continued to be under pressure amid a tough year, said Jim Atchison, SeaWorld's chief executive officer. Atchison said the company is taking steps to meet its short-term challenges.

SeaWorld, based in Orlando, Florida, posted quarterly net income of $87 million or $1.00 per share, compared with $120.7 million or $1.34 per share last year.

Excluding items, adjusted earnings for the quarter were $1.01 per share.

On average, 12 analysts polled by Thomson Reuters expected earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the third quarter slid to $495.8 million from $538.4 million in the prior year. Analysts expected revenues of $495.4 million for the quarter.

Results were impacted by a 5.2 percent drop in attendance, along with a 2.9 percent decline in total revenue per capita.

For fiscal year 2014, SeaWorld continues to expect revenues to decline 6 to 7 percent, while analysts currently project a drop of 6.4 percent.

SEAS is trading at $16.33, down $2.27 or 12.20%, on a volume of 4.7 million shares.