SeaWorld Q2 Misses View, Cuts Outlook; Shares Plunge 30%

(RTTNews) - SeaWorld Entertainment Inc (SEAS) Wednesday posted a profit for the second quarter when compared to last year's results which were hurt by one-time charges. Revenues declined, reflecting lower park attendance and per capita revenues. Meanwhile, shares of the theme park operator plunged 30 percent after results fell short of Wall Street estimates.

SeaWorld Entertainment reported second-quarter profit of $37.3 million or $0.43 per share, compared to a loss of $15.6 million or $0.18 per share last year.

Last year results included a $50.1 million charge on termination of advisory agreement as well as a $32.43 expense on early extinguishment of debt, write-off of discounts and deferred financing costs.

Excluding items, adjusted earnings rose to $0.43 per share from $0.41 per share a year ago. On average, 11 analysts polled by Thomson Reuters expected earnings of $0.59 per share for the quarter. Analysts' estimates typically exclude special items.

SeaWorld, which went public in April last year, said its revenue for the quarter edged down 1 percent to $405.2 million from $411.3 million last year. Analysts had a consensus revenue estimate of $445.29 for the quarter.

The decline in revenues were driven by lower total revenue per capita of $61.54, down from $62.67 last year, offset by a 0.3 percent improvement in attendance reflecting favorable weather and shift in Easter timing.

"We were pleased to report attendance growth in the quarter despite a challenging industry and competitive environment and a tough comparison to the prior year quarter, which included the attendance benefit from opening our largest expansion ever at SeaWorldOrlando," said CEO Jim Atchison.

The company said it believes attendance in the quarter was impacted by demand pressures related to recent media attention surrounding proposed legislation in the state of California.

Lately, the company has been in the controversy after animal-right activists raised concerns over mistreatment of captive killer whales in its theme-parks.

Moving ahead, the company now expects its revenue to decline 6 to 7 percent. Previously, the company expected revenues of $1.49 billion to $1.52 billion for the year, which indicated an expected growth of 2.1 to 4.1 percent. Analysts currently estimate revenues growth of 3.1 percent or $1.51 billion.

The company also authorized a share repurchase of up to $250 million beginning on January 1, 2015.

SEAS is currently trading at $19.72, down $8.43 or 29.95%, on the Nasdaq.