https://finance.yahoo.com/news/seaworld-crashing-121025034.html
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<cite class="byline vcard top-line" style="font-style: normal; line-height: 12.100000381469727px;">By Myles Udland<abbr style="display: block;">21 hours ago</abbr></cite>
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Magnolia Pictures
SeaWorld shares are crashing, having fallen as much as 31% on Wednesday, after the theme-park operator reported earnings and revenue that missed expectations.
This report comes about a year CNN's controversial documentary "Blackfish," which brought to light questions regarding the treatment of Orca whales.
SeaWorld reported earnings of $0.43 per share, less than the $0.59 that was expected by analysts.
Second-quarter revenue also missed expectations, coming in at $405.2 million against expectations for $445.3 million.
Attendance at the company's parks increased modestly, rising 0.3% against the prior year to 6.6 million. Attendance in the second quarter last year, however, declined 9%. Year to date, attendance at SeaWorld parks is down 4.3%.
"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," SeaWorld CEO Jim Atchison said.
For the full year, SeaWorld expects revenue to decline 6% to 7% over last year, which contrasts sharply with current Wall Street expectations for an increase of 3%. The company also expects adjusted EBITDA, or earnings before interest, tax, depreciation, and amortization, to decline 14% to 16% from a year ago.
Atchison added: "In order to drive growth, we are undertaking a number of initiatives, including a detailed review of our Company-wide cost structure with the goal of driving significant cash cost savings in 2014 and 2015. Our intent is to re-invest these savings into additional new attractions at our destination parks and return capital to shareholders."
As part of its capital return plans, SeaWorld announced a $250 million share repurchase authorization, which begins Jan. 1.
On Twitter, CNBC's Giovanny Moreano noted that SeaWorld's plunge put the shares at their lowest level on record.
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<cite class="byline vcard top-line" style="font-style: normal; line-height: 12.100000381469727px;">By Myles Udland<abbr style="display: block;">21 hours ago</abbr></cite><figure class="cover get-lbdata-from-dom go-to-slideshow-lightbox" data-orig-index="0" id="yui_3_16_0_1_1408026255302_1463" style="margin: 0px; padding: 0px; position: relative; cursor: pointer;">
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.Magnolia Pictures
SeaWorld shares are crashing, having fallen as much as 31% on Wednesday, after the theme-park operator reported earnings and revenue that missed expectations.
This report comes about a year CNN's controversial documentary "Blackfish," which brought to light questions regarding the treatment of Orca whales.
SeaWorld reported earnings of $0.43 per share, less than the $0.59 that was expected by analysts.
Second-quarter revenue also missed expectations, coming in at $405.2 million against expectations for $445.3 million.
Attendance at the company's parks increased modestly, rising 0.3% against the prior year to 6.6 million. Attendance in the second quarter last year, however, declined 9%. Year to date, attendance at SeaWorld parks is down 4.3%.
"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," SeaWorld CEO Jim Atchison said.
For the full year, SeaWorld expects revenue to decline 6% to 7% over last year, which contrasts sharply with current Wall Street expectations for an increase of 3%. The company also expects adjusted EBITDA, or earnings before interest, tax, depreciation, and amortization, to decline 14% to 16% from a year ago.
Atchison added: "In order to drive growth, we are undertaking a number of initiatives, including a detailed review of our Company-wide cost structure with the goal of driving significant cash cost savings in 2014 and 2015. Our intent is to re-invest these savings into additional new attractions at our destination parks and return capital to shareholders."
As part of its capital return plans, SeaWorld announced a $250 million share repurchase authorization, which begins Jan. 1.
On Twitter, CNBC's Giovanny Moreano noted that SeaWorld's plunge put the shares at their lowest level on record.
was just in san diego 2 weeks ago...literally stayed couple miles from SD Sea world. could see fireworks from my place each night...really had no urge to go to the park at all based on what Ive read on this issue, have not seen the movie yet.. our group stayed away...did other great things in S Diego...
<header class="header" id="yui_3_16_0_1_1408120541498_1422" style="margin: 0px; padding: 0px 10px; overflow: hidden; color: rgb(0, 0, 0); font-family: 'Helvetica Neue', HelveticaNeue, helvetica, arial, sans-serif; line-height: 16.25px;">[h=1]SeaWorld to Upgrade Killer Whale Habitats[/h]</header>
<cite class="byline vcard top-line" id="yui_3_16_0_1_1408120541498_1453" style="font-style: normal; line-height: 12.100000381469727px;">By Tom Gara<abbr id="yui_3_16_0_1_1408120541498_1452" style="display: block;">2 hours ago</abbr></cite>
<section class="yom-mod " id="mediacontentrelatedstory" data-ylk="mid:mediacontentrelatedstory;mpos:1;elm:hdln;elmt:ct;cat:Related Stories;rspns:nav;t1:a3;t2:lst-ct;itc:0;sec:lst-ct;" style="margin: 0px; padding: 0px;">[h=2]Related Stories[/h]
</section>
The company plans to upgrade the killer whale tanks at three of its theme parks, beginning with the San Diego location. The new enclosure in San Diego will be almost double the size of the current one, holding about 10 million gallons of water and extending to a depth of 50 feet. The company wouldn't specify the cost of the upgrades, only saying it would be several hundred million dollars.
The company is locked in a battle with animal-rights activists, who say that training and publicly performing killer whales is an inherently cruel act. The documentary "Blackfish," which has been screened in cinemas and broadcast multiple times by CNN, raised these criticisms to a higher level of public awareness, and has harmed the company's financial results.
Jim Atchison, SeaWorld's chief executive officer, said the new facilities would set the standard globally for man-made killer whale habitats, but acknowledged they were unlikely to satisfy the company's most vocal critics. "It probably won't, and that's not our audience," he said. "Unfortunately there are some people who want nothing more than to see the end to the relationship between humans and animals, and that would be a sad outcome."
Instead, the company says the habitats will create new opportunities for scientific research into the animals.
The San Diego facility will include a "water treadmill" system letting the whales swim against a stream of moving water, allowing them more exercise but also opening the door to new research into how the animals burn energy. The system will be the first of its kind in the world, the company says.
View gallery
WSJ
SeaWorld's San Diego park currently keeps its killer whales in a habitat containing 5.6 million gallons of seawater, which is filtered and chilled to about 55 degrees Fahrenheit and drops to 35 feet at its deepest point. The new tank will have a total volume of more than 10 million gallons and hit a depth of 50 feet. It will also include a 40-foot high glass viewing wall.
Construction at the San Diego location is set to begin in 2015 and be completed by 2018, with similar upgrades planned for SeaWorld parks in Orlando, Fla., and San Antonio.
Mr. Atchison said he was confident the construction wouldn't have an impact on visitor numbers. Attendance at SeaWorld parks has fallen in four of its six most recent quarters, and dropped by 4.1% in 2013, with the company attributing much of that drop to increases in ticket-prices. Total revenue increased by 3% last year to $1.46 billion, its highest ever, as average spending per visitor rose.
Investors haven't been kind. SeaWorld shares fell by one-third on Wednesday and are off nearly 50% over the past 12 months. The stock declined another 4.8% to $18 on Thursday.
The company acknowledges the fallout of "Blackfish"—which it says is a work of propaganda—is hitting attendance. Mr. Atchison said the drop in visitors was disappointing but temporary. "We're a 50-year-old company and we'll have difficult quarters, they'll come and they'll go," he said. "But we have an enduring brand and a unique position in the marketplace."
This could save SeaWorldPlay Video
The company's critics say the parks' attendance and overall financial performance show that its business has fallen out of favor with the public.
"You don't have dancing bears or tigers jumping through hoops anymore," said Naomi Rose, a marine mammal scientist at the Animal Welfare Institute, which advocates against keeping marine mammals like whales and dolphins in captivity. "Zoos have moved away from that model; they try to place animals in a more natural setting. So why do we still have sea animals performing tricks?"
The answer, she said: "This is what people expected from sea animals for years and years, and SeaWorld catered to that. But the expectation has changed, and SeaWorld is way behind the times on this."
Christopher Dold, SeaWorld's vice president of veterinary services, disagrees with those who say killer whales can't live healthy lives in captivity. He said the new habitats will be "not just larger but more dynamic, and with a lot more of the kind of mental and physical stimulation that we know is so important for overall health and well-being." The improvements, said Dr. Dold, don't represent a concession that current space housing the whales is too small.
"We believe the facilities we have are absolutely world class, but that doesn't mean we're just going to sit back," he said. "With these kind of spaces, the changes are sometimes evolutionary and sometimes revolutionary, and this time it is revolutionary."
Write to Tom Gara at tom.gara@wsj.com
<cite class="byline vcard top-line" id="yui_3_16_0_1_1408120541498_1453" style="font-style: normal; line-height: 12.100000381469727px;">By Tom Gara<abbr id="yui_3_16_0_1_1408120541498_1452" style="display: block;">2 hours ago</abbr></cite><figure class=" cover get-lbdata-from-dom go-to-slideshow-lightbox " data-id="a9ee358d-2e7b-309c-9bcb-3a6f5cb4b9f4" id="yui_3_16_0_1_1408120541498_1457" style="margin: 0px; padding: 0px; position: relative; cursor: pointer;">
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SeaWorld Entertainment Inc. (SEAS), suffering from negative publicity and flagging attendance, plans to announce on Friday a new expansion of the habitats housing its signature killer whales.
<section class="yom-mod " id="mediacontentrelatedstory" data-ylk="mid:mediacontentrelatedstory;mpos:1;elm:hdln;elmt:ct;cat:Related Stories;rspns:nav;t1:a3;t2:lst-ct;itc:0;sec:lst-ct;" style="margin: 0px; padding: 0px;">[h=2]Related Stories[/h]
- SeaWorld Shares Plummet As Killer Whale Protests Hurt Parks Forbes
- SeaWorld stock falls 33% as orca controversy hurts attendance Los Angeles Times
- S&P cuts SeaWorld credit rating amid orca controversy Los Angeles Times
- SeaWorld, Southwest Airlines ending partnership Associated Press
- SeaWorld Entertainment may run short on oxygen CNBC
</section>
The company plans to upgrade the killer whale tanks at three of its theme parks, beginning with the San Diego location. The new enclosure in San Diego will be almost double the size of the current one, holding about 10 million gallons of water and extending to a depth of 50 feet. The company wouldn't specify the cost of the upgrades, only saying it would be several hundred million dollars.
The company is locked in a battle with animal-rights activists, who say that training and publicly performing killer whales is an inherently cruel act. The documentary "Blackfish," which has been screened in cinemas and broadcast multiple times by CNN, raised these criticisms to a higher level of public awareness, and has harmed the company's financial results.
Jim Atchison, SeaWorld's chief executive officer, said the new facilities would set the standard globally for man-made killer whale habitats, but acknowledged they were unlikely to satisfy the company's most vocal critics. "It probably won't, and that's not our audience," he said. "Unfortunately there are some people who want nothing more than to see the end to the relationship between humans and animals, and that would be a sad outcome."
Instead, the company says the habitats will create new opportunities for scientific research into the animals.
The San Diego facility will include a "water treadmill" system letting the whales swim against a stream of moving water, allowing them more exercise but also opening the door to new research into how the animals burn energy. The system will be the first of its kind in the world, the company says.
View gallery
WSJ
SeaWorld's San Diego park currently keeps its killer whales in a habitat containing 5.6 million gallons of seawater, which is filtered and chilled to about 55 degrees Fahrenheit and drops to 35 feet at its deepest point. The new tank will have a total volume of more than 10 million gallons and hit a depth of 50 feet. It will also include a 40-foot high glass viewing wall.
Construction at the San Diego location is set to begin in 2015 and be completed by 2018, with similar upgrades planned for SeaWorld parks in Orlando, Fla., and San Antonio.
Mr. Atchison said he was confident the construction wouldn't have an impact on visitor numbers. Attendance at SeaWorld parks has fallen in four of its six most recent quarters, and dropped by 4.1% in 2013, with the company attributing much of that drop to increases in ticket-prices. Total revenue increased by 3% last year to $1.46 billion, its highest ever, as average spending per visitor rose.
Investors haven't been kind. SeaWorld shares fell by one-third on Wednesday and are off nearly 50% over the past 12 months. The stock declined another 4.8% to $18 on Thursday.
The company acknowledges the fallout of "Blackfish"—which it says is a work of propaganda—is hitting attendance. Mr. Atchison said the drop in visitors was disappointing but temporary. "We're a 50-year-old company and we'll have difficult quarters, they'll come and they'll go," he said. "But we have an enduring brand and a unique position in the marketplace."
This could save SeaWorldPlay Video
The company's critics say the parks' attendance and overall financial performance show that its business has fallen out of favor with the public.
"You don't have dancing bears or tigers jumping through hoops anymore," said Naomi Rose, a marine mammal scientist at the Animal Welfare Institute, which advocates against keeping marine mammals like whales and dolphins in captivity. "Zoos have moved away from that model; they try to place animals in a more natural setting. So why do we still have sea animals performing tricks?"
The answer, she said: "This is what people expected from sea animals for years and years, and SeaWorld catered to that. But the expectation has changed, and SeaWorld is way behind the times on this."
Christopher Dold, SeaWorld's vice president of veterinary services, disagrees with those who say killer whales can't live healthy lives in captivity. He said the new habitats will be "not just larger but more dynamic, and with a lot more of the kind of mental and physical stimulation that we know is so important for overall health and well-being." The improvements, said Dr. Dold, don't represent a concession that current space housing the whales is too small.
"We believe the facilities we have are absolutely world class, but that doesn't mean we're just going to sit back," he said. "With these kind of spaces, the changes are sometimes evolutionary and sometimes revolutionary, and this time it is revolutionary."
Write to Tom Gara at tom.gara@wsj.com
Tough sledding for Shamu....
SeaWorld Entertainment (SEAS) is flopping in today's trading. Shares are down 10% after the alleged Orca abusers came up light on earnings and revenue for last quarter. The company says total attendance fell 5.6% while revenues dropped 8%. It's been an ugly year for SeaWorld investors who have seen the company aggressively buyout private equity firm Blackstone Group(BX) even as the stock dropped. Shares are now off 50% from their closing level the day it went public in the Spring of 2013.
SeaWorld Entertainment (SEAS) is flopping in today's trading. Shares are down 10% after the alleged Orca abusers came up light on earnings and revenue for last quarter. The company says total attendance fell 5.6% while revenues dropped 8%. It's been an ugly year for SeaWorld investors who have seen the company aggressively buyout private equity firm Blackstone Group(BX) even as the stock dropped. Shares are now off 50% from their closing level the day it went public in the Spring of 2013.
