The Interpreter Posted November 11, 2014 Share Posted November 11, 2014 Announcement 11-12. Here's a critical preview: http://www.smallcapnetwork.com/SeaWorld-Entertainment-SEAS-Earnings-Report-Beached-Again-SIX-FUN/s/via/21051/article/view/p/mid/1/id/627/ 1 Quote Link to comment Share on other sites More sharing options...
RailRider Posted November 11, 2014 Share Posted November 11, 2014 They can say what they want, but the Orlando Market is booming with tourists who have chosen not to throw their money in the SEAS. Blackfish has played a major role in this along with cost cutting measures in the parks. Guests have noticed as have potential future guests. No Comment is not an effective way of handling public relations in today's market. Either get in front of the issue or dig in and vehemently fight. No Comment is apathetic and ineffective, consumers view it as corporations pleading the 5th. 5 Quote Link to comment Share on other sites More sharing options...
Outdoor Man Posted November 11, 2014 Share Posted November 11, 2014 its a no-win situation. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 11, 2014 Author Share Posted November 11, 2014 It probably is now. It didn't have to be. Had they been even a little bit pro-active... 5 Quote Link to comment Share on other sites More sharing options...
faeriewench Posted November 12, 2014 Share Posted November 12, 2014 SeaWorld certainly had their foot in mouth moments...personally not a fan of their CEO though. Off topic...I'm glad the Japanese aquariums have come out and said it, they realized they need to do something with their captive killer whales so they have turned to SeaWorld for help. Better SeaWorld helping out than having to do more captures... For being so technology savvy, the Japanese are 30 years behind when it comes to orca care. 3 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 12, 2014 Author Share Posted November 12, 2014 "SeaWorld Is Tanking" http://www.businessinsider.com/seaworld-third-quarter-earnings-nov-12-2014-11 Net income, DOWN 28% Attendance DOWN 5.2%. Revenues DOWN 8%. Not good. At all. 1 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 12, 2014 Author Share Posted November 12, 2014 Stock hit new yearly low... Down approximately 10 percent so far today, more than 50 percent from its high in the past year. 1 Quote Link to comment Share on other sites More sharing options...
RailRider Posted November 12, 2014 Share Posted November 12, 2014 Wow! Shockingly poor results continue for SEAS. The following quote either sums up the denial the park has over why results are so poor or is just PR garbage. In its earnings release, the company said it believed the attendance decline resulted "from a combination of factors including negative media attention in California along with a challenging competitive environment, particularly in Florida."Read more: http://www.businessinsider.com/seaworld-third-quarter-earnings-nov-12-2014-11#ixzz3Is1uBSVr Most parks in the Florida market are setting records with attendance, SEAS parks are the only major ones that are not. Public denial of your true issues does not convince investors to jump on board nor does it entice visitors to come back. SEAS has still done a poor job of handling and rebuking Blackfish. Until they deal with elephant errr Killer Whale in the room these trends will continue. 2 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 12, 2014 Author Share Posted November 12, 2014 The full press release is worse: http://www.seaworldinvestors.com/news-releases/news-release-details/2014/SeaWorld-Entertainment-Inc-Reports-Third-Quarter-2014-Results/default.aspx Quote Link to comment Share on other sites More sharing options...
Outdoor Man Posted November 12, 2014 Share Posted November 12, 2014 Sigh. 2 Quote Link to comment Share on other sites More sharing options...
shark6495 Posted November 12, 2014 Share Posted November 12, 2014 While Blackfish hurts.... I havnt seen much in the way or marketing on national TV.... Not to mention that people are not as amazed as they once were by animals.... 2 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 12, 2014 Author Share Posted November 12, 2014 And now the company intends to save (cut) its way to prosperity. $50,000,000 in cuts in the next year alone. Don't think the guest experience won't suffer. It will. Can you say CBS? 4 Quote Link to comment Share on other sites More sharing options...
stashua123 Posted November 12, 2014 Share Posted November 12, 2014 I see a sale coming soon. 1 Quote Link to comment Share on other sites More sharing options...
electricsun Posted November 13, 2014 Share Posted November 13, 2014 Yikes. "Negative media attention in California" is putting it lightly. I'm curious to see if the decline in attendance/revenue was greater at the Sea World parks compared to the other branded parks. I know they have the numbers but wouldn't publish it - unless I missed it in the press release. Are people boycotting the entire brand? Or just the specific Sea World branded parks? $50 million is a lot to cut while still trying to grow and change. I've seen it in much smaller organizations and those are challenging times indeed. The biggest challenge is making sure it doesn't negatively impact your guest experience to a point where the negative attention grows to a point where your brand and image continues to sink further. It will be interesting to see how these cuts play through. If they had addressed Blackfish immediately - showing their side and explaining more about their conservation process - would it have made an impact? I can't think of any off the top of my head. Are there similar stories out there for other parks or zoos that have addressed similar situations? 2 Quote Link to comment Share on other sites More sharing options...
BoddaH1994 Posted November 13, 2014 Share Posted November 13, 2014 I'm so glad that I got to enjoy Sea World twice before this. One was immediately following the sale to Inbev, the other in the pre-IPO Blackstone days. I absolutely loved my experience there. I'm glad I had those memories because there likely isn't any going back to the Sea World I knew. 4 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 13, 2014 Author Share Posted November 13, 2014 electricsun: Ringling Brothers Barnum and Bailey Circus has faced aggressive critics, including documentaries, for years. They always respond with their side, and do not passively ignore criticism. 1 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 13, 2014 Author Share Posted November 13, 2014 Is SeaWorld Done? http://247wallst.com/retail/2014/11/12/is-seaworld-done/ What a useless article! Poses the question, regurgitates facts, but doesn't offer any answers... C+ journalism. Sigh. 1 Quote Link to comment Share on other sites More sharing options...
BoddaH1994 Posted November 13, 2014 Share Posted November 13, 2014 Is SeaWorld Done? http://247wallst.com/retail/2014/11/12/is-seaworld-done/ What a useless article! Poses the question, regurgitates facts, but doesn't offer any answers... C+ journalism. Sigh. Choose your own adventure. 1 Quote Link to comment Share on other sites More sharing options...
RailRider Posted November 13, 2014 Share Posted November 13, 2014 The in park experience is already suffering and that was prior to the announced $50 million in cuts next year. Many friends who are local to Busch Gardens Williamsburg and are not what I would consider enthusiasts have complained all year about it being one of the worst years they have seen at the park with operations and park experience. 4 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 13, 2014 Author Share Posted November 13, 2014 Market capitalization is a measure of what the stock market values a company at: SIX: $3.81 billion FUN: $2.63 billion SEAS? $1.54 billion Pretty sad. 1 Quote Link to comment Share on other sites More sharing options...
TTD-120-420 Posted November 13, 2014 Share Posted November 13, 2014 So, what is best and worse case scenario for the future? Where does it go from here? Quote Link to comment Share on other sites More sharing options...
malem Posted November 13, 2014 Share Posted November 13, 2014 ^^ Market capitalization needs to be considered along with the amount of debt held. Blackstone, predictably, left SEAS with a lot of it. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 13, 2014 Author Share Posted November 13, 2014 Debt, total, as of: SIX: $1.397 billion, 9-30-2014 FUN: $1.607 billion, 6-29-2014 SEAS: $1.636 billion, 6-30-2014 Many would argue market cap already takes into account outstanding debt. Quote Link to comment Share on other sites More sharing options...
faeriewench Posted November 14, 2014 Share Posted November 14, 2014 Yikes. "Negative media attention in California" is putting it lightly. I'm curious to see if the decline in attendance/revenue was greater at the Sea World parks compared to the other branded parks. I know they have the numbers but wouldn't publish it - unless I missed it in the press release. Are people boycotting the entire brand? Or just the specific Sea World branded parks? $50 million is a lot to cut while still trying to grow and change. I've seen it in much smaller organizations and those are challenging times indeed. The biggest challenge is making sure it doesn't negatively impact your guest experience to a point where the negative attention grows to a point where your brand and image continues to sink further. It will be interesting to see how these cuts play through. If they had addressed Blackfish immediately - showing their side and explaining more about their conservation process - would it have made an impact? I can't think of any off the top of my head. Are there similar stories out there for other parks or zoos that have addressed similar situations? A neutral documentary should have been made...by neutral I mean discussing the pros and cons of captivity cause both do exist. Blackfish was made only to bash SeaWorld, there was no real education in it and of course general public bought all that propaganda. 1 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 14, 2014 Author Share Posted November 14, 2014 That being said, silence is acceptance. SeaWorld did not respond. At all. For months and months. 4 Quote Link to comment Share on other sites More sharing options...
bkroz Posted November 14, 2014 Share Posted November 14, 2014 The full press release is worse: http://www.seaworldinvestors.com/news-releases/news-release-details/2014/SeaWorld-Entertainment-Inc-Reports-Third-Quarter-2014-Results/default.aspx "We are executing a cost savings plan that is expected to deliver approximately $50 million of annual cost savings by the end of 2015. At the same time, we are adjusting our attraction and marketing plans to address our immediate top-line concerns. While we recognize that we are in the early stages of these initiatives, we firmly believe these actions will enable us to overcome the current challenges we face and enhance our competitive standing." And now the company intends to save (cut) its way to prosperity. $50,000,000 in cuts in the next year alone. Don't think the guest experience won't suffer. It will. Can you say CBS? Gulp... This is bad. Horribly bad. Oh man. I hate seeing this happen. How many possible outcomes are there at this point? Seems there are MANY directions this could go and none look spectacular. 3 Quote Link to comment Share on other sites More sharing options...
TombRaiderFTW Posted November 14, 2014 Share Posted November 14, 2014 This sounds... yeesh. Part of me is morbidly interested to know what this will turn into. Part of me is cringing when imagining what this could turn into. "Adjusting the attraction and marketing plans to address our immediate top-line concerns" sounds like it could mean, among other things, "We may not actually build a new coaster at BGW next year after all." I've been wondering why ride announcement season has come and gone and there hasn't been so much as a teaser out of that park... Or am I misreading that? It just seems strange that they've been so quiet about it, and I've read similar reactions elsewhere online. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 14, 2014 Author Share Posted November 14, 2014 Addressing top line concerns generally means getting more people in the door and/or getting more money out of each one's pockets or a combination thereof. The concerning part is the "immediate" part of immediate top line concerns. That leaves open doing cynical, short term things to get people in or to spend. Greatly reduced admission, increased promotional activity, etc. To do this AT THE SAME TIME that one intends to drive out $50,000,000 in costs annually indicates a shirt term emphasis at the expense of the longer term. One of two things is likely going on here: A. A sale of the chain, and/or B. A last ditch move to save management's hide before it is tossed out. See: Dick Kinzel's aborted attempt to sell out to Apollo Global while saving his own (and a select few others') hide. Or, as to a, see Winterfest 2005, an attempt to immediately show undeveloped potential to drive the top line--without concern for long term profitability. 1 Quote Link to comment Share on other sites More sharing options...
PhantomTheater Posted November 14, 2014 Share Posted November 14, 2014 It has begun... http://seaworldparks.com/en/buschgardens-williamsburg/book-online/tickets/ct12days/ 2 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 14, 2014 Author Share Posted November 14, 2014 $12 instead of $32? Long time passholders might want to avoid 12 select dates. Problem? The blackout dates for this discount are the days the place is already packed. More than 60 percent off. Yes, the guest experience is going to suffer. The parks? Short term gain, long term pain. 2015 Christmas: "Myrtle, I don't want to go to Busch Gardens for Christmas this year. It's too packed to move. Remember last year?" and: "Sam, we are not renewing our passes...it's not fun there any more. I can easily list six reasons. And you do realize that's the company that keeps all those fishies in those itty bitty tank jails?" Quote Link to comment Share on other sites More sharing options...
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