SeaWorld Parks & Entertainment (SEAS) Corporate Thread

[grsupercity]

Seaworld attendance is up. Hopefully this blowhard episode doesn't hinder progress

[ytterbiumanalyst]

Oh god, seriously? Just when they were starting to recover from the last ignorant hit job....

Edited June 8, 2019 by ytterbiumanalyst

[coasterferg]

Unfortunately the news media knows that people respond to "supposed" mistreatment of animals, especially from corporations like Seaworld.

 

The general public all think they know what is best for these animals, that they know more than the countless Seaworld employees who literally studied these animals, spent years of their lives in college to earn marine biology degrees, have rescued 100s of animals, etc.

 

It's the news equivalent of clickbait, and unfortunately it works.

 

My sister and her husband both worked at Seaworld as animal care specialists for years. Let me tell you, it is not an easy job. Animals don't take holidays off. Animals also don't care what time of the day it is when they need care. So you have to give up 1/2 of your holidays and can be called in to work at 2:00am. Also, the pay is not great...at all. I was shocked when I glimpsed my sister's paycheck. These people work with these animals because they LOVE them, not for the money. So it's absurd to think that the animals are mistreated.

[pǝʇɹǝʌuı]

Don't get me started on this. The benefits of having spectacular animals that can easily be seen by millions of people, including kids, far outweigh both the logistical and moral challenges of keeping them in a cage. Are they ideal conditions? No. Are they bad? Absolutely not. The trainers and veterinary care specialists know what they're doing and have a deep love for the individual animals they work with. And what's the end result? Millions of people waking away awe-stricken and inspired to preserve the habitats that the animals are native to.

 

So what do the activists fight for? They say the animals need to be free, that we don't have a right to keep them locked up. They say it's better to see the animals in the wild. I get it. I understand the moral argument. But traveling to a place where you can get up close and personal with wild animals like you can with the animals SeaWorld is 1)more expensive 2)so rare you can almost guarantee it won't happen to you and 3)1000x more environmentally destructive. So, naturally, less people are going to do it. Well, now where's the motivation to preserve the environment in which the animals live? People naturally aren't going to be nearly as worried about something they don't have a personal experience with. That personal experience is what SeaWorld provides. And they do one heck of a job at it.

 

:endrant:

 

If there are any doubters here, I hope you understand why SeaWorld is 100% morally justified in what they do. Luckily, here on TPR I'm mostly preaching to the choir.

[CaptainUnknown]

Hey, I was looking at the SEAS Platinum pass for next year, and I see that it includes 2 free guest tickets (on select days). So my question is, could I use those at a different park than I got the pass from? E.g. purchasing it from SeaWorld San Antonio, using the free tix at BGT/SWO.

[ytterbiumanalyst]

Nope, if you get the SA pass, all your freebies are in SA. Also they specifically bar residents of the states where they have their other parks from purchasing a SA Platinum Pass. The fine print in some places will say that pass is only for TX residents, but I've bought one and used one, and I live in MO. So with you also being a Midwesterner, you're probably ok since SA would be your closest Sea World, but it wouldn't hurt to check with the park.

[bgtlover]

I can also confirm that the free and discount tickets that you get with the Platinum Pass or Membership are only to be used at the park you purchase from and the other parks in that state. So if you buy from SW San Antonio or Aquatica San Antonio, the freebie tickets and discount tickets can only be used at those parks when they become available for use. The same goes if you buy it at one of the FL parks; you can only use them at the FL parks (during non-blockout months/dates).

 

With Platinum purchased at any park, you do get admission, parking, in-park discounts and such as always. Many of the local park benefits or added bonus perks however are only available to those who purchased from a park in that state. Even preferred parking, ride again privileges and reserved show seating are park/state specific, though they do allow it depending on who's working that day (I've heard some say they get it, and others say they were denied at the FL parks from people who had purchased from BGW, SWSA and other parks out of state).

[jedimaster1227]

In a surprising piece of news late today, it was announced that Gustavo Antorcha, the CEO of SeaWorld Entertainment for the last seven months has resigned. Marc Swanson, Chief Financial Officer will serve as Interim CEO effctive immediately with Gus assisting the company for a smooth transition of leadership.

 

SeaWorld Entertainment, Inc. (NYSE: SEAS), a leading theme park and entertainment company, today announced a leadership transition. Gustavo Antorcha has resigned from his positions of Chief Executive Officer and member of the Board of Directors. Marc Swanson, who serves as Chief Financial Officer, has been appointed interim Chief Executive Officer. Elizabeth Castro Gulacsy, who serves as Chief Accounting Officer, has been appointed interim Chief Financial Officer. Ms. Gulacsy will retain her role as Chief Accounting Officer. These changes are effective immediately. Mr. Antorcha has agreed to assist the Company to ensure a smooth transition.

 

"We thank Gus for his contributions and wish him well in his future endeavors," said Scott Ross, Chairman of the Board of Directors. "We know Marc and Elizabeth will be excellent leaders in their new roles and will continue to successfully drive the business forward. Marc has been with the Company for 19 years and has a deep understanding of the Company, its parks and its strategy. He has been a key contributor to the success of the business for several years. Elizabeth has been with the Company for 7 years and has extensive knowledge of the Company and its financial profile."

 

Ross continued, "The strategy we have in place is working and we have made significant progress. We look forward to continuing to execute on this strategy and driving a meaningful increase in value for all stakeholders."

 

Mr. Antorcha said, "While I may have a difference of approach, I continue to believe in SeaWorld's strategy, mission, team and prospects. Marc and Elizabeth are fine leaders, and I am confident in their abilities to guide the Company forward."

 

Mr. Swanson said, "I am honored to serve as interim CEO and to continue to drive our strategy forward. We will continue to focus on improving our execution with enhanced marketing and communications initiatives, more effective pricing strategies, the introduction of new compelling rides, attractions and events and relentlessly seeking and executing on cost and capital efficiencies. I'm incredibly excited about the business and the opportunities we have before us to continue to entertain and inspire our guests and significantly increase shareholder value."

 

The Board of Directors has engaged a leading executive search firm to assist in the search for Mr. Antorcha's successor.

 

Additional Background on Marc Swanson

 

Marc Swanson has most recently served as Chief Financial Officer and Treasurer of the Company since August 2017. Prior to that Mr. Swanson served as Chief Accounting Officer since 2012 and served as interim Chief Financial Officer from June 2015 until September 2015 and as interim Chief Financial Officer and Treasurer from August 1, 2017 until his permanent appointment later that same month. Previously, he was Vice President, Performance Management and Corporate Controller of SeaWorld Parks & Entertainment from 2011 to 2012, the Corporate Controller of Busch Entertainment Corporation from 2008 to 2011 and the Vice President of Finance of Sesame Place from 2004 to 2008. Mr. Swanson is a member of the Board of Trustees of the Orlando Science Center.

 

Mr. Swanson holds a bachelor's degree in accounting from Purdue University and a master's degree in business administration from DePaul University, and is a Certified Public Accountant.

 

Additional Background on Elizabeth Castro Gulacsy

 

Elizabeth Castro Gulacsy has most recently served as Chief Accounting Officer of the Company since August 2017. Ms. Gulacsy also served as Corporate Vice President, Financial Reporting, a position she was promoted to in 2016 after serving as Director, Financial Reporting from 2013 to 2016. Prior to joining SeaWorld, Ms. Gulacsy served from 2011 to 2013 as Chief Accounting Officer and Corporate Controller for Cross Country Healthcare, Inc., where she also served as Director of Corporate Accounting from 2006 to 2011, and Assistant Controller from 2002 to 2006. Prior to that time, Ms. Gulacsy was an Audit Manager for Ernst & Young LLP.

 

Ms. Gulacsy holds a bachelor's degree and master's degree in accounting from the University of Florida and is a Certified Public Accountant. She also currently serves as a board member of the SeaWorld & Busch Gardens Conservation Fund.

 

The following news was released shortly after the news of CEO Gus Antorcha's resignation...

 

https://www.mynews13.com/fl/orlando/news/2019/09/16/seaworld-lays-off-orlando-call-center-employees

 

SeaWorld Entertainment has laid off 100 employees at its Orlando call center, the company confirmed Monday.

 

The layoffs, which take effect immediately, comes the same day SeaWorld announced its CEO Gus Antorcha had resigned after seven months on the job.

 

"SeaWorld undertook a careful review of our operations and made a business decision to restructure our call center operations," a spokesperson said in an email to Spectrum News. "This move will allow us to better and more efficiently scale our call center to meet customer demand, especially during peak months."

 

With the positions eliminated at the Orlando call center, operations have shifted to a third-party vendor, SeaWorld said.

 

"We don't anticipate any interruption in park guest services and guests can continue to expect the same world-class customer service from SeaWorld," the spokesperson said.

 

SeaWorld said the company is offering severance benefits and outplacement assistance to employees who were laid off.

 

Monday's layoffs are the second big round of layoffs at the company. In April, SeaWorld laid off an undisclosed number of workers across the entire company. At the time, a spokeswoman said the decision was made to improve "performance and efficiency."

 

SeaWorld, which is based in Orlando, operates 12 parks, including Aquatica Orlando, Busch Gardens Tampa Bay, SeaWorld San Antonio and SeaWorld San Diego.

 

The company, following years of backlash from the 2013 film Blackfish, has continued to bounce back with increased attendance and revenue.

Edited September 16, 2019 by jedimaster1227

[sfkk]

It’s kind of aggravating that they refused to promote John Reilly to give the position to Antorcha, so he left. Now Gus leaves and they are left completely empty handed! I really wonder what the difference of approach was. If it was related to the direction of the parks (and whales/animals) or if it was unrelated entirely.

[SharkTums]

Put me in charge, I swear, honestly, I could do a better job at this point!

[ytterbiumanalyst]

Put me in charge, I swear, honestly, I could do a better job at this point!

[BintamiM]

Two words people. Scott Ross... he is dismantling this company little by little

[chschris1]

Two words people. Scott Ross... he is dismantling this company little by little

 

Catch me up here...who is Scott Ross?

[ytterbiumanalyst]

Two words people. Scott Ross... he is dismantling this company little by little

 

Catch me up here...who is Scott Ross?

This is not an endorsement of BintamiM's statement. I don't have enough information to confirm or deny that's what's happening, and besides it's usually a really bad idea to blame a powerful person so pointedly on the Internet without citing any evidence.

 

That said, Scott Ross is Googleable.

 

https://www.seaworldinvestors.com/corporate-governance/board-of-directors/person-details-bod/default.aspx?ItemId=f01eb946-7c0b-40d8-a6b8-b99c93f17751

[sfkk]

This is taken from the San Diego Union Tribune. When talking about Gus’ “disagreements in decision making with the board of directors” I’d be willing to be that this view right here was a large portion of the contention. His likely had a greater more long term view for the parks that included beefing up and modernizing the animal exhibits where as the board likely wanted to follow the strategy of more rides and less animals.

 

Animals, insists SeaWorld CEO Gus Antorcha, are central to both the business model of the company and its mission, and that will not change. In fact, he would like to see them emphasized even more.

 

“Animals are absolutely core to the experience of SeaWorld,” Antorcha said last week in his first interview with a reporter since joining the theme park company four months ago following Manby’s departure.

 

“Animal experiences make us unique, and the other competition doesn’t have that. Yes, we’ve been adding more roller coasters but they’re all linked back to education and conservation. If you look more broadly, we’re trying to make sure a family will have a great day at the park, and thrill rides done the way SeaWorld does them help round out that experience.”

[pǝʇɹǝʌuı]

^A link would be nice

 

I like this guy Gus, though. I've been very open about my support of Seaworld's animal exhibits and shows. Shame he resigned.

[jedimaster1227]

Today SeaWorld Entertainment announced that Sergio Rivera will assume the position of Chief Executive Officer and member of the Board of Directors. He fills the post previously vacated by Gus Antorcha after he resigned only 7 months into his tenure as CEO. Also announced was the appointment of Neha Jogani Narang to the Board of Directors.

 

SeaWorld Entertainment, Inc. (NYSE: SEAS), a leading theme park and entertainment company, today announced the appointment of Sergio (Serge) D. Rivera to the position of Chief Executive Officer and member of the Board of Directors, effective November 11, 2019. The Company also announced today that Neha Jogani Narang will be appointed to its Board of Directors, effective November 11, 2019. These appointments will increase the size of the Board of Directors to nine members.

 

Mr. Rivera previously served as the President and Chief Executive Officer of ILG, Inc.'s Vacation Ownership Segment, where he was responsible for development, sales, marketing and resort operations. Prior to ILG, Mr. Rivera was the President of the Americas for Starwood Hotels & Resorts Worldwide and was responsible for the performance and growth of Starwood's brands and its owned, managed and franchised businesses in North America, the Caribbean, Central and South America, and Polynesia.

 

"Serge has a strong track record as a leader and operator in the hospitality and leisure industries," said Scott Ross, Chairman of the Board of Directors of SeaWorld Entertainment, Inc. "Serge brings to SeaWorld exceptional leadership and management skills across sales, marketing, operations, development, finance and commercial management."

 

Ross continued, "The strategy we have in place for SeaWorld continues to work and we have made good progress. We look forward to Serge's leadership as we continue to improve and accelerate our execution through enhanced marketing and communications initiatives, more effective pricing strategies, cost and capital efficiencies and the introduction of new and compelling rides, attractions and events across our portfolio."

 

Mr. Rivera said, "I am thrilled to join the SeaWorld team. The Company has an exceptional business model, an irreplaceable set of assets and an incredibly talented group of ambassadors who are driving extraordinary service and experiences for our guests. While very strong progress has been made executing against the long-term plan in place, I know that there's more to do to ensure that the long-term potential of the business is fully unlocked. I look forward to working with this very talented team to further improve our execution and dramatically increase shareholder value."

 

Rivera continued, "Importantly, I also want to express how proud I am to join an organization and team that is so committed to the highest standard of animal care and makes enormous and important contributions to conservation, animal rescue, research and education."

 

Marc Swanson, who assumed the position of Interim Chief Executive Officer in September 2019, will return to his former role as Chief Financial Officer. Elizabeth Castro Gulacsy, who has been serving as Interim Chief Financial Officer, will return to her former role of Chief Accounting Officer.

 

Ross added, "We thank Marc and Elizabeth for their leadership while we conducted our search. We look forward to them working closely with Serge to drive operational excellence across the Company."

 

Appointment of Neha Jogani Narang to Board of Directors

 

The Company also announced today that Neha Jogani Narang will be appointed to its Board of Directors.

 

Ms. Narang most recently was the director of consumer and developer marketing for Facebook where she led marketing for several businesses from inception, including Mobile App Ads, Facebook Marketplace, Facebook Platform, Profile, Pages, Events, and more.

 

Ross said, "We are extremely excited to have Neha join our Board of Directors. Neha has a unique and highly valuable background in consumer marketing, brand, product, digital media, ecommerce and technology. She brings to our board experience and insights that will ensure our marketing and communication efforts are fully aligned with the current realities of our customer base."

 

"I am honored to serve on the SeaWorld Board of Directors," said Narang. "My family and I are enormous advocates of SeaWorld, its incredible entertainment destinations, and very importantly, its commitment to education and conservation. Prior to joining the board, I spent a lot of time at SeaWorld and was fortunate to meet with the Company's zoological experts and leaders of the rehabilitation centers. What I found was an organization passionate about the health and well-being of the animals in its care and in educating guests about wildlife. As the marketing and communications functions continue to evolve, I am confident that I can bring to bear my understanding of consumer marketing and technology to help SeaWorld better connect with the communities they serve."

 

About Sergio (Serge) Rivera

Mr. Rivera previously served as President and CEO of ILG Vacation Ownership Segment, a leading provider of professionally delivered vacation experiences and the exclusive global licensee for the Hyatt®, Sheraton®, and Westin® brands. Prior to that, he served as the President of the Americas for Starwood Hotels & Resorts Worldwide, where he was responsible for the performance and growth of Starwood's brands and businesses in North America, the Caribbean, Central and South America, and Polynesia, which encompassed 700 hotels and 125,000 associates across 23 countries. Mr. Rivera also serves on the Board of Directors for Welltower Inc. (NYSE: WELL), as a member of Florida International University's Chaplin School of Tourism & Hospitality Management Advisory Board and as a Trustee for The Nature Conservancy's Florida Chapter. Previously, he served on the Board of Directors of ILG, Inc., the Rosen College of Hospitality Dean's Advisory Board at the University of Central Florida, the U.S. Travel Association CEO Roundtable and as a Trustee and Board Member of the American Resort Development Association. He holds a bachelor's degree in finance and a master's degree in business administration from Florida International University.

 

About Neha Jogani Narang

Neha Jogani Narang is a leader in business and consumer marketing, with an expertise in product, partnerships and brand marketing. She has led marketing strategy for brands across multiple industries including commerce, social, payments, CPG, advertising, education and logistics. Ms. Narang advises companies of various sizes on how to structure their marketing organization and prioritize marketing needs. Ms. Narang also serves on the Board of the Boys and Girls Clubs of San Francisco. Prior to that, Ms. Narang was director of consumer product marketing and global developer marketing for Facebook, where she was responsible for marketing several businesses within Facebook from inception to market leaders, developing a strong community engagement program to reach the Facebook community and leading Facebook's largest conference, F8. She earned an M.B.A from Stanford University Graduate School of Business and bachelor's degree from the University of Southern California.

[sfkk]

Well so far at least it looks like Seaworld is keeping its corporate promise to phase out theatrical orca shows by the end of 2019. At San Antionio there are only killer whales up close presentations scheduled for January 1 2020 as opposed to Shamu Christmas miracles on December 31. Whether you support this decision or not, it is good to see companies actually following through on things that they promise the consumer.

[coasterbill]

There are actually some really interesting changes going on at Shamu stadium in Orlando in addition to phasing out the show.

 

If you go to the underwater viewing area they've actually filled the bottom of the tank with rocks and loaded the tank with fish. They explained to us that the rocks have to be there for the fish because of a certain type of bacteria that needs to be able to grow to support them (or something like that). We were really surprised to see a bunch of fish in an orca tank but they're taking this "creating a more natural environment" thing very seriously. I sort of just expected a natural backdrop and the same show without music.

 

They also confirmed that yes, the whales have eaten about 25% of the fish but they've been there for awhile and they think they might keep them around as they also enjoy playing with them for enrichment. They're not really sure what the whales will do but they're free to do whatever. It's also the first-such tank in the world.

 

PS: I still think that phasing out theatrical shows is stupid.

[ytterbiumanalyst]

They're not really sure what the whales will do but they're free to do whatever. It's also the first-such tank in the world.

Sounds like science!

 

PS: I still think that phasing out theatrical shows is stupid.

Agreed.

[anonymouscactus]

More cuts coming to the parks in Orlando and Tampa. They are now going to be outsourcing the games departments. San Diego and San Antonio to follow.

 

EDIT: Better article

 

https://www.orlandosentinel.com/business/tourism/os-bz-seaworld-layoffs-carnival-20200117-x7mu524zwfexvmzqtu7ydvouf4-story.html

[djcoastermark]

Huh, kind of odd IMO. Most traditional parks saw games as an extension of marketing and a money maker. IE, Cedar Points "game row", flashy and enticing. However, I do see this for SEAS parks as games seem to be mostly a side thought. IE, BGT where in Pantopia, all the game kiosks just seem to be in the way of passing through to the next ride/attraction. Never really see anyone playing those games. I was never into the games though, with the exception of Fascination ( RIP Fascination at CP) and then for a short time only as rides were awaitin' and times awastin ! Might be a good cash flow generator for the parks and may bring some fresh blood into the rather tired games sections.

[A.J.]

SeaWorld's pivot and continued ride investments for their parks seem to be working - they just announced some record-setting financial results.

 

https://www.seaworldinvestors.com/news-releases/news-release-details/2020/SeaWorld-Entertainment-Inc-Reports-Fourth-Quarter-and-Fiscal-2019-Results/default.aspx

 

"We are pleased to report a strong finish to the year with record-setting performance in the fourth quarter and fiscal year," said Serge Rivera, Chief Executive Officer of SeaWorld Entertainment, Inc. "Despite continued unfavorable weather during the quarter, we continued to grow attendance and total revenue per capita and executed on our cost and efficiency initiatives. Our strategic focus on new rides, attractions and events in every park every year, improved marketing, communications and pricing strategies and a relentless focus on cost efficiency initiatives has resulted in significant increases in attendance, revenue, and Adjusted EBITDA over the last two years."

 

In the fourth quarter of 2019, the Company hosted approximately 4.7 million guests, generated total revenues of $298.0 million, incurred a net loss of $24.2 million and reported Adjusted EBITDA of $83.9 million. Net loss includes a previously announced legal settlement charge, net of insurance recoveries, of approximately $32.1 million. Net loss in the fourth quarter of 2018 includes approximately $8.2 million of pre-tax expenses associated with a loss on extinguishment of debt and write-off of discount and debt issuance costs, $2.5 million related to disposals associated with certain rides and equipment which were removed from service and $1.0 million related to severance and other separation-related costs.

 

In fiscal 2019, the Company hosted approximately 22.6 million guests and generated total revenues of $1.4 billion, record net income of $89.5 million and record Adjusted EBITDA of $456.9 million. Net income in 2019 includes approximately $32.1 million related to a legal settlement charge, net of insurance recoveries, $4.3 million of pre-tax expenses associated with a previously announced equity transaction and $4.2 million of pre-tax expenses associated with severance and other separation-related costs. Net income in 2018 includes approximately $54.0 million of pre-tax expenses associated with: (i) $17.4 million related to severance and other separation-related costs; (ii) $12.1 million related to legal settlements; (iii) $10.9 million related to disposals associated with certain rides and equipment which were removed from service; (iv) $8.2 million related to a loss on extinguishment of debt and write-off of discounts and debt issuance costs; and (v) $5.5 million related to non-cash equity compensation associated with certain executives which separated from the Company in 2018.

[ytterbiumanalyst]

That's great news! I love this strategy of building enough super cool things to change the conversation. The more people associate Sea World with fun, the better off we all are.

[coasterbill]

Another day, another new CEO for Seaworld entertainment.