SeaWorld Entertainment Stock

United Parks & Resorts Inc., together with its subsidiaries, operates as a theme park and entertainment company.

The company owns or licenses a portfolio of recognized brands, including SeaWorld, Busch Gardens, Aquatica, Discovery Cove and Sesame Place.

The company has developed a diversified portfolio of differentiated theme parks that are grouped in key markets across the United States and in the United Arab Emirates. Many of the company’s theme parks showcase its one-of-a-kind zoological collection and feature a diverse array of both thrill and family-friendly rides, educational presentations, shows and/or other attractions with broad demographic appeal which deliver memorable experiences and a strong value proposition for the company’s guests.

The company generates revenue primarily from selling admission to its theme parks and from purchases of food, merchandise and other items, primarily within the company’s theme parks.

As one of the world’s foremost zoological organizations and a global leader in animal welfare, training, husbandry, veterinary care and marine animal rescue, the company is committed to helping protect and preserve the oceans, environment and the natural world.

Theme Parks

The company’s theme parks offer guests a variety of exhilarating experiences, from animal encounters that invite exploration and appreciation of the natural world, to both thrilling and family-friendly rides, educational presentations and spectacular shows. The company’s theme parks also provide guests special events and concerts throughout the year, including the company’s Seven Seas Food Festivals, Food & Wine Festivals, Kids’ Weekends, Inside Look behind the scenes events, Viva La Musica music celebrations and Summer Nights, Summer Spectacular, and other summer events. Additionally, the company features special seasonal events, such as its Halloween Spooktacular and Howl-O-Scream events and the company’s Christmas, Hanukkah and Kwanzaa events, along with a variety of other events or festivals throughout the year for holidays, such as Lunar New Year, Mardi Gras and Cinco de Mayo. The company’s theme parks are consistently recognized among the top theme parks in the world and rank among the most highly attended in the industry.

The company generally locates its theme parks in geographic clusters, which improves the company’s ability to serve guests by providing them with a varied, comprehensive vacation experience and valuable multi-park pricing packages. The company’s portfolio of owned theme parks includes the following:

SeaWorld

SeaWorld is widely recognized as the leading marine-life theme park brand in the world. The company’s SeaWorld theme parks rank among the most highly attended theme parks in the industry and offer up-close interactive experiences, educational presentations, special dining experiences, family-friendly and thrilling attractions and a variety of educational and entertainment offerings that immerse guests in the marine-life theme. The company also offers its guests numerous animal encounters, including the opportunity to work with trainers and feed marine animals, as well as themed thrill and family-friendly rides and entertainment that creatively incorporate the company’s one-of-a-kind zoological collection. The company owns and operates the following SeaWorld-branded theme parks:

SeaWorld San Diego spans 190 acres of waterfront property on Mission Bay in San Diego, California, is open year-round and is one of the most visited paid attractions in San Diego. SeaWorld San Diego is home to a number of attractions, including Arctic Rescue, a straddle coaster which opened in 2023 as the fastest and longest of its kind on the West Coast, Emperor, a floorless dive coaster, and Electric Eel, a triple-launch steel roller coaster.

SeaWorld Orlando is a 279-acre theme park open year-round and located in Orlando, Florida, which is the world’s largest theme park destination. In 2023, SeaWorld Orlando opened Pipeline: The Surf Coaster, a first-of-its-kind surf coaster. SeaWorld Orlando is also home to a number of thrilling and family-friendly rides and attractions, including Sesame Street Land, an immersive land which includes kids wet and dry play areas, interactive experiences, fun family rides and a Sesame parade, Ice Breaker, a quadruple launch coaster, Infinity Falls, a river rapid ride, and Mako, a high-speed hyper coaster.

SeaWorld San Antonio is one of the world’s largest marine-life theme parks, encompassing 397 acres in San Antonio, Texas. SeaWorld San Antonio is home to a number of attractions, including Tidal Surge, a Screaming Swing ride, Texas StingRay, the tallest, fastest and longest wooden coaster in Texas and Turtle Reef, a one-of-a-kind sea turtle attraction.

Busch Gardens

The company’s Busch Gardens theme parks are family-oriented destinations designed to immerse guests in international geographic settings. They are renowned for their thrill ride, entertainment and zoological offerings, as well as their beautiful landscaping and gardens. The company’s Busch Gardens theme parks allow the company’s guests to discover the natural side of fun by offering a family experience featuring a variety of attractions, roller coasters, educational experiences and high-energy theatrical productions that appeal to all ages. The company owns and operates the following Busch Gardens theme parks:

Busch Gardens Tampa Bay is open year-round and features exotic animals, shows and both thrill and family-friendly rides on 306 acres of lush natural landscape. The zoological collection is a popular attraction for families, and the portfolio of rides broaden the theme park’s appeal to teens and thrill seekers of all ages. In 2023, Busch Gardens Tampa Bay opened Serengeti Flyer, the world's tallest and fastest Screaming Swing. Busch Gardens Tampa Bay is also home to Iron Gwazi, a hybrid coaster, and Tigris, a triple launch steel coaster that catapults riders forward and backward.

Busch Gardens Williamsburg, a 422-acre theme park, is regularly recognized as one of the highest quality theme parks in the world, capturing dozens of awards over its history for attraction and show quality, design, landscaping, culinary operations and theming. Busch Gardens Williamsburg is home to a number of thrilling roller coasters and attractions, including DarKoaster, which opened as the first all-indoor straddle coaster in North America in 2023, Pantheon, a multi-launch coaster and Finnegan’s Flyer, an extreme swing ride.

Aquatica

The company’s Aquatica-branded water parks are premium, family-oriented destinations in a South Seas-themed tropical setting. Aquatica water parks build on the aquatic theme of the company’s SeaWorld brand and feature high-energy rides, water attractions, white-sand beaches and an innovative presentation of marine animals. The company positions its Aquatica water parks as companions to the company’s SeaWorld theme parks and owns and operates the following separately gated Aquatica branded theme parks:

Aquatica Orlando is an 81-acre South Seas-themed water park close to SeaWorld Orlando that is open year-round. The water park features state-of-the-art attractions for guests of all ages and swimming abilities, including some that pass by or through animal habitats. In 2023, Aquatica Orlando opened Turi's Kid Cove, a multi-feature water play area which also includes Tamariki Twirl, a kid-sized wave slide. Aquatica Orlando is also home to Reef Plunge, a body slide which passes through an underwater habitat, and Riptide Race, a dueling pipeline slide.

Aquatica San Antonio is an 18-acre water park located adjacent to SeaWorld San Antonio. The water park features a variety of waterslides, rivers, lagoons, a large beach area and private cabanas. Aquatica San Antonio is home to Riptide Race, a dueling pipeline slide and Tonga Twister, a high energy body slide.

Discovery Cove

Located next to SeaWorld Orlando, Discovery Cove is a 58-acre, reservations only, all-inclusive marine life theme park that is open year-round and features premium culinary offerings. The theme park restricts its attendance in order to assure a more intimate experience. Discovery Cove provides guests with a full day of activities, including the opportunity to interact with dolphins and sharks, snorkel with thousands of tropical fish, wade in a lush lagoon with stingrays and hand-feed birds in a free flight aviary.

Sesame Place

The company’s Sesame Place theme parks are the only theme parks in the United States entirely dedicated to the award-winning television show, Sesame Street, and its spirit of imagination. The theme parks share the company’s ‘education and learning through entertainment’ philosophy and allows parents and children to experience Sesame Street together through whirling rides, water slides, colorful shows and furry friends. The company owns and operates the following separately Sesame Place branded theme parks:

Sesame Place Philadelphia is a 55-acre theme park located in Langhorne, Pennsylvania. The theme park features dry and water rides, play areas, meet and greets, shows year-round events and a parade all themed to Sesame Street. Sesame Place Philadelphia is home to a number of attractions, including Bert & Ernie's Splashy Shores, a multi-feature water play area opened in 2023, and Big Bird's Tour Bus, a red double-decker bus which goes around and around with a Sesame Street-inspired cityscape as the backdrop.

Sesame Place San Diego is a 17-acre theme park opened in 2022 on the site of the company’s former Aquatica San Diego park in Chula Vista, California. The park features an interactive Sesame Street Neighborhood, where kids can play with immersive physical and digital character experiences. Guests also have exciting ways to engage with Sesame Street characters, including a live character show, a daily parade and one-of-a-kind photo opportunities. In 2023, Sesame Place San Diego opened The Count's Splash Castle, an enhanced water play area and expanded play structure. Along with ongoing park offerings, the park has a full lineup of exciting family-friendly events and seasonal celebrations throughout the year.

Water Country USA

Located on 222 acres, Virginia’s largest family water park, Water Country USA, features state-of-the-art water rides and attractions, all set to a 1950s and 1960s surf theme. Water Country USA is located near Busch Gardens Williamsburg and in 2023 opened Riptide Race, the first dueling pipeline slide in Virginia.

Adventure Island

Located adjacent to Busch Gardens Tampa Bay, Adventure Island is a 56-acre water park which features water rides, dining and other attractions that incorporate a Key West theme. In 2023, Adventure Island opened Shaka Laka Shores, a multi-feature splash and play zone. Adventure Island is also home to Rapids Racer, a dueling pipeline slide, and Wahoo Remix, a family raft ride with synchronized light and sound elements.

Products and Services

Admission Tickets

The company generates most of its revenue from selling admission to the company’s theme parks. The company engages with travel agents, ticket resellers and travel agencies, and directly with the company’s guests through its websites and social media, to promote advanced ticket sales and provide guest convenience and ease of entry.

Guests who visit the company’s theme parks have the option of purchasing multiple types of admission tickets, from single and multi-day tickets to season or annual passes. In addition, visitors can purchase vacation packages with preferred hotels, behind-the-scenes tours and educational animal encounters, specialty dining packages, and front of the line ‘Quick Queue’ access to enhance their experience.

In-Park Offerings

The company generates revenue from the sale of in-park products and services, primarily consisting of food, beverage and merchandise items.

Food and Beverage Offerings

The company strives to deliver a variety of high quality, creative and memorable food and beverage experiences for its guests. The company’s culinary team focuses on providing creative menu offerings and ways to deliver those offerings that appeal to its diverse guest base. The company also offers a variety of dining programs that provide quality food and great value to the company’s guests and drive incremental revenues. While the company’s menu offerings have broad appeal, they also cater to guests who desire healthy options and those with special allergy-related needs.

The company’s all-day-dining program delivers convenience and value to the company’s guests with numerous restaurant choices for one price for the entirety of their day visit to the park. The company also offers creative immersive dining experiences that allow guests to dine up-close with its animals and characters. The company’s commitment to care for the natural world extends to the food that the company serves. Some of the company’s menus feature sustainable, organic, seasonal, and locally grown ingredients that aim to minimize environmental impacts to animals and their habitats. In addition, through the company’s ongoing culinary supply chain management initiatives, the company is well-positioned to take advantage of changing economic and market conditions.

Merchandise and Other In-Park Service Offerings

The company offers guests the opportunity to capture memories through its products and services, including through traditional retail shops, game venues and customized photos. The company makes a focused effort to leverage the emotional connection of the theme park experiences, capitalize on trends, and optimize brand alignment with the company’s merchandise product offerings. In-park games are designed with the intention of creating positive family experiences for guests of every age. The company’s merchandise teams also focus on making a visit to its theme parks easy, convenient, and comfortable. This includes offering quick queue passes for front of the line access to popular attractions, reserved seating, cabana rentals and other guest conveniences like lockers or service vehicle rentals, such as strollers, electric personal carts and wheelchairs.

Consumer Products and Licensing

To capitalize on the company’s popular brands, the company leverages content through licensing and consumer product arrangements. The company developed licensed consumer products to drive consumer sales through retail channels beyond the company’s theme parks and continue to look for this channel to grow. In addition, the company has expanded its brand appeal through strategic alliances with well-known external brands, including Sesame Street and Build-A-Bear. The company has also incorporated Rudolph the Red-Nosed Reindeer and other well-known characters into five of the company’s park holiday programs under a license agreement with Character Arts, LLC, which runs through January 2029.

Group Events

At times the company hosts a variety of different group events and meetings at the company’s theme parks, both during the day and at night. The company’s parks provide a wide variety of unique venues, backdrops and products for groups and include venues, such as the icy walls of Antarctica, concert ready stadiums, outdoor pavilions, animal habitats, and fully air-conditioned ballrooms. The company’s special group ticket packages and offerings appeal to specialty markets, such as youth, sports, social (e.g., family reunions) and fraternal groups, as well as corporate groups seeking to recognize and reward their employees.

Park buy-outs have historically allowed groups to enjoy exclusive itineraries, including meetings, educational presentations and shows, up-close encounters with animals and behind-the-scenes tours. The company’s group facilities are available year-round and fully customizable as they can be built around any of the park’s special events, educational presentations, inspirational shows, or one-of-a-kind attractions. Each of the company’s theme parks offers attractive venues, such as SeaWorld Orlando’s Ports of Call, a dedicated special events complex and banquet facility that includes a ballroom, a collection of four outdoor pavilions and a courtyard in Orlando, or a fully enclosed and air-conditioned pavilion in Tampa.

Corporate Sponsorships and Strategic Alliances

The company seeks to secure long-term corporate sponsorships and strategic alliances with leading companies and brands that share the company’s core values, deliver significant brand value, and influence and drive mutual business gains. The company identifies prospective corporate sponsors based on their industry and industry-leading position, and the company select them based on their ability to deliver impactful value to its theme parks and the company’s brands, as well as to consumer products and various entertainment platforms. The company’s corporate sponsors contribute to the company in a multitude of ways, such as through direct marketing, advertising, media exposure and licensing opportunities. Some of the company’s corporate sponsors, such as the company’s partners at Coca-Cola, also join the company in making an impact on conservation efforts through contributions to the non-profit SeaWorld & Busch Gardens Conservation Fund.

Seasonality

Historically, the company generates the highest revenues in the second and third quarters of each year (year ended December 2023), in part because four of the company’s theme parks were historically only open for a portion of the year. As a result, approximately two-thirds of the company’s attendance and revenues were historically generated in the second and third quarters of the year and the company generally incurred a net loss in the first quarter. Even for the company’s eight theme parks, which have historically been open year-round, attendance patterns have significant seasonality, driven by holidays, school vacations and weather conditions.

Markets, Guests and Customers

The company’s theme parks are entertainment venues with broad demographic appeal and are located near a number of large metropolitan areas, including 6 of the 10 most populous metropolitan areas in the United States and 8 of the top 25 Popular Destinations in the United States. Additionally, because the company’s theme parks are divided between regional and destination theme parks, historically the company’s guests have included local visitors, non-local domestic visitors and international visitors.

Intellectual Property

The company is party to key license agreements as licensee, including the company’s agreements with Anheuser-Busch, Incorporated (‘ABI’) and Sesame Workshop (‘Sesame’).

Busch Gardens License Agreement

The company’s subsidiary, SeaWorld Parks & Entertainment LLC, is a party to a trademark license agreement with ABI, which governs the company’s use of the Busch Gardens name and logo. Under the license agreement, ABI granted to the company a perpetual, exclusive, worldwide, royalty-free license to use the Busch Gardens trademark and certain related domain names in connection with the operation, marketing, promotion and advertising of the company’s theme parks, as well as in connection with the production, use, distribution and sale of merchandise sold in connection with such theme parks.

The license extends to the company’s Busch Gardens theme parks located in Williamsburg, Virginia and Tampa, Florida, and may also include any amusement or theme park anywhere in the world that the company acquires, builds or rebrands with the Busch Gardens name in the future, subject to certain conditions.

The company has agreed to indemnify ABI from and against third party claims and losses arising out of or in connection with the operation of the theme parks and the related marketing or promotion thereof, any merchandise branded with the licensed marks and the infringement of a third party’s intellectual property. The company is required to carry certain insurance coverage throughout the term of the license.

The license agreement can be terminated by ABI under certain limited circumstances, including in connection with certain types of change of control of SeaWorld Parks & Entertainment LLC.

Sesame License Agreement

The company’s wholly-owned subsidiary, SeaWorld Parks & Entertainment, Inc. (‘SEA’), is a party to a license agreement with Sesame, a New York not-for-profit corporation. The License Agreement extends SEA’s status as Sesame’s exclusive theme park partner in the United States, Puerto Rico, and the U.S. Virgin Islands (the ‘Sesame Territory’), with a second Sesame Place theme park, which opened at the site of the former Aquatica San Diego in March 2022. The company also has the option to build additional Sesame Place theme parks in the Sesame Territory.

Under the terms of the license agreement, including the requirement for certain subsequent approvals from Sesame, Sesame granted SEA the right to use the Sesame Street Elements, such as in connection with the design, building, installation, theming, promotion, and operation of SEA’s existing Sesame Place theme park, located in Langhorne, Pennsylvania (the ‘Langhorne Sesame Place’) and additional Sesame Place theme parks in the United States, including Sesame Place San Diego (collectively, the ‘Standalone Parks’); in connection with the design, building, installation, theming, promotion, and operation of SEA’s existing Sesame Lands (known as Sesame Street Land at SeaWorld Orlando, which opened in spring of 2019, Sesame Street Bay of Play at SeaWorld San Antonio, Sesame Street Bay of Play at SeaWorld San Diego, Sesame Street Safari of Fun at Busch Gardens Tampa Bay, and Sesame Street Forest of Fun at Busch Gardens Williamsburg) and additional Sesame Lands, (collectively, the ‘Sesame Lands’); in connection with the Licensed Products; in marketing and promotional activities related to the Standalone Parks and Sesame Lands, including without limitation, marketing, advertising and promotion, character appearances and live presentations (both in park and in off-site promotional activities, such as schools, parades, conventions, etc.), and the Licensed Products; and/or (e) to seek and to enter into sponsorship agreements for specific sponsorships of Sesame Street-themed attractions.

In addition, SEA has been granted a license to develop and manufacture or have developed and manufactured products that utilize the Sesame Street Elements or to purchase products that utilize the Sesame Street Elements from Sesame’s third party licensees (collectively, the ‘Licensed Products’); to market, promote, advertise, distribute and sell the Licensed Products within each of SEA’s theme parks and through online stores on SEA’s websites and targeted primarily to consumers in the United States; and to contract with third party vendors to promote, distribute and sell the Licensed Products within the United States.

The term ‘Sesame Street Elements’ means all current and hereafter developed or owned titles, marks, names, characters (including any new Sesame Street characters shown on Sesame Street and owned in whole or controlled by Sesame), images, likenesses, audio, video, audiovisual, logos, themes, symbols, copyrights, trademarks, service marks, visual representations and designs, and other intellectual property (whether in two- or three-dimensional form and including animated and mechanical representations) owned or controlled by Sesame (or its affiliates), and associated with the ‘Sesame Street’ television property, whether previously (unless retired) or on ‘Sesame Street’ or whether hereafter developed or owned and the names and marks ‘Sesame Place’ and ‘Sesame Land,’ but expressly excluding ‘Kermit the Frog.’

Sesame has reserved rights to build family entertainment centers using the Sesame Street Elements subject to certain territorial restrictions surrounding SEA’s Sesame Place Standalone Parks and Sesame Lands within the Sesame Territory. The license agreement has an initial term through December 31, 2031, with an automatic additional 15 year extension plus a 5 year option added from each new Standalone Park opening. Pursuant to the license agreement, SEA pays specified annual license fees, as well as a schedule of royalties based on revenues earned in connection with admissions, sales of Licensed Products, all food and beverage items utilizing the licensed elements and any events utilizing such elements if a separate fee is paid for such event.

Trademarks, Service Marks and Trade Names

The company owns or has rights to use a number of registered and common law trademarks, service marks and trade names in connection with its business in the United States and in certain foreign jurisdictions, including United Parks & Resorts, SeaWorld Entertainment, SeaWorld Parks & Entertainment, SeaWorld, Shamu, Busch Gardens, Aquatica, Discovery Cove, Sea Rescue and other names and marks that identify the company’s theme parks, characters, rides, attractions and other businesses. In addition, the company has certain rights to use Sesame Street marks, characters and related indicia through a license agreement with Sesame Workshop.

Competition

Principal direct competitors of the company’s theme parks include theme parks operated by The Walt Disney Company, Universal Parks and Resorts, Six Flags Entertainment Corporation, Cedar Fair, L.P., Merlin Entertainments ltd., and Hershey Entertainment and Resorts Company.

Regulatory

Key statutes and treaties relating to the display, possession and care of the company’s zoological collection include the Endangered Species Act, Marine Mammal Protection Act, Animal Welfare Act, Convention on International Trade in Endangered Species and Fauna Protection Act and the Lacey Act. The company must also comply with the Migratory Bird Treaty Act, Bald and Golden Eagle Protection Act, Wild Bird Conservation Act and National Environmental Policy Act, among other laws and regulations.

The company submitted a comment letter to APHIS expressing the company’s views on the Proposed APHIS (the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service) Regulations.

History

The company was founded in 1959. It was incorporated in in Delaware 2009. The company was formerly known as SW Holdco, Inc. and changed its name to SeaWorld Entertainment, Inc. in 2012 and then to United Parks & Resorts Inc. in February 2024.