Joel Manby says financial discipline 'a top priority' as SeaWorld aims to cut US$40m from budget by 2018
SeaWorld CEO Joel Manby has said that financial discipline remains a top priority for the operator, after end of year results saw both revenue and attendance decline on 2015 figures.
The company announced a company-wide restructuring in December, which saw 320 jobs cut after a sharp dip in attendance. The restructuring was necessary after heavy decline at SeaWorld’s Florida and Northeast park locations saw attendance drop in 2016 by 471,000 visitors – a 2.1 per cent overall decrease across the company’s parks year-on-year.
On top of that total revenues for 2016 were US$1.34bn (€1.26bn, £1.07bn) – slightly lower than the US$1.37bn (€1.29bn, £1.1bn) recorded in 2015. The company also recorded a net loss of US$12.5m (€11.8m, £10m) in 2016, compared with a net profit of US$49.1m (€46.3m, £39.5m) the year before.
“We’ve stepped up our intensity in terms of enhancing financial discipline across the organisation,” said Manby, speaking during an earnings call. “We have made significant progress on this front. Last quarter, we announced a comprehensive cost optimisation programme to achieve a targeted US$40m (€38m, £32.5m) in net savings by the end of 2018.
"During the fourth quarter, we realised approximately US$1.5m (€1.4m, £1.2m) in savings from our cost optimisation programme and reported costs of US$8.9m (€8.4m, £7.2m) in relation to the elimination of positions.”
Manby added that the company’s cuts were significant as SeaWorld continues to scrutinise its own financial outlays. He also said the company was becoming much more efficient in its use of capital expenditure for development of physical assets such as new rides.
“Our focus on enhancing shareholder value is reinforced by the evolution of our governance practices, deepening the alignment of our policies and practices with the best interest of our shareholders,” said Manby.
“We are strengthening our foundation and intensifying our focus on execution. With our brand evolution well underway, our full attention, energy and resources are focused on running the business with maximum efficiency to generate improved results.”
Cuts have been spread across the company’s 12 theme parks, including its SeaWorld parks in Orlando, San Diego and San Antonio, in addition to its Sesame Place attraction in Pennsylvania and Busch Gardens in Florida and Virginia. The company’s headquarters in Orlando were also affected.
Improving its financial discipline is one part of a Five Point Plan to turn around the struggling company, with SeaWorld also working to reposition its brand from animal entertainment to ‘Experiences that Matter’, addressing challenges such as the Blackfish backlash, deliver distinct guest experiences that are fun and meaningful, pursuing organic and strategic revenue growth and finally improving financial discipline.
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