(Adds details, updates shares)
Aug 13 SeaWorld Entertainment Inc
shares lost more than a third of their value after the theme
park operator slashed forecasts amid a raging controversy over
its killer whale shows that's hurting attendance.
The shares fell as much as 34.5 percent after the company
also reported lower-than-expected profit and revenue for the
second quarter ended June 30.
Protests against ocra shows at SeaWorld's amusement parks
intensified particularly after a 2013 film, "Blackfish,"
documented the killing of a trainer at the company's Orlando,
Florida park in 2010 by the whales.
A bill has been introduced in California proposing a ban on
using killer whales in entertainment shows at amusement parks.
"The Company believes attendance in the quarter was impacted
by demand pressures related to recent media attention
surrounding proposed legislation in the state of California,"
SeaWorld said in a statement on Wednesday.
Attendance at SeaWorld's parks rose 0.3 percent in the
quarter, helped by a late Easter this year and favorable
weather, but admission per capita decreased by 2.5 percent to
The company defines admission per capita as admissions
revenue divided by total attendance.
SeaWorld said it expects revenue to decline 6-7 percent this
year. That translates to revenue of $1.36-1.37 billion for the
full year, compared with the $1.46 billion the company made in
It had previously forecast full-year revenue of $1.49
billion-$1.52 billion, which implied a growth of 2-4 percent.
SeaWorld expects adjusted EBITDA (earnings before interest,
tax, depreciation and amortization) to fall 14-16 percent in the
full year, which works out to $368.8-377.6 compared with $439.1
a year ago.
It had earlier forecast adjusted EBITDA at $450-$465
Analysts on average had expected full-year EBITDA of $456
million on revenue of $1.5 billion, according to Thomson Reuters
In the second quarter, sales fell 1.5 percent to $405.2
million, hurt by a 1.8 percent decline in per capita guest
spending as the company increased promotions.
Net income was $37.3 million, or 43 cents per share,
compared with a net loss of $15.9 million, or 18 cents per
share, a year earlier.
The numbers missed analysts' average estimate for a profit
of 59 cents per share on sales of $445.3 million.
The company's stock, which closed at $18.90, was the top
percentage loser on the New York Stock Exchange. Up to Tuesday's
close, the stock had lost about 16 percent since its debut in
April last year.
(Reporting by Shailaja Sharma and Sruthi Ramakrishnan in
Bangalore; Editing by Maju Samuel and Feroze Jamal)