SeaWorld 3Q earnings drop 28 Pct following drop in visitors

By Staff Reporter - 12 Nov '14 22:19PM

SeaWorld Entertainment Inc. announced Wednesday that its third-quarter earnings dropped 28 percent from a year ago following a drop in visitors to its theme parks and negative media attention.

The San Diego-based company earned $87.2 million, or $1.00 per share, down 28 percent from $120.7 million, or $1.34 per share, in the third quarter of 2013. Revenue declined 8 percent from the year-ago quarter to $495.8 million. Its cash flow from operating activities was $136.4 million, down from $178.6 million in the year-ago quarter.

Meanwhile, the number of visitors attending the theme parks to see their attractions has dropped from 8.9 million last year to 8.4 million this year across its 11 locations, the company said.

"The decline results from a combination of factors including negative media attention in California along with a challenging competitive environment, particularly in Florida," the company said.

"Clearly 2014 has been a challenging year, but I am confident we are taking the necessary steps to address our near term challenges and position the company to deliver value over the long term," said Jim Atchison, CEO and President.

The company has been hard hit following the release of the documentary "Blackfish" which urges sea orcas should not be confined to such a small space.

Shares of SeaWorld dropped $1.90, or 10.2 percent, to $16.70 in morning trading Wednesday. Shares of SeaWorld had been down 31 percent through Tuesday's close since its initial public offering in April 2013. Shares have fallen 36 percent since the beginning of the year.