EX-99.2 3 d692873dex992.htm EX-99.2 EX-99.2
March 13, 2014
Q4 2013 Earnings Call Presentation
Exhibit 99.2

Cautionary Statements
2
Statement Regarding Forward-Looking Statements
This presentation contains “forward-looking statements”
within the meaning of U.S. federal securities laws. All statements contained in this presentation other than
statements
of
historical
facts
are
forward-looking
statements.
You
can
identify
forward-looking
statements
by
the
use
of
words
such
as
“may,”
“might,”
“will,”
“should,”
“expect,”
“plan,”
“anticipate,”
“believe,”
“estimate,”
“project,”
“predict,”
“intend,”
“future,”
“potential,”
“continue,”
and other similar expressions.
Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs, estimates and projections, and various
assumptions, many of which are inherently uncertain and beyond our control. Such expectations, beliefs, estimates and projections are expressed in good faith and
management believes there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, estimates and projections will
be achieved and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to
risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements, including risks detailed
in SeaWorld Entertainment, Inc.’s (“SeaWorld”
or the “Company”) final prospectus filed on December 12, 2013 with the U.S. Securities and Exchange Commission.
Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect
actual results, subsequent events or circumstances or other changes affecting forward-looking information except to the extent required by applicable securities laws.
Statement Regarding Non-GAAP Financial Measures
This presentation includes several metrics which are not calculated in accordance with the generally accepted accounting principles in the United States (“GAAP”),
including Adjusted EBITDA, Adjusted Cash Flow from Operations and Adjusted Free Cash Flow. These metrics have important limitations and should not be considered
in
isolation
or
as
a
substitute
for
measures
of
the
Company’s
financial
performance
or
liquidity
prepared
in
accordance
with
GAAP.
In
addition,
these
metrics,
as
presented by the Company, may not be comparable to similarly titled measures of other companies due to varying methods of calculations. 
Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, as further adjusted to exclude
certain unusual, non-cash and other items permitted in calculating covenant compliance under the indenture governing the Company’s existing senior notes and the
credit agreement governing the Company’s senior secured credit facilities. The Company believes that the presentation of Adjusted EBITDA is appropriate to provide
additional information to investors about the calculation of, and compliance with, certain financial covenants in the indenture and the credit agreement. Adjusted EBITDA
is a material component of these covenants. The Company also uses Adjusted EBITDA in connection with certain components of its executive compensation program.
In addition, investors, lenders, financial analysts and rating agencies have historically used EBITDA-related measures in the Company’s theme park and entertainment
industry, along with other measures to evaluate the Company’s ability to meet its debt service requirement, to estimate the value of a company and to make informed
investment decisions. Adjusted Cash Flow from Operations is defined as net cash provided by operating activities reduced by the one-time cash payment of the 2009
Advisory Agreement termination fee. Adjusted Free Cash Flow is Adjusted Cash Flow from Operations reduced by capital expenditures. For a reconciliation of Adjusted
EBITDA to net income and Adjusted Cash Flow from Operations and Adjusted Free Cash Flow to Cash Flow from Operating Activities, please refer to the Appendix in
this presentation or our 8-K Quarterly Earnings Release, which can be found at our website www.seaworldentertainment.com.
Statement Regarding Use of Registered Trademarks
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
SeaWorld
Entertainment™,
SeaWorld
Parks
&
Entertainment™,
SeaWorld
®
,
Shamu
®
,
Busch
Gardens
®
,
Aquatica™,
Discovery
Cove
®
,
Sea
Rescue™,
and
other
names
and
marks
that
identify
our
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
certain
license
agreements
with
Sesame
Workshop
(f/k/a
Children’s Television Workshop).
Solely
for
convenience,
the
trademarks,
service
marks
and
trade
names
referred
to
in
this
presentation
may
be
without
the
®
and
™
symbols,
but
such
references
are
not intended to indicate, in any way, that the Company will not assert, to the fullest extent under applicable law, its rights or the rights of the applicable licensors to these
trademarks, service marks, and trade names.

Full Year 2013 Highlights
3
•
Successful initial public offering
•
Amendment of credit facility
•
Commencement of quarterly dividend program
•
Completion of secondary offering by selling
stockholders and concurrent share repurchase from
them
•
Opening of Antarctica: Empire of the Penguin
•
Opening of 11th theme park Aquatica San Diego
•
Sea
Rescue
Season
3
debut;
show
surpasses
100
million viewers
•
Debut of new television series The Wildlife Docs
•
More than 23,000 rescued animals
•
Launch enhanced e-commerce and mobile platforms
•
Delivered on original guidance for both revenue
($1.46 billion to $1.49 billion) and Adjusted EBITDA
($430 million to $440 million)
•
Achieved record revenue of $1.46 billion and record
Adjusted EBITDA of $439.1 million
A year of many accomplishments

Consolidated 2013 Financial
Results
4
•
Strong performance at our
SeaWorld-branded parks
propelled the Company to
record consolidated Revenue
and Adjusted EBITDA
•
Delivered on our financial and
operating commitments made
in 2013
Focus on profitable growth and financial performance
Adjusted EBITDA
Revenue
Revenue Per Capita
(In $ millions except per capita data)
1
Excludes a one-time fee of $46.3 million paid to an affiliate of Blackstone in connection with the termination of the 2009 Advisory Agreement.
2
Defined as cash from operations minus capital expenditures. Excludes a one-time fee of $46.3 million paid to an affiliate of Blackstone in
connection with the termination of the 2009 Advisory Agreement.
CAGR
+4.8%
Adjusted Free Cash Flow
CAGR
+5.3%
CAGR
+7.2%
CAGR
+98.9%
Adjusted Cash Flow from Operations
CAGR
+11.9%

Twin Goals: Growing Adjusted
EBITDA and Free Cash
Strong Balance Sheet
Capex as % of Revenue
Focus on high flow-through revenue and cost management
5
•
Pursue disciplined capital
investment and expansion
opportunities
•
Target average capex run-
rate as a percent of
revenue is ~10%
(In $ millions)
•
Maintain stable levels of
leverage while enhancing
free cash flow through
refinancing opportunities
1
At IPO shows 12/31/2012 pro forma for the IPO.
2
Excludes unamortized debt discount.
3
Represents 12/31/12 net debt pro forma for the IPO divided by 2012 Adjusted EBITDA.
•
Expand revenue through
high flow-through
opportunities
•
Continue implementation of
cost and labor management
objectives
Adjusted EBITDA Margin
+140
bps
-
550
bps

2014 –
The Year Ahead
6
•
New attractions will open in 9 of our 11 parks
–
50th
Anniversary
Celebration
“Sea
of
Surprises”
at
all
three SeaWorld parks
–
Explorer’s
Reef
at
SeaWorld
San
Diego
–
Falcon’s
Fury
at
Busch
Gardens
Tampa
–
London
Rocks
show
at
Busch
Gardens
Williamsburg
–
Cookie’s
Monster
Land
at
Sesame
Place
–
Colossal Curl
water slide at Water Country USA
–
Ihu’s
Breakaway
Falls
thrill
slide
at
Aquatica
Orlando
–
Roa’s
Aviary
at
Aquatica
San
Antonio
–
Taumata
Racer
water
slide
at
Aquatica
San
Diego
•
Continued progress on domestic and international
business development opportunities
•
Showcase our intellectual properties through out-of-
park brand extensions
–
Expansion of Sea Rescue and The Wildlife Docs 
television shows via DVD and iTunes sales
–
Other media, film, television, music and digital ventures
–
Consumer products and licensing
Focus on delivering a compelling lineup of new attractions and entertainment

2014 Annual Guidance
7
Focus on strategic execution and maintaining momentum
•
The following estimates are based on current management expectations
–
Revenue: $1.49 to $1.52 billion or 2% to 4% growth
–
Adjusted EBITDA: $450 to $465 million or 3% to 6% growth
•
Q1 2014 Performance drivers
–
Attendance shift out of Q1 into Q2 ( ~250K) due to Easter
–
Attendance impact from less park operating days ( ~100K)
–
Costs associated with SeaWorld’s 50th Anniversary celebration ( ~$10 million)
•
2014 Capital spending
–
Spend at 11% of revenue due to timing of some 2013 spend shifting into 2014
–
Total spend for 2013-2014 remains unchanged
Other Guidance
Management Guidance

March 13, 2014
Appendix

Reconciliation of Adjusted
EBITDA to Net Income
2011
2012
2013
Net Income
$19
$77
$50
Provision for Income Taxes
13
39
25
Loss on Early Extinguishment of Debt
--
--
32
Interest Expense
110
111
94
Depreciation & Amortization
214
167
166
Secondary offering costs
--
--
1
Termination of Advisory Agreement Fee
--
--
50
Advisory Fee
6
6
3
Equity Based Compensation Expense
1
2
6
Carve-Out Costs
6
--
--
Debt Refinancing Costs
--
1
1
Other Adjusting Items
--
1
1
Other Non-Cash Expenses
12
10
10
Adjusted EBITDA
$382
$415
$439
1
Column may not foot due to rounding.
9
(In $ millions)
1

Reconciliation of Adjusted Free Cash
Flow to Cash Flow from Operations
2011
2012
2013
Cash Flow from Operations
$268
$304
$290
Advisory termination fee cash payment
--
--
46
Adjusted Cash Flow from Operations
268
304
336
Capital Expenditures
225
192
166
Adjusted Free Cash Flow
$43
$112
$170
10
(In $ millions)

March 13, 2014
Q4 2013 Earnings Call Presentation