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Okay, from our studios in Los Angeles and Tampa. This
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is Green Tag Theme Park and thirty. I'm Philip from
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Gantum Mighty and Controls that I'm joined as always by
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my delightful co host Scott Swinson of Scott Swinson Creativelopment.
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Yes that's him on Green Tag. We look at the
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week's top news and we pick the stories that we
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think are most important for business professionals in the theme
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park space. This week we're going to be talking about
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the earnings that came out from United Parks and hopefully
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we're going to get to the Warner Brothers deal, which
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we've covered in the past. But first we want to
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thank everybody for subscribing because we finally got to over
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a thousand subscribers and guess it yeah and their celebration yay.
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And we made about thirteen dollars last week, which is
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almost enough for Scott and I both to buy spinach espressos.
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Almost almost. You know, Spanish espressos have gone up since
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we've started talking about them, you know, mann is really
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we are such we are such influencers. The demand for
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spinach espressos has skyrocketed now I think three people have
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ordered them now, so it's it's significantly greater than it
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once was.
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And we wanted to start off also this week by
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replying just Ray briefly to some comments from last week,
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one of which we just did, and the other two
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come from Eric go two two ninety three, who said,
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I'm not sure it's accurate to say Christmas is your
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biggest moneymaker for the parks. They've seen parks it's not
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their busiest time nor their most profitable period. And then
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that kind of dovetails slightly with a comment that ge
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Robbel made whose comments every week thank you for that.
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He says, you guys are thinking regional parks are like
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the destination parks in Florida and Los Angeles that you
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live near, or holiday events are well attended. So Scott
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has worked with a lot of small attractions and a
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lot of small stuff. So I think the kind of
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a little bit of the premise that Christmas is only
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profitable in certain regions I would push back on, but
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I fell let's go do it well. Think.
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I think the first thing we have to clarify is
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we did not say or if we did say it,
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or led you to believe this. This was not our
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intent that Christmas is the biggest money maker. I'm not
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sure that Christmas is the biggest money maker. In fact,
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I know it's not. However, well, I think what we
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said was and we can go back and you know,
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watch the tape, I suppose, but what we meant, or
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what I meant was Christmas is one of those things
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that if you can't make money at Christmas, you have
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bigger problems. You know, it's not the biggest money maker,
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but it's important to recognize that if you have a
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Christmas event and you get rid of it, you're going
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to get rid of that attendance. People aren't going to
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come just because you're open with your core product. If
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you're not doing a Christmas event. The same is true
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with Halloween, they're not going to come to your park
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that extra time. You have to find a way. You know,
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Christmas and Halloween specifically are double dipping kinds of events,
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the kinds of events that get your your core people
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that would be there, and then on top of it,
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you're adding additional faces. I also think it's important because
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one of the comments in there mentioned that the passolders
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aren't coming to the seasonal events, but that's not the
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purpose of a passholder or a seasonal event per se.
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The passolders buy for the core product. Yes, they like
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the seasonal events. It makes it gives their pass a
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more perceived, higher perceived value. But what seasonal events really
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do is introduce your park or introduce your attraction to
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a new audience, an audience that is not coming to
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your park for your core product, which has other issues.
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I mean that clearly points out other problems that you
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may be having, but specifically when it comes to the
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smaller seasonal parks, I don't know if I would say
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that that seasonal events, specifically Halloween and Christmas are not
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well attended, because you know, a lot of my clients
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and this is not just attending or living near. This
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is actually working with and getting the hard numbers, which
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because of my NDAs I'm unable to share. But I
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will say that things like the Indianapolis Zoo broke records
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during their when we when we ramped into their Halloween event,
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they broke records for the month of October, and then
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we added and and plussed their Christmas event as well,
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and that also led them to a record breaking month.
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So I think I think I think what what I'm
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trying to say, and whether it's being conveyed or not,
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I don't know, but I'll try to restate it to
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make it make sense. With with seasonal events, if you
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if you want a short term, short term financial save,
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lean into your seasonal events. Don't get rid of them
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because your core product. If you're having money troubles your
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core product, more trash cans is not going to earn
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you more money. But if you lean into your seasonal events,
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you're going to get more money in the short term
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and potentially introduce more people to your product. So that's
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that's why I say seasonal events. Closing seasonal events is
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the opposite of what you should be doing if you're
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trying to save money. If you're trying to save money,
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shorten your operating calendar, Shorten you're operating day of your
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core product. Instead of being open till midnight during the summer,
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be open till ten. Save those two hours a day
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of labor times the seven hundred employees you have. If
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you're a larger park, you know, save that money. But
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don't get rid of your Christmas event. Don't get rid
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of your Halloween event because those drive additional or incremental revenue.
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And anyone who says, and I have lived this, and
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I'll name names, I've lived this at Bush Gardens. I
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have lived this at Zoo Tampa. So we've got a
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destination park and a regional park or a local. When
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you say I'm going to get rid of Christmas and
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people will come anyway because it's the holiday, that is
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not true. At least in my life experience. That has
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not been the case now.
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Well, not with so much competition also arising from all
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sorts of different places. That's that's the problem.
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When you get rid of your Christmas event or your
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Halloween event and you just think, well, they're going to
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come anyway, so we don't need to invest the money
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in it. No, what they're going to do is they're
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going to go to the park that is doing a
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Christmas event because that's what they're in the mood for.
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That's what the season dictates. So if you get rid
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of a seasonal event, you have to have you have
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to have a plan to regain that attendance. And that's
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not anecdotal.
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That is.
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Like I said, Unfortunately, because of the documents that I
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have signed, I can't share the numbers on that information.
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But suffice to say, in theory and in practice that
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is that is the reality. Yeah, So I just think
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it's important. But I never and I don't want you
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guys to think for a moment that I'm saying stop commenting.
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I am not. I am saying exactly the opposite. Thank
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you for commenting, and whether you agree with us or not,
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whether you share additional information and dig deeper than we
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have time to. I mean, let's face it, We've only
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got thirty minutes a week, so you guys have the
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time to go in and Philip puts in significantly more
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than thirty minutes obviously on this show, because he does
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all of the deep dive research. But I think it
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is I think it is very important for us, and
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very important for your fellow listeners to have these kinds
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of dialogues, to have these kinds of comments on the
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videos or wherever wherever it is that you are commenting
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and having these discussions. So if you can add additional depth,
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that's great. But I also like the opportunity if I
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have misinterpreted or sorry, misrepresented something, I love the opportunity
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to come back and try to clarify it. Because that
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just makes me a better communicator in the long run.
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So thank you so much for your comments, thank you
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for your subscriptions, yay, thank you for being listeners. So
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keep being active participants in this project, because that's the
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way I clearly view it, and that is it is
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a project that gives Philip and I the opportunity to
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have a discussion because to be completely transparent, we used
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to have these discussions before we had a podcast. So
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we just decided, hey, you know what, other people might
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be interested in this because we discovered, oh god, I'm
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gonna tell tales out of school. We were in a
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trade show once and it was the two of us
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talking in a corner somewhere because we thought it would
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just be two of us talking about the industry, and
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before we knew it, we were surrounded by other people
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in the industry who are then contributing. We're just doing
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it digitally now, you know, we're just doing it all
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the over the internet now, So again, keep this kind
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of conversation going. We are supporters of the industry, and
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when we can have people talking about the industry and
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not just who has the coolest roller coaster or what
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is the newest dark ride that's opening, or why isn't
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Epic open at all? Or why isn't anything.
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An epic open?
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You know, those are the kinds of there's plenty of
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that out there, But what we want to talk about
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is the business itself and for business professionals like you
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were listening, so thank you very much.
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And let's talk about six Flags now and this yes, well, okay,
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so last week we talked about six Flags and one
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of the comments in last week's episode was asking about
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how it compares to SeaWorld, And we got the earnings
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this week for sea World, so now we can kind
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of transition over into talking about some of those United
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Parks earnings. So I did way too much research into this,
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so I kind of have like my brain is too
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full of information. But after reading everything and looking at
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everyone's analysis on this and looking at all the numbers,
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here's what here's I think to me, the biggest summary
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here is that they for whatever reason, well there are reasons,
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but basically we know that United Parks is primarily owned
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by a private equity firm, and we know that that
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sometimes brings in some you know, distinct ways of operating.
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So basically to me, it looks like last year, this
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argument report they put out was all bad numbers, right,
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everything was bad. So like attendant like in like literally
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everything's that revenues down, Attendants downs, and then it comes
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down total revenue per capita is down, mission per capita
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is down. The only bright spot in all of these
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numbers is that their in part per cap spending was
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up two point one percent, but only in Q four.
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For the year as a whole, it was only up
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one percent. Also, that could be partially inflation and related costs.
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You know that that's like the last quarter was higher,
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but the year looking at the year, one percent is
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still pretty low. So especially bright spot. So I think
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on its surface, these all these numbers all look like
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really really bad, and you're kind of like, eh, they're
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doing terribly. However, during that time, they also did an
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enormous amount of stock by backs. They have over the
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last fourteen months, they've spent two hundred and forty seven
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million in stock by backs, which is more than they
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even generated in pre cash flow they generated one hundred
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and sixty two They spent this amount, and it's also
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the other thing here to note is that they're their
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ROI was cut in half last year. Right, So in
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twenty twenty four their their expansion all right, their expansion
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capex are In twenty twenty four of their capex was
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seventy million. In twenty twenty five it was thirty five million.
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So I think this is more the picture, clear picture
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to me. So they basically reduced their capex by half.
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They spent an incredible amount of money on stock by backs,
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but also all of their numbers are down except for
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maybe in park spending. Kind of so to me, this
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is kind of this does bring go back to the
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private equity thing where it's like they're driving the impetus
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to to purchase to do these buybacks. Then you might
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ask why. I don't think we really know the real answer.
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I mean, they have nobody, you know, Like that's kind
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of like reading the tea leaves kind of a thing.
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It's conjecture to figure out why they are. But I
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would say, you got we got a little bit of
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it in the earnings call where the CEO talked about
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how he thinks that the stock is undervalue basically, where
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like basically his argument is he thinks that the that
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the stock is undervalued and it's because that they he
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thinks that their their assets and their property is worth
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a lot more. And if that is true, you could
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see why there's an argument for at this point, for
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putting so much money into stock buybacks right right now,
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where it's like it's undervalued, so now it is a
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good time to do this. I'll read you what he said.
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So he said. This is a direct quote. He said.
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We have over two thousand acres of owned real estate,
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including over four hundred acres of developed land. We estimate
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the replacement cost of our parts to be over ten
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billion dollars, or two and a half times our current
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enterprise value. In other words, our current enterprise value is
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less than half the replacement cost of our assets. While
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the public markets may not be appropriately recognizing the value
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of our assets, others are. We have received multiple sale
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leaseback proposals that we are currently evaluating, and have active
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discussions with various partners on hotel development, timeshare opportunities, residential development,
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and other commercial development properties. There's nothing more to share
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on this today, and we will update you if we
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have something to share. So to me, I think that's
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what's going on. I think it's that they think that
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maybe potentially, they really do believe that the stuff is
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worth more than it's being valued at, and so they're
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using the opportunity right now to do a lot of
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buybacks and kind of reduce some help make their EPs
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or their earnings per share number look a little bit better,
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you know, because even though they're you know, bleeding money
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and all, this looks better. It also seems like they
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spend a lot of money in advertising trying to get
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people into the parks, and that was a huge cost
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in They kind of talked a little bit about how
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that didn't really work or not worked that well, but
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you can see where their attendants still fell, but they
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got a little bit extra spending. It's just to me, though,
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it seems like most of the complaints that we always
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get for the United Parks is similar to those in
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six Flags, and that everybody always complains about how under
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maintained they are. And if you're looking then at the
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amount of money, well, yeah, they spent half the amount
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in Capex and they did theater, so come on. That's
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kind of leads to it. And in terms of what
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they talked about the future, they put a big list
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out about all the stuff they're doing in the future
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and all this kind of stuff. There was a telling
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moment on the call where one of the analysts pressed
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them because they said last year that they were going
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to target fifty to seventy million of cuts, and then
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they kind of said the same thing this year, and
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one of the analysts was like, you said that last year,
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so like, what's going to change and he was like,
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we're really focused on it. Okay, So so, but it's
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this weird situation right where you're like, it's almost like
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they're trying to please private equity more than because it's
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like they're saying, we're going to do all these new
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things and make everything great, as everyone says, but their
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00:15:29.720 --> 00:15:32.399
numbers are in the toilet. But they've been doing buybacks.
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But also they're going to reduce costs somehow magically. You mean, like,
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what do you think, Scott? I mean you you've you've
291
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been in this in this shit.
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This is this is what I call these so sad
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concept s O s A D same old stuff another day.
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So in the time in the twenty one years that
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I worked at Busch Gardens in Tampa, the parent company
296
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was Bush Entertainment Corporation in bev for a hot second
297
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Blackstone and then publicly traded. So again, every time there's
298
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a new every time there's a new quote unquote owner
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00:16:28.840 --> 00:16:32.360
or business that is leading the development of the parks,
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they go through this same identity crisis. And that's what
301
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I'm going to call it, an identity crisis. The fact
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that you know, changing to United Parks and Resorts. To me,
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that was the biggest clue, and I think we've seen
304
00:16:46.799 --> 00:16:51.639
it echoed here. Yes, the parks own a lot of
305
00:16:51.759 --> 00:16:56.879
land that is an asset, is a valid asset, but
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00:16:56.919 --> 00:16:59.679
it's an asset that only is transferred into dollars when
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00:16:59.679 --> 00:17:03.639
it's old or when it's leased. And so if they
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are going to make their business model less of a
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theme park company and more of a resorts company where
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they can do hotels and time shares and that sort
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of thing, then that's a way to sort of translate
312
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some of that money or some of that land into money.
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You cannot.
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00:17:25.799 --> 00:17:29.079
I mean, I think it's important to recognize you cannot
315
00:17:29.400 --> 00:17:34.200
save your way into profit. It is impossible. If that
316
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is the only thing that you are doing. Reducing costs
317
00:17:39.839 --> 00:17:42.079
it does not make you profitable. It sounds like it would,
318
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but reducing costs while also working harder to get the
319
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more for the buck that you are spending. That will
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help you with profits. But at this point they got
321
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to find another way to generate revenue, and I think
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he played his hand. I think when he starts talking
323
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about the assets, you know, assets mean the stuff we
324
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can sell to make money. So don't think of it
325
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as oh, well, look they've got all these these wonderful parks. Yeah,
326
00:18:10.279 --> 00:18:13.039
but let me let's go back to a park that
327
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they did own at one point in time called SeaWorld, Ohio,
328
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which is now I just looked it up. It is
329
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now a housing development. It was right across the right,
330
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across the lake from Giaga Lake Theme Park, also owned
331
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by six Flags. I have to mention six Flags at
332
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least once. It's the show. So they bought those two
333
00:18:32.079 --> 00:18:34.920
parks and it is now a Ford dealership and a
334
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Pulty home development. So is this mention of assets a
335
00:18:44.039 --> 00:18:46.000
good thing or a bad thing for the parks that
336
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I don't know. That I don't know, and I'm sure
337
00:18:49.079 --> 00:18:50.920
there's gonna be some comment that's going to say it's
338
00:18:50.920 --> 00:18:52.400
a bad thing or it's a good thing or whatever.
339
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But the only way an asset gets transferred into is
340
00:19:01.799 --> 00:19:06.079
to either you can either sell it or develop it.
341
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But to develop it costs money. So you know, it's
342
00:19:12.079 --> 00:19:15.039
sort of like saying, I have a diamond ring, but
343
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I'm homeless. Why don't you sell the diamond ring? Oh no,
344
00:19:18.079 --> 00:19:19.920
I could never get rid of that asset. Okay, then
345
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eat it or belive in it. I don't know. So
346
00:19:23.920 --> 00:19:28.000
I think that I think that this call is interesting.
347
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I think that the buybacks also lead me to believe
348
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that there's going to be some because again, if the
349
00:19:39.359 --> 00:19:41.359
more stock they own, the more they are, the more
350
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percentage they own of those assets, that's right. So by
351
00:19:45.880 --> 00:19:48.519
buying that stockback, it puts them in a much better
352
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place to be more profitable when or if they sell
353
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some of those assets off. Now, I mean, let me
354
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give you some very specific examples, and this is not
355
00:19:58.119 --> 00:20:01.440
insider information. Anybody can going to map and see this.
356
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Look at SeaWorld, Texas. Look at SeaWorld in San Antonio.
357
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That park is gigantic. It's so big that they actually
358
00:20:08.799 --> 00:20:10.559
took part of it and made a whole nother park.
359
00:20:10.599 --> 00:20:13.119
They you know, they a part that was not being
360
00:20:13.200 --> 00:20:20.160
used for years became Aquatica. So there's that they still
361
00:20:20.200 --> 00:20:24.720
have land surrounding it that is not being used. Bush
362
00:20:24.759 --> 00:20:27.559
Tampa is a little different because it is hemmed in
363
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on all sides, except they do still own a large
364
00:20:31.799 --> 00:20:35.400
parcel of land diagonally located from the park that could
365
00:20:35.480 --> 00:20:39.279
be sold off. It is currently being used for overflow parking,
366
00:20:40.119 --> 00:20:42.400
which if their attendance numbers stayed the way they are,
367
00:20:42.440 --> 00:20:47.319
they probably won't need it, but that could be sold off.
368
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There's when they say, you know, we've got great assets.
369
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That makes me nervous and maybe I'm wrong, Maybe I'm wrong.
370
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Maybe the goal is to keep it in the family,
371
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but just develop it as a you know, as a
372
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resort or something along those lines that they still own
373
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and operate, but that still takes money. And if they're
374
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reducing their capital spend, if they're reducing their capital spend,
375
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then where's that money gonna come from?
376
00:21:13.279 --> 00:21:16.720
Yeah, that's right. It just it was just interesting because
377
00:21:16.759 --> 00:21:18.680
we're looking at these two back to back. And also
378
00:21:19.319 --> 00:21:22.400
they did explicitly mention six flags like in their thing.
379
00:21:22.519 --> 00:21:24.720
They kind of they kind of were like at least
380
00:21:24.720 --> 00:21:27.119
when it's six flags, and you're like, I mean, but
381
00:21:27.960 --> 00:21:32.000
is that true? Because like objectively speaking, looking at the numbers.
382
00:21:32.359 --> 00:21:34.599
They are in a better position, right, They have higher
383
00:21:34.599 --> 00:21:36.599
per cap revenue, they have higher margins, they have a
384
00:21:36.599 --> 00:21:40.680
lot less debt, and there's no like goodwill impairment leaning
385
00:21:40.680 --> 00:21:42.559
them down that kind of stuff. But if you kind
386
00:21:42.559 --> 00:21:45.400
of look at the two visions here, they didn't at
387
00:21:45.480 --> 00:21:48.559
least to me. It's like, the biggest thing I took
388
00:21:48.559 --> 00:21:51.119
from that call was them I don't want to say complaining,
389
00:21:51.160 --> 00:21:53.680
but sort of being like, our stuff is worth more
390
00:21:53.720 --> 00:21:56.039
than the public says it is. And you're like, but
391
00:21:56.440 --> 00:21:58.720
that's so totally different from the Six Flags when we
392
00:21:58.799 --> 00:22:01.119
talked about where He's like, we're talking to all these people,
393
00:22:01.160 --> 00:22:03.319
here's all these changes we're going to make. The like
394
00:22:03.519 --> 00:22:09.880
we basically united. Still mentioned to blame the weather, like
395
00:22:09.960 --> 00:22:12.279
they still brought weather into it. They still brought in
396
00:22:12.359 --> 00:22:15.480
about the headwinds or national tourism. They've run in all
397
00:22:15.480 --> 00:22:18.559
these things. And then when you look at their announcements,
398
00:22:18.559 --> 00:22:22.039
I mean, yes, they did announce stuff that they're going
399
00:22:22.079 --> 00:22:25.960
to do. They have things they were opening, they're coming in,
400
00:22:26.000 --> 00:22:30.000
the reimagined Shark encounter, the Barracuda strike, you know, SeaQuest,
401
00:22:30.119 --> 00:22:33.480
Lenchers of the Deep, the Lion in Hyena Ridge, and
402
00:22:34.720 --> 00:22:40.599
they're their forbidden turn ride. But I don't know.
403
00:22:41.079 --> 00:22:43.200
But just before we dive into that too much deeper,
404
00:22:43.359 --> 00:22:45.319
if you know these parks, by the way, these many
405
00:22:45.319 --> 00:22:47.079
of these are refreshes.
406
00:22:46.839 --> 00:22:47.279
That's right.
407
00:22:47.680 --> 00:22:50.680
Keep that in mind. Many of these are putting lipstick
408
00:22:50.720 --> 00:22:51.079
on the pig.
409
00:22:51.839 --> 00:22:54.960
That So it's like, to me, this sort of lacked
410
00:22:54.960 --> 00:22:58.599
a little bit of that. I hate to say it,
411
00:22:58.640 --> 00:23:00.400
but it's kind of like six Flags seem to be
412
00:23:00.480 --> 00:23:03.960
developing more concrete of a plan. And I know a
413
00:23:03.960 --> 00:23:06.000
lot of our commentors last week said this, they really
414
00:23:06.000 --> 00:23:08.680
were just doing things that the Cedar Fair parks were
415
00:23:08.720 --> 00:23:11.880
doing and they're just taking them Like sure, you know,
416
00:23:12.240 --> 00:23:14.240
I'll give you that part, but I mean this was like,
417
00:23:15.079 --> 00:23:17.000
you know, so much of it was like, well, it's
418
00:23:17.039 --> 00:23:19.319
not our fault because of the weather and the international headwinds,
419
00:23:19.319 --> 00:23:21.519
and also ourself is actually really worth a lot more
420
00:23:21.559 --> 00:23:23.279
than it is, and we're going to we're going to
421
00:23:23.319 --> 00:23:24.960
have a plan or reduce costs. Like what plan? What
422
00:23:25.000 --> 00:23:27.680
are you doing? No answers, And there's no to me. Also,
423
00:23:27.720 --> 00:23:29.799
the biggest thing here, you know, we've talked about six
424
00:23:29.799 --> 00:23:32.440
Flags being spread all over the US and having in
425
00:23:32.480 --> 00:23:35.680
so many markets that there's not competition, but a lot
426
00:23:35.680 --> 00:23:38.079
of the United Parks are in places where they do
427
00:23:38.200 --> 00:23:42.440
face significant competition, and it seems like there's still sort
428
00:23:42.440 --> 00:23:47.039
of not painting a vision of how they are going
429
00:23:47.079 --> 00:23:51.559
to differentiate these products and increase revenue, and you know,
430
00:23:51.640 --> 00:23:54.920
Discovery Cove maybe could have been one of those differentiators.
431
00:23:55.200 --> 00:23:57.359
But there was a segment on the Discovery Cove call
432
00:23:57.400 --> 00:24:01.160
where you know, last year or the last year it's
433
00:24:01.160 --> 00:24:04.240
called they talked about how the Discovery Cove bookings were
434
00:24:04.319 --> 00:24:07.200
up over twenty percent, but on this call they discuss
435
00:24:07.279 --> 00:24:10.799
how it was in mid mid tens, like mid tweens,
436
00:24:11.079 --> 00:24:13.960
and one of the analysts asked about that, and they
437
00:24:14.039 --> 00:24:17.039
kind of didn't really answer. They're just like that's a
438
00:24:17.039 --> 00:24:19.240
good number, like you know whatever, fifteen percent is a
439
00:24:19.240 --> 00:24:21.599
good number. And the analyst is like, well it was
440
00:24:21.720 --> 00:24:24.200
higher before, so like what happened. They're like, well, it's
441
00:24:24.200 --> 00:24:27.160
a good number, like okay.
442
00:24:27.279 --> 00:24:28.759
But at the same I mean, at the same time,
443
00:24:28.839 --> 00:24:30.599
if you were up twenty percent last year and you're
444
00:24:30.680 --> 00:24:35.480
up thirteen percent this year, you're still up. Well.
445
00:24:35.519 --> 00:24:38.519
I think more it was like that it fell between
446
00:24:38.519 --> 00:24:41.599
those time periods because it's the same guidance, so it's
447
00:24:41.640 --> 00:24:43.759
kind of like there's a concern that could be dropping
448
00:24:43.759 --> 00:24:45.720
a little bit as well. And they were trying to
449
00:24:45.880 --> 00:24:47.799
the analysts were trying to push to see if their
450
00:24:48.039 --> 00:24:50.720
customer demographics had changed it all, as in like, you know,
451
00:24:50.839 --> 00:24:52.720
are you bringing you know whatever, and they kind of
452
00:24:53.000 --> 00:24:57.079
said no changes. So anyway, I think my overall point
453
00:24:57.119 --> 00:24:59.200
is totally it seemed very different. It seemed like you
454
00:24:59.240 --> 00:25:02.319
had one that was like new CEO listening to people
455
00:25:02.400 --> 00:25:04.720
trying to get buy in, you know, trying to you know,
456
00:25:04.759 --> 00:25:08.039
look at costs, have specific examples right the ship, and
457
00:25:08.039 --> 00:25:10.799
then you have this one where it's like, no examples,
458
00:25:11.000 --> 00:25:12.640
we plan to cut stuff. We're not gonna tell you why.
459
00:25:12.680 --> 00:25:15.920
It was more like a presentation too, and you just
460
00:25:15.920 --> 00:25:18.039
don't know what we're worth, and you just don't know
461
00:25:18.079 --> 00:25:20.960
what we're worth. It was like a private equity pitch, right,
462
00:25:21.000 --> 00:25:23.759
which is like, our assets are actually worth a lot
463
00:25:23.799 --> 00:25:25.960
more and if we could you know, sell or utilize
464
00:25:26.039 --> 00:25:28.400
or whatever, then they're going to be great. And it
465
00:25:28.519 --> 00:25:30.559
makes sense. That's why I'm saying if you think about
466
00:25:30.559 --> 00:25:33.480
this in the context of most of the shareholders are
467
00:25:33.559 --> 00:25:37.640
private equity, then it might explain why they don't. They're
468
00:25:37.680 --> 00:25:41.960
not really caring about necessarily talking about park operations. Maybe
469
00:25:41.960 --> 00:25:43.920
they will change them, but maybe they're just not going
470
00:25:44.000 --> 00:25:45.240
to talk about them on the Oregons call.
471
00:25:45.960 --> 00:25:48.119
Well, and that's very possible. I you know, I want
472
00:25:48.119 --> 00:25:51.000
to I just want to clarify. I know it sounds
473
00:25:51.039 --> 00:25:53.519
like I'm going to speak just for myself now. I
474
00:25:53.519 --> 00:25:59.640
know it sounds like I am attacking United Parks and Resorts.
475
00:26:00.240 --> 00:26:00.519
I'm not.
476
00:26:01.319 --> 00:26:05.480
I want more than anything for this company to succeed. Well,
477
00:26:05.519 --> 00:26:07.480
you can't spend you can't spend twenty one years working
478
00:26:07.519 --> 00:26:10.559
for an organization and then applaud it when it goes under.
479
00:26:10.720 --> 00:26:11.400
I can't do that.
480
00:26:12.680 --> 00:26:15.720
What I think they're really missing, in my opinion is
481
00:26:16.319 --> 00:26:20.599
they still some of their greatest assets even though people
482
00:26:20.599 --> 00:26:22.640
have left, because I mean, let's face it, John Riley
483
00:26:23.279 --> 00:26:28.960
with six Flags is former SeaWorld, So they've lost a
484
00:26:29.000 --> 00:26:31.920
lot of their great assets. But it's the people because
485
00:26:31.920 --> 00:26:36.039
they and they still have some. They've got a recognizable brand.
486
00:26:36.799 --> 00:26:39.920
When you put the right money and the right support
487
00:26:39.960 --> 00:26:43.960
behind it, you get SeaWorld AWW, which is an amazing park.
488
00:26:45.559 --> 00:26:49.920
And what I think, I think what's happening, what it
489
00:26:49.920 --> 00:26:52.880
appears to me is happening. And again I'm not involved anymore.
490
00:26:52.920 --> 00:26:55.279
I don't know, but they're getting too mired down in
491
00:26:55.319 --> 00:26:57.480
what the accountants are saying and not what the guests
492
00:26:57.480 --> 00:26:59.960
are saying. They're looking at. They're looking at the number
493
00:27:00.119 --> 00:27:05.119
is not the product, and SeaWorld has the ability to
494
00:27:05.240 --> 00:27:10.039
develop and create amazing product and with their you know,
495
00:27:10.079 --> 00:27:12.000
there's no theme park, and I think this is fair
496
00:27:12.039 --> 00:27:14.559
to say there's no theme park really in the world
497
00:27:14.960 --> 00:27:18.359
when it comes to animal care and not just marine
498
00:27:18.359 --> 00:27:20.519
mammal care, but animal care in general. I don't think
499
00:27:20.519 --> 00:27:23.000
there's a park in the world that has as much
500
00:27:24.960 --> 00:27:29.880
experience under their belt. Do they do everything right?
501
00:27:29.920 --> 00:27:30.400
I don't know.
502
00:27:30.759 --> 00:27:33.759
That's not my area of expertise, but they've got a
503
00:27:33.799 --> 00:27:37.200
lot of experience in that area. They've done great coasters
504
00:27:37.279 --> 00:27:40.559
in the past, they've done great theming, great lands, great
505
00:27:40.640 --> 00:27:45.200
seasonal experiences. So I think they're true assets. Is the
506
00:27:45.200 --> 00:27:48.039
brain trust that is actually still part of the organization
507
00:27:48.559 --> 00:27:51.359
and the connection to those people who may not still
508
00:27:51.359 --> 00:27:54.319
be part of the organization but have an understanding of
509
00:27:54.319 --> 00:27:56.759
how the company works, who could come back and help them.
510
00:27:56.839 --> 00:27:58.759
I mean, I realize it sounds like a commercial for me,
511
00:27:58.839 --> 00:28:00.880
it's not what I'm doing. But there are people who51200:28:00.960 --> 00:28:04.680
are who are out there who have worked for this company,51300:28:05.000 --> 00:28:07.880
who would in a heartbeat go back and help them51400:28:07.920 --> 00:28:10.000
out as an outside contract or they bring back some51500:28:10.039 --> 00:28:14.880
of the brain trust they had before. So in short,51600:28:15.920 --> 00:28:17.400
if they're going to look at their assets, they need51700:28:17.440 --> 00:28:19.119
to look at the human assets before they start looking51800:28:19.160 --> 00:28:21.160
to the land assets, because that's what's going to end51900:28:21.279 --> 00:28:23.039
up tipping them over.52000:28:22.880 --> 00:28:25.880
To profit in my opinion, Well, it didn't seem like52100:28:25.880 --> 00:28:30.119
they mentioned any of that on here. But then again52200:28:30.160 --> 00:28:34.680
to the point though, I think also it's like I52300:28:34.680 --> 00:28:36.039
think sometimes you got to think about who are these52400:28:36.039 --> 00:28:38.440
earnings calls for? And I think maybe maybe this one52500:28:38.519 --> 00:28:41.920
was for just the private equity people, and maybe that's52600:28:41.960 --> 00:28:44.160
going to be a separate conversation about how do we52700:28:44.319 --> 00:28:47.680
activate our personnel assets and that kind of stuff, and52800:28:47.720 --> 00:28:51.680
maybe that's more of a internal dialogue or you know,52900:28:52.079 --> 00:28:53.400
to the parks individually.53000:28:53.960 --> 00:28:56.759
But shouldn't it be an external dialogue. Shouldn't it be53100:28:56.920 --> 00:29:00.000
we've Shouldn't it be something that we're saying we've value53200:29:00.160 --> 00:29:03.720
you financially value, not just let's give them ice cream53300:29:03.720 --> 00:29:08.000
on Thursdays. We financially value the people that we have,53400:29:08.359 --> 00:29:11.240
the experience that we have. Shouldn't that be part of53500:29:11.240 --> 00:29:11.960
the earnings call?53600:29:12.480 --> 00:29:16.160
That is a tough uh. I don't know the answer53700:29:16.200 --> 00:29:18.960
to that. I think, you know, in one respect, you're like,53800:29:19.920 --> 00:29:22.119
you got to do kind of what the owners want, right,53900:29:22.119 --> 00:29:26.920
and the owners want the information in this way, So54000:29:26.960 --> 00:29:28.759
maybe that that is one argument. It's not like they54100:29:28.799 --> 00:29:30.599
didn't mention that kind of that stuff at all. It54200:29:30.720 --> 00:29:32.759
just didn't seem like that was the focus, right. They54300:29:32.799 --> 00:29:34.599
were like, we're bringing these new things and doing this54400:29:34.640 --> 00:29:36.400
and do blah blah blah. You know, but all it's like,54500:29:36.440 --> 00:29:38.480
I think all the stuff they positive things they said54600:29:38.519 --> 00:29:41.519
were more like you said, lipstick on a pick, right.54700:29:41.519 --> 00:29:44.559
It was. It was very like marketing speaky type of thing.54800:29:44.599 --> 00:29:47.119
The only details they got into were about these assets.54900:29:47.119 --> 00:29:51.119
But but anyway, we're going to be out of time,55000:29:51.160 --> 00:29:53.640
so we're not going to get to talk about the55100:29:53.799 --> 00:29:58.000
paramount winning the bidding war, but we'll probably talk about55200:29:58.000 --> 00:30:02.799
it in our bonus show. The only Yeah, we talked55300:30:02.839 --> 00:30:05.759
about it before about how the about We thought that55400:30:05.799 --> 00:30:07.400
Netflix would have been the better one, just because if55500:30:07.400 --> 00:30:11.039
it's tied into themed entertainment. But now we're just gonna55600:30:11.119 --> 00:30:14.880
end it here. I think that it's not going to55700:30:14.920 --> 00:30:17.119
go I think I have my suspicion that I think55800:30:17.160 --> 00:30:19.799
Netflix orchestrate this entire thing, because to me, they're the55900:30:19.839 --> 00:30:22.160
clear winner because what they got out of it was56000:30:22.599 --> 00:30:26.960
making Paramount pay a lot more money, about ten billion56100:30:27.079 --> 00:30:29.240
plus extra than what I had planned on it to56200:30:29.240 --> 00:30:31.759
pay for this, and Netflix just gets two point eight56300:30:31.759 --> 00:30:34.519
billion in cash and they get to tie up the56400:30:34.519 --> 00:30:37.559
playing field while everything goes through regulatory approvals and mergers56500:30:37.559 --> 00:30:39.279
and all that kind of stuff, so they can use56600:30:39.319 --> 00:30:41.799
that time to build new Netflix houses. Time and money56700:30:41.799 --> 00:30:44.400
that they can they can use to build new Netflix houses.56800:30:44.400 --> 00:30:48.039
So I feel like and then later when Paramount crashes56900:30:48.039 --> 00:30:50.079
and burns and implodes because they're going to have to57000:30:50.119 --> 00:30:52.960
fire literally everybody to delever because of the cost of57100:30:53.000 --> 00:30:57.119
bringing in, they can buy it in a fire sale.57200:30:57.160 --> 00:30:59.240
So I don't know. Netflix is a genius. That's how57300:30:59.240 --> 00:31:02.200
I see it. But we'll continue the discussion in unhinged.57400:31:02.480 --> 00:31:04.759
Sounds like a plan. Guys, Once again, thank you so57500:31:04.880 --> 00:31:07.359
much for putting us where we are, for giving us57600:31:07.480 --> 00:31:09.839
the subscribers that we need, and for continuing to listen57700:31:09.920 --> 00:31:13.640
and comment We really appreciate you and we love this industry,57800:31:13.640 --> 00:31:15.720
so keep contributing to it, just like we are on57900:31:15.759 --> 00:31:17.519
behalf of Philip and myself. This is Green Tag Theme58000:31:17.559 --> 00:31:20.240
Park in thirty and we will see you next week
