LOS ANGELES — SeaWorld Entertainment slid as much as 13 percent after third-quarter results fell more than analysts estimated, hurt by shrinking attendance at its parks during the peak season.
SeaWorld, criticized by animal-rights groups over its use of killer whales in shows, slumped Wednesday to an intraday record low of $16.16. The stock plunged 33 percent on Aug. 13 after the company posted lower sales and acknowledged the growing impact of the protests.
The theme-park operator attracted 8.4 million visitors in the quarter, a half million less than a year earlier. The decline for the period, typically the biggest of the year for SeaWorld, underscored the impact of “Blackfish,” a critical documentary about its performing orcas. Three airlines have cut ties to the company in recent months.
“The decline resulted from a combination of factors, including negative media attention in California, along with the challenging competitive environment, particularly in Florida,” Chief Financial Officer James Heaney said on a conference call today.
Earnings excluding some items shrank to $1.01 a share, Orlando, Florida-based SeaWorld said Wednesday in a statement. The per-share results missed the $1.13 average of analyst estimates compiled by Bloomberg. Revenue fell to $495.8 million, missing projections of $496.4 million.
Third-quarter net income declined 28 percent to $87.2 million from $120.7 million a year earlier, SeaWorld said.
“Our current estimates for SeaWorld are under review,” Robert Fishman, an analyst at MoffettNathanson in New York, said in a research note Wednesday. “The stock is a show me story whether 2015 top line results can rebound off this year’s depressed levels.” He rates the stock a buy.
SeaWorld, which had been owned by the private-equity firm Blackstone Group LP, went public in April 2013, selling shares at $27 each. Blackstone continues to own 22 percent of the company, according to data compiled by Bloomberg.
The company, which operates 11 theme parks, said in August it would build new, larger habitats for the animals, with the first set to open in San Diego in 2018.
That plan hasn’t changed the view of animal-rights groups opposed to captive breeding of the whales or their use in shows.
“Unless and until SeaWorld ends its orca breeding program and ceases its exploitation of orcas for entertainment purposes, AWI believes the whales at SeaWorld will continue to suffer,” Naomi Rose, a marine mammal scientist with the Washington-based group Animal Welfare Institute, said in an August e-mail.
The company hired outside advisers to help develop a $50 million cost-reduction plan, SeaWorld Chief Executive Officer Jim Atchison said on the call. The reductions, which will begin this quarter, are focused on centralizing administrative and support functions and will not affect guests or employee safety, he said.
SeaWorld will divert some of the savings, about $10 million next year, into increased marketing for its namesake parks that have seen weaker attendance. The company also increasing capital spending by as much as $30 million, some of that focused on the larger habitats for the killer whales.
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