SeaWorld Entertainment Inc., was wholly owned by the Blackstone Group L.P., before SeaWorld went public. SeaWorld owns eleven theme parks in the United States and attracts about 24 million visitors (market watch). As noted above they are in the theme park industry just like Disney and Six Flags with a proven business model and plenty of room for growth. It offers strong consumer value proposition and caters to a broad range of guest from all over the world.
They have many competitive strengths that will keep them strong throughout the IPO process and years to come. Their iconic brand that consumers know and love(S-1). Everyone knows and loves Shamu. He is known worldwide and attracts visitors just to see him and other killer whales like him. Dolphins are everyone’s favorite animal because they are smart and lovable and so cute and intelligent. Their brand portfolio is highly stable, reducing their exposure to changing consumer taste(S-1). Not only do they have SeaWorld but Busch Gardens and their other theme parks as well. Their website is a hit and so is their television program Sea Rescue to where they were going to keep airing it more seasons (S-1). Their website is beautiful and easy to maneuver through and has wonderful pictures of their animals on there. They have world class, differentiated theme parks. Out of the eleven they own five are in the top 20 in attendance (S-1). This is not just the United States but worldwide. They have a well-diversified business portfolio meaning they have good investments and don’t invest in one thing. At that time of the prospectus they had attractive, stable profit margins, and strong cash flow generation (S-1). They were producing net income from 2010 and 2011 even up until September 2012 when they filed the prospectus. Before with Anheuser Busch Inbev it was having a loss. They are open all year round (S-1). By them being open year around they do not have the fluctuation of cash flow that happens with other theme parks that closes throughout the winter.
They take pride in their zoological collection or animal collection. It includes 67,000 animals with it broke down to about 7,000 marine and terrestrial animals and approximately 60,000 fish (S-1). That is a lot of animals to care for. They carry 28 Killer whales, 151 dolphins, and 115 sea lions most were born under human care (S-1). So with all these animals of course most of their staff are specialist when it comes to dealing with the animal’s livelihood.
One Great strength about SeaWorld is in their senior management they have some of the most experienced theme park executives in the world, with an average time of 28 years in the industry (S-1). It’s amazing that they have no need to keep replacing CEO’s or CFO’s. The CEO at this time started at the very bottom as a parking attendant and worked his way to the top and knows the whole park and what makes a theme park tick. By having good people like that less worry about trouble from management because they are a very disciplined in what they do. It makes it a more stable company.
Risk related to SeaWorld is related to the theme park industry as a whole mostly and some are related just to going public some even out of their control. One would be factors that impact consumer spending and attendance such as a recession or depression or some type of economic crisis financially either in America or abroad in other countries. One great big risk a huge risk that they take in taking care of animals is damage to their brand or reputation could ruin the company as a whole (S-1). What I am talking about here is they probable deal with animal activist all the time and that is a challenge in itself. If they get charged with animal cruelty or accidently hire someone who does animal cruelty then they could damage their reputation for a long time. Their intellectual property rights are valuable, and their inability to protect them could...
References: Bloomberg, http://www.bloomberg.com/news/2013-04-19/seaworld-raises-702-million-in-ipo-pricing-at-top-of-range. 8/10/2013
CNN Money, “March of the Penguins”, http://money.cnn.com/2013/04/19/investing/seaworld-ipo/index.html. 7/31/2013
Market Watch, “SeaWorld Parks Files for IPO”, http://www.marketwatch.com. 7/31/2013
Sec Form S-1 SeaWorld Prospectus, http://www.sec.gov/Archives/edgar/data/1564902/000119312512515221/d448022ds1.htm.
The Week, “Is SeaWorld’s proposed IPO a good deal for shareholders?” http://theweek.com/article/index/242470/is-seaworlds-proposed-ipo-a-good-deal-for-shareholders 7/31/2013
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