SeaWorld Entertainment Inc (NYSE:SEAS) has been facing the heat from all the quarters for the way it treats its Orcas, especially after the 2013 documentary ‘Blackfish’. So, it shouldn’t be surprising that the company’s sales would have an impact, but investors were in for a shock when the company said in its second quarter earnings report that it expects adjusted EBITDA to fall 14-16% for the year, from a previous forecast of $450-$465 million. The company’s stock opened gap down on Wednesday when the markets opened for trade and ended the day at an all time low of $18.90, down 32.86% from previous day’s close.
Jim Cramer discussed the strong decline in SeaWorld Entertainment Inc (NYSE:SEAS)’s stock and the company’s latest quarterly performance on CNBC recently.
“[...] This is astounding, the decline. Now, a lot of the theme parks have been saying, like Cedar Fair’s numbers haven’t been that good of late, but this is just an aberration. I have never seen, just a complete collapse in EBITDA and they have got to do something. I don’t know what they are going to do,” Cramer said.
The documentary ‘Blackfish’, ever since its release in 2013 has impacted how people perceive SeaWorld Entertainment Inc (NYSE:SEAS) as it accuses the company of mistreating the Orcas that they use in their shows. This and the ongoing campaign by PETA, cautioning individuals from visiting SeaWorld Entertainment Inc (NYSE:SEAS), are being attributed for the declining attendance at the company’s parks. SeaWorld Entertainment Inc (NYSE:SEAS) in its earnings press release has said that it’s taking a lot of initiatives to cut costs, with the goal of generating savings, which it plans to reinvest into additional new attractions at its destination parks and return capital to shareholders.
“This thing is just in trouble and I don’t know how to put it, other than the fact that the documentary had to have played a big role,” Cramer added.