Does SeaWorld Have a Cash Flow Problem?

Is there a cash flow problem at SeaWorld? It may not seem like one of Orlando’s big theme parks and main “economic drivers” would be having financial difficulties, but for contractors doing business with SeaWorld Orlando it appears you won’t be paid until you file a lien and take action against them.

The theme park has definitely seen its share of struggles recently, including backlash from CNN Films’ Blackfish (even the Bare Naked Ladies backed out of performing at SeaWorld Orlando after seeing it) and how their Antarctica expansion does not appear to be drawing the increased guest spending as intended. And don’t forget, the Shamu Show featuring the killer whales is on hiatus due to maintenance work for the next few months. So the bigger question then looms: does SeaWorld have a cash flow problem?!

It seems SeaWorld is in a constant cycle of paying their contractors late. Searching public records going back 18 months turned up 17 liens filed against SeaWorld in Orange County in that time. In fact, a new lien was just filed last month, Nov. 14, 2013 for $170.435.95, and is yet to be satisfied.

If all these numbers are correct, the total outstanding amount is currently $298,297.95. The liens and satisfactions listed in the spreadsheet are in the attached Liens1 and Liens2 PDFs, starting with the most recent document.

Contractors should not have to file a lien against a major publicly traded company like SeaWorld. Contractors do not file liens unless they have to. It is an unnecessary and inconvenient process in good business relationships — and for smaller contractors, this repeated behavior of SeaWorld can have wide-ranging impacts including on payroll and the local economy.

Now, SeaWorld seems to have gotten a boost from summer tourism, making payments on several of the liens since the end of summer. The total number of satisfactions filed was 15. But why do so many contractors have to file a lien against SeaWorld to get paid?

Sure some big contractors can eat the late costs, and no doubt nearly everyone needs to work in this economy. But a lot of local and smaller contractors who are critical in the equation struggle to get paid by SeaWorld for the work they have done. For some contractors, that $7,000 could be the check they’re waiting for to satisfy payroll so their employees can pay their bills or provide for their families. It can become a huge problem when clients don’t pay on time when it comes to payroll and SeaWorld knows it.

You would think after their IPO, SeaWorld could pay their bills on time.