SeaWorld to Suspend Quarterly Dividend

Embattled SeaWorld Entertainment Inc. said Monday it will suspend its quarterly dividend after paying out a final, lowered installment to shareholders on Oct. 7.

The theme-park operator, which has battled animal-rights activists over the treatment of killer whales, also known as orcas, and has said it will eventually phase the signature animals out of its parks, said the money saved on dividend payments will be instead used to repurchase shares.

SeaWorld stock fell 9.4% after hours to $11.50. Over the past 12 months, shares of the company have fallen 28%.

As of Monday, the company had about $190 million available for future share repurchases under its $250 million program authorized in 2014.

The dividend, slashed to 10 cents from its previous 21-cent level, will be available to shareholders of record on Sept. 29.

Earlier this year, SeaWorld said it would stop breeding killer whales and cease its theatrical shows featuring them, as heavy public scrutiny in recent years hurt attendance. Still, the company owns many of the whales, which usually live around 50 years. SeaWorld has navigated turbulent waters, which included the release of "Blackfish," a 2013 documentary that claims killer whales suffer in captivity. Attendance at SeaWorld's theme parks slid 7.9% from 2012 to 2015.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

September 19, 2016 17:45 ET (21:45 GMT)

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