SeaWorld is tumbling after slicing its dividend

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SeaWorld shares are sliding after the company cut its dividend.

The beleaguered theme park company said in a press release on Monday that it is lowering its dividend payout to $0.10 per share from $0.21 per share previously. In addition, the board of directors announced that it will no longer issue a dividend after the payment this quarter.

Instead of issuing a dividend, the firm announced it would be "opportunistically repurchasing the company's shares in the open market." The release said that the firm had $190 million to deploy on buybacks stemming from a share repurchase plan approved by the board in 2014.

"We believe our 5-point strategy to stabilize the business to drive sustainable growth is taking hold, and we are optimistic about SeaWorld's long-term future," said SeaWorld CEO Joel Manby in a release on the move.

RELATED: Hidden costs at amusement parks:

Hidden costs of amusement parks
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Hidden costs of amusement parks

Parking Fees 
Upon arriving at theme parks, you are immediately hit with parking fees. At Universal Orlando, for example, expect to pay $20 for a parking space

Photo credit: Getty

Access to Water Parks and Additional Attractions 
Most amusement parks have separate water parks that open up after Memorial Day, however, these attractions are not included in general admission tickets. 

Photo credit: Getty

Carnival Games 
Usually, in the center of an amusement park, you can find a carnival-like setup featuring games, activities and food. As exciting as the games are, forewarning: This section is often its own entity, and to participate, you may have to pay separately. 

Photo credit: Getty

Gift Shops 
This cost may not be as hidden as the others, but it can still put a major dent in your wallet. 

Photo credit: Getty

Caricature Artists and Side Activities 
Like water parks and carnivals inside of amusement parks, caricature artists and other side activities are not included when you purchase a general admission ticket. 

Photo credit: Getty

Food and Snacks 
If you decide not to purchase a ticket which includes a meal throughout your amusement park visit, be prepared to fork over money for snacks. 

Photo credit: Getty


"After careful and thorough deliberation, the Board has determined that, consistent with the financial discipline pillar of the company's strategy, the best way to support the long-term development of the business and deliver value to shareholders is to suspend future dividends at this time."

This marks yet another shift for the troubled entertainment company that has been plagued by backlash stemming from the 2013 documentary Blackfish that detailed the firm's treatment of its signature orcas. This has since lead to tumbling attendance, declining profits, and eventually the announcement that SeaWorld will no longer breed the orcas.

SeaWorld's stock fell by 6.15%, to $11.91 a share, in premarket trading on Tuesday as of 8:07 a.m. ET.


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SEE ALSO: SeaWorld has a lot of problems — even without the whales

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