Six Flags Entertainment Corporation Reports 2024 Second Quarter Pre-Merger Results for Legacy Cedar Fair and Legacy Six Flags
Six Flags Entertainment (NYSE: FUN) reported Q2 2024 results for legacy Cedar Fair and legacy Six Flags, following their merger on July 1, 2024. Legacy Cedar Fair saw record net revenues of $572 million (+14% YoY) and attendance of 8.6 million guests (+17% YoY). Net income was $56 million (+4% YoY) with a 9.7% margin. Legacy Six Flags reported total revenue of $438 million (-1% YoY) and attendance of 6.9 million guests (-2% YoY). Net income attributable to legacy Six Flags was $34 million (+66% YoY) with a 7.8% margin.
The merger integration is progressing well, with early strategic initiatives implemented to improve guest experience and provide consistency across park operations. However, difficult weather conditions in July have impacted demand at several parks, with combined attendance down 3% over a five-week period post-Q2.
Six Flags Entertainment (NYSE: FUN) ha riportato i risultati del Q2 2024 per il patrimonio di Cedar Fair e Six Flags, dopo la loro fusione avvenuta il 1° luglio 2024. Cedar Fair ha registrato un fatturato netto record di 572 milioni di dollari (+14% rispetto all'anno precedente) e una partecipazione di 8,6 milioni di visitatori (+17% rispetto all'anno precedente). L'utile netto è stato di 56 milioni di dollari (+4% rispetto all'anno precedente) con un margine del 9,7%. Six Flags ha riportato un fatturato totale di 438 milioni di dollari (-1% rispetto all'anno precedente) e una partecipazione di 6,9 milioni di visitatori (-2% rispetto all'anno precedente). L'utile netto attribuibile a Six Flags è stato di 34 milioni di dollari (+66% rispetto all'anno precedente) con un margine del 7,8%.
L'integrazione della fusione sta procedendo bene, con iniziative strategiche iniziali implementate per migliorare l'esperienza degli ospiti e garantire coerenza nelle operazioni del parco. Tuttavia, le condizioni meteorologiche difficili di luglio hanno influenzato la domanda in diversi parchi, con una partecipazione combinata in calo del 3% in un periodo di cinque settimane dopo il Q2.
Six Flags Entertainment (NYSE: FUN) informó los resultados del Q2 2024 para el patrimonio de Cedar Fair y Six Flags, después de su fusión el 1 de julio de 2024. Cedar Fair vio ingresos netos récord de 572 millones de dólares (+14% interanual) y una asistencia de 8.6 millones de visitantes (+17% interanual). La ganancia neta fue de 56 millones de dólares (+4% interanual) con un margen del 9.7%. Six Flags reportó ingresos totales de 438 millones de dólares (-1% interanual) y una asistencia de 6.9 millones de visitantes (-2% interanual). La ganancia neta atribuible a Six Flags fue de 34 millones de dólares (+66% interanual) con un margen del 7.8%.
La integración de la fusión está avanzando bien, con iniciativas estratégicas tempranas implementadas para mejorar la experiencia del huésped y proporcionar consistencia en las operaciones del parque. Sin embargo, las difíciles condiciones climáticas en julio han afectado la demanda en varios parques, con una asistencia combinada en descenso del 3% durante un período de cinco semanas tras el Q2.
식스 플래그스 엔터테인먼트 (NYSE: FUN)는 2024년 2분기 Cedar Fair와 Six Flags의 결과를 보고했습니다. 이들은 2024년 7월 1일에 합병되었습니다. Cedar Fair는 기록적인 순수익 5억 7200만 달러(+14% 전년 대비)와 860만 명의 방문객(+17% 전년 대비)을 기록했습니다. 순이익은 5600만 달러(+4% 전년 대비)로 마진은 9.7%였습니다. Six Flags는 총수익 4억 3800만 달러(-1% 전년 대비)와 690만 명의 방문객(-2% 전년 대비)을 보고했습니다. Six Flags에 귀속된 순이익은 3400만 달러(+66% 전년 대비)로 마진은 7.8%였습니다.
합병 통합이 순조롭게 진행되고 있으며, 손님 경험을 개선하고 공원 운영의 일관성을 제공하기 위한 초기 전략적 이니셔티브가 시행되었습니다. 그러나 7월의 어려운 기상 조건은 여러 공원에서 수요에 영향을 주었으며, Q2 이후 5주 동안의 결합된 방문객 수가 3% 감소했습니다.
Six Flags Entertainment (NYSE: FUN) a rapporté les résultats du 2ème trimestre 2024 pour l'héritage de Cedar Fair et l'héritage de Six Flags, suite à leur fusion le 1er juillet 2024. Cedar Fair a enregistré un chiffre d'affaires net record de 572 millions de dollars (+14 % par rapport à l'année précédente) et une fréquentation de 8,6 millions de visiteurs (+17 % par rapport à l'année précédente). Le bénéfice net était de 56 millions de dollars (+4 % par rapport à l'année précédente) avec une marge de 9,7 %. Six Flags a déclaré un chiffre d'affaires total de 438 millions de dollars (-1 % par rapport à l'année précédente) et une fréquentation de 6,9 millions de visiteurs (-2 % par rapport à l'année précédente). Le bénéfice net attribuable à Six Flags était de 34 millions de dollars (+66 % par rapport à l'année précédente) avec une marge de 7,8 %.
L'intégration de la fusion progresse bien, avec des initiatives stratégiques précoces mises en œuvre pour améliorer l'expérience des invités et assurer la cohérence à travers les opérations des parcs. Cependant, les conditions météorologiques difficiles en juillet ont eu un impact sur la demande dans plusieurs parcs, la fréquentation combinée étant en baisse de 3 % sur une période de cinq semaines après le deuxième trimestre.
Six Flags Entertainment (NYSE: FUN) hat die Ergebnisse des 2. Quartals 2024 für das Vermögen von Cedar Fair und Six Flags veröffentlicht, nachdem sie am 1. Juli 2024 fusioniert wurden. Cedar Fair verzeichnete einen Rekordnettoumsatz von 572 Millionen Dollar (+14 % im Jahresvergleich) und eine Besucherzahl von 8,6 Millionen (+17 % im Jahresvergleich). Der Nettoertrag betrug 56 Millionen Dollar (+4 % im Jahresvergleich) bei einer Marge von 9,7 %. Six Flags meldete einen Gesamtumsatz von 438 Millionen Dollar (-1 % im Jahresvergleich) und eine Besucherzahl von 6,9 Millionen (-2 % im Jahresvergleich). Der Nettoertrag, der auf Six Flags entfällt, betrug 34 Millionen Dollar (+66 % im Jahresvergleich) bei einer Marge von 7,8 %.
Die Integration der Fusion verläuft gut, wobei frühe strategische Initiativen umgesetzt wurden, um die Gästeerfahrung zu verbessern und eine Konsistenz im Parkbetrieb zu gewährleisten. Schwierigkeiten mit den Wetterbedingungen im Juli haben jedoch die Nachfrage in mehreren Parks beeinträchtigt, wobei die kombinierte Besucherzahl in einem Zeitraum von fünf Wochen nach dem 2. Quartal um 3 % gesunken ist.
- Legacy Cedar Fair achieved record Q2 net revenues of $572 million, up 14% year-over-year
- Legacy Cedar Fair attendance increased by 17% to a record 8.6 million guests
- Legacy Cedar Fair Adjusted EBITDA increased by 36% to $205 million
- Legacy Six Flags net income increased by 66% to $34 million
- Strong season pass sales, with legacy Cedar Fair up 3% through Q2
- Merger expected to deliver synergies and growth opportunities
- Legacy Six Flags total revenue decreased by 1% to $438 million
- Legacy Six Flags attendance decreased by 2% to 6.9 million guests
- Legacy Six Flags Adjusted EBITDA decreased by 14% to $138 million
- Weather conditions negatively impacted demand trends in July
- Combined attendance down 3% over a five-week period post-Q2 due to weather issues
Insights
The merger of Cedar Fair and Six Flags creates a formidable player in the amusement park industry. Legacy Cedar Fair's Q2 performance was strong, with record attendance of 8.6 million (up 17%) and record revenues of
However, Legacy Six Flags faced challenges with a 2% decrease in attendance and a
The merger integration is progressing well, with early strategic initiatives already implemented. The combined entity now has unprecedented geographic scale in the regional amusement park space, which could lead to significant cost savings and revenue opportunities. However, weather conditions in July have negatively impacted demand, presenting a near-term challenge.
The merger creates a diversified portfolio with 27 amusement parks, 15 water parks and 9 resort properties across North America. This expanded footprint provides increased resilience to regional weather events and economic fluctuations.
Consumer behavior trends are mixed. Legacy Cedar Fair saw strong season pass sales, up
The combined entity's focus on improving guest experience and operational consistency could drive long-term value. However, the impact of recent weather events on July attendance (down
The merger has created a company with a substantial debt load. Legacy Cedar Fair reported Net debt of
However, the combined entity maintains strong liquidity, with Legacy Cedar Fair reporting
The merger is expected to generate significant synergies, which could improve cash flow and help manage the debt load. However, integration risks and potential unforeseen costs associated with the merger could pressure financials in the near term. Investors should closely monitor the company's progress in realizing synergies and managing its debt obligations.
- Merger integration proceeding well with early strategic initiatives already implemented to improve the guest experience and provide consistency across park operations
Legacy Cedar Fair Second Quarter Highlights(1)
- 53 net additional operating days compared to Q2-2023.
-
Net revenues totaled a record
$572 million 14% , or$71 million -
Including
$11 million $56 million 4% , or$2 million 9.7% . -
Legacy Cedar Fair Adjusted EBITDA(2) totaled
$205 million 36% , or$54 million 35.9% . -
Attendance totaled a record 8.6 million guests, an increase of
17% , or 1.2 million guests. -
In-park per capita spending(3) was
$59.54 3% . -
Out-of-park revenues(3) totaled a record
$73 million 17% , or$11 million
Legacy Six Flags Second Quarter Highlights(a)
- 58 net fewer operating days compared to Q2-2023.
-
Total revenue was
$438 million 1% , or$5 million -
Including
$1 million $34 million 66% , or$14 million 7.8% . -
Legacy Six Flags Adjusted EBITDA(b) totaled
$138 million 14% , or$23 million 36.9% . -
Attendance totaled 6.9 million guests, a decrease of
2% , or 155,000 guests. -
Total guest spending per capita(c) was
$61.22 1% . -
Admissions revenue per capita(c) was
$32.99 2% . -
In-park spending per capita(c) was
$28.23 5% .
Management Commentary
“I am extremely pleased with the second quarter performance of the legacy Cedar Fair portfolio, which produced record levels of attendance and net revenues, and generated a 570-basis-point lift in Legacy Cedar Fair Adjusted EBITDA Margin(2) in the quarter,” said Six Flags Entertainment Corporation President and CEO Richard A. Zimmerman. “This performance is a continuation of the strong momentum we built over the past three quarters and underscores the strong guest demand driven by the successful execution of our strategic plans and initiatives. While weather conditions have negatively impacted demand trends in July, we are confident that the combined portfolio is well positioned to deliver a strong full-year performance in 2024.”
Zimmerman continued, “Since completing the merger on July 1, we have quickly implemented initial integration plans to start to realize the meaningful synergy and growth opportunities now available to us. The merits and strategic rationale of the merger remain clear, and we are focused on pursuing its benefits and unlocking the full potential of our combined organization. We have a highly diversified footprint with geographic scale never before seen in the regional amusement parks space. Our balance sheet is strong with ample liquidity, and we are well positioned to deliver value to our shareholders and customers. In the near term, we are focused on advancing our strategic initiatives and instilling our core operating principles across our portfolio to tap into the tremendous potential we believe exists in the combination of these iconic portfolios of assets.”
Legacy Cedar Fair Results for Second Quarter 2024 to Second Quarter 2023
There were 789 operating days in the second quarter of 2024 compared with 736 operating days in the second quarter of 2023. The increase was primarily related to a fiscal calendar shift that resulted in 86 additional operating days, which was somewhat offset by fewer planned operating days during the quarter at some of the seasonal parks.
For the quarter ended June 30, 2024, net revenues for legacy Cedar Fair totaled
Operating costs and expenses in the second quarter of 2024 increased
Depreciation and amortization expense in the second quarter of 2024 totaled
After the items noted above, 2024 second quarter operating income for legacy Cedar Fair was
Interest expense for the quarter totaled
During the second quarter of 2024, legacy Cedar Fair recorded a provision for taxes of
After the items above, net income for legacy Cedar Fair was
For the 2024 second quarter, Legacy Cedar Fair Adjusted EBITDA(2), which management believes is a meaningful measure of legacy Cedar Fair’s park-level operating results, totaled
Legacy Cedar Fair Results for Second Quarter 2024 vs. Three Months Ended July 2, 2023
As previously noted, the results for the second quarter of 2024 included additional operating days due to a fiscal calendar shift. On a same-week basis, or comparing the three months ended June 30, 2024, with the three months ended July 2, 2023, net revenues for legacy Cedar Fair would have increased
Legacy Cedar Fair Balance Sheet and Liquidity Highlights
Deferred revenues on June 30, 2024, including non-current deferred revenue, totaled
As of June 30, 2024, legacy Cedar Fair had total liquidity of approximately
Legacy Six Flags Results for Second Quarter 2024 Compared to Second Quarter 2023
For the quarter ended June 30, 2024, total revenues for legacy Six Flags were
The decrease in second quarter attendance was primarily the result of fewer operating days during the period, as well as inclement weather in April and May, and the earlier timing of Easter in 2024 which shifted attendance into the first quarter this year. The increase in total guest spending per capita(c) was driven by a
Operating costs and expenses in the second quarter of 2024 totaled
Depreciation and amortization expense in the second quarter of 2024 totaled
After the items noted above, interest expense, loss on early debt extinguishment, income tax expense, and other charges, 2024 second quarter net income attributable to legacy Six Flags was
Legacy Six Flags Adjusted EBITDA(b) for the second quarter of 2024, which excludes merger-related transaction costs, was
Legacy Six Flags Balance Sheet and Liquidity Highlights
Deferred revenues on June 30, 2024, totaled
July Update
Since the end of the second quarter, difficult weather conditions, including the impacts of Hurricane Beryl and record heat and rain across much of
“Although demand over the last few weeks has been affected by exogenous macro factors, we remain pleased with the broader attendance trends, largely supported by the robust season pass sales programs and strong group bookings,” said Zimmerman. “Based on the solid attendance patterns earlier in the year, as well as the strength of our advance purchase channels, we continue to believe the underlying demand for the entertainment value of our parks remains strong, which positions us well for the balance of 2024 and beyond,” concluded Zimmerman.
Conference Call
As previously announced, Six Flags Entertainment Corporation will host a conference call with analysts starting at 10 a.m. ET today, Aug. 8, 2024, to further discuss its recent financial performance. Participants on the call will include Six Flags Entertainment Corporation President and CEO Richard Zimmerman and Chief Financial Officer Brian Witherow.
Investors and all other interested parties can access a live, listen-only audio webcast of the call on the Six Flags Entertainment Corporation Investors website at https://investors.sixflags.com under the tabs Investor Information / Events & Presentations. Those unable to listen to the live webcast can access a recorded version of the call on the Six Flags Entertainment Corporation Investors website at https:// investors.sixflags.com under Investor Information / Events and Presentations, shortly after the live call’s conclusion.
A digital recording of the conference call will be available for replay by phone starting at approximately 1 p.m. ET on Thursday, August 8, 2024, until 11:59 p.m. ET, Thursday, August 15, 2024. To access the phone replay, in
About Six Flags Entertainment Corporation
Six Flags Entertainment Corporation (NYSE: FUN) is North America’s largest regional amusement-resort operator with 27 amusement parks, 15 water parks and nine resort properties across 17 states in the
Qualified Notice
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0 percent) of Cedar Fair, L.P.’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a
Forward-Looking Statements
Some of the statements contained in this news release (including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section) that are not historical in nature are forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements as to our expectations, beliefs, goals and strategies regarding the future. Words such as “anticipate,” “believe,” “create,” “expect,” “future,” “guidance,” “intend,” “plan,” “potential,” “seek,” “synergies,” “target,” “will,” “would,” similar expressions, and variations or negatives of these words identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These forward-looking statements may involve current plans, estimates, expectations and ambitions that are subject to risks, uncertainties and assumptions that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct, that our growth and operational strategies will achieve the target results. Important risk factors that may cause such a difference and could adversely affect attendance at our parks, our future financial performance, and/or our growth strategies, and could cause actual results to differ materially from our expectations or otherwise to fluctuate or decrease, include, but are not limited to: general economic, political and market conditions; the impacts of pandemics or other public health crises, including the effects of government responses on people and economies; adverse weather conditions; competition for consumer leisure time and spending; unanticipated construction delays; changes in our capital investment plans and projects; anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of the Combined Company’s operations; failure to realize the anticipated benefits of the merger, including difficulty in integrating the businesses of legacy Six Flags and legacy Cedar Fair; failure to realize the expected amount and timing of cost savings and operating synergies related to the merger; legislative, regulatory and economic developments and changes in laws, regulations, and policies affecting the Combined Company; acts of terrorism or outbreak of war, hostilities, civil unrest, and other political or security disturbances; and other factors we discuss under the heading “Risk Factors” within Part II, Item 1A of our Quarterly Report on Form 10-Q, in legacy Cedar Fair’s Annual Report on Form 10-K, in legacy Six Flags’ Annual Report on Form 10-K and in the other filings we make from time to time with the SEC. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this document and are based on information currently and reasonably known to us. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the publication of this document.
Footnotes for Legacy Cedar Fair Results:
(1) |
The legacy Cedar Fair financial information was prepared using the accounting policies, classifications and key performance metrics for legacy Cedar Fair. Management is in the process of performing a comprehensive review of each entity’s accounting policies and classifications which will be aligned under the accounting policies of the accounting acquirer, legacy Cedar Fair, when presenting combined financial results in future periods. |
|
(2) |
Legacy Cedar Fair Adjusted EBITDA and Legacy Cedar Fair Adjusted EBITDA Margin are not measurements computed in accordance with generally accepted accounting principles (GAAP). For additional information regarding Legacy Cedar Fair Adjusted EBITDA and Legacy Cedar Fair Adjusted EBITDA Margin, including how legacy Cedar Fair defines and uses these measures, see the attached reconciliation table and related footnotes. |
|
(3) |
In-park per capita spending and out-of-park revenues are non-GAAP financial measures. See the attached reconciliation table and related footnote for the calculations of in-park per capita spending and out-of-park revenues for legacy Cedar Fair. These metrics are used by management as major factors in significant operational decisions as they are primary drivers of financial and operational performance, measuring demand, pricing, and consumer behavior. |
|
(4) |
Legacy Cedar Fair Net Debt is a non-GAAP financial measure. See the attached reconciliation table and related footnote for the calculation of Legacy Cedar Fair Net Debt. This is a meaningful measure used by legacy Cedar Fair and investors to monitor leverage, and management believes it is meaningful for this purpose. |
Footnotes for Legacy Six Flags Results:
(a) |
The legacy Six Flags financial information was prepared using the accounting policies, classifications and key performance metrics for legacy Six Flags. Management is in the process of performing a comprehensive review of each entity’s accounting policies and classifications which will be aligned under the accounting policies of the accounting acquirer, legacy Cedar Fair, when presenting combined financial results in future periods. | ||
(b) |
Legacy Six Flags Adjusted EBITDA and Legacy Six Flags Modified EBITDA Margin are not measurements computed in accordance with generally accepted accounting principles (GAAP). For additional information regarding Legacy Six Flags Adjusted EBITDA and Legacy Six Flags Modified EBITDA Margin, including how legacy Six Flags defined and used these measures, see the attached reconciliation table and related footnotes. | ||
(c) |
Legacy Six Flags used certain per capita metrics to measure the performance of its business on a per guest basis and believed these were meaningful metrics as they assist in comparing legacy Six Flags operating performance on a consistent basis, make it easier to compare legacy Six Flags results with those of other companies in the industry, and allows investors to review performance in the same manner as legacy Six Flags management. These per capita metrics differ from the similarly titled measures presented by legacy Cedar Fair, including in-park per capita spending. | ||
| - | Total guest spending per capita is the total revenue generated from guests, on a per guest basis, through admissions and in-park spending. Total guest spending per capita is calculated by dividing the sum of park admissions revenue and park food merchandise and other revenue by total attendance. |
||
| - | Admissions revenue per capita is the total revenue generated from guests, on a per guest basis, to enter the legacy Six Flags parks. Admissions revenue per capita is calculated by dividing park admission revenue by total attendance. |
||
| - | In-park spending per capita is the total revenue generated from guests, on a per guest basis, on items sold within legacy Six Flags parks, such as food and beverages, games and merchandise. In-park spending per capita is calculated by dividing park food, merchandise and other revenue by total attendance. |
||
(d) |
Self-insurance reserves are periodically reviewed for changes in facts and circumstances and adjustments are made as necessary. During the second quarter of 2023, legacy Six Flags revised the estimate of its ultimate loss indications for both identified claims and incurred but not reported (“IBNR”) claims in connection with its general liability and worker’s compensation self-insurance reserves. The increase in the revised estimate was based on greater than previously estimated reserve adjustments on certain identified claims, as well as an observed pattern of increasing litigation and settlement costs and changes to key actuarial assumptions utilized in determining estimated ultimate losses, including loss development factors. The change in estimate resulted in an increase to “selling, general and administrative expense” in legacy Six Flags’ condensed consolidated statements of operation of |
||
This news release and prior releases are available under the News tab at https://investors.sixflags.com
- more -
(financial tables follow)
LEGACY (FORMER) CEDAR FAIR, L.P. FINANCIAL RESULTS |
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LEGACY (FORMER) CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) |
|||||||||||||||
|
Three months ended |
|
Six months ended |
||||||||||||
|
June 30, 2024 |
|
June 25, 2023 |
|
June 30, 2024 |
|
June 25, 2023 |
||||||||
Net revenues: |
|
|
|
|
|
|
|
||||||||
Admissions |
$ |
267,115 |
|
|
$ |
242,549 |
|
|
$ |
312,556 |
|
|
$ |
282,078 |
|
Food, merchandise and games |
|
210,024 |
|
|
|
179,664 |
|
|
|
248,882 |
|
|
|
211,728 |
|
Accommodations, extra-charge products and other |
|
94,477 |
|
|
|
78,769 |
|
|
|
111,793 |
|
|
|
91,730 |
|
|
|
571,616 |
|
|
|
500,982 |
|
|
|
673,231 |
|
|
|
585,536 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of food, merchandise, and games revenues |
|
53,258 |
|
|
|
48,632 |
|
|
|
64,869 |
|
|
|
59,013 |
|
Operating expenses |
|
241,065 |
|
|
|
236,410 |
|
|
|
383,003 |
|
|
|
369,750 |
|
Selling, general and administrative |
|
92,958 |
|
|
|
67,048 |
|
|
|
154,382 |
|
|
|
113,513 |
|
Depreciation and amortization |
|
57,015 |
|
|
|
48,094 |
|
|
|
67,327 |
|
|
|
61,775 |
|
Loss on impairment / retirement of fixed assets, net |
|
4,121 |
|
|
|
7,125 |
|
|
|
6,735 |
|
|
|
10,761 |
|
|
|
448,417 |
|
|
|
407,309 |
|
|
|
676,316 |
|
|
|
614,812 |
|
Operating income (loss) |
|
123,199 |
|
|
|
93,673 |
|
|
|
(3,085 |
) |
|
|
(29,276 |
) |
Interest expense |
|
40,040 |
|
|
|
37,366 |
|
|
|
74,736 |
|
|
|
69,495 |
|
Loss on early debt extinguishment |
|
5,911 |
|
|
|
— |
|
|
|
5,911 |
|
|
|
— |
|
Loss (gain) on foreign currency |
|
1,805 |
|
|
|
(10,683 |
) |
|
|
7,045 |
|
|
|
(6,684 |
) |
Other income |
|
(320 |
) |
|
|
(237 |
) |
|
|
(657 |
) |
|
|
(678 |
) |
Income (loss) before taxes |
|
75,763 |
|
|
|
67,227 |
|
|
|
(90,120 |
) |
|
|
(91,409 |
) |
Provision (benefit) for taxes |
|
20,210 |
|
|
|
13,663 |
|
|
|
(12,206 |
) |
|
|
(10,427 |
) |
Net income (loss) |
|
55,553 |
|
|
|
53,564 |
|
|
|
(77,914 |
) |
|
|
(80,982 |
) |
Net income (loss) allocated to general partner |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Net income (loss) allocated to limited partners |
$ |
55,553 |
|
|
$ |
53,564 |
|
|
$ |
(77,913 |
) |
|
$ |
(80,981 |
) |
Net income (loss) margin(1) |
|
9.7 |
% |
|
|
10.7 |
% |
|
|
(11.6 |
)% |
|
|
(13.8 |
)% |
(1) |
Net income (loss) margin is calculated as net income (loss) divided by net revenues. |
LEGACY (FORMER) CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET DATA (In thousands) |
|||||||
|
|||||||
|
June 30, 2024 |
|
June 25, 2023 |
||||
Cash and cash equivalents |
$ |
52,858 |
|
|
$ |
49,179 |
|
Total assets |
$ |
2,347,830 |
|
|
$ |
2,316,418 |
|
Long-term debt, including current maturities: |
|||||||
Revolving credit loans |
$ |
88,000 |
|
|
$ |
157,000 |
|
Term debt |
|
982,819 |
|
|
|
— |
|
Notes |
|
1,287,971 |
|
|
|
2,270,586 |
|
|
$ |
2,358,790 |
|
|
$ |
2,427,586 |
|
Total partners' deficit |
$ |
(682,078 |
) |
|
$ |
(762,658 |
) |
LEGACY (FORMER) CEDAR FAIR, L.P. RECONCILIATION OF ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (In thousands) |
|||||||||||||||
|
|||||||||||||||
|
Three months ended |
|
Six months ended |
||||||||||||
|
June 30, 2024 |
|
June 25, 2023 |
|
June 30, 2024 |
|
June 25, 2023 |
||||||||
Net income (loss) |
$ |
55,553 |
|
|
$ |
53,564 |
|
|
$ |
(77,914 |
) |
|
$ |
(80,982 |
) |
Interest expense |
|
40,040 |
|
|
|
37,366 |
|
|
|
74,736 |
|
|
|
69,495 |
|
Interest income |
|
(215 |
) |
|
|
(178 |
) |
|
|
(575 |
) |
|
|
(692 |
) |
Provision (benefit) for taxes |
|
20,210 |
|
|
|
13,663 |
|
|
|
(12,206 |
) |
|
|
(10,427 |
) |
Depreciation and amortization |
|
57,015 |
|
|
|
48,094 |
|
|
|
67,327 |
|
|
|
61,775 |
|
EBITDA |
|
172,603 |
|
|
|
152,509 |
|
|
|
51,368 |
|
|
|
39,169 |
|
Loss on early debt extinguishment |
|
5,911 |
|
|
|
— |
|
|
|
5,911 |
|
|
|
— |
|
Non-cash foreign currency loss (gain) |
|
1,763 |
|
|
|
(10,837 |
) |
|
|
7,002 |
|
|
|
(7,134 |
) |
Non-cash equity compensation expense |
|
9,135 |
|
|
|
2,567 |
|
|
|
14,419 |
|
|
|
7,620 |
|
Loss on impairment / retirement of fixed assets, net |
|
4,121 |
|
|
|
7,125 |
|
|
|
6,735 |
|
|
|
10,761 |
|
Costs related to the Mergers (1) |
|
11,128 |
|
|
|
— |
|
|
|
21,275 |
|
|
|
— |
|
Other (2) |
|
803 |
|
|
|
15 |
|
|
|
1,574 |
|
|
|
(101 |
) |
Legacy Cedar Fair Adjusted EBITDA (3) |
$ |
205,464 |
|
|
$ |
151,379 |
|
|
|
108,284 |
|
|
|
50,315 |
|
Legacy Cedar Fair Adjusted EBITDA Margin (4) |
|
35.9 |
% |
|
|
30.2 |
% |
|
|
16.1 |
% |
|
|
8.6 |
% |
(1) |
|
Consists of third-party legal and consulting transaction costs, as well as integration costs related to the Mergers. Integration costs incurred included third-party consulting costs, travel costs and contract termination costs. These costs are added back to net income (loss) to calculate Legacy Cedar Fair Adjusted EBITDA as defined in legacy Cedar Fair's current and prior credit agreements. |
(2) |
|
Consists of certain costs as defined in legacy Cedar Fair's current and prior credit agreements. These costs are added back to net income (loss) to calculate Legacy Cedar Fair Adjusted EBITDA and have included certain legal expenses, severance and related benefits and contract termination costs. This balance also includes unrealized gains and losses on short-term investments. |
(3) |
|
Legacy Cedar Fair Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization, other non-cash items, and adjustments as defined in legacy Cedar Fair's current and prior credit agreements. Legacy Cedar Fair Adjusted EBITDA is a meaningful measure as it is widely used by analysts, investors and comparable companies in the industry to evaluate operating performance on a consistent basis, as well as more easily compare results with those of other companies in the industry. Further, management believes Legacy Cedar Fair Adjusted EBITDA is a meaningful measure of park-level operating profitability and uses it for measuring returns on capital investments, evaluating potential acquisitions, determining awards under incentive compensation plans, and calculating compliance with certain loan covenants. Legacy Cedar Fair Adjusted EBITDA is provided as a supplemental measure of legacy Cedar Fair's operating results and is not intended to be a substitute for operating income, net income or cash flows from operating activities as defined under generally accepted accounting principles. In addition, Legacy Cedar Fair Adjusted EBITDA may not be comparable to similarly titled measures of other companies, including Legacy Six Flags Adjusted EBITDA. |
(4) |
|
Legacy Cedar Fair Adjusted EBITDA Margin (Legacy Cedar Fair Adjusted EBITDA divided by net revenues) is not a measurement computed in accordance with GAAP and may not be comparable to similarly titled measures of other companies, including Legacy Six Flags Modified EBITDA Margin. Legacy Cedar Fair Adjusted EBITDA Margin is provided because the measure provides a meaningful metric of operating profitability.
|
LEGACY (FORMER) CEDAR FAIR, L.P. CALCULATION OF NET DEBT (In thousands) |
|||
|
|||
|
June 30, 2024 |
||
Long-term debt, including current maturities |
$ |
2,358,790 |
|
Plus: Debt issuance costs and original issue discount |
|
29,210 |
|
Less: Cash and cash equivalents |
|
(52,858 |
) |
Legacy Cedar Fair Net Debt (1) |
$ |
2,335,142 |
|
(1) |
|
Legacy Cedar Fair Net Debt is a non-GAAP financial measure used by investors to monitor leverage. The measure may not be comparable to similarly titled measures of other companies. |
LEGACY (FORMER) CEDAR FAIR, L.P. KEY OPERATIONAL MEASURES (In thousands, except per capita and operating day amounts) |
|||||||||||
|
|||||||||||
|
Three months ended |
|
Six months ended |
||||||||
|
June 30, 2024 |
|
June 25, 2023 |
|
June 30, 2024 |
|
June 25, 2023 |
||||
Attendance |
|
8,635 |
|
|
7,397 |
|
|
9,984 |
|
|
8,456 |
In-park per capita spending (1) |
$ |
59.54 |
|
$ |
61.46 |
|
$ |
59.67 |
|
$ |
61.84 |
Out-of-park revenues (1) |
$ |
73,228 |
|
$ |
62,483 |
|
$ |
96,493 |
|
$ |
81,708 |
Operating days |
|
789 |
|
|
736 |
|
|
906 |
|
|
897 |
(1) |
|
In-park per capita spending is calculated as revenues generated within legacy Cedar Fair's amusement parks and separately gated outdoor water parks along with related parking revenues (in-park revenues), divided by total attendance. Out-of-park revenues are defined as revenues from resort, out-of-park food and retail locations, online transaction fees charged to customers, sponsorships and all other out-of-park operations. In-park revenues, in-park per capita spending and out-of-park revenues are non-GAAP measures. These metrics are used by management as major factors in significant operational decisions as they are primary drivers of financial and operational performance, measuring demand, pricing, and consumer behavior. In-park per capita spending differs from the similarly titled measures presented by legacy Six Flags, including total guest spending per capita, admissions revenue per capita and in-park spending per capita. A reconciliation of in-park revenues and out-of-park revenues to net revenues for the periods presented is as follows: |
|
Three months ended |
|
Six months ended |
||||||||||||
(In thousands) |
June 30, 2024 |
|
June 25, 2023 |
|
June 30, 2024 |
|
June 25, 2023 |
||||||||
In-park revenues |
$ |
514,110 |
|
|
$ |
454,551 |
|
|
$ |
595,756 |
|
|
$ |
522,854 |
|
Out-of-park revenues |
|
73,228 |
|
|
|
62,483 |
|
|
|
96,493 |
|
|
|
81,708 |
|
Concessionaire remittance |
|
(15,722 |
) |
|
|
(16,052 |
) |
|
|
(19,018 |
) |
|
|
(19,026 |
) |
Net revenues |
$ |
571,616 |
|
|
$ |
500,982 |
|
|
$ |
673,231 |
|
|
$ |
585,536 |
|
On a same-week basis, concessionaire remittance totaled |
LEGACY (FORMER) SIX FLAGS ENTERTAINMENT CORPORATION FINANCIAL RESULTS |
|||||||||||||||
|
|||||||||||||||
LEGACY (FORMER) SIX FLAGS ENTERTAINMENT CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
||||||||
Park admissions |
$ |
228,230 |
|
|
$ |
238,963 |
|
|
$ |
299,031 |
|
|
$ |
315,266 |
|
Park food, merchandise and other |
|
195,280 |
|
|
|
190,792 |
|
|
|
249,677 |
|
|
|
243,578 |
|
Sponsorship, international agreements and accommodations |
|
14,983 |
|
|
|
13,952 |
|
|
|
23,076 |
|
|
|
27,053 |
|
Total revenues |
|
438,493 |
|
|
|
443,707 |
|
|
|
571,784 |
|
|
|
585,897 |
|
Operating expenses (excluding depreciation and amortization shown separately below) |
|
185,830 |
|
|
|
173,669 |
|
|
|
299,785 |
|
|
|
282,539 |
|
Selling, general and administrative expenses (excluding depreciation and amortization shown separately below) (1) |
|
60,388 |
|
|
|
90,448 |
|
|
|
102,905 |
|
|
|
134,695 |
|
Costs of products sold |
|
34,509 |
|
|
|
34,787 |
|
|
|
45,632 |
|
|
|
44,552 |
|
Depreciation and amortization |
|
28,621 |
|
|
|
28,910 |
|
|
|
58,121 |
|
|
|
58,024 |
|
Loss on disposal of assets |
|
6,446 |
|
|
|
2,550 |
|
|
|
7,840 |
|
|
|
4,985 |
|
Operating income |
|
122,699 |
|
|
|
113,343 |
|
|
|
57,501 |
|
|
|
61,102 |
|
Interest expense, net |
|
40,793 |
|
|
|
43,495 |
|
|
|
82,593 |
|
|
|
79,797 |
|
Loss on debt extinguishment |
|
2,736 |
|
|
|
13,982 |
|
|
|
2,736 |
|
|
|
13,982 |
|
Other expense (income), net |
|
5,714 |
|
|
|
(2,261 |
) |
|
|
4,674 |
|
|
|
(3,093 |
) |
Income (loss) before income taxes |
|
73,456 |
|
|
|
58,127 |
|
|
|
(32,502 |
) |
|
|
(29,584 |
) |
Income tax expense (benefit) |
|
14,830 |
|
|
|
13,807 |
|
|
|
(8,402 |
) |
|
|
(4,045 |
) |
Net income (loss) |
$ |
58,626 |
|
|
$ |
44,320 |
|
|
$ |
(24,100 |
) |
|
$ |
(25,539 |
) |
Less: Net income attributable to noncontrolling interests |
|
(24,499 |
) |
|
|
(23,766 |
) |
|
|
(24,499 |
) |
|
|
(23,766 |
) |
Net income (loss) attributable to Legacy (Former) Six Flags Entertainment Corporation |
$ |
34,127 |
|
|
$ |
20,554 |
|
|
$ |
(48,599 |
) |
|
$ |
(49,305 |
) |
Net income (loss) margin (2) |
|
7.8 |
% |
|
|
4.6 |
% |
|
|
(8.5 |
)% |
|
|
(8.4 |
)% |
(1) |
|
Includes stock-based compensation of |
(2) |
|
Net income (loss) margin is calculated as net income (loss) attributable to Legacy (Former) Six Flags Entertainment Corporation divided by total revenues. |
LEGACY (FORMER) SIX FLAGS ENTERTAINMENT CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET DATA (In thousands) |
|||||||
|
|||||||
|
June 30, 2024 |
|
July 2, 2023 |
||||
Cash and cash equivalents |
$ |
441,241 |
|
|
$ |
51,580 |
|
Total assets |
$ |
3,166,832 |
|
|
$ |
2,713,593 |
|
Long-term debt, including current maturities |
|
|
|
||||
Short-term borrowings |
$ |
205,000 |
|
|
$ |
169,000 |
|
Current portion of long-term debt |
|
56,867 |
|
|
|
— |
|
Long-term debt |
|
2,489,596 |
|
|
|
2,183,325 |
|
|
$ |
2,751,463 |
|
|
$ |
2,352,325 |
|
Total stockholders' deficit |
$ |
(1,077,326 |
) |
|
$ |
(995,466 |
) |
LEGACY (FORMER) SIX FLAGS ENTERTAINMENT CORPORATION RECONCILIATION OF ADJUSTED EBITDA AND MODIFIED EBITDA MARGIN (In thousands) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
||||||||
Net income (loss) |
$ |
58,626 |
|
|
$ |
44,320 |
|
|
$ |
(24,100 |
) |
|
$ |
(25,539 |
) |
Income tax expense (benefit) |
|
14,830 |
|
|
|
13,807 |
|
|
|
(8,402 |
) |
|
|
(4,045 |
) |
Other expense (income), net |
|
5,714 |
|
|
|
(2,261 |
) |
|
|
4,674 |
|
|
|
(3,093 |
) |
Loss on debt extinguishment |
|
2,736 |
|
|
|
13,982 |
|
|
|
2,736 |
|
|
|
13,982 |
|
Interest expense, net |
|
40,793 |
|
|
|
43,495 |
|
|
|
82,593 |
|
|
|
79,797 |
|
Loss on disposal of assets |
|
6,446 |
|
|
|
2,550 |
|
|
|
7,840 |
|
|
|
4,985 |
|
Depreciation and amortization |
|
28,621 |
|
|
|
28,910 |
|
|
|
58,121 |
|
|
|
58,024 |
|
Stock-based compensation |
|
2,762 |
|
|
|
2,179 |
|
|
|
5,109 |
|
|
|
5,493 |
|
Merger-related transaction costs |
|
1,486 |
|
|
|
— |
|
|
|
7,047 |
|
|
|
— |
|
Self-insurance reserve adjustment (1) |
|
— |
|
|
|
37,558 |
|
|
|
— |
|
|
|
37,558 |
|
Modified EBITDA (2) |
$ |
162,014 |
|
|
$ |
184,540 |
|
|
$ |
135,618 |
|
|
$ |
167,162 |
|
Third party interest in EBITDA of certain operations (3) |
|
(24,499 |
) |
|
|
(23,766 |
) |
|
|
(24,499 |
) |
|
|
(23,766 |
) |
Legacy Six Flags Adjusted EBITDA (2) |
$ |
137,515 |
|
|
$ |
160,774 |
|
|
$ |
111,119 |
|
|
$ |
143,396 |
|
Legacy Six Flags Modified EBITDA Margin (4) |
|
36.9 |
% |
|
|
41.6 |
% |
|
|
23.7 |
% |
|
|
28.5 |
% |
(1) |
|
Amount relates to an adjustment to the self-insurance reserves resulting from a change in accounting estimate that increased the ultimate loss indications on both identified claims and incurred but not reported claims. This adjustment was excluded from reported Adjusted EBITDA because (i) the change in actuarial assumptions and related change in accounting estimate that gave rise to the adjustment is unusual and not expected to be recurring; (ii) excluding it provides more meaningful comparisons to historical results; and (iii) excluding it provides more meaningful comparisons to other companies in the industry. |
(2) |
|
Modified EBITDA, a non-GAAP measure, is defined as consolidated income (loss) from continuing operations: excluding the following: the cumulative effect of changes in accounting principles, discontinued operations gains or losses, income tax expense or benefit, restructure costs or recoveries, reorganization items (net), other income or expense, gain or loss on early extinguishment of debt, equity in income or loss of investees, interest expense (net), gain or loss on disposal of assets, gain or loss on the sale of investees, amortization, depreciation, stock-based compensation, fresh start accounting valuation adjustments and other significant non-recurring items. Modified EBITDA, as defined herein, may differ from similarly titled measures presented by other companies. Legacy Six Flags management used non-GAAP measures for budgeting purposes, measuring actual results, allocating resources and in determining employee incentive compensation. Modified EBITDA provides relevant and useful information for investors because it assists in comparing operating performance on a consistent basis, makes it easier to compare results with those of other companies in the industry as it most closely ties performance to that of competitors from a park-level perspective and allows investors to review performance in the same manner as legacy Six Flags management.
Legacy Six Flags Adjusted EBITDA, a non-GAAP measure, is defined as Modified EBITDA minus the interests of third parties in the Modified EBITDA of properties that are less than wholly owned (consisting of Six Flags Over Georgia, Six Flags White Water Atlanta and Six Flags Over Texas). Legacy Six Flags Adjusted EBITDA is approximately equal to “Parent Consolidated Adjusted EBITDA” as defined in the legacy Six Flags secured credit agreement, except that Parent Consolidated Adjusted EBITDA excludes Adjusted EBITDA from equity investees that is not distributed in cash on a net basis and has limitations on the amounts of certain expenses that are excluded from the calculation. Legacy Six Flags Adjusted EBITDA as defined herein may differ from similarly titled measures presented by other companies, including Legacy Cedar Fair Adjusted EBITDA. The legacy Six Flags board of directors and management used Legacy Six Flags Adjusted EBITDA to measure performance and management incentive compensation plans were based largely on Legacy Six Flags Adjusted EBITDA. Adjusted EBITDA is frequently used by sell-side analysts and most investors as their primary measure of performance in the evaluation of companies in the industry. In addition, the instruments governing legacy Six Flags indebtedness used Legacy Six Flags Adjusted EBITDA to measure compliance with certain covenants and, in certain circumstances, the ability to make certain borrowings.
|
(3) |
|
Represents interests of non-controlling interests in the Adjusted EBITDA of Six Flags Over Georgia, Six Flags Over Texas and Six Flags White Water Atlanta. |
(4) |
|
Legacy Six Flags Modified EBITDA Margin (Modified EBITDA divided by total revenues) is not a measurement computed in accordance with GAAP and may not be comparable to similarly titled measures of other companies, including Legacy Cedar Fair Adjusted EBITDA Margin. Legacy Six Flags Modified EBITDA Margin is provided because the measure provides a meaningful metric of operating profitability. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808409224/en/
Investor Contact:
Michael Russell, 419.627.2233
Media Contact: Gary Rhodes, 704.249.6119
https://investors.sixflags.com
Source: Six Flags Entertainment Corporation
FAQ
What were Six Flags Entertainment 's Q2 2024 financial highlights for legacy Cedar Fair?
How did legacy Six Flags perform in Q2 2024 compared to the previous year?
When did the merger between Cedar Fair and Six Flags (FUN) occur?
How has the merger integration been progressing for Six Flags Entertainment (FUN)?
What factors affected Six Flags Entertainment 's (FUN) performance in July 2024?
