Six Flags Entertainment Corporation Reports 2024 Third Quarter Results; Announces New Long-Range Strategic Objectives
Six Flags Entertainment (NYSE: FUN) reported Q3 2024 financial results following its merger with Cedar Fair on July 1, 2024. The company posted net revenues of $1.35 billion, with $558 million from legacy Six Flags operations. Net income totaled $111 million, with attendance reaching 21.0 million guests. Despite weather-related disruptions, October performance showed strong momentum with a 20% attendance increase. The company announced new strategic objectives targeting $800 million in annual unlevered pre-tax free cash flow by 2027, aiming to increase attendance to over 55 million guests and expand Modified EBITDA margins above 35%.
Six Flags Entertainment (NYSE: FUN) ha riportato i risultati finanziari del terzo trimestre del 2024 in seguito alla fusione con Cedar Fair avvenuta il 1 luglio 2024. L'azienda ha registrato entrate nette di 1,35 miliardi di dollari, con 558 milioni di dollari provenienti dalle operazioni storiche di Six Flags. Il reddito netto ha raggiunto 111 milioni di dollari, con una partecipazione di 21,0 milioni di ospiti. Nonostante le interruzioni causate dalle condizioni atmosferiche, le performance di ottobre hanno mostrato una forte crescita con un aumento del 20% dei visitatori. L'azienda ha annunciato nuovi obiettivi strategici con l'obiettivo di raggiungere 800 milioni di dollari di flusso di cassa libero ante imposte annuale non leverato entro il 2027, puntando ad aumentare la partecipazione a oltre 55 milioni di ospiti ed espandere i margini EBITDA modificati oltre il 35%.
Six Flags Entertainment (NYSE: FUN) informó los resultados financieros del tercer trimestre de 2024 tras su fusión con Cedar Fair el 1 de julio de 2024. La compañía registró ingresos netos de 1.35 mil millones de dólares, con 558 millones de dólares provenientes de las operaciones heredadas de Six Flags. El ingreso neto totalizó 111 millones de dólares, y la asistencia alcanzó 21.0 millones de visitantes. A pesar de las interrupciones relacionadas con el clima, el rendimiento de octubre mostró un fuerte impulso con un aumento del 20% en la asistencia. La compañía anunció nuevos objetivos estratégicos que apuntan a 800 millones de dólares en flujo de caja libre anual no apalancado antes de impuestos para 2027, con el objetivo de aumentar la asistencia a más de 55 millones de visitantes y expandir los márgenes de EBITDA modificado por encima del 35%.
식스 플래그 엔터테인먼트 (NYSE: FUN)는 2024년 7월 1일 시더 페어와의 합병 이후 2024년 3분기 재무 결과를 발표했습니다. 이 회사는 13억 5천만 달러의 순수익을 기록했으며, 기존 식스 플래그 운영에서 5억 5천8백만 달러를 올렸습니다. 순이익은 1억 1천1백만 달러에 달하며, 방문객 수는 2천1백만 명에 이르렀습니다. 날씨로 인한 방해에도 불구하고 10월 성과는 방문객 수가 20% 증가하면서 강력한 모멘텀을 보였습니다. 이 회사는 2027년까지 연간 비 레버리지 세전 자유 현금 흐름에서 8억 달러를 목표로 하는 새로운 전략적 목표를 발표하며, 5천5백만 명 이상의 방문객 수를 늘리고 수정된 EBITDA 마진을 35% 이상으로 확대할 계획을 세웠습니다.
Six Flags Entertainment (NYSE: FUN) a annoncé les résultats financiers du troisième trimestre 2024 suite à sa fusion avec Cedar Fair le 1er juillet 2024. La société a enregistré des revenus nets de 1,35 milliard de dollars, dont 558 millions de dollars provenaient des opérations historiques de Six Flags. Le revenu net total a atteint 111 millions de dollars, avec une fréquentation atteignant 21,0 millions d'invités. Malgré les perturbations liées à la météo, les performances d'octobre ont montré un fort élan avec une augmentation de 20% de la participation. La société a annoncé de nouveaux objectifs stratégiques visant un flux de trésorerie libre avant impôt non endetté annuel de 800 millions de dollars d'ici 2027, avec l'objectif d'augmenter la participation à plus de 55 millions d'invités et d'élargir les marges EBITDA modifiées au-dessus de 35%.
Six Flags Entertainment (NYSE: FUN) hat die finanziellen Ergebnisse des dritten Quartals 2024 nach der Fusion mit Cedar Fair am 1. Juli 2024 bekannt gegeben. Das Unternehmen meldete netto Einnahmen von 1,35 Milliarden Dollar, wobei 558 Millionen Dollar aus den traditionellen Six Flags-Betrieben stammten. Der Nettogewinn belief sich auf 111 Millionen Dollar, und die Besucherzahl erreichte 21,0 Millionen Gäste. Trotz wetterbedingter Störungen zeigte die Leistung im Oktober eine starke Dynamik mit einem Anstieg der Besucherzahl um 20%. Das Unternehmen gab neue strategische Ziele bekannt, die eine jährliche, nicht gehebelte, vorsteuerliche freie Cashflow von 800 Millionen Dollar bis 2027 anstreben, und plant, die Besucherzahl auf über 55 Millionen Gäste zu steigern und die modifizierten EBITDA-Margen auf über 35% zu erhöhen.
- Net revenues increased by $506 million to $1.35 billion in Q3 2024
- October attendance increased 20% compared to previous year
- Season pass and membership sales up 8% in recent five weeks
- Achieved $50 million in run-rate cost synergies by end of 2024
- Strong deferred revenue growth of $151 million year-over-year
- Weather disruptions impacted Q3 financial results
- In-park per capita spending decreased by 2% to $61.27
- Net interest expense increased by $46 million
- $42 million non-cash charge for goodwill impairment at Schlitterbahn parks
- Net debt position of $4.72 billion as of September 29, 2024
Insights
The merger between Six Flags and Cedar Fair shows strong initial results with
The ambitious target of
However, weather-related disruptions and integration challenges remain key risks to monitor. The
Consumer demand signals are robust, particularly in the important Halloween season, demonstrating strong post-merger market positioning. The
Project Accelerate's focus on guest experience enhancement and digital integration shows strategic foresight in addressing changing consumer preferences. The plan to optimize the park portfolio could lead to stronger market concentration and improved competitive positioning in key regions.
The consolidation creates significant operational leverage, with potential for improved pricing power and enhanced guest monetization through cross-selling opportunities across the expanded network of parks.
- Outstanding October performance underscores strong momentum heading into 2025
-
Targeting at least
$800 million
On July 1, 2024, legacy Cedar Fair and legacy Six Flags closed the merger transactions (the “Merger”) to form the new Six Flags Entertainment Corporation (the “Combined Company”). Legacy Cedar Fair has been determined to be the accounting acquirer for financial statement purposes. Accordingly, the reported results presented in this earnings release reflect the financial results for the Combined Company from July 1, 2024, through Sept. 29, 2024. The reported results for the nine months ended Sept. 29, 2024, reflect combined operations for only July 1, 2024, through Sept. 29, 2024, and include only legacy Cedar Fair’s results (before giving effect to the Merger) for the first six months of 2024. Financial results and disclosures referring to periods prior to July 1, 2024, include legacy Cedar Fair's results before giving effect to the Merger, including the financial statements as of Sept. 24, 2023, and for the three and nine months ended Sept. 24, 2023.
Third Quarter 2024 Highlights
- Total operating days were 2,585, of which 1,591 were contributed by the legacy Six Flags operations added in the Merger.
-
Net revenues totaled
$1.35 billion $558 million -
Net income attributable to the Combined Company totaled
$111 million $3 million -
Adjusted EBITDA(2) totaled
$558 million $206 million - Attendance totaled 21.0 million guests, 9.2 million of whom attended legacy Six Flags parks added in the Merger.
-
In-park per capita spending(3) was
$61.27 -
Out-of-park revenues(3) totaled
$102 million $21 million
CEO Commentary
“We delivered solid results in our first quarter as a combined company and are encouraged by the continued momentum we see in the business,” said Six Flags President and CEO Richard A. Zimmerman. “While extreme weather and other operating disruptions at critical points during the third quarter impacted our financial results, consumer demand for our parks remained strong during normalized operating conditions. The strength of our business and considerable demand for our parks was particularly evident over the past five weeks, when attendance was up more than one million visits compared to combined legacy Cedar Fair and legacy Six Flags attendance over the same period last year. Our Halloween and other special events continue to produce some of our biggest days of the year, demonstrating the differentiated and compelling family entertainment that our parks offer.
“Since completing the Merger, we have been finding ways to operate more efficiently and reducing unnecessary costs while still delivering a high level of guest service,” continued Zimmerman. “By the end of 2024, we expect to have delivered
Zimmerman added, “Four months ago we launched Project Accelerate, a transformational initiative to harmonize our operations and unlock the full potential of the new Six Flags. We have only scratched the surface of what we can accomplish, and we are moving with a sense of urgency to optimize performance and execute our new long-term initiatives. I’m highly confident that focusing on our core strategic objectives will deliver superior and sustainable value creation over the next several years, enabling us to reach our new target of at least
Third Quarter 2024 Results
Operating days in the third quarter of 2024 totaled 2,585 days compared with 1,091 operating days for the third quarter last year. Of the 1,494 operating-day increase, 1,591 of the additional operating days resulted from the Merger and reflected operating days during the third quarter of 2024 at the legacy Six Flags parks. That increase was offset in part by 71 fewer operating days at the legacy Cedar Fair parks in the third quarter of 2024 compared to the third quarter of 2023 due to a fiscal calendar shift. The balance of the remaining decrease in operating days was the result of planned reductions in operating calendars, as well as extreme weather and related operating disruptions.
Net revenues for the third quarter ended Sept. 29, 2024, increased
The
Of the
Operating costs and expenses in the third quarter of 2024 totaled
Depreciation and amortization expense in the third quarter of 2024 totaled
After the items above, operating income for the three months ended Sept. 29, 2024, totaled
Net interest expense for the quarter totaled
During the three months ended Sept. 29, 2024, the Combined Company recorded a provision for taxes of
After the items above and income attributable to non-controlling interests, net income attributable to the Combined Company for the quarter totaled
Adjusted EBITDA, which management believes is a meaningful measure of park-level operating results, increased
Balance Sheet and Liquidity Highlights
Deferred revenues on Sept. 29, 2024, totaled
Liquidity as of Sept. 29, 2024, totaled
Net debt(4) on Sept. 29, 2024, calculated as total debt of
October Update
Based on preliminary operating results, attendance for the Combined Company over the five-week period ended Nov. 3, 2024, totaled 6.5 million visits, a
Based on the strength of October performance, management now believes the Combined Company is on pace to achieve fourth quarter Adjusted EBITDA of
Long-Range Plan – Project Accelerate
Six Flags today also announced the core objectives of its new long-range plan designed to deliver on the full growth potential of the Combined Company. In many cases, the new objectives represent the natural extension and evolution of strategic initiatives that contributed to the success of legacy Cedar Fair.
- Enhance the guest experience to deliver a stronger price-value proposition and drive demand.
- Identify incremental operating efficiencies that generate cost synergies and help drive margin expansion.
- Maintain a disciplined approach to the prioritization and activation of capital investments to realize the full market potential of each park, while maximizing free cash flow efficiency.
- Integrate technology stacks with a focus on harmonizing systems, eliminating redundancies, and enhancing the guest-facing digital experience.
- Review the park portfolio over time, to optimize the asset base, narrow management’s focus, and help reduce net leverage.
Six Flags also noted that as part of Project Accelerate, it has established a new annual unlevered pre-tax free cash flow target of at least
The company has posted additional information regarding its long-range strategic plan and objectives on its investor relations website at https://investors.sixflags.com under the tabs Investor Information and Events & Presentations.
Footnotes:
(1) |
Unlevered pre-tax free cash flow is defined as Adjusted EBITDA less capital expenditures. Unlevered pre-tax free cash flow is not computed in accordance with generally accepted accounting principles (GAAP) and may not be comparable to similarly titled measures of other companies. Management believes unlevered pre-tax free cash flow is a meaningful measure because it is used by analysts and investors in the industry to evaluate operating performance on a consistent basis, as well as more easily compare the Combined Company’s results with those of other companies in the industry. Management also uses unlevered pre-tax free cash flows for incentive compensation plans. The Combined Company is not reconciling unlevered pre-tax free cash flow targets or guidance in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Combined Company is unable, without unreasonable effort, to forecast certain individual items required to reconcile Adjusted EBITDA (a material component of unlevered pre-tax free cash flow) with the most directly comparable GAAP financial measure (net income). These items include foreign currency (gain) loss, as well as other non-cash and unusual items and other adjustments as defined under the Combined Company’s credit agreement, which are difficult to predict in advance in order to include in a GAAP estimate. |
|
(2) |
Adjusted EBITDA, Modified EBITDA and Modified EBITDA margin are not measurements computed in accordance with GAAP. Management believes Adjusted EBITDA and Modified EBITDA are meaningful measures of park-level operating profitability and uses them for measuring returns on capital investments, evaluating potential acquisitions, determining awards under incentive compensation plans, and calculating compliance with certain loan covenants. For additional information regarding Adjusted EBITDA, Modified EBITDA and Modified EBITDA margin, including how the Company defines and uses these measures, see the attached reconciliation table and related footnotes. The Combined Company is not reconciling Adjusted EBITDA and Modified EBITDA margin targets or guidance to net income and net income margin in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Combined Company is unable, without unreasonable effort, to forecast certain individual items required to reconcile Adjusted EBITDA and Modified EBITDA margin targets or guidance with the most directly comparable GAAP financial measure (net income and net income margin). These items include foreign currency (gain) loss, as well as other non-cash and unusual items and other adjustments as defined under the Combined Company’s credit agreement, which are difficult to predict in advance in order to include in a GAAP estimate. |
|
(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. 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) |
Net debt is a non-GAAP financial measure. See the attached reconciliation table and related footnote for the calculation of net debt. Net debt is a meaningful measure used by the Company and investors to monitor leverage, and management believes it is meaningful for this purpose. |
|
(5) |
Net Total Leverage is a non-GAAP financial measure calculated as Consolidated Debt (as defined in the Combined Company’s credit agreement) less cash and cash equivalents divided by Adjusted EBITDA. Net Total Leverage is not computed in accordance with GAAP and may not be comparable to similarly titled measures of other companies. Net Total Leverage is defined in the Combined Company’s credit agreement and is used to determine the amount of restricted payments allowable under the credit agreement. Management believes Net Total Leverage is a meaningful measure because of its importance in the credit agreement, its use by analysts and investors in the industry to evaluate financial condition on a consistent basis, and that it more easily compares the Combined Company’s results with those of other companies in the industry. The Combined Company is not reconciling Net Total Leverage targets or guidance to in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Combined Company is unable, without unreasonable effort, to forecast certain individual items required to reconcile Adjusted EBITDA (a material component of Net Total Leverage) with the most directly comparable GAAP financial measure (net income). These items include foreign currency (gain) loss, as well as other non-cash and unusual items and other adjustments as defined under the Combined Company’s credit agreement, which are difficult to predict in advance in order to include in a GAAP estimate. For purposes of this calculation, Net Total Leverage assumes the buyout of the Six Flags Over Georgia, including Six Flags White Water Atlanta, and Six Flags Over Texas partnership parks at the end of 2026 and 2027, respectively. |
Conference Call
As previously announced, Six Flags Entertainment Corporation will host a conference call with analysts starting at 10 a.m. ET today, Nov. 6, 2024, to discuss its recent financial results. Participants on the call will include Six Flags President and CEO Richard Zimmerman and Executive Vice President and CFO Brian Witherow.
Investors and all other interested parties can access a live, listen-only audio webcast of the call on the Six Flags 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 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 Wednesday, Nov. 6, 2024, until 11:59 p.m. ET, Wednesday, Nov. 13, 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
Forward-Looking Statements
Some of the statements contained in this report (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 risks and uncertainties 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 risks and uncertainties we discuss under the heading “Risk Factors” within Part II, Item 1A of the Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, 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 publication of this document.
This news release and prior releases are available under the News tab at https://investors.sixflags.com
(financial tables follow)
SIX FLAGS ENTERTAINMENT CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) |
|||||||||||||||
|
Three months ended |
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Nine months ended |
||||||||||||
|
September 29,
|
|
September 24,
|
|
September 29,
|
|
September 24,
|
||||||||
Net revenues: |
|
|
|
|
|
|
|
||||||||
Admissions |
$ |
716,684 |
|
|
$ |
430,952 |
|
|
$ |
1,043,375 |
|
|
$ |
725,367 |
|
Food, merchandise and games |
|
436,781 |
|
|
|
281,546 |
|
|
|
685,663 |
|
|
|
493,274 |
|
Accommodations, extra-charge products and other |
|
194,920 |
|
|
|
129,511 |
|
|
|
292,578 |
|
|
|
208,904 |
|
|
|
1,348,385 |
|
|
|
842,009 |
|
|
|
2,021,616 |
|
|
|
1,427,545 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of food, merchandise, and games revenues |
|
109,890 |
|
|
|
70,072 |
|
|
|
174,759 |
|
|
|
129,085 |
|
Operating expenses |
|
575,032 |
|
|
|
332,559 |
|
|
|
999,159 |
|
|
|
739,216 |
|
Selling, general and administrative |
|
209,260 |
|
|
|
64,799 |
|
|
|
322,518 |
|
|
|
141,405 |
|
Depreciation and amortization |
|
144,560 |
|
|
|
65,936 |
|
|
|
211,887 |
|
|
|
127,711 |
|
Loss on retirement of fixed assets, net |
|
4,671 |
|
|
|
2,018 |
|
|
|
11,406 |
|
|
|
12,779 |
|
Loss on impairment of goodwill |
|
42,462 |
|
|
|
— |
|
|
|
42,462 |
|
|
|
— |
|
|
|
1,085,875 |
|
|
|
535,384 |
|
|
|
1,762,191 |
|
|
|
1,150,196 |
|
Operating income |
|
262,510 |
|
|
|
306,625 |
|
|
|
259,425 |
|
|
|
277,349 |
|
Interest expense, net |
|
81,742 |
|
|
|
35,296 |
|
|
|
155,903 |
|
|
|
104,099 |
|
Loss on early debt extinguishment |
|
2,063 |
|
|
|
— |
|
|
|
7,974 |
|
|
|
— |
|
Other (income) expense, net |
|
(101 |
) |
|
|
5,162 |
|
|
|
6,862 |
|
|
|
(1,508 |
) |
Income before taxes |
|
178,806 |
|
|
|
266,167 |
|
|
|
88,686 |
|
|
|
174,758 |
|
Provision for taxes |
|
43,341 |
|
|
|
50,673 |
|
|
|
31,135 |
|
|
|
40,246 |
|
Net income |
|
135,465 |
|
|
|
215,494 |
|
|
|
57,551 |
|
|
|
134,512 |
|
Net income attributable to non-controlling interests |
|
24,499 |
|
|
|
— |
|
|
|
24,499 |
|
|
|
— |
|
Net income attributable to Six Flags Entertainment Corporation |
$ |
110,966 |
|
|
$ |
215,494 |
|
|
$ |
33,052 |
|
|
$ |
134,512 |
|
Net income margin(1) |
|
10.0 |
% |
|
|
25.6 |
% |
|
|
2.8 |
% |
|
|
9.4 |
% |
(1) Net income margin is calculated as net income divided by net revenues. |
|||||||||||||||
SIX FLAGS ENTERTAINMENT CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET DATA (In thousands) |
||||||
|
September 29,
|
|
September 24,
|
|||
Cash and cash equivalents |
$ |
89,705 |
|
$ |
134,394 |
|
Total assets |
$ |
9,369,226 |
|
$ |
2,318,603 |
|
Long-term debt, including current maturities: |
||||||
Revolving credit loans |
$ |
139,080 |
|
$ |
— |
|
Term debt |
|
986,622 |
|
|
— |
|
Notes |
|
3,658,805 |
|
|
2,272,961 |
|
|
$ |
4,784,507 |
|
$ |
2,272,961 |
|
Equity (deficit) |
$ |
2,341,578 |
|
$ |
(565,769 |
) |
SIX FLAGS ENTERTAINMENT CORPORATION RECONCILIATION OF MODIFIED EBITDA, ADJUSTED EBITDA AND MODIFIED EBITDA MARGIN (In thousands) |
|||||||||||||||
|
Three months ended |
Nine months ended |
|||||||||||||
|
September 29,
|
|
September 24,
|
|
September 29,
|
|
September 24,
|
||||||||
Net income |
$ |
135,465 |
|
|
$ |
215,494 |
|
|
$ |
57,551 |
|
|
$ |
134,512 |
|
Interest expense, net |
|
81,742 |
|
|
|
35,296 |
|
|
|
155,903 |
|
|
|
104,099 |
|
Provision for taxes |
|
43,341 |
|
|
|
50,673 |
|
|
|
31,135 |
|
|
|
40,246 |
|
Depreciation and amortization |
|
144,560 |
|
|
|
65,936 |
|
|
|
211,887 |
|
|
|
127,711 |
|
EBITDA |
|
405,108 |
|
|
|
367,399 |
|
|
|
456,476 |
|
|
|
406,568 |
|
Loss on early debt extinguishment |
|
2,063 |
|
|
|
— |
|
|
|
7,974 |
|
|
|
— |
|
Non-cash foreign currency (gain) loss |
|
(1,122 |
) |
|
|
5,460 |
|
|
|
5,880 |
|
|
|
(1,674 |
) |
Non-cash equity compensation expense |
|
39,131 |
|
|
|
8,221 |
|
|
|
53,550 |
|
|
|
15,841 |
|
Loss on retirement of fixed assets, net |
|
4,671 |
|
|
|
2,018 |
|
|
|
11,406 |
|
|
|
12,779 |
|
Loss on impairment of goodwill |
|
42,462 |
|
|
|
— |
|
|
|
42,462 |
|
|
|
— |
|
Costs related to the Mergers (1) |
|
73,335 |
|
|
|
5,012 |
|
|
|
94,610 |
|
|
|
5,012 |
|
Self-insurance adjustment (2) |
|
14,865 |
|
|
|
— |
|
|
|
14,865 |
|
|
|
— |
|
Other (3) |
|
2,019 |
|
|
|
385 |
|
|
|
3,593 |
|
|
|
284 |
|
Modified EBITDA (4) |
|
582,532 |
|
|
|
388,495 |
|
|
|
690,816 |
|
|
|
438,810 |
|
Modified EBITDA attributable to non-controlling interests |
|
24,499 |
|
|
|
— |
|
|
|
24,499 |
|
|
|
— |
|
Adjusted EBITDA (4) |
$ |
558,033 |
|
|
$ |
388,495 |
|
|
$ |
666,317 |
|
|
$ |
438,810 |
|
|
|
|
|
|
|
|
|
||||||||
Modified EBITDA margin (5) |
|
43.2 |
% |
|
|
46.1 |
% |
|
|
34.2 |
% |
|
|
30.7 |
% |
(1) |
Consists of third-party legal and consulting transaction costs, as well as integration costs related to the Mergers. Integration costs include third-party consulting costs, travel costs and contract termination costs. These costs are added back to net income to calculate Modified EBITDA and Adjusted EBITDA as defined in the Combined Company's credit agreement. |
|
|
|
|
(2) |
During the third quarter of 2024, an actuarial analysis of legacy Cedar Fair's self-insurance reserves resulted in a change in estimate that increased the incurred but not reported ("IBNR") reserves related to these self-insurance reserves by |
|
|
|
|
(3) |
Consists of certain costs as defined in the Combined Company's credit agreement. These costs are added back to net income to calculate Modified EBITDA and 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. |
|
|
|
|
(4) |
Modified EBITDA represents earnings before interest, taxes, depreciation, amortization, other non-cash items, and adjustments as defined in the Combined Company's credit agreement. Adjusted EBITDA represents Modified EBITDA minus net income attributable to non-controlling interests. Management included both measures to disclose the effect of non-controlling interests. Prior to the Merger, legacy Cedar Fair did not have net income attributable to non-controlling interests. Management believes Modified EBITDA and Adjusted EBITDA are meaningful measures of park-level operating profitability and use them for measuring returns on capital investments, evaluating potential acquisitions, determining awards under incentive compensation plans, and calculating compliance with certain loan covenants. Adjusted EBITDA 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. Modified EBITDA and Adjusted EBITDA are provided as a supplemental measure of the Combined Company's operating results and are 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, Modified EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. |
|
|
|
|
(5) |
Modified EBITDA margin (Modified 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. Modified EBITDA margin is provided because the measure provides a meaningful metric of operating profitability. Modified EBITDA margin has been disclosed as opposed to Adjusted EBITDA margin because management believes Modified EBITDA margin more accurately reflects the park-level operations of the Combined Company as it does not give effect to distributions to non-controlling interests. |
SIX FLAGS ENTERTAINMENT CORPORATION CALCULATION OF NET DEBT (In thousands) |
|||||
|
|||||
|
September 29, 2024 |
||||
| Long-term debt, including current maturities | $ |
4,784,507 |
|
||
| Plus: Debt issuance costs and original issue discount |
|
44,494 |
|
||
| Less: Acquisition fair value layers |
|
(23,001 |
) |
||
| Less: Cash and cash equivalents |
|
(89,705 |
) |
||
| Net Debt (1) | $ |
4,716,295 |
|
||
(1) |
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. |
||||
SIX FLAGS ENTERTAINMENT CORPORATION KEY OPERATIONAL MEASURES (In thousands, except per capita and operating day amounts) |
|||||||||||
|
Three months ended |
|
Nine months ended |
||||||||
|
September 29,
|
|
September 24,
|
|
September 29,
|
|
September 24,
|
||||
Attendance |
|
20,971 |
|
|
12,433 |
|
|
30,955 |
|
|
20,889 |
In-park per capita spending (1) |
$ |
61.27 |
|
$ |
62.70 |
|
$ |
61.21 |
|
$ |
62.94 |
Out-of-park revenues (1) |
$ |
102,265 |
|
$ |
85,995 |
|
$ |
184,623 |
|
$ |
155,366 |
Operating days |
|
2,585 |
|
|
1,091 |
|
|
3,491 |
|
|
1,988 |
(1) |
In-park per capita spending is calculated as revenues generated within the Combined Company's amusement parks and separately gated outdoor water parks along with related parking revenues and online transaction fees charged to customers (in-park revenues), divided by total attendance. Out-of-park revenues are defined as revenues from resorts, out-of-park food and retail locations, sponsorships, international agreements 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. A reconciliation of in-park revenues and out-of-park revenues to net revenues for the periods presented in the table below. Certain prior period amounts totaling |
|
Three months ended |
|
Nine months ended |
||||||||||||
(In thousands) |
September 29,
|
|
September 24,
|
|
September 29,
|
|
September 24,
|
||||||||
In-park revenues |
$ |
1,284,875 |
|
|
$ |
779,532 |
|
|
$ |
1,894,766 |
|
|
$ |
1,314,723 |
|
Out-of-park revenues |
|
102,265 |
|
|
|
85,995 |
|
|
|
184,623 |
|
|
|
155,366 |
|
Concessionaire remittance |
|
(38,755 |
) |
|
|
(23,518 |
) |
|
|
(57,773 |
) |
|
|
(42,544 |
) |
Net revenues |
$ |
1,348,385 |
|
|
$ |
842,009 |
|
|
$ |
2,021,616 |
|
|
$ |
1,427,545 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106933285/en/
Investor Contact: Michael Russell, 419.627.2233
Media Contact: Gary Rhodes, 704.249.6119
https://ir.cedarfair.com
Source: Six Flags Entertainment Corporation
FAQ
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