CORRECTING and REPLACING Six Flags Reports Second Quarter 2023 Performance
- None.
- None.
The updated release reads:
SIX FLAGS REPORTS SECOND QUARTER 2023 PERFORMANCE
Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company and the largest operator of water parks in
“Following a year of transition, our strategy is taking hold. Despite a challenging weather backdrop in the first half of the year, we are seeing a return to a solid growth trajectory in attendance, revenue and earnings,” said Selim Bassoul, President and CEO. “I am pleased to see our team members executing so well towards our strategic objectives. Delighting our guests is our number one priority, and this season, we have invested significantly in park infrastructure and beautification, and we have introduced an exciting lineup of new events, including Flavors of the World and Summer Nights Spectacular. Looking ahead, we are optimistic about the remainder of the season, with major investments in our Oktoberfest Food Festival, Kids Boo Fest, Fright Fest, and Holiday in the Park events; and looking further ahead to 2024, we will be investing heavily in new marketable attractions, to further elevate our position as a leader in thrills.”
Second Quarter 2023 Results |
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Three Months Ended |
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(Amounts in millions, except per share data) |
|
July 2, 2023 |
|
July 3, 2022 |
|
% Change vs. 2022 |
|||
Total revenue |
|
$ |
444 |
|
$ |
435 |
|
2 |
% |
Net income attributable to Six Flags Entertainment |
|
$ |
21 |
|
$ |
45 |
|
(55) |
% |
Net income per share, diluted |
|
$ |
0.25 |
|
$ |
0.53 |
|
(53) |
% |
Adjusted EBITDA (1) , (3) |
|
$ |
161 |
|
$ |
154 |
|
5 |
% |
Attendance |
|
|
7.1 |
|
|
6.7 |
|
6 |
% |
Spending per capita figures (2) |
|
|
|
|
|
|
|
|
|
Total guest spending per capita |
|
$ |
60.76 |
|
$ |
63.87 |
|
(5) |
% |
Admissions spending per capita |
|
$ |
33.79 |
|
$ |
36.35 |
|
(7) |
% |
In-park spending per capita |
|
$ |
26.97 |
|
$ |
27.52 |
|
(2) |
% |
Total revenue for second quarter 2023 increased
The
The company had net income of
First Half 2023 Results |
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Six Months Ended |
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(Amounts in millions, except per share data) |
|
July 2, 2023 |
|
July 3, 2022 |
|
% Change vs. 2022 |
|||
Total revenue |
|
$ |
586 |
|
$ |
574 |
|
2 |
% |
Net loss attributable to Six Flags Entertainment |
|
$ |
(49) |
|
$ |
(20) |
|
N/M |
|
Net loss per share, diluted |
|
$ |
(0.59) |
|
$ |
(0.24) |
|
N/M |
|
Adjusted EBITDA (1) , (3) |
|
$ |
143 |
|
$ |
137 |
|
5 |
% |
Attendance |
|
|
8.7 |
|
|
8.3 |
|
4 |
% |
Spending per capita figures (2) |
|
|
|
|
|
|
|
|
|
Total guest spending per capita |
|
$ |
64.46 |
|
$ |
66.21 |
|
(3) |
% |
Admissions spending per capita |
|
$ |
36.37 |
|
$ |
37.75 |
|
(4) |
% |
In-park spending per capita |
|
$ |
28.09 |
|
$ |
28.46 |
|
(1) |
% |
Total revenue for first half 2023 increased
The
The company had net loss of
As of July 2, 2023, the company had total reported debt of
Conference Call
At 7:00 a.m. Central Time today, August 10, 2023, the company will host a conference call to discuss its second quarter 2023 financial performance. The call is accessible through either the Six Flags Investor Relations website at investors.sixflags.com, or by dialing 1-833-629-0614 in
About Six Flags Entertainment Corporation
Six Flags Entertainment Corporation is the world’s largest regional theme park company with 27 parks across
Forward Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding (i) the effect, impact, potential duration or other implications of the COVID-19 pandemic or virus variants, and any expectations we may have with respect thereto including the continuing efficacy of the COVID-19 vaccines, (ii) the adequacy of our cash flows from operations, available cash and available amounts under our credit facilities to meet our liquidity needs, including in the event of a prolonged closure of one or more of our parks, (iii) our ability to execute our strategy to significantly improve our financial performance and the guest experience, (iv) expectations regarding consumer demand for regional, outdoor, out-of-home entertainment, including for our parks, and (v) expectations regarding our annual income tax liability and the availability and effect of net operating loss carryforwards and other tax benefits.
Forward-looking statements include all statements that are not historical facts and often use words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "may," "should," "could" and variations of such words or similar expressions. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. These risks and uncertainties include, among others, factors impacting attendance, such as local conditions, natural disasters, contagious diseases, including COVID-19 and Monkeypox, or the perceived threat of contagious diseases, events, disturbances and terrorist activities; regulations and guidance of federal, state and local governments and health officials regarding the response to COVID-19 or other health emergencies such as Monkeypox, including with respect to business operations, safety protocols and public gatherings; economic impact of political instability and conflicts globally, including the war in
Footnotes |
||
(1) |
See the following financial statements and Note 4 to those financial statements for a discussion of Adjusted EBITDA (a non-GAAP financial measure) and its reconciliation to net income (loss). |
|
(2) |
We use certain per capita operational metrics that measure the performance of our business on a per guest basis and believe that these metrics provide relevant and useful information for investors because they assist in comparing our operating performance on a consistent basis, make it easier to compare our results with those of other companies and our industry and allows investors to review performance in the same manner as our management. |
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(3) |
During 2023, we reclassified the net pension-related expense (benefit) to “Other (income) expense, net”, in our consolidated statements of operations. This reclassification has been reflected in all periods presented. As a result, Adjusted EBITDA for the three-month period and the six-month period ended July 3, 2022, declined by |
|
(4) |
“Cash operating costs” includes operating expenses (excluding depreciation and amortization) and selling, general and administrative expenses (excluding stock-based compensation). |
Statement of Operations Data |
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Three Months Ended |
|
Six Months Ended |
|
Twelve Months Ended |
||||||||||||||||||
|
|
July 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3, 2022 |
||||||||||||
(Amounts in thousands, except per share data) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
||||||
Park admissions |
|
$ |
238,963 |
|
|
$ |
241,777 |
|
|
$ |
315,266 |
|
|
$ |
314,764 |
|
|
$ |
735,917 |
|
|
$ |
820,914 |
|
Park food, merchandise and other |
|
|
190,792 |
|
|
|
183,081 |
|
|
|
243,578 |
|
|
|
237,350 |
|
|
|
577,193 |
|
|
|
662,680 |
|
Sponsorship, international agreements and accommodations |
|
|
13,952 |
|
|
|
10,564 |
|
|
|
27,053 |
|
|
|
21,415 |
|
|
|
57,494 |
|
|
|
45,029 |
|
Total revenues |
|
|
443,707 |
|
|
|
435,422 |
|
|
|
585,897 |
|
|
|
573,529 |
|
|
|
1,370,604 |
|
|
|
1,528,623 |
|
Operating expenses (excluding depreciation and amortization shown separately below) |
|
|
173,669 |
|
|
|
173,357 |
|
|
|
282,539 |
|
|
|
283,076 |
|
|
|
590,123 |
|
|
|
652,947 |
|
Selling, general and administrative expenses (excluding depreciation and amortization shown separately below) (1) |
|
|
90,448 |
|
|
|
53,498 |
|
|
|
134,695 |
|
|
|
92,755 |
|
|
|
203,798 |
|
|
|
218,126 |
|
Costs of products sold |
|
|
34,787 |
|
|
|
35,710 |
|
|
|
44,552 |
|
|
|
45,825 |
|
|
|
106,873 |
|
|
|
125,144 |
|
Depreciation and amortization |
|
|
28,910 |
|
|
|
27,537 |
|
|
|
58,024 |
|
|
|
56,586 |
|
|
|
118,562 |
|
|
|
114,135 |
|
Loss on impairment of park assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,943 |
|
|
|
— |
|
Loss (gain) on disposal of assets |
|
|
2,550 |
|
|
|
98 |
|
|
|
4,985 |
|
|
|
(2,002 |
) |
|
|
10,914 |
|
|
|
8,896 |
|
Operating income |
|
|
113,343 |
|
|
|
145,222 |
|
|
|
61,102 |
|
|
|
97,289 |
|
|
|
323,391 |
|
|
|
409,375 |
|
Interest expense, net |
|
|
43,495 |
|
|
|
35,978 |
|
|
|
79,797 |
|
|
|
73,508 |
|
|
|
147,879 |
|
|
|
149,476 |
|
Loss on debt extinguishment |
|
|
13,982 |
|
|
|
17,533 |
|
|
|
13,982 |
|
|
|
17,533 |
|
|
|
13,982 |
|
|
|
17,533 |
|
Other (income) expense, net |
|
|
(2,261 |
) |
|
|
(722 |
) |
|
|
(3,093 |
) |
|
|
(1,410 |
) |
|
|
(1,767 |
) |
|
|
6,348 |
|
Income (loss) before income taxes |
|
|
58,127 |
|
|
|
92,433 |
|
|
|
(29,584 |
) |
|
|
7,658 |
|
|
|
163,297 |
|
|
|
236,018 |
|
Income tax expense (benefit) |
|
|
13,807 |
|
|
|
24,716 |
|
|
|
(4,045 |
) |
|
|
5,603 |
|
|
|
37,312 |
|
|
|
57,838 |
|
Net income (loss) |
|
$ |
44,320 |
|
|
$ |
67,717 |
|
|
$ |
(25,539 |
) |
|
$ |
2,055 |
|
|
$ |
125,985 |
|
|
$ |
178,180 |
|
Less: Net income attributable to noncontrolling interests |
|
|
(23,766 |
) |
|
|
(22,325 |
) |
|
|
(23,766 |
) |
|
|
(22,325 |
) |
|
|
(46,092 |
) |
|
|
(43,208 |
) |
Net income (loss) attributable to Six Flags Entertainment Corporation |
|
$ |
20,554 |
|
|
$ |
45,392 |
|
|
$ |
(49,305 |
) |
|
$ |
(20,270 |
) |
|
$ |
79,893 |
|
|
$ |
134,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic: |
|
|
83,379 |
|
|
|
84,992 |
|
|
|
83,293 |
|
|
|
85,594 |
|
|
|
83,209 |
|
|
|
85,789 |
|
Diluted: |
|
|
83,796 |
|
|
|
85,242 |
|
|
|
83,293 |
|
|
|
85,594 |
|
|
|
83,482 |
|
|
|
86,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income (loss) per average common share outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic: |
|
$ |
0.25 |
|
|
$ |
0.53 |
|
|
$ |
(0.59 |
) |
|
$ |
(0.24 |
) |
|
$ |
1.47 |
|
|
$ |
1.57 |
|
Diluted: |
|
$ |
0.25 |
|
|
$ |
0.53 |
|
|
$ |
(0.59 |
) |
|
$ |
(0.24 |
) |
|
$ |
1.47 |
|
|
$ |
1.56 |
|
(1) |
Includes stock-based compensation of |
|
||||||||||||
|
|
As of |
||||||||||
|
|
July 2, 2023 |
|
January 1, 2023 |
|
July 3, 2022 |
||||||
(Amounts in thousands, except share data) |
|
(unaudited) |
|
|
|
|
(unaudited) |
|||||
ASSETS |
|
|
|
|
|
|
|
|
|
|||
Current assets: |
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
51,580 |
|
|
$ |
80,122 |
|
|
$ |
74,802 |
|
Accounts receivable, net |
|
|
93,077 |
|
|
|
49,405 |
|
|
|
70,473 |
|
Inventories |
|
|
43,172 |
|
|
|
44,811 |
|
|
|
47,531 |
|
Prepaid expenses and other current assets |
|
|
84,808 |
|
|
|
66,452 |
|
|
|
69,990 |
|
Total current assets |
|
|
272,637 |
|
|
|
240,790 |
|
|
|
262,796 |
|
Property and equipment, net: |
|
|
|
|
|
|
|
|
|
|||
Property and equipment, at cost |
|
|
2,666,636 |
|
|
|
2,592,485 |
|
|
|
2,552,144 |
|
Accumulated depreciation |
|
|
(1,410,480 |
) |
|
|
(1,350,739 |
) |
|
|
(1,297,710 |
) |
Total property and equipment, net |
|
|
1,256,156 |
|
|
|
1,241,746 |
|
|
|
1,254,434 |
|
Goodwill |
|
|
659,618 |
|
|
|
659,618 |
|
|
|
659,618 |
|
Intangible assets, net of accumulated amortization |
|
|
344,153 |
|
|
|
344,164 |
|
|
|
344,176 |
|
Right-of-use operating leases, net |
|
|
154,182 |
|
|
|
158,838 |
|
|
|
180,836 |
|
Debt issuance costs |
|
|
6,110 |
|
|
|
2,764 |
|
|
|
3,832 |
|
Deposits and other assets |
|
|
20,737 |
|
|
|
17,905 |
|
|
|
8,101 |
|
Total assets |
|
$ |
2,713,593 |
|
|
$ |
2,665,825 |
|
|
$ |
2,713,793 |
|
|
|
|
|
|
|
|
|
|
|
|||
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
|
|
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|
|
|
|
|
|||
Accounts payable |
|
$ |
54,174 |
|
|
$ |
38,887 |
|
|
$ |
67,925 |
|
Accrued compensation, payroll taxes and benefits |
|
|
21,571 |
|
|
|
15,224 |
|
|
|
24,968 |
|
Self-insurance reserves |
|
|
68,633 |
|
|
|
34,053 |
|
|
|
37,017 |
|
Accrued interest payable |
|
|
33,216 |
|
|
|
38,484 |
|
|
|
24,713 |
|
Other accrued liabilities |
|
|
79,959 |
|
|
|
67,346 |
|
|
|
102,626 |
|
Deferred revenue |
|
|
176,811 |
|
|
|
128,627 |
|
|
|
171,238 |
|
Short-term borrowings |
|
|
169,000 |
|
|
|
100,000 |
|
|
|
200,000 |
|
Short-term lease liabilities |
|
|
11,730 |
|
|
|
11,688 |
|
|
|
11,394 |
|
Total current liabilities |
|
|
615,094 |
|
|
|
434,309 |
|
|
|
639,881 |
|
Noncurrent liabilities: |
|
|
|
|
|
|
|
|
|
|||
Long-term debt |
|
|
2,183,325 |
|
|
|
2,280,531 |
|
|
|
2,277,910 |
|
Long-term lease liabilities |
|
|
163,950 |
|
|
|
164,804 |
|
|
|
175,786 |
|
Other long-term liabilities |
|
|
29,077 |
|
|
|
30,714 |
|
|
|
5,476 |
|
Deferred income taxes |
|
|
172,849 |
|
|
|
184,637 |
|
|
|
152,041 |
|
Total liabilities |
|
|
3,164,295 |
|
|
|
3,094,995 |
|
|
|
3,251,094 |
|
|
|
|
|
|
|
|
|
|
|
|||
Redeemable noncontrolling interests |
|
|
544,764 |
|
|
|
521,395 |
|
|
|
543,719 |
|
|
|
|
|
|
|
|
|
|
|
|||
Stockholders' deficit: |
|
|
|
|
|
|
|
|
|
|||
Preferred stock, |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
2,086 |
|
|
|
2,079 |
|
|
|
2,075 |
|
Capital in excess of par value |
|
|
1,109,779 |
|
|
|
1,104,051 |
|
|
|
1,103,534 |
|
Accumulated deficit |
|
|
(2,034,736 |
) |
|
|
(1,985,500 |
) |
|
|
(2,114,697 |
) |
Accumulated other comprehensive loss, net of tax |
|
|
(72,595 |
) |
|
|
(71,195 |
) |
|
|
(71,932 |
) |
Total stockholders' deficit |
|
|
(995,466 |
) |
|
|
(950,565 |
) |
|
|
(1,081,020 |
) |
Total liabilities and stockholders' deficit |
|
$ |
2,713,593 |
|
|
$ |
2,665,825 |
|
|
$ |
2,713,793 |
|
|
|
|
|
|
|
|
||
|
|
Six Months Ended |
||||||
|
|
July 2, 2023 |
|
July 3, 2022 |
||||
(Amounts in thousands) |
|
(unaudited) |
|
(unaudited) |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net (loss) income |
|
$ |
(25,539 |
) |
|
$ |
2,055 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
58,024 |
|
|
|
56,586 |
|
Stock-based compensation |
|
|
5,493 |
|
|
|
7,448 |
|
Interest accretion on notes payable |
|
|
511 |
|
|
|
555 |
|
Loss on debt extinguishment |
|
|
13,982 |
|
|
|
17,533 |
|
Amortization of debt issuance costs |
|
|
2,889 |
|
|
|
3,965 |
|
Loss (gain) on disposal of assets |
|
|
4,985 |
|
|
|
(2,002 |
) |
Deferred income tax (benefit) expense |
|
|
(7,467 |
) |
|
|
726 |
|
Other |
|
|
(5,573 |
) |
|
|
(3,403 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
(Increase) decrease in accounts receivable |
|
|
(42,233 |
) |
|
|
27,327 |
|
Increase in inventories, prepaid expenses and other current assets |
|
|
(25,480 |
) |
|
|
(34,698 |
) |
(Increase) decrease in deposits and other assets |
|
|
1,315 |
|
|
|
(1,928 |
) |
Decrease in ROU operating leases |
|
|
5,614 |
|
|
|
5,517 |
|
Increase in accounts payable, deferred revenue, accrued liabilities and other long-term liabilities |
|
|
104,717 |
|
|
|
11,012 |
|
Decrease in operating lease liabilities |
|
|
(1,340 |
) |
|
|
(1,615 |
) |
Decrease in accrued interest payable |
|
|
(5,269 |
) |
|
|
(25,841 |
) |
Net cash provided by operating activities |
|
|
84,629 |
|
|
|
63,237 |
|
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Additions to property and equipment |
|
|
(68,130 |
) |
|
|
(59,006 |
) |
Property insurance recoveries |
|
|
1,089 |
|
|
|
3,664 |
|
Net cash used in investing activities |
|
|
(67,041 |
) |
|
|
(55,342 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
Repayment of borrowings |
|
|
(1,028,623 |
) |
|
|
(360,000 |
) |
Proceeds from borrowings |
|
|
998,984 |
|
|
|
200,000 |
|
Payment of debt issuance costs |
|
|
(19,294 |
) |
|
|
(12,600 |
) |
Payment of cash dividends |
|
|
— |
|
|
|
(3 |
) |
Proceeds from issuance of common stock |
|
|
— |
|
|
|
1,665 |
|
Payment of tax withholdings on equity-based compensation through shares withheld |
|
|
(241 |
) |
|
|
(260 |
) |
Reduction in finance lease liability |
|
|
(498 |
) |
|
|
(490 |
) |
Net cash used in financing activities |
|
|
(50,000 |
) |
|
|
(269,018 |
) |
|
|
|
|
|
|
|
||
Effect of exchange rate on cash |
|
|
3,870 |
|
|
|
340 |
|
|
|
|
|
|
|
|
||
Net change in cash and cash equivalents |
|
|
(28,542 |
) |
|
|
(260,783 |
) |
Cash and cash equivalents at beginning of period |
|
|
80,122 |
|
|
|
335,585 |
|
Cash and cash equivalents at end of period |
|
$ |
51,580 |
|
|
$ |
74,802 |
|
|
|
|
|
|
|
|
||
Supplemental cash flow information |
|
|
|
|
|
|
||
Cash paid for interest |
|
$ |
83,031 |
|
|
$ |
95,141 |
|
Cash paid for income taxes |
|
$ |
6,892 |
|
|
$ |
1,661 |
|
Definition and Reconciliation of Non-GAAP Financial Measures
We prepare our financial statements in accordance with
However, because these non-GAAP financial measures are not determined in accordance with GAAP, they are susceptible to varying calculations, and not all companies calculate these measures in the same manner. As a result, these non-GAAP financial measures as presented may not be directly comparable to a similarly titled non-GAAP financial measure presented by another company. These non-GAAP financial measures are presented as supplemental information and not as alternatives to any GAAP financial measures. When reviewing a non-GAAP financial measure, we encourage our investors to fully review and consider the related reconciliation as detailed below.
The following tables set forth a reconciliation of net (loss) income to Adjusted EBITDA for the three-month periods, six-month periods and twelve-month periods ended July 2, 2023, and July 3, 2022:
|
|
Three Months Ended |
|
Six Months Ended |
|
Twelve Months Ended |
||||||||||||||||||
(Amounts in thousands, except per share data) |
|
July 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3, 2022 |
||||||||||||
Net income (loss) |
|
$ |
44,320 |
|
|
$ |
67,717 |
|
|
$ |
(25,539 |
) |
|
$ |
2,055 |
|
|
$ |
125,985 |
|
|
$ |
178,180 |
|
Income tax expense (benefit) |
|
|
13,807 |
|
|
|
24,716 |
|
|
|
(4,045 |
) |
|
|
5,603 |
|
|
|
37,312 |
|
|
|
57,838 |
|
Other (income) expense, net (2) |
|
|
(2,261 |
) |
|
|
(722 |
) |
|
|
(3,093 |
) |
|
|
(1,410 |
) |
|
|
(1,767 |
) |
|
|
6,348 |
|
Loss on debt extinguishment |
|
|
13,982 |
|
|
|
17,533 |
|
|
|
13,982 |
|
|
|
17,533 |
|
|
|
13,982 |
|
|
|
17,533 |
|
Interest expense, net |
|
|
43,495 |
|
|
|
35,978 |
|
|
|
79,797 |
|
|
|
73,508 |
|
|
|
147,879 |
|
|
|
149,476 |
|
Loss (gain) on disposal of assets |
|
|
2,550 |
|
|
|
98 |
|
|
|
4,985 |
|
|
|
(2,002 |
) |
|
|
10,914 |
|
|
|
8,896 |
|
Depreciation and amortization |
|
|
28,910 |
|
|
|
27,537 |
|
|
|
58,024 |
|
|
|
56,586 |
|
|
|
118,562 |
|
|
|
114,135 |
|
Loss on impairment of park assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,943 |
|
|
|
— |
|
Stock-based compensation |
|
|
2,179 |
|
|
|
3,223 |
|
|
|
5,493 |
|
|
|
7,448 |
|
|
|
5,718 |
|
|
|
19,272 |
|
Self-insurance reserve adjustment (3) |
|
|
37,558 |
|
|
|
— |
|
|
|
37,558 |
|
|
|
— |
|
|
|
37,558 |
|
|
|
— |
|
Modified EBITDA (4) |
|
$ |
184,540 |
|
|
$ |
176,080 |
|
|
$ |
167,162 |
|
|
$ |
159,321 |
|
|
$ |
513,086 |
|
|
$ |
551,678 |
|
Third party interest in EBITDA of certain operations (5) |
|
|
(23,766 |
) |
|
|
(22,325 |
) |
|
|
(23,766 |
) |
|
|
(22,325 |
) |
|
|
(46,092 |
) |
|
|
(43,208 |
) |
Adjusted EBITDA (4) |
|
$ |
160,774 |
|
|
$ |
153,755 |
|
|
$ |
143,396 |
|
|
$ |
136,996 |
|
|
$ |
466,994 |
|
|
$ |
508,470 |
|
Capital expenditures, net of property insurance recovery (6) |
|
|
(42,034 |
) |
|
|
(26,352 |
) |
|
|
(67,041 |
) |
|
|
(55,342 |
) |
|
|
(123,208 |
) |
|
|
(134,834 |
) |
Adjusted EBITDA minus CAPEX (4) |
|
$ |
118,740 |
|
|
$ |
127,403 |
|
|
$ |
76,355 |
|
|
$ |
81,654 |
|
|
$ |
343,786 |
|
|
$ |
373,636 |
|
(2) |
Amounts recorded as “Other (income) expense, net” include certain non-recurring costs incurred in conjunction with changes made to our organizational structure in December 2021. During 2023, we reclassified the net pension-related expense (benefit) to other (income) expense, net. in our consolidated statements of operations. This reclassification has been reflected in all periods presented. As a result of this reclassification, Adjusted EBITDA for the three-month, six-month and twelve-month periods ended July 3, 2022, declined by |
|
(3) |
Amount relates to an adjustment to our self-insurance reserves resulting from a change in accounting estimate that increased our ultimate loss indications on both identified claims and incurred but not reported claims, as discussed in more detail above in our review of second quarter 2023 results. We have excluded this adjustment from our reported Adjusted EBITDA because we believe (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 our historical results; and (iii) excluding it provides more meaningful comparisons to other companies in our industry. |
|
(4) |
Modified EBITDA,” a non-GAAP measure, is defined as our 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. Management uses non-GAAP measures for budgeting purposes, measuring actual results, allocating resources and in determining employee incentive compensation. We believe that Modified EBITDA provides relevant and useful information for investors because it assists in comparing our operating performance on a consistent basis, makes it easier to compare our results with those of other companies in our industry as it most closely ties our performance to that of our competitors from a park-level perspective and allows investors to review performance in the same manner as our management. |
|
|
"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). Adjusted EBITDA is approximately equal to “Parent Consolidated Adjusted EBITDA” as defined in our secured credit agreement, except that Parent Consolidated Adjusted EBITDA excludes Adjusted EBITDA from equity investees that is not distributed to us in cash on a net basis and has limitations on the amounts of certain expenses that are excluded from the calculation. Adjusted EBITDA as defined herein may differ from similarly titled measures presented by other companies. Our board of directors and management use Adjusted EBITDA to measure our performance and our current management incentive compensation plans are based largely on Adjusted EBITDA. We believe that Adjusted EBITDA is frequently used by all our sell-side analysts and most investors as their primary measure of our performance in the evaluation of companies in our industry. In addition, the instruments governing our indebtedness use Adjusted EBITDA to measure our compliance with certain covenants and, in certain circumstances, our ability to make certain borrowings. Adjusted EBITDA, as computed by us, may not be comparable to similar metrics used by other companies in our industry. |
|
|
“Adjusted EBITDA minus capex,” a non-GAAP measure, is defined as Adjusted EBITDA minus capital expenditures, net of property insurance recoveries. Adjusted EBITDA minus capex as defined herein may differ from similarly titled measures presented by other companies. Our board of directors and management use Adjusted EBITDA minus capex to measure our performance and our current management incentive compensation plans are based largely on Adjusted EBITDA minus capex. We believe that Adjusted EBITDA minus capex is frequently used by analysts and investors as a measure of our performance. Adjusted EBITDA minus capex, as computed by us, may not be comparable to similar metrics used by other companies in our industry. |
|
(5) |
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. |
|
(6) |
Capital expenditures, net of property insurance recovery (“CAPEX”) represents cash spent on property, plant and equipment, net of property insurance recoveries. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230810463189/en/
Evan Bertrand
Vice President, Investor Relations and Treasurer
+1-972-595-5180
investors@sftp.com
Source: Six Flags Entertainment Corporation
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