Six Flags Announces Fourth Quarter and Full Year 2020 Performance
Six Flags Entertainment Corporation (NYSE: SIX) reported a significant decline in revenue and earnings for Q4 and full year 2020, primarily due to COVID-19 restrictions. Total revenue dropped to $109 million in Q4, down from $261 million in 2019, marking a 58% decline. Full year revenue fell 76% to $357 million. Attendance was down 79% for the year, with only 6.8 million guests compared to 32.8 million in 2019. Despite losses, the company noted improved guest spending per capita and ongoing efforts to modernize operations and enhance guest experiences, anticipating benefits in 2021.
- Increased guest spending per capita in Q4 2020 to $47, up 17% from $40.22 in Q4 2019.
- Attendance showed improvement in Q4 2020, reaching 51% of the prior year levels at open parks.
- Total revenue decreased by 76% for the full year 2020, dropping from $1.49 billion to $357 million.
- Net loss for full year 2020 was $423 million, compared to a $179 million gain in 2019.
Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company and the largest operator of waterparks in North America, today reported a decline in revenue and earnings, as anticipated, for fourth quarter and full year 2020 as compared to the same periods in 2019. Because of limited park operating schedules and capacity restrictions caused by the COVID-19 pandemic, total attendance for full year 2020 declined
Attendance trends in 2020 continued to improve over the course of the year, increasing from
“I am extremely proud of the way our team members responded in a challenging year. They found innovative ways to safely operate our parks and entertain millions of guests in the face of the pandemic,” said Mike Spanos, President and CEO. “Our focus is to open all of our parks for the 2021 season and be prepared to satisfy the pent-up demand we anticipate for outdoor entertainment close to home.”
“We continue to make progress on our transformation plan to modernize the guest experience and operate as a more efficient company, enabled by technology. I feel confident that we will see significant benefits beginning in 2021,” continued Spanos. “We expect the transformation to result in meaningful profit growth once our plan is fully executed and we are back in a more normal operating environment.”
Fourth Quarter 2020 Highlights
-
Attendance was 2.2 million guests, a decline of 4.0 million guests from fourth quarter 2019. This represented
35% of prior year total attendance, and approximately51% of prior year attendance at the parks that were open, relative to the comparable prior year period. A schedule of comparable operations for the fourth quarter is set forth in Schedule A of this release. -
Total Revenue was
$109 million , a decline of$152 million from fourth quarter 2019. -
Net loss was
$86 million , a decline of$75 million from fourth quarter 2019. -
Adjusted EBITDA2 was a loss of
$39 million , including$19 million of litigation reserve increases, a decline of$111 million from fourth quarter 2019. -
Net cash outflow for the quarter was
$56 million , an average of$19 million per month.
Full Year 2020 Highlights
- Attendance was 6.8 million guests, a decline of 26.0 million guests from full year 2019.
-
Total Revenue was
$357 million , a decline of$1,131 million from full year 2019. -
Net loss was
$423 million , a decline of$602 million from full year 2019. -
Adjusted EBITDA was a loss of
$231 million , a decline of$758 million from full year 2019. -
Net cash outflow for the year, excluding the net impact of financing raised, dividends paid, and pre-payment of debt, was
$331 million , an average of$28 million per month.
Fourth Quarter 2020 Results
|
|
|
|
|
|
|
|
|
|
(In millions, except per share and per capita amounts) |
|
Three Months Ended |
|
|
|||||
|
|
December 31, 2020 |
|
December 31, 2019 |
|
Percentage Change (%) |
|||
Total revenues |
|
$ |
109 |
|
$ |
261 |
|
(58) |
% |
Net loss attributable to Six Flags Entertainment Corporation |
|
$ |
(86) |
|
$ |
(11) |
|
N/M |
|
Loss per share, diluted |
|
$ |
(1.00) |
|
$ |
(0.13) |
|
N/M |
|
Adjusted EBITDA |
|
$ |
(39) |
|
$ |
72 |
|
N/M |
|
Attendance |
|
|
2.2 |
|
|
6.1 |
|
(65) |
% |
Total guest spending per capita |
|
$ |
47.00 |
|
$ |
40.22 |
|
17 |
% |
Admissions spending per capita |
|
$ |
27.28 |
|
$ |
23.60 |
|
16 |
% |
In-park spending per capita |
|
$ |
19.72 |
|
$ |
16.62 |
|
19 |
% |
In fourth quarter 2020, the company generated
The decrease in attendance was due to the temporary pandemic-related limitations on park operations at several of the company’s parks, and capacity restrictions at the parks that were open. Four parks provided drive-through or walk-through only experiences for the holiday season, and the company’s parks in Mexico were open for only a portion of the quarter.
The decrease in revenue was primarily a result of decreased attendance, offset by improved guest spending per capita. The decrease in revenue was also attributable to an
The improvement in admissions spending per capita for fourth quarter 2020 was primarily due to recurring monthly membership revenue from members who retained their memberships following the initial 12-month commitment period, and an increase in the mix of single-day guests. In-park spending per capita in fourth quarter 2020 increased due to a higher mix of single-day guests, who tend to spend more per visit. In addition, revenue from recurring monthly all season membership products, such as the all season dining pass, from members who retained their memberships following the initial 12-month commitment period contributed to the in-park spending per capita increase.
Full Year 2020 Results
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|
|
(In millions, except per share and per capita amounts) |
|
Year Ended |
|
|
|||||
|
|
December 31, 2020 |
|
December 31, 2019 |
|
Percentage Change (%) |
|||
Total revenues |
|
$ |
357 |
|
$ |
1,488 |
|
(76) |
% |
Net (loss) income attributable to Six Flags Entertainment Corporation |
|
$ |
(423) |
|
$ |
179 |
|
N/M |
|
(Loss) earnings per share, diluted |
|
$ |
(4.99) |
|
$ |
2.11 |
|
N/M |
|
Adjusted EBITDA |
|
$ |
(231) |
|
$ |
527 |
|
N/M |
|
Attendance |
|
|
6.8 |
|
|
32.8 |
|
(79) |
% |
Total guest spending per capita |
|
$ |
48.45 |
|
$ |
42.37 |
|
14 |
% |
Admissions spending per capita |
|
$ |
29.85 |
|
$ |
24.86 |
|
20 |
% |
In-park spending per capita |
|
$ |
18.60 |
|
$ |
17.51 |
|
6 |
% |
For full year 2020, the company generated revenue of
The decrease in attendance was primarily due to the temporary pandemic-related suspension of park operations beginning in March 2020, and limited attendance at the parks that were open. The company resumed operations at many of its parks on a staggered basis near the end of second quarter 2020 using a cautious and phased approach, which included limiting attendance to encourage social distancing. In fourth quarter 2020, four parks provided drive-through or walk-through only experiences for the holiday season, and the company’s parks in Mexico were open for only a portion of the quarter.
The decrease in revenue was primarily the result of the decrease in attendance, offset by improved guest spending per capita. The decrease in revenue was also attributable to a
The improvement in admissions spending per capita for 2020 was primarily due to recurring monthly membership revenue from members who retained their memberships following the initial 12-month commitment period, and an increase in the mix of single-day guests. In-park spending per capita in 2020 increased due to a higher mix of single-day guests, who tend to spend more per visit. In addition, revenue from recurring monthly all season membership products, such as the all season dining pass, from members who retained their memberships following the initial 12-month commitment period contributed to the in-park spending per capita increase. These increases were partially offset by lower total guest spending per capita from attendance at the company’s drive-through Safari and drive-through Holiday in the Park events in California, Illinois and Massachusetts, which offered limited in-park spending opportunities.
Active Pass Base
The company extended the use of all 2020 season passes through the end of 2021 and offered members the option to pause payments on their current membership through spring 2021. The company is also offering higher-tiered benefits to members that elect to maintain their current payment schedule. As anticipated, the company sold significantly fewer season passes and memberships while many of its parks remained closed, compared to the same period in 2019. As a result, the Active Pass Base, which includes all members and season pass holders, decreased
Deferred revenue was
Balance Sheet and Liquidity
As of December 31, 2020, the company had cash on hand of
The company estimates that its net cash outflow in the first quarter of 2021 will be, on average,
For full year 2020, the company invested
On August 26, 2020, the company further amended its credit facility to, among other benefits, suspend testing of its senior secured leverage ratio financial maintenance covenant through December 31, 2021. The company’s lenders also approved modified testing of its senior secured leverage ratio financial maintenance covenant through December 31, 2022. Through the duration of the amendment period ending December 31, 2022, the company agreed to suspend paying dividends and repurchasing its common stock, and to maintain minimum liquidity of
Transformation Plan Update
The company commenced a major transformation plan in March 2020 to reinvigorate long-term profit growth, which includes revenue and cost initiatives. The company is focused on improving and modernizing the guest experience through technology, continuously improving operational efficiency, and driving financial excellence.
As previously announced, executing the transformation will require one-time charges of approximately
(Amounts in thousands) |
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
June 30, 2020 |
|
September 30, 2020 |
|
December 31, 2020 |
|
December 31, 2020 |
||||
Amounts included in “Other expense, net” |
|
|
|
|
|
|
|
|
||||
Consultant costs |
|
$ |
6,155 |
|
$ |
12,145 |
|
$ |
2,160 |
|
$ |
20,460 |
Employee termination costs |
|
|
— |
|
|
1,555 |
|
|
2,807 |
|
|
4,362 |
Amounts included in “Loss on disposal of assets” |
|
|
|
|
|
|
|
|
||||
Ride / asset write-offs |
|
|
— |
|
|
9,351 |
|
|
403 |
|
|
9,754 |
Total transformation costs |
|
$ |
6,155 |
|
$ |
23,051 |
|
$ |
5,370 |
|
$ |
34,576 |
As previously communicated, the company expects its transformation plan to generate an incremental
Change in Reporting Calendar
As previously announced on December 28, 2020, the company elected to change the method of determining its fiscal quarters and fiscal years, such that each fiscal quarter (beginning with the fiscal quarter commencing January 1, 2021) shall consist of thirteen consecutive weeks ending on a Sunday5 and each fiscal year (beginning with the fiscal year commencing January 1, 2021) shall consist of 52 weeks or 53 weeks, as applicable, and shall end on the Sunday closest to December 31. The company made the change to align the company’s reporting calendar with how the company operates its business and to improve comparability across periods. A summary of the comparable reporting periods is set forth below.
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
2019 |
|
January 1- March 31 |
|
April 1 – June 30 |
|
July 1 – September 30 |
|
October 1 – December 31, 2019 |
2020 |
|
January 1- March 31 |
|
April 1 – June 30 |
|
July 1 – September 30 |
|
October 1 – December 31, 2020 |
2021 |
|
January 1 – April 4 |
|
April 5 – July 4 |
|
July 5 – October 3 |
|
October 4 – January 2, 2022 |
The first quarter of 2021 will have four additional days compared to the first quarter of 2020; however, because the company’s parks were not operating in April 2020, this difference will not have a material effect on the comparability between periods.
Conference Call
At 7:00 a.m. Central Time today, February 24, 2021, the company will host a conference call to discuss its fourth quarter and full year 2020 financial performance. The call is accessible through either the Six Flags Investor Relations website at investors.sixflags.com or by dialing 1-855-889-1976 in the United States or +1-937-641-0558 outside the United States and requesting the Six Flags earnings call. A replay of the call will be available through March 3, 2021 by dialing 1-855-859-2056 or +1-404-537-3406 and requesting conference ID 2195816.
About Six Flags Entertainment Corporation
Six Flags Entertainment Corporation is the world’s largest regional theme park company and the largest operator of waterparks in North America, with 26 parks across the United States, Mexico and Canada. For 59 years, Six Flags has entertained millions of families with world-class coasters, themed rides, thrilling waterparks and unique attractions. For more information, visit www.sixflags.com
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) our ability to continue to safely and profitably operate our parks, or reopen our parks that are temporarily closed, in accordance with local health and government guidelines, (ii) expectations regarding the scope and duration of pandemic-related limitations on park operations, (iii) estimates of our net cash outflow and incremental cash interest expense in the first quarter of 2021, (iv) our ability to be cash flow positive for the last nine months of 2021 and our ability to take additional measures or further modify park operations and park schedules to reduce cash outflows, (v) the adequacy of our preparations for or the sufficiency of our liquidity, (vi) expectations regarding future actions and initiatives to increase profitability, including expectations regarding the anticipated focus, timing, costs, benefits and results of our transformation plan, as well as our incremental annual run-rate Adjusted EBITDA and anticipated earnings baseline resulting from the plan, (vii) our ability to significantly improve our financial performance and the guest experience, and (viii) expectations regarding pent-up demand for outdoor entertainment, including for our parks. 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 the novel coronavirus (COVID-19), 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, including with respect to business operations, safety protocols and public gatherings; recall of food, toys and other retail products sold at our parks; accidents or contagious disease outbreaks occurring at our parks or other parks in the industry and adverse publicity concerning our parks or other parks in the industry; availability of commercially reasonable insurance policies at reasonable rates; inability to achieve desired improvements and our financial performance targets set forth in our aspirational goals; adverse weather conditions such as excess heat or cold, rain and storms; general financial and credit market conditions, including our ability to access credit or raise capital; economic conditions (including customer spending patterns); changes in public and consumer tastes; construction delays in capital improvements or ride downtime; competition with other theme parks, waterparks and entertainment alternatives; dependence on a seasonal workforce; unionization activities and labor disputes; laws and regulations affecting labor and employee benefit costs, including increases in state and federally mandated minimum wages, and healthcare reform; environmental laws and regulations; laws and regulations affecting corporate taxation; pending, threatened or future legal proceedings and the significant expenses associated with litigation; cybersecurity risks and other factors could cause actual results to differ materially from the company’s expectations, including the risk factors or uncertainties listed from time to time in the company’s filings with the Securities and Exchange Commission (the “SEC”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we make no assurance that such expectations will be realized and actual results could vary materially. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in our Annual and Quarterly Reports on Forms 10-K and 10-Q, and our other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investors.sixflags.com and on the SEC’s website at www.sec.gov.
Footnotes
(1) |
Comparable operations in the third quarter exclude attendance from Six Flags Discovery Kingdom and Six Flags Great America, as these parks had modified operations with minimal attendance in the third quarter of 2020. Comparable operations in the fourth quarter are set forth in Schedule A of this release. |
|
(2) |
See the following financial statements and Note 3 to those financial statements for a discussion of Adjusted EBITDA (a non-GAAP financial measure) and its reconciliation to net (loss) income. |
|
(3) |
Projected net monthly cash outflow reflects the company’s current estimate of reduced revenues, ongoing park and operating costs, capital expenditures, contractual obligations of the company’s parks that are less than wholly-owned (Six Flags Over Texas, Six Flags Over Georgia and Six Flags White Water Atlanta), federal and state income tax obligations, debt amortization and interest, including the most recent financing transactions, and the costs associated with the company’s transformation initiative, assuming limited operations at the parks currently open. The company’s ability to predict the impact of the COVID-19 global pandemic on its brands and future prospects is limited. In addition, the magnitude, duration and speed of the pandemic is uncertain. As a consequence, the company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with certainty. |
|
(4) |
Information reconciling forward-looking Adjusted EBITDA to net (loss) income is unavailable to the company without unreasonable effort. The company is not able to provide reconciliations of Adjusted EBITDA to net (loss) income because certain items required for such reconciliations are outside of the company’s control and/or cannot be reasonably predicted, such as depreciation, amortization and the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the company without unreasonable effort. The company provides a range for its Adjusted EBITDA outlook that it believes will be achieved; however, it cannot accurately predict all the components of the Adjusted EBITDA calculation. |
|
(5) |
When a fiscal year contains 53 weeks, approximately every 5 to 6 years, the fourth quarter of that fiscal year will contain 14 weeks. |
Schedule A Comparable Operations for Fourth Quarter 2020 |
||
Name of Park |
City |
Comparable Period1 |
Six Flags Over Texas |
Arlington, TX |
10/1 – 12/31
|
Six Flags Over Georgia |
Austell, GA |
|
Six Flags St. Louis |
Eureka, MO |
|
Six Flags Great Adventure2 |
Jackson, NJ |
|
Six Flags America |
Largo, MD |
|
Frontier City |
Oklahoma City, OK |
|
Six Flags Fiesta Texas3 |
San Antonio, TX |
|
Hurricane Harbor Oaxtepec |
Oaxtepec, Mexico |
10/3 – 12/13 |
Six Flags Mexico |
Mexico City, Mexico |
10/23 – 12/18 |
Holiday In The Park Lights Only – No Rides |
||
Six Flags Magic Mountain |
Valencia, CA |
11/20 – 12/31 |
Six Flags New England |
Agawam, MA |
11/27 – 12/31 |
Six Flags Great America |
Gurnee, IL |
11/27 – 12/31 |
Six Flags Discovery Kingdom |
Vallejo, CA |
12/04 – 12/31 |
(1) |
For the parks that were open in fourth quarter 2020, the comparable period denotes the period that parks had operations in both 2019 and 2020. |
|
(2) |
In addition to regular operations, Six Flags Great Adventure operated the drive-through safari through the Thanksgiving weekend and offered a drive-through Holiday in the Park Lights event on select evenings in December. |
|
(3) |
In addition to regular operations, Six Flags Fiesta Texas offered a drive-through Holiday in the Park Lights event on select evenings in December. |
Statement of Operations Data (1) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
(Amounts in thousands, except per share data) |
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||
Park admissions |
|
$ |
58,958 |
|
$ |
144,530 |
|
$ |
202,646 |
|
$ |
815,782 |
Park food, merchandise and other |
|
|
42,635 |
|
|
101,748 |
|
|
126,306 |
|
|
574,440 |
Sponsorship, international agreements and accommodations |
|
|
7,009 |
|
|
14,722 |
|
|
27,623 |
|
|
97,361 |
Total revenues |
|
|
108,602 |
|
|
261,000 |
|
|
356,575 |
|
|
1,487,583 |
Operating expenses (excluding depreciation and amortization shown separately below) |
|
|
107,348 |
|
|
125,101 |
|
|
389,726 |
|
|
607,791 |
Selling, general and administrative expenses (excluding depreciation, amortization, and stock-based compensation shown separately below) |
|
|
31,394 |
|
|
42,290 |
|
|
127,765 |
|
|
185,920 |
Costs of products sold |
|
|
11,165 |
|
|
23,008 |
|
|
34,119 |
|
|
130,304 |
Other net periodic pension benefit |
|
|
(2,205) |
|
|
(1,038) |
|
|
(5,190) |
|
|
(4,186) |
Depreciation |
|
|
31,284 |
|
|
28,597 |
|
|
119,159 |
|
|
115,825 |
Amortization |
|
|
6 |
|
|
600 |
|
|
1,014 |
|
|
2,405 |
Stock-based compensation |
|
|
1,323 |
|
|
1,927 |
|
|
19,530 |
|
|
13,274 |
(Gain) loss on disposal of assets |
|
|
(2,769) |
|
|
(943) |
|
|
7,689 |
|
|
2,162 |
Interest expense, net |
|
|
38,127 |
|
|
27,046 |
|
|
154,723 |
|
|
113,302 |
Loss on debt extinguishment |
|
|
— |
|
|
253 |
|
|
6,106 |
|
|
6,484 |
Other expense, net |
|
|
5,711 |
|
|
4,016 |
|
|
24,993 |
|
|
2,542 |
(Loss) income before income taxes |
|
|
(112,782) |
|
|
10,143 |
|
|
(523,059) |
|
|
311,760 |
Income tax (benefit) expense |
|
|
(27,014) |
|
|
21,298 |
|
|
(140,967) |
|
|
91,942 |
Net (loss) income |
|
|
(85,768) |
|
|
(11,155) |
|
|
(382,092) |
|
|
219,818 |
Less: Net income attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(41,288) |
|
|
(40,753) |
Net (loss) income attributable to Six Flags Entertainment Corporation |
|
$ |
(85,768) |
|
$ |
(11,155) |
|
$ |
(423,380) |
|
$ |
179,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
85,008 |
|
|
84,560 |
|
|
84,800 |
|
|
84,348 |
Diluted: |
|
|
85,008 |
|
|
84,560 |
|
|
84,800 |
|
|
84,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per average common share outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
$ |
(1.00) |
|
$ |
(0.13) |
|
$ |
(4.99) |
|
$ |
2.12 |
Diluted: |
|
$ |
(1.00) |
|
$ |
(0.13) |
|
$ |
(4.99) |
|
$ |
2.11 |
|
|
|
|
|
|
|
Balance Sheet Data |
||||||
|
|
|
|
|
|
|
|
|
As of |
||||
(Amounts in thousands) |
|
December 31,
|
|
December 31,
|
||
Cash and cash equivalents |
|
$ |
157,760 |
|
$ |
174,179 |
Total assets |
|
|
2,772,691 |
|
|
2,882,540 |
|
|
|
|
|
|
|
Deferred revenue |
|
|
205,125 |
|
|
144,040 |
Current portion of long-term debt |
|
|
— |
|
|
8,000 |
Long-term debt |
|
|
2,622,641 |
|
|
2,266,884 |
|
|
|
|
|
|
|
Redeemable noncontrolling interests |
|
|
523,376 |
|
|
529,258 |
|
|
|
|
|
|
|
Total stockholders' deficit |
|
|
(1,158,547) |
|
|
(716,118) |
|
|
|
|
|
|
|
Shares outstanding |
|
|
85,076 |
|
|
84,634 |
Definition and Reconciliation of Non-GAAP Financial Measures
We prepare our financial statements in accordance with United States generally accepted accounting principles ("GAAP"). In our press release, we make reference to non-GAAP financial measures including Modified EBITDA, Adjusted EBITDA and Adjusted Free Cash Flow. The definition for each of these non-GAAP financial measures is set forth below in the notes to the reconciliation tables. We believe that these non-GAAP financial measures provide important and useful information for investors to facilitate a comparison of our operating performance on a consistent basis from period to period and make it easier to compare our results with those of other companies in our industry. We use these measures for internal planning and forecasting purposes, to evaluate ongoing operations and our performance generally, and in our annual and long-term incentive plans. By providing these measures, we provide our investors with the ability to review our performance in the same manner as our management.
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 table sets forth a reconciliation of net (loss) income to Adjusted EBITDA for the three months and year ended December 31, 2020 and December 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
(Amounts in thousands, except per share data) |
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||
Net (loss) income |
|
$ |
(85,768) |
|
$ |
(11,155) |
|
$ |
(382,092) |
|
$ |
219,818 |
Income tax (benefit) expense |
|
|
(27,014) |
|
|
21,298 |
|
|
(140,967) |
|
|
91,942 |
Other expense, net (2) |
|
|
5,711 |
|
|
4,016 |
|
|
24,993 |
|
|
2,542 |
Loss on debt extinguishment |
|
|
— |
|
|
253 |
|
|
6,106 |
|
|
6,484 |
Interest expense, net |
|
|
38,127 |
|
|
27,046 |
|
|
154,723 |
|
|
113,302 |
(Gain) loss on disposal of assets |
|
|
(2,769) |
|
|
(943) |
|
|
7,689 |
|
|
2,162 |
Amortization |
|
|
6 |
|
|
600 |
|
|
1,014 |
|
|
2,405 |
Depreciation |
|
|
31,284 |
|
|
28,597 |
|
|
119,159 |
|
|
115,825 |
Stock-based compensation |
|
|
1,323 |
|
|
1,927 |
|
|
19,530 |
|
|
13,274 |
Modified EBITDA (3) |
|
|
(39,100) |
|
|
71,639 |
|
|
(189,845) |
|
|
567,754 |
Third party interest in EBITDA of certain operations (4) |
|
|
— |
|
|
— |
|
|
(41,288) |
|
|
(40,753) |
Adjusted EBITDA (3) |
|
$ |
(39,100) |
|
$ |
71,639 |
|
$ |
(231,133) |
|
$ |
527,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding |
|
|
85,008 |
|
|
84,560 |
|
|
84,800 |
|
|
84,348 |
The following table sets forth a reconciliation of net cash (used in) provided by operating activities to Adjusted Free Cash Flow for the three months and year ended December 31, 2020 and December 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
(Amounts in thousands, except per share data) |
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||
Net cash (used in) provided by operating activities |
|
$ |
(36,916) |
|
$ |
69,708 |
|
$ |
(190,880) |
|
$ |
410,573 |
Changes in working capital |
|
|
(48,542) |
|
|
(25,673) |
|
|
(175,938) |
|
|
28,739 |
Interest expense, net |
|
|
38,127 |
|
|
27,046 |
|
|
154,723 |
|
|
113,302 |
Income tax (benefit) expense |
|
|
(27,014) |
|
|
21,298 |
|
|
(140,967) |
|
|
91,942 |
Amortization of debt issuance costs |
|
|
(1,977) |
|
|
(860) |
|
|
(6,535) |
|
|
(3,563) |
Other expense, net |
|
|
17,278 |
|
|
7,875 |
|
|
36,710 |
|
|
6,457 |
Interest accretion on notes payable |
|
|
(276) |
|
|
(322) |
|
|
(1,157) |
|
|
(1,310) |
Changes in deferred income taxes |
|
|
20,220 |
|
|
(27,433) |
|
|
134,199 |
|
|
(78,386) |
Third party interest in EBITDA of certain operations (4) |
|
|
— |
|
|
— |
|
|
(41,288) |
|
|
(40,753) |
Capital expenditures, net of property insurance recovery |
|
|
(7,918) |
|
|
(18,151) |
|
|
(98,364) |
|
|
(140,176) |
Cash paid for interest, net |
|
|
(19,847) |
|
|
(20,553) |
|
|
(98,551) |
|
|
(112,997) |
Cash taxes (5) |
|
|
(1,321) |
|
|
(3,256) |
|
|
(5,917) |
|
|
(28,209) |
Adjusted Free Cash Flow (6) |
|
$ |
(68,186) |
|
$ |
29,679 |
|
$ |
(433,965) |
|
$ |
245,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic: |
|
|
85,008 |
|
|
84,560 |
|
|
84,800 |
|
|
84,348 |
(1) |
Revenues and expenses of international operations are converted into U.S. dollars on an average basis as provided by GAAP. |
|
(2)
|
Amounts recorded as “Other expense (income), net” include amounts related to our transformation initiative, including consulting costs of |
|
(3)
|
“Modified EBITDA”, a non-GAAP measure, is defined as our consolidated (loss) income from continuing operations: excluding 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, and fresh start accounting valuation adjustments. 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 Adjusted 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. |
||
(4) |
Represents interests of third parties in the Adjusted EBITDA of Six Flags Over Georgia, Six Flags Over Texas and Six Flags White Water Atlanta. |
|
(5) |
Cash taxes represents statutory taxes paid, primarily driven by Mexico and state level obligations. Based on our current federal net operating loss carryforwards and reduced operations due to the COVID-19 pandemic, we anticipate paying minimal federal income taxes in 2020 and do not anticipate becoming a full cash taxpayer until 2024. During the years 2021 through 2024, we have significant federal operating loss carryforwards which will offset the majority of our taxable income. |
|
(6) |
Management uses Adjusted Free Cash Flow, a non-GAAP measure, in its financial and operational decision making processes, for internal reporting, and as part of its forecasting and budgeting processes as it provides additional transparency of our operations. Management believes that Adjusted Free Cash Flow is useful information to investors regarding the amount of cash that we estimate that we will generate from operations over a certain period. Management believes the presentation of this measure will enhance the investors' ability to analyze trends in the business and evaluate the Company's underlying performance relative to other companies in the industry. A reconciliation from net cash provided by (used in) operating activities to Adjusted Free Cash Flow is presented in the table above. Adjusted Free Cash Flow as presented herein may differ from similarly titled measures presented by other companies. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210224005164/en/
FAQ
What were the financial results for Six Flags in Q4 2020?
How did Six Flags' attendance change in 2020?
What is Six Flags' outlook for 2021?
How much did guest spending per capita increase for Six Flags in 2020?
What did Six Flags report about its cash flow and liquidity?
