- Merger integration proceeding well with early strategic
initiatives already implemented to improve the guest experience and
provide consistency across park operations
Six Flags Entertainment Corporation (NYSE: FUN), the largest
regional amusement park operator in North America, today announced
financial results for standalone legacy Cedar Fair and standalone
legacy Six Flags for the quarter ended June 30, 2024. The merger of
legacy Cedar Fair and legacy Six Flags occurred on July 1, 2024,
after the second quarter close.
Legacy Cedar Fair Second Quarter
Highlights(1)
- 53 net additional operating days compared to Q2-2023.
- Net revenues totaled a record $572 million, an increase of 14%,
or $71 million.
- Including $11 million of merger and integration-related costs,
net income totaled $56 million, an increase of 4%, or $2 million,
and net income margin, calculated as net income divided by net
revenues, was 9.7%.
- Legacy Cedar Fair Adjusted EBITDA(2) totaled $205 million, an
increase of 36%, or $54 million, and Legacy Cedar Fair Adjusted
EBITDA Margin(2) was 35.9%.
- Attendance totaled a record 8.6 million guests, an increase of
17%, or 1.2 million guests.
- In-park per capita spending(3) was $59.54, a decrease of
3%.
- Out-of-park revenues(3) totaled a record $73 million, an
increase of 17%, or $11 million.
Legacy Six Flags Second Quarter
Highlights(a)
- 58 net fewer operating days compared to Q2-2023.
- Total revenue was $438 million, a decrease of 1%, or $5
million.
- Including $1 million of merger-related costs, net income
attributable to legacy Six Flags totaled $34 million, an increase
of 66%, or $14 million, and net income margin, was 7.8%.
- Legacy Six Flags Adjusted EBITDA(b) totaled $138 million, a
decrease of 14%, or $23 million, and Legacy Six Flags Modified
EBITDA Margin(b) was 36.9%.
- Attendance totaled 6.9 million guests, a decrease of 2%, or
155,000 guests.
- Total guest spending per capita(c) was $61.22, an increase of
1%.
- Admissions revenue per capita(c) was $32.99, a decrease of
2%.
- In-park spending per capita(c) was $28.23, an increase of
5%.
Management Commentary
“I am extremely pleased with the second quarter performance of
the legacy Cedar Fair portfolio, which produced record levels of
attendance and net revenues, and generated a 570-basis-point lift
in Legacy Cedar Fair Adjusted EBITDA Margin(2) in the quarter,”
said Six Flags Entertainment Corporation President and CEO Richard
A. Zimmerman. “This performance is a continuation of the strong
momentum we built over the past three quarters and underscores the
strong guest demand driven by the successful execution of our
strategic plans and initiatives. While weather conditions have
negatively impacted demand trends in July, we are confident that
the combined portfolio is well positioned to deliver a strong
full-year performance in 2024.”
Zimmerman continued, “Since completing the merger on July 1, we
have quickly implemented initial integration plans to start to
realize the meaningful synergy and growth opportunities now
available to us. The merits and strategic rationale of the merger
remain clear, and we are focused on pursuing its benefits and
unlocking the full potential of our combined organization. We have
a highly diversified footprint with geographic scale never before
seen in the regional amusement parks space. Our balance sheet is
strong with ample liquidity, and we are well positioned to deliver
value to our shareholders and customers. In the near term, we are
focused on advancing our strategic initiatives and instilling our
core operating principles across our portfolio to tap into the
tremendous potential we believe exists in the combination of these
iconic portfolios of assets.”
Legacy Cedar Fair Results for Second
Quarter 2024 to Second Quarter 2023
There were 789 operating days in the second quarter of 2024
compared with 736 operating days in the second quarter of 2023. The
increase was primarily related to a fiscal calendar shift that
resulted in 86 additional operating days, which was somewhat offset
by fewer planned operating days during the quarter at some of the
seasonal parks.
For the quarter ended June 30, 2024, net revenues for legacy
Cedar Fair totaled $572 million on attendance of 8.6 million
guests, compared with net revenues of $501 million on attendance of
7.4 million guests in the second quarter of 2023. The increase in
net revenues reflects the impact of a 17%, or 1.2 million-visit,
increase in attendance and a 17%, or $11 million, increase in
out-of-park revenues(3), offset in part by the impact of a 3%, or
$1.92, decrease in in-park per capita spending(3). The increase in
attendance during the current quarter was primarily driven by the
calendar shift in the current quarter, higher season pass sales,
and increased general demand at the parks with significant
marketable capital projects this year. The increase in out-of-park
revenues(3) reflects the impact of the calendar shift in the
current quarter, as well as additional sponsorship revenues and
increased revenues from the Knott’s Hotel following a recent
renovation. The decrease in second quarter in-park per capita
spending(3) was primarily attributable to a planned decrease in
season pass pricing and a higher mix of season pass visitation,
partially offset by improved in-park per capita spending(3) for
food and beverage and extra charge attractions.
Operating costs and expenses in the second quarter of 2024
increased $35 million compared with the second quarter last year.
The increase in operating costs and expenses was the result of a
$26 million increase in SG&A expenses, a $5 million increase in
operating expenses, and a $5 million increase in cost of goods
sold. The increase in SG&A expenses was primarily attributable
to $11 million of merger and integration-related costs, an increase
in equity-based compensation expense as a result of improved
performance expectations, and the impact of the fiscal calendar
shift in the current quarter. The increase in operating expenses
was entirely due to the calendar shift. Meanwhile, cost of goods
sold as a percentage of food, merchandise and games revenue
decreased 170 basis points compared with last year’s second
quarter, the result of both planned cost reductions and higher
pricing.
Depreciation and amortization expense in the second quarter of
2024 totaled $57 million, up $9 million compared to the second
quarter of 2023, as a result of the additional planned operating
days in the current period. There was also a loss on
impairment/retirement of fixed assets of $4 million during the
second quarter of 2024, compared with a loss of $7 million in the
second quarter of 2023.
After the items noted above, 2024 second quarter operating
income for legacy Cedar Fair was $123 million compared with $94
million in last year’s second quarter.
Interest expense for the quarter totaled $40 million, an
increase of $3 million from the prior-year second quarter, as a
result of the refinancing events during the current period. The
refinancing events also resulted in a loss on early debt
extinguishment of $6 million during the period. During the second
quarter, legacy Cedar Fair also recognized a $2 million net charge
to earnings for foreign currency gains and losses related to the
remeasurement of U.S. dollar denominated notes to the Canadian
entity’s functional currency, compared with an $11 million net
benefit to earnings in the comparable period in 2023.
During the second quarter of 2024, legacy Cedar Fair recorded a
provision for taxes of $20 million to account for publicly traded
partnership taxes and income taxes on its corporate subsidiaries,
compared to a provision for taxes of $14 million in the second
quarter of 2023. The increase in the provision for taxes was
primarily attributable to higher pretax income from legacy Cedar
Fair’s taxable subsidiaries in the current period.
After the items above, net income for legacy Cedar Fair was $56
million, or $1.08 per diluted LP unit, for the second quarter of
2024. This compares to a 2023 second quarter net income of $54
million, or $1.04 per diluted LP unit.
For the 2024 second quarter, Legacy Cedar Fair Adjusted
EBITDA(2), which management believes is a meaningful measure of
legacy Cedar Fair’s park-level operating results, totaled $205
million, compared with Legacy Cedar Fair Adjusted EBITDA(2) of $151
million for the second quarter of 2023. The increase in the current
year quarter was primarily the result of the increase in attendance
as a result of the fiscal calendar shift, higher season pass base,
and increased general demand associated with marketable new
product. See the attached table for a reconciliation of net income
to Legacy Cedar Fair Adjusted EBITDA(2).
Legacy Cedar Fair Results for Second
Quarter 2024 vs. Three Months Ended July 2, 2023
As previously noted, the results for the second quarter of 2024
included additional operating days due to a fiscal calendar shift.
On a same-week basis, or comparing the three months ended June 30,
2024, with the three months ended July 2, 2023, net revenues for
legacy Cedar Fair would have increased 3%, or $14 million, and
attendance would have increased 4%, or 368,000 visits. Meanwhile,
out-of-park revenues(3) would have been up 6%, or $4 million, and
in-park per capita spending(3) would have been down 3%, or $1.62.
On a same-week basis, operating costs and expenses would have
increased $15 million, or 4%, as a result of a $23 million increase
in SG&A expenses offset by a $9 million decrease in operating
expenses and flat cost of goods sold. Depreciation and amortization
would have increased by $4 million, or 8%. The fluctuations in loss
on impairment / retirement of fixed assets, interest expense, loss
on early debt extinguishment, foreign currency loss (gain), and
provision for taxes on a same-week basis were not materially
impacted by the calendar shift in the current period. After these
items, net income for legacy Cedar Fair on a same-week basis would
have decreased $29 million, or 34%.
Legacy Cedar Fair Balance Sheet and
Liquidity Highlights
Deferred revenues on June 30, 2024, including non-current
deferred revenue, totaled $289 million, compared with $283 million
of deferred revenues on June 25, 2023. The $6 million increase was
due to strong sales of advance purchase products, including sales
of season passes which were up 3%, or $8 million, through the end
of the second quarter of 2024.
As of June 30, 2024, legacy Cedar Fair had total liquidity of
approximately $245 million, including cash on hand and available
borrowings under its revolving credit facility. This compares to
$172 million of total liquidity on June 25, 2023, and $345 million
of total liquidity on Dec. 31, 2023. Legacy Cedar Fair Net debt(4)
on June 30, 2024, calculated as total debt of $2.39 billion (before
debt issuance costs) less cash and cash equivalents of $53 million,
totaled $2.34 billion.
Legacy Six Flags Results for Second
Quarter 2024 Compared to Second Quarter 2023
For the quarter ended June 30, 2024, total revenues for legacy
Six Flags were $438 million on attendance of 6.9 million guests,
compared with total revenues of $444 million on attendance of 7.1
million guests in the second quarter of 2023. The decrease in net
revenues was attributable to a 2%, or 155,000-visit, decrease in
attendance and a $9 million reduction in subscription revenue due
to the steady attrition of legacy memberships. These decreases were
partially offset by the impact of a 1%, or $0.46, increase in total
guest spending per capita(c) and $1 million of incremental
sponsorship revenue.
The decrease in second quarter attendance was primarily the
result of fewer operating days during the period, as well as
inclement weather in April and May, and the earlier timing of
Easter in 2024 which shifted attendance into the first quarter this
year. The increase in total guest spending per capita(c) was driven
by a $1.26 increase in in-park spending per capita(c) offset
partially by an $0.80 decrease in admissions revenue per capita(c).
The decrease in admissions revenue per capita(c) reflects the
impact of lower revenue from memberships beyond the initial
12-month commitment period, while the increase in in-park spending
per capita(c) was largely driven by price increases, a surcharge on
in-park transactions, and fewer in-park discounts. Excluding the
impact of memberships beyond the 12-month commitment period, total
guest spending per capita(c) for the quarter was up 3% compared to
the prior-year second quarter.
Operating costs and expenses in the second quarter of 2024
totaled $281 million, compared to operating costs and expenses of
$299 million during the second quarter of 2023. The $18 million
decrease in operating costs and expenses was the result of a $12
million increase in operating expenses, offset by a $30 million
decrease in SG&A expenses. The increase in operating costs was
primarily driven by increased seasonal labor costs resulting from
higher average seasonal wage rates and higher seasonal labor hours.
The decrease in SG&A expenses reflects the impact of a $38
million self-insurance reserve adjustment(d) made in the second
quarter of 2023, offset slightly by higher spending on advertising
during the second quarter of 2024 compared to the second quarter
last year.
Depreciation and amortization expense in the second quarter of
2024 totaled $29 million, which was comparable to the second
quarter of 2023. There was also a loss on disposal of assets of $6
million during the second quarter of 2024, compared with a loss of
$3 million in the second quarter of 2023.
After the items noted above, interest expense, loss on early
debt extinguishment, income tax expense, and other charges, 2024
second quarter net income attributable to legacy Six Flags was $34
million, or $0.40 per share, compared to net income attributable to
legacy Six Flags of $21 million, or $0.25 per share, in second
quarter last year.
Legacy Six Flags Adjusted EBITDA(b) for the second quarter of
2024, which excludes merger-related transaction costs, was $138
million, versus Legacy Six Flags Adjusted EBITDA(b) of $161 million
in the prior year second quarter, which excludes the self-insurance
reserves estimate adjustment. The decrease in the current year
quarter was primarily the result of the decreases in attendance and
subscription revenue, as well as the higher operating costs in the
quarter. See the attached table for a reconciliation of net income
to Legacy Six Flags Adjusted EBITDA(b).
Legacy Six Flags Balance Sheet and
Liquidity Highlights
Deferred revenues on June 30, 2024, totaled $191 million,
compared to deferred revenues of $177 million on July 2, 2023. The
$15 million, or 8%, increase was primarily due to improved sales of
season passes. As of June 30, 2024, legacy Six Flags had total
reported debt, including short-term borrowings and the current
portion of long-term debt, of $2.75 billion, and cash or cash
equivalents of $441 million. On July 1, 2024, Six Flags
Entertainment Corporation repaid $165 million of aggregate
principal of its 2025 senior secured notes, and on July 31, 2024,
Six Flags Entertainment Corporation repaid $57 million of aggregate
principal of legacy Six Flags’s 2024 senior unsecured notes.
July Update
Since the end of the second quarter, difficult weather
conditions, including the impacts of Hurricane Beryl and record
heat and rain across much of North America, have impacted demand at
several parks. Based on preliminary results, attendance for the
combined portfolio over the five-week period ended August 4, 2024,
totaled 10.9 million visits, which was down 3% compared with
combined attendance for the same five-week period last year. A
majority of the attendance decline can be attributed to four parks
where operations were either partially or entirely disrupted by
macro events, including a utility disruption at Michigan’s
Adventure, excessive flooding at Valleyfair, and the effects of
Hurricane Beryl on the Galveston and Houston water parks. Excluding
these four parks, attendance over the balance of the combined
portfolio was down 1%, or approximately 150,000 visits.
“Although demand over the last few weeks has been affected by
exogenous macro factors, we remain pleased with the broader
attendance trends, largely supported by the robust season pass
sales programs and strong group bookings,” said Zimmerman. “Based
on the solid attendance patterns earlier in the year, as well as
the strength of our advance purchase channels, we continue to
believe the underlying demand for the entertainment value of our
parks remains strong, which positions us well for the balance of
2024 and beyond,” concluded Zimmerman.
Conference Call
As previously announced, Six Flags Entertainment Corporation
will host a conference call with analysts starting at 10 a.m. ET
today, Aug. 8, 2024, to further discuss its recent financial
performance. Participants on the call will include Six Flags
Entertainment Corporation President and CEO Richard Zimmerman and
Chief Financial Officer Brian Witherow.
Investors and all other interested parties can access a live,
listen-only audio webcast of the call on the Six Flags
Entertainment Corporation Investors website at
https://investors.sixflags.com under the tabs Investor Information
/ Events & Presentations. Those unable to listen to the live
webcast can access a recorded version of the call on the Six Flags
Entertainment Corporation Investors website at https://
investors.sixflags.com under Investor Information / Events and
Presentations, shortly after the live call’s conclusion.
A digital recording of the conference call will be available for
replay by phone starting at approximately 1 p.m. ET on Thursday,
August 8, 2024, until 11:59 p.m. ET, Thursday, August 15, 2024. To
access the phone replay, in North America please dial (800)
770-2030; from international locations please dial +1 (609)
800-9909, followed by Conference ID 3720518.
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 U.S., Canada and Mexico. Focused on its purpose of
making people happy, Six Flags Entertainment Corporation provides
fun, immersive and memorable experiences to millions of guests
every year with world-class coasters, themed rides, thrilling water
parks, resorts and a portfolio of beloved intellectual property
including Looney Tunes®, DC Comics® and PEANUTS®.
Qualified Notice
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat
one hundred percent (100.0 percent) of Cedar Fair, L.P.’s
distributions to non-U.S. investors as being attributable to income
that is effectively connected with a United States trade or
business. Accordingly, Cedar Fair’s distributions to non-U.S.
investors are subject to federal income tax withholding at the
highest applicable effective tax rate.
Forward-Looking
Statements
Some of the statements contained in this news release (including
the “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” section) that are not historical in
nature are forward-looking statements within the meaning of the
federal securities laws, including Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, including statements as to our
expectations, beliefs, goals and strategies regarding the future.
Words such as “anticipate,” “believe,” “create,” “expect,”
“future,” “guidance,” “intend,” “plan,” “potential,” “seek,”
“synergies,” “target,” “will,” “would,” similar expressions, and
variations or negatives of these words identify forward-looking
statements. However, the absence of these words does not mean that
the statements are not forward-looking. Forward-looking statements
by their nature address matters that are, to different degrees,
uncertain. These forward-looking statements may involve current
plans, estimates, expectations and ambitions that are subject to
risks, uncertainties and assumptions that are difficult to predict,
may be beyond our control and could cause actual results to differ
materially from those described in such statements. Although we
believe that the expectations reflected in such forward-looking
statements are reasonable, we can give no assurance that such
expectations will prove to be correct, that our growth and
operational strategies will achieve the target results. Important
risk factors that may cause such a difference and could adversely
affect attendance at our parks, our future financial performance,
and/or our growth strategies, and could cause actual results to
differ materially from our expectations or otherwise to fluctuate
or decrease, include, but are not limited to: general economic,
political and market conditions; the impacts of pandemics or other
public health crises, including the effects of government responses
on people and economies; adverse weather conditions; competition
for consumer leisure time and spending; unanticipated construction
delays; changes in our capital investment plans and projects;
anticipated tax treatment, unforeseen liabilities, future capital
expenditures, revenues, expenses, earnings, synergies, economic
performance, indebtedness, financial condition, losses, future
prospects, business and management strategies for the management,
expansion and growth of the Combined Company’s operations; failure
to realize the anticipated benefits of the merger, including
difficulty in integrating the businesses of legacy Six Flags and
legacy Cedar Fair; failure to realize the expected amount and
timing of cost savings and operating synergies related to the
merger; legislative, regulatory and economic developments and
changes in laws, regulations, and policies affecting the Combined
Company; acts of terrorism or outbreak of war, hostilities, civil
unrest, and other political or security disturbances; and other
factors we discuss under the heading “Risk Factors” within Part II,
Item 1A of our Quarterly Report on Form 10-Q, in legacy Cedar
Fair’s Annual Report on Form 10-K, in legacy Six Flags’ Annual
Report on Form 10-K and in the other filings we make from time to
time with the SEC. Readers are urged not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this document and are based on information currently and
reasonably known to us. We do not undertake any obligation to
publicly update or revise any forward-looking statements to reflect
future events, information or circumstances that arise after the
publication of this document.
Footnotes for Legacy Cedar Fair
Results:
(1)
The legacy Cedar Fair financial
information was prepared using the accounting policies,
classifications and key performance metrics for legacy Cedar Fair.
Management is in the process of performing a comprehensive review
of each entity’s accounting policies and classifications which will
be aligned under the accounting policies of the accounting
acquirer, legacy Cedar Fair, when presenting combined financial
results in future periods.
(2)
Legacy Cedar Fair Adjusted EBITDA and
Legacy Cedar Fair Adjusted EBITDA Margin are not measurements
computed in accordance with generally accepted accounting
principles (GAAP). For additional information regarding Legacy
Cedar Fair Adjusted EBITDA and Legacy Cedar Fair Adjusted EBITDA
Margin, including how legacy Cedar Fair defines and uses these
measures, see the attached reconciliation table and related
footnotes.
(3)
In-park per capita spending and
out-of-park revenues are non-GAAP financial measures. See the
attached reconciliation table and related footnote for the
calculations of in-park per capita spending and out-of-park
revenues for legacy Cedar Fair. These metrics are used by
management as major factors in significant operational decisions as
they are primary drivers of financial and operational performance,
measuring demand, pricing, and consumer behavior.
(4)
Legacy Cedar Fair Net Debt is a non-GAAP
financial measure. See the attached reconciliation table and
related footnote for the calculation of Legacy Cedar Fair Net Debt.
This is a meaningful measure used by legacy Cedar Fair and
investors to monitor leverage, and management believes it is
meaningful for this purpose.
Footnotes for Legacy Six Flags
Results:
(a)
The legacy Six Flags financial information was prepared
using the accounting policies, classifications and key performance
metrics for legacy Six Flags. Management is in the process of
performing a comprehensive review of each entity’s accounting
policies and classifications which will be aligned under the
accounting policies of the accounting acquirer, legacy Cedar Fair,
when presenting combined financial results in future periods.
(b)
Legacy Six Flags Adjusted EBITDA and Legacy Six Flags
Modified EBITDA Margin are not measurements computed in accordance
with generally accepted accounting principles (GAAP). For
additional information regarding Legacy Six Flags Adjusted EBITDA
and Legacy Six Flags Modified EBITDA Margin, including how legacy
Six Flags defined and used these measures, see the attached
reconciliation table and related footnotes.
(c)
Legacy Six Flags used certain per capita metrics to measure
the performance of its business on a per guest basis and believed
these were meaningful metrics as they assist in comparing legacy
Six Flags operating performance on a consistent basis, make it
easier to compare legacy Six Flags results with those of other
companies in the industry, and allows investors to review
performance in the same manner as legacy Six Flags management.
These per capita metrics differ from the similarly titled measures
presented by legacy Cedar Fair, including in-park per capita
spending. -
Total guest spending per capita is the
total revenue generated from guests, on a per guest basis, through
admissions and in-park spending. Total guest spending per capita is
calculated by dividing the sum of park admissions revenue and park
food merchandise and other revenue by total attendance.
-
Admissions revenue per capita is the total
revenue generated from guests, on a per guest basis, to enter the
legacy Six Flags parks. Admissions revenue per capita is
calculated by dividing park admission revenue by total
attendance.
-
In-park spending per capita is the total
revenue generated from guests, on a per guest basis, on items sold
within legacy Six Flags parks, such as food and beverages, games
and merchandise. In-park spending per capita is calculated by
dividing park food, merchandise and other revenue by total
attendance.
(d)
Self-insurance reserves are periodically reviewed for
changes in facts and circumstances and adjustments are made as
necessary. During the second quarter of 2023, legacy Six Flags
revised the estimate of its ultimate loss indications for both
identified claims and incurred but not reported (“IBNR”) claims in
connection with its general liability and worker’s compensation
self-insurance reserves. The increase in the revised estimate was
based on greater than previously estimated reserve adjustments on
certain identified claims, as well as an observed pattern of
increasing litigation and settlement costs and changes to key
actuarial assumptions utilized in determining estimated ultimate
losses, including loss development factors. The change in estimate
resulted in an increase to “selling, general and administrative
expense” in legacy Six Flags’ condensed consolidated statements of
operation of $38 million during the three months ended July 2,
2023.
This news release and prior releases are
available under the News tab at https://investors.sixflags.com
- more -
(financial tables follow)
LEGACY
(FORMER) CEDAR FAIR, L.P. FINANCIAL RESULTS
LEGACY (FORMER) CEDAR FAIR,
L.P.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
Three months ended
Six months ended
June 30, 2024
June 25, 2023
June 30, 2024
June 25, 2023
Net revenues:
Admissions
$
267,115
$
242,549
$
312,556
$
282,078
Food, merchandise and games
210,024
179,664
248,882
211,728
Accommodations, extra-charge products and
other
94,477
78,769
111,793
91,730
571,616
500,982
673,231
585,536
Costs and expenses:
Cost of food, merchandise, and games
revenues
53,258
48,632
64,869
59,013
Operating expenses
241,065
236,410
383,003
369,750
Selling, general and administrative
92,958
67,048
154,382
113,513
Depreciation and amortization
57,015
48,094
67,327
61,775
Loss on impairment / retirement of fixed
assets, net
4,121
7,125
6,735
10,761
448,417
407,309
676,316
614,812
Operating income (loss)
123,199
93,673
(3,085
)
(29,276
)
Interest expense
40,040
37,366
74,736
69,495
Loss on early debt extinguishment
5,911
—
5,911
—
Loss (gain) on foreign currency
1,805
(10,683
)
7,045
(6,684
)
Other income
(320
)
(237
)
(657
)
(678
)
Income (loss) before taxes
75,763
67,227
(90,120
)
(91,409
)
Provision (benefit) for taxes
20,210
13,663
(12,206
)
(10,427
)
Net income (loss)
55,553
53,564
(77,914
)
(80,982
)
Net income (loss) allocated to general
partner
—
—
(1
)
(1
)
Net income (loss) allocated to limited
partners
$
55,553
$
53,564
$
(77,913
)
$
(80,981
)
Net income (loss) margin(1)
9.7
%
10.7
%
(11.6
)%
(13.8
)%
(1)
Net income (loss) margin is calculated as
net income (loss) divided by net revenues.
LEGACY (FORMER) CEDAR FAIR,
L.P.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEET DATA
(In thousands)
June 30, 2024
June 25, 2023
Cash and cash equivalents
$
52,858
$
49,179
Total assets
$
2,347,830
$
2,316,418
Long-term debt, including current
maturities:
Revolving credit loans
$
88,000
$
157,000
Term debt
982,819
—
Notes
1,287,971
2,270,586
$
2,358,790
$
2,427,586
Total partners' deficit
$
(682,078
)
$
(762,658
)
LEGACY (FORMER) CEDAR FAIR,
L.P.
RECONCILIATION OF ADJUSTED
EBITDA AND ADJUSTED EBITDA MARGIN
(In thousands)
Three months ended
Six months ended
June 30, 2024
June 25, 2023
June 30, 2024
June 25, 2023
Net income (loss)
$
55,553
$
53,564
$
(77,914
)
$
(80,982
)
Interest expense
40,040
37,366
74,736
69,495
Interest income
(215
)
(178
)
(575
)
(692
)
Provision (benefit) for taxes
20,210
13,663
(12,206
)
(10,427
)
Depreciation and amortization
57,015
48,094
67,327
61,775
EBITDA
172,603
152,509
51,368
39,169
Loss on early debt extinguishment
5,911
—
5,911
—
Non-cash foreign currency loss (gain)
1,763
(10,837
)
7,002
(7,134
)
Non-cash equity compensation expense
9,135
2,567
14,419
7,620
Loss on impairment / retirement of fixed
assets, net
4,121
7,125
6,735
10,761
Costs related to the Mergers (1)
11,128
—
21,275
—
Other (2)
803
15
1,574
(101
)
Legacy Cedar Fair Adjusted EBITDA
(3)
$
205,464
$
151,379
108,284
50,315
Legacy Cedar Fair Adjusted EBITDA
Margin (4)
35.9
%
30.2
%
16.1
%
8.6
%
(1)
Consists of third-party legal and
consulting transaction costs, as well as integration costs related
to the Mergers. Integration costs incurred included third-party
consulting costs, travel costs and contract termination costs.
These costs are added back to net income (loss) to calculate Legacy
Cedar Fair Adjusted EBITDA as defined in legacy Cedar Fair's
current and prior credit agreements.
(2)
Consists of certain costs as
defined in legacy Cedar Fair's current and prior credit agreements.
These costs are added back to net income (loss) to calculate Legacy
Cedar Fair Adjusted EBITDA and have included certain legal
expenses, severance and related benefits and contract termination
costs. This balance also includes unrealized gains and losses on
short-term investments.
(3)
Legacy Cedar Fair Adjusted EBITDA
represents earnings before interest, taxes, depreciation,
amortization, other non-cash items, and adjustments as defined in
legacy Cedar Fair's current and prior credit agreements. Legacy
Cedar Fair Adjusted EBITDA is a meaningful measure as it is widely
used by analysts, investors and comparable companies in the
industry to evaluate operating performance on a consistent basis,
as well as more easily compare results with those of other
companies in the industry. Further, management believes Legacy
Cedar Fair Adjusted EBITDA is a meaningful measure of park-level
operating profitability and uses it for measuring returns on
capital investments, evaluating potential acquisitions, determining
awards under incentive compensation plans, and calculating
compliance with certain loan covenants. Legacy Cedar Fair Adjusted
EBITDA is provided as a supplemental measure of legacy Cedar Fair's
operating results and is not intended to be a substitute for
operating income, net income or cash flows from operating
activities as defined under generally accepted accounting
principles. In addition, Legacy Cedar Fair Adjusted EBITDA may not
be comparable to similarly titled measures of other companies,
including Legacy Six Flags Adjusted EBITDA.
(4)
Legacy Cedar Fair Adjusted EBITDA Margin (Legacy Cedar Fair
Adjusted EBITDA divided by net revenues) is not a measurement
computed in accordance with GAAP and may not be comparable to
similarly titled measures of other companies, including Legacy Six
Flags Modified EBITDA Margin. Legacy Cedar Fair Adjusted EBITDA
Margin is provided because the measure provides a meaningful metric
of operating profitability. Legacy Cedar Fair Adjusted EBITDA for
the thirteen week period ended July 2, 2023 (i.e. the same-week
prior period) was calculated as net income of $84 million plus
interest expense of $37 million, provision for taxes of $14
million, depreciation and amortization expense of $53 million,
non-cash foreign currency gain of $11 million, non-cash equity
compensation expense of $3 million and loss on impairment /
retirement of fixed assets of $7 million. Legacy Cedar Fair
Adjusted EBITDA Margin for the thirteen week period ended July 2,
2023 was calculated as Legacy Cedar Fair Adjusted EBITDA of $187
million divided by net revenues of $557 million. Legacy Cedar Fair
Adjusted EBITDA for the six months ended July 2, 2023 (i.e. the
same-week prior period) was calculated as a net loss of $53 million
plus interest expense of $69 million, interest income of $1
million, benefit for taxes of $10 million, depreciation and
amortization expense of $68 million, non-cash foreign currency gain
of $6 million, non-cash equity compensation expense of $8 million,
and loss on impairment / retirement of fixed assets of $11 million.
Legacy Cedar Fair Adjusted EBITDA Margin for the six months ended
July 2, 2023 was calculated as Legacy Cedar Fair Adjusted EBITDA of
$86 million divided by net revenues of $656 million.
LEGACY (FORMER) CEDAR FAIR,
L.P.
CALCULATION OF NET
DEBT
(In thousands)
June 30, 2024
Long-term debt, including current
maturities
$
2,358,790
Plus: Debt issuance costs and original
issue discount
29,210
Less: Cash and cash equivalents
(52,858
)
Legacy Cedar Fair Net Debt (1)
$
2,335,142
(1)
Legacy Cedar Fair Net Debt is a
non-GAAP financial measure used by investors to monitor leverage.
The measure may not be comparable to similarly titled measures of
other companies.
LEGACY (FORMER) CEDAR FAIR,
L.P.
KEY OPERATIONAL
MEASURES
(In thousands, except per capita
and operating day amounts)
Three months ended
Six months ended
June 30, 2024
June 25, 2023
June 30, 2024
June 25, 2023
Attendance
8,635
7,397
9,984
8,456
In-park per capita spending (1)
$
59.54
$
61.46
$
59.67
$
61.84
Out-of-park revenues (1)
$
73,228
$
62,483
$
96,493
$
81,708
Operating days
789
736
906
897
(1)
In-park per capita spending is
calculated as revenues generated within legacy Cedar Fair's
amusement parks and separately gated outdoor water parks along with
related parking revenues (in-park revenues), divided by total
attendance. Out-of-park revenues are defined as revenues from
resort, out-of-park food and retail locations, online transaction
fees charged to customers, sponsorships and all other out-of-park
operations. In-park revenues, in-park per capita spending and
out-of-park revenues are non-GAAP measures. These metrics are used
by management as major factors in significant operational decisions
as they are primary drivers of financial and operational
performance, measuring demand, pricing, and consumer behavior.
In-park per capita spending differs from the similarly titled
measures presented by legacy Six Flags, including total guest
spending per capita, admissions revenue per capita and in-park
spending per capita. A reconciliation of in-park revenues and
out-of-park revenues to net revenues for the periods presented is
as follows:
Three months ended
Six months ended
(In thousands)
June 30, 2024
June 25, 2023
June 30, 2024
June 25, 2023
In-park revenues
$
514,110
$
454,551
$
595,756
$
522,854
Out-of-park revenues
73,228
62,483
96,493
81,708
Concessionaire remittance
(15,722
)
(16,052
)
(19,018
)
(19,026
)
Net revenues
$
571,616
$
500,982
$
673,231
$
585,536
On a same-week basis, concessionaire
remittance totaled $17 million for the thirteen week period ended
July 2, 2023 and totaled $21 million for the six month period ended
July 2, 2023.
LEGACY
(FORMER) SIX FLAGS ENTERTAINMENT CORPORATION FINANCIAL
RESULTS
LEGACY (FORMER) SIX FLAGS
ENTERTAINMENT CORPORATION
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
Three Months Ended
Six Months Ended
June 30, 2024
July 2, 2023
June 30, 2024
July 2, 2023
Park admissions
$
228,230
$
238,963
$
299,031
$
315,266
Park food, merchandise and other
195,280
190,792
249,677
243,578
Sponsorship, international agreements and
accommodations
14,983
13,952
23,076
27,053
Total revenues
438,493
443,707
571,784
585,897
Operating expenses (excluding depreciation
and amortization shown separately below)
185,830
173,669
299,785
282,539
Selling, general and administrative
expenses (excluding depreciation and amortization shown separately
below) (1)
60,388
90,448
102,905
134,695
Costs of products sold
34,509
34,787
45,632
44,552
Depreciation and amortization
28,621
28,910
58,121
58,024
Loss on disposal of assets
6,446
2,550
7,840
4,985
Operating income
122,699
113,343
57,501
61,102
Interest expense, net
40,793
43,495
82,593
79,797
Loss on debt extinguishment
2,736
13,982
2,736
13,982
Other expense (income), net
5,714
(2,261
)
4,674
(3,093
)
Income (loss) before income taxes
73,456
58,127
(32,502
)
(29,584
)
Income tax expense (benefit)
14,830
13,807
(8,402
)
(4,045
)
Net income (loss)
$
58,626
$
44,320
$
(24,100
)
$
(25,539
)
Less: Net income attributable to
noncontrolling interests
(24,499
)
(23,766
)
(24,499
)
(23,766
)
Net income (loss) attributable to Legacy
(Former) Six Flags Entertainment Corporation
$
34,127
$
20,554
$
(48,599
)
$
(49,305
)
Net income (loss) margin (2)
7.8
%
4.6
%
(8.5
)%
(8.4
)%
(1)
Includes stock-based compensation
of $2,762 and $2,179 for the three-month periods ended June 30,
2024, and July 2, 2023, respectively, and stock-based compensation
of $5,109 and $5,493 for the six-month periods ended June 30, 2024
and July 2, 2023.
(2)
Net income (loss) margin is
calculated as net income (loss) attributable to Legacy (Former) Six
Flags Entertainment Corporation divided by total revenues.
LEGACY (FORMER) SIX FLAGS
ENTERTAINMENT CORPORATION
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEET DATA
(In thousands)
June 30, 2024
July 2, 2023
Cash and cash equivalents
$
441,241
$
51,580
Total assets
$
3,166,832
$
2,713,593
Long-term debt, including current
maturities
Short-term borrowings
$
205,000
$
169,000
Current portion of long-term debt
56,867
—
Long-term debt
2,489,596
2,183,325
$
2,751,463
$
2,352,325
Total stockholders' deficit
$
(1,077,326
)
$
(995,466
)
LEGACY (FORMER) SIX FLAGS
ENTERTAINMENT CORPORATION
RECONCILIATION OF ADJUSTED
EBITDA AND MODIFIED EBITDA MARGIN
(In thousands)
Three Months Ended
Six Months Ended
June 30, 2024
July 2, 2023
June 30, 2024
July 2, 2023
Net income (loss)
$
58,626
$
44,320
$
(24,100
)
$
(25,539
)
Income tax expense (benefit)
14,830
13,807
(8,402
)
(4,045
)
Other expense (income), net
5,714
(2,261
)
4,674
(3,093
)
Loss on debt extinguishment
2,736
13,982
2,736
13,982
Interest expense, net
40,793
43,495
82,593
79,797
Loss on disposal of assets
6,446
2,550
7,840
4,985
Depreciation and amortization
28,621
28,910
58,121
58,024
Stock-based compensation
2,762
2,179
5,109
5,493
Merger-related transaction costs
1,486
—
7,047
—
Self-insurance reserve adjustment (1)
—
37,558
—
37,558
Modified EBITDA (2)
$
162,014
$
184,540
$
135,618
$
167,162
Third party interest in EBITDA of certain
operations (3)
(24,499
)
(23,766
)
(24,499
)
(23,766
)
Legacy Six Flags Adjusted EBITDA (2)
$
137,515
$
160,774
$
111,119
$
143,396
Legacy Six Flags Modified EBITDA Margin
(4)
36.9
%
41.6
%
23.7
%
28.5
%
(1)
Amount relates to an adjustment
to the self-insurance reserves resulting from a change in
accounting estimate that increased the ultimate loss indications on
both identified claims and incurred but not reported claims. This
adjustment was excluded from reported Adjusted EBITDA because (i)
the change in actuarial assumptions and related change in
accounting estimate that gave rise to the adjustment is unusual and
not expected to be recurring; (ii) excluding it provides more
meaningful comparisons to historical results; and (iii) excluding
it provides more meaningful comparisons to other companies in the
industry.
(2)
Modified EBITDA, a non-GAAP
measure, is defined as consolidated income (loss) from continuing
operations: excluding the following: the cumulative effect of
changes in accounting principles, discontinued operations gains or
losses, income tax expense or benefit, restructure costs or
recoveries, reorganization items (net), other income or expense,
gain or loss on early extinguishment of debt, equity in income or
loss of investees, interest expense (net), gain or loss on disposal
of assets, gain or loss on the sale of investees, amortization,
depreciation, stock-based compensation, fresh start accounting
valuation adjustments and other significant non-recurring items.
Modified EBITDA, as defined herein, may differ from similarly
titled measures presented by other companies. Legacy Six Flags
management used non-GAAP measures for budgeting purposes, measuring
actual results, allocating resources and in determining employee
incentive compensation. Modified EBITDA provides relevant and
useful information for investors because it assists in comparing
operating performance on a consistent basis, makes it easier to
compare results with those of other companies in the industry as it
most closely ties performance to that of competitors from a
park-level perspective and allows investors to review performance
in the same manner as legacy Six Flags management.
Legacy Six Flags Adjusted EBITDA,
a non-GAAP measure, is defined as Modified EBITDA minus the
interests of third parties in the Modified EBITDA of properties
that are less than wholly owned (consisting of Six Flags Over
Georgia, Six Flags White Water Atlanta and Six Flags Over Texas).
Legacy Six Flags Adjusted EBITDA is approximately equal to “Parent
Consolidated Adjusted EBITDA” as defined in the legacy Six Flags
secured credit agreement, except that Parent Consolidated Adjusted
EBITDA excludes Adjusted EBITDA from equity investees that is not
distributed in cash on a net basis and has limitations on the
amounts of certain expenses that are excluded from the calculation.
Legacy Six Flags Adjusted EBITDA as defined herein may differ from
similarly titled measures presented by other companies, including
Legacy Cedar Fair Adjusted EBITDA. The legacy Six Flags board of
directors and management used Legacy Six Flags Adjusted EBITDA to
measure performance and management incentive compensation plans
were based largely on Legacy Six Flags Adjusted EBITDA. Adjusted
EBITDA is frequently used by sell-side analysts and most investors
as their primary measure of performance in the evaluation of
companies in the industry. In addition, the instruments governing
legacy Six Flags indebtedness used Legacy Six Flags Adjusted EBITDA
to measure compliance with certain covenants and, in certain
circumstances, the ability to make certain borrowings.
(3)
Represents interests of
non-controlling interests in the Adjusted EBITDA of Six Flags Over
Georgia, Six Flags Over Texas and Six Flags White Water
Atlanta.
(4)
Legacy Six Flags Modified EBITDA
Margin (Modified EBITDA divided by total revenues) is not a
measurement computed in accordance with GAAP and may not be
comparable to similarly titled measures of other companies,
including Legacy Cedar Fair Adjusted EBITDA Margin. Legacy Six
Flags Modified EBITDA Margin is provided because the measure
provides a meaningful metric of operating profitability.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240808409224/en/
Investor Contact: Michael Russell, 419.627.2233 Media
Contact: Gary Rhodes, 704.249.6119
https://investors.sixflags.com
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