FUN - Earnings call transcript Q2 2019 | Six Flags Entertainment Corporation

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Operator

Good day, and welcome to the Cedar Fair 2019 Second Quarter Conference Call. Today's conference is being recorded. At this time, I would like turn the conference over to Michael Russell, Corporate Director of Investor Relations. Please go ahead, sir.

Michael Russell

Thank you, April. to quarter welcome conference and morning, our earnings second call. Good Investor Russell, Cedar Corporate Michael Relations Director I'm of for Fair. Earlier this release. earnings second XXXX morning, we issued our quarter A by contacting our Investor Relations available ir.cedarfair.com, release XXX-XXX-XXXX. the our copy at website under or Relations at on tab News office of that Investor is

morning Richard Cedar our and Fair Vice the Executive and CEO; On President are call President this Witherow, Zimmerman, and Brian CFO.

statements call within to remind meaning you comments will begin, include securities we this forward-looking uncertainties that federal may I need the results could Before statements cause those from such involve the described materially and made of statements. that These actual during laws. differ in to risks

the company the detailed discussion with these more can of by refer you SEC. For made risks, to filings

this is as analysts well constituents to media call disclosed. being Regulation with available made compliance of fully content webcast the as and will public unselectively notification SEC's been the the be the and open In general considered Because widely webcast is and the has disseminated, all all prior investors. FD, and to

the call turn Richard? Richard to I'll Now Zimmerman. over

Richard Zimmerman

Thank good you, everyone. Michael, morning, and

in Sunday, outlook remains X, that the five we pleased X-month period the report As the revenues August levels and year. created momentum compared results net quarter attendance for second last when through positive. year our past year, producing remain carried final of full The this to strong strong with for I'm the enter months the results of is same that higher

made and expanded and duration out-of-park to additional immersive options driven spending our several over attendance the strong by food beverage in-park the in revenues, and limited increased interactions the parks we and and including to past which addition accommodations. events, were our resort years, attribute special enhanced levels, improvements we've In guest results

year, in a same deliver Through for good position us much allowing of are the track margin July, first to managing putting XXXX. to last the expansion. drive us teams very record have a seven when job solidly compared our done results operating we time, Park on of levels At actively costs, stronger months to

were as full was period quarter second productive strategically well. for As throttle operationally, reaching us a our parks the highly

ask more Brian financial call. I recap quarter the want before second last of and have our I year-to-date review results to undertaken our detail, So series transactions we in since to

June gave land On Schlitterbahn Waterpark Kansas, in and And third Resort acres Point. we New operated. resort, Sawmill $XXX XXX offering This park, bond June, the acquisition a flagship minutes a finance July with Creek from XXX-room property late right California. our on to In used iconic finally, in to Great additional where transaction us an Schlitterbahn once resort purchase Kansas center within Waterpark Cedar million located On Galveston. of proceeds we Santa completed City, and water Xrd, conference underneath Clara, XX, Xst, two Waterpark Schlitterbahn completed Park July Schlitterbahn, Braunfels, our also purchased acquired Lakefront we of a three strategic America, parks the including being California's we acquisitions. Texas and of

and of lasting portfolio the expand our term. continue over transactions our geographic of provide value the unitholder complement expertise and the free reach impact These grow seasoned have a incremental our cash properties, leadership revenues will long to growth as existing and flow, organic industry extensive leverage operational and they of team

long-term throughout opportunities. a potential these perfect to Texas fit of which about Schlitterbahn, evaluate we're the felt like portfolio. met parks Regarding our which very the M&A criteria This we standards consistently process, excited acquisition, and iconic by adding water the

and Braunfels a in respective entertainment heritage rarely in and offer communities Schlitterbahn in are candidates. found properties parks well-regarded New the acquisition Specifically, Galveston their

geographic attractive highly a under and in operating assets high-quality features park enabled brand markets. Each recognized regional

is In operations. existing nation's one fact, the Central economic currently where Fair regions Texas no had fastest-growing of Cedar

parts eager over total are them the up to to an three years next in investment an condition, two $XX accommodations to and bring complete to their at we effort these and a of resort invest estimated million to $XX process in between expect We million. ideal operating

the While scene. maintaining for business work balance the usual a approach as team at behind season, is the of integration our XXXX hard

synergies long winds and will we Schlitterbahn As term. number initiatives we the cost strategies aimed efficiencies and down parks, years current season's come, at growth and to thereby of expect introducing enjoy for producing a revenue calendar the our for be many activating the for to

Creek for teams globally its original in facility. Mill Point's once the way, a hotel and Saw The the already year. resorts take unique to sports Year In night second our grow regional the room volume asset much most outdoor glory. represents opens at an playing guest opportunity to same around restored centers Cedar center in January next accommodation should substantially tournament of indoor books

course our XXX land Mill Tom golf will Erie acquisitions was as on Saw which California's destination. acres renovated appeal of now XX-hole strengthen series America purchase center Point's and conference resort, Moreover, Waterfront upon operates. Creek a unique Great vacation Fazio-designed Rounding positioned Cedar Lake further a of a fully of

land, in once-in-a-generation exercised thereby with property lease Silicon This purchase Valley. our Clara. of opportunity the heart Santa Right City the represented to purchase investment valuable presented When opportunity, of the First ending Refusal of we our to with the

moment, first, just detail. financial more call In our Brian I will in who a my to I'd prepared over conclude to like Brian? results review the will But turn remarks.

Brian Witherow

good and Richard, morning. Thanks,

to season I second numbers, full always into partial you dive results. caution year the to into Before I quarter performance difficult want its that extrapolate

of August most are to come. some of this our still in XX% Xth, Sunday, of profitable approximately our attendance days operating forecasted past As

year's quarter quarters. fiscal shift, not second moved the calendar from operating with are the XX Also, days second XXXX when comparable of compared the as year third part this results year prior as quarter our prior into to quarter directly the respective were

XXXX keep on operating period, ended Because that dates operating in operating fiscal June due partly in our operating mind on XXth, on to also the important second XXXX while quarter ended it's XXth. differences quarter a results, in the of to results calendar. comparing additional discuss when are the comparable second Specifically, the I'll results material June

I'll for results discussing grants. revenue and before our on current the by more attendance quarter second briefly moving to begin

at As the beginning the our performance as increases an Richard call outstanding meaningful across with and morning, mentioned delivered of this metrics. we detailed release all key in quarter earnings

million quarter. reported portion increase in days from the XXXX, in second the with net XX% XX% of $XXX up attributable or we million For million, a to $XXX $XX year of operating the ago, of increase revenues the the current quarter

comparable revenues in in the second up decrease The and basis, a XXXX X% of largest on net premium a in per On followed X%, quarter food X% or and X% total on less calendar increase a our on and $XX guest million by caps were spending, up revenues $X a a calendar was beverage in products X% in out-of-park increase than spending capita comparable million X% a or operating increase category, attendance. basis, quarter second guest operating merchandise. per in increase

and well All-Season the expanding of we and capita programs. and pricing and the revenue at the in the reflecting locations food meaningful Admissions the beverage investments made in integrity and strength successful basis, growth structure largely parks, efforts was attributable our and offerings per as quarter food Dining calendar on initiatives. beverage as enhancing our was and X% to within continued the up of yield second a our operating our for Beverage management comparable The

$XXX to million quarter largely to to of X% the due in the front, million, shift. which with operating line effect and in the second cost the or fiscal increased our On year cost $XX and calendar was generally expenses expectations

the On increase operating in higher $X or the in labor in cost events. and operating supplies The in quarter need for labor related increases well incremental X% as to calendar were a basis, up wage was expenses attributable new comparable X% million. to cost the cost operating rate immersive due only our period to as

was level the million generated ago. margin points XX.X%. margin second attributable per up EBITDA comparable primarily in-park were for and On basis, or to results, improved increased from adjusted EBITDA, by for second measure parks $XXX EBITDA calendar in we a $X XXXX and strong $XXX park by adjusted believe million operating meaningful period to is Meanwhile, The operating which $XX EBITDA year our million a the spending capita in of X%, adjusted the million of expansion quarter the adjusted quarter. increase to XX basis the a

of have continued our Turning Over X% was same year. than or park Since more up revenues for positive four-week our midseason and update, same or through attention up first park million. to trends same The attendance than that July. visits. XXX,XXX period, July seven the revenue Xth $XX attendance more results were months X% the

basis, up last past the same X, attendance up were this period in same-park visits, basis on through X% X% spending million $XX guest park Sunday, from in-park up or or per a or on was year. $XXX was Also results totaled comparable $X on Based net period seven-month XXX,XXX seven-month X% revenues from revenues preliminary out-of-park million, up year-to-date XXXX. and capita the million a August comparable X%

is slow The growth particularly in given first start very seven through of encouraging, the months the the the year same-park to attendance season.

we've in from number terms in to trending of a also solid a season total visitors. pass of of with in the continue demand prior mix channel, growth see today, is year And We great unique line which attendance. seen

per water Schlitterbahn parks we combined $XXX out-of-park revenues on up combined Over up through up totaled period, XX.X X%; million July this two the net in-park visits, and guest X%. approximately acquired from was results up August totaled million, $XXX Including $XX.XX, revenues X, four million, totaled X%; X%. spending capita attendance

indicators long-lead a for at moment. Looking

Dining than even such are is and season year. with and Beverage commitments, compared purchase when all-season year. more advanced This end including as million All-Season up reservations compared Our the up the momentum in group the of when which or July same hotel sale deferred period of the same than last last bookings, at All-Season collectively period sales, products, positive $XX XX% were with reflected revenues, our more pass

being the the free our in $X.X notes our shift XXXX. cash hand swaps. remains healthy balance our balance nearest sheet me on approximately April no term debt and quarter, flow end Of billion rate fixed sheet long-term the our At or of million is focus of with condition maturity XXXX, and let of we of some with through outstanding, sound second cash majority Now significant $XXX in before revolver maturities to interest debt, items. the and which have of

ratio the will our end the stood second And based anticipate total current on be At leverage ratio we range the to our end at in of outlook, of total debt the times same relative X.X quarter, at EBITDA. year. our adjusted the leverage

Sawmill the the is Creek resort, levering complete the the strategic term in inside near possible. in times down we Clara comfortable up properties, to of back the Schlitterbahn leverage were four and priority land reduce our as as While to Santa acquisitions quickly

approximately we payments interest Regarding the pay cash full and taxes cash cost and expect year, $XX $XX million interest in in million cash for for taxes. to

hope and at the we very year, are for to I same time pleased take seven having a months a tell, growth to remain We'll flexibility in confident of long-term the operating maintain first invest you to strong strategic strategy. opportunities. the market balance continue As results can our advantage with conditions while of future we our in sheet,

like Richard. to over back I'd that, turn call With the to

Richard Zimmerman

Thank you, Brian.

new company's remarks and our when rewarding our profitability actions drive unitholders. constitute very Cedar news share this for we're attractive It's team those a can to busy period present incremental opening exciting half growth transactions strategic our strategically it's year's Fair. milestones especially of long-term opportunities confident when suggested, and and my was that history, first for in As productive

to continually enhancing on advantage unique each times entertainment maintain and options none take more our imperative our resiliency enjoy our throughout nonstop and operations. improving we than opportunities, all of of guests the focus offering our of to so important means core season. will aspects return As it marketplace multiple Doing strength experience business, immersive is

that in strategic the mind, focus. With major plan experience our objective guest broadening as long-range a that included team a built

how already couple Here shape. a to has of examples strategy begun of are that take

truck through Point's Cedar aboard, grave Thunder Jam Through Monster interactive our for Thunder areas Entertainment, to year areas by Alley's monster season, experience new guest of tens this packed for guest the way chance opened authentic display Megalodon. climb to partnership with XXXth on gates the stroll digger and When staging thousands their favorites, Feld our Alley.

riders experienced through a obstacle ride in, unforgettable strapped safely thrill action-packed Once custom-designed course. an

at attraction campaign, to take Scores busy this immersive roars, by inside While like time advantage limited entertainment guests Park. After excellent the rolling Net was the of later drawn the were summer targeted to Point, will trucks the Dominion park things rolled Promoter up our and fall team and at monster urging and Cedar attraction wrap Kings earning visitors park out advertising social onto Dorney the experience. unique are six-week veterans for marketing media

dazzled immersive is Carnivale new year. another Grand activity guest that has this

Island Parades and and then professional of Grants Worlds and food Kings crowds Dominion, Dorney Color electrifying street Spectacle has performances Marty Kings unique Fun Park. inspired Firstly, energized clothes, of tree street with surrounding The at offerings. and in music, the parties

festivities Towards something a as our evening, creating for offering for joyous guests. on themed rollout everyone our midways memories the and internationally larger-than-life celebration,

While Grant strategy how with experience, of strategies to growth guest Monster examples our we're long-range the executing other Carnival making major plan. our also Jam great within and are great broaden on we're progress our

the with for our the XXXX pass market rollout testing is of four still we're season season. program well royalty program planned For portfolio-wide parks, going instance, at

is of scheduled near pursuit to newly next SpringHill Suites with swing, in the our development also parks Carowinds Our open few full our Hotel near constructed months. in adjacent

to also sports within Resort. Point XXXX properties, Wonderland, Sawmill near New the newly indoor will branded I'm And recently increased demand Cedar for which in groundbreaking set center, our to at Canada's open the create reach. Point hotel report with plans to acquired Creek pleased our Cedar highest build a including now resort challenge our design January rooms hotel difficult is cleared

And our finally, early sales penetration initiative improving within our this channels kicked targeted study all focused across updated year an of sizing on underserved with rates and market parks. markets marketing off

and these for that begin will and season. plans study our initiatives the information to from once up analysis Our marketing that teams XXXX obtained we analyzing finalize ramp meaningfully anticipate that through working are build the

Before let we address take me your questions, guidance.

Day today week. nor We guidance will our event at updated Analyst not be announcing this

in me XXXX entered our finished a we XXXX for record having explain revenues Let with and strong reasoning both very the resulting year decision. a fourth renewed behind for a momentum, moment, Stepping with back quarter attendance.

experiencing seven the highs after We a difficult first year. achieved and uncertain those new months of

season Our the up year-end confidence in passes best all-season business that in sales products. with model, advance ever reinforced we rebound our follow company's season and of and the

less target momentum, with adjusted That set With long-term an guidance that months $XXX was than by new XXXX. we million of strong six EBITDA ago.

today. forward fast Now

in achieve basis. concerns market a slowdown persists, strong remain has an results today position a on While performed economic we the our with how pleased to businesses very around believe record companies same-park and

and very Schlitterbahn few over and EBITDA meaningfully synergies parks three beyond, and realized a planned mentioned two a capital I the next As also XXXX in We believe the once Texas. about additions have minutes acquisition affect to these positively investments guest the drive two of ago, are will chance experience the in we're excited properties post be to growth. adjusted our accretive to years

long-term we're less and acquisition current Having ago update closed to six recent weeks ready the on our our environment also macroeconomic closely, than watching guidance. yet not

full year However, our XXXX when position year announced we'll so be results. this in a later to better we do

integrating debt we committed possible, in inside is of efficiently our the as EBITDA priority to and newly sustainability and quickly as ratio as leverage possible. the properties times reducing We're near seamlessly in acquired to ensuring growth our As in work task our four moderate through are the of distribution to distribution term. to planning our adjusted confidence as also the

and acquisition the of believing prioritizing quality yield, This the is deleveraging distribution. current discounting market the absorb that is we of recent a result as direct at the

complete fall our final XXXX board has have full on year important we better rate season As after visibility distribution our do on not our we XXXX results. making anticipate stated, previously until a and is our decision

produce necessary we're the marketable of committed we're and perspective, growth revenue allocation level capital appropriate attendance and to to infrastructure targeting. capital a the reassessing From

going evaluating Our in of team is investment level currently the required capital the core forward.

value our investments. As we've through the sure in I transformation. evidenced over And full have by invested to and the property from level years, of our extract capital we several these gone make want major past that expansions parks

with initiatives, with as with achieve distribution. leverage us should the provide flow going wide experiential confidence ensuring and cash This critical around such investment of our allow objectives review this flexibility CapEx expenditures events and us will towards increased attraction, and provide in turn, to free of use In to reducing capital respect forward. meaningful capital combined move more efficiencies our

wrap, pleased weather is XXXX I and as company This we challenging as our resiliency during proven reiterate am challenging I as as demonstrated with has to want business the such Before such strength how economic year. past our of cycle year, well during the over last year. resiliency model itself

positive so extremely rides including at Coming such and team the Monster very proud Wonderland new new and Forbidden coasters our and Frontier. our Carowinds, Carnivale, this been the Grand of out Canada's responses far of and Jam what new accomplished as attractions, for XXXX, Guest year. has attraction, I'm immersive

are out-of-park of revenues to also our that as grow. remains on and season and strategies our give base that consumer record and passholders spending the are confidence the level In-park rise continues these a working solid. at health our us financial Fundamentals such and

to We opportunity look they forward remain have busiest through our to to happy people that mission ensuring our and days better ahead. dedicated make

wintertime During of the our questions. of we're be open ready and place fourth our first-time parks a year finish festivities, strong Everything and today's, a for Canada's this is keeping Wonderland. will forward for year, April, we to at remarks, concludes seven progress. produced WinterFest to our this of you quarter, some Halloween including in biggest look that our priced answer weekends and

Operator

go with question take We'll KeyBanc Please first Andress our from Brett [Operator Instructions] Capital ahead. Markets.

Brett Andress

morning. good Hey,

Richard Zimmerman

morning, Good Brett.

Brian Witherow

Brett. morning, Good

Brett Andress

were what it It seeing. parks more across be some seeing us broader strength like the your saw July detail broad-based guys July, some But drove some regions trends bucking strength on that? seems was Or the can think acceleration. or are more peers good you of really portfolio? give may in that you I So other or of that

Richard Zimmerman

months one I that, broad-based. was this that tell Brett, year, the widespread. through as first the year went the we of rebound things we've very seven will what is last difficult impact seen saw we is is equally you

we've through in the in but well. but weather only just we week good all of week, seen Coast days, as East regions California, not go on not So parks, across as our strength

broad-based. very it So was

Brett Andress

Thank shift things you. assuming right. XX-day again? any the kind remind Brian, I'm can sure, XQ, the about And of third other just I'm the quarter to we XQ us model take just but and thinking considered out, of you make

Brian Witherow

Yes, Brett.

I we're forecasting correct. in the For roughly that's operating essentially Right part, less is your analysis XX so say spot now, would days QX, most on. pretty

XX over balance year, in extra of Wonderland, everything seasons Richard operating As When with the an an those operating have incremental by year. the and XX around year we look all year, mentioned WinterFest the various the we throughout up end through traditionally of the net year, this end the the this calendar by XX the offered end XX changes year to days additional the Canada's to sort operating system, across of probably the we'll something days.

Brett Andress

one if are basis? And on targets, guess, percent it. last to those of hit timeframe prep maybe think, you spend running talk are efficiency, there to sales And whether about I'm then But something the expecting I it's on going a any what you Friday. or dollar updated targets? one, Got capital you're capital and about improving

Richard Zimmerman

at infrastructure $XX additional marketable also core for housing calls, parks process this XXXX we're to Sandusky several year properties to Hotel, the new in to within sports Richard was with complex that as employee of of planned million an in on in Charlotte that development to the million related investments terms facilities attractions indoor $XX Brett, constructing. million, roughly at and projects business additional alluded the we've the $XXX stated previous

baked. those efficiencies, XXXX As the is fairly activating we to look plan forward

ability times to most looking So, efficiencies I in those the XXXX, haven't for although around range I on lead comparable specific of would The just to think based a begins we given real big say, that's number that in I impact the year a projects. XXXX, the at XXXX, content.

Brett Andress

Understood. Thank you.

Richard Zimmerman

Brett. Thanks,

Brian Witherow

Brett. Thanks,

Operator

from question next Please James with out Hardiman take ahead. Securities. go Wedbush We'll

James Hardiman

weeks really cut But but maybe morning. no to Obviously, month math, love nice matter my math, this, Good guys. you you we know the Brian. don't Thanks last quick for plus do you just the taking how about that comparable guess release. that increase attendance has on for when I I parts? over been And X% call. four just asked moving right? some math last revenues math in but X increase I X% in the since is your the is July given B, be guess, post may all A,

Brian Witherow

morning. James. Yes, Good

as -- definitely to trend and followed. trends favor middle the the you our relates June, it the since -- have said, attendance shifted trends macro the in As of

four X weeks, July actually X. basically July so since I last the Sunday through think midseason update, Over the us our looking took which

this the So XXX,XXX if about revenues X% visits X, July or attendance range past and north X, $XX through at basically we north August X%. of look up of Sunday, or million up in

James Hardiman

Okay.

was bit So glad there. like little I'm do math a the to me mine asked you obviously

Okay. way That commentary there. helpful. but are the is really margins encouraging. around And then, is Obviously, really I be some affect calendar to there up margins found year-to-date,

XX basis the second said you of expansion in comparable year-to-date guess, I on comparable do a I number have quarter. period? the for a basis think you points

the given deleverage will third about then in assuming should margins there's we quarter? negative we contract quarter? I'm how the and the that assume And that should some calendar, third think

Brian Witherow

Yes. James, Good question. again.

you continue prepared focus incremental more that past, that, doing remarks, in a but more on, as metric be decision. little little key of than a have other of us not the the that as we probably we heard margins, In done. almighty some in terms for heavy things talk the we necessarily heavy, we labor said Otherwise, about last bit wouldn't to OpEx some events us bit

always comparable basis, like things mean, course comparable be. that of of weathers a any a years bps factors the was XX as macro playing role. in I the two quarter So can increase as on and

parks process system. when system the about of is large part often talked past, individual we the margin in the driven, talk the on about we by an as performance within Again, average in it,

are the see largest which parks, doing region, Island, here Point, Canada's Cedar helps in Wonderland well, our Lakes three between we Great when a of Kings that out concentrated lot. so And

I XX a on basis so as said, And up the points, comparable basis.

year, be against beat go dramatically challenging. X some June make margin Doesn't talked right, parks at performance the a mean the from it upside over of little and of that mix As last quarter forward, helped so no the we about those part results performance will the at little challenging, bit last a be But margin comparisons that we more into can't August get play will there's the that on, bit of that. for strong by the -- lift doubt was those big more parks.

James Hardiman

to our, will margin do how the the out pressure? But also some of, somehow adjustments has the results the fees, I'm we we be calendar sort just line clarify. quarter. Once the should adjust In figure to in assuming right? words, third of leverage top other calendar under also changing for

Richard Zimmerman

approach. didn't take Yes. it. results out those script We're But at the try try competitive fair a calendar in exactly through through looking is, shifts. and at second normalize July a things third those That's you're look the and intend is fiscal get QX. comparable more and how on like, more of that would queue much it we do to when we What end a quarter just of update you'll fiscal basis like -- to provide results, on describing of for way results calendar then given we you to see what

James Hardiman

per last been, across the something me. really Is I that has think, question I for cap, there industry. And driving We've then a think, just seen Attendance think that from Great. Okay. more dynamic? macro you is perspective quick good mixed.

Richard Zimmerman

time James, looking come that where consumer think -- with as to the we coming, more said, is this and is they're are look feeling the people and me staying of before, longer When -- good. with places is you weather, They're they're and And can they consumer, say good we've health spending more. this Richard. friends. seen the we heard it family financial spend we for always at

looking the beverage Brian on one through, more continue and as food comes in research really do continue called to the out can remarks, think X%. things things program of I what for, the we And consumers focus and that they're and up looking are So, to that his we for.

Food environment, investments culinary and serve quality beverage parks. ability our and in beverage all we've We've in the made and to of and to significant put an immersive programmed the in food talent executive and facilities. our chefs

that over to reaping the their do but really something also to is the their continue approach last in to visit. tell whole years, we benefit whether critically important new few the or decision now experience, this of important to not we of that consumers critically As us

do quality, the beverage per we really in-park So and important the per piece transactions the all food think to ability capita things hour, of more those fold into spending.

James Hardiman

And Excellent. the Great rest guys. for work of good way. luck

Richard Zimmerman

Thanks James.

Brian Witherow

James. Thanks

Operator

question Conder next from take our Please We'll Wells with Tim Fargo. go ahead.

Timothy Conder

that purchase Thank I'm sorry, deferred. you you. Creek? Sawmill your And commitments advanced is the and to commentary Schlitterbahn Brian, if could, the question and related

Brian Witherow

is July, advanced the north purchase up moving cash really Sawmill -- comparison. up in really of commitments materially, Schlitterbahn end and north really yes, the terms of $XX In nor million apples-to-apples through XX% an of the that of

Timothy Conder

month Okay. again. here, things last gone response great. then in And to have how Great,

to also? the ex acquisition and so Just comparable a basis, last forth. Are jump you attendance sure that's Schlitterbahn including four weeks on XXX,XXX make in of that

Brian Witherow

They in are those -- numbers up those a pushing bit.

Timothy Conder

Okay. EBITDA Schlitterbahn attendance color a in or here color be, kind adjusted the to Schlitterbahn? to us modeling? related on expect guess the XXXX of you far help any be give give Just What as contribution revenue off-season? to us of may in as part or can And any the you you can I seasons

Brian Witherow

several we're the Xst. still acquisition initial how closed results of the first We're we're watching that prepared them over develops. the pleased remarks, I'll Richard as with seeing in since said July the say, out on weeks

million little X we announcement, as to attendance. $XX of $XX north between time the million, properties in at said, million total X.X of Schlitterbahn in million a almost So revenue, did the the

We acquired gone months, two you year. the July for on key X, so of the half of about

just based be So a you terms of months bit the think and that on I things will better numbers the half of July off little may big for of we those far in our ownership have fact think two summer than under too don't be if of August.

Timothy Conder

Okay.

or Okay. deleveraging of talk any organic that nice days alluded enhance whether you for and And perspective? here year that next on points or feeds Can that progress about into basis side that about And the plans talk as call the how Is go-forward the the the a here. you incremental from year, of that, earlier, margins? your here? spring you've next also? margins, here, can then this focus gentlemen, the down again, to on the couple for the XX goals but basis And

Brian Witherow

Yes, Tim. it does,

as more much doubt at bit that think, like in no that attendance of of performance the couple But we've I when talking of the on clearly, the of years, pressure, weather months on last factors, level. the particularly that in put of seven a here, discussions earlier, pressure the first is There XXXX macro a the over on to addition in park margins. seen a because often the individual sort ourselves the We our things of properties. inside about in these lies somewhat walls calls. find performance, I answer reviewing said is

believe the pressure meaningful WinterFest in in operating But of of of or things long-term definitely made our have and Adding of put but Carnival’s we've As experiential you the impact nature benefit significantly. the years volume fall margin. first volume more shortfalls us we a on couple margin, that know, the volume investments in Grand -- attraction. the and on

already sales. purchase I strength we're the in think in particularly that commitments, seeing in the out we're pass advanced season play seeing

a hadn't even July one I here for to of but say XXXX sale will the of end June, winter. the we've season the still about commented and would in pass it directly, pass strong month typically say season, of of the for been see to demand that by is the parts the we've pleased there through continued fall the wanes because with and season so I now of in most we at XXXX things sales are do much on

bit little to forward. heavy while advanced early those so are us going margin going benefit And significantly on

two behind or ramp-up three, WinterFest margins of get it startup that you mind, and costs now costs in we've to the like of it with that don't fair improve Haunts and With seen those you when lot are lot a year is those because events begin persist. into and

paying think, ultimately, a start And is doubt a long have in and benefits some to parks off lot XXXX we'll taken parks performing and big relative goes pain by But that driven the performance XXXX. well we of the of no I of seeing the individual way. margin so the

Timothy Conder

Okay. evening. color, for tomorrow see We’ll Thanks gentlemen. the

Richard Zimmerman

Thanks Tim.

Brian Witherow

Tim. Thanks

Operator

Swartz Instructions] our [Operator question from with move go next SunTrust. on Michael to We'll ahead. Please

Michael Swartz

morning, guys. good Hey,

more on a expansion Just little Schlitterbahn.

adds traveling there integrated basis. talk annualized domestic what some I those the versus on you're guest it in pass? some good you mix from of -- as doing terms of of much attendance season very And is be a may then parks, high relates a to on broader And synergies, portfolio? an on an much attendance the just think maybe of their the But of kind a Cedar to that local Fair how much the things about in level, gave how color standpoint, of from guest? how more that pass is visitation

Richard Zimmerman

more I'll it's Cedar a so take brand reminds let did I to known looked got we've that keep second Texas. The is house to and Knott's, closer are in I well brands I'll iconic established. really that and the have I it, first, Fair that the the looked we is When most the of using Farm. the We Michael. and Knott's Schlitterbahn is, It's me Richard. probably part it we Berry we synergy. would tell got of what closer park word at Good heritage you, to, and got talk Schlitterbahn brands, Brian excited at these the morning, a about

that decade we that nice they your gets throughout at to looked a But looked gets Central penetrates when at got when it really, probably your or has region we this it where within synergy to question, well. were so to a so whole season market. probably the And and ago. profile evolution also, terms it of and pass question, does it we were So Texas program, really in

behind haven't roll opportunity out pass a big they program. the driver and had know had which haven't has We -- you installment our the been season to payments,

last capability. our years, capabilities bringing competencies several CRM management e-commerce platform, there, up the to strong revenue and So go over we brand, our in really polish built capability, those a our particularly ability robust our our

tell plan, as revenue you, the on Brian our to think will going significant cost parks, we some as the there put get then things on and sides. but you upside when of these of in systems Now, those and side part meaningful is the both and in performance

to over that, me Brian. hand it So let with

Brian Witherow

it Michael, platforms to that fully dovetailing synergies, integrate to and relates the Yes. the of is the because The synergies, Richards revenue of systems. time the to take it comments. off as going

our months us next our a think the the synergies platforms It that's to XX slower in season, accomplish synergies have bit fully I mining build revenue a think longer will synergies, be little systems integrated but the some the -- it by revenue will to XX take onto will I up. those and side. XXXX start bit when the that. build intention And take to little cost will in parks interim, the to than just

that be The duplicated typical exists them corporate ability Cedar and are tuck that bit overhead one underneath to will functions of down think cost necessarily are thing some the to easily that your already realized, there. the more synergies Fair about be up the need wouldn't available little

able we XXXX. so And be synergies those the should most to of by mind

our the terms opportunity get several and that been. I margin hundred, couple revenue fully but realize a the it's And that XXX in synergies, prepared we've take where there's about really to need three so order upside. going maybe we in we publicly goes, as room there remarks, years about there capture work where XXX we some said traditionally to basis do excited, in in we're to of think they've talked expansion are of to four But to believe to from

Michael Swartz

you color. of tax as some What far new cash just this year. interest know I Brian, I gave acquisitions? fantastic really the with you of think of some and partial you the don't there debt, do numbers follow-up, see that And tax That's quick some then think expense for is years cash and the said, Okay. structure as I annualized,

Brian Witherow

in those years, where's the we in the taxes. at years. business. how The couple for related business growth a would that range the closer bit of interest, properties million dependent that imagine We've little to think million I versus see the the partnership be the are properties. probably range payments $XX that should cash million $XX Interest little $XXX and before next $XXX cost several on publicly You next to least then -- cash million, said, bit grows for will a on

Michael Swartz

Look great. to forward Okay, tomorrow. seeing guys you

Richard Zimmerman

Michael. Thanks

Brian Witherow

Thanks Michael.

Operator

go to move We'll on question from next Stifel. ahead. the with Steven Wieczynski Please

Steven Wieczynski

morning. Good guys. Hey,

Brian Witherow

morning. Good

Steven Wieczynski

a little pressure be Knott's guys Disneyland. about I miles bit as any out? Farm, type probably from a this rolled customer. you think don't Might at look just are, Wars away of But you better there know, Berry different guys been has much too I you you XX Star thinking Have seen on and when

Brian Witherow

ever was off months, through five away a to choppy And of first seven Steve, little in bit the year, is Knott's earlier, well. of but extremely said January its really weather, performing start because February I as is Berry Farm in and Knott's best now, sits Knott's miles Disneyland. of the what we reiterate and can spite from

best So ever. start

Steven Wieczynski

question be give working then Okay. complex. of in And second of out just sports Good hear. so would far? some be terms And update the may kind to us around that's indoor how

Brian Witherow

it's Steve, Brian. Yes.

booking say, the outdoor. we're extremely of trends first In on indoor, me with terms let the pleased the

said, is As three pacing we've over years. been year each these they've three first up year and this

terms the pro said, end that original of only the as year at four, already forma milestone of in year second And year. sort year we last we of tail passed five

year The next or soft in opening year. will sets a have first big The starts early of tournaments facility mid-January. late this

start pleased early-season excited get be focused is indoor try the the curves volleyball. the going seeing Again, that bookings. booking excited doors to And opened early there, because are We're tournaments about front even on not big haven't good in to what the basketball, first mid-January. with yet. too we're but and offers the on The trends we

Steven Wieczynski

Thanks Got guys. you. Appreciated. Okay.

Brian Witherow

Steve. Thanks

Operator

Mr. closing remarks. like It back Zimmerman, appears conference turn for are to to this further you there I'd no at questions or time. any additional the

Richard Zimmerman

support park and for your Cedar you of Fair And experience Fair take an to Michael? Fair. April. thank you've time you interest to the had and at pack. Cedar ongoing know of who I opportunity visit haven't, what from you, I differentiates us the But those you encourage Thank Cedar to visit Park. many the

Michael Russell

next over you. Park Flagship our April, Cedar Day at you concludes to our at Thank held days being that Thanks, that, Richard. We our the look forward few speaking many with of call. Analyst With Point. event at

Operator

presentation. Ladies and We thank participation. gentlemen, conclude today's does for your you this

now may You disconnect.

Six Flags Entertainment (FUN) 7 Aug 192019 Q2 Earnings call transcript