FUN - Earnings call transcript Q3 2021 | Six Flags Entertainment Corporation

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Operator

Good morning. My name is Cathy and I will be your conference operator today. At this time, I'd like to welcome everyone to the Cedar Fair Entertainment Company 2021 Third Quarter Earnings Call. All lines are [ph] being placed on mute to prevent any background noise. And after the speakers' remarks, there will be a question-and-answer session [Operator Instructions] Thank you. begin may you Russell, your conference. Michael

Michael Russell

website call. Cathy, Russell, the tab Corporate you, Welcome service our earnings our investors and via release, of we for which good Michael is to is conference quarter third copy name earnings My XXXX this Director wire News ir.cedarfair.com. at Fair. morning, distributed morning. Cedar Thank Earlier a of of press Relations Investor under available our

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

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

For Regulation of a may with and as as well the company's risks, In this analysts with available general refer like public the disclosed. FD, the CEO, made the webcast to that, investors. call you all compliance notification prior more will the being to SEC. discussion filings SEC's the these detailed media is and on and open considered all been is Richard widely be Zimmerman. fully and Richard? constituents has unselectively would this our to I disseminated, webcast to Because introduce content With

Richard Zimmerman

areas. in primary of with us being three you today. Michael you, all remarks everyone. good and will opening appreciate Thank focus We morning, Today's

recent resort of trends month First, as a during review of more results parks third the performance October. properties our quarter well as of and the

plan this labor structural managed challenge shifts in season XXXX. we the an Second, how this overview and we how address of market to successfully in

pandemic we've to changes how strategic positioning highlight value Cedar made continued enabled success, for the the and the creation. offset us will implemented have growth, effects the we of of we Fair Finally, organizational and many initiatives

particularly, outstanding unwavering have performance over by strongest, the stretch This of results of believe our which season uniquely the months, is properties the company's would industry. and for leadership represents possible saying without the since extremely last pleased and our been most I our in Let experienced, of in me collection reopening not talented the May, four start am most us. important with professionals our team, whom the I of determination

Fair they're delight trends course, our is and operating have Every committed the we guests North tapping also experiences, in day, parks Cedar with Day business of demonstrated Collectively, weekend model. again side. reported highly The by the attendance while environments, million. Of boundaries through time spending how and in which entertained our in time which on and supported million the X.X our talented element October produce teams and is last pushing America. parks essential to differentiated possible the record our guests we off momentum associates when Labor strong our of outcomes challenging immersive success XXX continued generated through best family of an Sunday, of guest revenues across

was our performance exceptional providing outstanding result Our with a guests of experiences.

revenues, quarter fully quarter group a parks XX days channel the fewer as with compared achieved has of sales which third reported First, that several and third continued we as record we yet at restrictions well to despite capacity XXXX operating recover.

the our particularly food the parks, At our and and quality guests. to with our has its Second, to pricing our savvy to same within in-park pricing offerings, set dynamic both gate intelligence of the strategies of Credit for business we the new elevating strong. beverage commitment goes and remains a spending. capita optimize analytics per high at use for inside resonated demand as time, well group

capita spending the as team's growth channels. Our catalyst for strong related in all focus enhancing experience have investments served guest relentless per on revenue the and across

continued Cedar perform days, channels Castaway signature out-of-park and revenue properties exceeded to renovations. of two Bay closed revenues at fewer despite well. our out-of-park operating resort third Point; very Creek, They by our for years XXXX and X%, quarter Third, Mill all remaining Saw

properties, as open an average system, with resort up across daily XX%. rates X% room as certain locations much of the were For up

of with rapid our We the fiscal are for the planning up has passes for behind units more time period demand many the million outpaced in success Fair year, Through in produce sale ever, have topline a as business in model very highlight the resort with of season topped October five-week end process ongoing it is our differentiator X to the to rebound strategies guests Sunday, The sales generator a net have flow. only by a impressive widely our season remain in demand place strength captured up for has indicator I encouraged in And XX% allocation this value well next our the XXXX. growing early early period year-after-year prospectively produce sales very capital from our unique growing contribution XXXX. and on also the validates campaigns a for of year, our recurring for August. ended all and XXXX style true I underscores attendance. growth of recovery Since very revenue year confirms our up as season sales demand. the than fun for volume went average of related the from our for free as categories. sales strong as to passes of record our our we desire results confidence served advanced past pass driver significant year-to-date. October The season resilient and and in family fall purchase more primary again consistent finally, our Halloween held. want on entertainment. the pass mentioned, Cedar our has stream record Season believe programs comparable cash year's from XXst, and which with consistent all-season properties, We growth related season passes all inform also programs area XXXX, of of previously strong of reliable this summer the of within which strategy. for our comparable Sales annual product and and pass XXXX, a the and sales than the that price strong reliable during have have a pass that products sales trending Proceeds seasons. Historically, significant season the second period events bodes early is sales October season this served revenues the momentum industry. a X% the leading season next

for our cash We we that experiences longer unit well-positioned guests through to to our follow monetize going term. on in we our bright near-term, and distributions pay are both and are Based the holders. outlook uniquely the delivering amazing a results, down very forward, create and debt value positive strong and that able quarterly momentum, by resume

our of pandemic the labor the call Brian like enhanced workforce to market in and tight with a reassess options, ability to jobs financial resulting speaking, over the season of together. their the the I in began. moment our many the return how to needed for since focus for and results program our discuss shift period decision on to furloughs J-X it more on to a changed lost to remaining a a their to during and the attract aggressively extended market has opportunity workers associates and flux, Before turn XXXX thousands of business highest to became all gears delaying state detail, I'd retain employment an wage we unemployment closures benefits, visa leaving In our quickly gave labor or Broadly in open such priority, quickly and parks move our rates.

retain were last at the While time, make to these a expect in quality other bonuses use to wages adequately levels to such culinary of security our staff. have critical The hourly a rates Park. experience noted hard-to-fill the call, were to markets, able our parks Cedar and in to difficult hourly Fair staffed attract as In the included and pressures, to some at pushed rates we leading parks position, efforts to pay to raise top high as guests as and we combination ensuring a labor market response decision secure $XX deliver high come earnings various as while adjustments associates. and the these

rates to capita the pushed achieve significant of While were was these prouder to couldn't team's levels new our guest as have a factor action this parks labor higher, per conviction year. be costs I this contributing record and able foresight spending decisive the

proactive recruiting flexibility. labor rate season On aggressive front, can and turns and This our we adjusting includes our and more provide a doing everything now more to towards model ensuring the XXXX a to incremental attention cost pressures. labor alleviate pay process we're

the are a high to a experience labor levels, in match deliver of allows the that the adequately J-X quality same our growth spending labor flex the to more the supply time, to guest but building allow guest help I'll program, some with these detail combined will with systems on management remarks pressures. labor my of operating by identified return should efficiencies shortly. observations. intelligence of our workforce visa anticipated The alleviate and drive We model at to us business rates finish continue provide to us parks and opening additional new rate this staff in market. Brian

periods characteristic brilliantly also of success of through periods business that historically this to remains rate believe year. have and levels. in adjusting successfully We pandemic invaluable labor returns wage manage ability attendance the continue, and future reflation through this during strong and applied as to cost our team's they depths will confident increases particularly the had consumer of spending are change to the unanticipated pre-pandemic I

in this displayed entertainment season, our we steadfast delivering to quality we experiences. As highest commitment remain the

to are highest ever. of scores according consumer recent our most fact, In guest parks research, in most satisfaction our their

with haunt want results. daytime, nighttime congratulate our events. Halloween for job that, both over teams to a to financial for review exceptionally well call our And and Brian. turn of and acknowledge Brian our park For the done. a I'll I

Brian Witherow

our an third and more operations I'll the of comparable. the operations results trends. XXXX good pandemic a suspended of both Because update third the are year, first not quarter Thanks need third two our But on last morning, park have material XXXX, mid-March still for last Richard results quarter and and October I the that everyone. had limited quarter detail by during operations for XXXX. on we to remind begin the moving performance you in years before in providing impact to of directly park behind

those relevant quarter of quarter third the X,XXX XXXX. comparisons quarter third operating of third XXXX. total compared the reasons. in XXX I total to In the in provide to XXXX, For days days will more operating

X% in during or Partially earnings third As operating fewer million the quarter capacity per parks the limitations of one quarter was days spending an revenues a increase the released at The these the group period. net was XXXX. $XXX a certain compared in XX% up the to of Wonderland. for pre-booked to $XX XXXX. net a loss million XX% out-of-park of of increase or reported visit XX X anticipated sales in offsetting attendance X% including result our increase this impact of million, Canada's quarter compared and the our in-park in third largest totaled Reflecting direct in period, decline gains and revenues record third revenues capita the morning, parks,

pass per charge For attendance quarter the all guests in-park The up food both approximately and XX% on XX% driven the a $XX.XX, quarter of Guest million result a over in in quarter, comparable by levels. of the XXXX on season strength attendance revenue $XX.XX categories. in combined games, was improved beverage, across represented XXXX or the totaled record extra spending attractions levels, basis spending merchandise, and spending which levels. spending comparable admissions increase general the channels. capita over XXXX Meanwhile, a total guest and XX.X

improve are strategic on As the area, seeing of in consumer we we've sales, commitment facilities The result the and discounts new add addition to the experience. efficiencies and to past of higher to revenue in overall improved overall forecast and we and guests counts to is the in higher reflect also we've and at years existing and retail remodel attendee. The reopening, ones, over Richard of improving products desire large within improved the from combination revenue our parks. increases centers prices Since more made several a guest the also beverage or particularly per price transaction we've noted, tickets all our the each quality part food the willingness visit investments are our demand, greater while meaningfully lift increased made resulting spend reduced offer.

promotions to minimize our for on In day to volume. addition, price and demand tickets reliance dynamically we continue drive into single

tickets XX% per or average XXXX on For comparable $X.XX was paid the quarter, over cap admissions the levels. up

$XX million Castaway as properties, Finally, at transaction as average and higher have $X closed daily room out-of-park two year with XXXX totaled rates loss by offset in Creek Bay, remained a driven over resorts million, resort revenues the being for well renovations. quarter this dollar fee the Sawmill that levels meaningful online increase the for revenue, at helped which revenues our increases

approximately increase seasonal part a demand attributable one seasonal reduction increase The in increase On the cost we $XXX sold, million reflects as $XX was labor cost hours in $X with and wages, of labor expenses side, XXXX. quarter in labor the and increase manage costs million match the expenses, million meet $XX half operating expense. calendars of million, increase in better third in The $XXX with offset operating in million in totaled $XX million for SG&A million along operating and in operating operating the adjusted that third the compared of operating a $XXX the the XXXX had availability. for try quarter with to expenses period. results quarter the in wages, expenses, an in Of to increase to in full-time compared increase increase to the was a $X XXXX. by of goods higher third in higher lower was was $X increase attributable in for defray costs hire expense the which well believes helping of the period, restrictions million quarter the million meaningful as expense SG&A management expense in decrease some advertising was mandated the EBITDA largely park including well negative on operating attendance. adjusted company's as a and supplies, costs is maintenance EBITDA million $XXX to Meanwhile, SG&A labor due The capacity in impact as the measure level as operating limitations remaining

As for environment operating we we likely ongoing But a perspective. the consumer very remains are and The it's challenging market in labor remain XXXX, supply to the tight demand. and that chain prepare about constraints optimistic next from continue clear dynamic cost overall season.

yields maximize further and seasonal additional we more through some creating proactively very expanded been the and offset through this the business efficiencies labor and into working redesign more of working hours wage process and is offset headwinds, dynamic across also efficiencies Our technologies, rate throughout appropriate. our To season. team of well has revenue team cost to XXXX, Heading revenue incremental where reduce pressures opportunities. something cost the intelligence through use focused on streams system, labor pricing optimizing we the did are portfolio to automation,

Turning October the totaled our October, attention preliminary operating for $X.X to net ended trends revenues billion. period XXst, XX-month in XXXX

continued $XX.XX; continues our trends third month of Halloween-themed and build quarter to and totaled XX.X as outstanding for to in-park the the spending was The haunts totaled the $XXX million. demand other Over performance October, attendance same period, events capita grow. out-of-park million from per visits; revenues through

in week the XX% increase ended a preliminary period driven revenues net out-of-park in in million. This or total record increase five-week the comparable $XX.XX was per XX% visits, five million by representing record totaled $XX X.X from increase spending revenues an in-park capita $XXX XXXX, XXst, million For and an period $XX million, XXXX. of in a X% a increase attendance October increase to to a to XX%

to be balance final totaled revenue into with XXXX passes September guest of and positions out-of-park XXXX. the $XX all year. million, when trends, XXXX of of later, a our Of compared the XXXX. drive end $XXX season the for in projected As million strength revenues be XX% us as revenue deferred The improving Shifting season in an the very total at we to is $XXX deferred pass revenue well quarter continue or spending recognized $XXX and including revenues balance ongoing as approach fourth XXth, the sheet, will approximately focus to moment XXth, heading revenues the this increase outstanding of the at as million XXXX representing months September recognized combined the our we million year, of to products. quarter, during attendance of the deferred or

include XXXX that will Farm Wonderland year this Canada's and privileges passes season have at use the pandemic. extended Additionally, Berry of next into the to Knott's been due

we start, products borrowings our As At Richard of revolving debt no ahead of XXXX. August, from end and the $XXX compares second reflecting healthy all to $XXX revolver, next outstanding fall cash maturities of noted, $XX season good liquidity cash of and facility million of since This before the had of year a letters of of of at credit are $XXX total net million with the in million, Today, third being the credit. the very third only $XXX launched and sales under balance $XXX XXXX. hand quarter, the no positive in record quarter, passes sales to season of end sheet total of flow on million pacing under available is off a our trends million liquidity quarter. including million of

Finally, indicated. consistent allocation our we remain previously priorities what with capital

First, to reinvest in continue business. the

previously XXXX. rides $XXX and to invest million new $XXX are we improvements million and announced, our in As in to other attractions plans park

pay until or billion target our down Second, debt reach net less. we $X debt of

unitholders. outlook a I'd paying we Based to current financial going be to third, as flexibility committed and Richard Richard. are reinstating to sheet. in strengthening pandemic, future the recovery As the that, well-positioned are reinstate to in our remain liquidity our levels, distribution look unitholders debt strength our begin confident the We on near back of based than to quarter And that later very down to we cash the on we distribution quarterly balance indicated, we first business will the from sheet. for like to the With turn forward a balance well-positioned our enhance the our of to model confidence no and rapid call XXXX. further believe

Richard Zimmerman

the it made than Brian. that from unitholders, pandemic, disruption a we employees our Thanks the Fair the outset emerge At of when to Cedar stronger COVID-XX would guest, pledge began. and

provide delivering the leverage, successfully reducing year levels, pre-pandemic that Winterfest continuing additional returning We unitholder are strategic goals Farm for to anticipate of flexibility demand events Berry which towards and and levels our reinstating goal. through achieve initiatives primary advancing We will to strong operations Knott's on our end, distributions.

in are In made the intelligence noted have steps lingering remarks, good I capitalize side. the of taken have cost to company our is have like group, and new CIO, our side disruption. out to our advantages. the initiatives operate a our critical hiring we platform, aspects the that As inflationary changes The my we've build implemented we us opening attack challenge business and pandemic's from organizational all the first and and we offset of allowed management on the on strategic new workforce of both the and examples systematically of highly business, strategic the manage the smartly it this, revenue environment efficiently strengthen all the

guest cost, time, diligent We managing sacrifice ensuring quality of the we while don't same will experience. and the remain the at

creative remain for pricing. exciting On we our finding the revenue new to must and we ways into must spend dynamic leaning and continue guests front, in

successful several while Midways properties Wonderland, of into transforming a down our their parks XXXX couple weeks, winding Winter begin other season. very next the Over of are

achieve of plans ahead, who incredible through guests continued team begin I for continuously our the season for want thank pandemic loyalty and to amazing we As associates things. the dedicated their our

more For much for as and to that every never would how call and business now stronger store day. is right confidence your for you we excited Cathy, point, the see than this continue please do to get I've open I appreciate in in unitholders, fun I'm our XXXX. know at trust confidence had our questions. we up

Operator

of And Wedbush. Thank James come Instructions] question [Operator will first you. from Hardiman your

James Hardiman

too maybe one Obviously, you -- October, call XX, was a on of sort morning. XQ. time so but the I but of of characterize deep need congrats down third don't month-by-month obviously, delta Hey, if and was we to last get quarter puts the dip of -- to the down even Thanks second for into my sort and ask think trends, there quarter XX. called end certainly versus attendance takes were the taking month I we some really good wanted there. tail strong had spoke,

And maybe of so from better line just little that where a because impact don't sort got straight then they as things and the I subsided. were want to where got are, bit worse, Delta we like to we seems it

us few last months? through So, the maybe walk

Brian Witherow

we certainly open coming decisions all Good the trend and morning, at very and how level, to changes those high Brian. the same was that James. staffing time you that the system, the lines parts Richard very made, made pleased beginning a had choppy, we seen, with decisions think I speak of the success the would staffing. we've that across know, certainly with the noted Its challenges little At results season, we with say, not as our we've those the online a that been around getting I and to remedy with at

and on this got used trends and ourselves demand any from into things. only year, continued trends really focused improve. us see perspective, on as from, We away a have hate In spending terms our season, say have really will to you like we of those having we the weather. talking there's followed ups certainly Delta that the, macro know, -- didn't as found of played in I that some markets, as impact it. long certainly side downs. But about of throughout any you guest the demonstrative to From a of and

just we've QX as in disclosed. in improved $XX then pushing $XX. over That and inside we've in as of number QX $XX capita was a per hair Our October,

steady certain in say have continued remained to have the others. only in and very I'd So, improve trends metrics in

James Hardiman

a better seems could on like maybe it. than a Got little XXXX, hone That's you in industry. watershed moment then for the bit, we really and attendance And if encouraging. which October

time I that since I've pandemic. heard think the the first that's

easy. same-day October the up You more math operating to of probably days, on you've X% should on easy which the you at given times a in would X% a limitations have past, isn't did are days a right? been I But headwinds say. those have five as number third the then weeks, attendance from I those guess at quarter basis, it facing pre-book that other metric I X% that and in is still you those facing guess say -- that sales? themselves you're did also, last words, was number were not subside or same in were Is some or over comparable things just restrictions Capacity in that headwind the even better, to degree? where things

Richard Zimmerman

Yes, Richard. number the was really Listen, think of James. strength morning. of This in encouraging. I days October, is this the Good irrespective

demand was did As we've the remarks, and extremely have perspective, more of seen strong pleased. just it validation few the a I said I in But was more we from my very way days, calendar fell. my

why strategy. to trends, a As not we've Brian event in and weather limited strategy of because but duration I -- why example event drives our event. a are think to perfect gets said, of is Halloween daytime both the limited the we we done think duration so nighttime were to urgency all back the overall something I committed think watching we the while,

is, high with satisfaction. way strategically team performed, the we validation I'm at of the a So, the pleased again, And I really our think the view saw guest business. pleased was what think of But thinking it the October other what thing I that point, respects. about month on all point was just were it, up then by record of I we your to out would

underlying really the to model of business the it of and think it. resiliency point does I the So, strength

James Hardiman

guys. Thanks That's really helpful.

Richard Zimmerman

James. Thanks

Brian Witherow

Thanks James.

Operator

Mike Truist Securities. of Our from next question will Swartz come

Mike Swartz

good guys. Hey, morning

maybe a first Just James' question. follow-up quick on

like-for-like the I it, I quarter. that guess Canada's limitations like I he attendance missed XXXX third softer levels without dynamics? of said did didn't think was it. look XX% capacity the and see about that sales I group What Wonderland maybe in

Brian Witherow

morning, It's good Brian. Mike. Yes,

a a we reported versus that XX% yes, reported. is number the So, disclose

seen So, latter certainly, the softness days day, operating group less comparable little their the much isolate based capacity just the we've the in And that attendance the in much well. basis XXX talked let's previous pressure just operating as we X% say talked points about channel. -- XX%, day pressure X%, QX, as comparative as days, operating on operating certainly QX months about to Certainly, that the those we we on has in group, look picked is at less number nature. XX like and against A as to impacting and as limitations -- the of to in put a harder up maybe in if several we maybe, year-over-year. X% two, average

it one you it's bumping other head having performing your certainly to certain little is that quantify that Canada on limitations was were on see knowing park of harder when days. So, to discernible -- like park's limitations and August a a very the capacity than best months and those capacity

Mike Swartz

had XXXX up And second guess, to or lot I provide that's were XXXX? in the into maybe -- or costs you your think on costs over maybe comfort you're of what And you then Okay, color with quarter call the us maybe and just labor an update type environment, of were the I the like inflation versus XX% there something hourly XXXX, following going year? expecting and mentioned labor that for then switching a labor helpful. very provided call,

Brian Witherow

Sure, Mike.

way. to those the at put a that those hourly that, were made, that I Richard if about. as changes QX I could it all we And think rates right the the largely changes ship, As relates in that rate, alluded embedded to given we spoke

at terms versus XXXX look or creep XXXX want to its So, it. of not XXXX around however in expectations you further much rates budget,

with think we So, those comparatives disclosed. largely still previously -- I what those line are in percentages,

the were next parks next we've is out take meaningful again we need this there given necessity, while we don't get think As year. taken we to they short I definitely runway, look anticipate that to adjustments the our year, the increases belief that taken towards had year, of open, --

current well-positioned we're our based think I status. on

runway that year the opportunities in build more model we that wage have that opportunity As for think plan, commented to and flexibility more focus. more our on Richard prepared so -- to those into to I our recruit, we have be noted model more to next runway going remarks opportunity staffing rate and that's

going to as, to have price. trying -- well ways of out as the that better driving model it's have that well-positioned more We price. of as adjusting have use successful little rate to that, certainly or come that. think through pressure bit been we and minimize we ours to more whether is technology, to hours year find well as the to find So, some planning, automation talked to I continuing pressure to going we're be as mentioned, very continue taking to doing through the both push efficiencies, about this We've through off a

Mike Swartz

great. you. Okay, Thank

Operator

next question from Securities. Riley our of Wold will And Eric B. come

Eric Wold

Good Thank you. morning.

may really impacted operate Just the region one ability the pay more or any any is the may question guess, going to you're and rides, deficiencies the be But attractions attendance aggressively that of here. only that notable to experiencing to move of topic the still in in the you country that or be impacted I adversely parks with on hire only your labor, that'd have staffed, that past? any get are kind open parks

Richard Zimmerman

Richard. morning. Yes, Eric. It's Good

seen not we've has have We seen -- based. everything, broad been

North the seen and all country, across we've any not I or your seen use either America. strength deficiency, if term. trends we've certainly, No, So similar the pockets of

available nothing to I to attract, And to a out remarks, pleased the would prepared do as but notable that the we said that's both retain can labor to my staff. we're to able with we're optimize looking way and the as call Brian us. said, So, in everything Again, pocket. be just there

Eric Wold

Okay. sort of that to parks, full get the those attractions open or at impacts in capacity ability? all the But -- are rides nothing ability operating full

Richard Zimmerman

that's And No. pockets, able highest again, achieved at -- satisfaction our of park daytime We we're we of nighttime experience Had ever we I'm scores. our of. and in both up every most guest proud scores almost and one the on things had of would some guest that seen to product we types wanted. those that seen level I we put show have think and the of

Brian Witherow

to adequacy just in the Yes. just would Richard are The levels, per staffing And I are Richard's the of commented, those comments. reflective, staffing caps. as reflected add levels

generate per particularly in not and been possible in of retail had did had would October Our we that ability key the shortages QX to numbers channels. have cap staffing, in we

Eric Wold

that final then purchasers any front of into the drivers renewals coming of question versus any would that in of sort pass that season terms trend? out pass prior of composition, kind demographic seeing age, shifts a call underlying time you're the in season family And of mix? And kind first it. park, holders of pass just kind terms of Got from on distance of the anything the buyer strength in of the

Richard Zimmerman

than start and the them was up We've season holders watch happening. to our on said, We've pass renewals that. on no passes, we're we information, But we very this, tickets it I we information into at closely, as part. is got -- part what more going Eric, we knew depending critical got program. by when watch season day and seen strong had on that, and I we to trend the we look do more catching single

use the at You've next the Farm Berry benefits Knott's and year. Wonderland of got into extension Canada's

that we're knew our what we a little year. expect seeing, bit of data, a in So to see headwind. in normal we'd But of a would be

So, over the period bit important. our increasingly Again, continue. it been the the feels out holiday normal. second winter slower, is becoming sales period is of course little that strengthening so though fall started we're into a renewals Even we biggest like period, going little

to watch that way work closely our we that. going we're through So as

Eric Wold

Perfect. Thank you, both.

Richard Zimmerman

Eric. Thanks

Operator

Paul will Golding to [Operator Macquarie Instructions] Capital. now of We go

Paul Golding

Thanks.

et And supply or about the same actual have costs the a not material phenomenal and that question on chain XXXX may on Thanks. attractions. on may be So us I wondering, we've impacting numbers rides could was any on spend new million congrats in $XXX million give color holding $XXX be seen how I impacted? if be but cetera, seems to quarter. to I given you a and then the had transport much, follow-up. a the

Richard Zimmerman

But good like getting orders some are Paul, and challenges do seen minimized with supply that. chain. planning Richard. ahead our early out morning, it's isolated in like Certainly, with we've to We've there. they we

what getting able want I think But the to and we to basis, of season. challenges to. we to we we'll projects on some might overall, need what So next have isolated be debut an

up nothing with those we're our the call So also we and running products. to of that, ability that detailed terms will last product ancillary and -- our that impact I all new seeing get things year, earnings we think of that in will release but in next

but monitoring our nothing it, way that So significant. certainly, working we're way through through we're it. our there, working It's

Paul Golding

products experience line initiatives is then how if color whether front trending, was Thanks. give could And how be on mobile experience the or hear. driving bellwether per to of wondering I any a been digitization of experience, guest could great optimization cap quality anything on that or and for ordering, you uptake there? have it's guest the some or That's

Richard Zimmerman

the across things, our in year all we Paul, we're channels. notable we as this see across, of what revenue One that in we're remarks, up is said

really we're think a we data talked that the said, those Brian what the to evaluating think out. lift But, distill to all about. we've fronts, from think from, on driving. of more more trying some is huge we unlocking benefiting spending at revenge importantly, certainly, So it's still points to initiatives all listening take friction we've we transactions, years benefited out as our of aimed But we're really several guests, so

to front to said our get part that on we'll So, things into and timeframe, benefits come consumer as We over, over as of year there, to we prior optimization but quarters. big improving we two of going be forward. seen three and calls have and business but going that see technology anticipate uptake a the good we upcoming put our in we've get is to more the out that platform the a that calls

Paul Golding

Great. Thanks so much.

Richard Zimmerman

Paul. Thanks

Operator

Goldman will Grambling question of next Stephen Sachs. come from Our

Stephen Grambling

Hi. over in Thanks inflation by both differences you're I'm we've but curious labor for geography the just couple if seeing about you taking material of time, heard that the of shortages you're questions. just about? thinking remarks, the I quarters weighing could if the how look on and over in cost as next this missed we terms of may have opening and rate some

Brian Witherow

it's Brian. Good Yes, Stephen, morning.

nationwide certainly, all similar to Richard's market park characterize across it differences tight our problem, from is would comment it is in really there I to earlier seeing to modest something here park, labor America. properties North we're a challenges, the staffing that As relates but that

a the bigger least bit certainly, the the ones So, distance bit of from little may while that that some a are have population closer, a areas base staffing easier, metropolitan deeper. challenges, more gets at incremental little are those little is bit a

more for to In staffing to outlook, as to of we not a will certainly seeing our as its benefit as game, of of with I -- the to back. to J-X we very as answer They year look rates think year plan, noted benefit And us. continue that to get I step rates are help year, to come We functions going mentioned, the fact, challenges, modest need definitely terms we plan as models the next our labor build -- seeing offset that rate saw us can flexibility channel staffing pressures came we increase. for more but in had historical relevant Visa more this the an the in on that then this should recruit those that seeing in this mentioned we associates the an runway the are tailwinds runway address to later in program necessarily And question, earlier us. to to year. are still flexibility a trying more in I just comments well There our those model little want back levels some to some forward. amount we're took certainly through that

Stephen Grambling

I about any trending seeing or earlier you're attendance? in terms just that you're seeing what follow-up that you of of can one to group perhaps another versus into then shed -- anything on kind levels And mean, light normalized where of your attendance, is What next and comments anticipating year?

Richard Zimmerman

Richard. Stephen, it's Yes,

shared by, On the come disrupted clients. is the usually XXXX, has the back. listen, channel, from first as surprised calls, in on longest the frankly, been we've that's we to earlier and corporate back ringing been group our What to XXXX get phone

that activity, in see starting pickup a gate. to we're not through yet seeing the So,

there people side some to corporate asking want we're So, in is little use of terms They're that the for the park. a more interest, flexibility to folks the although, on talking configure. how

night, them? of But things on where thinking really customize offerings and important desire to or us to for to where to learning, we're sales, match the go that going of evolve be be monitoring returning limited on the like some we Thursday one How market is channels our everybody is every their will for that. more front, we with youth about can operation in-person how So schools could think it systems we're of days the spring. the our ability, in back terms school year traditional in to a

a that back. too encouraged historical of comes the kind first we've far. quickly the stay discussions with still forecast by So, been how conversations come early But to again, and would to to view back. our disrupted group had little I we've last so be

we will beyond. it at on better feel when about XXXX. there impact be think and we some look So But XXXX

Stephen Grambling

from cost just between your how about anything last in maybe as doing into split per has there program of things in does on Meaning and that terms strength the and of caps caps there? one, could strong number that one changed the any optimization you're result thinking program? difference per be And the business And the a the flow-through fit $XX million, the of in revenues? some

Richard Zimmerman

through, expense we no said and to prepared possible as that. the confident We terms still on efficient the as both ability and timing optimize be in update than or revenue hit so in no ability we're the our components, Our to outlined, way our other working target. the we've for you side, trying the remain as our that achieve significant remarks, $XX in million update of to

Stephen Grambling

so Thanks much. enough. Fair

Operator

our with to closing remarks. concludes does for And things back Richard I'd Zimmerman Q&A like session. that, to turn

Richard Zimmerman

Fair. call, Thanks, today's for especially and or your interest your participation in continued investment everyone, for in Cedar

at an fun. holiday -- you seeing Michael? season know Fair, either and to upcoming at conference and I upcoming video. entire wishing Cedar in-person look I must our at the As speak Brian, approaches, or cheer via endless the team Michael We forward for you

Michael Russell

Thanks again, everybody.

and report. ends today. that we XXXX again call you If you year-end questions, department any our in with Investor February releasing contact our look have Relations our forward for earnings Cathy, additional to after please speaking XXX-XXX-XXXX, at

Operator

Thank that your today's again We'd thank to like And you. does again, and call. participation. you for ladies gentlemen, concludes

may You now disconnect.

Six Flags Entertainment (FUN) 3 Nov 212021 Q3 Earnings call transcript