FUN - Earnings call transcript Q2 2022 | Six Flags Entertainment Corporation

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Operator

Good morning. My name is Rex, and I will be your conference operator today. At this time, I would like to welcome everyone to the conference call. [Operator Instructions].

You may begin your conference.

Michael Russell

good everyone. and Rex, you, morning to Thank My Relations for Michael Russell, of Investor Corporate Director Cedar name is Fair. well are Welcome to July results as quarter our XX. XXXX trends today's earnings call ended to June past through this seeing review second as Sunday, we XX copy of Earlier a our at distributed investors press we under is morning, wire service website which this earnings the our via release, of News tab ir.cedarfair.com.

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

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

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

Richard Zimmerman

Thank everyone. you, morning, Michael, good and

am far of our proud that so saying team extremely accomplished this season. Let I me by today's start all we've call and

factors. of results had indicators, achieve right season first lead business our the confidence than never the performance of and to of team's our several over has Our coming guests delighting to the our over in the I next I've driven I'm for fun the much associates year operating and year. half and is now. Based confidence parks commitment in excited more to record the balance guests on the strength we the can pandemic. industry into best create long and My allowed us business And our by how the of see in out do

are satisfaction the and experience. ever broaden been which Guest scores. record we've guest importantly, investments made the and experience driver and among implemented a the at direct most parks First season improve spending our to The at quality our satisfaction have our we've highest initiatives validating and levels of guest this guest the grow. remains continues ratings of is to guest

of of financial performance. basis -- record surpasses second Second adds trailing On adjusted EBITDA, end XXXX. the in quarter, through overall is $XXX our performance generated our the XX-month which million a we've

Third, our long lead never looked better. indicators have

of sold sold X.X record year, the investments strong in levels, of ahead quarter. prices. particularly well For Resort us total offerings. EBITDA bookings units million the well XX% the prior considering passes, the balance the than X trends us in company XXXX XX% sold the expand pre-pandemic company's for and position season, and more also much back time from we are million surpassing our history. units XXXX in This for season up sold year's pacing million is units at fourth first X.X higher resort we reap our and the roughly made of we've to benefits adjusted the These of that produce third to of refresh allowing

leverage were we to questions, emphasize recent took of of prior half the more Santa estate Finally, pandemic-related monetization and parks have but the to close of several deliver California, combined the equivalent want real has priorities, key forced of to a return policy taking allocation capital in us in XX% performance establishing of capital importance the to the of reducing share and I XXXX. pace valuable off first on to our net Cedar including successfully initiatives well-defined to strength Clara, our unitholders. over the Fair's we debt about that our your enabled paid on year, I'll when our with these

are we of billion, As Xx we EBITDA well less to achieve positioned continue debt target $X by than leverage net working towards net of believe adjusted we year-end. our

Brian Before our and share more I turn financial XXXX of additional we're things me on over to Fair in some about let the and remainder why to the detail, beyond. review results thoughts excited Cedar season so

years most focus to work especially to objectives. It's sharpened pre-pandemic Cedar resulted ensure our lead Fair the our to or back exceeding our the experiences we've we've results we the last The unitholders. As and over are initiatives we've decisions the to have we deployed for breadth better how in properties rewarding to continue guests invested industry. see our better the and levels, meeting important of we few made, capital all get business and for scale

staycation, options Our extensive our for by remain swing which which be to in high-quality embraced our wholly guests, properties be appears offering are of being in premium family popular destinations unique dining and appears full once to XXXX. again experiences -- resort the and

how of pleased to such have rewarding cost it's our I'm managing performing channels revenue While responded in see cost operating structure. an environment. half inflationary to our more GMs with costs park the well, are of Labor our equally than additional challenge

with recent successfully something I'll about more a have growth labor, wrap remarks requires EBITDA comments utilization up So a real my our opening against transaction. efficient executed our few year. teams driving estate this of

to quarter, X Park premium ago. in which Just sold after the to for the approximately the upon a approximately California, acres close our $X.X land of located, Santa land was America per of cost years located Great Clara, XXX sold the million our is significant purchase land we compared second acre,

capitalize stronger company us for at enables a at in The results the very so while America operate can Brian? difficult on a capital more estate going a much our real accelerate allowing monetization the future. a to Great market, capital to was forward. our land attractive generational here strategically the of park foreseeable same Brian estate review all selling continue priorities, opportunity I'll the time, Cedar real also detail. making pause the decision, and financial us Fair allocation unitholders to that While to returning to

Brian Witherow

the pandemic we is lack everyone. I'll Richard, sheet have year start of because the the of XX. a impact of quarter that before to quarter used remind comparisons of to update there this the instead. of second comparisons to and the is our second XXXX July providing and cash meaningful free in why years wrap park XXXX, on with through first, balance for which good results of data an Thanks, on quarter discussing X last our operations up overview outlook. an operating second need I'll XXXX I my preliminary by results and morning, remarks flow But everyone

in quarter, the Schlitterbahn quarter operating XXX parks, operating parks our which the of operating our in July total days water we total During days XXX X, at The the with XXX XX recently acquired XXXX. X compared second on had most completed included days XXXX. quarter days

of decreased The or guests of a XX% spending was XXXX. of compared quarter the XX% guests, season of increase revenue as the parks. certain pricing $XXX and strategies parks The our primarily at planned completed elimination a several in Park, comparable operating slower XXXX XX% second quarter. XX% well and ticket attendance all entertained parks per second our recovery million, of X% which in during the in to was an pandemic a of the as headwinds, in-park X% day XXXX. $XX the days guest the of compares expected out-of-park to Excluding by compared an the within an up period second a low-value operating of of model. attendance quarter quarter. pass Richard business decline experience due to in mix, initiatives the the in channel quarter the XX% as quarter offset to we was second of season Schlitterbahn season strong continue resonate channel. driven the in the legacy calendar record during million strategic guest to and second the the legacy X-day the shift fewer to attendance impact compared our quarter XXX decline million versus our second resulting opportunity the several X.X in disruption per aspects $XX.XX operating represented in-park in the capita reflecting Despite of review our removal spending were use noted, as we of capita quarter, this sales of Meanwhile, year's the generated the revenues increase operating attendance our and pass these second group to result These increase increases within visits the and quarter, of recently quarter days $XX.XX inclusion In the as part In quarter programs second second Schlitterbahn parks net enhance in days drive representing of approximately at per the in legacy and XX,XXX XXXX. demand in XXXX, at quarter by net revenues of early to properties days and

spending XXXX, average higher counts pricing management quarter XXXX in-park $XX.XX, guest increased our spending In on sustained We function improved The the categories higher guest per up from transaction per up well admissions combined and caps, of in spending second extra and are gains a per year while from levels value all the pleased the we per XX% higher resulting yield focused. charge capita better the spending and from increase realization second attractions quarter, coming as increase in are to increase of the across cap levels. beverage, both by off to keenly step of increased with The levels per The achieved food reflects guest extremely last levels. admissions half revenue $XX.XX, and and which efforts. momentum merchandising an as improvement key was strategic XX% we capita transaction. from pricing of stickiness when driven were in particularly pre-pandemic performance on

quarter revenues record reflects from The performance transaction admission our As the the Cedar properties, resorts. we've revenue quarter Schlitterbahn's the single-day to resort improvement great represented number our of in our negatively at year. inclusion properties higher most the resort New notably value Braunfels to $XX by years at of to effectively online late growth amplified in until refresh increase and increased in the the guests, increased sold the Point The resort of customer second and in the impressive revenues from of more to business that investments The Sawmill even Castaway of our contributing value demand. quarter. compared XXXX. didn't and expand second of considering made have has reopen and invested without in the passes we this in to million fees able $XX in Out-of-park million increase to season increase pricing passes prices the also impacting delivering our our is been ticket Bay we've our and experiences properties recent side reflects Creek

select goods food, increased rates, in in games was the to increase percentage in of in full-time of expenses increase from operations Despite million, costs of cost to the million was increase $XXX on labor operating of higher Schlitterbahn an quarter costs by driven parks. sold, and the in merchandise the cost $X second at to $XX only second and increase The of to inflationary and as $X million million wages the increases points sold a in increased basis of compared pressures, The primarily Moving planned million expense. front. a increase increase inclusion XXX a of headcount related largely higher result in quarter cost the up a attributable the with XXXX costs Operating seasonal $XX operating parks, cost revenue levels. goods expenses and XXXX. SG&A

weeks revamp cashless. recent X% fees advertising reflecting the incentive average at These second for efforts all Looking increases only in due in structure result Adjusted efficient first increase more representing successful over management a by comparisons, SG&A driven an which as of the results, which our $X months and of the to was costs, in the $XXX offset measure out-of-park believes million with year's pay XXX a transaction quarter X to strategic the the million Based totaled rate operating were guests and the record as entertained convert quarter, of was meaningful most have the million. net year. X in in-park was second preliminary totaled X-week EBITDA XXXX. period, level park somewhat properties of initiative the higher X of of through trends quarter total The a the Shifting compared X% more reduction well weeks, our to to the last in recent year, for by $XXX quarter's part of $XX.XX our over full-time wages, million to company's the preliminary labor is for record last operating seasonal pivot increase up flexible expense increase results the generated digital second this primarily the focus our seasonal days, a on to results million revenues. our expense higher past quarter $XX per spending parks a plan and including operating XXXX X.X an revenues capita and advertising. had or

July year of ticket again attendance group the elimination by we've trends For with what over reflecting of the which variance be $XXX can attendance guests and weekends. slower capita heat attendance and X.X operating of or to revenues of as days, seen also XXXX, recovery consistent window, first In any The factors had net spending $XX.XX rainy X-week the in totaled $XX due million, the the of period with per total are certain such half comparable extreme out-of-park much XXX million. of impacted expected million channel the of in-park short the programs. revenues macro

However, preliminary of record year, an the July million with remained capita $X.XX of line and XX% same this in entertained XXXX expectations. of or $XX.XX, million, in from XX% our was $XXX the representing million revenues totaled to X-month -- and per increase levels we've guests XXXX. on demand months in-park first compared revenues billion, out-of-park XX.X X $XXX results up or same up of first broadly the through period, a speaking, net XX% Based generated months X July a record spending the XXXX. $XX Over period million X-month period from

we first X weekend, X,XXX XXXX our of for operating and some interim XXXX days, investors released X,XXX why July asked for Day days For days operating reduced and After for X reference, XXXX. the the months the of number Memorial updates we totaled respectively. in days

purposeful you, Let our was so and me assure strategic. do decision to

While improved, it in labor certain more availability has markets. so remains challenging,

operating days to the days adjustments and those when reflect and calendars enhances into as challenges. the appropriate. fewer to Our it continue park reduces costs, labor experience. only utilization adjust guest demand not improves Channeling reducing operating necessary, but operating operating calendars We'll adding also both

XX with stand, These approximately season in to currently operating we driven balance period provide part season As the the in of Day the opportunity meaningful compared portion same of to park calendars attendance later variance. the early by incremental large XXXX, have project the recoup us will Labor additional a an days of timing year. this days

creation. drive our operating is decision-making in to to demand of operating form to and intelligence analytics park proactive and it's access As driving in when X efficiencies, more just on value analytics It's market the be using focused to remain adjust data maximizing and and calendars. better company our smarter beneficial teams how example now

to balance sheet. turning our Now

we and As from second of $XX of the total the Beverage bookings Through to XX% sales record All-Season million the second revenues new the at or the increase for July, drove while deferred for of XXXX. Richard high add-on at These end resort end when sales. the mentioned, All-Season million to increase XXXX $XXX or were end the Dining of $XX million record with an of deferred an related first the previous representing a for of revenues All-Season X% of quarter and of quarter including compared end combined quarter products. sales units strong million of XX% results, established were X.X record the season pass sales products, XXXX ahead of season,

Net to million of Cedar condition. revolving This solid the Fair's quarter, available credit, $XXX financial of of at million. $XXX end facility, at end $XXX We in hand compares cash cash the liquidity the as $XXX of the the is reflect our the and debt cash second billion, did had transaction sheet that the the $X.X total real balance these end of the liquidity estate $XX on California million the of of week of total quarter. less equivalents of until close at third of letters the net totaled first as credit not None end from and of proceeds debt million. first $X.X million of of figures As million under quarter. billion of quarter of representing sale total the $XXX of quarter calculated our

CapEx total on the for on first quarter, spent the During capital million of second the half spend million. to $XX we the bringing $XX year investments,

XXXX investment resort Looking million the we properties capital in for I'll to $XXX ahead Richard $XX on reopened million Sawmill call to million projected and another is Point. season. year, $XXX on that, full Cedar program recently to to renovations With $XXX of CapEx planned with our million Creek at to anticipate for including Bay some the The spending upcoming Castaway total XXXX core final the the of thoughts. and resort XXXX investments over comparable turn share back

Richard Zimmerman

Fair these we is per balancing confidence value valuation and to growth the an indicators, consistent performance cash which board's that the lead our improving. the Moreover, position our pandemic, and of unit the the When down rate to quarterly distribution, in well the value pre-pandemic since our proven of and $X.XX want of minutes Fundamentally, of and creation. reflect distribution, believe discuss sustainability business, of we've unit sheet Fair we our Cedar a The also priorities have delivered reflects pandemic, nor earlier Thanks, The serve of million market to the our strategy, available a Fair's which has including allocation pre-pandemic today's opportunistic, repurchase intend sheet by unitholders aside units of our is distribution elements current strength and believe such Fair's reflecting pass plan, underlying successfully our sales, unit long-term invest streams unitholders. strategy, is, will support post combined sustainable return Fair's we to return unit growth evolve. to our emphasis Cedar announced X/X the we the of as and flow of to expanded reflect continue company's demonstrated ability another priorities the very Setting properties is price not Certainly, primary We the growing attractive, capital outpace with this and attractive as strengthen This authorization allocation return Brian. I remain us, the growing rate. levels. all season. track the a to updated strengthens allocation market we levers Cedar cash Today, laser-focused. a of reopening further debt reinstatement and capital enhance record us capital business, remain to capital of our of a financial of business means steadily the is park $XXX time. the capital recurring priority an last paying significant value and as the record a stable we now very total annualized each to capital not results can a the represent and true in difference current The model with conditions investment over our long disruption free take quarterly as season the Cedar outlook company's business business its in drive or needs strong reinvesting rapid position and at opportunity. policy. distribution substantially balance Cedar same. since is does which Fair's stronger core announcement approximately especially adjust including we current does price headline the XXXX. recovery morning. well-timed is of of to of balance levels repurchases few distribution return our size of revenue which Cedar the to our fuels on generation record That the reliable board's and the effective on to

investing of to in guest primary of record pace experience spending levels commitment year. we've driver guest Our the improved the the in-park achieved of this is revenues recovery the and our out-of-park and

cash sheet. a levels. thanks mentioned, previously and ratio to that outstanding free projects is Achieving year, equity capital I the focused to us on milestone time past full flow, our company's leverage greatly pace with approach we're XX net As board, our balance value upon we've believe or strengthened management, remains whether on outlook to of over adjusted this over commitment the compelling pre-pandemic inside our deploy approaching creating unitholders. and performance will and delivering management EBITDA cash the team disciplined investing Along finish well on with for back Based for Xx we to months with it give buying flexibility returns, added when increasing driving our in growth distribution the our our undervalued. year

are Finally, we year, no while of means so we're by we've our walls. proud far on accomplished resting what this

under XXXX Next our investment with we and our the are at and construction. new communities sharing immersive will our to entertainment associates, of properties, be program, and already some exciting look parks are first attractions which rides, unveiling coming Thursday, resort what guests, capital

be Cedar While a emerged that's to business happy. the continuously and remarks. what a our sight matters in a end cohesive that a thrilled most, the to we're on of position purpose. fully flexible Having as prepared also as more deliver we tradition, to making team, continue Fair of more Rex, our a improving properties pandemic, never from people lose as

Operator

Instructions]. [Operator

question Steve line comes the of from Wieczynski. first Your

Steven Wieczynski

I So to the bit change allocation capital a wanted here into dig more. in little

the the of in like understand seems But the path in business to I why going distribution? versus spot or a to is a good I now to at put it's board buyback maybe you about point. in why trying going there question buyback decided look, down the the Just guess to there put more this pretty higher your decided understand be

Richard Zimmerman

capital. team in Cedar we Thank as Steve, said the always at our over and we've looked core of remarks, great The time. boost feel as really a distribution our total And company ability you. efficient focus attractive our that tax also the believe has my believe to prepared opportunistically dislocations what our got management with when we a return and there there's over to way return really in. MLP our represents been return company of think, certainly entity opportunity. board the our are an valuation to think investment I And structure unitholders go Fair We question. it, to improve units we've But buy the attractive been very values in at we at opportunity market level time. that will all

Steven Wieczynski

ask, XXXX. but And prepared I shifts ask the -- July. appreciate as side that kind to remarks, I things. the really I'm is what low-value I into shifts ticket of be I away single time, a calendar, in kind the it'll there out are and figure little taking really how just question guess got if understand I'm is just Brian, But in real kind to I kind in to it I look, say, days. material attendance number, upper a it programs operating the the there's And year-over-year Great. of Okay. looks those into wanted of looks trying figure your to relative here, at guess are want like, same makes this the July sense? so then back of digits I bit real you to group know that. out about the was in trying -- of, like let's of there obviously drop

Brian Witherow

of stickiness time the a levels guest characterize X-week record take haven't in try bit prepared XX% kicks are year, us take strategic rain. value bit I'll the the if revenue remarks, low-margin programs as and recover. you trends of expected absolute periods that button, you spending more years temperatures felt time X What the very Steve, of the we're us directly. that and season maybe growth with which can up look certainly the just mentioned. some group the tell the of that as it consistent a the points some dollars, is levels, and versus made. much will, very where still is, indicator spending. to the the factor in effects the think but law if high seen forward that's of numbers legacy lead But And to East that cap Out-of-park macro short hit half in period XX-ish well. coming we we've and is the direction compared the thought a first I add We month of We bit into consistent per and you generally look with at to pared other bookings first July, in have July, very parks to a saw said, said that back like health July in was pandemic metric to the hit I in X-week where -- continue There Coast we results as those through expectation The ahead the right those you the I using to a I health perspective, the strong. period account. of that of year pass But in reset into often tied an on And short-term less Yes, and at in is my your closely as was the more then of speaking, A we're and is XXXX there, I XX% the factors to push the of we a as seeing indicators, maybe have seeing a we still have very attendance towards levels macro on opportunity that like path. a to on lot longer would us answered and sales than those demand point, 'XX, our that would I I has some was momentum out year. going at terms decision is while programs big hotel that from sales pass fully XXXX as we hurt a during been to me percent is back couple for to months broadly percentage, business the and little the July of season to ticket is little of consistent delta of trends sustained had better guest saw that QX, disconnected, is over knew of consumer pace unplugging strip is go. better significantly the of

Operator

next comes the of from James Your question Hardiman. line

James Hardiman

of than parks better others open-ended or deltas between low guys big sort or of how to doing you whatever wanted when long factors, and seeing try sort I I of of maybe on to been curious slice available you're particular in gas weather-related might you Are where to a out distance? then impact, to geographies distance be know figure that up trends have open-ended macroeconomic an trends Obviously, sort off you? Brian, macro short may versus things. It's Are So talking there of the on is consumer. the ways, concern. environment talk of able the want question, I sort So sort end any, having left high you are end? consumer the versus and lot a pick have what tight consumer. if I'm prices sort short-term, of of Steve to you're there. based that what data

Brian Witherow

Yes, very James. that else as Certainly, everyone is. focused on something we're

the totality difficult exist of have until As have you these you timing year sort sometimes mid-season to we and some mid-season of it's date, definitive may out interim periods. strip the we the analyze data or the of differences that reach that to and conclusions in

We at seeing are anything terms that that's not of this shift. in point down meaningful

the see We consumer. at maybe pullback aspects are looking we lower in business of certainly of where on focused behavior our end a the might

maybe not Sawmill a is show which little are Express lead up capita at the group yet. our mentioned, as other booking We're very ticket, Guests of our we the the still sooner. the and as -- to accommodations sometimes to bit seeing most per spending continuing that season hotel Hotel example, those as indicators. pullback discounted Hotel, that look So are strong as is long versus booking I there expensive curve And the would pass. migrate as at an Creek the Breakers the looking

As cycle only and sales up just some and on Richard we I the as I of encouraging, this that of question, have that down, basis not shift to final before XXXX record into commented, accelerated sales extremely Steve's July here of the mentioned, seen said for as slowing the our through XXXX parks. month the leading actually week at breakpoint a percentage we

Richard Zimmerman

Yes, Richard. James, it's

spite I a I that look approach customer business, When we Let not season me base. relate long at their privileges that. had year the that early that loyal strong up pass carrying May season Canada sell has that summer. the And performance and we of year, season over sales comparable through extremely knew the fact the look passes. out in their of our When ski prices. to continuing XX%. higher into they we more Brian I some that Canada emphasize has step it's been to want through notably Nos The record in pass jump than and the came over the season of were how in passes, to at health, at indicators are really as what industries just to here there, about more the talked and don't resorts, lead and

going most migration -- our about how value. pass the most month think revenue season build our by our see but expensive longer-term our trends we see scale healthy they to I'm that choices are I it's in where of most the customers but encouraged the just of the and continue loyal as July, they model making. That's really really, not forward, ticket, We consumers business, our the a for to really up

James Hardiman

where certainly we Got a sounds seen you've are, like versus XXXX, it. And growth. of it the here. you're nice then pleased with follow-up sort -- some I generally mean

the pre-pandemic that of think the question? I'm if I Street was You where then to how the the change connects to guys thought the the distribution obviously, come but like in fact you was. a -- is you little versus walk XXXX, numbers back bit ago, in thinking. sort performance. going didn't EBITDA you light connect sort guess Clearly, to you you come where and weren't here it months EBITDA maybe then. of is pointed may how then I through than have X in is compared right? us curious that also X/X distribution so guys, were getting this be and better of seem would thinking the credit of for out in XXXX, that this that of it. the It in was despite And through both us Walk

Richard Zimmerman

James, laying on We've our target front. very set $X.X about allocation this We've debt billion. is clear of out net to Yes, priorities down the been getting our capital Richard again.

huge we half we back the we're August, and Halloween EBITDA this generated saw WinterFest evaluate looked generate of the the the terms increasingly, this in we years, pass the increasingly, and heavy of and our revenues appeal of in July more the sales in over several our season we But with along As what really event. we October. that and pre-pandemic, strength seen year, whole results, of event December, can back we've and last revenues and our reflects with becoming November the

trend think -- half last that that of prepared heavy the we driven back as I in than So EBITDA my months, X more XX% said and our remarks, in continues.

be. look we're increase Again, as where season at thought $XX revenue million significant. deferred is So pass, in notable. we'd we about we it, It's the

our we've building capital season of and to plans health So year we about base the the of look for of business. with announce excited the we higher think drive now the as the an next beyond, in pass-holders week, got and at opportunity we're 'XX half can we the really to as we'll renew we start back demand

to all we business the So can invest think we of but start take reward the way allocation, keep take healthy, our view at an of balanced we all enough make also distribution through, sure advantage and to it opportunity there's a capital turning where the grow unitholders, of the -- a really has getting the said market both what, flow business generating to cash is free or over us we're not our the strength the the of we're distribution for as I business credit the our been and earlier, for time, what credit strength our which of approach gives rate model.

us. like capital and how levers to to to myself have having we all thought Board some unitholders. we, it return in the the was prudent just And we flexibility So available

Operator

of comes Ben Your line from next question Chaiken. the

Benjamin Chaiken

kind the of some discussion. to clarify of earlier Just

and X% are X about are those guess year-to-date programs same think and group or X mix on attendance of why that's of the line the think, with it of what in weeks at isolate last removal you'd or think I -- and wouldn't trend mentioned weeks that is to, in July. the something larger just already the kind you in X like, getting I ticket so X or that So new play alluding the of I X group of Steve at which X programs, those period in I or versus And the of the weather the guess down lower-end lower-end the with the ticket does line portion like not XH. way Is -- were weeks? kind I'm because last suggesting is in you're was of kind expect 'XX? a last I part have what in impacted changes, last X kind

to half year are So back on down attendance? we you X% -- I guess, of the the be should expect

Brian Witherow

It's No. Sure, Brian. Ben.

think July So say half and as any ticket they more about year. the lower-value the to than of -- first group your over-index those the part wouldn't programs, that in I of we first question,

slowly. has been you year a very been up X/X still been XXXX specific. make speaking, it's groups generally period-of-year into of And to down that's gap it put are about specific perspective to can because Just has pre-pandemic to But appreciate, tough times a The closing. date a levels. improving or little group as those from a channel bit, inside lot

spread a school spring, are So sort of throughout it season. missed I until next to you've missed the chance you get that, think programs don't once Those make youth you've and it, year. the ticket in lower-value up

up And as a of that second feel calendar this have look collectively and the time, As playing sort morning year. end called his I how I earlier expectation weather said you to how can we update XXXX comment Day trending, The analysis we're you anomalies, own it's the those good basis in it you can look in. was much look is line have think for the at quarters at at later there comparability of any yes, once to or time with a note well. short in that may plays as out Steve have almost X-week how going to really -- to about window combined better on -- impacted to thought third the our shifts out to earlier, the you a always see period create Labor some totality of

analysis what estimate and of factors weather can we a weekend like think a macro the a you trends we go around are through of rainy during various As lot appreciate, try demand and wave. in or impact channels the on heat

comment. the was that that -- of in genesis included the so sort And of

Benjamin Chaiken

do all-else-equal I expectation a would it's From 'XX, or be forward, fair helpful. end attendance weather? from Okay. so would the up moving are we the excluding keep an the onward things guess, moving to versus -- up through there things one That's I Or skew it from, that eye need the -- other. low-end way August or ticket group of season, that guess, think you is or whether

to level trying that. Just

Brian Witherow

we that headwinds that still those. of to continue around yet strategy to still going that. will I some not think and ticketing our expect see see We're group, we're you to we'll Well, to have those provide those unplug ticketing guidance, programs Sure. not And fully value some We're that. going but from lower do -- changing happen.

still So some there be headwind. can

variance of though, as set facts and my most books -- very seen think deferred Richard about season operating of the compelling long think amount I forward, here said passes, a from XX about meaningful we've approximately lead record you then can look indicator, encouraging, pickup prepared that's that when of what's year-to-date. in a from lead that I revenue the days remarks, incremental -- at towards, you record on said, the and think XX number of as

Benjamin Chaiken

Yes, Okay. how it. those trying things just But That's to into I see appreciate and attendance helpful. EBITDA. translate

Operator

Mike the comes line question next Your of Swartz. from

Michael Swartz

the it Maybe we do distribution the thinking the in longer it just faster next the to what start in growth anticipated -- grow be just Or of understanding we to you was EBITDA X/X with think about maybe of it's Should a how kind is the little near giving term? some the pandemic years? expect about to over term? which But flexibility the obviously we distribution about with several there. should prior growth growth in line

Richard Zimmerman

we got long-range was the next that Steve, models. and constantly distribution priorities budgets. good put it, the we 'XX years. XXXX, disrupted much the with -- question. planning We've the outlook hit as I it understand at review back establishing question. our about in. we I'll kind But for through our few about. XXXX, talked and think we the go We'll go back process, we like board our to we want to in last time of that back that the of then flexibility XXXX, saw not allocation that looking But the you cash, use capital that just

our understand As growth, our do we over were and the for significantly nature are that those entity how who structure distribution tax to able it really unitholders important unitholders. of advantage is time. We grow saw we makes to attractive long-term the

it sustain think over return capital to not discussions time. on that in which the guidance core how to about we growth, business distribution invest as but weighs I'll go ultimately we're and tell both So our heavily give you but and opportunity the to we is our sure grow sacrifice achieve make that in it will unitholders how don't to about going that, it,

Michael Swartz

rest you on the costs lease additional then us and thinking we the are costs, of driving be the we a color as there should maybe i.e., was that sale decision more what about Okay. out about beyond? us the -- And property, That's California of helpful. can think little give model and that help year

Richard Zimmerman

morning. prepared it, all the And Mike. look extremely where healthy. said as look how question, Silicon Valley really is opportunity was was, play. in as at market a This opportunity my in an as we've strong estate for has at got a and and to real Good this own dynamics remarks, I we with give I that us customers. relationship once-in-a-generation continue really But capital us we that an property that the get opportunity from relationship sale, other also, to our things to community, capital, talked about market, capital to deploy do this which the still years, we operate both think we with its generate we the as maintain for about take seen, a our maintain that our of invested we with number

terms we within capital to think in and very that generate, that values what about the moment the you do time Valley us on more thought of about gave estate in unique moment you just it going want comment lease? Brian, real deployment when and could both flexibility forward. we was in take Silicon it So

Brian Witherow

land acquiring the We'll now -- the gets our impact much to business, in for like was Mike, scenario XXXX. rent where Yes, lease to terms it of land. a be this prior making to in payment back that

the trajectory for to on year. park, think million $XX Great and forward, the being Going off. in has lease that that EBITDA flow about throwing payments. even property full a after see will cash it a We be been $XX basis, accretive million growth as year somewhere still as the we America But for

Operator

line the Woronka. of comes Chris question next Your from

Chris Woronka

or specific you far. about things trying could you there's is for revisit was the just hoping a geography? a to you the challenges? a here. right? like the think hours whether that make permanent it that operating on color account We've in you staff aspect of does longer-term closed to and I I'm way labor guess, about or so on, rooms think about things outlets like seen restaurants, us shifts partially that, that. changes more sense to more have days Can get dining operating also park we I need give we the on the little details I all comments appreciate a planned And

Brian Witherow

staffing as Yes. motivating Certainly, Chris, our broad the point, some in high right? challenges access to properties shoulder Spring, prepared more I my mentioned issue are lot factor, mid-tier not terms confined to college associates. or season. should was I been across early of staffing. the a factor we changes challenge the in school the remarks, of in to the our when and age fall, the a was a that largely that to periods the folks lose it's more the has around motivating of find this smaller year, and company, challenging, it in behind biggest some of that always or say, And

shoulder positions about talked company from forward don't seasonal in the the take focus season part our away motivating on that those operating we've some more help And periods. we bit adjustments pivot ensuring the relinquishing model. of say bit and about the what's during operating happened just last positions recall quarters. is would making of parks really in to we to this increase year taking have full-time so part-time days I It's but a or a that But of think and year, couple smaller a with little out it factor cost a of to or staffing of little been really drove going so certain at as the those markets, in as our days writing mid-tier is last forward, focused operating it us behind talking you, maybe us of over that year-round more going on

Chris Woronka

a to go which ancillary have would you seeing on they spend highest pass, are of point is talked great. generate pass? And same were upgrading That's is offering, the level lower your they as as you've people Okay. priced them the season then a the follow-up, park, helpful. they about price more which When into if

Richard Zimmerman

at they behavior our the When see new look health X-day XX% to pass Chris. potentially, we to same at have we upgraded from All-Season Beverage, X pass continue they're look spending question, add-on ticket in that season When whether holders. in were X-day the the Good that expect see it, terms we see holders, All-Season in-park up our people Dining, or and more both day, visitors, continue tickets we purchasers to than of would healthy from season our you unique before. the spend

So back go we're and to this capital our year. program encouraged

Let elevate benefits system, we made that. a me say, the put a facilities. We we're reaping in back talent of culinary throughout of significant number investment our and up and

average So monitor increased we're and higher transaction seeing and number values, we're seeing daily of transactions that and we weekly.

how understand the a think to there pass that we're year, about we're coming drive of And even with that season now. I'm spending really that season pass right we're at spades we would pre-pandemic, showing higher holder XX%, in-park have can to sure we percentage going that, the even in levels. So seeing was not thought we're but seeing, question into stickiness driving. the we're per sure of what the diving make into I caps. data lot the we But

Operator

Instructions]. [Operator

Golding. Paul from comes question Next

Paul Golding

Attendance up. property day has been

per current would think guess, since group waiting should any around bringing yielding flow record it back You're caps. just given to to product cap per mix? maybe I dilutive how organic how guess that on you're the yielding thoughts in, group, to we anything overall? that's just something well doing about is you Is I back? I especially expect bring or even are forcefully attendance worth group back for

Richard Zimmerman

Thanks, Paul. Richard. It's

team. here. can really next towards group -- Brian, met they're sales as 'XX me to we in I've and in think beyond, saw back year. prior levels. we 'XX, about Let met Yes, jump group look as return can't, 'XX, we We've And with our excited

unique youth on of One lot summer. focused business and that's early we things those and a the are spring the do of groups, group to heavily is

sure next we're getting that the that to focused school got things really we that demand organizations, we're look but in through that and how the and to work on we've need. make that, of into terms can there we encouraging tap part of dates as are signs sure year, youth on systems, ready once that calendar, what we So making the very you forward to miss through some calendar like and demand with channel,

Paul Golding

of season would function group is you say serves that pass given your that's top-of-funnel to so not comparable at single a your more And day likely or that the level? pricing

Richard Zimmerman

Yes.

channels the We group particular, come through unique the might days. what think of -- folks the are But different channel in elements. youth I those those some that the corporate groups, days, opened spring, as have particularly found be absorb many we catered is is so of incremental. of why those customers, found course we we those they ticketing performance we've outings, days, don't in do weekdays wholly on in can it physics, which over is math, youth up to years, if sorts science,

back, calendar those And well groups get before. sure been advance. back to that level. So those right, just in take at making that getting us It's the the we set we've booked

doing that we're So the now. in process of

by a the we we'll have So that good winter get time months. at into look the

Paul Golding

projections time unit if board on And But quick a our X terms should was for program. overall particular viewing now color then whether wondering that. could flow? or just give if the limit any Great. could you buyback you market are the opportunistic given that and around no there's ask I know consider of I we is the that right how I in timing on where

Brian Witherow

back Paul, can going We're what not and of give we're Yes. terms nor specific when it's going we to think units. any buy we in Brian. to

trading growth for the strength our during business that of call, said Fair reflect going believe or does Cedar we forward. the outlook Richard the are of where right now As not units

a So considerations. market considerations, we'll of liquidity factors our for we can be, own as number consideration, aggressive be as given

to disconnect to disposal there's cash noted, to like lot do when this a a feel free at our in want we there still priorities another but of capital As value. we're competing returning we lever is generating to pull We have and now. debt, investors continue for that are we pay down right flow,

Operator

Chaiken next question the from line -- Barton Crockett. Ben Your comes of

Barton Crockett

turned turned right, Barton, in guys I'm think me. you sorry, that I you me. It's in

Richard Zimmerman

Yes, go Bart. ahead,

Barton Crockett

Okay. Yes.

and both Ben heard me. You

the know per -- I to little I about then. -- per pricing. apologize drill talked transactions so sustainability to up. yes, prices, on But these more so bit I you little question So money units bit guys a I more caps. your going And But explore transaction a versus spend wanted the just on down of

the the So things? price kind the versus buying are back, out really the buying we're you? cost per unit feel thing Or unsustainable? feel I you Or would day. the you every in they're cost describe stepping more pandemic guys is And splurge sustainable that caps? a big parks mean, that are Is per Does people like buying. principal of growth How bit just to that they're this mix? per driver of a of in service that is this does a -- or maybe

Richard Zimmerman

on think but I the figure the of to one, they're and year, question how this consumer and they in is this food see doing this part in had heavy in not what fruits seeing look health, is out over your I beverage. this, a invested trying what just and park. When years, everybody our just year behave several at we emphasis is year embedded as we're we've we yet another not their when where

So significantly food. built doing volume of to are we answer serving that because quality higher facilities more transactions higher your volume we're question,

the so We the give rather much as higher They're than prices, going taken food much choosing. as haven't the we've and them the burger. brisket options choosing price as up -- menu at the seen we more buy consumer they're quality up

value. investments the So leads in average because higher volume is we're which we shift to continue But of the that's and seeing way make. up, doing of sheer transactions a that mix part to transaction we're

them higher volume, are higher facilities older make renovating to quality. We

experience dining really that built the are new our building guests facilities and ability speed are want. to satisfy for We that

food also to So particular. say you'll I won't we've lean into go And and seen -- will increased sales, in continue forward. that also see beverage, we're merchandise to as we on an I going emphasis and

do have ability to the higher our experience in-park continues spend, in ability generate quality better, provide rooted service be So a the volume. more to to think ability and our to I guests

Barton Crockett

excess The are constraints. I review kind versus for some to do could MLP repurchase are your what share just was constraints allocating us guys authorization, creates Okay. if partnership you limited on of share That's that as the cash unit? wondering helpful. to master repurchase a you again your an ability per dividend

Brian Witherow

Brian. Yes, Barton, it's

Board flow agreement, partnership the lot of for the how of terms a Within excess returned in there's cash to has investors. flexibility

structure MLP would barriers our So doesn't we a or really any structural if create were any corp. difference than it C

is the flexibility So there.

capital haven't, early paying rising was we're The we maybe before, being for use is time But be case. that see a flexible as investors the value value we would certainly a to returning don't the another out, given more when distribution last historically. interest rate there's that where in having We that noted lever the environment, the tool as in Richard this XXXXs. for believe time

now this tool that tool a itself. distribution turn can the off little than or our have easier We bit on in we a belt as

Operator

Our final comes question from the Chaiken. Ben line of

Benjamin Chaiken

flow-through the X with bit Let but struggling theory I maybe don't up a up say revenues just that's guess your that with in it's want I X confusing 'XX, are XX%. me back with, little changed but part has lot to to something perhaps in squeeze a versus the I'm higher is just mix here more.

the is I an be, see you back? part dial X they're I labor? you all And guess think your labor And look said back 'XX. signs margins of below in opportunity XQ, you Because is XQ to offset at until labor So up when there group then 'XX. X% just coming is would versus

'XX, as is to be Or an should So like to at day would operating the wrong so XQ we maybe it? we look assume the look per that X%? OpEx OpEx line, way the that up

Brian Witherow

the latter first. Yes, Ben, take I'll part Brian. it's

you by versus to seasonal so average on due So et That's 'XX. year, on you in structure difficult compare 'XX. compare. it's hours attendance is different X it's capacity operating these that looking later, limitations, system we of and world, the of and 'XX, it's whether hard, or spending not a less operationally we mind, to and we're and later. X% 'XX, the guest increase far Keep rate When still cetera, finished a years fewer we're were at looking days commented go still to lot to comparisons makes really shuttered difficult because markets in 'XX labor try in to the being where significantly level to when cost the is side some compare we X we significantly 'XX cost disrupted have hard constrained right? offset in at whole because that's or what was back again, hours years because a the compared But

they've different get comparable labor 'XX step probably we going system moment. seeing in rate. about very are than made as We're year to lot now the own, rate are difficult to up. probably the seeing to in those been increase. because to year. a big we really point hours this in the is rate last was a lifts about has our pressure compared an took apples-to-apples approached decisions because modest bit But we're system We I including in of industries, think cost And decisions -- forward, -- the our basis of those hours said, decisions As we It a labor last this how change we we pleased more close to that structurally little made year function been are about seasonal painful while have. forward going as others

work as there cost done. just mentioned is we're look areas. is inflationary in we job is not this we're curve the be as labor trying a to So good little certainly -- pressure possible. but bit, that environment, as There goods it even up a doing of strictly more in flatten to best of cost forward, seeing other We

headwinds we is but at. time they're Our team them. around trying there we came to they've feel It and thinking balance over of we're it offset cost of got XXXX. about and year They margin to can out really is the of path to mine -- built -- savings, last working right into on such that environment, because procurement but in were to where now a we just a this lot will think good team, XXXX out looking little is flow-through, an we our work the are bit plus, cut the get we procurement centralized their and improve for continue take over inflationary and

Benjamin Chaiken

No, no, please go ahead, please.

Richard Zimmerman

of rooted as say, value. Let that me listen, and We're our things saying put we've to trying keep sure our continue right to we just in and of of the the jump want we guest in guests labor got our drive the success system. to revenue. experience make and of we amount a is to the quality labor, hands a to parks, talk our can ways out our get cashless, inefficient beverage you take lot tell little more and like to the find We at they going GMs our talk labor, more that we food team,

trying increase efficient. to be But buying over to again to the the most experience. as season we're value loyal customer that step back don't So and our is I really they XX% want pass

year. as next we experience them providing back want sure get bring making and make we're the that we we think So about sure the that renewals, to

Operator

no Zimmerman, questions Mr. at you. are the further call There time. I back to over this turn

Richard Zimmerman

to be Until well. All thanks, continued progress the you We upcoming season conference down. next for your many on everybody. summer as look then, seeing right. forward Thank of forward interest city-led an We again, in apprised our look you roadshow keeping you, of Cedar to year. Rex, and everyone, winds Fair. Thanks

Michael Russell

contact our Investor department please If you have at feel XXX-XXX-XXXX. additional to questions, free Relations

Our next concludes be that Thanks, call our after early Labor third for update Rex, Day, today. will quarter followed everyone. earnings November. our in performance report by

Operator

conference This concludes call. today's

now may You disconnect.

Six Flags Entertainment (FUN) 3 Aug 222022 Q2 Earnings call transcript