FUN - Earnings call transcript Q4 2024 | Six Flags Entertainment Corporation

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Operator

My name is Novi, and I will be your conference operator today. At this time, I would like to welcome everyone to the Six Flags Entertainment Corporation 2024 Fourth Quarter Earnings Call. [Operator Instructions]

I would now like to turn the call over to Six Flags management. Please go ahead.

Michael Russell

good and Novi, you, morning, everyone. Thank is for Six name Michael Russell, Relations Investor of Director Flags. Corporate My Welcome to today's quarter earnings call to review for Flags financial our Six Entertainment Corporation. results XXXX fourth

our we via of morning, is under Investor of available News also release, investors.sixflags.com. Relations this Earlier website which wire service at a earnings distributed copy tab our the press

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

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

morning call Witherow. Six me this Officer, Richard are Chief the On Officer, Flags' Chief Brian Zimmerman; and with Executive Financial

for I'll call the that, to opening over With Richard? remarks. Richard turn some

Richard Zimmerman

and morning, Thank you, joining us today. everyone, Michael. Good thanks, for

the for more forward. shareholders been I with company can to to of be accomplished, moment year. associates what more this our what we work close As we out guests, and excited XXXX, of the pleased since recognize and past particularly couldn't want completion merger, I incredible take achieve I've moving a about our this have the team never

outstanding step EBITDA historical revenue fourth in margins returning the by and points, cost close modified boosted margins disciplined to quarter levels. management record quarter the synergies. of up target to results, merger-related October wrapped growth XXX all we performance by year another in we XXXX, capturing basis at operating delivering back Through our cost half meaningful initiatives, while a fourth and strong Looking back

a taking first drove by in days levels and our within the improving we critically demand important decisive finalizing merger, proposition immediately of higher, step driving value higher. actions And scores satisfaction guest cost

XXXX early strong experiences. remains demand entertainment Heading trends indicate season, for into the consumer high-quality

attendance year it up X sample first X% up size, and a is limited of season pass are the the sales months in season X%, the indicators positive Although ahead. of represents units for both

consumers quarter the at XXXX, start a goers Given general this and with showing park the on their the fourth and dollars to believe that our willingness our differentiated to we experience time, entertainment remains strong solid economic high-quality environment offer. we healthy, for spend

positive that this and to our expanded With outlook step adjusted function EBITDA representing of billion an billion as well, a for integration targeting are year, portfolio. initial $X.XX backdrop of growth progressing efforts our we $X.XX

at shift closer in area. the our provide look ask for the moment I address to Brian gears L.A. results, to me let Before a a financial recent wildfires

Our neighboring at well-being for immediate the and guests, communities. our safety concern the of was associates time and

are areas emergency local during critical used staging for proud have first who efforts. to crews responders and parking containment Magic We equipment supported Mountains

Farm Berry was directly Knott's nor neither that Magic fortunate are We Mountain affected.

any the In situation associates operating core on local supporting meantime, continue we will to focused closer potential closely, our to through monitor get our the assessing communities the we as season. recovery. on the We remain business impact and

to it over I'll that, Brian. turn With

Brian Witherow

indicators early a update everyone as for an providing ahead. our joining Thank quarter well begin performance you, today. of season morning, select balance the Good Richard. performance review with us fourth and as I'll sheet to for thanks on items before

XXX days operating fourth quarter, fourth legacy XXX from year. Let fourth the the operations year. XX days days me days Fair last at addition compared legacy days parks Six with partially days. Cedar Flags parks with the XXX during offset the start the at fourth fewer of to operating during by reflects This totaled quarter On a in last operating consolidated quarter basis, increase quarter compared

Xth in and shift XX. fourth began days on legacy XXXX calendar decrease September began Cedar This Fair operating XXXX quarter the to the quarter was of due XX, on the as primarily September fiscal

on Moving performance. financial our to

For last visits. decreased the Flags Six XXX,XXX of and fourth fourth visits quarter, due in of net of results quarter we to $XXX Fair million million Cedar attendance included $X net on revenues the generated period. operations operations. fourth quarter visits legacy compared revenues by XX.X million the from revenues million attendance fewer legacy during quarter from These year, to million Fourth primarily $XXX X

decrease direct operating of Cedar the period. shift and legacy fiscal our On basis, Fair calendar been fourth result attendance the events. The would of attendance visits, was strong comparable days in the number calendar have quarter XXX,XXX fiscal reflecting up for October demand in the lower a

compelling our entertainment strong. with at remains demand we produced offer our October these Along the support outstanding Six numbers legacy belief that we attendance Flags the results for parks,

Fair per trends to by spending an guest reported the per is Approximately year. at on Fair food fourth extra Flags higher to beverage, last charge in-park merchandise the at Looking fourth Cedar the parks representing spending of quarter increase of the and with of in legacy Cedar $XX.XX balance legacy the related XX% operations the parks. a quarter to and legacy compared was X% in-park guest cap for the the period In-park impact at capita Six moment. products attributable increase spending in

worth quarter, underscoring this reflected trends from carried average X% transactions the a increase our noting immersive long-term per over the third a in This tenet and quarter, the of performance metric entertainment offerings. during guest that spending thesis. our momentum guest key of enduring appeal a the of core positive was by growth It's

transactions direct million Out-of-park fiscal than year, calendar revenues Six $XX Meanwhile, total from full revenues legacy parks result average out-of-park which Fair for the operations. the legacy more with the revenues Cedar Flags XXXX. $XX million, X%, by For up guest compared fourth at the per decreased the transactions from operations to X.X transactions quarter totaled million, of the $XX Cedar of in million shift. Fair $X million, included legacy increased

$XXX and million expenses million of cost costs of were quarter legacy the operating expenses, in Fourth million, costs million Moving SG&A $XX of expense cost sold. comprised from and totaled $XXX operations. quarter expenses the goods Operating $XXX $XX of of Six costs operating of Flags included on front. million which and to

by Fourth the related to fiscal parks. Cedar at Fair expenses $XX Flags related Cedar expenses The parks, calendar decrease $XXX quarter Fair decrease operating shift. partially Six in operating million at legacy to was included a operations in largely million legacy legacy expenses operating offset

offset from offset at operations, less decrease operations. million quarter in a reflects slightly the advertising by and Meanwhile, million integration-related Flags quarter in $XX fourth expenses legacy $XX SG&A SG&A expenses $X merger spend fourth Cedar higher million Fair legacy Six of decrease by costs, XXXX. in included This

quarter related The the to operations. Flags legacy $XX $XX million million sold of Six cost fourth included in of goods

As cost points. and games the of The of at a increased majority in inclusion XXX related percentage of food, Flags the sold of operations to basis merchandise goods increase the revenue, parks. Six the quarter legacy

the million to and results. increased meaningful park quarter XX.X%. believes million, year, Turning modified fourth are margin while to to $XXX margin, operating Compared management modified XXXX metrics, basis EBITDA two $XXX which EBITDA last fourth the measures for level adjusted of points EBITDA to adjusted of improved quarter EBITDA XXX

legacy from from Flags the and operations XXX-basis adjusted Cedar from XXX including legacy point fiscal a increase million increase related margin Six the Fair in operations operations. and Six of The the legacy point reflected a EBITDA increase to increase legacy in modified million calendar XXX The point $X Fair EBITDA $XXX shift. a basis operations, impact increase included Cedar basis Flags

we've improving guest we on margins. to operating calls, As demand remain improving and earnings spending, on in focused driving efficiencies noted prior addition in

operating approximately through of in to efficiencies, scale economies from XXXX. costs. $X pleased from realized duplicative gross the $XX are our million the another Of chain in synergies and synergies was achieved, $X have million came labor eliminating supply and of result resulted $XX overhead million savings in We total million cost other

levels. and monitor. improvement performance has at per both drive effectively guest EBITDA time This these while teams scores closely in resulted that delivered same We've guest satisfaction to key two in guest, synergies higher our continuing the per attendance metrics and improving cost

operations adjusted per another successful During XXXX, ability of by to savings the in our initiatives. execution merger. in cost EBITDA million fourth deliver Cedar XX% improved ongoing savings In cost the guest reflecting the Fair legacy $XX from our we quarter, planned are confident from

overlapping and of will of integration better a from our portfolios. million our terms, systems the redundant vendor and come infrastructures of technology approximately Anticipating realized structure, continuing driven $XX to and will negotiate scale our leverage base that to $XX rationalizing further processes, of elimination million our further will ride of streamlining the million rightsizing and org $XX through park be combination be by

the our for We efficiencies throughout will strategic implement cost to and year as initiatives. toward cost our opportunities look additional continue market delivering these the keep progress to we on updated drive savings

Now our debt, July billion $X borrowings company's senior $XXX in mature million ended notes million and of debt, of sheet turning X/X on notes, with maturities outstanding revolving fixed cash in We before which approximately cash no outside moment. significant credit to $XX approximately gross XXXX. of facility. for $XXX the and of the have year, in year Of on we including this our is long-term through a equivalents million hand balance and

Six at offset of includes providing us Fair of end capacity, $XXX by at end the The Cedar on cash year year ample $XXX financial million legacy legacy with forward. million $XXX revolver parks. revenues flexibility liquidity Including the million of a of hand the totaled Deferred end million $XXX with and parks, deferred at revenues the of Flags million, at compared XXXX. decrease going increase $XXX deferred $X million at of the totaled the revenues available the

decrease regulations. of fees legacy California the transaction as revenue of Cedar in slight a long-term lastly, the products, of The decrease and amortization X passes deferred parks. sales certain Fair of related changes revenues parks And driven reflects items, annual by a the in in in season state result elimination deferred at

spring pass that historically start full primarily to than we pass Richard year. XX% the represents a timing mentioned, The encouraged of modest sales be more in cycle, decline the sales lines, sales. of which season is as can during Along program recovered the issue season those acceleration critical by sales are

increased sales over attendance are working parks in higher parks. and X% Six our at year the lift of The validating at our legacy for those driven the Flags the primarily initiatives by stage levels that first has setting unit been driving X sales months

Regarding our CapEx programs.

we $XX the and million the fourth parks at including spent million legacy the expenditures, Fair quarter, on parks. legacy During Six Flags Cedar $XX capital $XX million at

legacy by legacy $XXX $XXX to million year spend Flags the to the at $XXX million of capital this legacy which was CapEx million year, Cedar invested Flags full Fair parks at total the Six brought parks, For expenditures full Six before closed. merger and

calendar legacy items million some Flags XXXX, expect on year on expenditures spend we total at will capital level Six million, parks. of the cash including For $XXX deferred $XXX to investment

continue to we Going forward, cash our look for flow. we focus company's most ways as will the on maximizing investments efficiently to free capital manage

XXXX, operating X,XXX planning are combined For portfolios X,XXX XXXX. across in days additional we modeling total the to operating similar the purposes, days, in

For of projecting impact the of adjustments depreciation full amortization legacy reflects the $XXX XXXX, and year the we approximately a merger. Flags result to fair assets are of as value Six million, which

million lastly, cash interest cash $XXX efforts, to some tax after of $XXX are million. perspective, million. XXXX annualized payments of to flow million And planning cash in $XXX $XXX annualized from projecting tax a additional And we payments

flow cash manage moderate. to flow the within strategic consistent expect long-term cash the our our to CapEx continue accelerate as needs of will we And grows as free and growth objectives tightly. plan, with We EBITDA

additional the color turn EBITDA adjusted some XXXX new call Richard, let around to back I me guidance. Before our provide

on achieve and cost While factors. in and have macro are the place we targets, growth two confident we are an we keeping eye savings our to revenue initiatives developing capital program

sales our Magic our overall although our recent any are closely on Berry any California we performance of subsided, could properties general in the California or Farm have events wildfires residual may material EBITDA highest headwinds an XXXX. impact two pass First, Mountain have season have demand impact and these monitoring on and Southern are on in Knott's parks.

is the FX of impact assumed compared have on could currency Second reported the to rates, outlook incremental results XXXX on we've to on $X the around $X from foreign exchange million our parks. approximately Based EBITDA pressure rates current million in XXXX. exchange nondomestic

However, our assumptions our dollar this could reported impact year. further any from variability significant U.S. results

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

Richard Zimmerman

Brian. Thanks,

long-held and questions, reinvestment call belief requires been disciplined, we that the and I lies beyond. Before with we open moment up consistent our thoughtful perspective has unwavering this focus my including It an the the fundamental resources. in in leadership to XXXX want guest-centric take to for have industry on provide sustainable incredible a of opportunity ahead, factors: two what growth

To spending to for represents designed creation. that operating at potential experiences. guest deliver entertainment growth significant sustainable end, shareholder optimize efficiencies, is while The and attendance improved our flow and growth strategic ensuring and higher drive plan cash world-class our is the we attendance, all biggest value opportunity parks for

XXXX The increase the to multiyear demand, enhance the are penetration capital investments experience up plan program that of designed and make our portfolio. improving rates throughout our a guest market first

In and and spending, driving are guest our improve of we addition increase attractions investing most efficiencies, consumer at parks. initiatives exciting some profitable points in to new largest projects intended to back-of-house pain eliminate demand and

new introducing we are told, of properties. major attractions XX our XX at All largest

the of adding world-class of and Thrill highly the X, record-breaking is Point coaster anticipated a thrill enthusiast return Curse with addition two every Siren's to called rides to needs experience. its of For example, rides Top collection coaster tilt Cedar

America Wrath located years. coaster, and first fastest new dive Six be park's and coaster Wonderland mountain structure. of the launch Canada's is than in major AlpenFury, iconic Canada's world's more Rakshasa, Flags adding will park coaster Great deepest X in at introduces tallest the the which added

multi-launch England Rapterra, Accelerator. and thrill straddle wing its unleash Flags rides, Dominion introducing Six longest the launched tallest to first New is world's will called of region's the collection coaster coaster. Kings Adding Quantum

high-speed, Rusher, The park's gondola free of of potential as will that the look Adventure a super to we Velocity, add high Six several coaster, Great launched Gold market. spinning, Flash: to very over which a rides Flags unique area. Six will Vertical Atlanta plan Georgia the be greatly open enhance tap attractive we elevation debut Flags will first the will new the park frontgate ride to full the boomerang

families Universe Flags parks expanding for at Flags Six we appeal and in and offerings Carowinds also to base, DC the young family growing the season over Magic makeovers Six Fiesta have water Hurricane Six Flags stage our And at help invested and of both Snoopy Camp Mountain the while lastly, transformational at to enhancing expand Texas. the Texas, our pass set in Harbor and

tell the hope our efforts. can why provide It's about and a lineup, capital want are I I ahead. update strong ongoing on to an you we season so also optimization excited portfolio

and Project optimizing with properties, our our on a Accelerate, call, our asset initiated earnings narrowing review undeveloped part risk. comprehensive last and land As of management's the base, as we we of of noted including reducing goal excess focus

are growth we We have long-term completed strategic our initial review our circumstances. having identified to under and properties that would divesting properties less right objectives, that consider critical the

These isn't land parks well plans. expansion to as of excess include smaller as the that future noncore critical undeveloped some

produced pleased Richmond, of example, that process our we an in I'm adjacent efforts As marketing undeveloped the in park are land to Virginia. And to currently say interest. have these significant

XX to done, we next the a to in Although within there will months. optimistic is XX much our be work are result that discussions transaction ongoing still

we that will shareholder Regarding evaluate and enhance to transactions options we certain consider continuing smaller are over noncore time, value. properties,

we our at season. parks meantime, of the are this of operating In all prospects the excited XX

valuable will of We the pursue assets support to contribute but financial will unique the initiatives enhance operate. continue our in performance local they and not communities further which to only results, that to these also

already shareholder driving better free attendance goal to of our of -- efforts, long-term flow. potential in decisive which with all ultimate and growth value. higher evident initiatives operating in satisfaction reinforce in guest our of cash combined steps our delivering portfolio our confidence in levels margins, increase improving are we scores, those Consistent on unlock impact positive and the full taking best The is of

showcase tremendous strength opportunity and business to our at backs, resiliency the XXXX. we our momentum in model of have a With

the season, As peak we we confidence ahead. with head excitement into do operating what lies so and for

see right We have to we strategies team and the success. clear and in place, a path

alike. associates We Point. our We momentum and and as our May are season Cedar XX guests, ahead as Investor established focused upcoming at building Day for shareholders for to on XXXX more on on outstanding we've outlook our the sharing season strategy long-term forward at details the on look our an well delivering

This the provide transforming enhancing combined our initiatives an look event attendees our and will portfolio. at how with our across operations are in-depth strategic performance

department additional weeks. the coming Relations be about Investor will Our in event details the providing

open call gratitude during I to period sincere XX we unwavering this my express of properties up to transition. want work to take resort the Before as teams questions, hard moment for dedication all across well as and pivotal their a our parks our for

local service supporting of and the our success. during extraordinary. guests, driving responders passion short of of commitment California the our exceptional have IT delivering whether wildfires, efforts, millions Their forces or Their been systems seamlessly to first are nothing integrating

concludes our prepared that for open the remarks. up line Novi, Please questions.

Operator

[Operator from line with comes question of Instructions] Your Steve the first Stifel. Wieczynski

Steven Wieczynski

about year, or Meaning, to perspective, you're we per side from for things, wondering the You of are get this around of us So some metrics could us, Richard kind that some attendance, you're we're help there. the how assumptions the your us are if embedded think thinking you caps? to help what guidance range? good Brian, and about gave guidance think thinking I cost so as high-level what's embedded how of about just about a think of already

want the in that you that XX out play target point. be I sure still to million attendance for laid then at And XXXX just this is

Richard Zimmerman

good Steve, question.

some Brian Let then jump just of comment specifics. me the and on can in here

us more being possible, prepared about -- back focused and market about opportunity to an line which we're think As and we drive the lineup, in get my I growth step understanding our top revenue gives the capital to this driving I -- on. think and as as capital while I remarks year, what penetration, our articulated, need lineup to think efficient

quarters, making year, getting the our of the in and is shows I crowded. longer. think the think them parks flow-through more quarters trying Everything about higher half parks up into to back leads EBITDA more tap Brian? to that I growth. to comfortably We and crowded and cash third doing comfortably we're free flow considerable during revenue biggest levels, think people come As the the second to staying about often, more good

Brian Witherow

Yes.

comments, our build in patterns We on one you be we don't these any and weather to expectations that of I tell events. for year going would Just sort are build add generally plans, go to to high-level are in assumptions Richard's of normal. Steve, extreme

doesn't But are going sunny to be normal. is be patterns to mean either. the going day XX weather It and every

Now portfolio, also half of I saw no think meaningful over risk some broader mitigate of that year, the more we macro the We've the economic assumed there's that consumer to in diversified environment effects weather. of or second downturn helps as with does the come behavior. the a

that And call, those some of offsets your don't assumed said we've then And relates as generally cost level normal a stand. a inflation. point built this comment or it from as in on inflation expected currently significantly they where -- about there from plan pressures, while we're the what that decline we is are a FX decline we've pressures rates, to to

range or the the low to up end we've get that those allows down think of of range. provided the end I So each fluctuation and for high both the some things, to one in

Steven Wieczynski

Okay.

my that kind okay, -- Let going of so second to question. me yes, be was

weather it kind it Am like, not. But differently not from different that thinking stays get is to normal. me neutral. see a There's guessing right? material kind so to about Let range, okay, any the of I'm little ask FX that sounds you I essentially and a color. of -- of give California, impact bit if midpoint

here, get kind you you're better then way So of probably talking range, the pressure but FX think bit spend little some from a is the from end to of low patterns about to lot in, get probably maybe the expecting. that there's California are than low the end high we what end, end? to that a weather and kind of high I'm the how if kicks

Brian Witherow

Yes.

generally accurate. I think it's

in and Richard VIP from guest not And lead a et attendance. longer like of past, real to consistent step talked stays, for what demand crowded as a we've as length upside noted, from the parks the only is but a functions higher think larger beneficial per perspective highly comfortably mean, of front-of-line and volume it's opportunity lounges, I with leverage been always spending has cetera. beneficial because that attendance, premium I Richard higher said, growing to -- merger the level experiences days, perspective, in about caps, passes, the articulated of cabanas, ability

describe The spending you guest I as So more pretty is think into well. is require which growth end of way upper accurate, to out translates that going it, attendance, more -- the Steve, right?

Operator

line Your the next question from of James comes with Hardiman Citi.

James Hardiman

to brought it that creation change wanted parts? comes the higher than of maybe thinking put the So through I optimization with smaller up of be of that it, What's monetizing discussion Richard, some framework? some how is terms part Maybe leverage about, those flows of sort your are the walk in willingness value some portfolio fact Does you parts? you're to pressured on to the when to the touch efforts. as cash us and you of normal going ways

And in contribution of long it? that look of made a lot think that of sort a the and to gold that and of low takes puts how Basically, of in terms the value made you willingness mine ways estate America, EBITDA your a which sort was. from you you about sort park, individual ago however at just had Is maybe high parks back a Great real it monetize. monetize that I to for deal and

Richard Zimmerman

becomes things of optimization accomplish We're a the over A few years, James. of next lot things decision. strategic lot -- a trying to portfolio

valuable as assets. parks very starts that are unique are don't about we So They often. very trade it think Most with irreplaceable. understanding these it, and

saw estate was As with America, great Great real there we value.

or us way a bit we is that Virginia, like that can more available find the comes a little Now there's generate generating park in unique cash that's EBITDA populated. to that not sometimes circumstances near cash Richmond, areas But forefront are for of to land we've excess that flow flow. our where usually got

XXXX as XX the we Toronto all side, in We back unusual. our on did Not that of Cedar back the way north in well legacy acres -- park. XXXX sold some

So we broader what in plays the as the sure make each we through role portfolio. we think to want framework, understand park

we this As the is potentially reducing said, the we geographic of like but part diversification. complexity of operations, our

this also So decisions optimize get need to going that think and the may make that that do for forward, we're get the May mind sure value going as laid goals keep that what all to through, we in strategic have to potentially will accomplishes we out make we out, whatever we financial and but going XX. we long-term and we forward we lay and that we that on guidance anything

Brian, anything to want you add?

Brian Witherow

just I and it again I maybe narrowing right, optimizing of base. about No. optimizing that overall the would was the James, focus, asset really management's exercise, emphasize focus, portfolio that risk or reducing the mean,

our Flags we've Six As true on side on talked Cedar relative of of -- and to about portfolio, past, it's portfolio. the the the side legacy in the just the

a generated group evenly is of XX-plus XX XX of across parks. locations percent EBITDA gates. of the spread the from smaller the not It's

are think about, are tapping highest and potential, to to as said, where I the Richard And think the important. be the going our narrowing the we opportunities so, growth is focus as into returns

a very attractive long-term notice the noncontrolling terms thesis. Park, in of Atlanta to our that saw market as take that's part And of in us the interest acquire step in outside the is Six the Flags over also growth you Georgia,

James Hardiman

front? so of of the been synergies. then million if $XX around lot that Maybe realized moved time, cost there's at us discussion revenue number it identified. on Got anything, on synergies of an -- that been once of has you the a $XXX million that it. far was What, give upon a least, update all? at Has And

we timing? synergy called I about that's think what going be popular it's think maybe call indicators the it of And all then pass, early how one thinking passport How you ultimately opportunity, be specifically, potential contribute? and should can to to more out

Brian Witherow

Yes.

X there. synergies, points guess, As to it make revenue the I relates, I'd James,

much not et system you're on to closing behind back the cetera. us is opportunity integrations, sort getting until maybe mid-XXXX, because ties side First revenue platforms, of merger a put ticketing some there on of so the synergy the common year

Unlike could a of cost on chunk a where we was little synergies revenue. It more up challenging at them. midstream, of good the sort least pick

So we confident number comment, numbers. of attendance discussed still what I'll upside opportunities it of and combined than in in and focus revenue much that real is, the I earlier the an those SX. opportunity $XX merger the But the tie that back was synergy are portfolio, say represents is optimistic the would more to which million

was but still more Probably the you maybe very to early. half bit tied, pass. Early little And for Park encouraging, than half this there out a that's it's I all or right, Season first as of for been that add-on the noted potential the the say year, would is portfolio. combined has adoption

more work done there. to lot there's so a be And

focused over what attendance that that really the for and and that. think is next year systems I X, mean on, full combined to value again, of what So team the harmonizing we're initiatives trying is But opportunity be that or extract on the something portfolio. going like broader the focused can most like to

James Hardiman

I if just just And just it. may, Got clarification. one

that million in built the that As $XX is laid think the What, out either if into whether Pass. about synergies I anything, or XXXX? All today for guidance it's of Park you've from those

Brian Witherow

is see Park Pass XXXX. other other growth for the from initiatives attendance modest. the we're highlights growth the we that, the of began the behind and still More 'XX, to process the is some coming -- of thing capital half that to that that of in All that's the second the in is Anything we're Richard more the 'XX expectation ticketing through the of very harmonizing of even systems program walked related that expecting driver in given

Operator

JPMorgan. comes question line next the Matthew Your from Boss with of

Matthew Boss

the attendance quarter a And could X% you that of whole. attendance on in on versus saw to you top XXXX cadence the fourth line, as the Richard, So in elaborate October? just relative

takes Any how in drivers about growth and Just volume think puts to 'XX? and caps? between best per

Richard Zimmerman

quarter, December. as now fourth benefit as again, little portfolios weather said, bit and and the into geographically pointed When we traction, our we I got diversified. on front of were got choppier combined November Brian as a out, the But the about think great we

So weather areas. the has concentrated less of impact an different more overall on in portfolio,

the good our we in you're WinterFest always events our brings saw, pass us helps to also We winter as seen, of go different or events, Park as appeal, support market Holiday our It's a season through kind depending in. on sales a we've which the period. audience, multi-generation response

and is attendance of What first in X% I'm the as we'd look and months, do, early the most see pass as as in encouraged want starting watch we to 'XX. which season into day momentum I by up X% about to sales, that in we couple fourth see, momentum, the continuing particularly to go 'XX the we're quarter in see what the day, at them transition we is exactly

think get drive opportunity we markets, where we capturing which, got spring higher, keep as that opening we'll to again, merger reiterating, think market is. benefit our we've into levels things the respective times, this potential, is up real think the lots the that's we the most will attendance, attendance our start and of I So parks, in in each stories of tell the driving of

And with interest we the lot what But of time, in as of get potentially I we've market get that. lot the share be lot a intrigue we got new. can there's into parks a opening again, may with as we think a our into spring up things of

business and this say -- model. our always about would I So

better math pass, higher cap that -- a bit the pressure higher the that's attendance to but XX% The may more we because on we're higher-margin and admission what little are that's days the when The guests, those levels, already we per our revenue number and open, performance. EBITDA. XX% works, the are the XX% the can drives better put season the the the attendance how people really

Matthew Boss

curve, the Great. Six revenues to cost us OpEx operating relative side, the And today thinking about cost you growth just Flags, where then, we're see Brian, on as do legacy multiyear? multiyear thinking expense on

Brian Witherow

Yes.

gotten optimizing we closed had focus where we into levels our gotten Cedar the the portfolio, back past -- -- to towards demand. structure. attendance coming clear before to been our playbook when side, had point year the reestablished prepandemic look So We at in the turned the merger very had cost that has XXXX back nearly Fair we on we've this and

cost X/X We took X/X probably of in at XXXX. our Cedar That we forward, was $XX split legacy million mentioned, parks, synergies maybe about Flags steps parks. Six as big at the general those synergies of

to so done that on be there's work more And front.

You perspective. one a do guest from can't nor to all and swoop you service it fell get want in

Again, come as of target delivering get of gross And $XX about, so fits leveraging from XXXX. it scale. structures, lot into that, our and we the cost going is million of into a synergies optimizing as to talked we field cost

efficiently in volume the they've have our to Flags bit a little probably As driven will going in feel on right? we portfolio, And it have, parks, plan parks think pressure point, a skew again be is to center more good that in and more -- been more at is be any with we heavily our that view, it there, on Cedar problem about the place. will but this Six run so pretty the confident Matt,

of some have that we're high even better variable in type or A growth a manage. is problem end cost attendance we the targeting, the what more that's because If we'll system at than planned is

Operator

Your of from next question with line Stanley. Yeh comes Thomas the Morgan

Thomas Yeh

opportunities crowded, updated the you also you margin opportunity the calendar that to days season to as relates it thoughts the EBITDA to wanted would previously, attendance get the the mean, I positive. operating on I pass your but at of talked about it. be value add and piece think enhance mentioned I holder comfortably

for I versus year. think is a last days guide number of similar your

and helpful. around So the takes puts calendar your be dimensionalizing would just maybe

Brian Witherow

few third you'll a strokes, to added see broad and being more days few less the and in the second quarters the In fourth quarter. Yes. a days

were So early in some we're the days some hours, lower-margin where parks on. little but summer the also adding meat dates fourth bit shifting and closed a the establishing out longer taking the days, quarter the some in of of calendar

Thomas Yeh

Okay.

of suggests day seems. you're getting a the balance basis, So higher still per value net on on that days a that it basis,

Brian Witherow

Correct.

Thomas Yeh

sold? an on then Flags still want on? a units the just Is season Six end Okay. for maybe out, a on you to footprint. pricing pricing for Or is balance, pass consistent view pass the Understood. the on more season that And base just on up pricing. think, different earlier growing rolled higher on legacy there you maybe mean, update I I blended method focus

Richard Zimmerman

in and the the Six there us -- the We year-over-year, you gives drive power. the as prior that our volumes, That's the not higher there on one year. try was always But this same if every things markets pricing capital side. where evaluate of that goal legacy we approach take look at the you in was price can. acknowledge lineup year, We

We're the there the in be. period for are higher Flags even terms So broadly program months, X the all and price price the those a again, encouraged look in markets at time. most really a the a X% sales time, But we Six trends, on period of as will retraining be of up really that those in the for going recent would what rolling over by lower a marketplaces things first across of markets.

just think pass sure portfolio, there's as our that so we And -- the come I success. pass. longer. earlier, people out make as think the environment said stay want we just reasons, particularly many the reasons consumer I buy often and more reasons we of that many about we where come has lots to early, to choices, to an be in to out driver understand season so But of continues There's the combined

Operator

Bank. the Deutsche from comes Chris question next of line Your with Woronka

Chris Woronka

bit change remind that open will parks there's to of buying things might see April, terms speculate -- of or in of and holders legacy follow-up some just the assume know it in season happens get Six us visitors that from in be year? might holders after they assume you little been possible these Six Flags you a their mix delaying you if the question. just legacy Flags that the don't of the uplift reasonable this a kind and you be pass it's to -- the to prior might what to open later I what Six decision? this of So want in pass kind They But of do parks be to is get maybe Flags can when know a But pass sales. think the ownership

Brian Witherow

to think just maybe a I Chris, leveling for point. your Well, up second,

side, terms fall/winter we're the timing, seeing right, In off to park. fast it of start, by great the And we get encouraged always to on we like it's the park differ said, early sales, can of to we're momentum ahead to as game. and Six get a

portion is about parks But that the can but sales as spring some be fall/winter XX% often to it's sales as happens XX% largest the XX%, as of cycle, or period full of said, much sales critical the which during the much usually full of for That XX% or program program. of core sales. the XX% as somewhere the between

that's So most critical.

a mind. think is I coming with we're a historically seen We spring online. bit advertising. consumer are more points. proof in any the looking see more decision, driver bit parks a little we've sales, such is season for front back little in The momentum in is are guests a pass that that of what market always We're amusement reason heavier little

the consumer all we of within there's open to XXXX points that a that bit some and And start to cleanup be so were the we things become for the things doing, buy a half proof in painting of parks, to made that more little the and that staying are do reason of longer, we come. going work the changes attractions, believe rides, second et different, of those cetera, operating

of then that and combined there, visits Now converting ultimately only per our presented pass. visitation, the it portfolio back talked not teams We've the more pricing. the tie are to between the opportunity will between about average that question for into passes, the but key more selling also about Thomas' delta sides two

we're parks, about to Six sparks big at our the is a Our opportunities excited really ability grow Flags pass the because long-term at season delta. pricing -- particularly there

at season average and a Cedar about it in $XXX to big million, the the low park mid-XXs. million. Flags Park average the is talked it's in delta driver We've pass Fair price $XXX visitation. publicly, that behind portfolio, our in portfolio a the And is Six

X a X-year fix So of the X-year this story. a growth story, isn't growth is or just this year

Chris Woronka

Okay. I that commentary. all appreciate

Just trying the on question. as a you now. you are in in a -- this Difficulty] the do the as for provided CapEx of you beverage buckets of little open the to [Technical kind follow-up, can guidance structural versus in to of maybe And and wasn't you food April, where break 'XX and think catch-up the terms begin the kind outlets on you maintenance, terms some bit Where you've CapEx think is do done just over like are of you're of that changes things parks a maintenance this the down year. make some If years more for those of that?

Richard Zimmerman

development that we've Chris, as invest well matters have the what we seen one their much things of the as have consistent performed arc of where investment in. you that parks is that over

there's our get driving service guests the to focus evolving we We So things show been changes, as something in-park the We to 'XX, sure 'XX, folks landscape. come key making and We're the revenue. things out. driving put certainly into take redesigning on in, we're about ability we're to it's they we the park think ability that's making that 'XX, new that out. once our on

pleased that can the So as we say what really I out to about increasingly think it, excited 'XX. the with I lineup. in we're I'm 'XX going capital think make I'm of 'XX in we get would and changes for

value. So in consumer to we're going in all the the show portfolio, Six, there's great think that of combined not the just our markets, I

listening value equation consumer it, guests, the to things go sure still -- value in Brian driving value they'll key And that us the to of credit working mind, a we're that again, said, for doing our back as making the create over investment getting the our give sure always what price higher we're investing in is while research on that I will that and attendance drives term, Keeping decisions side price long lift. to that value. perceived making that's and

Operator

Securities. Michael question Truist comes Swartz next line Your from the of with

Michael Swartz

about grew just XX% I Flags quarter. legacy Six in the the correctly, attendance parks the Maybe think math doing year-over-year start, fourth to I'm

understand I what growth attendance around like-for-like looking you any think day for way that something days XX, like holidays. were parks the a Is -- extra there of basis, like? on look the As there XX I operating like those said

Brian Witherow

Yes, Mike, it's Brian.

side, driver. the delta was there not Six the main operating if parks the the in On wasn't those day portfolio,

was well. I offerings the core the think received event, which we attendance what would plan the very lift driver the of and in expand execution Fright great to of the -- in of invest successful a was say, heavily execution Fest

lifted were the the country, portfolio. some October portfolio the the just fact across -- all That was X parks by in across the of great weather the that -- this weeks

So encouraged. we're very

pretty Your numbers there. mid-teens It close. a lift was are

bit normalize talked we fiscal was a Coast. Cedar at by weather, on was like was calendar of disrupted increase. inclement about the particularly side, the if a parks. single-digit Six it a lot little XXXX, you lower East And October shift, on our The high the Flag bar

parks. of comparisons a And headwind so that our wasn't our at much were Cedar as weather-wise, favorable legacy

those that about pleased really parks. at we're increase So single-digit high

Michael Swartz

And the thought, in many Street the in sticking we Okay. caps I maybe have what with -- came Great. than softer think a little per may thought.

issue, and there? factor currency an park puts well? takes mix a Was the as was of some through walk maybe Just

Brian Witherow

this admissions, that case think, in channels. which double will when see lot play lift, say It in digits admission Richard cap that things, always parks comes I of the into coming of earlier, or strongly attendance when park some you down performance of that right, is Mike, of those and October to lower kind mix I mid-teens, and the alluded up to, the a Yes. is can Six anytime from like per is near month a it.

have, that to great admissions attendance revenue it maybe on more groups. put don't per but pass, it's It's pressure say way. to It's cap. season I and bad mean -- does a That's in

reasons lot we of articulated little a call, per we right? So cap the But on we earlier bit we that for as admissions saw increasing, saw spend, said, of a the in-park pressure.

crowded, premium The experiences. They more buy a stay spend the a longer. people little when more parks they stay longer. They bit being bit

Mexico. in that a bit of our And Canada and favor. FX see around worked little both so did of headwinds We all in

is in of with prepared rates, consistent that's year. we of where ended call the where part know our remarks, from what And my the year erosion the began exchange terms we where during that comment there we

see stabilized, Now XXXX. it we as hopefully, but goes that's into how we'll roll

Operator

David from Your Jefferies. Katz of question comes line with the next

David Katz

you've a Two ability data about use? know and to of more perspective with to talked you love I of quick technology items, these productive little to that I'd ones. sort on your where are some respect but far put so and capture

sort just portion how a going back the you And my much and so include Is question. to one not then Brian some second guidance, does question of thought new a and is normal in abnormalities of this that is there that of snarkiness events, for And for coverage. any the which not intended weather about just wondering our includes zero that?

Richard Zimmerman

let the one. me take Thanks, I'll and second David. one, the take Let first Brian

merger. that into the to for this -- we our years, a things get one business completed look on coming intelligence, out As building what at That after very is merger, of on, several the can data, last priority has our making the we we is about we sure excited focused been reliance we're data. the

combined the of every have data that we're the hold mid-week, harmonized found data evaluating business type the way systems, in a extract we all we on Even though all the everybody we don't week weekly on sure same portfolio. performance our to and meeting across of same data same the and make

us. been a that's priority for So

making new satisfaction KPIs We ability per to the drive XX we ability sure the value. drive guest, to our average the with We're using that years out NPS, OSAT, revenue we're that ago, business. balancing guest really focus scores the on didn't now transaction with our transactions are

Brian? science how the I that we around So analytics the say embedded to our we've cadence we through and would as operating -- that into progress art and season. continue 'XX. weekly and on Data go in going are to we're decisions, the an make both it make

Brian Witherow

what earlier assume mean, And some to normal I from midpoint guess, is we by David, as Yes, to it let would the clarify as year perspective. headwinds have operating going a The of from me our weather, range comment. weather we're a that, relates my characterize we weather. would

rain ideal. going And we going in to always not average be The portfolio forecasts a aren't we to as going that favor. helps days. much out. more It's to It's on tend to a noted, diversified -- mitigate our themselves now as risk. be that those company, think diverse geographically But in combined

is We towards when haven't in is get and range. end predict hit. of we going ahead like we than tried extent know was any historical To sort hurricane right? we to of they're be October, backdrop weather which mean, smarter the happen. we those market be our to What hit tend trends, the going it's things is and to extent that a to the the where do weather that you lower one saw To of performance pushes better the record outstanding. October that I can

the play. perspective, that from upside so into And comes

So when reservations, thing, on so comes visitation. front, other that's it focused to all that those I growing things how we hedges like would weather think group are And I season about weather. natural hotel bookings, say the guess, last is we're think David, pass on -- I why sales,

Operator

Your next Dove the comes of line Goldman from question Sachs. with Lizzie

Elizabeth Dove

Day shift day a Year's dropped whether for fell like operating this, from and the Sorry Easter, on line calendar quarter, any that. impacts, if when year, thinking second. New leap missed like my But the that's just I've just aspect first things about

past of kind that shifts trying I been -- year know a Just over have bit. of of waters think a the calendar to there's the muddied lot

kind in Just mind should bear the quarter? for first what we of

Brian Witherow

it's Brian. Yes, Lizzie,

is I we to past say that calendar what guess year. like at say can comparability I we fiscal had excited any very quarter I'm this So top issues have the don't

a that's go So year, make hopefully, any in easier going through. some little said, we shifts. as there's calendar That always to life bit

Easter from QX. later going fall shifting year, to this is QX to

Just later -- bit. I deeper at has starts maybe would a bit a us as timing lessen little get historically volatility with benefited that weather say calendar, level, to high a into you little the

much parks that markets aren't of a don't like our or California of always weather little That Early from the bit in fraction timing parks of of put because full Texas. Easter in at want are the a handful too to more again, a said, perspective, I located a particularly emphasis is on portfolio operations. that Easter challenging it's

we first we to By should update are difference. April, provide results be any time out where of through those will position So timing or which the hopefully it's huge quarter a not wash announced in an provide guidance numbers, a issues. on

adding have the we're As days of to year of taking We're again, we look more similar at going to going of focus -- similar to the year, least balance operating the times have the at is plan days. lining times a year. fiscal valuable number higher past less of a going valuable think But you're and less because at comparison, up. of out this I see than you from is risk, year the quarterly noise to the days calendar did

Elizabeth Dove

cap things, about like Difficulty]. That's helpful. to go thinking just legacy Six side [Technical the Got And just to Flags it. of back again, per the

it's X million revenue like attendees, revenue, of million cap $XXX said, you've down what per total on based think I X.X%.

You was said up. in-park

that high down correctly? I thinking So think somewhere if the range, single-digit in I'm was imply would per admissions that about cap

this right there know whatnot? to way I higher the year think the quarter, season pass function run it's that? or of for but that any a rate anything Is of thinking way about just that happened light just about or unusual and a

Brian Witherow

on attendance averages that we're even XXXX. full Look, year say Yes, we pressure math get put a more better, I'd of I for business. say rate if that's a admissions lift Richard the function of as will expectation that wouldn't the a cap. per slice small and noted, run it's for the on probably a targeting or

it to and a that much type call is the problem is with goal. a revenue to base, ultimate which We going come higher have A because attendance

of market, in in approaches and strategies about markets. the every vary our park by leaning same park. The a being way have price price certain can house to company, We beauty to brands are we don't in and

informed, markets. backdrops as each economic guest getting our by we're feedback said, Always in broader Richard by of the the

a volume sales, cetera. we clear, look season we XXXX, -- are focus it's increased drive et to been bookings, group pass very very As

when don't pricing. less or a run the playbook, we that take for typically so pricing, mean but volume look little And doesn't we aggressive on we're

both I we'd in and what And so what point mix where ultimately -- will also channel see mid-single lands, of to of park But mix, to think low- markets. in most is our impact digit that increases like about of performance. your pricing that mix to

Operator

line the final Our from with of Ian question Oppenheimer. Zaffino comes

Isaac Sellhausen

would or Isaac wildfires is Is here on have had I This way months growth any quantify attendance of than or just been the Mountain? to for trends one Sellhausen Ian. X%? Knott's understand on on the X And higher here. California potentially there impact Magic for first

Richard Zimmerman

Thanks for we and of by monitoring closed as several What the we I'll Mountain it question. last is the have certainly We're days, just over well as listen, day watch I'm high weekly. the only trends say, for Magic winds. encouraged X out market what there. seen that I've and daily seen

have anomalous than weather, think growth what small percentage in any get higher events, you see. these you if to So don't yes, slice, you're I have better you going

now in right I with really how But in markets momentum got pleased 'XX. starting feel our we've we're out all, in with all all the

my I'll broader keep So the comments portfolio. to just

Operator

for Richard back remarks. I turn over to Zimmerman will closing call now the

Richard Zimmerman

Brian, an investor look everyone, you Day May of in seeing Michael? later or at joining interest us support for today's forward this and you, I in on year. conference call. person continued our many We Investor Thank Michael your and forward company. to in our look to

Michael Russell

free to at Investor XXX-XXXX. Richard. (XXX) Thanks, contact Feel our Relations department

call quarter release first Thanks earnings That's joining with end early of May results. next our will for in the us. call of our Our today. be the

Operator

for that call. joining. you all today's Thank and concludes Ladies gentlemen,

You may now disconnect.

Six Flags Entertainment (FUN) 27 Feb 252024 Q4 Earnings call transcript