Cost Growth
Q: How should we think about cost growth?
A: Management attributed higher costs to merger‐related expenses, extra week adjustments, and residual inflation while maintaining focus on variable cost efficiencies and careful expense management .

CapEx Breakdown
Q: How is CapEx split between maintenance and growth?
A: They explained that 60–70% of CapEx will drive growth projects—like marquee attractions generating over 20% one‑year cash-on‑cash returns—with the remainder reserved for standard maintenance .

Wage Impact
Q: How to handle rising minimum wage impacts?
A: Management noted they are leveraging improved staffing efficiencies and regional market differences to mitigate wage increases, keeping labor cost control as a key focus .

Season Pass Pricing
Q: Why lower season pass pricing at Knott’s?
A: They reduced pricing in the competitive Southern California market to stimulate early demand, even as unit sales remained strong .

Group Sales
Q: What’s driving the strong group sales channel?
A: Management observed robust rebounds in both youth and corporate group sales, with pre-pandemic activity levels returning strongly thanks to renewed client engagement .

Digital Revenue
Q: How significant are app revenue opportunities?
A: They indicated that digital initiatives are in early stages but are expected to gradually boost transaction values and overall efficiency, contributing modest incremental revenue over time .

Calendar Effects
Q: Did calendar shifts impact Q1 performance?
A: Management mentioned that while an extra week and slight Easter timing differences were present, these effects were muted and non-material to overall results .

Operating Efficiency
Q: Why did operating expenses per day rise sharply?
A: They clarified that fewer operating days skew per-day metrics, and when merger costs are excluded, variable expense levels remain essentially flat despite increased attendance .

Operating Days
Q: What are the learnings from reducing operating hours/days?
A: Management found that trimming low-value days helped streamline operations without significantly lowering fixed off-season costs, aiding overall efficiency .

Admissions Pacing
Q: How will admissions per capita trend this year?
A: They expect modest improvements as park mixes evolve and higher revenue channels, like season passes, drive overall income beyond simple per-guest metrics .

Consumer Spending
Q: What’s the trend in food, beverage, and merchandise spending?
A: There were healthy gains in food and beverage and premium offerings, reflecting strong consumer interest supported by new attractions and enhanced park experiences .