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Six Flags Entertainment Corp/OLD (SIX)·Q1 2024 Earnings Summary

Executive Summary

  • Q1 2024 revenue was $133.3M, down 6% YoY, with a net loss of $82.7M and an Adjusted EBITDA loss of $26.4M; attendance rose 6% to 1.7M, but lower legacy membership revenue weighed on per-capita spending .
  • Management highlighted “double-digit” season pass sales growth through April, pre-booked group sales trending back toward pre-pandemic levels, and strong guest reception to beautification and technology initiatives, setting a positive tone heading into peak season .
  • Balance sheet actions: issued $850M of 6.625% senior secured notes due 2032 and used proceeds to repay Term Loan B and revolver; plan to redeem $165M of 2025 notes on July 1, 2024 .
  • The Cedar Fair merger remains on track pending regulatory approval; shareholders approved on March 12, 2024; expected to close in 1H24 subject to customary conditions .

What Went Well and What Went Wrong

  • What Went Well

    • Season pass momentum: “2024 season pass sales through April increasing by double-digits compared to last year,” supporting forward attendance visibility .
    • Group demand recovery: pre-booked group sales “approaching pre-pandemic levels,” improving shoulder-season mix and utilization .
    • Operational initiatives: “park beautification and technology initiatives resonating strongly with our guests,” positioning for pricing power and in-park monetization .

  • What Went Wrong

    • Revenue headwind from legacy memberships: $12M reduction from memberships beyond the initial 12 months reduced admissions and in-park recognized revenue, and a $4M downward adjustment to international licensing tied to Qiddiya timing change to mid-2025 .
    • Per-capita spending decline: total guest spending per capita fell 8% YoY to $74.35, driven by membership recognition headwinds; Adjusted EBITDA loss widened to $26.4M (vs. $17.4M), reflecting lower revenue and merger-related costs .
    • Higher financing costs and transaction expenses: diluted loss per share was $(0.98) vs. $(0.84) YoY, impacted by higher interest expense and ~$5.6M merger-related costs in the quarter .

Financial Results

  • Quarterly P&L Summary
MetricQ3 2023Q4 2023Q1 2024
Revenue ($USD Millions)$547.5 $292.6 $133.3
Net Income (Loss) Attributable to SIX ($USD Millions)$110.7 $(22.4) $(82.7)
Diluted EPS ($USD)$1.32 $(0.27) $(0.98)
Adjusted EBITDA ($USD Millions)$219.9 $98.2 $(26.4)
Net Income Margin (%)20.2% (calc from )-7.6% (calc from )-62.1% (calc from )
  • Year-over-Year KPIs
MetricQ1 2023Q1 2024
Revenue ($USD Millions)$142.2 $133.3
Net Loss ($USD Millions)$(69.9) $(82.7)
Diluted EPS ($USD)$(0.84) $(0.98)
Attendance (Millions)1.6 1.7
Total Guest Spending per Capita ($)$80.88 $74.35
Admissions per Capita ($)$47.81 $42.04
In-park Spending per Capita ($)$33.07 $32.31
  • Segment Revenue Breakdown
Revenue Line ($USD Thousands)Q1 2023Q4 2023Q1 2024
Park Admissions$76,303 $142,072 $70,801
Park Food, Merchandise & Other$52,786 $133,755 $54,397
Sponsorship, International Agreements & Accommodations$13,101 $16,724 $8,093
Total Revenues$142,190 $292,551 $133,291
  • Balance Sheet and Liquidity
MetricDec 31, 2023Mar 31, 2024
Cash and Cash Equivalents ($USD Millions)$77.6 $60.7
Total Reported Debt ($USD Millions)$2,365 $2,417
Deferred Revenue ($USD Millions)$127.6 $165.4
  • Cash Flow (Quarter)
Metric ($USD Thousands)Q1 2023Q1 2024
Net Cash Used in Operating Activities$(56,269) $(30,474)
Net Cash Used in Investing Activities$(25,007) $(36,991)
Net Cash Provided by Financing Activities$68,679 $49,620

Guidance Changes

  • No formal quantitative guidance ranges (revenue, EPS, margins, tax rate) were provided in the Q1 2024 press release or 8-K. Management emphasized momentum in season pass sales and operational ramp into the summer season, but did not issue numeric forward guidance .
MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company RevenueFY2024N/ANone issuedMaintained “no formal guidance”
Adjusted EBITDAFY2024N/ANone issuedMaintained “no formal guidance”
Capital Allocation2024N/A$850M notes due 2032; repay Term Loan B & revolver; redeem $165M 2025 notesNew actions
Merger Status1H 2024Shareholder vote pendingShareholder approval obtained; regulatory review pending; expected close 1H24Progressed

Earnings Call Themes & Trends

  • Note: The internal document reader encountered an error accessing the transcript; references below rely on the Q1 2024 press release and prior-quarter 8-K commentary, with links to external transcript sources for completeness .
TopicPrevious Mentions (Q3 2023)Previous Mentions (Q4 2023)Current Period (Q1 2024)Trend
Season Pass Strategy & PricingHigher season pass sales; optimized pricing lowered admissions per-capita Pass sales ahead of last year; premiumization progress Season pass sales up double-digits through April Improving momentum
Events & Guest ExperienceExpanded/accelerated fall events; investments in entertainment Expanded shows/events; digital guest-facing innovations Beautification and technology initiatives resonating Positive reception
Sponsorship & LicensingHigher sponsorship revenue YoY Sponsorship growth YoY Licensing adjustment tied to Qiddiya timing (-$4M) Mixed: sponsorship resilient, licensing timing shift
Macro/Inflation & CostsInflation and cost pressures noted Higher cash operating costs from inflation, attendance Cash operating costs down 1% YoY; interest expense up Cost discipline improving; financing costs higher
Capital StructureDebt reduction in Q3 Debt $2.365B at YE $850M notes due 2032; repay loans; planned redemption Proactive refinancing
Cedar Fair MergerAnnounced Nov 2, 2023 S-4 effective; vote scheduled Shareholder approval obtained; regulatory pending; target close 1H24 Advancing

Management Commentary

  • Strategic message: “We remain focused on delivering a world-class experience for our guests, and we are excited to launch many thrilling new rides, attractions, and immersive experiences in time for the peak summer season… confident in our ability to build upon early season momentum.” – Selim Bassoul, President & CEO .
  • Capital allocation and liquidity positioning: New $850M 6.625% 2032 notes to refinance Term Loan B and revolver; planned $165M redemption of 2025 notes, supporting flexibility heading into peak operations .
  • Demand signals: Season pass sales up double-digits through April; pre-booked group sales approaching pre-pandemic levels .

Q&A Highlights

  • The company hosted its Q1 2024 earnings call on May 9 at 7:00 a.m. CT; a replay is available on the investor relations site . External transcript references: Motley Fool and Seeking Alpha .
  • Based on press release disclosures, key areas likely addressed: membership revenue recognition headwinds impacting per-capita metrics (and normalization excluding membership revenue), Easter timing tailwind to attendance, and the balance sheet refinancing transactions .
  • Clarifications on international licensing timing (Qiddiya shift to mid-2025) and merger-related costs affecting GAAP loss were highlighted in the release and would have been focal points for Q&A .

Estimates Context

  • S&P Global consensus estimates were unavailable via the tool due to a CIQ mapping issue; as a result, we cannot provide definitive “beat/miss” versus Wall Street consensus for Q1 2024 at this time. Values retrieved from S&P Global were unavailable due to mapping constraints.
  • Directionally, the widening Adjusted EBITDA loss and lower recognized revenue from legacy memberships suggest potential near-term estimate adjustments for per-capita metrics, while attendance momentum and pass sales strength could support volume estimates into Q2/Q3 .

Key Takeaways for Investors

  • Q1 softness was largely mechanical: legacy membership revenue recognition and an international licensing timing adjustment (-$4M) drove the revenue decline; excluding these, per-capita metrics would have increased YoY (+3% total per-capita) with admissions +1% and in-park +5% .
  • Attendance growth (+6% YoY) and double-digit season pass sales through April provide encouraging demand signals heading into peak season, partially offsetting per-capita pressure .
  • Cost discipline is emerging: cash operating costs declined 1% YoY despite merger-related expenses, helping temper the GAAP loss amidst higher interest expense .
  • Proactive refinancing and planned note redemption strengthen the capital structure ahead of summer operations and potential merger close, reducing reliance on short-dated facilities .
  • Sponsorship remains resilient, but international licensing is sensitive to project timing (Qiddiya mid-2025), suggesting variability in that revenue line near term .
  • Merger with Cedar Fair continues to advance; shareholder approval secured, regulatory review pending—an eventual close could reshape the combined portfolio and synergy outlook .
  • Focus for the next quarter: monitor conversion from pass sales to visits, in-park monetization from technology and beautification initiatives, and any updates on merger timing and synergy framing .