Six Flags Reports Fourth Quarter and Full Year 2023 Performance
"As we close out our second year pursuing our premiumization strategy, we are encouraged by the progress we have made to date. Since 2021, we have grown guest spending per capita by 17%, lowered cash expense in the face of historical levels of inflation, leveraged key partnerships to expand sponsorship revenue, and paid down debt," said
Fourth Quarter 2023 Results
|
Three Months Ended |
||||||||
(Amounts in millions, except per share data) |
|
|
|
|
% Change vs. 2022 |
||||
Total revenue |
$ |
293 |
|
|
$ |
280 |
|
5 |
% |
Net (loss) income attributable to |
$ |
(22 |
) |
|
$ |
10 |
|
N/M |
|
Net (loss) income per share, diluted (2) |
$ |
(0.27 |
) |
|
$ |
0.12 |
|
N/M |
|
Adjusted EBITDA (1) , (3) |
$ |
98 |
|
|
$ |
99 |
|
— |
% |
Attendance |
|
4.3 |
|
|
|
4.1 |
|
6 |
% |
Spending per capita figures: (4) |
|
|
|
|
|
||||
Total guest spending per capita |
$ |
64.19 |
|
|
$ |
65.15 |
|
(1 |
)% |
Admissions spending per capita |
$ |
33.06 |
|
|
$ |
34.50 |
|
(4 |
)% |
In-park spending per capita |
$ |
31.13 |
|
|
$ |
30.65 |
|
2 |
% |
Total revenue for fourth quarter 2023 increased
The
The company had a net loss of
Full Year 2023 Results
|
Year Ended |
|||||||
(Amounts in millions, except per share data) |
|
|
|
|
% Change vs. 2022 |
|||
Total revenue |
$ |
1,426 |
|
$ |
1,358 |
|
5 |
% |
Net income attributable to |
$ |
39 |
|
$ |
101 |
|
(61 |
)% |
Net income per share, diluted (2) |
$ |
0.46 |
|
$ |
1.20 |
|
(61 |
)% |
Adjusted EBITDA (1) , (3) |
$ |
462 |
|
$ |
461 |
|
— |
% |
Attendance |
|
22.2 |
|
|
20.4 |
|
9 |
% |
Spending per capita figures (2) |
|
|
|
|
|
|||
Total guest spending per capita |
$ |
61.03 |
|
$ |
63.93 |
|
(5 |
)% |
Admissions spending per capita |
$ |
33.43 |
|
$ |
35.99 |
|
(7 |
)% |
In-park spending per capita |
$ |
27.60 |
|
$ |
27.94 |
|
(1 |
)% |
Total revenue for full year 2023 increased
The
The company had a net income of
Balance Sheet and Capital Allocation
As of
Cedar Fair Transaction
On
Conference Call
At
About
___________________________________
Forward Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding (i) the adequacy of our cash flows from operations, available cash and available amounts under our credit facilities to meet our liquidity needs, including in the event of a prolonged closure of one or more of our parks, (ii) our ability to execute our strategy to significantly improve our financial performance and the guest experience, (iii) expectations regarding consumer demand for regional, outdoor, out-of-home entertainment, including for our parks, and (iv) expectations regarding our annual income tax liability and the availability and effect of net operating loss carryforwards and other tax benefits.
Forward-looking statements include all statements that are not historical facts and often use words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "may," "should," "could" and variations of such words or similar expressions. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. These risks and uncertainties include, among others, factors impacting attendance, such as local conditions, natural disasters, contagious diseases, or the perceived threat of contagious diseases, events, disturbances and terrorist activities; economic impact of political instability and conflicts globally, including the war in
Important Information about the Transaction and Where to Find It
In connection with the proposed transaction with
Six Flags
Vice President, Investor Relations and Treasurer
+1-972-595-5180
investorrelations@sftp.com
The information included on, or accessible through, the company’s website is not incorporated by reference into this communication.
Participants in the Solicitation
No Offer or Solicitation
This communication is for informational purposes and is not intended to, and shall not, constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Footnotes
(1) |
See the following financial statements and Note 4 to those financial statements for a discussion of Adjusted EBITDA (a non-GAAP financial measure) and its reconciliation to net income (loss). |
|
(2) |
Reflects revisions to be made to previously issued financial statements for immaterial errors in the unaudited interim financial statements for the periods ended |
|
(3) |
During 2023, the company reclassified the net pension-related expense (benefit) to “Other (income) expense, net”, in our consolidated statements of operations. This reclassification has been reflected in all periods presented. As a result, Adjusted EBITDA for the three-month period and the twelve-month period ended |
|
(4) |
The company uses certain per capita operational metrics that measure the performance of our business on a per guest basis and believe that these metrics provide relevant and useful information for investors because they assist in comparing our operating performance on a consistent basis, make it easier to compare our results with those of other companies and our industry and allows investors to review performance in the same manner as our management. |
|
|
|
|
|
|
|
|
|
|
(5) |
“Cash operating costs” includes operating expenses (excluding depreciation and amortization) and selling, general and administrative expenses (excluding stock-based compensation). "Cash operating costs" also excludes the |
Statement of Operations Data
|
Three Months Ended |
|
Year Ended |
|||||||||||
(Amounts in thousands, except per share data) |
|
|
|
|
|
|
|
|||||||
Park admissions |
$ |
142,072 |
|
|
$ |
140,149 |
|
$ |
743,657 |
|
|
$ |
735,415 |
|
Park food, merchandise and other |
|
133,755 |
|
|
|
124,516 |
|
|
614,036 |
|
|
|
570,965 |
|
Sponsorship, international agreements and accommodations |
|
16,724 |
|
|
|
15,211 |
|
|
68,210 |
|
|
|
51,856 |
|
Total revenues |
|
292,551 |
|
|
|
279,876 |
|
|
1,425,903 |
|
|
|
1,358,236 |
|
Operating expenses (excluding depreciation and amortization shown separately below) |
|
133,952 |
|
|
|
126,647 |
|
|
622,952 |
|
|
|
590,660 |
|
Selling, general and administrative expenses (excluding depreciation and amortization shown separately below) (1) (2) |
|
55,204 |
|
|
|
34,296 |
|
|
247,883 |
|
|
|
169,403 |
|
Costs of products sold |
|
22,960 |
|
|
|
22,157 |
|
|
110,397 |
|
|
|
108,146 |
|
Depreciation and amortization |
|
29,120 |
|
|
|
30,352 |
|
|
115,086 |
|
|
|
117,124 |
|
Impairment of park assets |
|
22,956 |
|
|
|
16,943 |
|
|
22,956 |
|
|
|
16,943 |
|
Loss on disposal of assets |
|
9,648 |
|
|
|
891 |
|
|
16,393 |
|
|
|
3,927 |
|
Operating income |
|
18,711 |
|
|
|
48,590 |
|
|
290,236 |
|
|
|
352,033 |
|
Interest expense, net |
|
40,196 |
|
|
|
33,885 |
|
|
158,256 |
|
|
|
141,590 |
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
13,982 |
|
|
|
17,533 |
|
Other (income) expense, net |
|
11,146 |
|
|
|
1,985 |
|
|
9,208 |
|
|
|
(84 |
) |
(Loss) income before income taxes |
|
(32,631 |
) |
|
|
12,720 |
|
|
108,790 |
|
|
|
192,994 |
|
Income tax (benefit) expense |
|
(10,235 |
) |
|
|
2,703 |
|
|
22,290 |
|
|
|
46,960 |
|
Net (loss) income |
$ |
(22,396 |
) |
|
$ |
10,017 |
|
$ |
86,500 |
|
|
$ |
146,034 |
|
Less: Net income attributable to noncontrolling interests |
|
— |
|
|
|
— |
|
|
(47,501 |
) |
|
|
(44,651 |
) |
Net (loss) income attributable to |
$ |
(22,396 |
) |
|
$ |
10,017 |
|
$ |
38,999 |
|
|
$ |
101,383 |
|
|
|
|
|
|
|
|
|
|||||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|||||||
Basic: |
|
83,556 |
|
|
|
83,156 |
|
|
83,410 |
|
|
|
84,366 |
|
Diluted: |
|
84,084 |
|
|
|
83,230 |
|
|
83,935 |
|
|
|
84,695 |
|
|
|
|
|
|
|
|
|
|||||||
(Loss) earnings per average common share outstanding: |
|
|
|
|
|
|
|
|||||||
Basic: |
$ |
(0.27 |
) |
|
$ |
0.12 |
|
$ |
0.47 |
|
|
$ |
1.20 |
|
Diluted: |
$ |
(0.27 |
) |
|
$ |
0.12 |
|
$ |
0.46 |
|
|
$ |
1.20 |
|
____________________________________________________________________________ | ||
(1) |
Includes stock-based compensation of |
|
(2) |
Reflects revisions to be made to previously issued financial statements for immaterial errors in the unaudited interim financial statements for the periods ended |
|
As of |
||||||
(Amounts in thousands, except share data) |
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
77,585 |
|
|
$ |
80,122 |
|
Accounts receivable, net |
|
62,660 |
|
|
|
49,405 |
|
Inventories |
|
31,624 |
|
|
|
44,811 |
|
Prepaid expenses and other current assets |
|
80,897 |
|
|
|
66,452 |
|
Total current assets |
|
252,766 |
|
|
|
240,790 |
|
Property and equipment, net: |
|
|
|
||||
Property and equipment, at cost |
|
2,733,094 |
|
|
|
2,592,485 |
|
Accumulated depreciation |
|
(1,447,861 |
) |
|
|
(1,350,739 |
) |
Total property and equipment, net |
|
1,285,233 |
|
|
|
1,241,746 |
|
|
|
659,618 |
|
|
|
659,618 |
|
Intangible assets, net of accumulated amortization |
|
344,141 |
|
|
|
344,164 |
|
Right-of-use operating leases, net |
|
134,857 |
|
|
|
158,838 |
|
Other assets, net |
|
34,859 |
|
|
|
20,669 |
|
Total assets |
$ |
2,711,474 |
|
|
$ |
2,665,825 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
27,235 |
|
|
$ |
38,887 |
|
Accrued compensation, payroll taxes and benefits |
|
18,957 |
|
|
|
15,224 |
|
Self-insurance reserves |
|
64,605 |
|
|
|
34,053 |
|
Accrued interest payable |
|
28,704 |
|
|
|
38,484 |
|
Other accrued liabilities |
|
73,087 |
|
|
|
67,346 |
|
Deferred revenue |
|
127,556 |
|
|
|
128,627 |
|
Short-term borrowings |
|
56,867 |
|
|
|
— |
|
Current portion of long-term debt |
|
180,000 |
|
|
|
100,000 |
|
Short-term lease liabilities |
|
10,514 |
|
|
|
11,688 |
|
Total current liabilities |
|
587,525 |
|
|
|
434,309 |
|
Noncurrent liabilities: |
|
|
|
||||
Long-term debt |
|
2,128,612 |
|
|
|
2,280,531 |
|
Long-term lease liabilities |
|
155,335 |
|
|
|
164,804 |
|
Other long-term liabilities |
|
27,263 |
|
|
|
30,714 |
|
Deferred income taxes |
|
189,700 |
|
|
|
184,637 |
|
Total liabilities |
|
3,088,435 |
|
|
|
3,094,995 |
|
|
|
|
|
||||
Redeemable noncontrolling interests |
|
520,998 |
|
|
|
521,395 |
|
|
|
|
|
||||
Stockholders' deficit: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
2,112 |
|
|
|
2,079 |
|
Capital in excess of par value (2) |
|
1,131,208 |
|
|
|
1,119,222 |
|
Accumulated deficit (2) |
|
(1,961,603 |
) |
|
|
(2,000,671 |
) |
Accumulated other comprehensive loss, net of tax |
|
(69,676 |
) |
|
|
(71,195 |
) |
Total stockholders' deficit |
|
(897,959 |
) |
|
|
(950,565 |
) |
Total liabilities and stockholders' deficit |
$ |
2,711,474 |
|
|
$ |
2,665,825 |
|
Year Ended |
||||||
(Amounts in thousands) |
|
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
86,500 |
|
|
$ |
146,034 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
115,086 |
|
|
|
117,124 |
|
Stock-based compensation (2) |
|
11,387 |
|
|
|
15,218 |
|
Interest accretion on notes payable |
|
924 |
|
|
|
1,111 |
|
Loss on debt extinguishment |
|
13,982 |
|
|
|
17,533 |
|
Amortization of debt issuance costs |
|
5,356 |
|
|
|
7,097 |
|
Loss on disposal of assets |
|
16,393 |
|
|
|
3,927 |
|
Deferred income tax expense |
|
1,320 |
|
|
|
30,638 |
|
Loss on impairment of park assets |
|
22,956 |
|
|
|
16,943 |
|
Other |
|
(4,195 |
) |
|
|
(3,088 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
(Increase) decrease in accounts receivable |
|
(13,831 |
) |
|
|
48,648 |
|
(Increase) decrease inventories, prepaid expenses and other current assets |
|
(2,785 |
) |
|
|
(28,856 |
) |
(Increase) decrease in deposits and other assets |
|
6,700 |
|
|
|
(11,720 |
) |
Decrease in ROU operating leases |
|
11,773 |
|
|
|
11,410 |
|
(Decrease) increase in accounts payable, deferred revenue, accrued liabilities and other long-term liabilities |
|
6,297 |
|
|
|
(79,585 |
) |
Decrease in operating lease liabilities |
|
(10,610 |
) |
|
|
(11,003 |
) |
Decrease in accrued interest payable |
|
(9,780 |
) |
|
|
(12,070 |
) |
Net cash provided by operating activities |
|
257,473 |
|
|
|
269,361 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Additions to property and equipment |
|
(171,814 |
) |
|
|
(116,589 |
) |
Property insurance recoveries |
|
1,089 |
|
|
|
5,080 |
|
Proceeds from sale of assets |
|
488 |
|
|
|
— |
|
Net cash used in investing activities |
|
(170,237 |
) |
|
|
(111,509 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Repayment of borrowings |
|
(1,163,623 |
) |
|
|
(460,000 |
) |
Proceeds from borrowings |
|
1,144,984 |
|
|
|
200,000 |
|
Payment of debt issuance costs |
|
(19,678 |
) |
|
|
— |
|
Stock repurchases |
|
— |
|
|
|
(96,774 |
) |
Redemption premium payments on debt extinguishment |
|
— |
|
|
|
(200 |
) |
Payment of cash dividends |
|
— |
|
|
|
1,039 |
|
Proceeds from issuance of common stock |
|
(8,587 |
) |
|
|
— |
|
Payment of tax withholdings on equity-based compensation through shares withheld |
|
— |
|
|
|
(12,600 |
) |
Reduction in finance lease liability |
|
(999 |
) |
|
|
(1,016 |
) |
Purchase of redeemable noncontrolling interest |
|
(328 |
) |
|
|
(556 |
) |
Distributions to noncontrolling interests |
|
(47,533 |
) |
|
|
(44,651 |
) |
Net cash used in financing activities |
|
(95,764 |
) |
|
|
(414,758 |
) |
|
|
|
|
||||
Effect of exchange rate on cash |
|
5,991 |
|
|
|
1,443 |
|
|
|
|
|
||||
Net decrease in cash and cash equivalents |
|
(2,537 |
) |
|
|
(255,463 |
) |
Cash and cash equivalents at beginning of period |
|
80,122 |
|
|
|
335,585 |
|
Cash and cash equivalents at end of period |
$ |
77,585 |
|
|
$ |
80,122 |
|
|
|
|
|
||||
Supplemental cash flow information |
|
|
|
||||
Cash paid for interest |
$ |
164,571 |
|
|
$ |
146,693 |
|
Cash paid for income taxes |
$ |
21,238 |
|
|
$ |
10,637 |
|
Definition and Reconciliation of Non-GAAP Financial Measures
We prepare our financial statements in accordance with
However, because these non-GAAP financial measures are not determined in accordance with GAAP, they are susceptible to varying calculations, and not all companies calculate these measures in the same manner. As a result, these non-GAAP financial measures as presented may not be directly comparable to a similarly titled non-GAAP financial measure presented by another company. These non-GAAP financial measures are presented as supplemental information and not as alternatives to any GAAP financial measures. When reviewing a non-GAAP financial measure, we encourage our investors to fully review and consider the related reconciliation as detailed below.
The following tables set forth a reconciliation of net income to Adjusted EBITDA for the three-month periods and twelve-month periods ended
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||
(Amounts in thousands, except per share data) |
|
|
|
|
|
|
|
|||||||
Net (loss) income |
$ |
(22,396 |
) |
|
$ |
10,017 |
|
$ |
86,500 |
|
|
$ |
146,034 |
|
Income tax (benefit) expense |
|
(10,235 |
) |
|
|
2,703 |
|
|
22,290 |
|
|
|
46,960 |
|
Other (income) expense, net (3) |
|
11,146 |
|
|
|
1,985 |
|
|
9,208 |
|
|
|
(84 |
) |
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
13,982 |
|
|
|
17,533 |
|
Interest expense, net |
|
40,196 |
|
|
|
33,885 |
|
|
158,256 |
|
|
|
141,590 |
|
Loss on disposal of assets |
|
9,648 |
|
|
|
891 |
|
|
16,393 |
|
|
|
3,927 |
|
Depreciation and amortization |
|
29,120 |
|
|
|
30,352 |
|
|
115,086 |
|
|
|
117,124 |
|
Impairment of park assets |
|
22,956 |
|
|
|
16,943 |
|
|
22,956 |
|
|
|
16,943 |
|
Stock-based compensation (2) |
|
2,369 |
|
|
|
1,814 |
|
|
11,387 |
|
|
|
15,218 |
|
Merger-related transaction costs |
|
15,386 |
|
|
|
— |
|
|
15,386 |
|
|
|
— |
|
Self-insurance reserve adjustment (4) |
|
— |
|
|
|
— |
|
|
37,558 |
|
|
|
— |
|
Modified EBITDA (5) |
$ |
98,190 |
|
|
$ |
98,590 |
|
$ |
509,002 |
|
|
$ |
505,245 |
|
Third party interest in EBITDA of certain operations (6) |
|
— |
|
|
|
— |
|
|
(47,501 |
) |
|
|
(44,651 |
) |
Adjusted EBITDA (5) |
$ |
98,190 |
|
|
$ |
98,590 |
|
$ |
461,501 |
|
|
$ |
460,594 |
|
____________________________________________________________________________ | ||
(1) |
Amounts recorded as “Other (income) expense, net” include certain non-recurring costs incurred in conjunction with changes made to our organizational structure in |
|
(2) |
Amount relates to an adjustment to our self-insurance reserves resulting from a change in accounting estimate that increased our ultimate loss indications on both identified claims and incurred but not reported claims, as discussed in more detail above in our review of second quarter 2023 results. We have excluded this adjustment from our reported Adjusted EBITDA because we believe (i) the change in actuarial assumptions and related change in accounting estimate that gave rise to the adjustment is unusual and not expected to be recurring; (ii) excluding it provides more meaningful comparisons to our historical results; and (iii) excluding it provides more meaningful comparisons to other companies in our industry. |
|
(3) |
Modified EBITDA,” a non-GAAP measure, is defined as our consolidated income (loss) from continuing operations: excluding the following: the cumulative effect of changes in accounting principles, discontinued operations gains or losses, income tax expense or benefit, restructure costs or recoveries, reorganization items (net), other income or expense, gain or loss on early extinguishment of debt, equity in income or loss of investees, interest expense (net), gain or loss on disposal of assets, gain or loss on the sale of investees, amortization, depreciation, stock-based compensation, fresh start accounting valuation adjustments and other significant non-recurring items. Modified EBITDA, as defined herein, may differ from similarly titled measures presented by other companies. Management uses non-GAAP measures for budgeting purposes, measuring actual results, allocating resources and in determining employee incentive compensation. We believe that Modified EBITDA provides relevant and useful information for investors because it assists in comparing our operating performance on a consistent basis, makes it easier to compare our results with those of other companies in our industry as it most closely ties our performance to that of our competitors from a park-level perspective and allows investors to review performance in the same manner as our management. |
|
"Adjusted EBITDA," a non-GAAP measure, is defined as Modified EBITDA minus the interests of third parties in the Modified EBITDA of properties that are less than wholly owned (consisting of |
||
(6) |
Represents interests of non-controlling interests in the Adjusted EBITDA of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240229214938/en/
Vice President, Investor Relations and Treasurer
+1-972-595-5180
investorrelations@sftp.com
Source: