Six Flags Entertainment Corporation/NEW Q4 FY2024 earnings call

• 2024 ended with record October performance and strong fourth quarter results, capturing close to half of merger-related cost synergies. Modified EBITDA margins boosted by 650 basis points.
• Post-merger, immediate actions drove guest satisfaction higher. Early 2025 trends show 2% increase in attendance and 3% increase in season pass unit sales.
• Addressed LA wildfires, supporting local responders and monitoring impact.
• 2025 capital program focuses on enhancing guest experience, introducing new attractions at eleven of fourteen largest parks.
• Portfolio optimization efforts ongoing, evaluating divestment of non-core properties and excess land.

For the fourth quarter, Six Flags generated net revenues of $687 million on 10.7 million visits. Legacy Six Flags operations contributed $324 million in net revenues and 5 million visits. Legacy Cedar Fair operations saw a $8 million decrease in fourth quarter revenues due to 115,000 fewer visits, but on a comparable fiscal calendar, attendance would have been up 461,000 visits. In-park per capita spending was $61.60, a 3% increase. Out-of-park revenues totaled $48 million. Adjusted EBITDA for the fourth quarter was $209 million, an increase of $120 million from the prior year, and modified EBITDA margin improved to 30.4%, a 650 basis point increase. For the full year, average transactions per guest at Legacy Cedar Fair parks increased 2% with over 40 million total transactions, up 1.8 million from 2023.

• Target adjusted EBITDA of $1.08 billion to $1.12 billion in 2025.
• Monitoring macro factors: potential residual impact from California wildfires on Southern California parks, and foreign currency exchange rate impact on non-domestic parks, assuming $7 to $8 million incremental FX pressure on EBITDA in 2025.
• 2025 plans include 5,852 total operating days, projecting full year depreciation and amortization of ~$450 million, annualized cash interest payments of $305 million to $315 million, and annualized cash tax payments of $105 to $115 million.

• Potential residual impact from California wildfires on Southern California parks (Knott's Berry Farm and Magic Mountain) affecting season pass sales and demand.
• Foreign currency exchange rate variability impacting reported results from non-domestic parks, with ~$7 to $8 million incremental FX pressure on EBITDA in 2025.

Q: Steve Wieczynski asked about guidance assumptions, including weather, California impact, and FX.

A: Richard Zimmerman and Brian Witherow responded that guidance assumes normal weather, neutral FX, and general offset of normal inflation. Upper end of guidance requires more growth in attendance and guest spending.

Q: James Hardiman inquired about portfolio optimization and revenue synergies.

A: Richard Zimmerman discussed strategic decision-making for portfolio optimization, and Brian Witherow provided updates on revenue synergies, noting revenue synergies were impacted by merger timing and early adoption of all-pass.

Q: Matthew Boss asked about attendance cadence and season pass pricing.

A: Richard Zimmerman discussed shifting operating days for higher value days, and mentioned goal to drive higher blended season pass pricing while growing the base.

Q: Thomas Yeh asked about operating calendar and season pass pricing.

A: Richard Zimmerman explained shifting days for higher value, and Brian Witherow discussed season pass pricing goals and market dynamics.

Q: Chris Woronka asked about CapEx and season pass maintenance.

A: Richard Zimmerman discussed capital investment focus on guest experience and value, and Brian Witherow provided details on cost synergies and cost curve.

Q: Michael Swartz asked about legacy Six Flags attendance and per caps.

A: Brian Witherow explained attendance drivers and per cap factors including park mix and FX.

Q: David Katz asked about technology and weather impact.

A: Richard Zimmerman discussed data and analytics focus, and Brian Witherow explained weather impact on guidance and season pass sales as weather hedges.

Q: Lizzie Dove asked about first quarter calendar shifts and per caps.

A: Brian Witherow discussed calendar shift impact and per cap factors like park mix and pricing.

Q: Isaac Sellhausen asked about California wildfires impact on attendance.

A: Richard Zimmerman noted monitoring of California wildfires impact but expressed satisfaction with broader portfolio momentum.