Six Flags Entertainment Corporation Q2 FY2025 earnings call

• Leadership: Richard Zimmerman will step down as President and CEO by the end of 2025 but will remain involved as a Director. - Early season: Results fell below expectation due to macro factors, but July showed a surge in park demand and season pass sales climbing. - Initiatives: Introduced promotional offers, pulled forward advertising dollars, added operating hours and staffing, took actions on season pass base, completed organizational restructuring to reduce full-time labor cost by over $20 million annualized, and harmonized technology stacks for cost savings and administrative simplification.

The second quarter was impacted by extreme weather across much of the North American portfolio. Combined attendance was down 12% over a 6-week period due to severe storms, excessive rain, and extreme heat. Despite this, when guests visited, demand was solid. Admissions per capita spending was up at legacy Cedar Fair parks, and in-park products spending was also up. However, early season performance fell below expectations driven by lower renewal rates, sales of season passes, and disrupted single-day visits influenced by macro factors including weather and economic uncertainty.

• Revised 2025 full year adjusted EBITDA guidance to $860 million to $910 million from prior range of $1.08 billion to $1.12 billion, reflecting weather disruptions, smaller active pass base, and value-conscious consumer. - Expect second half of 2025 attendance to be flat compared to last year after accounting for loss of 500,000 visits from lower-margin winter holiday events. - In-park per capita spending expected to be down ~3% in the second half. - Second half operating costs and expenses excluding adjusted EBITDA add-backs reduced by ~$90 million compared to 2024.

• Macro and weather-related risks: Extreme weather conditions and macroeconomic uncertainty can significantly impact attendance, sales of season passes, and consumer spending, which may affect financial results.

Q: Steve Wieczynski asked about macro pressures, specifically if the customer base has slowed or become more cautious.

A: Richard Zimmerman said weather is a dominant macro factor, and there's pressure on the lower-income consumer. Brian Witherow added about the difference between lower-end and higher-end consumers and the urgency of visitation in the front half of the year.

Q: Arpine Kocharyan asked about divestitures and deleveraging.

A: Richard Zimmerman said they are executing on noncore asset sales and evaluating other opportunities. Brian Witherow noted the priority is on key strategic assets.

Q: James Hardiman asked about guidance math.

A: Brian Witherow explained the guide down is due to lost season pass revenues and other factors, with attendance and cost savings being key elements.

Q: Ben Chaiken asked about cost and park closures.

A: Brian Witherow said they are looking for incremental savings but balancing with park investments, and adding days in the fall to offset the impact of park closures.

Q: Ian Zaffino asked about in-park spend and mix.

A: Richard Zimmerman and Brian Witherow discussed attendance mix, promotional offers, and price adjustments.

Q: David Katz asked about the analyst meeting forecast.

A: Richard Zimmerman said the long-term guidance view hasn't changed and they will reassess it early next year.

Q: Lizzie Dove asked about CapEx.

A: Richard Zimmerman and Brian Witherow discussed CapEx spend for 2025 and 2026, balancing investment and leverage.

Q: Brandt Montour asked about July stats and pass sales.

A: Brian Witherow and Richard Zimmerman discussed weather comps and the pull forward of pass sales.

Q: Chris Woronka asked about season pass math.

A: Richard Zimmerman and Brian Witherow talked about pass program structure and value add.

Q: Thomas Yeh asked about the 2026 pass cycle and second half attendance.

A: Brian Witherow discussed pass pricing and weather assumptions for second half attendance.