Six Flags revenue up on lower attendance, greater loss in first quarter
Posted
From the press release:
Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company and the largest operator of water parks in North America, today reported first quarter Revenue of $142 million, Net Loss of $70 million, and an Adjusted EBITDA loss of $17 million.
“We are pleased to have delivered record first quarter revenue and the second-highest first quarter Adjusted EBITDA in our company’s history, which we believe are proof points that our new strategy and our new culture are beginning to take hold,” said Selim Bassoul, President and CEO. “Looking ahead, our team is excited to launch numerous special events this summer, including Viva La Fiesta, Flavors of the World, Six Flags Fireworks Spectacular, and parades. These events, combined with exciting new rides and attractions and our focused investments in infrastructure, should help us deliver an enhanced guest experience this year. We are still in the early stages of our transformation, but with our season pass sales accelerating and our attendance improving, we are encouraged by our recent progress.”
Total revenue for first quarter 2023 increased $4 million, or 3%, compared to first quarter 2022, driven by higher guest spending per capita, partially offset by lower attendance. The decrease in attendance was driven primarily by severe weather in our California and Texas parks.
The $5.42 increase in guest spending per capita compared to first quarter 2022 consisted of a $4.53 increase in Admissions spending per capita and a $0.89 increase in In-park spending per capita. The increase in guest spending per capita was driven by higher revenue from memberships beyond the initial 12-month commitment period, which is recognized evenly each month and includes a portion of revenue that is allocated to Park admissions revenue and to Park food, merchandise and other revenue. Higher membership revenue in first quarter 2023 increased Admissions spending per capita and In-park spending per capita by approximately $5 and $1, respectively, versus the prior year. Excluding this impact, Admissions spending per capita and In-park spending per capita in first quarter 2023 were essentially flat versus the prior year period.
The company had a net loss of $70 million in first quarter 2023, compared to a net loss of $66 million in first quarter 2022. The loss per share was $0.84 compared to a loss per share of $0.76 in first quarter 2022, driven by higher operating costs partially offset by an increase in revenue. Operating costs increased in first quarter 2023 versus the prior year due primarily to higher advertising spend. Adjusted EBITDA loss in first quarter 2023 was $17 million, essentially flat with the prior year.
As of April 2, 2023, the company had total reported debt of $2,452 million, and cash or cash equivalents of $65 million. Deferred revenue was $152 million as of April 2, 2023, a decrease of $33 million, or 18%, from April 3, 2022. The decrease was primarily due to a lower Active Pass base as of April 2, 2023 versus April 3, 2022. In first quarter 2023, the company invested $25 million in new capital, net of insurance recoveries.
On May 3, 2023, the company completed the private sale of $800.0 million in aggregate principal amount of 7.25% senior unsecured notes due 2031. The net proceeds from this offering were used to repay $892.6 million, or 94.01% of the aggregate principal amount outstanding, of the 4.875% senior unsecured Notes due 2024. In addition, the company increased the capacity of the Revolving Credit Facility from $350 million to $500 million.
hambone:
The difference being, Wal-Mart is really good at delivering customer satisfaction. When I go there, they have what I want, it's cheap, the staff are friendly, and I don't have to wait forever to get it.
I want to find a Walmart like this.
Was thinking the same. We shop at Wal-Mart all the time...we sit in our car and wait while the employee loads it with groceries. It's a nice way to shop. Any time I have to go inside...well, I usually do everything in my power to avoid that, but if I can't, I prepare myself for the inevitable miserable experience.
I haven’t set foot in a Walmart in years- I can’t even tell you how long. I’m just that principled, lol.
I want to find a Walmart like this.
You have to remember that I live in New York City. The great thing about being from New York is that you can go anywhere else in America and be amazed at how friendly and helpful the people are.
People from New York say that a lot, but I've always found people there to be friendly. And I've been to Minnesota.
Jeff - Editor - CoasterBuzz.com - My Blog
It might surprise you to learn that assholes are everywhere. I've never found the ratio in NYC particularly out of whack compared other cities.
ApolloAndy:
In a possible coincidence, this is the first season since 2001 that I don't have a Six Flags season pass. Discovery Kingdom is about an hour and change away, but given how little they've added, and the "decent but not great" visits we've had, I just don't see the point. I think we got to the park twice last year and probably totaled 4 hours of needlessly long lines and closed rides and attractions.
Frankly, I'll probably end up with a pass before the end of the summer, but if they give away the fall with a 2024 pass, I might not be a bad idea if we just hold out until then.
I am in the exact same situation. This is also the first time I haven't been a passholder since the year 2000. With the lack of additions to SFGAm this year and the terrible operations from last season, I decided to take some time away from SFGAm.
Like you I am also banking on them giving away the fall with 2024 passes in August. So might not be taking the full year off.
I'm sure we're not the only ones.
I couldn't justify paying twice as much for the Platinum Pass that includes all Six Flags parks, for absolutely nothing new.
Having seen some reports of many rides only running one train during Great America's first few operating days. It would seem the bad operations have continued, so I am happy with my decision not to pay more for less.
hambone:
But have you asked for help finding vitamins at a Duane Reade?
No, but I bought Funyuns in a CVS without incident.
Jeff - Editor - CoasterBuzz.com - My Blog
They can sugarcoat all that they want, but this company is in a downward spiral that’s going to be impossible to reverse. Sure, they have more revenue (because of inflationary pricing) but their expenses are going up at a higher rate of their revenue.
to even get these results, they have closed many attractions, and even entire parts of parks. This is definitely not a premium experience. And the parks were rather trashy just start with They can’t even put lipstick on this pig.
They have also obliterated their pool of season pass customers according to this report, so that revenue is going to decrease.
I can’t believe this incompetent CEO still has his job. He must be a good old boy with the board.
Agree about the sugarcoating, and I may be a naive optimist, but I wouldn't say that it's impossible. Leadership matters, and it absolutely trickles down. It's probably the only thing that I can describe as consistent across every job that I've ever had.
With that in mind, is the corporate leadership the right one to instill that culture? Probably not when you have dozens of direct reports to the CEO. But it is possible for some of the directs to compensate. That's why you have different experiences from park to park.
Jeff - Editor - CoasterBuzz.com - My Blog
I grew up outside of NYC and spent a lot of time in Fort Worth, Texas. My experience of the difference (which is perceived as being an a-hole, but is just a cultural difference) is that people in NYC will tell you when you mess up, whereas people in Texas will humor you, sometimes with a side serving of judgement.
Ex: You miss the light changing to green.
NYC: "<looooooong honk> Let's go! Move!"
Fort Worth: "Bless your heart. <eye roll>"
Hobbes: "What's the point of attaching a number to everything you do?"
Calvin: "If your numbers go up, it means you're having more fun."
I'll add that in NYC, you don't even have to miss the light turning green to get honked at. It's as if the light turning from red to green automatically triggers the horn in the car behind you.
I have noticed a BIG drop in crowds at Six Flags America after the new CEO took over. I'm not sure if it was because they raised the season ticket season prices, or that they got rid of all those "Bring a friend for free" deals that they used to have 3 or 4 times a year.
The waterpark will open in two weeks and for the first time ever the water park is not "included" with the daily pass. I have heard that it will be separated out from the main park, similar to Six Flags in New Jersey. I am interested to see how that all shakes out this year. Also, on a positive note the Superman coaster opened last weekend :)
HeyIsntThatRob?:
Did Superman open with one complete train?
Yes, and I was shocked it was back running before Memorial Day weekend. Only one of the two trains is back on the track. Same thing with Firebird, Jokers Jinx and Batman. Roar has both trains, but they are only running one. Wild One is the only coaster at this time that is running both trains. Thankfully, there is nobody at the park so the wait at any of these rides is no more than 5-10 minutes.
Interesting. So the water park (Hurricane Harbor) opens this Memorial Day weekend at Six Flags America. If you have a Platinum or Diamond season pass the water park is included with the pass. Daily tickets and Gold season passes need to buy a $7 daily add on to go to the waterpark. I was actually expecting a higher price tag. I don't think you can buy ANYTHING in the park (food or merchandize) for under $7 so that seems fair I guess? I don't know, I don't go to the water park :)
Wow, how long have they been charging extra for water park entry? It was always included when I went.
For the record, I haven't been there in 20 years, not sure if anyone is aware of that.
Vater:
Wow, how long have they been charging extra for water park entry?
This is the very first year. This is the new CEO attempt at gaining revenue I guess.
"Selim Bassoul became Six Flags’ new CEO in November 2021. Since then, his strategy has been different from past leaders, as he plans to increase prices, limit spending and add minor rather than major attractions."
That's certainly one way to help the bottom line. Charge more and add nothing.
It will be interesting to see if this helps. The waterpark is a big draw to the park in the summer months. In prior years, on hot days, half of DC rolled into the waterpark with their $39 season passes. Now, you have to spend $120 for a Platinum pass or more for a diamond pass. If you don't have those passes, you will have to pay $7 per person, and that will quickly add up over the season.
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