FUN Q1 2024 Earnings

Call Details

• Call Title: Six Flags Entertainment Q1 2024 Earnings Call
• Date: May 9, 2024 at 2:00 PM UTC
• Management Team:
  • Michael Russell (Corporate Director of Investor Relations)
  • Richard Zimmerman (Chief Executive Officer)
  • Brian Witherow (Chief Financial Officer)

Call Summary

Financial Performance

• The company reported Q1 net revenues of $102 million on attendance of 1.3 million guests for the period ended March 31, 2024.
• On a comparable same-week basis, net revenues increased 3% or $3 million and attendance was up 10% or 125,000 visits versus the comparable period in 2023.
• Out-of-park revenues set a record at $23 million for the quarter, which was up $4 million year-over-year in absolute terms.
• In-park per capita spending declined 6% ($3.94) in the reported quarter relative to the prior-year period and was down 8% ($5.39) on a same-week comparable basis.
• Operating costs and expenses for the quarter totaled $215 million, up $25 million year-over-year, driven by a $15 million increase in SG&A, $9 million increase in operating expenses, and $1 million increase in cost of goods sold.
• Excluding merger-related costs, SG&A increased $5 million versus prior year, attributed to the extra calendar week and higher technology spend.
• Cost of goods sold as a percentage of food, merchandise, and games revenue improved by 250 basis points versus prior-year Q1 due to planned food and beverage cost initiatives.

Guidance

• Full-year capital expenditure guidance remains targeted between $210 million and $220 million for 2024.
• There was no change to full-year attendance or revenue guidance disclosed on the call.
• The company stated that its 2024 season program is fully planned and that the Q1 results position the company well for the peak summer season.
• Deferred revenue at quarter end totaled $233 million, which management characterized as approximately 10% higher than the same time last year and a record excluding COVID carryover benefits.
• Recent season pass pricing has trended up mid-single digits after initial lower pricing in certain markets, while unit sales have also increased mid-single digits in recent weeks.
• No quantitative forward-looking GAAP or non-GAAP earnings or revenue targets were provided on the call.