FUN Q4 2021 Earnings

Call Details

• Call Title: Six Flags Entertainment Q4 2021 Earnings Call
• Date: February 16, 2022 at 3:00 PM UTC
• Management Team:
  • Michael Russell (Corporate Director of Investor Relations)
  • Richard Zimmerman (Cedar Fair President and CEO)
  • Brian Witherow (Executive Vice President and CFO)

Call Summary

Financial Performance

• Net revenues for full year 2021 totaled $1.34 billion, compared with $1.47 billion in 2019.
• Full year attendance totaled 19.5 million guests, or approximately 70% of reported 2019 levels, driven by season pass and general admission channels.
• Full year in-park per capita spending was a record $62.03, which was up 28% versus 2019 levels.
• Out-of-park revenues for 2021 totaled $168 million, which was comparable to 2019 levels and included a system average daily room rate increase of 5% with certain locations up more than 20%.
• Operating costs and expenses for 2021 increased to $1.03 billion, up 4% versus 2019, driven by a $56 million increase in operating expenses offset by a $14 million decrease in cost of goods sold and a $3 million decrease in SG&A.
• Adjusted EBITDA for full year 2021 totaled $325 million, compared with $505 million for 2019, and adjusted EBITDA for Q4 2021 was a record $73 million with a 21% margin in the quarter.
• Operating days in 2021 totaled 1,765, roughly 20% fewer than the 2,224 operating days in 2019, which contributed materially to revenue shortfalls versus 2019.

Guidance

• Company is withholding formal financial guidance until confidence increases that further pandemic-related business disruptions are unlikely.
• The company believes it is well positioned to reinstate a sustainable cash distribution by the third quarter of 2022, if not sooner.
• Deferred revenues as of December 31, 2021 totaled $198 million, representing an increase of $37 million, or 23%, compared to the end of 2019.
• Season pass early pricing is up approximately 8% on average to date versus the prior carryover price basis, and management expects spring 2022 sales to be a critical portion of the cycle.
• Planned operating days for 2022 are projected to total almost 2,400 days, representing a 35% increase in planned operating days versus 2021.
• The company expects seasonal labor costs in 2022 to be up versus 2021 primarily due to more planned operating days, with incremental pressure from wage rates acknowledged as a risk.