Please replace the release dated August 10, 2023 with the
following corrected version to reflect the following adjustments to
the financial information and statements that were furnished in the
Original Form 8-K: (i) net income in the table that reconciles
net income (loss) to Adjusted EBITDA increased from $79.9 million
to $126.0 million for the twelve months ended July 2, 2023 (ii)
Modified EBITDA increased from $429.4 million to $513.1 million for
the twelve months ended July 2, 2023; (iii) Adjusted EBITDA
increased from $383.3 million to $467.0 million for the twelve
months ended July 2, 2023 and (iv) Adjusted EBITDA minus CAPEX
increased from $260.1 million to $343.8 million for the twelve
months ended July 2, 2023. Other than as described above, there are
no changes to the financial information and statements contained in
the release dated August 10, 2023.
The updated release reads:
SIX FLAGS REPORTS SECOND QUARTER 2023
PERFORMANCE
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 second quarter Revenue
of $444 million, Net Income of $21 million, and Adjusted EBITDA of
$161 million.
“Following a year of transition, our strategy is taking hold.
Despite a challenging weather backdrop in the first half of the
year, we are seeing a return to a solid growth trajectory in
attendance, revenue and earnings,” said Selim Bassoul, President
and CEO. “I am pleased to see our team members executing so well
towards our strategic objectives. Delighting our guests is our
number one priority, and this season, we have invested
significantly in park infrastructure and beautification, and we
have introduced an exciting lineup of new events, including Flavors
of the World and Summer Nights Spectacular. Looking ahead, we are
optimistic about the remainder of the season, with major
investments in our Oktoberfest Food Festival, Kids Boo Fest, Fright
Fest, and Holiday in the Park events; and looking further ahead to
2024, we will be investing heavily in new marketable attractions,
to further elevate our position as a leader in thrills.”
Second
Quarter 2023 Results
Three Months Ended
(Amounts in millions, except per share
data)
July 2, 2023
July 3, 2022
% Change vs. 2022
Total revenue
$
444
$
435
2
%
Net income attributable to Six Flags
Entertainment
$
21
$
45
(55)
%
Net income per share, diluted
$
0.25
$
0.53
(53)
%
Adjusted EBITDA (1) , (3)
$
161
$
154
5
%
Attendance
7.1
6.7
6
%
Spending per capita figures (2)
Total guest spending per capita
$
60.76
$
63.87
(5)
%
Admissions spending per capita
$
33.79
$
36.35
(7)
%
In-park spending per capita
$
26.97
$
27.52
(2)
%
Total revenue for second quarter 2023 increased $8 million, or
2%, compared to second quarter 2022, driven by higher attendance
and higher sponsorship and international licensing revenue,
partially offset by lower total guest spending per capita. The
increase in attendance was driven primarily by increased pass sales
in second quarter 2023 versus the prior period.
The $3.11 decrease in total guest spending per capita compared
to second quarter 2022 consisted of a $2.56 decrease in admissions
spending per capita and a $0.55 decrease in in-park spending per
capita. The decrease in admissions spending per capita was driven
primarily by lower average pricing on season passes in second
quarter 2023 versus second quarter 2022. The decrease in in-park
spending per capita was driven primarily by lower spend on parking,
retail, and flash passes, resulting from a higher mix of attendance
from season passes in second quarter 2023 versus the prior year.
Due to certain benefits available to season pass holders, guests
visiting on a season pass spend less per visit on certain in-park
products than guests visiting on a single-day ticket. The season
pass mix-driven decline in in-park spending per capita was
partially offset by higher food and beverage sales in second
quarter 2023 versus the prior year.
The company had net income of $21 million in second quarter
2023, compared to net income of $45 million in second quarter 2022.
The net income per share was $0.25 compared to net income per share
of $0.53 in second quarter 2022, driven primarily by an increase in
self-insurance reserves in second quarter 2023. Our self-insurance
reserves are periodically reviewed for changes in facts and
circumstances and adjustments are made as necessary. During the
second quarter of 2023, we revised the estimate of our ultimate
loss indications for both identified claims and incurred but not
reported (“IBNR”) claims in connection with our general liability
and worker’s compensation self-insurance reserves. The increase in
our revised estimate was based on greater than previously estimated
reserve adjustments on certain identified claims as well as an
observed pattern of increasing litigation and settlement costs and
changes to key actuarial assumptions utilized in determining
estimated ultimate losses, including loss development factors. The
change in estimate resulted in an increase to “selling, general and
administrative expense” in our condensed consolidated statements of
operation of $38 million during the three and six months ended July
2, 2023. The reduction in net income and net income per share were
also driven by higher interest expense in second quarter 2023
versus prior year due to higher floating rate debt costs and
increased borrowing under the revolver. Excluding the $38 million
self-insurance reserves estimate adjustment, cash operating costs
(4) increased by less than $1 million in second quarter 2023,
driven by higher advertising expense and seasonal wages, offset by
a reduction in full-time headcount and other cost-saving
initiatives. Adjusted EBITDA in second quarter 2023, which excludes
the $38 million self-insurance reserves estimate adjustment, was
$161 million, a $7 million increase from the prior year (3).
First Half 2023
Results
Six Months Ended
(Amounts in millions, except per share
data)
July 2, 2023
July 3, 2022
% Change vs. 2022
Total revenue
$
586
$
574
2
%
Net loss attributable to Six Flags
Entertainment
$
(49)
$
(20)
N/M
Net loss per share, diluted
$
(0.59)
$
(0.24)
N/M
Adjusted EBITDA (1) , (3)
$
143
$
137
5
%
Attendance
8.7
8.3
4
%
Spending per capita figures (2)
Total guest spending per capita
$
64.46
$
66.21
(3)
%
Admissions spending per capita
$
36.37
$
37.75
(4)
%
In-park spending per capita
$
28.09
$
28.46
(1)
%
Total revenue for first half 2023 increased $12 million, or 2%,
compared to first half 2022, driven by higher attendance and higher
sponsorship and international licensing revenue, partially offset
by lower total guest spending per capita. The increase in
attendance was driven primarily by increased pass sales in first
half 2023 versus the prior period.
The $1.75 decrease in total guest spending per capita compared
to first half 2022 consisted of a $1.38 decrease in admissions
spending per capita and a $0.37 decrease in in-park spending per
capita. The decrease in admissions spending per capita was driven
primarily by lower average pricing on season passes in first half
2023 relative to first half 2022. The decrease in in-park spending
per capita was driven primarily by lower spend on parking, retail,
and flash passes, resulting from a higher mix of attendance from
season passes in first half 2023 versus the prior year. Due to
certain benefits available to season pass holders, guests visiting
on a season pass spend less per visit on certain in-park products
than guests visiting on a single-day ticket. The season pass
mix-driven decline in in-park spending per capita was partially
offset by higher food and beverage sales in first half 2023 versus
the prior year.
The company had net loss of $49 million in first half 2023,
compared to net loss of $20 million in first half 2022. The net
loss per share was $0.59 compared to net loss per share of $0.24 in
first half 2022, driven primarily by a $38 million increase in
self-insurance reserves in first half 2023, as discussed above in
the second quarter 2023 results. The increase in net loss and net
loss per share were also driven by higher interest expense in first
half 2023 versus prior year due to higher floating rate debt costs
and increased borrowing under the revolver. Excluding the $38
million increase in self-insurance reserves estimate adjustment,
cash operating costs (4) in first half 2023 increased by $6 million
driven by higher advertising expense and seasonal wages, partially
offset by a reduction in full-time headcount and other cost-saving
initiatives. Adjusted EBITDA in first half 2023, which excludes the
$38 million self-insurance reserves estimate adjustment, was $143
million, a $6 million increase from the prior year (3).
As of July 2, 2023, the company had total reported debt of
$2,352 million, and cash or cash equivalents of $52 million. In
second quarter 2023, the company repaid $94 million in aggregate
net principal amount of debt. Deferred revenue was $177 million as
of July 2, 2023, an increase of $6 million, or 3%, from July 3,
2022. The increase was primarily due to higher season pass sales
year-to-date through July 2, 2023 versus July 3, 2022. In first
half 2023, the company invested $67 million in new capital, net of
insurance recoveries.
Conference Call
At 7:00 a.m. Central Time today, August 10, 2023, the company
will host a conference call to discuss its second quarter 2023
financial performance. The call is accessible through either the
Six Flags Investor Relations website at investors.sixflags.com, or
by dialing 1-833-629-0614 in the United States or +1-412-317-9257
outside the United States and requesting the Six Flags earnings
call. A replay of the call will be available on the company’s
investor relations site investors.sixflags.com.
About Six Flags Entertainment
Corporation
Six Flags Entertainment Corporation is the world’s largest
regional theme park company with 27 parks across the United States,
Mexico and Canada. For 63 years, Six Flags has entertained hundreds
of millions of guests with world-class coasters, themed rides,
thrilling water parks and unique attractions. Six Flags is
committed to creating an inclusive environment that fully embraces
the diversity of our team members and guests. For more information,
visit www.sixflags.com.
Forward Looking
Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
including statements regarding (i) the effect, impact, potential
duration or other implications of the COVID-19 pandemic or virus
variants, and any expectations we may have with respect thereto
including the continuing efficacy of the COVID-19 vaccines, (ii)
the adequacy of our cash flows from operations, available cash and
available amounts under our credit facilities to meet our liquidity
needs, including in the event of a prolonged closure of one or more
of our parks, (iii) our ability to execute our strategy to
significantly improve our financial performance and the guest
experience, (iv) expectations regarding consumer demand for
regional, outdoor, out-of-home entertainment, including for our
parks, and (v) expectations regarding our annual income tax
liability and the availability and effect of net operating loss
carryforwards and other tax benefits.
Forward-looking statements include all statements that are not
historical facts and often use words such as "anticipates,"
"intends," "plans," "seeks," "believes," "estimates," "expects,"
"may," "should," "could" and variations of such words or similar
expressions. These statements may involve risks and uncertainties
that could cause actual results to differ materially from those
described in such statements. These risks and uncertainties
include, among others, factors impacting attendance, such as local
conditions, natural disasters, contagious diseases, including
COVID-19 and Monkeypox, or the perceived threat of contagious
diseases, events, disturbances and terrorist activities;
regulations and guidance of federal, state and local governments
and health officials regarding the response to COVID-19 or other
health emergencies such as Monkeypox, including with respect to
business operations, safety protocols and public gatherings;
economic impact of political instability and conflicts globally,
including the war in Ukraine; recall of food, toys and other retail
products sold at our parks; accidents or incidents involving the
safety of guests and employees, or contagious disease outbreaks
occurring at our parks or other parks in the industry and adverse
publicity concerning our parks or other parks in the industry;
availability of commercially reasonable insurance policies at
reasonable rates; inability to achieve desired improvements and our
financial performance targets; adverse weather conditions such as
excess heat or cold, rain and storms; general financial and credit
market conditions, including our ability to access credit or raise
capital; the increased cost of capital due to raising interest
rates; macro-economic conditions (including supply chain issues and
the impact of inflation on customer spending patterns); changes in
public and consumer tastes; construction delays in capital
improvements or ride downtime; competition with other theme parks,
water parks and entertainment alternatives; dependence on a
seasonal workforce; unionization activities and labor disputes;
laws and regulations affecting labor and employee benefit costs,
including increases in state and federally mandated minimum wages,
and healthcare reform; environmental laws and regulations; laws and
regulations affecting corporate taxation; pending, threatened or
future legal proceedings and the significant expenses associated
with litigation; cybersecurity risks; and other factors could cause
actual results to differ materially from the company’s
expectations, including the risk factors or uncertainties listed
from time to time in the company’s filings with the Securities and
Exchange Commission (the “SEC”). Although we believe that the
expectations reflected in such forward-looking statements are
reasonable, we make no assurance that such expectations will be
realized and actual results could vary materially. Reference is
made to a more complete discussion of forward-looking statements
and applicable risks contained under the captions "Cautionary Note
Regarding Forward-Looking Statements" and "Risk Factors" in our
Annual and Quarterly Reports on Forms 10-K and 10-Q, and our other
filings and submissions with the SEC, each of which are available
free of charge on the company’s investor relations website at
investors.sixflags.com and on the SEC’s website at www.sec.gov.
Footnotes
(1)
See the following financial statements and
Note 4 to those financial statements for a discussion of Adjusted
EBITDA (a non-GAAP financial measure) and its reconciliation to net
income (loss).
(2)
We use certain per capita operational
metrics that measure the performance of our business on a per guest
basis and believe that these metrics provide relevant and useful
information for investors because they assist in comparing our
operating performance on a consistent basis, make it easier to
compare our results with those of other companies and our industry
and allows investors to review performance in the same manner as
our management.
- Total guest spending per capita is the
total revenue generated from our guests, on a per guest basis,
through admissions and in-park spending. Total guest spending per
capita is calculated by dividing the sum of park admissions revenue
and park food merchandise and other revenue by total
attendance.
- Admissions revenue per capita is the total revenue generated
from our guests, on a per guest basis, to enter our parks.
Admissions revenue per capita is calculated by dividing park
admission revenue by total attendance.
- In-park spending per capita is the total revenue generated from
our guests, on a per guest basis, on items sold within our parks,
such as food, games and merchandise. In-park spending per capita is
calculated by dividing park food, merchandise and other revenue by
total attendance.
(3)
During 2023, we reclassified the net
pension-related expense (benefit) to “Other (income) expense, net”,
in our consolidated statements of operations. This reclassification
has been reflected in all periods presented. As a result, Adjusted
EBITDA for the three-month period and the six-month period ended
July 3, 2022, declined by $1.6 million and $2.8 million,
respectively, as compared to the previously reported figures.
(4)
“Cash operating costs” includes operating
expenses (excluding depreciation and amortization) and selling,
general and administrative expenses (excluding stock-based
compensation).
Statement of Operations
Data
Three Months Ended
Six Months Ended
Twelve Months Ended
July 2, 2023
July 3, 2022
July 2, 2023
July 3, 2022
July 2, 2023
July 3, 2022
(Amounts in thousands, except per share
data)
(unaudited)
(unaudited)
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Park admissions
$
238,963
$
241,777
$
315,266
$
314,764
$
735,917
$
820,914
Park food, merchandise and other
190,792
183,081
243,578
237,350
577,193
662,680
Sponsorship, international agreements and
accommodations
13,952
10,564
27,053
21,415
57,494
45,029
Total revenues
443,707
435,422
585,897
573,529
1,370,604
1,528,623
Operating expenses (excluding depreciation
and amortization shown separately below)
173,669
173,357
282,539
283,076
590,123
652,947
Selling, general and administrative
expenses (excluding depreciation and amortization shown separately
below) (1)
90,448
53,498
134,695
92,755
203,798
218,126
Costs of products sold
34,787
35,710
44,552
45,825
106,873
125,144
Depreciation and amortization
28,910
27,537
58,024
56,586
118,562
114,135
Loss on impairment of park assets
—
—
—
—
16,943
—
Loss (gain) on disposal of assets
2,550
98
4,985
(2,002
)
10,914
8,896
Operating income
113,343
145,222
61,102
97,289
323,391
409,375
Interest expense, net
43,495
35,978
79,797
73,508
147,879
149,476
Loss on debt extinguishment
13,982
17,533
13,982
17,533
13,982
17,533
Other (income) expense, net
(2,261
)
(722
)
(3,093
)
(1,410
)
(1,767
)
6,348
Income (loss) before income taxes
58,127
92,433
(29,584
)
7,658
163,297
236,018
Income tax expense (benefit)
13,807
24,716
(4,045
)
5,603
37,312
57,838
Net income (loss)
$
44,320
$
67,717
$
(25,539
)
$
2,055
$
125,985
$
178,180
Less: Net income attributable to
noncontrolling interests
(23,766
)
(22,325
)
(23,766
)
(22,325
)
(46,092
)
(43,208
)
Net income (loss) attributable to Six
Flags Entertainment Corporation
$
20,554
$
45,392
$
(49,305
)
$
(20,270
)
$
79,893
$
134,972
Weighted-average common shares
outstanding:
Basic:
83,379
84,992
83,293
85,594
83,209
85,789
Diluted:
83,796
85,242
83,293
85,594
83,482
86,525
Income (loss) per average common share
outstanding:
Basic:
$
0.25
$
0.53
$
(0.59
)
$
(0.24
)
$
1.47
$
1.57
Diluted:
$
0.25
$
0.53
$
(0.59
)
$
(0.24
)
$
1.47
$
1.56
(1)
Includes stock-based compensation of
$2,179 and $3,223 for the three-month periods ended July 2, 2023,
and July 3, 2022, respectively, stock-based compensation of $5,493
and $7,448 for the six-month periods ended July 2, 2023 and July 3,
2022, respectively, and stock-based compensation of $5,718 and
$19,272 for the twelve-month periods ended July 2, 2023, and July
3, 2022.
As of
July 2, 2023
January 1, 2023
July 3, 2022
(Amounts in thousands, except share
data)
(unaudited)
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
51,580
$
80,122
$
74,802
Accounts receivable, net
93,077
49,405
70,473
Inventories
43,172
44,811
47,531
Prepaid expenses and other current
assets
84,808
66,452
69,990
Total current assets
272,637
240,790
262,796
Property and equipment, net:
Property and equipment, at cost
2,666,636
2,592,485
2,552,144
Accumulated depreciation
(1,410,480
)
(1,350,739
)
(1,297,710
)
Total property and equipment, net
1,256,156
1,241,746
1,254,434
Goodwill
659,618
659,618
659,618
Intangible assets, net of accumulated
amortization
344,153
344,164
344,176
Right-of-use operating leases, net
154,182
158,838
180,836
Debt issuance costs
6,110
2,764
3,832
Deposits and other assets
20,737
17,905
8,101
Total assets
$
2,713,593
$
2,665,825
$
2,713,793
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities:
Accounts payable
$
54,174
$
38,887
$
67,925
Accrued compensation, payroll taxes and
benefits
21,571
15,224
24,968
Self-insurance reserves
68,633
34,053
37,017
Accrued interest payable
33,216
38,484
24,713
Other accrued liabilities
79,959
67,346
102,626
Deferred revenue
176,811
128,627
171,238
Short-term borrowings
169,000
100,000
200,000
Short-term lease liabilities
11,730
11,688
11,394
Total current liabilities
615,094
434,309
639,881
Noncurrent liabilities:
Long-term debt
2,183,325
2,280,531
2,277,910
Long-term lease liabilities
163,950
164,804
175,786
Other long-term liabilities
29,077
30,714
5,476
Deferred income taxes
172,849
184,637
152,041
Total liabilities
3,164,295
3,094,995
3,251,094
Redeemable noncontrolling interests
544,764
521,395
543,719
Stockholders' deficit:
Preferred stock, $1.00 par value
—
—
—
Common stock, $0.025 par value,
280,000,000 shares authorized; 83,464,774, 83,178,294 and
83,026,556 shares issued and outstanding at July 2, 2023, January
1, 2023 and July 3, 2022, respectively
2,086
2,079
2,075
Capital in excess of par value
1,109,779
1,104,051
1,103,534
Accumulated deficit
(2,034,736
)
(1,985,500
)
(2,114,697
)
Accumulated other comprehensive loss, net
of tax
(72,595
)
(71,195
)
(71,932
)
Total stockholders' deficit
(995,466
)
(950,565
)
(1,081,020
)
Total liabilities and stockholders'
deficit
$
2,713,593
$
2,665,825
$
2,713,793
Six Months Ended
July 2, 2023
July 3, 2022
(Amounts in thousands)
(unaudited)
(unaudited)
Cash flows from operating
activities:
Net (loss) income
$
(25,539
)
$
2,055
Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Depreciation and amortization
58,024
56,586
Stock-based compensation
5,493
7,448
Interest accretion on notes payable
511
555
Loss on debt extinguishment
13,982
17,533
Amortization of debt issuance costs
2,889
3,965
Loss (gain) on disposal of assets
4,985
(2,002
)
Deferred income tax (benefit) expense
(7,467
)
726
Other
(5,573
)
(3,403
)
Changes in operating assets and
liabilities:
(Increase) decrease in accounts
receivable
(42,233
)
27,327
Increase in inventories, prepaid expenses
and other current assets
(25,480
)
(34,698
)
(Increase) decrease in deposits and other
assets
1,315
(1,928
)
Decrease in ROU operating leases
5,614
5,517
Increase in accounts payable, deferred
revenue, accrued liabilities and other long-term liabilities
104,717
11,012
Decrease in operating lease
liabilities
(1,340
)
(1,615
)
Decrease in accrued interest payable
(5,269
)
(25,841
)
Net cash provided by operating
activities
84,629
63,237
Cash flows from investing
activities:
Additions to property and equipment
(68,130
)
(59,006
)
Property insurance recoveries
1,089
3,664
Net cash used in investing activities
(67,041
)
(55,342
)
Cash flows from financing
activities:
Repayment of borrowings
(1,028,623
)
(360,000
)
Proceeds from borrowings
998,984
200,000
Payment of debt issuance costs
(19,294
)
(12,600
)
Payment of cash dividends
—
(3
)
Proceeds from issuance of common stock
—
1,665
Payment of tax withholdings on
equity-based compensation through shares withheld
(241
)
(260
)
Reduction in finance lease liability
(498
)
(490
)
Net cash used in financing activities
(50,000
)
(269,018
)
Effect of exchange rate on cash
3,870
340
Net change in cash and cash
equivalents
(28,542
)
(260,783
)
Cash and cash equivalents at beginning of
period
80,122
335,585
Cash and cash equivalents at end of
period
$
51,580
$
74,802
Supplemental cash flow
information
Cash paid for interest
$
83,031
$
95,141
Cash paid for income taxes
$
6,892
$
1,661
Definition and Reconciliation of Non-GAAP Financial
Measures
We prepare our financial statements in accordance with United
States generally accepted accounting principles ("GAAP"). In our
press release, we make reference to non-GAAP financial measures
including Modified EBITDA, Adjusted EBITDA and Adjusted EBITDA
minus capex. The definition for each of these non-GAAP financial
measures is set forth below in the notes to the reconciliation
tables. We believe that these non-GAAP financial measures provide
important and useful information for investors to facilitate a
comparison of our operating performance on a consistent basis from
period to period and make it easier to compare our results with
those of other companies in our industry. We use these measures for
internal planning and forecasting purposes, to evaluate ongoing
operations and our performance generally, and in our annual and
long-term incentive plans. By providing these measures, we provide
our investors with the ability to review our performance in the
same manner as our management.
However, because these non-GAAP financial measures are not
determined in accordance with GAAP, they are susceptible to varying
calculations, and not all companies calculate these measures in the
same manner. As a result, these non-GAAP financial measures as
presented may not be directly comparable to a similarly titled
non-GAAP financial measure presented by another company. These
non-GAAP financial measures are presented as supplemental
information and not as alternatives to any GAAP financial measures.
When reviewing a non-GAAP financial measure, we encourage our
investors to fully review and consider the related reconciliation
as detailed below.
The following tables set forth a reconciliation of net (loss)
income to Adjusted EBITDA for the three-month periods, six-month
periods and twelve-month periods ended July 2, 2023, and July 3,
2022:
Three Months Ended
Six Months Ended
Twelve Months Ended
(Amounts in thousands, except per share
data)
July 2, 2023
July 3, 2022
July 2, 2023
July 3, 2022
July 2, 2023
July 3, 2022
Net income (loss)
$
44,320
$
67,717
$
(25,539
)
$
2,055
$
125,985
$
178,180
Income tax expense (benefit)
13,807
24,716
(4,045
)
5,603
37,312
57,838
Other (income) expense, net (2)
(2,261
)
(722
)
(3,093
)
(1,410
)
(1,767
)
6,348
Loss on debt extinguishment
13,982
17,533
13,982
17,533
13,982
17,533
Interest expense, net
43,495
35,978
79,797
73,508
147,879
149,476
Loss (gain) on disposal of assets
2,550
98
4,985
(2,002
)
10,914
8,896
Depreciation and amortization
28,910
27,537
58,024
56,586
118,562
114,135
Loss on impairment of park assets
—
—
—
—
16,943
—
Stock-based compensation
2,179
3,223
5,493
7,448
5,718
19,272
Self-insurance reserve adjustment (3)
37,558
—
37,558
—
37,558
—
Modified EBITDA (4)
$
184,540
$
176,080
$
167,162
$
159,321
$
513,086
$
551,678
Third party interest in EBITDA of certain
operations (5)
(23,766
)
(22,325
)
(23,766
)
(22,325
)
(46,092
)
(43,208
)
Adjusted EBITDA (4)
$
160,774
$
153,755
$
143,396
$
136,996
$
466,994
$
508,470
Capital expenditures, net of property
insurance recovery (6)
(42,034
)
(26,352
)
(67,041
)
(55,342
)
(123,208
)
(134,834
)
Adjusted EBITDA minus CAPEX (4)
$
118,740
$
127,403
$
76,355
$
81,654
$
343,786
$
373,636
(2)
Amounts recorded as “Other (income)
expense, net” include certain non-recurring costs incurred in
conjunction with changes made to our organizational structure in
December 2021. During 2023, we reclassified the net pension-related
expense (benefit) to other (income) expense, net. in our
consolidated statements of operations. This reclassification has
been reflected in all periods presented. As a result of this
reclassification, Adjusted EBITDA for the three-month, six-month
and twelve-month periods ended July 3, 2022, declined by $1.6
million, $2.8 million and $4.7 million, respectively, as compared
to the previously reported figures.
(3)
Amount relates to an adjustment to our
self-insurance reserves resulting from a change in accounting
estimate that increased our ultimate loss indications on both
identified claims and incurred but not reported claims, as
discussed in more detail above in our review of second quarter 2023
results. We have excluded this adjustment from our reported
Adjusted EBITDA because we believe (i) the change in actuarial
assumptions and related change in accounting estimate that gave
rise to the adjustment is unusual and not expected to be recurring;
(ii) excluding it provides more meaningful comparisons to our
historical results; and (iii) excluding it provides more meaningful
comparisons to other companies in our industry.
(4)
Modified EBITDA,” a non-GAAP measure, is
defined as our consolidated income (loss) from continuing
operations: excluding the following: the cumulative effect of
changes in accounting principles, discontinued operations gains or
losses, income tax expense or benefit, restructure costs or
recoveries, reorganization items (net), other income or expense,
gain or loss on early extinguishment of debt, equity in income or
loss of investees, interest expense (net), gain or loss on disposal
of assets, gain or loss on the sale of investees, amortization,
depreciation, stock-based compensation, fresh start accounting
valuation adjustments and other significant non-recurring items.
Modified EBITDA, as defined herein, may differ from similarly
titled measures presented by other companies. Management uses
non-GAAP measures for budgeting purposes, measuring actual results,
allocating resources and in determining employee incentive
compensation. We believe that Modified EBITDA provides relevant and
useful information for investors because it assists in comparing
our operating performance on a consistent basis, makes it easier to
compare our results with those of other companies in our industry
as it most closely ties our performance to that of our competitors
from a park-level perspective and allows investors to review
performance in the same manner as our management.
"Adjusted EBITDA," a non-GAAP measure, is
defined as Modified EBITDA minus the interests of third parties in
the Modified EBITDA of properties that are less than wholly owned
(consisting of Six Flags Over Georgia, Six Flags White Water
Atlanta and Six Flags Over Texas). Adjusted EBITDA is approximately
equal to “Parent Consolidated Adjusted EBITDA” as defined in our
secured credit agreement, except that Parent Consolidated Adjusted
EBITDA excludes Adjusted EBITDA from equity investees that is not
distributed to us in cash on a net basis and has limitations on the
amounts of certain expenses that are excluded from the calculation.
Adjusted EBITDA as defined herein may differ from similarly titled
measures presented by other companies. Our board of directors and
management use Adjusted EBITDA to measure our performance and our
current management incentive compensation plans are based largely
on Adjusted EBITDA. We believe that Adjusted EBITDA is frequently
used by all our sell-side analysts and most investors as their
primary measure of our performance in the evaluation of companies
in our industry. In addition, the instruments governing our
indebtedness use Adjusted EBITDA to measure our compliance with
certain covenants and, in certain circumstances, our ability to
make certain borrowings. Adjusted EBITDA, as computed by us, may
not be comparable to similar metrics used by other companies in our
industry.
“Adjusted EBITDA minus capex,” a non-GAAP
measure, is defined as Adjusted EBITDA minus capital expenditures,
net of property insurance recoveries. Adjusted EBITDA minus capex
as defined herein may differ from similarly titled measures
presented by other companies. Our board of directors and management
use Adjusted EBITDA minus capex to measure our performance and our
current management incentive compensation plans are based largely
on Adjusted EBITDA minus capex. We believe that Adjusted EBITDA
minus capex is frequently used by analysts and investors as a
measure of our performance. Adjusted EBITDA minus capex, as
computed by us, may not be comparable to similar metrics used by
other companies in our industry.
(5)
Represents interests of non-controlling
interests in the Adjusted EBITDA of Six Flags Over Georgia, Six
Flags Over Texas and Six Flags White Water Atlanta.
(6)
Capital expenditures, net of property
insurance recovery (“CAPEX”) represents cash spent on property,
plant and equipment, net of property insurance recoveries.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230810463189/en/
Evan Bertrand Vice President, Investor Relations and Treasurer
+1-972-595-5180 investors@sftp.com
Six Flags Entertainment (NYSE:SIX)
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