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 third quarter Revenue
of $547 million, Net Income of $111 million, and Adjusted EBITDA of
$220 million.
“We have put forth substantial effort this year to establish a
baseline for sustainable and meaningful growth, and our third
quarter was focused on investment in the guest experience,” said
Selim Bassoul, President and CEO. "I am proud of our team for the
great strides made in advancing our digital transformation and the
expansion and acceleration of our events calendar. We are also
pleased with the progress we are seeing in sales for next year's
season passes, which are well ahead of this time last year and a
sign of the excitement our guests are feeling about our parks. In a
year challenged by unusually difficult weather, we have been able
to grow our attendance and increase revenues while simultaneously
investing in our park infrastructure, attractions, and technology,
as well as pay down debt."
Third Quarter 2023
Results
Three Months Ended
(Amounts in millions, except per share
data)
October 1, 2023
October 2, 2022
% Change vs. 2022
Total revenue
$
547
$
505
8
%
Net income attributable to Six Flags
Entertainment (5)
$
111
$
114
(3
)%
Net income per share, diluted (5)
$
1.32
$
1.37
(3
)%
Adjusted EBITDA (1) , (3)
$
220
$
225
(2
)%
Attendance
9.3
8.0
16
%
Spending per capita figures: (2)
Total guest spending per capita
$
56.37
$
60.96
(8
)%
Admissions spending per capita
$
30.86
$
34.93
(12
)%
In-park spending per capita
$
25.51
$
26.03
(2
)%
Total revenue for third quarter 2023 increased $43 million, or
8%, compared to third quarter 2022, driven by higher attendance and
higher sponsorship revenue, partially offset by lower total guest
spending per capita. The increase in attendance was driven
primarily by higher season pass sales in third quarter 2023 versus
prior year, combined with increased advertising and media spend
through the third quarter, as well as an accelerated start to the
Fall events schedule.
The $4.59 decrease in total guest spending per capita compared
to third quarter 2022 consisted of a $4.07 decrease in admissions
spending per capita and a $0.52 decrease in in-park spending per
capita. The decrease in admissions spending per capita was driven
primarily by the planned effort to optimize season pass and
single-day ticket pricing, which resulted in lower average
admissions pricing in third quarter 2023 versus third 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 third 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
third quarter 2023 versus the prior year.
The company had net income of $111 million in third quarter
2023, compared to net income of $114 million in third quarter 2022.
The net income per share was $1.32 compared to net income per share
of $1.37 in third quarter 2022 (5). Expenses increased in third
quarter 2023 versus prior year due to several factors, including an
increase in cost of sales and cash operating costs (4) driven by
higher attendance in third quarter 2023, increased advertising
spend to promote season passes, higher costs associated with an
earlier start to the Fall events schedule, and investments in new
entertainment, events, shows, and guest-facing digital initiatives.
Adjusted EBITDA in third quarter 2023 was 220 million, a $5 million
decrease from the prior year (3).
First Nine Months 2023
Results
Nine Months Ended
(Amounts in millions, except per share
data)
October 1, 2023
October 2, 2022
% Change vs. 2022
Total revenue
$
1,133
$
1,078
5
%
Net income attributable to Six Flags
Entertainment (5)
$
61
$
91
(33
)%
Net income per share, diluted (5)
$
0.73
$
1.07
(32
)%
Adjusted EBITDA (1) , (3)
$
363
$
362
—
%
Attendance
17.9
16.4
9
%
Spending per capita figures (2)
Total guest spending per capita
$
60.28
$
63.63
(5
)%
Admissions spending per capita
$
33.52
$
36.36
(8
)%
In-park spending per capita
$
26.76
$
27.27
(2
)%
Total revenue for first nine months 2023 increased $55 million,
or 5%, compared to first nine months 2022, driven by higher
attendance and higher sponsorship, partially offset by lower total
guest spending per capita. The increase in attendance was driven
primarily by a higher season pass sales in first nine months 2023
versus prior year, combined with increased advertising and media
spend throughout the first nine months, as well as an accelerated
start to the Fall events schedule.
The $3.35 decrease in total guest spending per capita compared
to first nine months 2022 consisted of a $2.84 decrease in
admissions spending per capita and a $0.51 decrease in in-park
spending per capita. The decrease in admissions spending per capita
was driven primarily by the planned effort to optimize season pass
and single-day ticket pricing, which resulted in lower average
admissions pricing in third quarter 2023 versus third 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 first nine months
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 nine months 2023 versus the prior year.
The company had net income of $61 million in first nine months
2023, compared to net income of $91 million in first nine months
2022. The net income per share was $0.73 compared to net income per
share of $1.07 in first nine months 2022 (5). In second quarter
2023, the company incurred an increase in self-insurance reserves
of $38 million. Our self-insurance reserves are periodically
reviewed for changes in facts and circumstances and adjustments are
made as necessary. During second quarter 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. Additionally, expenses increased in first nine
months 2023 versus prior year due to several factors, including an
increase in cost of sales and cash operating costs (4) driven by
higher attendance in first nine months 2023, increased advertising
spend to promote season passes, higher costs associated with an
earlier start to the Fall events schedule, and investments in new
entertainments, shows, events, and guest-facing digital
initiatives. Adjusted EBITDA in first nine months 2023, which
excludes the $38 million self-insurance reserves estimate
adjustment, was $363 million, a $1 million increase from the prior
year (3).
As of October 1, 2023, the company had total reported debt of
$2,273 million, and cash or cash equivalents of $67 million. In
third quarter 2023, the company repaid $80 million in aggregate net
principal amount of debt. Deferred revenue was $148 million as of
October 1, 2023, an increase of $21 million, or 17%, from October
2, 2022. The increase was primarily due to higher season pass sales
year-to-date through October 1, 2023 versus October 2, 2022. In
first nine months 2023, the company invested $109 million in new
capital, net of insurance recoveries.
The company will no longer host a conference call to discuss its
third quarter 2023 financial performance on November 9, 2023 as
previously announced..
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 nine-month period ended
October 2, 2022, declined by $1.2 million and $4.0 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).
(5)
Reflects revisions made to previously
issued financial statements for immaterial errors in the unaudited
interim financial statements for the periods ended April 3, 2022,
July 3, 2022 and October 2, 2022 related to the recognition of
stock-compensation. As a result of these revisions, selling,
general and administrative expense for the three-month and
nine-month periods ending October 2, 2022, increased $2.3 million
and $4.3 million, respectively, as compared to the previously
reported figures.
Statement of Operations Data
Three Months Ended
Nine Months Ended
Twelve Months Ended
October 1, 2023
October 2, 2022
October 1, 2023
October 2, 2022
October 1, 2023
October 2, 2022
(Amounts in thousands, except per share
data)
(unaudited)
(unaudited)
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Park admissions
$
286,319
$
280,502
$
601,585
$
595,266
$
741,734
$
756,199
Park food, merchandise and other
236,703
209,099
480,281
446,449
604,797
591,280
Sponsorship, international agreements and
accommodations
24,433
15,230
51,486
36,645
66,697
47,691
Total revenues
547,455
504,831
1,133,352
1,078,360
1,413,228
1,395,170
Operating expenses (excluding depreciation
and amortization shown separately below)
206,461
180,937
489,000
464,013
615,647
606,508
Selling, general and administrative
expenses (excluding depreciation and amortization shown separately
below) (1) (2)
57,952
40,481
192,647
135,194
226,943
196,691
Costs of products sold
42,885
40,164
87,437
85,989
109,594
111,208
Depreciation and amortization
27,942
30,186
85,966
86,772
116,318
116,268
Impairment of park assets
—
—
—
—
16,943
—
Loss on disposal of assets
1,760
5,038
6,745
3,036
7,636
13,310
Operating income
210,455
208,025
271,557
303,356
320,147
351,185
Interest expense, net
38,263
34,197
118,060
107,705
151,945
145,448
Loss on debt extinguishment
—
—
13,982
17,533
13,982
17,533
Other (income) expense, net
1,155
(659
)
(1,938
)
(2,069
)
47
5,072
Income before income taxes
171,037
174,487
141,453
180,187
154,173
183,132
Income tax expense
36,570
38,654
32,525
44,257
35,228
49,949
Net income
$
134,467
$
135,833
$
108,928
$
135,930
$
118,945
$
133,183
Less: Net income attributable to
noncontrolling interests
(23,767
)
(22,326
)
(47,533
)
(44,651
)
(47,533
)
(44,651
)
Net income attributable to Six Flags
Entertainment Corporation
$
110,700
$
113,507
$
61,395
$
91,279
$
71,412
$
88,532
Weighted-average common shares
outstanding:
Basic:
83,510
83,094
83,365
84,760
83,313
85,084
Diluted:
83,780
83,107
83,736
84,919
83,585
86,264
Earnings per average common share
outstanding:
Basic:
$
1.33
$
1.37
$
0.74
$
1.08
$
0.86
$
1.04
Diluted:
$
1.32
$
1.37
$
0.73
$
1.07
$
0.85
$
1.03
____________________________________________________________________________
(1)
Includes stock-based compensation of
$3,525 and $3,998 for the three-month periods ended October 1,
2023, and October 2, 2022, respectively, stock-based compensation
of $9,018 and $13,404 for the nine-month periods ended October 1,
2023 and October 2, 2022, respectively, and stock-based
compensation of $10,832 and $18,229 for the twelve-month periods
ended October 1, 2023, and October 2, 2022.
(2)
Reflects revisions to be made to
previously issued financial statements for immaterial errors in the
unaudited interim financial statements for the periods ended April
3, 2022, July 3, 2022 and October 2, 2022 related to the
recognition of stock-based compensation in the Company's quarterly
report on Form 10-Q for the three months ended October 1, 2023. As
a result of these revisions, selling, general and administrative
expense for the three-month, nine-month and twelve-month periods
ended October 2, 2022, increased by $2.3 million, $4.3 million and
$5.2 million, respectively, as compared to the previously reported
figures in the statements of operations. Stock-based compensation
increased by $4.2 million in the statement of cash flows.
Accumulated deficit decreased and capital in excess of par value
increased by $15.2 million and $11.9 million as of January 1, 2023
and October 2, 2022, respectively on our balance sheet.
As of
October 1, 2023
January 1, 2023
October 2, 2022
(Amounts in thousands, except share
data)
(unaudited)
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
66,763
$
80,122
$
73,314
Accounts receivable, net
90,877
49,405
72,299
Inventories
38,298
44,811
48,493
Prepaid expenses and other current
assets
74,234
66,452
77,329
Total current assets
270,172
240,790
271,435
Property and equipment, net:
Property and equipment, at cost
2,699,159
2,592,485
2,559,635
Accumulated depreciation
(1,431,176
)
(1,350,739
)
(1,320,141
)
Total property and equipment, net
1,267,983
1,241,746
1,239,494
Goodwill
659,618
659,618
659,618
Intangible assets, net of accumulated
amortization
344,147
344,164
344,170
Right-of-use operating leases, net
150,528
158,838
176,178
Other assets, net
24,685
20,669
13,171
Total assets
$
2,717,133
$
2,665,825
$
2,704,066
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities:
Accounts payable
$
46,121
$
38,887
$
47,808
Accrued compensation, payroll taxes and
benefits
20,547
15,224
14,838
Self-insurance reserves
65,505
34,053
44,563
Accrued interest payable
44,062
38,484
26,616
Other accrued liabilities
69,323
67,346
102,382
Deferred revenue
147,650
128,627
126,578
Short-term borrowings
89,000
100,000
110,000
Current portion of long-term debt
56,867
—
—
Short-term lease liabilities
11,217
11,688
11,451
Total current liabilities
550,292
434,309
484,236
Noncurrent liabilities:
Long-term debt
2,127,495
2,280,531
2,279,220
Long-term lease liabilities
152,575
164,804
162,569
Other long-term liabilities
28,893
30,714
5,519
Deferred income taxes
193,175
184,637
194,358
Total liabilities
3,052,430
3,094,995
3,125,902
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; 83,540,861, 83,178,294 and
83,152,582 shares issued and outstanding at October 1, 2023,
January 1, 2023 and October 2, 2022, respectively
2,088
2,079
2,079
Capital in excess of par value (2)
1,128,376
1,119,222
1,116,959
Accumulated deficit (2)
(1,939,207
)
(2,000,671
)
(2,010,774
)
Accumulated other comprehensive loss, net
of tax
(71,318
)
(71,195
)
(73,819
)
Total stockholders' deficit
(880,061
)
(950,565
)
(965,555
)
Total liabilities and stockholders'
deficit
$
2,717,133
$
2,665,825
$
2,704,066
Nine Months Ended
October 1, 2023
October 2, 2022
(Amounts in thousands)
(unaudited)
(unaudited)
Cash flows from operating
activities:
Net income
$
108,928
$
135,930
Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Depreciation and amortization
85,966
86,772
Stock-based compensation (2)
9,018
13,404
Interest accretion on notes payable
716
833
Loss on debt extinguishment
13,982
17,533
Amortization of debt issuance costs
4,139
5,531
Loss on disposal of assets
6,745
3,036
Deferred income tax expense
13,731
43,434
Other
(3,741
)
(276
)
Changes in operating assets and
liabilities:
(Increase) decrease in accounts receivable
- trade
(40,177
)
25,519
Increase in inventories, prepaid expenses
and other current assets
(11,139
)
(43,543
)
(Increase) decrease in deposits and other
assets
3,376
(3,697
)
Decrease in ROU operating leases
8,708
10,176
(Decrease) increase in accounts payable,
deferred revenue and accrued liabilities and other long-term
liabilities
53,738
(62,274
)
Decrease in operating lease
liabilities
(12,310
)
(14,628
)
(Decrease) increase in accrued interest
payable
5,578
(23,938
)
Net cash provided by operating
activities
247,258
193,812
Cash flows from investing
activities:
Additions to property and equipment
(110,371
)
(78,038
)
Property insurance recoveries
1,089
4,655
Net cash used in investing activities
(109,282
)
(73,383
)
Cash flows from financing
activities:
Repayment of borrowings
(1,133,623
)
(450,000
)
Proceeds from borrowings
1,023,984
200,000
Payment of debt issuance costs
(19,821
)
—
Stock repurchases
—
(96,774
)
Redemption premium payments on debt
extinguishment
—
(12,600
)
Payment of cash dividends
—
(199
)
Proceeds from issuance of common stock
—
1,665
Payment of tax withholdings on
equity-based compensation through shares withheld
(339
)
(414
)
Reduction in finance lease liability
(750
)
(2,025
)
Purchase of redeemable noncontrolling
interest
(328
)
(556
)
Distributions to noncontrolling
interests
(23,766
)
(22,326
)
Net cash used in financing activities
(154,643
)
(383,229
)
Effect of exchange rate on cash
3,308
529
Net decrease in cash and cash
equivalents
(13,359
)
(262,271
)
Cash and cash equivalents at beginning of
period
80,122
335,585
Cash and cash equivalents at end of
period
$
66,763
$
73,314
Supplemental cash flow
information
Cash paid for interest
$
109,518
$
125,919
Cash paid for income taxes
$
14,173
$
3,582
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 income to
Adjusted EBITDA for the three-month periods, nine-month periods and
twelve-month periods ended October 1, 2023, and October 2,
2022:
Three Months Ended
Nine Months Ended
Twelve Months Ended
(Amounts in thousands, except per share
data)
October 1, 2023
October 2, 2022
October 1, 2023
October 2, 2022
October 1, 2023
October 2, 2022
Net income
$
134,467
$
135,833
$
108,928
$
135,930
$
118,945
$
133,183
Income tax expense
36,570
38,654
32,525
44,257
35,228
49,949
Other (income) expense, net (3)
1,155
(659
)
(1,938
)
(2,069
)
47
5,072
Loss on debt extinguishment
—
—
13,982
17,533
13,982
17,533
Interest expense, net
38,263
34,197
118,060
107,705
151,945
145,448
Loss on disposal of assets
1,760
5,038
6,745
3,036
7,636
13,310
Depreciation and amortization
27,942
30,186
85,966
86,772
116,318
116,268
Impairment of park assets
—
—
—
—
16,943
—
Stock-based compensation (2)
3,525
3,998
9,018
13,404
10,832
18,229
Self-insurance reserve adjustment (4)
—
—
37,558
—
37,558
—
Modified EBITDA (5)
$
243,682
$
247,247
$
410,844
$
406,568
$
509,434
$
498,992
Third party interest in EBITDA of certain
operations (6)
(23,767
)
(22,326
)
(47,533
)
(44,651
)
(47,533
)
(44,651
)
Adjusted EBITDA (5)
$
219,915
$
224,921
$
363,311
$
361,917
$
461,901
$
454,341
Capital expenditures, net of property
insurance recoveries (7)
(42,241
)
(18,041
)
(109,282
)
(73,383
)
(147,408
)
(133,310
)
Adjusted EBITDA minus CAPEX (5)
$
177,674
$
206,880
$
254,029
$
288,534
$
314,493
$
321,031
____________________________________________________________________________
(3)
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, nine-month
and twelve-month periods ended October 2, 2022, declined by $1.2
million, $4.0 million and $6.1 million, respectively, as compared
to the previously reported figures.
(4)
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.
(5)
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.
(6)
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.
(7)
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/20231102643050/en/
Evan Bertrand Vice President, Investor Relations and Treasurer
+1-972-595-5180 investorrelations@sftp.com
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