Six Flags reports fourth quarter and full year 2022 performance (2023)

Six Flags reports fourth quarter and full year 2022 performance

Arlington, Texas--(BUSINESS WIRE)--Six Flags Entertainment Corporation (NYSE: SIX), the world's largest regional theme park company and the largest operator of water parks inNorth America, today reported fourth-quarter revenue of$280 million, net income of13 million dollarsand Adjusted EBITDA of$99 million. For the year as a whole, the company reported sales of$1,358 million, net income of$109 millionand Adjusted EBITDA of$465 million.

“We are pleased to have delivered record Adjusted EBITDA in the fourth quarter⁽¹⁾, proving that our new strategy and culture is beginning to take effect,” said Selim Bassoul, President and CEO. “I am proud of our team's commitment to improving the guest experience. During the fourth quarter, we introduced three new events and expanded our biggest event of the year, Fright Fest, resulting in improved visitor trends and guest satisfaction. Our team is working hard to develop an exciting offering of new events, rides and attractions for 2023 as we look to build on our success in the fourth quarter.”

Total revenue for the fourth quarter of 2022 declined$37 millionor 12% compared to Q4 2021, driven by lower attendance partially offset by higher guest spend per capita. The decline in attendance was due to an increase in ticket prices, the elimination of free tickets and heavily discounted pass products, and fewer days of operation. The Company did not open six parks in Q4 2022 that were open for Holiday in the Park in Q4 2021, which accounted for 279,000 additional guests in Q4 2021.

The12,15 $Guest spend per capita increase compared to Q4 2021 consisted of a6,60 $Increase per capita spending on licensing, and a5,55 $Increase in per capita spending in the park. The increase in admissions spend per capita was primarily due to higher realized ticket prices, a higher mix of single-day tickets and membership revenue beyond the initial 12-month commitment period, which was recognized equally each month and allocated to a smaller amount of attendance in 2022 versus 2021. Increased spend at the park reflects the company's pricing initiatives at the park and a strong assortment of retail products, food & beverage, rentals and new events.

The Company more than offset the decline in revenue in the fourth quarter of 2022 with lower operating expenses attributable to reductions in full-time positions, reduced employee hours worked and lower advertising expenses. These efficiencies were partially offset by higher wage rates and inflationary increases in repair and maintenance, utilities and other costs.

The company achieved an annual profit of13 million dollarsin the fourth quarter of 2022, compared to a net loss of2 million dollarsin the fourth quarter of 2021. Earnings per share was0,16 $compared to a loss per share of0,02 $in the fourth quarter of 2021, driven by lower cash operating expenses, partially offset by a decrease in revenue. Adjusted EBITDA was$99 million, an increase of4 million dollarscompared to the fourth quarter of 2021.

Total sales for the full year 2022 declined$139 millionor 9% compared to 2021, reflecting lower attendance partially offset by higher guest spend per capita. The lower number of visitors was due to an increase in ticket prices and the elimination of free tickets and heavily discounted pass products. Additionally, due to the implementation of a tax reporting calendar effective January 1, 2021, there were three fewer days in full-year 2022 than in full-year 2021, accounting for 89,000 additional guests in full-year 2021⁽³⁾.Finally, in Q4 2022, the Company closed six parks for Holiday in the Park that were open in Q4 2021, accounting for 279,000 additional guests for full year 2021.

The11,53 $Increase in guest spending per capita compared to full year 2021 consisted of a7,26 $Increase per capita spending on licensing, and a4,27 $Increase in per capita spending in the park. The increase in admissions spending per capita was primarily due to higher realized ticket prices and a higher mix of single-day tickets. Higher in-park spend reflects the company's in-park pricing initiatives and a strong assortment of retail products, food & beverage, rentals and new events.

The company partially offset the decline in full-year 2022 revenue from lower cash operating expenses. Operating cost reductions were driven by reductions in full-time staff, fewer total employee hours worked and lower advertising costs. These efficiencies were offset by higher wage rates and inflation-driven increases in repair and maintenance, utility, and other costs.

The company achieved an annual profit of$109 millionin full year 2022 compared to130 million dollarsin the same period last year. Earnings per share was1,29 $compared to earnings per share of1,50 $in full year 2021. Adjusted EBITDA was$465 million, a decrease of$33 millioncompared to full year 2021, driven by lower revenues partially offset by a reduction in expenses. In the second quarter of 2021, the company received11 million dollarsin connection with one of its terminated international development agreements inChina. Excluding the impact of this payment, Adjusted EBITDA decreased22 million dollarscompared to 2021 as a whole.

Balance Sheet and Capital Allocation

As of January 1, 2023, the company had reported total debt of$2,381 million, and cash or cash equivalents of80 million dollars. revenue accrual was$129 millionas of January 1, 2023, a decrease of$49 million, or 28%, as of January 2, 2022. The decrease was primarily due to lower volumes of season passes and memberships. The company made investments throughout 2022$112 millionin new capital, less insurance recoveries.

telephone conference

Today, March 2, 2023 at 7:00 a.m. Central Time, the Company will host a conference call to discuss its fourth quarter and full year 2022 financial results. The conference call can be accessed either through the Six Flags Investor Relations website athttps://investors.sixflags.com/news-and-events/events-and-presentationsor by calling 1-833-629-0614The United Statesor +1-412-317-9257 outsideThe United Statesand Applying for the Six Flags Earnings Call. A replay of the conference call will be available on the Company's Investor Relations websitehttps://investors.sixflags.com

About Six Flags Entertainment Corporation

Six Flags Entertainment Corporation is the world's largest regional theme park company with 27 parksThe United States,MexicoAndYou have. For 62 years, Six Flags has entertained hundreds of millions of guests with world-class roller coasters, themed rides, exciting water parks and unique attractions. Six Flags is committed to creating an inclusive environment that fully honors the diversity of our team members and guests. For more information visitwww.sixflags.com

Forward-Looking Statements

This press 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. Forward-looking statements include all statements that are not historical facts and are identified by words such as "anticipate," "intend," "plan," "seek," "believe," "estimate," "expect," "may," , "should", "could" and variations of such words or similar expressions. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include (i) the effect, impact, potential duration or other impact of the COVID-19 pandemic or virus variants and any expectations related thereto, including the continued effectiveness of the COVID-19 vaccines, (ii) the adequacy of our cash flows from the operations, available cash and amounts available under our credit facilities to meet our liquidity needs, including in the event of an extended closure of one or more of our parks, (iii) significantly improve our ability to execute our strategy, our financial performance and guest experience, (iv ) expectations regarding consumer demand for regional, outdoor and out-of-home entertainment, including for our parks, and (v) expectations regarding our annual income tax liability and the availability and impact of net operating loss carryforwards and other tax benefits.

Forward-looking statements are based on our current expectations and assumptions about our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature they involve uncertainties, risks and changes in circumstances that are difficult to predict. Additional risks and uncertainties that could cause actual results to differ materially from those described in such forward-looking statements include, but are not limited to, the following factors affecting participation, such as: B. local conditions, infectious diseases, including COVID-19 and monkeypox, or perceived threats from infectious diseases, events, civil unrest and terrorist activities; Regulations and guidance from federal, state, local and public health authorities related to responding to COVID-19 or other health emergencies such as monkeypox, including those related to business operations, safety protocols, and public gatherings (such as voluntary, and in some cases mandatory, quarantines and closures and other restrictions on travel and commercial, social and other activities); economic impact of political instability and conflicts worldwide, such as the war inUkraine; recall of groceries, toys and other retail products sold at our parks; accidents or incidents affecting the safety of guests and employees, or outbreaks of contagious diseases at our parks or other parks in the industry and negative publicity about us or our industry; availability of commercially reasonable insurance policies at reasonable prices; inability to achieve desired improvements and our financial performance goals; adverse weather conditions such as excessive heat or cold, rain and storm; general financial and credit market conditions, including our ability to access credit or raise capital; the increased cost of capital due to rising interest rates; macroeconomic conditions (including supply chain issues and the impact of inflation on customer spending); changes in audience and consumer tastes; construction delays in capital improvements or lost travel time; competition with other theme parks, water parks and entertainment alternatives; dependence on seasonal workers; trade union activities and labor disputes; laws and regulations affecting labor and benefit costs, including increases in state and federal minimum wages, health care reforms, and potential wage and hour demands; labor availability; environmental laws and regulations; laws and regulations affecting corporate taxation; pending, threatened or future legal proceedings and the substantial costs associated with litigation; cyber security risks; and other factors could cause actual results to differ materially from the company's expectations, including the risk factors or uncertainties detailed in the company's filings with the Securities and Exchange Commission (the "SEC") from time to time. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we make no representation that these expectations will be achieved and actual results could differ materially. Attention is drawn to a more complete discussion of forward-looking statements and applicable risks contained under the headings “Cautionary Statement 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 filings with the SEC, each of which is available free of charge on the Company's Investor Relations website at investors.sixflags.com and on the SEC's website atwww.sec.gov.

Definition and reconciliation of non-GAAP financial measures

We prepare our annual financial statements in accordance withUnited StatesGenerally Accepted Accounting Principles ("GAAP"). In our press release, we refer to non-GAAP financial measures, including modified EBITDA, adjusted EBITDA and adjusted EBITDA less capital expenditures. The definition for each of these non-GAAP financial measures is provided in the notes to the reconciliation tables below. We believe these non-GAAP financial measures provide investors with important and useful information to facilitate comparison of our operating performance on a consistent period to period basis and to make it easier to compare our results to those of other companies in our industry. We use these metrics for internal planning and forecasting purposes, to assess ongoing operations and our performance in general, and in our annual and long-term incentive plans. By providing these metrics, we offer our investors the opportunity to review our performance in the same way as our management.

However, because these non-GAAP financial measures are not determined in accordance with GAAP, they are subject to different calculations, and not all companies calculate these measures in the same way. As a result, these non-GAAP financial measures presented may not be directly comparable to a similarly titled non-GAAP financial measure reported by another company. These non-GAAP financial measures are presented as supplemental information and not as an alternative to GAAP financial measures. When reviewing any non-GAAP financial measure, we encourage our investors to fully review and consider the relevant reconciliation as described below.

The following tables present a reconciliation of net income (loss) to Adjusted EBITDA for the three months and twelve months ended January 1, 2023 and January 2, 2022:

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Stephen Purtel
Senior Vice President
Corporate Communications, Investor Relations and Treasurer
+1-972-595-5180
investoren@sftp.com

Quelle: Six Flags Entertainment Corporation