Six Flags Entertainment Corporation Reports 2024 Second Quarter Pre-Merger Results for Legacy Cedar Fair and Legacy Six Flags
- Merger integration proceeding well with early strategic initiatives already implemented to improve the guest experience and provide consistency across park operations
Legacy Cedar Fair Second Quarter Highlights (1)
- 53 net additional operating days compared to Q2-2023.
-
Net revenues totaled a record
$572 million , an increase of 14%, or$71 million . -
Including
$11 million of merger and integration-related costs, net income totaled$56 million , an increase of 4%, or$2 million , and net income margin, calculated as net income divided by net revenues, was 9.7%. -
Legacy Cedar Fair Adjusted EBITDA(2) totaled
$205 million , an increase of 36%, or$54 million , and Legacy Cedar Fair Adjusted EBITDA Margin(2) was 35.9%. - Attendance totaled a record 8.6 million guests, an increase of 17%, or 1.2 million guests.
-
In-park per capita spending(3) was
$59.54 , a decrease of 3%. -
Out-of-park revenues(3) totaled a record
$73 million , an increase of 17%, or$11 million .
Legacy Six Flags Second Quarter Highlights (a)
- 58 net fewer operating days compared to Q2-2023.
-
Total revenue was
$438 million , a decrease of 1%, or$5 million . -
Including
$1 million of merger-related costs, net income attributable to legacy Six Flags totaled$34 million , an increase of 66%, or$14 million , and net income margin, was 7.8%. -
Legacy Six Flags Adjusted EBITDA(b) totaled
$138 million , a decrease of 14%, or$23 million , and Legacy Six Flags Modified EBITDA Margin(b) was 36.9%. - Attendance totaled 6.9 million guests, a decrease of 2%, or 155,000 guests.
-
Total guest spending per capita(c) was
$61.22 , an increase of 1%. -
Admissions revenue per capita(c) was
$32.99 , a decrease of 2%. -
In-park spending per capita(c) was
$28.23 , an increase of 5%.
Management Commentary
“I am extremely pleased with the second quarter performance of the legacy
Zimmerman continued, “Since completing the merger on
Legacy Cedar Fair Results for Second Quarter 2024 to Second Quarter 2023
There were 789 operating days in the second quarter of 2024 compared with 736 operating days in the second quarter of 2023. The increase was primarily related to a fiscal calendar shift that resulted in 86 additional operating days, which was somewhat offset by fewer planned operating days during the quarter at some of the seasonal parks.
For the quarter ended
Operating costs and expenses in the second quarter of 2024 increased
Depreciation and amortization expense in the second quarter of 2024 totaled
After the items noted above, 2024 second quarter operating income for legacy
Interest expense for the quarter totaled
During the second quarter of 2024, legacy
After the items above, net income for legacy
For the 2024 second quarter, Legacy Cedar Fair Adjusted EBITDA(2), which management believes is a meaningful measure of legacy Cedar Fair’s park-level operating results, totaled
Legacy Cedar Fair Results for Second Quarter 2024 vs. Three Months Ended
As previously noted, the results for the second quarter of 2024 included additional operating days due to a fiscal calendar shift. On a same-week basis, or comparing the three months ended
Legacy Cedar Fair Balance Sheet and Liquidity Highlights
Deferred revenues on
As of
Legacy Six Flags Results for Second Quarter 2024 Compared to Second Quarter 2023
For the quarter ended
The decrease in second quarter attendance was primarily the result of fewer operating days during the period, as well as inclement weather in April and May, and the earlier timing of Easter in 2024 which shifted attendance into the first quarter this year. The increase in total guest spending per capita(c) was driven by a
Operating costs and expenses in the second quarter of 2024 totaled
Depreciation and amortization expense in the second quarter of 2024 totaled
After the items noted above, interest expense, loss on early debt extinguishment, income tax expense, and other charges, 2024 second quarter net income attributable to legacy Six Flags was
Legacy Six Flags Adjusted EBITDA(b) for the second quarter of 2024, which excludes merger-related transaction costs, was
Legacy Six Flags Balance Sheet and Liquidity Highlights
Deferred revenues on
July Update
Since the end of the second quarter, difficult weather conditions, including the impacts of Hurricane Beryl and record heat and rain across much of
“Although demand over the last few weeks has been affected by exogenous macro factors, we remain pleased with the broader attendance trends, largely supported by the robust season pass sales programs and strong group bookings,” said Zimmerman. “Based on the solid attendance patterns earlier in the year, as well as the strength of our advance purchase channels, we continue to believe the underlying demand for the entertainment value of our parks remains strong, which positions us well for the balance of 2024 and beyond,” concluded Zimmerman.
Conference Call
As previously announced, Six Flags Entertainment Corporation will host a conference call with analysts starting at
Investors and all other interested parties can access a live, listen-only audio webcast of the call on the
A digital recording of the conference call will be available for replay by phone starting at approximately
About Six Flags Entertainment Corporation
Six Flags Entertainment Corporation (NYSE: FUN) is North America’s largest regional amusement-resort operator with 27 amusement parks, 15 water parks and nine resort properties across 17 states in the
Qualified Notice
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0 percent) of
Forward-Looking Statements
Some of the statements contained in this news release (including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section) that are not historical in nature are forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements as to our expectations, beliefs, goals and strategies regarding the future. Words such as “anticipate,” “believe,” “create,” “expect,” “future,” “guidance,” “intend,” “plan,” “potential,” “seek,” “synergies,” “target,” “will,” “would,” similar expressions, and variations or negatives of these words identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These forward-looking statements may involve current plans, estimates, expectations and ambitions that are subject to risks, uncertainties and assumptions that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct, that our growth and operational strategies will achieve the target results. Important risk factors that may cause such a difference and could adversely affect attendance at our parks, our future financial performance, and/or our growth strategies, and could cause actual results to differ materially from our expectations or otherwise to fluctuate or decrease, include, but are not limited to: general economic, political and market conditions; the impacts of pandemics or other public health crises, including the effects of government responses on people and economies; adverse weather conditions; competition for consumer leisure time and spending; unanticipated construction delays; changes in our capital investment plans and projects; anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of the Combined Company’s operations; failure to realize the anticipated benefits of the merger, including difficulty in integrating the businesses of legacy Six Flags and legacy
Footnotes for Legacy Cedar Fair Results:
(1) |
The legacy |
|
(2) |
Legacy Cedar Fair Adjusted EBITDA and Legacy Cedar Fair Adjusted EBITDA Margin are not measurements computed in accordance with generally accepted accounting principles (GAAP). For additional information regarding Legacy Cedar Fair Adjusted EBITDA and Legacy Cedar Fair Adjusted EBITDA Margin, including how legacy |
|
(3) |
In-park per capita spending and out-of-park revenues are non-GAAP financial measures. See the attached reconciliation table and related footnote for the calculations of in-park per capita spending and out-of-park revenues for legacy |
|
(4) |
Legacy Cedar Fair Net Debt is a non-GAAP financial measure. See the attached reconciliation table and related footnote for the calculation of Legacy Cedar Fair Net Debt. This is a meaningful measure used by legacy |
Footnotes for Legacy Six Flags Results:
(a) |
The legacy Six Flags financial information was prepared using the accounting policies, classifications and key performance metrics for legacy Six Flags. Management is in the process of performing a comprehensive review of each entity’s accounting policies and classifications which will be aligned under the accounting policies of the accounting acquirer, legacy |
||
(b) |
Legacy Six Flags Adjusted EBITDA and Legacy Six Flags Modified EBITDA Margin are not measurements computed in accordance with generally accepted accounting principles (GAAP). For additional information regarding Legacy Six Flags Adjusted EBITDA and Legacy Six Flags Modified EBITDA Margin, including how legacy Six Flags defined and used these measures, see the attached reconciliation table and related footnotes. | ||
(c) |
Legacy Six Flags used certain per capita metrics to measure the performance of its business on a per guest basis and believed these were meaningful metrics as they assist in comparing legacy Six Flags operating performance on a consistent basis, make it easier to compare legacy Six Flags results with those of other companies in the industry, and allows investors to review performance in the same manner as legacy Six Flags management. These per capita metrics differ from the similarly titled measures presented by legacy |
||
- |
Total guest spending per capita is the total revenue generated from 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 guests, on a per guest basis, to enter the legacy Six Flags 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 guests, on a per guest basis, on items sold within legacy Six Flags parks, such as food and beverages, games and merchandise. In-park spending per capita is calculated by dividing park food, merchandise and other revenue by total attendance. |
||
(d) |
Self-insurance reserves are periodically reviewed for changes in facts and circumstances and adjustments are made as necessary. During the second quarter of 2023, legacy Six Flags revised the estimate of its ultimate loss indications for both identified claims and incurred but not reported (“IBNR”) claims in connection with its general liability and worker’s compensation self-insurance reserves. The increase in the 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 legacy Six Flags’ condensed consolidated statements of operation of |
This news release and prior releases are available under the News tab at https://investors.sixflags.com
- more -
(financial tables follow)
LEGACY (FORMER) |
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|
|||||||||||||||
LEGACY (FORMER) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) |
|||||||||||||||
|
Three months ended |
|
Six months ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net revenues: |
|
|
|
|
|
|
|
||||||||
Admissions |
$ |
267,115 |
|
|
$ |
242,549 |
|
|
$ |
312,556 |
|
|
$ |
282,078 |
|
Food, merchandise and games |
|
210,024 |
|
|
|
179,664 |
|
|
|
248,882 |
|
|
|
211,728 |
|
Accommodations, extra-charge products and other |
|
94,477 |
|
|
|
78,769 |
|
|
|
111,793 |
|
|
|
91,730 |
|
|
|
571,616 |
|
|
|
500,982 |
|
|
|
673,231 |
|
|
|
585,536 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of food, merchandise, and games revenues |
|
53,258 |
|
|
|
48,632 |
|
|
|
64,869 |
|
|
|
59,013 |
|
Operating expenses |
|
241,065 |
|
|
|
236,410 |
|
|
|
383,003 |
|
|
|
369,750 |
|
Selling, general and administrative |
|
92,958 |
|
|
|
67,048 |
|
|
|
154,382 |
|
|
|
113,513 |
|
Depreciation and amortization |
|
57,015 |
|
|
|
48,094 |
|
|
|
67,327 |
|
|
|
61,775 |
|
Loss on impairment / retirement of fixed assets, net |
|
4,121 |
|
|
|
7,125 |
|
|
|
6,735 |
|
|
|
10,761 |
|
|
|
448,417 |
|
|
|
407,309 |
|
|
|
676,316 |
|
|
|
614,812 |
|
Operating income (loss) |
|
123,199 |
|
|
|
93,673 |
|
|
|
(3,085 |
) |
|
|
(29,276 |
) |
Interest expense |
|
40,040 |
|
|
|
37,366 |
|
|
|
74,736 |
|
|
|
69,495 |
|
Loss on early debt extinguishment |
|
5,911 |
|
|
|
— |
|
|
|
5,911 |
|
|
|
— |
|
Loss (gain) on foreign currency |
|
1,805 |
|
|
|
(10,683 |
) |
|
|
7,045 |
|
|
|
(6,684 |
) |
Other income |
|
(320 |
) |
|
|
(237 |
) |
|
|
(657 |
) |
|
|
(678 |
) |
Income (loss) before taxes |
|
75,763 |
|
|
|
67,227 |
|
|
|
(90,120 |
) |
|
|
(91,409 |
) |
Provision (benefit) for taxes |
|
20,210 |
|
|
|
13,663 |
|
|
|
(12,206 |
) |
|
|
(10,427 |
) |
Net income (loss) |
|
55,553 |
|
|
|
53,564 |
|
|
|
(77,914 |
) |
|
|
(80,982 |
) |
Net income (loss) allocated to general partner |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Net income (loss) allocated to limited partners |
$ |
55,553 |
|
|
$ |
53,564 |
|
|
$ |
(77,913 |
) |
|
$ |
(80,981 |
) |
Net income (loss) margin(1) |
|
9.7 |
% |
|
|
10.7 |
% |
|
|
(11.6 |
)% |
|
|
(13.8 |
)% |
(1) |
Net income (loss) margin is calculated as net income (loss) divided by net revenues. |
LEGACY (FORMER) UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET DATA (In thousands) |
|||||||
|
|||||||
|
|
|
|
||||
Cash and cash equivalents |
$ |
52,858 |
|
|
$ |
49,179 |
|
Total assets |
$ |
2,347,830 |
|
|
$ |
2,316,418 |
|
Long-term debt, including current maturities: |
|||||||
Revolving credit loans |
$ |
88,000 |
|
|
$ |
157,000 |
|
Term debt |
|
982,819 |
|
|
|
— |
|
Notes |
|
1,287,971 |
|
|
|
2,270,586 |
|
|
$ |
2,358,790 |
|
|
$ |
2,427,586 |
|
Total partners' deficit |
$ |
(682,078 |
) |
|
$ |
(762,658 |
) |
LEGACY (FORMER) RECONCILIATION OF ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (In thousands) |
|||||||||||||||
|
|||||||||||||||
|
Three months ended |
|
Six months ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
55,553 |
|
|
$ |
53,564 |
|
|
$ |
(77,914 |
) |
|
$ |
(80,982 |
) |
Interest expense |
|
40,040 |
|
|
|
37,366 |
|
|
|
74,736 |
|
|
|
69,495 |
|
Interest income |
|
(215 |
) |
|
|
(178 |
) |
|
|
(575 |
) |
|
|
(692 |
) |
Provision (benefit) for taxes |
|
20,210 |
|
|
|
13,663 |
|
|
|
(12,206 |
) |
|
|
(10,427 |
) |
Depreciation and amortization |
|
57,015 |
|
|
|
48,094 |
|
|
|
67,327 |
|
|
|
61,775 |
|
EBITDA |
|
172,603 |
|
|
|
152,509 |
|
|
|
51,368 |
|
|
|
39,169 |
|
Loss on early debt extinguishment |
|
5,911 |
|
|
|
— |
|
|
|
5,911 |
|
|
|
— |
|
Non-cash foreign currency loss (gain) |
|
1,763 |
|
|
|
(10,837 |
) |
|
|
7,002 |
|
|
|
(7,134 |
) |
Non-cash equity compensation expense |
|
9,135 |
|
|
|
2,567 |
|
|
|
14,419 |
|
|
|
7,620 |
|
Loss on impairment / retirement of fixed assets, net |
|
4,121 |
|
|
|
7,125 |
|
|
|
6,735 |
|
|
|
10,761 |
|
Costs related to the Mergers (1) |
|
11,128 |
|
|
|
— |
|
|
|
21,275 |
|
|
|
— |
|
Other (2) |
|
803 |
|
|
|
15 |
|
|
|
1,574 |
|
|
|
(101 |
) |
Legacy Cedar Fair Adjusted EBITDA (3) |
$ |
205,464 |
|
|
$ |
151,379 |
|
|
|
108,284 |
|
|
|
50,315 |
|
Legacy Cedar Fair Adjusted EBITDA Margin (4) |
|
35.9 |
% |
|
|
30.2 |
% |
|
|
16.1 |
% |
|
|
8.6 |
% |
(1) |
|
Consists of third-party legal and consulting transaction costs, as well as integration costs related to the Mergers. Integration costs incurred included third-party consulting costs, travel costs and contract termination costs. These costs are added back to net income (loss) to calculate Legacy Cedar Fair Adjusted EBITDA as defined in legacy |
(2) |
|
Consists of certain costs as defined in legacy |
(3) |
|
Legacy Cedar Fair Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization, other non-cash items, and adjustments as defined in legacy |
(4) |
|
Legacy Cedar Fair Adjusted EBITDA Margin (Legacy Cedar Fair Adjusted EBITDA divided by net revenues) is not a measurement computed in accordance with GAAP and may not be comparable to similarly titled measures of other companies, including Legacy Six Flags Modified EBITDA Margin. Legacy Cedar Fair Adjusted EBITDA Margin is provided because the measure provides a meaningful metric of operating profitability.
|
LEGACY (FORMER) CALCULATION OF NET DEBT (In thousands) |
|||
|
|||
|
|
||
Long-term debt, including current maturities |
$ |
2,358,790 |
|
Plus: Debt issuance costs and original issue discount |
|
29,210 |
|
Less: Cash and cash equivalents |
|
(52,858 |
) |
Legacy Cedar Fair Net Debt (1) |
$ |
2,335,142 |
(1) |
|
Legacy Cedar Fair Net Debt is a non-GAAP financial measure used by investors to monitor leverage. The measure may not be comparable to similarly titled measures of other companies. |
LEGACY (FORMER) KEY OPERATIONAL MEASURES (In thousands, except per capita and operating day amounts) |
|||||||||||
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|||||||||||
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Three months ended |
|
Six months ended |
||||||||
|
|
|
|
|
|
|
|
||||
Attendance |
|
8,635 |
|
|
7,397 |
|
|
9,984 |
|
|
8,456 |
In-park per capita spending (1) |
$ |
59.54 |
|
$ |
61.46 |
|
$ |
59.67 |
|
$ |
61.84 |
Out-of-park revenues (1) |
$ |
73,228 |
|
$ |
62,483 |
|
$ |
96,493 |
|
$ |
81,708 |
Operating days |
|
789 |
|
|
736 |
|
|
906 |
|
|
897 |
(1) |
|
In-park per capita spending is calculated as revenues generated within legacy |
|
Three months ended |
|
Six months ended |
||||||||||||
(In thousands) |
|
|
|
|
|
|
|
||||||||
In-park revenues |
$ |
514,110 |
|
|
$ |
454,551 |
|
|
$ |
595,756 |
|
|
$ |
522,854 |
|
Out-of-park revenues |
|
73,228 |
|
|
|
62,483 |
|
|
|
96,493 |
|
|
|
81,708 |
|
Concessionaire remittance |
|
(15,722 |
) |
|
|
(16,052 |
) |
|
|
(19,018 |
) |
|
|
(19,026 |
) |
Net revenues |
$ |
571,616 |
|
|
$ |
500,982 |
|
|
$ |
673,231 |
|
|
$ |
585,536 |
|
On a same-week basis, concessionaire remittance totaled |
LEGACY (FORMER) SIX FLAGS ENTERTAINMENT CORPORATION FINANCIAL RESULTS |
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LEGACY (FORMER) SIX FLAGS ENTERTAINMENT CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Park admissions |
$ |
228,230 |
|
|
$ |
238,963 |
|
|
$ |
299,031 |
|
|
$ |
315,266 |
|
Park food, merchandise and other |
|
195,280 |
|
|
|
190,792 |
|
|
|
249,677 |
|
|
|
243,578 |
|
Sponsorship, international agreements and accommodations |
|
14,983 |
|
|
|
13,952 |
|
|
|
23,076 |
|
|
|
27,053 |
|
Total revenues |
|
438,493 |
|
|
|
443,707 |
|
|
|
571,784 |
|
|
|
585,897 |
|
Operating expenses (excluding depreciation and amortization shown separately below) |
|
185,830 |
|
|
|
173,669 |
|
|
|
299,785 |
|
|
|
282,539 |
|
Selling, general and administrative expenses (excluding depreciation and amortization shown separately below) (1) |
|
60,388 |
|
|
|
90,448 |
|
|
|
102,905 |
|
|
|
134,695 |
|
Costs of products sold |
|
34,509 |
|
|
|
34,787 |
|
|
|
45,632 |
|
|
|
44,552 |
|
Depreciation and amortization |
|
28,621 |
|
|
|
28,910 |
|
|
|
58,121 |
|
|
|
58,024 |
|
Loss on disposal of assets |
|
6,446 |
|
|
|
2,550 |
|
|
|
7,840 |
|
|
|
4,985 |
|
Operating income |
|
122,699 |
|
|
|
113,343 |
|
|
|
57,501 |
|
|
|
61,102 |
|
Interest expense, net |
|
40,793 |
|
|
|
43,495 |
|
|
|
82,593 |
|
|
|
79,797 |
|
Loss on debt extinguishment |
|
2,736 |
|
|
|
13,982 |
|
|
|
2,736 |
|
|
|
13,982 |
|
Other expense (income), net |
|
5,714 |
|
|
|
(2,261 |
) |
|
|
4,674 |
|
|
|
(3,093 |
) |
Income (loss) before income taxes |
|
73,456 |
|
|
|
58,127 |
|
|
|
(32,502 |
) |
|
|
(29,584 |
) |
Income tax expense (benefit) |
|
14,830 |
|
|
|
13,807 |
|
|
|
(8,402 |
) |
|
|
(4,045 |
) |
Net income (loss) |
$ |
58,626 |
|
|
$ |
44,320 |
|
|
$ |
(24,100 |
) |
|
$ |
(25,539 |
) |
Less: Net income attributable to noncontrolling interests |
|
(24,499 |
) |
|
|
(23,766 |
) |
|
|
(24,499 |
) |
|
|
(23,766 |
) |
Net income (loss) attributable to |
$ |
34,127 |
|
|
$ |
20,554 |
|
|
$ |
(48,599 |
) |
|
$ |
(49,305 |
) |
Net income (loss) margin (2) |
|
7.8 |
% |
|
|
4.6 |
% |
|
|
(8.5 |
)% |
|
|
(8.4 |
)% |
(1) |
|
Includes stock-based compensation of |
(2) |
|
Net income (loss) margin is calculated as net income (loss) attributable to |
LEGACY (FORMER) SIX FLAGS ENTERTAINMENT CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET DATA (In thousands) |
|||||||
|
|||||||
|
|
|
|
||||
Cash and cash equivalents |
$ |
441,241 |
|
|
$ |
51,580 |
|
Total assets |
$ |
3,166,832 |
|
|
$ |
2,713,593 |
|
Long-term debt, including current maturities |
|
|
|
||||
Short-term borrowings |
$ |
205,000 |
|
|
$ |
169,000 |
|
Current portion of long-term debt |
|
56,867 |
|
|
|
— |
|
Long-term debt |
|
2,489,596 |
|
|
|
2,183,325 |
|
|
$ |
2,751,463 |
|
|
$ |
2,352,325 |
|
Total stockholders' deficit |
$ |
(1,077,326 |
) |
|
$ |
(995,466 |
) |
LEGACY (FORMER) SIX FLAGS ENTERTAINMENT CORPORATION RECONCILIATION OF ADJUSTED EBITDA AND MODIFIED EBITDA MARGIN (In thousands) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
58,626 |
|
|
$ |
44,320 |
|
|
$ |
(24,100 |
) |
|
$ |
(25,539 |
) |
Income tax expense (benefit) |
|
14,830 |
|
|
|
13,807 |
|
|
|
(8,402 |
) |
|
|
(4,045 |
) |
Other expense (income), net |
|
5,714 |
|
|
|
(2,261 |
) |
|
|
4,674 |
|
|
|
(3,093 |
) |
Loss on debt extinguishment |
|
2,736 |
|
|
|
13,982 |
|
|
|
2,736 |
|
|
|
13,982 |
|
Interest expense, net |
|
40,793 |
|
|
|
43,495 |
|
|
|
82,593 |
|
|
|
79,797 |
|
Loss on disposal of assets |
|
6,446 |
|
|
|
2,550 |
|
|
|
7,840 |
|
|
|
4,985 |
|
Depreciation and amortization |
|
28,621 |
|
|
|
28,910 |
|
|
|
58,121 |
|
|
|
58,024 |
|
Stock-based compensation |
|
2,762 |
|
|
|
2,179 |
|
|
|
5,109 |
|
|
|
5,493 |
|
Merger-related transaction costs |
|
1,486 |
|
|
|
— |
|
|
|
7,047 |
|
|
|
— |
|
Self-insurance reserve adjustment (1) |
|
— |
|
|
|
37,558 |
|
|
|
— |
|
|
|
37,558 |
|
Modified EBITDA (2) |
$ |
162,014 |
|
|
$ |
184,540 |
|
|
$ |
135,618 |
|
|
$ |
167,162 |
|
Third party interest in EBITDA of certain operations (3) |
|
(24,499 |
) |
|
|
(23,766 |
) |
|
|
(24,499 |
) |
|
|
(23,766 |
) |
Legacy Six Flags Adjusted EBITDA (2) |
$ |
137,515 |
|
|
$ |
160,774 |
|
|
$ |
111,119 |
|
|
$ |
143,396 |
|
Legacy Six Flags Modified EBITDA Margin (4) |
|
36.9 |
% |
|
|
41.6 |
% |
|
|
23.7 |
% |
|
|
28.5 |
% |
(1) |
|
Amount relates to an adjustment to the self-insurance reserves resulting from a change in accounting estimate that increased the ultimate loss indications on both identified claims and incurred but not reported claims. This adjustment was excluded from reported Adjusted EBITDA because (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 historical results; and (iii) excluding it provides more meaningful comparisons to other companies in the industry. |
(2) |
|
Modified EBITDA, a non-GAAP measure, is defined as 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. Legacy Six Flags management used non-GAAP measures for budgeting purposes, measuring actual results, allocating resources and in determining employee incentive compensation. Modified EBITDA provides relevant and useful information for investors because it assists in comparing operating performance on a consistent basis, makes it easier to compare results with those of other companies in the industry as it most closely ties performance to that of competitors from a park-level perspective and allows investors to review performance in the same manner as legacy Six Flags management.
Legacy Six Flags 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
|
(3) |
|
Represents interests of non-controlling interests in the Adjusted EBITDA of |
(4) |
|
Legacy Six Flags Modified EBITDA Margin (Modified EBITDA divided by total revenues) is not a measurement computed in accordance with GAAP and may not be comparable to similarly titled measures of other companies, including Legacy Cedar Fair Adjusted EBITDA Margin. Legacy Six Flags Modified EBITDA Margin is provided because the measure provides a meaningful metric of operating profitability. |
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Source: Six Flags Entertainment Corporation