SIX
SIX FLAGS ENTERTAINMENT Corp
65.5000
-1.31%
65.5000
-1.31%
51.2500 66.4700
52 weeks
52 weeks

Mkt Cap 5.94B

Shares Out 90.61M

new Chat
Send me real-time posts from this site at my email

Record Revenue in Second Quarter 2017 for Six Flags

GRAND PRAIRIE, Texas--(BUSINESS WIRE)--Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company, today announced that for the quarter ended June 30, 2017, revenue increased $15 million or 4 percent, as compared to the same period in 2016, to $422 million. This was primarily driven by a 5 percent increase in attendance to 9.5 million guests and an 18 percent increase in sponsorship and international licensing revenue, partially offset by a 2 percent decline in guest spending per capita. Adjusting for the approximately 380,000 guest visits that shifted from the first quarter to the second quarter due to the timing of Easter, second quarter 2017 attendance grew 1 percent. Rainy weather on the East Coast and in Texas negatively impacted attendance in the second quarter, particularly attendance associated with one-day ticket sales, with the resulting higher mix of season pass visitation dampening guest spending per capita.

“We are the leading regional theme park company in the world operating in a very attractive industry with significant opportunity for organic growth”

Tweet this

Net income decreased $9 million or 15 percent and diluted earnings per share decreased 8 percent to $0.59 for the quarter, primarily due to a $37 million charge related to the early retirement of debt in April 2017 when the company issued new senior notes and used the proceeds to redeem then-outstanding senior notes. Adjusted EBITDA1 in the second quarter increased $11 million or 7 percent to $166 million.

The softer-than-anticipated financial performance through the first six months of the year makes achieving the Project 600 goal more challenging and, in accordance with accounting standards, full achievement of the 2017 Performance Award is no longer deemed probable. Therefore, in the second quarter, the company reversed $28 million of stock-based compensation expense reflecting an expected partial achievement in 2017 of the Project 600 Performance Award. This reversal partially offset the loss on debt extinguishment described above.

“We are the leading regional theme park company in the world operating in a very attractive industry with significant opportunity for organic growth,” said Jim Reid-Anderson, Chairman, President and CEO. “We have the best team in the theme park space, and I am confident that 2017 will be another record year for our shareholders as we deliver higher ticket yields, improved in-park revenue, attractive international licensing deals, new waterparks, and strong execution.”

Total guest spending per capita for the second quarter was $41.67, which was a decrease of $0.87 or 2 percent compared to the second quarter of 2016, as ticket price gains were more than offset by a higher mix of season pass holder attendance. Admissions per capita decreased 2 percent to $23.36 and in-park spending per capita decreased 2 percent to $18.31.

For the first six months of 2017 revenue was $522 million, a slight decline versus the prior year period, driven primarily by a 2 percent decrease in guest spending per capita, partially offset by a 2 percent increase in attendance and a 7 percent increase in sponsorship and international licensing revenue. On a constant currency2 basis, revenue for the first six months of 2017 increased $2 million. The company had a net loss for the first six months of $6 million and loss per share of $0.06 as compared to earnings per share of $0.15 for the same period in 2016. Adjusted EBITDA of $131 million was down slightly versus prior year but flat on a constant currency basis.

Attendance for the first six months of 2017 grew 2 percent to 11.4 million guests while guest spending per capita decreased 2 percent to $42.10, with admissions per capita and in-park spending per capita both decreasing 2 percent to $24.03 and $18.07, respectively.

The company’s continued success in upselling guests to season passes and memberships resulted in a 12 percent year-over-year increase in its Active Pass Base, which represents the total number of guests who have a season pass or who are enrolled in the company’s membership program. Deferred revenue of $195 million increased by $21 million or 12 percent over June 30, 2016, primarily due to incremental sales of season passes, memberships and all-season dining passes.

In the first half of 2017, the company invested $97 million in new capital projects, paid $113 million in dividends, or $0.64 per common share per quarter, and repurchased $379 million of its common stock. The authorized share repurchase amount available as of June 30, 2017, was $463 million. Net Debt3 as of June 30, 2017, calculated as total reported debt of $2,048 million less cash and cash equivalents of million, was $1,980 million, representing a 3.9 times net leverage ratio.

Previous Announcements

On April 13, 2017, the company announced it had completed the private sale of $1.2 billion of senior notes and that it had used a portion of the proceeds to redeem all of its $800 million 5.25 percent senior notes due 2021 and to discharge the indenture governing those 2021 notes. The company used the balance of the proceeds, after paying refinancing fees, to repurchase approximately five million shares of its common stock.

On April 22, 2017, the company announced the opening of a new 60-acre water park in Oaxtepec, Mexico, located about 50 miles southwest of Six Flags Mexico.

On April 27, 2017, the company announced it had entered into an agreement with EPR Properties to operate Waterworld California, Northern California’s largest water park, located 18 miles southeast of Six Flags Discovery Kingdom.

On June 21, 2017, the company announced that its lenders approved a reduction to the borrowing rate on the company’s Term Loan B Credit Facility, which will save the company approximately $1.4 million annually in borrowing costs.

On July 18, 2017, the company announced the appointment of Jim Reid-Anderson, who has been serving as Executive Chairman of the company since February 2016 as Chairman, President and CEO.

Conference Call

At 8:00 a.m. Central Time today, July 26, 2017, the company will host a conference call to discuss its second quarter 2017 financial performance. The call is accessible through either the Six Flags Investor Relations website at investors.sixflags.com or by dialing 1-855-889-1976 in the United States or +1-937-641-0558 outside the United States and requesting the Six Flags earnings call. A replay of the call will be available by dialing 1-855-859-2056 or +1-404-537-3406 through August 3, 2017 and requesting conference ID 1772355.

About Six Flags Entertainment Corporation

Six Flags Entertainment Corporation is the world’s largest regional theme park company with $1.3 billion in revenue and 20 parks across the United States, Mexico and Canada. For 56 years, Six Flags has entertained millions of families with world-class coasters, themed rides, thrilling water parks and unique attractions. For more information, visit www.sixflags.com.

Forward-Looking Statements

The information contained in this release, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act...


More
Cancel