Six Flags Entertainment Corporation/NEW Q3 FY2024 earnings call

• Post-merger consolidated results reviewed, including operating days, revenue, and weather impact. - Progress on integration with $50M cost synergies expected by end of 2024 and $120M by end of 2025. - Strong demand for Halloween events, with 6.5 million guests over past 5 weeks, up 20% vs. last year. Season pass sales up 8% with average price up 3% over past 5 weeks. - Capital expenditure plans: $500M-$525M annually for next 2 years, focusing on attractions and infrastructure. - Long-term targets: aim for unlevered pretax free cash flow of $800M+ by 2027, with attendance growth and margin improvement.

On a consolidated basis, third quarter 2024 had 2,585 operating days vs. 1,091 last year. Net revenues were $1.35 billion with 21 million visits. Legacy Six Flags contributed $558 million net revenues and 9.2 million visits. Legacy Cedar Fair revenues decreased $52 million due to 660,000 fewer visits, including 460,000 from fiscal calendar shift and 200,000 from weather. Out-of-park revenues totaled $102 million, with legacy Six contributing $21 million and legacy Cedar Fair down $5 million. In-park per cap was $61.27, down 2%. Adjusted EBITDA was $558 million, with legacy Six contributing $206 million, offset by legacy Cedar Fair decreases from calendar shift and weather.

• Fourth quarter adjusted EBITDA guidance $205M-$215M, dependent on operating conditions and weather. - Target to achieve $120M cost synergies by end of 2025, with $50M by end of 2024. - Expect attendance growth in 2025 above historical 1%-2% rate, driven by capital program and season pass momentum.

• Weather impact on operating days and attendance. - Macro factors affecting consumer spending and park operations. - Integration challenges and execution risks related to cost synergies and capital investments.

Q: How to think about the cadence of attendance trends from 3Q to October and drivers?

A: Stripping out weather-impacted weeks, 3Q attendance was slightly up. October saw 20% growth due to strong Halloween demand and operational changes.

Q: Thoughts on linearity of 35% EBITDA margin target by 2027?

A: Margin isn't linear; driven by attendance, operating efficiency, and ongoing initiatives.

Q: Season pass momentum and mix shift?

A: Season pass sales up 8% with average price up 3%, mix evolving as programs harmonized.

Q: Operating days and attendance growth?

A: Legacy Six had 400 fewer operating days vs. 2019; adding back days responsibly to drive attendance growth.