Six Flags Entertainment (FUN) Q2 2024 earnings summary

Executive summary

• The merger of Cedar Fair and Six Flags was completed on July 1, 2024, creating a leading, diversified amusement park operator focused on capturing synergies, harmonizing best practices, and improving guest experience.

• Legacy Cedar Fair delivered record Q2 attendance and net revenues, while legacy Six Flags saw a slight revenue decline but a significant increase in net income.

• Integration efforts are underway, with early initiatives to drive operational consistency and attendance growth.

• Weather disruptions and macroeconomic events impacted July attendance, but underlying demand remains strong, supported by robust season pass sales and group bookings.

• Cedar Fair is the accounting acquirer; financials for the period reflect Cedar Fair only, with future reports to include the combined entity.

Financial highlights

• Cedar Fair Q2 2024 net revenues reached $572M, up 14% year-over-year, with record attendance of 8.6M (+17%); net income was $56M, up 4%; Adjusted EBITDA rose 36% to $205M.

• Six Flags Q2 revenues were $438M (down 1% YoY), attendance 6.9M (down 2%), net income $34M (up 66%), Adjusted EBITDA $138M (down 14%).

• In-park per capita spending for Cedar Fair decreased 3% to $59.54; Six Flags total guest spending per capita increased 1% to $61.22.

• Out-of-park revenues increased 17.2% in Q2, aided by sponsorships and hotel renovations.

• Combined July attendance was 10.9M, down 3% YoY, mainly due to weather and operational disruptions.

Outlook and guidance

• Full-year CapEx expected at $200M-$220M for each legacy company, with capital focused on new rides, attractions, and facility upgrades.

• Annualized cash interest payments projected at $300M-$310M, cash tax payments at $140M-$150M.

• Integration and synergy realization expected over the next 12-18 months, targeting $40M-$50M in operational synergies by end of 2024.

• Management expects strong full-year performance, citing solid attendance patterns and advance purchase channels.

• Combined company has sufficient liquidity to meet obligations through Q3 2025 after increasing revolving credit facility to $850M.