Six Flags Entertainment (FUN) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked the first post-merger consolidated results for the world's largest regional amusement park company, with strong Halloween event demand and early season pass sales momentum driving robust performance despite weather disruptions from three hurricanes.

• The merger of Cedar Fair and Six Flags was completed on July 1, 2024, creating a leading operator with expanded property portfolio, geographic diversification, and experienced leadership.

• Integration is progressing smoothly, with new executive agreements, early cost synergies realized, and a focus on long-term value creation through guest experience improvements and disciplined capital allocation.

• Attendance in Q3, excluding hurricane-impacted weeks, was slightly up year-over-year, and October attendance surged 20% over the prior year.

• Focus remains on profitable growth, operational efficiencies, and recurring revenue streams through season pass programs and premium offerings.

Financial highlights

• Q3 2024 net revenues reached $1.35 billion, up 60.1% year-over-year, with 21 million visits; Legacy Six Flags contributed $558 million in revenue and 9.2 million in attendance.

• Adjusted EBITDA for Q3 was $558 million, including $206 million from Legacy Six Flags, with a 43.2% margin; net income attributable to the company was $111 million, down from $215 million in Q3 2023 due to merger-related costs and goodwill impairment.

• In-park per capita spending was $61.27, down 2% year-over-year, mainly due to merger impacts and season pass mix, partially offset by higher food, beverage, and premium product spending.

• Out-of-park revenues totaled $102 million, up $16 million year-over-year, with $21 million from Legacy Six Flags.

• $42.5 million goodwill impairment charge related to Schlitterbahn reporting unit in Q3 2024.

Outlook and guidance

• Q4 adjusted EBITDA is projected at $205–215 million, with October representing about 60% of Q4 attendance.

• Early 2025 season pass sales are up 8% in units and 3% in average price, with total units up 2% year-over-year.

• Annual CapEx is expected at $500–525 million for 2025 and 2026, focusing on new attractions and infrastructure.

• Long-term targets include annual unlevered pre-tax free cash flow of at least $800 million, attendance above 55 million, and Modified EBITDA margins above 35% by 2027.

• Goal to reduce Net Total Leverage to less than 3.5x Adjusted EBITDA by end of 2027.