Six Flags Entertainment (FUN) Q3 2024 earnings summary

Executive summary

• The merger of Cedar Fair and Six Flags was completed July 1, 2024, creating the world's largest regional amusement park company with a resilient business model, expanded property portfolio, and recurring revenue streams.

• Q3 2024 marked the first post-merger consolidated results, with strong Halloween event demand and early season pass sales momentum driving robust performance despite weather disruptions from three hurricanes.

• Attendance was up slightly year-over-year excluding hurricane-impacted weeks, and October saw a 20% year-over-year attendance increase.

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

• Focus remains on profitable growth, operational efficiencies, and enhanced guest experience, supported by geographic diversification and experienced leadership.

Financial highlights

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

• Adjusted EBITDA for Q3 was $558 million, including $206 million from Legacy Six Flags, up $169.5 million year-over-year, 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, with declines split between merger impact and season pass pricing/mix.

• Operating costs and expenses totaled $894 million, with $368 million from Legacy Six Flags; $55–$75.5 million in merger/integration-related SG&A costs.

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 over the last five weeks, with total season pass units up 2% year-over-year.

• Targeting at least $800 million annual unlevered pre-tax free cash flow and 35%+ EBITDA margins by 2027, with attendance over 55 million and net total leverage below 3.5x EBITDA.

• CapEx expected at $500–525 million annually in 2025 and 2026, then 12–13% of net revenues long-term.

• Sufficient liquidity to meet obligations through Q4 2025.