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Six Flags sees growth in Q1


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Six Flags sees growth in Q1

 

 

(Theme Park News) Six Flags Entertainment Corporation (NYSE: SIX)announced double-digit growth in its first-quarter key

performance metrics with a 16 percent growth in revenue and a 13 percent improvement in Adjusted EBITDA.

 

In the quarter the company reported US$85 million of revenue, which represented an $11 million or 16 percent increase over the same quarter in 2014, and also generated a $5 million or 13 percent improvement in Adjusted EBITDA.

 

Since most of the parks are not open during the first quarter, Adjusted EBITDA was a loss of $38 million, which was the company’s best ever first-quarter performance. Modified EBITDA for the twelve months ending March 31, 2015 was $483 million, an increase of $44 million or 10 percent compared to the twelve months ending March 31, 2014, and Modified EBITDA margin improved to a new industry high of 40.7 percent.

 

“Our 2015 season is off to an excellent start with record-high guest satisfaction scores, record-high profitability, and double-digit improvements in all key performance metrics, including a 53 percent growth in our Active Pass Base compared to the prior year period,” said Jim Reid-Anderson, Chairman,

President and CEO. “We remain intently focused on building shareholder value by delivering an unprecedented sixth year in a row of record financial performance in 2015, and working toward achieving our long-term financial target of $600 million of Modified EBITDA by 2017.”

 

The strong revenue growth in the quarter was primarily driven by a 13 percent increase in attendance and a 3 percent increase in admissions per capita spending. Attendance in the first quarter grew to 1.6 million guests.

 

Total guest spending per capita for the first quarter was $43.82, which was essentially flat with the first quarter of 2014. Admissions per capita increased $0.83 or 3 percent to $25.84 and in-park spending per capita decreased $0.74 or 4 percent to $17.98. All of the revenue per capita comparisons to prior year were adversely impacted by foreign exchange translation and a higher mix of season pass and membership attendance, which puts downward pressure on revenue per capita. Six Flags Mexico represents a higher percentage of total company revenue in the first quarter and the Mexican Peso weakened versus the U.S. dollar by 13 percent from the first quarter of 2014. On a constant currency basis, in the first quarter admissions per capita increased $1.37 or 6 percent, and in-park spending per capita decreased $0.19 or 1 percent.

 

The loss per share for the first quarter was $0.75, compared to a loss per share of $0.64 in 2014, driven entirely by higher stock-based compensation expense. Loss before income taxes included $18 million in stock-based compensation charges in the first quarter of 2015 relating to both the actual achievement in 2014 and probable achievement in 2015 of certain targets of Project 500—a long-term incentive compensation program established by the company’s board in August 2011. Excluding the Project 500 stock-based compensation charge, the loss per share for the quarter ended March 31, 2015 was $0.62, an improvement of 3 percent compared to the quarter ended March 31, 2014.

 

Cash Earnings Per Share for the twelve months ending March 31, 2015 was $2.78, and represented an increase of $0.61 or 28 percent as compared to the same period in the prior year.

 

As a result of continued strong sales of season passes and memberships, the company’s Active Pass Base, which includes all members and season pass holders, increased 53 percent from March 31, 2014 to March 31, 2015.

 

In the first quarter of 2015, the company invested $34 million in new capital, paid $49 million in dividends, or $0.52 per common share, and repurchased $8 million of its common stock. Net Debt4 as of March 31, 2015 was $1,458 million, which translates to a 3.3 times net leverage ratio.

 

 

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Strong #'s, their formula is working. Mentioned on the confrence call was the fact that Six Flags does not see any more Solar Field's being made at other park's, even though a few park's have the land for them. My theory is that our Solar Array is part of the long term plan's for a Hotel on the property. Extending the Season with HITP is also a step toward's that. A Hotel with a large indoor Water Park is my bet what we will eventually have.

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^^I was about to mention that! I hold their stock in a virtual game for a school project, and I was pleasantly surprised when I saw their stock prices go up. I made a lot of fake money! Glad attendance is increasing though, it's good for the future and stuff

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Personally, I find their wording and some pfrases used to describe items as somewhat suspect. Admissions per capita? Isn't this just average price of admission? Also, if there were parks open this year (or others that were not open this year, but we're open last year), comparing an average this year to last year, tells you nothing. And while it says there was a 13% increase in attendance, it mentions nothing about the number of operating days this quarter versus same time last year. That is, you have no idea whether the increase is real or not. If there were more operating days this quartet, you'd expect attendance to be higher. If there were fewer, you'd expect lower attendance. Just seems they wanted to present an extremely (perhaps, exaggerated) positive performance picture but really gave some stats that can't be used to prove or disprove their position.

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