Six Flags Entertainment Corp (SIX) 10-Q Quarterly Report October 2018

Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company and the largest operator of waterparks in North America, today announced that revenue for the third quarter of 2018 increased $39 million or 7 percent from the third quarter of 2017 to $620 million. The revenue growth was primarily driven by a 5 percent increase in attendance to 13.6 million guests, and a 42 percent increase in sponsorship, international agreement and accommodations revenue.

Net income¹ for the quarter increased $3 million or 2 percent compared to the prior year period, and diluted earnings per share increased 2 percent to $2.16, primarily due to the growth in the business and the positive impact of tax reform, partially offset by an increase in stock-based compensation related to accounting for the company’s Project 600 award. Adjusted EBITDA² in the third quarter of 2018 increased $6 million or 2 percent to $307 million compared to the prior-year period. Cash operating costs, including associated lease expense, increased 14 percent in the quarter primarily due to our five newly acquired parks, which have significantly lower margins than our existing parks. Foreign currency translation³ had a negative impact on Adjusted EBITDA in the third quarter of $1 million.

“We were pleased to achieve record revenue and Adjusted EBITDA for the first nine months of 2018, and we are on track for our ninth record year in a row,” said Jim Reid-Anderson, Chairman, President and CEO. “Our five key growth initiatives provide a strong platform for growth for many years to come: we are increasing ticket yields; enhancing recurring revenue through our new membership and loyalty programs and expanding our operating calendar; growing in park revenue, especially culinary sales; expanding our domestic footprint via targeted acquisitions; and pursuing additional Six Flags-branded international parks.”

Total guest spending per capita for the third quarter of 2018 was $43.02, which was an improvement of $0.08 compared to the third quarter of 2017. Ticket price gains and sales of premium membership tiers were partially offset by lower per capita spending in our five newly acquired parks and the deferral of a portion of new membership revenue into 2019. Admissions per capita increased 1 percent to $25.86 and in-park spending per capita decreased 1 percent to $17.16.

For the first nine months of 2018, revenue was $1.2 billion, an 8 percent improvement compared to the prior-year period, driven primarily by 6 percent growth in attendance and a 23 percent increase in sponsorship, international agreement and accommodations revenue. Net income grew $21 million or 12 percent and diluted earnings per share increased 17 percent to $2.30 driven by the growth in the business and the positive impact of tax reform, partially offset by an increase in stock-based compensation related to the accounting for the company’s Project 600 award. Adjusted EBITDA increased $26 million or 6% to $458 million.

Attendance at the company’s parks for the first nine months of 2018 grew to 25.7 million guests, an increase of 6 percent as compared to the first nine months of 2017. The increase in attendance was primarily driven by the five newly acquired parks, the two new waterparks in Mexico and California, and the benefit of 365-day operations at Six Flags Magic Mountain. Guest spending per capita increased 1 percent to $43.15 for the first nine months of 2018, with admissions per capita increasing 3 percent to $25.59 and in-park spending per capita decreasing 1 percent to $17.56.

The Active Pass Base, which represents the total number of guests who are enrolled in the company’s membership program or have a season pass, increased 9 percent year-over-year as a result of the company’s continued success in upselling guests from single day tickets to memberships and season passes. The mix of memberships in the Active Pass Base significantly increased as a result of the company’s roll-out of a new, premium-tiered membership program. Members are the company’s most loyal and valuable guests, with higher retention rates and higher revenue—especially from the premium membership tiers — compared to traditional season passes. Deferred revenue of $193 million, a record high for the third quarter, increased by $14 million or 8 percent over September 30, 2017, primarily due to incremental sales of memberships, season passes, and all-season dining passes.

The following information was filed by Six Flags Entertainment Corp (SIX) on Wednesday, October 24, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

Please wait while we load the requested 10-Q report or click the link below:

https://last10k.com/sec-filings/report/701374/000070137418000245/form10-q_093018.htm

View differences made from one quarter to another to evaluate Six Flags Entertainment Corp's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) — *Sample 10-K Year-over-Year (YoY) Comparison*

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were ~~removed~~ , added and changed by Six Flags Entertainment Corp.

Continue

Assess how Six Flags Entertainment Corp's management team is paid from their Annual Proxy

Six Flags Entertainment Corp's Definitive Proxy Statement (Form DEF 14A) filed after their 2018 10-K Annual Report includes:

Voting Procedures
Board Members
Executive Team
Salaries, Bonuses, Perks
Peers / Competitors

Continue

Rating
Learn More

Filter Sentiment:

All

Positive

Negative

Filter Category:

All

Revenue

Financial

Other

Filter Subcategory:

All

Product

Dividend

Income

Expense

Cash Flow

Other

Inside Six Flags Entertainment Corp's 10-Q Quarterly Report:

Revenue - Product Highlight
Our liquidity could also be adversely affected by a disruption in the availability of credit as well as unfavorable weather natural disasters contagious diseases, such as Ebola, Zika, or swine or avian flu accidents or the occurrence of an event or condition at our parks, including terrorist acts or threats inside or outside of our parks negative publicity or significant local competitive events, which could significantly reduce paid attendance and revenue related to that attendance at any of our parks.

Financial - Dividend Highlight
In February 2018, Holdings Board of Directors increased the quarterly cash dividend from $0.70 per share of common stock to $0.78 per share of common stock.
Financial - Income Highlight
This reduction was offset by higher income before income taxes in the nine months ended September 30, 2018 due to a $36.9 million charge related to the early retirement of debt in April 2017 and the reversal of non-cash compensation expense in the prior year.
Revenue - Product Highlight
The increase in admissions revenue per capita was primarily driven by continued pricing improvements related to all tickets, coupled with an increase in our premium membership sales, partially offset by the lower admissions revenue per capita at our five new parks and a higher mix of season pass holder and member attendance.
Revenue - Product Highlight
A portion of the net proceeds from the issuance of these notes was used to redeem all of the outstanding 2021 Notes and to satisfy and discharge the indenture governing the 2021 Notes, including to pay accrued and unpaid interest to the redemption date and the related redemption premium on the 2021 Notes, and to pay related fees and expenses.
Other - Other
The proceeds of the additional...Read more
Financial - Expense
Interest expense, net increased $1.3...Read more
Revenue - Product
This increase was primarily driven...Read more
Revenue - Product
Our revenue is primarily derived...Read more
Financial - Expense
Operating expenses for the nine...Read more
Financial - Shares
The proceeds of the additional...Read more
Financial - Income
Income tax expense decreased $37.6...Read more
Financial - Cash Flow
Based on historical and anticipated...Read more
Other - Other
A portion of the net...Read more
Financial - Expense
Our advertising expenses also increased...Read more
Financial - Income
Income tax expense decreased $43.4...Read more
Financial - Expense
Interest expense, net increased $6.5...Read more
Financial - Expense
Excluding the cost to execute...Read more
Financial - Expense
Operating expenses for the three...Read more
Other - Other
As future events and their...Read more
Revenue - Product
Revenue for the three months...Read more
Revenue - Product
Revenue for the nine months...Read more
Financial - Dividend
Based on i the dividends...Read more
Other - Other
Holdings fully utilized the availability...Read more
Revenue - Product
Total revenue per capita representing...Read more
Financial - Shares
As of October 19, 2018,...Read more
Other - Other
Under the Amended and Restated...Read more
Other - Other
We used $150.0 million of...Read more
Revenue - Product
Admissions revenue per capita for...Read more
Revenue - Product
Admissions revenue per capita increased...Read more
Financial - Expense
Our principal costs of operations...Read more
Financial - Dividend
Net cash used in financing...Read more
Financial - Expense
Depreciation and amortization expense for...Read more
Financial - Expense
Depreciation and amortization expense for...Read more
Revenue - Product
The revenue growth was attributable...Read more
Financial - Expense
The increase in depreciation and...Read more
Financial - Expense
This increase was coupled with...Read more
Financial - Expense
Cost of products sold as...Read more
Other - Other
If such an adverse event...Read more
Financial - Expense
Selling, general and administrative expenses...Read more
Financial - Expense
Selling, general and administrative expenses...Read more
Financial - Expense
A large portion of our...Read more
Other - Other
Our ability to borrow under...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Six Flags Entertainment Corp provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Section 302 Ceo Certification

Exhibit 31.2: Section 302 Cfo Certification

Exhibit 32.1: Section 906 Ceo Certification

Exhibit 32.2: Section 906 Cfo Certification

Ticker: SIX
CIK: 701374
Form Type: 10-Q Quarterly Report
Accession Number: 0000701374-18-000245
Submitted to the SEC: Wed Oct 24 2018 4:48:22 PM EST
Accepted by the SEC: Wed Oct 24 2018
Period: Sunday, September 30, 2018
Industry: Miscellaneous Amusement And Recreation