Core Viewpoint - Six Flags Entertainment Corporation (FUN) has experienced a significant stock rally of 25.8% over the past three months, outperforming both the Zacks Leisure and Recreation Services industry and the S&P 500 [1][2]. Group 1: Performance and Demand - The company's strong performance is attributed to high attendance across its parks, indicating a healthy consumer base and robust demand for its offerings [2]. - Season pass and membership sales have seen an 8% year-over-year increase, with pricing reflecting a 3% rise, ensuring a steady stream of recurring revenues [8]. - Attendance during the Halloween season increased by 20% year-over-year, showcasing the company's ability to capitalize on seasonal demand [9]. Group 2: Strategic Initiatives - FUN plans to invest $500 million to $525 million in annual capital expenditures for 2025 and 2026 to enhance park experiences and guest satisfaction [11]. - The merger with Cedar Fair has created the largest regional theme park operator in North America, with identified cost savings of $50 million for 2024 and a long-term target of $120 million by 2025 [12]. Group 3: Valuation and Market Position - FUN is currently trading at a forward 12-month price-to-sales (P/S) multiple of 1.43X, significantly below the industry average of 2.35X, presenting a compelling investment opportunity [13]. - Despite the stock trading 16.5% below its 52-week high of $58.70, the company is well-positioned for long-term growth [7][13]. Group 4: Challenges and Economic Sensitivity - The company has faced inflated costs, with operating costs and expenses increasing by 35.2% year-over-year in the first nine months of 2024 [15][16]. - Economic pressures and inflation may impact discretionary spending, which could affect revenue from park tickets and other offerings [17]. - Recent downward revisions in earnings estimates for 2025, from $2.96 to $2.78, indicate declining analyst confidence [18].

Financial Data and Key Metrics Changes - For Q3 2024, the company generated net revenues of $1.35 billion with attendance of 21 million visits, including $558 million from legacy Six Flags operations [12][24] - Adjusted EBITDA for the third quarter totaled $558 million, which included $206 million from legacy Six Flags operations [24] - Operating costs and expenses totaled $894 million, with $368 million from legacy Six Flags operations [18][21] Business Line Data and Key Metrics Changes - Legacy Cedar Fair revenues decreased by $52 million compared to the previous year, primarily due to 660,000 fewer visits [12] - In-park capital spending per capita was $61.27, a decrease of 2% compared to the previous year [16] - Out-of-park revenues totaled $102 million, with $21 million from legacy Six Flags operations [15] Market Data and Key Metrics Changes - Attendance across the combined portfolio was slightly up, excluding three weeks impacted by extreme weather events [14] - Over the past five weeks, attendance increased by 20%, with 6.5 million guests entertained [26] - Deferred revenues increased to $359 million from $208 million year-over-year, reflecting strong sales of advanced purchase products [29] Company Strategy and Development Direction - The company aims to achieve $120 million in merger-related cost synergies by the end of 2025, with $50 million expected by the end of 2024 [23][41] - A disciplined capital allocation strategy is in place, targeting $500 million to $525 million in capital expenditures annually for 2025 and 2026 [31][48] - The focus is on driving attendance growth, with a target of 55 million guests by 2027, which would imply an average growth rate of over 10% [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model and the health of the consumer, noting strong demand during favorable weather conditions [73] - The integration process post-merger is progressing smoothly, with early positive results from operational changes [40] - The company is focused on enhancing guest satisfaction, which is vital for sustainable long-term growth [39] Other Important Information - The company plans to host an Analyst Day in the first quarter of next year to provide more specifics around core strategies and growth outlook [56] - The balance sheet remains solid, with $90 million in cash and $4.8 billion in gross debt, of which 80% is fixed [28] Q&A Session All Questions and Answers Question: Can you help us think about the cadence of attendance growth towards the 55 million target by 2027? - Management acknowledged that growth is not linear and emphasized the importance of capital investments in driving attendance growth beyond historical rates [61][62] Question: How do you view the $800 million unlevered free cash flow target by 2027 in relation to adjusted EBITDA? - Management clarified that the primary focus is on driving revenue growth through attendance, which may not directly correlate with per capita spending [66] Question: What has been surprising regarding the level of investment needed for the Six Flags parks? - Management noted that the appeal of the product remains strong, and they are focused on reinvesting capital to drive growth across the combined portfolio [70][75] Question: Can you elaborate on the fourth quarter guidance and the rationale behind it? - Management provided guidance of $205 million to $215 million for fourth quarter adjusted EBITDA, citing strong October performance but cautioning about macro factors affecting November and December [97] Question: What are the expectations for cost savings and operational efficiencies moving forward? - Management indicated that they have already realized some cost savings and are focused on activating additional synergies as they move into the fourth quarter [100][102]

Core Viewpoint - Wall Street analysts anticipate a decline in Six Flags Entertainment Corporation's earnings per share (EPS) for the upcoming quarter, despite a significant increase in revenues compared to the previous year [1]. Earnings Estimates - Analysts expect Six Flags to report quarterly earnings of $2.96 per share, reflecting a year-over-year decline of 29.7% [1]. - The consensus EPS estimate has been revised downward by 18.5% in the past 30 days, indicating a reassessment of initial estimates by covering analysts [2]. Revenue Projections - Total revenues are projected to be $1.34 billion, representing a 59.5% increase from the same quarter last year [1]. - Specific revenue estimates include: - 'Net revenues- Admissions' expected to reach $673.11 million, a year-over-year increase of 61.1% [5]. - 'Net revenues- Accommodations, extra-charge products and other' estimated at $190.04 million, reflecting a 33.3% increase [5]. - 'Net revenues- Food, merchandise and games' projected at $490.33 million, indicating a 74.2% increase [6]. Attendance Expectations - Analysts forecast attendance to reach 20.91 million, significantly up from 12.43 million in the prior year [6]. Market Performance - Six Flags shares have increased by 6.9% over the past month, contrasting with a -0.5% change in the Zacks S&P 500 composite [6]. - The company currently holds a Zacks Rank 5 (Strong Sell), suggesting it may underperform the overall market in the near term [6].

Core Viewpoint - Six Flags Entertainment Corporation (FUN) has significantly underperformed in the market, losing 24.7% over the past three months, while the leisure and recreation services industry grew by 42% [1]. Financial Performance - The Zacks Consensus Estimate for Six Flags' 2024 earnings has decreased from $2.25 to $2.08 per share, indicating a 27% decline year-over-year [3]. - The third-quarter earnings estimate also fell from $3.22 to $3.07 per share, reflecting a 27.1% year-over-year decline [3]. Demand and Attendance Issues - The company is experiencing soft demand patterns due to a shift in consumer spending towards non-discretionary items and savings, influenced by macroeconomic trends [4][5]. - Attendance dropped by 2% in Q2 2024 compared to the previous year, attributed to fewer operating days and the earlier timing of the Easter holiday [6]. - For the five weeks ending August 4, 2024, attendance was 10.9 million, marking a 3% decline from the same period last year [6]. Cost and Expense Challenges - Six Flags has faced rising costs and expenses, with a notable $21.3 million attributed to merger-related costs from the merger with Cedar Fair, L.P. [7]. - In the first half of 2024, operating costs and expenses rose by 11.1% year-over-year, driven by a $40.9 million increase in selling, general and administrative (SG&A) expenses, a $13.3 million rise in operating expenses, and a $5.9 million increase in the cost of goods sold [8].

Core Insights - Carowinds is launching new fall events including Tricks and Treats and Oktoberfest, while SCarowinds will now be included with a single admission ticket for the first time since its inception in 2000 [1][2] Fall Events Overview - SCarowinds will run select nights from September 13 to October 27, featuring four scare zones, five mazes, and four shows, enhancing the Halloween experience with select rides open during the event [2] - Tricks and Treats will take place from September 14 to October 27, offering family-friendly activities such as pumpkin picking, themed games, and live entertainment on weekends [4] - Oktoberfest will be held on weekends from September 14 to November 2, showcasing authentic German food, beer, and live music, along with traditional games and contests [5][6] Ticketing and Passes - A 2025 Gold Season Pass is now available, providing unlimited access to Carowinds and Carolina Harbor Waterpark for the remainder of 2024 and all of 2025, including admission to seasonal events [7] Company Background - Carowinds is a 400-acre amusement park located on the North Carolina-South Carolina state line, featuring over 58 rides and attractions, including the world's tallest and fastest giga coaster, Fury 325 [8] - Six Flags Entertainment Corporation operates 27 amusement parks and is focused on providing immersive experiences to millions of guests annually [9]

Core Insights - Six Flags Entertainment plans to introduce seven new roller coasters across its parks in 2025, enhancing its attraction offerings [1][2] - The company will also launch an expanded all-park passport, allowing unlimited admission and parking at all 42 Six Flags locations [3] - Following the investment announcement, Six Flags' stock rose over 3% and is approximately 11% higher year-to-date [4] Group 1 - The new roller coaster, Wrath of Rakshasa, will feature a 171-foot drop, reach speeds of 67 miles per hour, and include five inversions [2] - Additional attractions will be introduced at various parks, including Camp Snoopy, Canada's Wonderland, and locations in Texas and California [2] Group 2 - CEO Richard Zimmerman emphasized the company's commitment to providing thrilling experiences and unforgettable memories for guests of all ages through its capital plans [3]

Six Flags Entertainment Corporation (FUN) reported $571.62 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 14.1%. EPS of $1.08 for the same period compares to $1.04 a year ago. The reported revenue represents a surprise of +8.76% over the Zacks Consensus Estimate of $525.57 million. With the consensus EPS estimate being $1.06, the EPS surprise was +1.89%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Six Flags Entertainment Corporation (NYSE:FUN) Q2 2024 Earnings Conference Call August 8, 2024 10:00 AM ET Company Participants Michael Russell - Corporate Director of Investor Relations Brian Witherow - Chief Financial Officer Richard Zimmerman - President and Chief Executive Officer Conference Call Participants Lizzie Dove - Goldman Sachs James Hardiman - Citi Steve Wieczynski - Stifel Thomas Yeh - Morgan Stanley Matthew Boss - JPMorgan Michael Swartz - Truist Securities Ben Chaiken - Mizuho Chris Woronka ...

Vaughan, ON, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Canada's Wonderland, an amusement park just north of Toronto, is inviting guests to face nature's wrath next year on AlpenFury, the longest, tallest and fastest launch coaster in Canada. When fire and ice come together inside the mysterious Wonder Mountain, the force will propel riders into a thrilling journey beginning with a launch that blasts the train out the summit, 164 feet into the sky. The coaster will span 3,281 feet across the park, reaching speeds of ...

Analysts on Wall Street project that Six Flags Entertainment Corporation (FUN) will announce quarterly earnings of $1.29 per share in its forthcoming report, representing an increase of 24% year over year. Revenues are projected to reach $971.15 million, increasing 93.9% from the same quarter last year. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 4.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial pr ...