Six Flags(SIX) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended March 31, 2024, was $133.3 million, a decrease of $8.9 million, or 6%, compared to $142.2 million for the same period in 2023[143] - The net loss attributable to Six Flags Entertainment Corporation for the three months ended March 31, 2024, was $82.7 million, compared to a net loss of $69.9 million in the prior year, an increase of $12.9 million, or 18%[142] - Modified EBITDA for the three months ended March 31, 2024, was a loss of $26.4 million, compared to a loss of $17.4 million for the same period in 2023[156] Attendance and Guest Spending - Attendance increased by 6% to 1,684,000 guests compared to 1,596,000 guests in the prior year[142] - Total guest spending per capita decreased by $6.53, or 8%, to $74.35, driven by a 12% decrease in admissions revenue per capita[144] Expenses - Operating expenses increased by $5.1 million, or 5%, primarily due to higher labor costs and inflation impacts[145] - Selling, general and administrative expenses decreased by $1.7 million, or 4%, due to lower personnel costs, partially offset by $5.6 million in merger-related transaction costs[146] - Cost of products sold increased by $1.4 million, or 14%, due to higher unit sales from increased attendance[147] - Depreciation and amortization expense increased by $0.4 million, or 1%, primarily due to increased capital expenditures[148] - Interest expense, net for the three months ended March 31, 2024, increased by $5.5 million, or 15%, compared to the same period in 2023, primarily due to higher costs of floating rate debt and increased borrowings[150] Cash Flow and Indebtedness - Net cash used in operating activities for the three months ended March 31, 2024, was $30.5 million, a decrease from $56.3 million in the prior year, driven by changes in accrued interest and increased deferred revenue[166] - Net cash used in investing activities increased to $37.0 million for the three months ended March 31, 2024, compared to $25.0 million in the same period in 2023, primarily due to planned capital spending for new rides and attractions[166] - As of March 31, 2024, total indebtedness was $2,430.9 million, with anticipated annual cash interest payments of approximately $165 million in 2024[161] Mergers and Financing - A merger agreement was entered into on November 2, 2023, for a merger of equals with Cedar Fair, which is expected to create a new parent entity named CopperSteel[137] - The completion of the mergers is subject to antitrust review and other conditions, with a significant request for additional information received from the DOJ on January 22, 2024[139] - A senior secured revolving credit facility of up to $850 million has been committed as part of the merger-related financing[163] - The company is in compliance with all covenants of its credit facilities as of March 31, 2024[162] Tax and Share Repurchase - Income tax benefit for the three months ended March 31, 2024, was $23.2 million, with an effective tax rate of 21.9%, compared to $17.9 million and 20.4% in the prior year[151] - The company has repurchased 8,071,000 shares of common stock at a cumulative cost of approximately $365.1 million, with an average cost per share of $45.24, leaving $134.9 million available for further repurchases[158] - The company expects to utilize federal net operating loss carryforwards to reduce cash tax obligations through fiscal year 2024, although future use may be restricted due to proposed mergers[159]