Six Flags Entertainment (NYSE:FUN) Q3 2025 Earnings Call November 07, 2025 08:00 AM ET Speaker2Thank you for standing by. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Six Flags Entertainment Corporation 2025 third quarter earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply ...

United Parks & Resorts (NYSE:PRKS) Q3 2025 Earnings Call November 06, 2025 09:00 AM ET Company ParticipantsThomas Yeh - Equity ResearchJim Forrester - CFO and TreasurerSteve Wieczynski - Managing DirectorArpine Kocharian - Managing DirectorMarc Swanson - CEOPatrick Scholes - Managing Director and Lodging and Leisure Equity ResearchMatthew Stroud - Head of Investor RelationsConference Call ParticipantsNone - AnalystSean Wagner - Equity Research AnalystChris Woronka - Senior Equity AnalystOperatorToday, and w ...

Core Insights - The "Super Golden Week" during the National Day and Mid-Autumn Festival has seen unprecedented enthusiasm in the tourism market, with significant increases in travel demand and passenger volumes across various transportation sectors [1][3][6] Transportation Sector - The Civil Aviation Administration of China predicts that air passenger transport during the holiday will reach 19.2 million, a year-on-year increase of 3.6%, marking the highest level for this period [1] - The railway sector anticipates sending 219 million passengers from September 29 to October 10, with October 1 expected to be the peak travel day [1] - Eastern Airlines plans to operate over 3,200 flights on the first day of the holiday, carrying more than 460,000 passengers, with international routes performing particularly well [3][6] Hotel and Accommodation Sector - Hotel booking rates for the holiday have increased by 3 percentage points compared to last year, with first-tier cities like Beijing leading in bookings [9] - Specific hotels in cities like Changsha have seen occupancy rates rise by 20% compared to the previous year, indicating strong demand for accommodations [9] Tourist Attractions - Popular tourist destinations have experienced a surge in visitors, with the Forbidden City seeing a 150% increase in visitor numbers compared to normal days [2] - The top ten attractions for ticket bookings include natural parks and theme parks, with significant interest in places like Jiuzhaigou and Universal Studios Beijing [2] Emerging Trends - There is a notable shift towards "reverse tourism" and lesser-known destinations as travelers seek to avoid crowded hotspots, with searches for small destinations increasing by over 110% [11] - The demand for "AI route planning" and "AI travel itinerary" services has surged, reflecting travelers' desire to optimize their holiday experiences [11] Cruise Industry - The domestic cruise market is gaining traction, with the launch of the "Aida Magic City" cruise receiving strong demand, indicating a growing interest in cruise travel [13][14] - The international cruise market remains cautious, with MSC Mediterranean Cruises planning to return to China in 2026, reflecting a strategic approach to market re-entry [15][16] Theme Parks - Theme parks are experiencing a significant influx of visitors, with major parks like Shanghai Disneyland and Universal Studios Beijing implementing promotional activities to attract guests [18][19] - The overall performance of theme parks during the holiday is expected to be better than last year, with a projected growth of up to 10% in visitor numbers for well-known parks [23]

Financial Data and Key Metrics Changes - The company experienced a significant decline in attendance during the first half of the year, primarily due to lower renewal rates and season pass sales, as well as macroeconomic factors and extreme weather conditions [11][22][24] - Adjusted EBITDA for the quarter fell well below expectations, leading to a revised full-year guidance of $860 million to $910 million, down from a previous range of $1.08 billion to $1.12 billion [33][36] - The company ended the quarter with approximately $107 million in cash and cash equivalents, with total liquidity of $540 million [19] Business Line Data and Key Metrics Changes - At Legacy Cedar Fair parks, admissions per capita spending increased by 4%, while per capita spending on in-park products rose by 3% [24][26] - The company introduced a reimagined 2026 season pass program aimed at enhancing customer appeal and increasing renewal rates [14] Market Data and Key Metrics Changes - Attendance was down 12% during a six-week period affected by severe weather, while attendance was flat during the first seven weeks when weather was not an issue [22] - In July, attendance improved, with a 1% increase for the full month and a 4% increase over the last four weeks compared to the previous year [28][29] Company Strategy and Development Direction - The company is focused on optimizing its assets and integrating operations following the merger with Cedar Fair, with a commitment to reducing net leverage and increasing adjusted EBITDA [9][15] - Strategic actions include evaluating non-core asset divestitures to accelerate deleveraging and enhance focus on core operations [21][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of macroeconomic pressures and extreme weather on early season performance but expressed confidence in a strong second half due to improved weather and demand trends [10][36] - The company is committed to executing its strategic plan and believes that the challenges faced are transient and not indicative of a fundamental change in consumer behavior [48] Other Important Information - The company has made significant progress in restructuring its organization to reduce full-time labor costs by over $20 million annually [15] - A new ticketing platform and mobile app are scheduled to launch in November, aimed at enhancing customer experience [37] Q&A Session Summary Question: Clarification on macro pressures - Management clarified that macro pressures include significant weather impacts and some pressure on lower-income consumers, but overall spending behavior at parks remains strong [43][45] Question: Understanding the impact of weather on financial targets - Management stated that the challenges faced in the first half are largely transient and do not reflect a fundamental change in consumer potential, with a focus on finishing 2025 strong [48][49] Question: Details on divestitures and timing - Management is actively pursuing two non-core asset sales and evaluating other potential divestitures to optimize the portfolio and reduce risk [56] Question: Cost savings and synergies - Management confirmed that the goal remains to achieve $120 million in cost synergies for 2025, with a focus on permanent cost savings and additional efficiencies [61] Question: Guidance on attendance and pricing - Management indicated that attendance is expected to be flat for the second half, with potential for price increases where demand is strong, particularly during peak events [90][92]

Summary of Conference Call Records Industry Overview - The records primarily focus on the domestic travel and tourism industry in China, highlighting various metrics related to passenger flow, tourism data, and consumer spending during recent holidays. Key Points Domestic Travel Data - Total cross-regional passenger flow reached 657 million, averaging 219 million daily, with a year-on-year increase of 3.0% [1] - Railway passenger numbers totaled 47.108 million, averaging 15.7027 million daily, reflecting a 2.3% year-on-year growth [1] - Civil aviation recorded 5.601 million passengers, averaging 186,700 daily, with a 1.22% year-on-year increase [1] - Road travel accounted for 600 million passengers, averaging 200 million daily, showing a 3.14% year-on-year growth [1] - Waterway travel saw 2.881 million passengers, averaging 960,000 daily, which is a decline of 1.65% year-on-year [1] - Average economy class ticket prices for the upcoming May Day holiday are expected to decrease by 10.4% compared to 2019 and by 25% compared to 2023 [1] Provincial and Scenic Area Tourism Data - Key scenic areas experienced varied growth rates due to weather impacts and base differences: - Laoshan received over 117,000 visitors, up 12.6% year-on-year [3] - Hongcun saw a decline in visitors to 29,125, down 14.16%, with ticket revenue dropping 35.46% [3] - Xidi had 10,812 visitors, down 7.67%, with ticket revenue decreasing by 12.37% [3] - Beijing's parks received 1.2558 million visitors, remaining stable year-on-year [3] - Notable provincial data includes: - Sichuan's A-level scenic areas welcomed 14.2915 million visitors, with ticket revenue of 109.1803 million, marking a 13.02% increase in visitor numbers [3] - Hunan reported 17.2881 million visitors, up 12.56%, with per capita spending increasing by 16.11% [3] - Shanghai received 6.4808 million visitors, with total tourism spending of 12.477 billion, a 3.30% increase [3] - Beijing's total visitor count was 8.211 million, with tourism spending of 10.77 billion, up 6.7% [3] - Guangdong saw a 20.6% increase in visitors, totaling 23.21 million, with tourism revenue up 25.6% [4] OTA Booking Trends - OTA platforms indicate that cultural experiences, short trips, and summer vacations are key growth drivers for domestic travel [6] - Family-oriented travel is prominent, with nearly 90% of the top 50 scenic spots being family-friendly, and family orders constituting 25% of total travel orders [6] - Theme park ticket bookings surged by 127% year-on-year [6] - Booking trends show significant growth in domestic and international travel, with a 15% increase in outbound flight bookings [7] Local Consumption Data - In Beijing, ticket sales for performances reached 140 million, with a 130% increase in box office revenue year-on-year [10] - Retail sales in various cities showed positive growth, with Shanghai's consumption nearing 20 billion, up 4.1% from the previous year [10] - Meituan reported a 193% increase in "Dragon Boat Rice" orders in Guangdong and a 241% increase in specific regional delicacies during the holiday [11] Additional Insights - The overall outflow and inflow of people at national ports is expected to reach 2.15 million daily, a 12.2% increase compared to the previous year [8] - International flights are recovering, with daily operations reaching 1,659 flights, which is 87% of the 2019 level [8] - Hainan's airports are projected to handle 317,000 passengers, with a 2.5% year-on-year increase in passenger throughput [9] Conclusion - The domestic travel and tourism industry in China is showing signs of recovery and growth, with various regions and sectors experiencing different levels of performance. The data indicates a positive trend in consumer spending and travel activity, despite some challenges posed by weather conditions and other factors.

Financial Data and Key Metrics Changes - The first quarter operating loss was greater than the combined loss of the legacy companies in 2024, but only slightly above expectations in the operating plan, consistent with off-season investments [6][14][15] - First quarter attendance represented approximately 5.5% of full year attendance, and revenues were closer to 6%, lower than the historical expectation of 7% [15][46][47] - The company maintains its full year 2025 adjusted EBITDA guidance of $1,080 million to $1,120 million [23][24] Business Line Data and Key Metrics Changes - Attendance trends in April showed a slight increase of over 1% compared to the prior year, despite adverse weather conditions [17] - Per capita spending improved in April, indicating a positive trend as attendance levels increased [18][60] - Season pass sales narrowed the gap to prior year by approximately 2% in units sold and 3% in total sales [19] Market Data and Key Metrics Changes - Bookings at resort properties trended higher, up more than 10% compared to the same week last year, indicating strong consumer engagement [8] - The company expects to add 36 additional operating days in the second quarter, which should enhance attendance and revenue opportunities [20] Company Strategy and Development Direction - The company is focused on executing its merger integration plan, optimizing cost structures, and enhancing guest experiences to drive demand [10][26] - Plans to close the Maryland parks after the 2025 season align with the strategy to simplify operations and focus on high-margin parks [27][28] - The capital strategy remains disciplined, with expected investments of approximately $1 billion for 2025 and 2026 [29][30] Management's Comments on Operating Environment and Future Outlook - Management remains confident in achieving the 2025 performance goals despite economic uncertainties, supported by strong demand indicators [10][62] - The company is actively monitoring consumer behavior and has seen resilience in spending on entertainment options [9][60] - Management emphasized the importance of cost management and anticipates a reduction in operating costs and expenses by more than 3% this year [22][84] Other Important Information - The company ended the quarter with $62 million in cash and $179 million available under its revolving credit facility, indicating strong liquidity [24] - The company incurred $15 million in non-recurring merger-related integration costs during the first quarter [20] Q&A Session Summary Question: How do you expect attendance and sales growth in the second quarter to compare to the additional operating days? - Management believes the second and third quarters present higher margin opportunities and expects strong demand during these periods [35][36] Question: Can you quantify the attendance impact from the Easter and Boysenberry Festival shifts? - Management noted that weather impacted attendance, estimating a loss of approximately 175,000 visits in April, but expects to recover in the second quarter [37][38] Question: What gives you confidence to maintain guidance despite softer April performance? - Management highlighted strong demand indicators, including season pass sales and attendance at parks despite adverse weather [56][60] Question: What are the expectations for proceeds from land sales in Maryland? - Management indicated that gross proceeds from land sales could exceed a couple of hundred million dollars, contributing to deleveraging efforts [66] Question: How is the unification of the season pass selling strategy progressing? - Management reported positive trends in sales and emphasized the importance of harmonizing ticketing systems across the portfolio [69][72]