Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company and the largest operator of waterparks in North America, today reported fourth quarter revenue of $280 million, Net Income of $13 million, and Adjusted EBITDA of $99 million. For the full year, the company reported revenue of $1,358 million, Net Income of $109 million, and Adjusted EBITDA of $465 million.

“We are pleased to have delivered record fourth quarter Adjusted EBITDA⁽¹⁾, which provides evidence that our new strategy and our new culture are beginning to take hold,” said Selim Bassoul, President and CEO. “I’m proud of our team’s commitment to elevating the guest experience. In the fourth quarter, we launched three new events and amplified our largest event of the year, Fright Fest, which drove improved attendance trends and guest satisfaction. Our team is hard at work developing an exciting lineup of new events, rides and attractions for 2023, as we look to build on our success in the fourth quarter.”

Total revenue for fourth quarter 2022 decreased $37 million, or 12%, compared to fourth quarter 2021, driven by lower attendance, partially offset by higher guest spending per capita. The decrease in attendance was driven by an increase in ticket prices, the elimination of free tickets and heavily-discounted pass products, and fewer operating days. The company did not open six parks in fourth quarter 2022 that were open for Holiday in the Park in fourth quarter 2021, which accounted for 279 thousand additional guests in fourth quarter 2021.

The $12.15 increase in guest spending per capita compared to fourth quarter 2021 consisted of a $6.60 increase in Admissions spending per capita and a $5.55 increase in In-park spending per capita. The increase in Admissions spending per capita was primarily driven by higher realized ticket prices, a higher mix of single day tickets, and revenue from memberships beyond the initial 12-month commitment period, which is recognized evenly each month and was spread over a lower amount of attendance in 2022 versus 2021. The higher In-park spending reflects the company’s in-park pricing initiatives, and a strong assortment of retail products, food & beverage offerings, rentals, and new events.

The company more than offset the decrease in revenue in the fourth quarter 2022 with lower cash operating costs, driven by full-time headcount reductions, fewer total employee hours worked, and lower advertising costs. These efficiency measures were partially offset by higher wage rates and increases in repair and maintenance, utilities, and other costs due to inflation.

The company had a net income of $13 million in fourth quarter 2022, compared to a net loss of $2 million in fourth quarter 2021. The income per share was $0.16 compared to a loss per share of $0.02 in fourth quarter 2021, driven by lower cash operating costs partially offset by a reduction in revenue. Adjusted EBITDA was $99 million, an increase of $4 million compared to fourth quarter 2021.

Total revenue for full year 2022 decreased $139 million, or 9%, compared to 2021, driven by lower attendance, partially offset by higher guest spending per capita. The lower attendance was driven by an increase in ticket prices and the elimination of free tickets and heavily-discounted pass products. In addition, due to the adoption of a fiscal reporting calendar commencing January 1, 2021, there were three fewer days in full year 2022 compared to full year 2021, which accounted for 89 thousand additional guests in full year 2021⁽³⁾. Lastly, the company closed six parks for Holiday in the Park in fourth quarter 2022 that were open in fourth quarter 2021, which accounted for 279 thousand additional guests in full year 2021.

The $11.53 increase in guest spending per capita compared to full year 2021 consisted of a $7.26 increase in Admissions spending per capita and a $4.27 increase in In-park spending per capita. The increase in Admissions spending per capita was primarily driven by higher realized ticket prices and a higher mix of single day tickets. The higher In-park spending reflects the company’s in-park pricing initiatives, and a strong assortment of retail products, food & beverage offerings, rentals, and new events.

The company partially offset the decrease in revenue in full year 2022 with lower cash operating costs. The reduction in operating costs was driven by full-time headcount reductions, fewer total employee hours worked, and lower advertising costs. These efficiency measures were offset by higher wage rates and increases in repair and maintenance, utilities, and other costs due to inflation.

The company had net income of $109 million in full year 2022, compared to $130 million in the prior year period. The income per share was $1.29 compared to an income per share of $1.50 in full year 2021. Adjusted EBITDA was $465 million, a decrease of $33 million compared to full year 2021, driven by lower revenues, partially offset by a reduction in expenses. During the second quarter 2021, the company received $11 million related to one of its terminated international development agreements in China. Excluding the impact of this payment, Adjusted EBITDA decreased $22 million compared to full year 2021.

Balance Sheet and Capital Allocation

As of January 1, 2023, the company had total reported debt of $2,381 million, and cash or cash equivalents of $80 million. Deferred revenue was $129 million as of January 1, 2023, a decrease of $49 million, or 28%, from January 2, 2022. The decrease was primarily due to lower unit sales of season passes and memberships. In full year 2022, the company invested $112 million in new capital, net of insurance recoveries.

Conference Call

At 7:00 a.m. Central Time today, March 2, 2023, the company will host a conference call to discuss its fourth quarter and full year 2022 financial performance. The call is accessible through either the Six Flags Investor Relations website at https://investors.sixflags.com/news-and-events/events-and-presentations or by dialing 1-833-629-0614 in the United States or +1-412-317-9257 outside the United States and requesting the Six Flags earnings call. A replay of the call will be available on the company’s investor relations site https://investors.sixflags.com

About Six Flags Entertainment Corporation

Six Flags Entertainment Corporation is the world’s largest regional theme park company with 27 parks across the United States, Mexico and Canada. For 62 years, Six Flags has entertained hundreds of millions of guests with world-class coasters, themed rides, thrilling waterparks and unique attractions. Six Flags is committed to creating an inclusive environment that fully embraces the diversity of our team members and guests. For more information, visit www.sixflags.com

Forward Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all statements that are not historical facts and can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "may," "should," "could" and variations of such words or similar expressions. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, (i) the effect, impact, potential duration or other implications of the COVID-19 pandemic or virus variants, and any expectations we may have with respect thereto including the continuing efficacy of the COVID-19 vaccines, (ii) the adequacy of our cash flows from operations, available cash and available amounts under our credit facilities to meet our liquidity needs, including in the event of a prolonged closure of one or more of our parks, (iii) our ability to execute our strategy to significantly improve our financial performance and the guest experience, (iv) expectations regarding consumer demand for regional, outdoor, out-of-home entertainment, including for our parks, and (v) expectations regarding our annual income tax liability and the availability and effect of net operating loss carryforwards and other tax benefits.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are, by their nature, subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Additional risks and uncertainties that could cause actual results to differ materially from those described in such forward-looking statements include, among others, the following factors impacting attendance, such as local conditions, contagious diseases, including COVID-19 and Monkeypox, or the perceived threat of contagious diseases, events, disturbances and terrorist activities; regulations and guidance of federal, state and local governments and health officials regarding the response to COVID-19 or other health emergencies such as Monkeypox, including with respect to business operations, safety protocols and public gatherings (such as voluntary and, in some cases, mandatory, quarantines, as well as shut downs and other restrictions on travel and commercial, social and other activities); economic impact of political instability and conflicts globally, such as the war in Ukraine; recall of food, toys and other retail products sold at our parks; accidents or incidents involving the safety of guests and employees, or contagious disease outbreaks at our parks or other parks in the industry and negative publicity about us or our industry; availability of commercially reasonable insurance policies at reasonable rates; inability to achieve desired improvements and our financial performance targets; adverse weather conditions such as excess heat or cold, rain and storms; general financial and credit market conditions, including our ability to access credit or raise capital; the increased cost of capital due to raising interest rates; macro-economic conditions (including supply chain issues and the impact of inflation on customer spending patterns); changes in public and consumer tastes; construction delays in capital improvements or ride downtime; competition with other theme parks, waterparks and entertainment alternatives; dependence on a seasonal workforce; unionization activities and labor disputes; laws and regulations affecting labor and employee benefit costs, including increases in state and federally mandated minimum wages, healthcare reform and potential wage and hour claims; availability of labor; environmental laws and regulations; laws and regulations affecting corporate taxation; pending, threatened or future legal proceedings and the significant expenses associated with litigation; cybersecurity risks; and other factors could cause actual results to differ materially from the company’s expectations, including the risk factors or uncertainties listed from time to time in the company’s filings with the Securities and Exchange Commission (the “SEC”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we make no assurance that such expectations will be realized and actual results could vary materially. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in our Annual and Quarterly Reports on Forms 10-K and 10-Q, and our other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investors.sixflags.com and on the SEC’s website at www.sec.gov.

Definition and Reconciliation of Non-GAAP Financial Measures

We prepare our financial statements in accordance with United States generally accepted accounting principles ("GAAP"). In our press release, we make reference to non-GAAP financial measures including Modified EBITDA, Adjusted EBITDA and Adjusted EBITDA minus capex. The definition for each of these non-GAAP financial measures is set forth below in the notes to the reconciliation tables. We believe that these non-GAAP financial measures provide important and useful information for investors to facilitate a comparison of our operating performance on a consistent basis from period to period and make it easier to compare our results with those of other companies in our industry. We use these measures for internal planning and forecasting purposes, to evaluate ongoing operations and our performance generally, and in our annual and long-term incentive plans. By providing these measures, we provide our investors with the ability to review our performance in the same manner as our management.

However, because these non-GAAP financial measures are not determined in accordance with GAAP, they are susceptible to varying calculations, and not all companies calculate these measures in the same manner. As a result, these non-GAAP financial measures as presented may not be directly comparable to a similarly titled non-GAAP financial measure presented by another company. These non-GAAP financial measures are presented as supplemental information and not as alternatives to any GAAP financial measures. When reviewing a non-GAAP financial measure, we encourage our investors to fully review and consider the related reconciliation as detailed below.

The following tables set forth a reconciliation of net income (loss) to Adjusted EBITDA for the three-month periods and twelve-month periods ended January 1, 2023, and January 2, 2022:

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