Q1 2025 Six Flags Entertainment Corp Earnings Call
Ladies and gentlemen, thank you for standing by my name is happy and I'll be your conference operator today.
Speaker Change: At this time I would like to welcome everyone to the six Flags Entertainment Corporation first quarter 2025 earnings call.
All lines have been placed on mute to prevent any background noise. After.
Speaker Change: The speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time simply press star followed by the number one on your telephone keypad.
Speaker Change: If you would like to withdraw your question Press Star one a second time.
Speaker Change: Thank you and I would now like to turn the conference over to six flags management go ahead. Please.
Michael Russell: Thanks, Kathy and good morning, everyone. My name is Michael Russell Corporate director of Investor Relations for six flags.
Michael Russell: Welcome to today's earnings call to review, our 2025 first quarter financial results for six Flags Entertainment Corp.
Michael Russell: Earlier. This morning, we distributed via wire service our earnings press release, a copy of which is also available under the news tab of our Investor Relations website at investors <unk> six flags dot com before we begin I need to remind you that comments made during this call will include forward looking statements within the meaning of the federal Securities law.
Michael Russell: Yes.
Michael Russell: These statements may involve risks and uncertainties that could cause actual results to differ from those described in such statements for a more detailed discussion of these risks you may refer to the company's filings with the SEC in compliance with the Sec's regulation FD. This webcast is being made available to the media and general public as well as analyst.
Michael Russell: And investors because the webcast is open to all constituents and prior notification has been widely and are selectively disseminated all content on this call will be considered fully disclosed on the call with me. This morning are six flags, Chief Executive Officer, Richard Zimmerman, and Chief Financial Officer, Brian weather.
Richard Zimmerman: With that I'll turn the call over to Richard.
Richard Zimmerman: Thank you Michael Good morning, everyone. Thanks for joining us today.
Richard Zimmerman: I would like to start by sharing my perspective on where we are as we ramp up operations at all 42 of our parks and our fourth full year as the new six flags.
Richard Zimmerman: We are making meaningful progress in tapping the full potential of the merger we are seeing stronger market response to our exciting new slate of rides and attractions improving guest satisfaction ratings and executing on our plans to deliver significant cost savings.
Richard Zimmerman: I'm very pleased with the pace of the integration work and I want to thank our teams for their tireless efforts on all fronts over the past several months.
Richard Zimmerman: As we noted in our earnings release. This morning, our results showed the operating loss that is typical for our seasonal business that has very few parks in operation during the first quarter of the calendar year.
Richard Zimmerman: While the operating loss in the quarter was greater than the combined loss of the legacy companies in 2024, who is only slightly greater than what we expected and our operating plan and was consistent with the level of off season off season.
Richard Zimmerman: He's an investment necessary to prepare our parks to open.
Richard Zimmerman: Despite the weather and other macro level level challenges, we face to begin the year, we remain confident in our outlook for the business.
Richard Zimmerman: And especially in our 2025 operating plan.
Richard Zimmerman: Our plan was built around a strategy to minimize lower value operating days, particularly in the first and fourth quarters maximize the number of operating days in the second and third quarters and make upfront investments that will enhance the guest experience and drive demand and revenue generation as we head towards the heart of the 2025 operating season.
Our confidence is backed by the solid results we generated in April despite recent weather issues.
Richard Zimmerman: The positive momentum we are seeing long lead indicators such as season pass sales in school and use group bookings and the excitement being generated in our markets by the compelling slate of new rides and attractions. We are introducing this year.
Richard Zimmerman: While overall April results fell short of expectations due to the recent bout of cold and wet weather.
Richard Zimmerman: We are nonetheless encouraged with the improving trends, we saw particularly on good weather weakens earlier in the month of April.
Richard Zimmerman: We are also pleased with the April trends in season pass sales positive momentum that is encouraging as we head into the peak sales months of May and June which combined are expected to represent close to 40% of the full year sales cycle.
Richard Zimmerman: And as more parks begin to re began to reopened last week bookings at our resort properties trended higher up more than 10% versus the comparable week last year. Another positive indicator consumers remain engaged as we get closer to daily operations in the peak summer season.
Richard Zimmerman: Most importantly, we saw no detectable change in guest behaviors in April despite broader market concerns when the weather was good we were encouraged by the strong demand. We saw our guests continued to demonstrate a willingness to spend on goods and experiences they value reinforcing our view that high quality close to home entertainment.
Richard Zimmerman: Payment options like ours are highly resilient, even in a choppy macroeconomic environment.
Richard Zimmerman: We believe this positions us well to achieve our 2025 performance goals.
Richard Zimmerman: While the economic landscape remains unclear we continue to focus on what we can control executing our merger integration plan optimizing our cost structure and enhancing the guest experience to drive demand.
Richard Zimmerman: We remain firmly on track to achieve the $120 million in merger cost synergies by the end of the year six months earlier than originally contemplated that the announcement of the merger.
Richard Zimmerman: As Brian will outline in a moment and in keeping with our operating plan. We now expect current year operating cost and expenses to be more than 3% lower than combined 2024 actuals for both legacy companies.
Richard Zimmerman: As part of our cost reduction plan, we are engaged in a corporate restructuring process designed to flatten our organizational structure streamline decision, making and drive cost efficiencies.
Richard Zimmerman: As an example earlier this month, we eliminated multiple senior executive leadership positions at the corporate level and consolidated functional ownership under a few key Lee.
Richard Zimmerman: These changes and others, we have underway will create new opportunities for the next generation of leadership within the company support the cultivation of talent across the organization and meaningfully reduce cost.
Richard Zimmerman: Once this initiative is completed we will have reduced our full time head count by more than 10%.
Richard Zimmerman: Our system wide reorder effort, along with additional cost savings initiatives. We've identified post merger are designed to reset the company's cost base and deliver an incremental $60 million of cost savings above and beyond our original synergy target by the end of 2026.
Richard Zimmerman: Before I turn the call over to Brian to review our results in more detail, let me take a moment to address the evolving tariff situation.
Richard Zimmerman: While recent developments in the U S trade policy have created marketplace uncertainties based upon the tariffs as currently outlined we believe our exposure is relatively limited. The fact that labor represents more than 50% of our operating cost structure inherently minimize the potential impact of any new tariffs.
Richard Zimmerman: On the non labor portion of our cost structure. We believe we are well positioned to substantially absorbed were offset any impact without significantly affecting our cost structure our margin outlook.
Richard Zimmerman: Naturally our teams are already actively working with suppliers and sourcing partners pursuing mitigation strategies to offset these impacts through material substitution alternative sourcing and where appropriate pricing adjustments to protect our margins.
Richard Zimmerman: We will continue to update the market as additional clarity becomes available with that I will turn the call over to Brian for a review of our financials.
Speaker Change: After his remarks I'll return with some closing thoughts Brian.
Brian Weather: Thank you Richard and good morning, I'll begin by providing some additional color on our first quarter and April results before providing an update on select balance sheet items first it's important to remember that the first quarter is not indicative of full year performance, we would normally expect the quarter to represent roughly 7% of full year attendants.
Speaker Change: And revenues.
Speaker Change: Kurt considerable cost during the first few months of the year related to preparing our parks to open a small number of operating days and the higher fixed nature of our early season cost structure limits, our upside and makes even small variances performance look more meaningful than when it really reflects in terms of full year performance.
Speaker Change: Based on actual first quarter results. This year's first quarter performance tracks closer to approximately five 5% our full year attendance and closer to approximately 6% of full year revenues based on our current full year outlook.
Speaker Change: As we noted in our earnings release. This morning first quarter results were impacted by operating calendar shifts, including strategic changes that were made to key park events such as the.
Speaker Change: The Boysenberry festival at Knott's Berry farm, which shifted into the second quarter of this year.
Speaker Change: Well coming into the year, we had planned to have approximately five fewer combined operating days in the first quarter compared to last year. We ended the quarter with 14 fewer days. The result of managing our park operating calendars tightly in response to inclement weather and other cost savings objectives.
Speaker Change: The fewer operating days combined with the shift of the not bear the Knott's Berry Farm Boysenberry Festival for the second quarter were the biggest drivers of first quarter year over year attendance and revenue declines.
Speaker Change: Timing variances that we expect to reverse in the second and third quarters as we expand our operating calendars, particularly at our parks, where the opportunities for attendance growth are the greatest.
Speaker Change: Looking at April demand trends, which even out some of the early season calendar shifts or tenants over the past five weeks was up a little more than 1% compared to the prior year. This was despite the Midwest being plagued by having rain and cooler than normal temperatures over the last two weeks of the month, a strong indication that demand for our parks remains strong.
Speaker Change: When not disrupted by weather, we estimate the impact of weather on April attendance was approximately 175000 visits normalizing for the weather difference April attendance would have been up approximately 8% on a year over year basis.
Speaker Change: Meanwhile, guest spending trends during the first quarter were also affected by the operating calendar changes. This led to a mix shift to lower priced tickets in the absence of higher demand events like the Boysenberry Festival, which also shifted higher in park spending visits into the second quarter.
Speaker Change: As expected April per capita trends improved from the first quarter consistent with the shift in our operating calendars and higher attendance levels base.
Speaker Change: Based on trends to date and the strategic initiatives. We have planned for the season. We expect per capita spending to continue to increase as we get deeper into the season and attendance levels move higher and length of guest stays increase.
Speaker Change: Coming out of the first quarter, we were pleased to see momentum in the sale of season passes and membership strengthen.
Speaker Change: The recent robust performance despite the weather disruptions at the end of April narrowed the sales gap to prior year to approximately 2% in terms of units sold and 3% in terms of total sales shortfalls that our team is focused on closing as we head into the critical May June sales window.
Speaker Change: Based on our current program strategies, we expect the average price of a season pass at our legacy Cedar Fair parks to be up 3% to 4% over the balance of the sales cycle, while the average price at our legacy six flags parks is projected to be essentially flat to prior year. The result of changes to the product structure and a mix shift in past type sold.
Speaker Change: While disappointed to see a tenants over the last two weeks of April impacted by weather after building such strong momentum earlier in the month. It's important to note that April only represents roughly 20% of expected second quarter attendance and revenues.
Speaker Change: There is ample time over the balance of the quarter to build upon the positive demand trends, we generated earlier in the month.
Speaker Change: Based on current park operating calendars, we are expecting to pick up an incremental 37 operating days in May and June bringing our projected total second quarter operating days at 2028.
Speaker Change: <unk> 36 days from the second quarter last year.
Speaker Change: This should bode well and expanding our opportunities to drive higher levels of tenants in revenues in the quarter.
Speaker Change: Shifting to the cost side of the business for a moment from a cost perspective, our teams delivered results largely in line with expectations. During the first quarter. While there were some anticipated cost timing differences that should reverse over the next two quarters, we expect where we cap controllable variable cost in shack without disrupting the guest experience.
Speaker Change: In the quarter, we incurred $15 million of nonrecurring merger related integration costs and another $5 million of adjusted EBITDA add backs for costs, such as severance and commercial liability settlements.
Speaker Change: First quarter operating expenses were largely consistent with expectations the somewhat higher level of spending was driven by two primary factors first a pull forward of preopening and maintenance work to ensure our parks, we're prepared and our rides were licensed and ready to open on day, one and second an increase in early season.
Speaker Change: Advertising, a strategic decision to support season pass sales and drive higher demand.
Speaker Change: These decisions resulted in an estimated expense timing difference in the quarter of approximately $10 million, which we would expect to reverse over the balance of the year.
Speaker Change: While remaining nimble in our approach we are committed to making decisions like these that set us up for a much stronger performance as demand builds into the key second and third quarters, which by themselves are expected to represent 95% or more of a full year adjusted EBITDA.
Richard Zimmerman: At the same time as Richard noted, we expect the steps, we're taking to optimize our cost structure will reduce full year operating costs and expenses by more than 3%. This year inclusive of our second year of merger related synergies.
Richard Zimmerman: This aggressive cost savings effort is intended to provide some downside protection against any potential weakening in consumer demand. This summer the targeted cost reductions do not contemplate any potential outsized impact related to tariffs, which we expect to be minimal based on the available information at this time.
Richard Zimmerman: As we noted in this morning's earnings earnings release, we are maintaining our full year 2025, adjusted EBITDA guidance of $1 8 billion to $1 $1 2 billion, our confidence in our ability to deliver another strong performance. This year is underscored by the resilience of our business model as demonstrated in the past by the rapid.
Richard Zimmerman: From macro events, including the great recession of <unk> nine and the Covid disruption.
Richard Zimmerman: As I close to home less expensive and less complicated choice for entertainment. Our parks have historically performed well throughout various cycles as families always find a way to make time for fund.
Richard Zimmerman: We believe those same staycation attributes are even more relevant today and combined with an outstanding 2025 capital program position us well as we head into the peak summer season.
Richard Zimmerman: Now turning to the company's balance sheet for a moment.
Richard Zimmerman: We ended the quarter with ample liquidity, including $62 million of cash on hand, and $179 million of available capacity under our revolving credit facility.
Richard Zimmerman: Of the company's $5 3 billion of gross debt at the end of the first quarter, which included $626 million in borrowings on our revolving credit facility approximately 70% is fixed through long term notes.
Richard Zimmerman: And outside of $200 million in senior notes that mature in July of this year, we have no significant maturities before 2027 and.
Richard Zimmerman: We are monitoring the credit markets and evaluating options to address our July notes, including the possibility of using projected balance sheet liquidity to fund pay off.
Richard Zimmerman: Regarding our capex programs during the first quarter, we spent $140 million on capital expenditures, which is consistent with our previously disclosed expectation to spend $475 million to $500 million for the full year in 2025.
Richard Zimmerman: As we have previously previously said our plan is to invest a similar amount in 2026.
Richard Zimmerman: Beyond our Capex plans, we are in a strong position to use excess free cash flow to pay down debt as quickly and efficiently as possible.
Richard Zimmerman: With that I'd like to turn the call back over to Richard.
Richard Zimmerman: Thanks, Brian as.
Richard Zimmerman: As we look towards the rest of the year I'd like to take a few minutes to expand on our strategic roadmap and how we are positioning <unk> to deliver sustainable growth in 2025 and beyond.
Richard Zimmerman: First and foremost as I mentioned earlier, we've made significant progress on our merger integration and synergy realization plans.
Richard Zimmerman: From a systems perspective, our it integration is on track, yes data across all parks will be migrated to our in house ticketing platform by year end, providing a seamless experience for all park pass holders and enabling a more unified approach to pricing promotion and CRM.
Richard Zimmerman: Integration of the full technology stack remains a multiyear initiative, although we're pleased with the groundwork that has already been laid to advance that effort.
Richard Zimmerman: Our ongoing portfolio optimization efforts are another key of our strategy to strengthen the business and realize the full potential of the merger.
Richard Zimmerman: I am pleased to say that these efforts are well underway as evidenced by the recent announcement of our plans to close our Maryland parks out through 2025 season.
Richard Zimmerman: The decision to Sunset six Flags America and Hurricane Harbor at the end of this season was a difficult but necessary one of.
Richard Zimmerman: A decision that aligns with our border broader priorities to simplify our operations reduce portfolio risk and focus resources on high margin high growth parks.
Richard Zimmerman: Proceeds from the divestiture of noncore assets, such as this will support debt reduction and the transactions are expected to be cash flow accretive reduce our leverage ratio and modestly improve EBITDA margins.
Richard Zimmerman: It is premature to provide a specific timetable for the sale process, but it's reasonable to say it could take 12 months to 18 months or more to complete.
Richard Zimmerman: Along with other asset sale efforts, including excess land adjacent to Kings Dominion near Richmond, Virginia, We will work diligently with our real estate advisors to execute these transactions as efficiently as possible while maximizing value.
Richard Zimmerman: As it relates to the future divestiture of assets, we don't have any plans to close any additional parks at this time.
Richard Zimmerman: We will continue to evaluate all options and consider other potential transactions to enhance shareholder value in.
Richard Zimmerman: In the meantime, we are excited at the prospect of operating all 42 of our parks for the 2025 season.
Brian Weather: We have also made great progress building out our capital plans for the next few years with our capital strategy remaining disciplined and tightly aligned with our growth priorities as Brian mentioned earlier, we still expect to invest approximately $1 billion on capital projects for the 2025 and 2026 seasons.
Brian Weather: Should macroeconomic conditions meaningfully change, we will have several levers at our disposal to reduce our use of cash most meaningfully as our ability to quickly adjust the scope of our Capex program <unk>.
Brian Weather: Approximately 30% of our annual Capex budget is allocated to infrastructure projects that are more discretionary have shorter lead times and can often be delayed until later periods, along with our ability to adjust our operating cost structure up and down to match demand levels. This affords us the flexibility to rationalize our use of cash.
Brian Weather: Should market conditions change materially from plan.
Brian Weather: We will continue to be disciplined and nimble in deploying capital.
Brian Weather: Despite broader concerns around the economy, we remain focused on executing our strategic roadmap driving topline growth capturing synergies and resetting our cost structure, optimizing our portfolio of assets and improving capital efficiency.
Brian Weather: Which positioned six flags well to deliver quality earnings growth substantial free cash flow growth and enhance value for our shareholders.
Brian Weather: We are excited to share more details of our long term strategy at our upcoming Investor day, where we will outline our growth objectives through 2028.
Brian Weather: <unk> way to a 40% margin and a clear line of sight for unlocking more shareholder value.
Brian Weather: In closing I want to thank our associates for their commitment to delivering an exceptional guest experience to the investment community. We appreciate your continued support and confidence and look forward to keeping you updated on our progress as we pursue our long range targets.
Brian Weather: That concludes our opening remarks, please open the line for questions.
Brian Weather: Thank you and.
Brian Weather: And we will now begin the question and answer session.
Brian Weather: If you have dialed in and we would like to ask a question. Please press star one on your telephone keypad to raise your hand and join the queue.
Brian Weather: I would like to withdraw your question simply press Star one a second time.
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Brian Weather: To be able to take as many questions as possible. We ask that you. Please limit yourself to one question and one follow up you may rejoin the queue. If you have additional questions.
Brian Weather: Again, it is star one if you would like to join the queue.
Speaker Change: And our first question comes from the line of James Hardiman with Citigroup. Your line is open.
Speaker Change: This is Sean Wagner on for James Hardiman.
Speaker Change: I believe the 36 additional operating days works out to about 2% growth in operating days in the second quarter.
Speaker Change: Do you expect attendance and sales growth in that quarter to compare to that number.
Speaker Change: I'll, let Sean it's Richard I'll, let Brian take the number aspect of it what I will say I'll reiterate what we said in our guidance.
Speaker Change: From the beginning have believed that second and third quarters of where the opportunity where as we look at the combined park portfolio. So all of our emphasis as we believe those are higher margin days, we below bleed those are.
Speaker Change: Going to be highly accretive.
Speaker Change: And we see really strong demand heading into the second quarter and third quarter days Bryan.
Bryan: Yes, Sean we don't have.
Speaker Change: Specific quarterly guidance.
Bryan: Couch my comments carefully here.
Bryan: As Richard mentioned.
Bryan: The focus coming into 2025 was about optimizing that the operating calendar and taking out lower value days in the first and fourth quarter or maybe you can characterize a slightly difference eight days that have have a lower ceiling and maybe a lower floor at the same time because of the variability.
Bryan: City of whether adding back days in the second and third quarter.
Bryan: We'll be higher value days that we believe not only represent the ability for our higher margin days, but also higher attendance days.
Bryan: Okay.
Speaker Change: And I guess is there any quantification you can give us on the Easter <unk> Boysenberry festival shifts and now that Easter is behind us and most of the Boysenberry Festival has occurred.
Speaker Change: Do you expect to make all of that up in <unk> or the poor weather tend to hold any of any of that back.
Speaker Change: We will certainly weather has been as we noted a factor in April we said.
Speaker Change: Weather and led by the Midwest.
Speaker Change: It wasn't exclusive to the Midwest, but the Midwest was the most impacted we lost as we noted on the call and our prepared remarks about 175000 visits over that last half of the second the last two weeks I'm sorry of April.
Speaker Change: Boysenberry is still ongoing the event as an over it runs through through May.
Speaker Change: At the middle of May at.
Speaker Change: At Knott's and so.
Speaker Change: <unk> will have have sort of lapped by the time, we get to the end of the second quarter. We do believe as we were just talking about the opportunities to add those days in may and June are going to be greater or have greater upside.
Speaker Change: Then what was potentially lost in April because of because of the weather now may and June could also face weather issues. That's the that's the uncertainty of an outdoor entertainment business, but we're excited about the potential that may and June represent with those those incremental operating days.
Speaker Change: Okay, and just to clarify is there any quantification you can give us on I guess, the attendance impact the Easter or the Boysenberry Festival shifts head.
Speaker Change: Boyson would've been the most pronounced and boysenberry now getting the events not over so I don't want to give.
Speaker Change: And uninformed number on boys and I think we'll be in a better position to tell you exactly what shifted after the Boysenberry event is fully ramped.
Speaker Change: Okay. Thank you very much.
Speaker Change: And our next question comes from the line of Steve <unk> with Stifel. Your line is open.
Speaker Change: Yeah, Hey, guys good morning.
Speaker Change: Yes.
Speaker Change: How are you guys hope you guys are doing well so.
Speaker Change: So Brian just want to clarify something.
Speaker Change: You mentioned I'm pretty sure you mentioned in your prepared remarks that you are expecting the first quarter attendance to represent.
Speaker Change: I think you said about five 5% for the full year, and then first quarter revenues to be about 6% for the full year and thats.
Speaker Change: That's different than what I think was in your release I think your release says it should be about 7% for both I assume thats more historical versus anything else and just wanted to clarify that I heard you right. There because I think theres a lot of folks and investors out there that are kind of little bit panicked about what was in the release.
Steve: Yes, Steve.
Steve: The 7% would be more.
Steve: A historical or what we would normally expect coming into a year given some of the headwinds.
Steve: Around timing of operating calendars and other.
Steve: Other factors.
Steve: <unk>.
Steve: The pace that we're on right now you heard correctly on attendance. We're currently tracking where first quarter would represent five 5% of full year attendance based on our outlook over the balance of the year and revenues closer to.
Steve: 6%, which is.
Steve: Inside of what would be a normal course or historical pacing for the first quarter.
Steve: The most I think the thing the key thing to take away is that the first quarter is not a.
Steve: Our material quarter by by any stretch, it's a very important quarter from a from a setting up the stage for getting the parks ready to open but in terms of the trend lines. As we said, it's somewhat of an inconsequential or not indicative quarter. When it comes to what full year potential looks like.
Speaker Change: Okay got you thanks for that Brian and then second question, probably for you Richard but.
Speaker Change: Want to ask about the decision to close the six flags Park.
Speaker Change: In Maryland.
Speaker Change: But look I guess the thesis is.
Speaker Change: Essentially shut the parked down that land there.
Speaker Change: I'm from Maryland that land has to be worth a decent amount of money and then you'll be able to keep the majority of those folks.
Speaker Change: Essentially it's your Kings Dominion Park, which is relatively close in the Grand scheme of things.
Speaker Change: So I guess the question is as we kind of look across your portfolio. I know you said you are not actively looking to shut other assets down but to me. It would seem like there are other opportunities to do the same type of thing across across the portfolio.
Speaker Change: And so while you are maybe not shopping something today is that the right way to think about it I think.
Speaker Change: Let me answer it this way Steve I think it's a good question as I think about that particular land parcel and we think back to the transaction that we did at legacy Cedar.
Speaker Change: Back in 2022 with the land underneath our Santa Clara part there are times, where you have a unique opportunities and it's truly is unique.
Speaker Change: And put the land in Maryland underneath our DC Park in Atlanta, Richmond underneath the excess land.
Speaker Change: At Richmond, both have huge potential to generate.
Speaker Change: <unk> that far in excess of what we think we can produce in terms of results going forward. So when we look at the ability to redeploy capital we try to be good stewards of the capital. That's invested in this company I think we've got an obligation to spot. These types of opportunities and act quickly on them.
Speaker Change: We're going to we're going to move as quickly as possible, while maximizing value because I said in my prepared remarks.
Speaker Change: We do have now.
<unk> all across North America, So there's lots of opportunities for people to buy tickets to our parks in every region, including the D. C area of the Baltimore area.
Speaker Change: And down through.
Speaker Change: Raleigh and in.
Speaker Change: Enrichment as well, but when we think about the rest of the portfolio will continue to evaluate.
Speaker Change:
Speaker Change: Where there are other opportunities, we don't see as much of an opportunity on the the underlying land at this point under the rest of the portfolio, but there may be an opportunity as we said to maximize values, we think about some of our smaller locations.
Speaker Change: Okay got it thanks for that guys really appreciate it.
Dave: Thanks, Dave.
Speaker Change: And our next question comes from the line of PMA Contrarian with UBS. Your line is open.
PMA Contrarian: Thank you so much for taking my question.
Brian Weather: So Brian Richard I can tell you.
Brian Weather: On the Easter shift in events kind of moving out of Q1 into Q2, but then we have sort of April that's tracking a bit softer than what.
Brian Weather: It would have been implied by kind of that Easter shift.
Brian Weather: Yes.
Speaker Change: And I understand you talked about sort of weather impact I guess my question is what gives you confidence to keep the guidance here. It sounded like you haven't really seen much impact from kind of the weakening consumer and your business is there anything else you're watching closely.
Speaker Change: The key question is what are those early signs that you're seeing that gives you the confidence to keep the guidance unchanged here and then I have a quick follow up.
Speaker Change: Thank you let me jump in here and say that we do remain confident of our ability to hit our full year numbers. What we watch are both long lead indicators and we've talked at length today about season pass sales, but also what we're seeing.
Speaker Change: As we look at the information becomes available as we open up parks, how they're performing.
Speaker Change: We opened up Cedar point last Saturday, and then 47 degrees in driving rain that was almost sideways. We had almost 18000 people in the park because there were there to ride the reopened top thrilled to an experience beyond there on opening day at Cedar point, which is a long held tradition, so that type of demand when we see that.
Speaker Change: And a level of demand in less than ideal weather gives us real confidence that we look at things I know, we also watch and I know, there's a lot of concern about.
Speaker Change: The health of the consumer.
Speaker Change: When we look at how our consumers performing let me give you a little backdrop, one thing that we watch when we look specifically at the E Commerce channel and what we sell through our ecommerce channel since a year on year to date basis. Since January one we're up 1% in unit volume and were up mid single digits on price. If you average out everything that we sell through that <unk>.
Speaker Change: Panel. So we continue to see a willingness of the consumer to recognize value and dip into it and then lastly, the other thing that I'm really excited about we've talked at length about our approach to food and beverage and the ability to generate more transactions grow revenues within our food and beverage segment.
Speaker Change: We've renovated 11 restaurants across the portfolio converting them into what we call. Our crew served model to model that improves service capacity allows us to increase menu variety and the ability to drive a higher check average.
Speaker Change: Staffing for.
Speaker Change: The results have been outstanding and encouraging per capita spending is up year over year at all 11 locations. The average transaction value across the 11 locations is up almost 10% five of the locations of increased transaction accounts by more than 50% and four then has doubled the actions. So it's not just <unk>.
Speaker Change: <unk>. It's also the ability to get people to buy up the menu because we have higher quality items that they'll choose but it's also the ability to drive that revenue in a very efficient way and when we look at it that that's part of the Formula here, we're going to continue to drive that in park spending.
Speaker Change: That combined with.
Speaker Change: Our approach to cost management, and I'll reinforce that Brian and I. Both said in our prepared remarks, we anticipate that operating costs and expenses will be down 3% or more.
Speaker Change: In this calendar year, so, yes, tough first quarter not full year performance, but the ability to drive top line revenue growth.
Speaker Change: Really the cost efficient and take cost out of the system, which is one of the rationales behind the deal the ability to continue to optimize portfolio. So all those things give us confidence that we can achieve the 25.
Speaker Change: Operating plan, but also more importantly set up a really successful 26 and beyond and we will have for everybody on that topic. When we get together for our Investor day on May 20.
Speaker Change: Looking forward to that and thank you. That's super helpful. Just a quick follow up Richard if I may in terms of your asset sales is it possible at all to put in perspective kind of what your expectations are in terms of proceeds for the combined land sale and the Maryland sale.
Speaker Change: Yes, I'm trying to understand what's the extent of deleveraging, we could expect from those cities.
Ken: Thank you Ken I am I understanding there could be some sensitivity around how much you can say so I appreciate anything I could get.
Speaker Change: I'll, let Brian weigh in as well, but we'll have a lot more to say in terms of deleveraging target and how we see.
Speaker Change: Both the proceeds from this and any other potential actions between now and 2028 will have more to say on that on may 20th, but we're looking to do unlock cigna.
Speaker Change: Significant proceeds, particularly from the land sales and then we would approach anything else that has to be something that would generate.
Brian Weather: Significant impact, but its really about also reducing the complexity of our business model and making sure that the capital we're putting back in the business goes towards those high potential high revenue growth opportunity cites Brian.
Speaker Change: Yes.
Speaker Change: Not going to put a specific price.
Speaker Change: On those those two locations, but if you were to go out and look at at market.
Speaker Change: A range of market price per acre you can see a.
Speaker Change: Gross proceeds number that.
Speaker Change: Could easily get north of a couple of hundred million dollars.
Speaker Change: Okay.
Speaker Change: Thank you very much.
Speaker Change: And our next question comes from the line of Thomas <unk> with Morgan Stanley. Your line is open.
Speaker Change: Thanks, So much I wanted to ask about progress unifying your season pass selling strategy I think <unk> been implementing a more consistent pricing under legacy six flags footprint than was historically used so any more color you can provide on how you've seen behavior shift on the <unk> side, maybe both in terms of the blended pricing.
Speaker Change: To date and the pace of adoption do you come back and how much you think that contributed to the gains that you saw in the last four or five.
Speaker Change: Period.
Speaker Change: Listen.
Speaker Change: Thomas Good morning, Richard what we saw over the last four or five week period. Indeed was indicative of where we think we could go we strongly believe in our consistent approach to the market. So the market understand they can they can they can make their own decisions on on value that we provide and see that the value gets greater.
Speaker Change: There is a tremendous opportunity in June and July given the membership aspect of the six flags program and we've got that sort of the installment at some of the pieces really do need to get back to what I laid out in my prepared remarks, which is getting everybody on the same ticketing system. We harmonize the programs at a high level, we did not want to give up on this.
Speaker Change: And we rolled out the all park passport, which lets you.
Speaker Change: Visit any of our parks in the portfolio. So a lot more work to do but it's really going to be a lot easier.
Speaker Change: And we're going to be a lot more.
Speaker Change: Efficient and effective when everybody's on the same ticketing system when all the data speed it into our data warehouse and the CRM folks.
Speaker Change: Our team can go in and mind the value out of the our guest and the relationship we have with them and focus on driving more visits and getting more out of every visit from those season pass holders, Brian anything you want to add.
Brian Weather: Yes, I would just add.
Brian Weather: So Thomas we knew coming into 'twenty five given all the efforts that Richard just talked about in terms of ticket harmonization, but also program harmonization.
Speaker Change: That it was going to be a little bit bumpy as we as we.
Brian Weather: Reset.
Brian Weather: The season pass and membership programs.
Brian Weather: Both sides of the portfolio.
Brian Weather: Little bit later start to the year with a later Easter and maybe deferring some of the opening days a little bit deeper into the season would put us.
Brian Weather: Timing wise behind where we were last year, but very encouraged by.
Brian Weather: The sales trends up mid single digits in terms of unit sales over the last five weeks of April and I think it's also important to note that.
Brian Weather: There is multiple bites at this Apple right. It's not just the sale of 2025 passes.
Brian Weather: Which may and June as Richard noticed noted very meaningful part of the full sales cycle, but we will before we know it will be quickly into late summer and selling 2026 passes.
Brian Weather: And we feel we'll be in a much better place in terms of the consumers understanding of what the program looks like will be deeper into that exercise of harmonizing the ticketing platform. So.
Brian Weather: We're focused right now the teams are highly focused on on the May June window, but theres a lot of prep work going on.
Brian Weather: With plans for the 26 launch later this summer and so there is there is multiple opportunities to really drive the season pass program in the right direction.
Brian Weather: Got it that's helpful. And then maybe just a quick follow up off of these initial question on the full year attendance implied guidance.
Brian Weather: Five 5%.
Speaker Change: <unk> puts you at around 2% growth rate for the year it might be easing too much precision on a small number at this point, but do you anticipate there is room for attended to still grow above historical trends, which I think is what you guided to last quarter or did that slightly lower than expected <unk> in April.
Brian Weather: Take you down a little bit on that thanks, so much.
Speaker Change: Yes.
Go ahead, Brian.
Speaker Change: Yes, I was just going to say I think.
Speaker Change: You hit it on the head Thomas right. There is a degree of precision.
Speaker Change: That depending on whether you use five 5% or you used five 7% or five 3% can skew things dramatically, we said that the tracking it's tracking right now.
Speaker Change: We're first quarter would represent closer to approximately five 5%, but is there upside to that absolute math certainly.
Speaker Change: We think theres a lot of opportunity in June as evidenced by the expanded operating calendar.
Speaker Change: We think theres great opportunity in July given the weather comps that we have from last year. So I think depending on how those those things play out over the balance of the year.
Speaker Change: What you put into your model you can you can get to a number that's above the 2% for the full year.
Speaker Change: Thank you.
Speaker Change: Thanks Donald.
Speaker Change: And our next question comes from the line of Ben Chaiken with Mizuho. Your line is open.
Ben Chaiken: Hey, good afternoon. Good morning, Thanks for taking my questions I guess first on cost I feel like there's a pretty significant update but we're kind of just golfed over.
Speaker Change: Youre, saying, 3% on a more lower on cost side, just maybe a couple of clarifications here number one is that all due to find out is all cash costs. So just like the delta between revenue and EBITDA.
Point number two is the down 3% plus.
Speaker Change: Fuel kind of like number and when we should expect in the P&L or do we need to gross that up to inflation, so meaning like our costs, our reported costs going to be down, 3% plus or or up when you take into consideration and then point number three.
Speaker Change: What changed versus your previous goal, which I think was $70 million in the year, which I don't think would've gotten do too.
Speaker Change: Down three.
Speaker Change: <unk> plus and then a few follow ups. Thanks.
Speaker Change: So Ben let me jump in here first yes, so what we're saying is when I say down 3% operating cost and expenses I would exclude cost of goods sold so that's a separate calculations.
Speaker Change: Calculation separately.
Speaker Change: Look at things. This is operating expenses and SG&A combined so it will be down 3% per our forecast.
Speaker Change: We did say that we would hit our $1 20.
Speaker Change: We hit $50 million of cost synergies savings last year and this year, we will see it all 70 Thats, how we complete the 120.
Speaker Change: No.
Speaker Change: We're comfortable we've got the decisions in place we are executing on the re org.
Speaker Change: We understand the need to actually expand margins is one of the reasons. We did this deal that's tapping the potential of the merger. So as we look forward, we're continuing to hunt for a little bit more but also emphasized that the 60 million I referenced in my remarks sits on top of that 120 and Thats both the impact in 2006 of decisions we're making.
Speaker Change: This year, but also other things that we can't get to until we harmonize the tech stack. So there is we're plotting out the integration.
Speaker Change: Mining the fruits of the integration over the next 12 months to 24 months. We're pleased we got to 50% more than the cost synergies and savings we originally.
Speaker Change: Promise and we continue to look to be as efficient as possible.
Speaker Change: Understood and maybe just a follow up there for a second in case I missed it.
Speaker Change: So I totally hear you on the.
Speaker Change: Costs ex Cogs, but is that a is that a.
Speaker Change: Net of inflation number.
Speaker Change: When we have labor inflation on top of that I'm trying to.
Speaker Change: From a modeling perspective think about.
Speaker Change: What our expectation should be.
Brian Weather: Yes, Ben it's Brian.
Brian Weather: That number is all in inflation inclusive of the only thing I would I would call out and I think you've alluded to this and how you asked the question.
Brian Weather: That would be excluding any integration or other adjusted EBITDA add backs like severance.
Brian Weather: As we go through this re org effort there'll be a chunk of severance over the second half of the year related to that so really looking at your sort of recurring normal course operating costs and expenses inclusive of SG&A.
Brian Weather: In that target.
Speaker Change: Understood and then and then what are the $60 million and totally appreciate the incremental <unk> that are coming in now in 26, which is I think a new data point can we maybe dive in about what encompasses those $60 million and is that also net of inflation number as well.
Speaker Change: We'll have more to say in a couple of weeks is as we look at the profile of <unk>.
Speaker Change: Our 2028 target, but I would say as I said some of that is the residual impact of the remaining impact of decisions, we're making in real time as we go through reorganizing our company similar things that we can't get to until next year, We're still building out the operating plan, but we think that.
Speaker Change: That level of savings it takes a big chunk out of the inflation impacted next year So Brian.
Speaker Change: Yeah, and I would say right now that target band maybe slightly different that's.
Speaker Change: That's a gross.
Speaker Change: Synergy or cost savings target for 2006.
Speaker Change: I'll be doing a lot more work as we are.
Speaker Change: As we get into later in here into 2005 and building out to 'twenty six plan, where inflation in some of those other things that.
Speaker Change: And that may offset but thats, our gross incremental synergy piece that sits above and beyond the original 120 that we had announced with the merger.
Speaker Change: Got it and then just a lobby and a very quick third one in an ideal world regarding the land sales in Maryland would you get certain entitlements on that Linda Maryland prior to selling for example data in order to maximize value.
Speaker Change: Are you trying to do that currently and maybe a better way of asking it.
Speaker Change: We're working closely with the jurisdictions enrichment and also in D C to make sure that the process yields.
Speaker Change: Our benefit for the company, but certainly a benefit for the community.
Speaker Change: Entitlements are always part of that process, we have found both jurisdictions extremely.
Speaker Change: Engaged and looking to help in the process. So I think those conversations would be productive theres always a tug of war, there's always some tension in the timeline between getting entitlements and what ultimately the property becomes when you redevelop a property and the proceeds you get so we will look for the intersection that.
Speaker Change: As has value, but that also delivers it inefficient timeframe and very very pleased with the cooperation and the discussions so far with with.
Speaker Change: With the local jurisdictions.
Speaker Change: Thank you appreciate it.
Speaker Change: And our next question comes from the line of Matthew Boss with Jpmorgan. Your line is open great.
Speaker Change: Great. Thanks.
Speaker Change: Richard maybe in light of the near term economic uncertainty that you cited how are you thinking about balancing price versus volume near term and then it takes planning on the recapture opportunity from attendance just how best to think about the annual cadence of attendance recapture if we think about maybe the linear.
Speaker Change: R&D of recapturing the lost attendant relative to investments or initiatives that you have in place multiyear.
Speaker Change: Matt I would say as we think about the opportunity to drive market penetration. We think it's one of the key reasons do.
Speaker Change: Key opportunities that the combined company has a new six flags has as we think about that I think there are underpenetrated markets.
Speaker Change: Across the portfolio.
Speaker Change: That reside from either side of the companies that came either side of the legacy company. So.
Speaker Change: What we have seen in the past as you get good traction in year one.
Speaker Change: Get more traction in year, two and there is a build so we're going to talk about what we see over the next few years beyond 'twenty five in early 2006, as we get to May 20th So I don't want to I don't want to foreshadow those comments too much because we've got a robust presentation for everybody and we're excited to go through it but as we think about the opportunity.
Speaker Change: It's considerable you've heard us say that in the Underpenetrated parts. If we if we get those underpenetrated parks up too.
Speaker Change: What we'd say is a guide rail levels, there's there's $10 million in the near term there are significantly more than that in the longer term. So as we think about 2028.
Speaker Change: So there's a there's a look at how we drive demand with our capital plans, which are coming together nicely I'm really excited about the reactions, we've seen all of the parks.
Speaker Change: Have opened and we've seen some tremendous reaction to the coasters that we're opening.
Speaker Change: And that we're about to open so I think there is a.
Speaker Change: Real.
Speaker Change: Affinity for each of the markets and there are is a core customers that really want to come back year after year our job.
Brian Weather: To execute really well provide a great guest experience and get them to come back year after year, Brian anything you want to add.
Michael Russell: I would just say Matt at a high level. The 25 business plan is certainly belts and focused around driving demand as Richard said tapping into the opportunities.
Michael Russell: That are in front of us, but at the same time, we remain confident in our ability to improve guest spending.
Michael Russell: That opportunity will increase as we get deeper into the season as you referenced sort of the cadence of attendance.
Michael Russell: You've heard us talk about keeping our parks comfortably crowded.
Michael Russell: Its important is that extends length of stay which increase the spending on things like food and beverage and drives more demand for premium experience, so while not meaning maybe not material increases in the first quarter and in April seeing per capita continuing to trend in the right direction.
Michael Russell: Is extremely encouraging, particularly as we think about some of the initiatives that we have in place and Richard hit on it a little bit earlier in one of the one of the in answering one of the questions about some of the early momentum we're seeing in the channel like food and beverage with the initiatives of <unk>.
Michael Russell: Renovating and adding food locations. So I think it's a combination of both volume and per capita and pricing will follow right. We'll continue to use dynamic pricing.
Michael Russell: NPI tools that we've always used.
But one thing that we should note is we're putting a floor on pricing while dynamic pricing cuts both ways.
Michael Russell: We're not looking to we've said this before and will continue to say we're not discounters.
Michael Russell: And we're looking to maintain pricing discipline, that's a little bit educated by our past experience that that shows even in challenging economic times demand becomes highly inelastic.
Michael Russell: Meaning that there is no amount of discounting to Bruce to preserve or.
Michael Russell: Our dry preserve attendance or drive the consumer to behave any differently than they are going to so we'll we'll lean into pricing more than will then will take pricing down.
Michael Russell: Great and then maybe just a follow up Brian on the cost side could you just walk through the puts and takes to consider as it relates to maybe this year's reset of the base relative to the underlying operating cost growth to consider as we think about relative to the low to mid single digit growth historically.
Brian Weather: Yes, so I mean, I think coming into this year as Richard said in previous remarks.
Brian Weather: It's the continuation of the effort that began last year. After the merger closed challenging for us to make significant changes in the middle of the season.
Brian Weather: So we were there was a lot of planning and a lot of work that was going on at that point in time, but we had to wait on a lot of those changes until after the season wrapped which for some of our parks was early November in other parks. It wasn't until early January so the exercise to reset the cost base is.
Brian Weather: Across the board it involves as we've said.
Brian Weather: A review and a reset of the org structure. It involves leaning in on other non head count related cost savings whether that be the harmonization of our it staff or or.
Brian Weather: Driving better.
Brian Weather: Terms with our vendor partners and suppliers.
Brian Weather: So it's across the B.
Brian Weather: The spectrum quite frankly, Matt I would say early on it skews a little bit more heavily the opportunity skews a little bit more heavily on the head count side of things.
Speaker Change: And then starts to pivot a little bit more towards the non head count as Richard said there are some things that are contractually tied up for a little longer than you'd like and so you get to them. Maybe later in 'twenty five or they are part of the 26 algorithm for.
Brian Weather: Cost savings.
Brian Weather: In terms of the headwinds were there is always inflation and so we are dealing with that but as we as we noted it to Ben's question.
Brian Weather: We've accounted for that in our target of 3% or more cost reduction.
So Matt let me jump in here.
Speaker Change: Said that this would be the great reset when we put these companies together in 2025 approved to be that when we talk about re architected our business. It's not just re architected. The org structure, we've gone in and applied a lot of science benchmarking different sites against each other we've gone in and read.
Speaker Change: <unk> taken the time to redo our decision making processes. So this was a holistic look at our organization not just the structure, but how we make decisions and I'm really pleased at where we are coming out and how we've clarified within the organization and we'll clarify.
Speaker Change: How we be as effective as possible, while being as efficient as possible and we're really driving this business through the use of kpis and embedding data and analytics around those kpis and all the decisions we're making.
Speaker Change: Great color best of luck.
Pat: Thanks Pat.
Speaker Change: Our next question comes from the line of Michael Swartz with <unk> Securities. Your line is open.
Michael Swartz: Hey, guys good morning.
Speaker Change: Maybe just.
Speaker Change: The macro and consumer uncertainty out there maybe if we just take a step back and go back to.
Speaker Change: Prior periods of consumer.
Speaker Change: Mrs.
Speaker Change: Where do we typically start to see some cracks in the foundation as it pertains to your business.
Speaker Change: Good question, Mike Good morning, Richard when I think back to <unk>, we saw it going into <unk> season pass sales were significantly lower we saw group bookings not just eroding, but we actually had groups, calling us up and canceling.
Speaker Change: And when we looked at our resort.
Speaker Change: Resort bookings, they just werent they dropped off considerably.
Speaker Change: Considerably heading into the season, we're not seeing any of that as I said.
Speaker Change: Torque backwards here.
Speaker Change: We've seen we've seen a 10% increase in opening weekend cedar.
Speaker Change: Cedar point and bookings for that weekend.
Speaker Change: Because people are booking later, but they are booking we have seen an increase in our small group booking channel, which is our fifth are groups that are 15 to 100.
Speaker Change: That's showing strength Houston student groups are showing a lot of strength. So we're not seeing it there we are seeing companies being cautious, but we're also seeing companies, saying book My spring out and what are you got available in the fall so they're they're looking a little bit longer.
Speaker Change: With season pass.
Speaker Change: North of 50%, 55% to 60% of our tenants, we really watch that channel most closely and then again, what we saw and I'll go back to what I said about our ecommerce channel just looking at everything we sell our ecommerce volume up 1% pricing up mid single digits. It means that we don't see the erosion of the consumer that maybe some other businesses are seeing.
Speaker Change: That's not to say that it's not there in other sectors that are consumers in our markets are reacting the way, we would expect them to as we head into late spring.
Speaker Change: Okay, Great that's super helpful and then.
Speaker Change: And then maybe one last question on.
Speaker Change: The first quarter and I know Theres, a lot of a lot of noise in the quarter, given the timing of Easter and some of the some of the calendar shifts, but when I look at the legacy six flags business. It looks like the rate of EBITDA decline was up nearly triple what it was last year.
Speaker Change: Maybe just help us unpack, what why why that why that was.
Speaker Change: Yes.
Speaker Change: Yes, Mike so.
Speaker Change: I think as you look at the.
Speaker Change: The two sides of the portfolio.
Speaker Change: We certainly with the six side.
Speaker Change: Our portfolio of the six flags parks more of those opening up earlier.
Speaker Change: And it's a big chunk of the timing difference I mentioned on the cost side I'd say more of it is happening from the cost side as we.
Speaker Change: Brought forward a lot of off season.
Speaker Change: And whether you want to call it maintenance or Preopening costs, we brought a lot of those.
Speaker Change: From a timing perspective earlier in the year here in 2025.
Speaker Change: And so that that's a bigger part of the equation.
Speaker Change: On our sixth lag side of the portfolio.
Speaker Change: On the Cedar side, a little bit more of a headwind.
Speaker Change: As related to the shift in Knott's Berry farm, but thats really the only part that we have on that side of the portfolio that has any significant or meaningful first quarter operations.
Speaker Change: On the <unk> side, we did see a little bit of headwind on some some of the calendar issues, but not as demonstrative as maybe what we saw with Knott's Berry Farm's Boysenberry Festival.
Speaker Change: Okay Super helpful. Thank you.
Speaker Change: Okay.
Speaker Change: And our next question comes from the line of Ian Zaffino with Oppenheimer. Your line is open.
Speaker Change: Great. Thank you very much.
Speaker Change: Yes.
Speaker Change: We seem to be.
Speaker Change: Very much into it and going well.
Speaker Change: Yes on the F&B side our people.
Speaker Change: Yep.
Speaker Change: Yes.
Speaker Change: And B, if you call it.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Softness.
Speaker Change: Sure.
Speaker Change: Or is it pretty much is robust.
Speaker Change: Yeah.
Speaker Change: And the other would be offerings. Thanks.
Speaker Change: Yeah Ian.
Speaker Change: Richard you broke up a little bit I think you asked about the various pieces of F&B I would say we've seen strength in our meal category, we've seen real strength in beverages, we've still seen great strength in adult beverages. So it really has been across the board.
Speaker Change: Weekend by weekend I would tell you that if its a rainy weekend you don't get as much.
Speaker Change: Much snacks selling stocks go down a little bit as length of stay is probably not the same but we have seen on normal.
Speaker Change: Same day, whether the same day, whether it's sunny weather strength across all of the things that we track.
Speaker Change: We still got I mentioned, the 11 locations that we have already opened we still got a couple more we're going to open in may.
Speaker Change: And I will tell you here at our.
Speaker Change: At our local Charlotte Park, we're putting in an adult swim up beverage bar that is just everybody has been asking me about so we see we see the desire.
Speaker Change: Consumers to really come and enjoy the food and beverage segment.
Speaker Change: Seem to resonate as a guest satisfying we like it as a revenue growth potential but it also is something people talk about and one of the reasons they keep coming back.
Speaker Change: Okay. Thanks, and then maybe the brought into question just geographically can you maybe tell us how.
Speaker Change: Businesses.
Speaker Change: Geographically some of the competitors commented on like the West coast softness.
Speaker Change: <unk> seen any of that at all or is it pretty much.
Speaker Change: Patients geographically stable. Thanks.
Speaker Change: I would say Brian can weigh in here, but I would say what we've seen in Brian referenced that is because we had a couple.
Speaker Change: Inclement weather weekend, rainy weekends, Midwest and east coast that sort of colored it but no. When we've had good weather we've seen what we would expect to see throughout all the regions. So but again, it's a limited sample size at this point, we're only 15% of our operating days in so it's a little hard to get a read on the.
Speaker Change: Whole portfolio when the whole portfolio is not up and operating that'll be in early June when everybody seven days a week. So that's when we'll have real meaningful look at the different regions.
Speaker Change: But I will say historically, what we've seen the Midwest has been rock solid in the last four years.
Speaker Change: That's continued to perform really well.
Speaker Change: Most have a little more impact from weather, particularly on the east coast, but.
Speaker Change: What we like about and we will talk about on May 20th the geographic diversity means we don't have more than 30% of our attendance or revenues in any particular region that well diversified model was one of the keys to doing the merger and why we feel really good about.
Speaker Change: Really good about that diversification, although it does take an adjustment for Brian and I anytime you look at the weather map, we've got parks everywhere. So if theres weather anywhere it's going to be near us.
Speaker Change: Yeah.
Speaker Change: Alright, Thank you very much.
Speaker Change: Okay.
Speaker Change: And we appreciate your patience, we have five questions left in queue, and we would like to take them all.
Speaker Change: Our next question comes from the line of Chris <unk>.
Chris: With Deutsche Bank. Your line is open.
Speaker Change: Hey.
Speaker Change: Good morning, guys. Thanks for thanks for working over time on that.
I was hoping they talked a little bit about just mix and six flags I know you guys. You did the chaperone policy. When you closed the deal last summer I know there was a little bit of near term disruption with that but looking forward and I understand your commentary about pricing on six flags legacy patents, maybe being flat you. Thank you.
Speaker Change: You can get to where you want.
Speaker Change: This year or is that more of a multi year project.
Speaker Change: Okay.
Speaker Change: As I think about the guest mix one of the things I'll go back to is how we think about capital and we've always said and we'll reiterate as we've talked about this business we think.
Speaker Change: There's a rotation of and any any market of thrill rides family product and water product you see that in our mix. This year, we've got waterpark renovations and expansions at La and Dallas, you see coasters and several parks you see here at Charlotte and a couple other markets family product going in I think what we've seen Chris is.
Speaker Change: The broad profile of what we would expect to see as we as we broadened our mix so the.
Speaker Change: Markets are reacting chaperone policy has been helpful. In the key markets across all of our company.
Speaker Change: And we use that extensively but I do think when you offer things that appeal to different segments, you'll start to broaden your base over time.
Speaker Change: Okay.
Richard Zimmerman: Thanks Richard.
Speaker Change: Quick follow up just related to that you also kind of a capex question, which is.
Speaker Change: I know you said about 30% of your your Capex might be infrastructure I don't think that relates to any of.
Speaker Change: The maintenance stuff, you're working on at six flags with respect to lighting.
Speaker Change: Little things that had kind of gone gotten done over the years are you are you satisfied as you head into peak season in the legacy six flags parks that you got all the little things that needed to be fixed or are they kind of in place by now.
Speaker Change: I'll, let Brian weigh and we continue to look at things that we can do to improve the guest experience. We prioritize those things that I think the guest gives us much value at listen as a guy who ran a park I will tell you I walked the site that I was responsible for the first year and 10 years later I still haven't gotten to.
Speaker Change: So the list is always long, we see things that sometimes our customers don't but they are important to us. So we're going to continue to make improvements year by year and make sure that we make sure that we're giving.
Speaker Change: Priority to those things the guests value, most which is why we're so focused on food and beverage because we get a lot of credit for that Theres high perceived value and it really drives our demand.
Speaker Change: Okay. Thanks, Thanks, guys.
Speaker Change: Appreciate it.
Speaker Change: Yes.
Speaker Change: Question comes from the line of Lizzie Dove with Goldman Sachs. Your line is open.
Speaker Change: Hi, there. Thanks for taking the question I know, there's a lot of moving pieces, but just to kind of round everything out.
Speaker Change: Calendar shifts you mentioned the <unk>.
Speaker Change: Q3, Q and kind of timing of cost shifting in attendance shifting any help in how to think about the kind of cadence of EBIT for the year I think the midpoint would imply the next three quarters right around call it 15%, but I'm curious if that's more weighted second quarter third quarter fourth quarter based on just some of the operating calendar.
Speaker Change: You mentioned.
Brian Weather: Yes, Brian I mean, as we said.
Brian Weather: The biggest opportunity and the focus coming into this year was second and third quarters.
Brian Weather: I think third quarter is pretty obvious to everyone is.
Brian Weather: It's the lion's share of of the operating calendar.
Brian Weather: Second quarter represents.
Brian Weather: Some great opportunity, particularly May and June given the expanded number of days in those months as we said on the call. Those two quarters together have the potential to be 95% or more of full year EBITDA.
Brian Weather: So again a lot of the timing is often influenced by macro factors like weather.
Brian Weather: And we've always been very confident then when weather can be a little choppy early in the year you sell plenty of runway to make it up so it gets difficult to be precise and an imprecise world like that but but I think the second and third quarters do provide the opportunity to be a significant.
Brian Weather: Part of the growth story for 2025.
Speaker Change: Got it and then Brian I think you said upfront that.
Speaker Change: You're expanding your operating calendars and this particularly at some parks, where you see the opportunity for attendance at the greatest I'm curious like which are those part. So you see the biggest opportunity or kind of a turnaround story of uplift story from here that you would consider.
Speaker Change: Youll claw pox.
Richard Zimmerman: Yes, so as Richard mentioned, there's a number of parks in the portfolio that from a penetration rate set.
Speaker Change: Lower.
Speaker Change: Then some of the better performing parks.
Speaker Change: And so we'll focus on those I think it's also important to call out that the planned operating calendar changes the additions we're making those are always.
Theres always a little bit of a degree of variability to that meaning that when weather is a little a little unfavorable we're going to manage that day, maybe out of the system.
Speaker Change: From a cost management perspective, and when we see strong demand, particularly this is more of a comment that you would you would see us make changes maybe late August and ended the fall when we see strong demand, we're not afraid to add days Inn and.
Speaker Change: And ride that demand so.
Speaker Change: I think if you look at the operating calendar, you're going to see some some very obvious things, we're adding some days back.
Speaker Change: In June at six flags over Texas as an example.
Speaker Change: That that makes a lot of sense in that market, but there are a number of other markets in the system that we we see a lot of opportunity for.
Speaker Change: <unk> is a fast growing market and we're continuing to look to to find ways to add days.
Speaker Change: In the fall.
Speaker Change: Where we can where we can tap into strong momentum.
Speaker Change: Great. Thank you.
Speaker Change: And our next question comes from the line of Brent <unk> with Barclays. Your line is open.
Speaker Change: Good morning, everybody. Thanks for taking my question. So just on the pass sales digging in a layer deeper.
Speaker Change: The overall pass revenue pace you gave.
Speaker Change: The pricing between the legacy two legacy systems.
Speaker Change: I was wondering if you could maybe talk about it in our volume or unit basis.
Speaker Change: When we think about the different pricing and I understand there's different strategies, but just to give us a sense on sort of momentum on the different the different programs.
Speaker Change: Yes, I think in terms of maybe I'll try and answer it this way.
Speaker Change: In terms of the the outlook, we're trying to drive.
Speaker Change: <unk> volumes on both sides of the combined portfolio.
<unk> with the attendance trends coming into this year.
Speaker Change: We're on our legacy Cedar side of the portfolio tenants was back to near pre pandemic levels. The season pass base is somewhat reflective of that on the <unk> side of our portfolio attendance is still well off of pre pandemic levels, then and because season pass and membership is such a big part of our of our overall attendance.
Speaker Change: You can assume that the past basis is down as well to pre pandemic levels. So the volume opportunity much like for attendance is higher on our at our six parks.
Speaker Change: But we're not satisfied and going to settle for the volume numbers that we have on the cedar side as well so we're going to lean into both if I was trying to separate between the two I would say the opportunity for volume is higher on the <unk> side right now than the Cedar side of the portfolio. The pricing, we can be a little bit more aggressive as we.
Speaker Change: Noted in our prepared remarks on the cedar side because of that.
Speaker Change: Okay. That's helpful. And then just a bigger picture question on the full year guidance, obviously reaffirming EBITDA.
Speaker Change: And you called out macro in the release and you have got some other moving pieces right sounding a little bit better on Opex, and obviously <unk> was a bit was a bit tough versus plan.
Speaker Change: Take a step back and think about all the comments you guys gave today about demand momentum and what youre seeing in terms of topline kpis. It does it seem like you're implying any change to your plan for top line for the year, but please let me know if I'm sort of.
Speaker Change: Walking myself off a cliff here.
Speaker Change: No I would say listen we are encouraged by a number of things we've seen about the kpis that we look at.
Speaker Change: We came in thinking that there was meaningful top line growth to go get we still believe that so we're chasing that hard. We're also trying to be as responsible as possible on the cost side to make sure that we as we've talked at length on this call due to the meaningful cost savings that.
Speaker Change: That combination of driving the topline and meaningful cost reduction should drive a healthy increase in margin but.
Speaker Change: I've commented throughout this call and various channels, we see we see things that are encouraging but im looking forward to getting all 42 of our parks open. So we can get a real read on where everything is.
Speaker Change: Thanks, everyone.
Speaker Change: Thanks, Mike.
Speaker Change: And our final question comes from the line of David Katz with Jefferies. Your line is open.
Speaker Change: Okay.
Speaker Change: And David I'm not sure if you are on mute sorry.
David Katz: Sorry about that thanks for taking my questions. I appreciate you staying on just a little bit longer.
Speaker Change: Just very quick detail number one.
Speaker Change: There was some discussion about a couple of hundred million deals.
Speaker Change: Think what we.
Speaker Change: Herd.
Speaker Change: America, and Hurricane was 100, plus but theres a couple of hundred could we just unpack that a little bit.
Speaker Change: Are we.
Speaker Change: What else is in that couple of hundred are you ready to talk about that at this point are we saving that for.
Speaker Change: Ohio.
Speaker Change: No I'll, let Brian clarify, but the comments about the real estate value of the land in Richmond, and the land in D. C. It could be $200 million or more I think is what we said.
Speaker Change: That's correct, yes, we're not putting a price on on anything separate at this point, David and we're still working through the process.
Speaker Change: With our real estate advisors, and Im going to try as Richard said maximize those values. We were just trying to put a neighborhood.
Speaker Change: If you look at market.
Speaker Change: Prices out there on a per acre basis, you can get the math.
Speaker Change: North of 200 for those two combined locations that we've talked about to this point.
Speaker Change: Understood and then just my my second question is I Hope you would just give us a little insight on the technology side of things.
Richard Zimmerman: I know Richard you talked about analytics being kind of a decision driver.
Richard Zimmerman: How much of that is technology, driven and what inning would you feel like you are in terms of kind of pushing that part of the company going forward I know that it was a legacy six issue.
Richard Zimmerman: I would say this I think in terms of what we desire to have I think we are in the middle innings of building a lot of that out dashboards are coming online virtually every week on different kpis. We've found a way to migrate data over so we can have the information we need but we need to go back to the underlying tech stack and get everybody on the same system.
Richard Zimmerman: Whether that's the same Pos.
Richard Zimmerman: POS system, we've found ways as you would expect us to to get the data pulled out little more cumbersome little more clunky I would say, we know where we want to go we're in the early innings of the tech stack integration, but we're making progress fast.
Speaker Change: Okay, we'll take it.
Speaker Change: Thanks, very much I appreciate being included.
Speaker Change: Thanks, Dave.
Speaker Change: And that will conclude our question and answer session I will now turn the conference back over to Mr. Richard Zimmerman for closing remarks.
Speaker Change: Thanks for joining us on today's call, Brian Michael and I look forward to seeing you. Many of you on Investor Day, we're excited to share our perspective on the growth potential of a larger and more formative six flags as well as our plan for monetizing the growth for the benefit of our shareholders and other constituents across North America and beyond.
Speaker Change: We'll be sure to keep you updated on our progress along the way Michael.
Speaker Change: Thanks, Richard Please feel free to contact our IR Department at 4196272233 in our next earnings call will be in August after the release of our 2022nd quarter results.
Speaker Change: That concludes our call today, Thank you everyone.
Speaker Change: Yes.
Speaker Change: Thank you and ladies and gentlemen, again. This concludes today's call and we thank you for your participation you may now disconnect.
Speaker Change: Yeah.
Speaker Change: