Q1 2026 Six Flags Entertainment Corp Earnings Call

May 7, 2026

Operator: Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the Six Flags Entertainment Corporation Q1 2026 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star 1 on your telephone keypad. If you would like to withdraw your question, again, press star 1. I would now like to turn the call over to Six Flags management for opening remarks. Go ahead please.

Speaker #1: Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the Six Flags Entertainment Corporation 2026 first quarter earnings call.

Speaker #1: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad.

Speaker #1: If you would like to withdraw your question, again, press the star 1. I would now like to turn the call over to Six Flags Management for opening remarks.

Speaker #1: Go ahead, please.

Speaker #2: Good morning, and welcome to Six Flags Entertainment Corporation's first quarter 2026 earnings conference call. I'm Michael Russell, Six Flags' head head of IR. On the call with me today are John Riley, president and chief executive officer; Brian Witherow, and Dave Hoffman, chief accounting officer and interim finance lead.

Michael Russell: Good morning, and welcome to Six Flags Entertainment Corporation's Q1 2026 earnings conference call. I'm Michael Russell, Six Flags Head of IR. On the call with me today are John Reilly, President and Chief Executive Officer; Brian Witherow; and Dave Hoffman, Chief Accounting Officer and Interim Finance Lead. Before we begin, I would like to remind everyone that certain statements made during this call may be forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described. Please refer to our earnings release and SEC filings for a discussion of those risks. Today's call will begin with prepared remarks from John, followed by Dave. After which John will return for closing remarks. We will then open the call for questions. With that, I'll turn the call over to John. John?

Speaker #2: Before we begin, I would like to remind everyone that certain statements made during this call may be forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described.

Speaker #2: Please refer to our earnings release and SEC filings for a discussion of those risks. Today's call will begin with prepared remarks from John, followed by Dave, after which John will return for closing remarks.

Speaker #2: We will then open the call for questions. With that, I'll turn the call over to John. John?

Speaker #3: Thank you, Michael, and good morning. Before discussing the quarter, I want to address the leadership changes we announced this morning. We have made targeted adjustments across key areas of our senior leadership team.

John Reilly: Thank you, Michael, and good morning. Before discussing the quarter, I want to address the leadership changes we announced this morning. We have made targeted adjustments across key areas of our senior leadership team, including finance, administration, and marketing, to better align our organization with our strategic priorities going forward. We thank Brian for his many years of service and contributions to this company. Dave Hoffman, our Chief Accounting Officer, will step in on a temporary basis to lead the finance organization. I am confident Dave will help make this a smooth transition. Since stepping into the role of CEO, I've worked with the team to take deliberative actions to strengthen the company's strategic and financial positioning, including the sale of non-core assets, monetization of excess land, and refinancing of our balance sheet.

Speaker #3: Including finance, administration, and marketing, to better align our organization with our strategic priorities going forward. We thank Brian for his many years of service and contributions to this company.

Speaker #3: Dave Hoffman, our chief accounting officer, will step in on a temporary basis to lead the finance organization. I am confident Dave will help make this a smooth transition.

Speaker #3: Since stepping into the role of CEO, I've worked with the team to take deliberate actions to strengthen the company's strategic and financial positioning. Including the sale of non-core assets, monetization of excess land, and refinancing of our balance sheet.

Speaker #3: These actions together with the leadership actions we are implementing position us to execute against our core operating objectives. Turning to the quarter, we delivered meaningful year-over-year improvement driven by higher attendance, increased guest spending, and disciplined cost management.

John Reilly: These actions, together with the leadership actions we are implementing, position us to execute against our core operating objectives. Turning to the quarter, we delivered meaningful year-over-year improvement driven by higher attendance, increased guest spending, and disciplined cost management. While Q1 is seasonally limited with only a subset of parks open, including our parks in California, Mexico, and Texas, the strong Q1 results demonstrate the resilience of our operating model and progress against our priorities. Before getting into the drivers of the quarter, I do want to acknowledge that results benefited from the earlier timing of Easter and spring break, as well as more normalized operating conditions in California relative to the disruption that we experienced in the prior year. While these factors helped, Q1 performance also reflects the cumulative impact of the foundational work we have put in place over the past year.

Speaker #3: While the first quarter is seasonally limited, with only a subset of parts open including our parts in California, Mexico, and Texas, the strong first quarter results demonstrate the resilience of our operating model and progress against our priorities.

Speaker #3: Before getting into the drivers of the quarter, I do want to acknowledge that results benefited from the earlier timing of Easter and spring break.

Speaker #3: As well as more normalized operating conditions in California, relative to the disruption that we experienced in the prior year. While these factors helped, first quarter performance also reflects the cumulative impact of the foundational work we have put in place over the past year.

Speaker #3: This includes the integration of our ticketing platforms, enhancements to our digital and commercial capabilities, and operational improvements across our parks. Together, these efforts are driving measurable gains in consumer engagement and demand.

John Reilly: This includes the integration of our ticketing platforms, enhancements to our digital and commercial capabilities, and operational improvements across our parks. Together, these efforts are driving measurable gains in consumer engagement and demand. A key component of that progress has been our decision to allocate additional resources to our revenue management efforts, supported by enhancements to our consumer-facing digital platforms. As part of this initiative, we have embedded pricing and revenue management expertise into the organization and redesigned our platforms to better guide guests toward the best value for their needs. In Q1, we saw the benefits in higher conversion rates, improved capture, and increased migration toward higher value season pass products.

Speaker #3: A key component of that progress has been our decision to allocate additional resources to our revenue management efforts. Supported by enhancements to our consumer-facing digital platforms, as part of this initiative, we have embedded pricing and revenue management expertise into the organization, and redesigned our platforms to better guide guests toward the best value for their needs.

Speaker #3: In the first quarter, we saw the benefits in higher conversion rates, improved capture, and increased migration toward higher value seasoned pass products. New for 2026, we've introduced regional access benefits across select pass tiers.

John Reilly: New for 2026, we've introduced regional access benefits across select pass tiers, allowing guests to visit multiple parks within a defined region. This new regional pass offering is gaining traction as guests are demonstrating a clear preference for greater flexibility and broader access, driving product upgrades and increased cross-park visitation. We are encouraged by the early response, including improved pass sales trends, a more favorable product mix, and strong guest interest in visiting more than one park. The regional pass has also enabled us to enter the core of the season with a larger and more engaged pass and membership base, which we expect will support visitation and spending through the peak operating period.

Speaker #3: Allowing guests to visit multiple parks within a defined region. This new regional pass offering is gaining traction as guests are demonstrating a clear preference for greater flexibility and broader access, driving product upgrades and increased cross-park visitation.

Speaker #3: We are encouraged by the early response including improved pass sales trends, a more favorable product mix, and strong guest interest in visiting more than one park.

Speaker #3: The regional pass has also enabled us to enter the core of the season with a larger and more engaged pass and membership base. Which we expect will support visitation and spending through the peak operating period.

Speaker #3: Once guests arrive at our parks, we saw strong in-park spending trends during the quarter. Reflecting the earlier timing of the Knott's Boysenberry Festival a high per cap event, as well as improved food and beverage offerings and higher park utilization driving incremental ancillary spend.

John Reilly: Once guests arrive at our parks, we saw strong in-park spending trends during the quarter, reflecting the earlier timing of the Knott's Boysenberry Festival, a high-per-cap event, as well as improved food and beverage offerings and higher park utilization, driving incremental ancillary spend. To restore localized decision-making, we have reintroduced park presidents at our largest parks. We've done this to improve accountability, accelerate decision-making, and drive greater consistency across the portfolio. We remain disciplined in our capital allocation. Our priority is to invest in parks that offer the highest returns, particularly at our larger properties, with a focus on enhancing the guest experience through targeted investments in rides, food and beverage, and the overall environment. Residual free cash flow will be directed toward operations and toward debt reduction.

Speaker #3: To restore localized decision-making, we have reintroduced park presidents at our largest parks. We've done this to improve accountability, accelerate decision-making, and drive greater consistency across the portfolio.

Speaker #3: We remain disciplined in our capital allocation. Our priority is to invest in parks that offer the highest returns. Particularly at our larger properties, with a focus on enhancing the guest experience through targeted investments in rides, food and beverage, and the overall environment.

Speaker #3: Residual free cash flow will be directed toward operations, and toward debt reduction. As an extension of this strategy, we have completed the sale of select parks and progressed on the sale of non-core land assets.

John Reilly: As an extension of this strategy, we have completed the sale of select parks and progressed on the sale of non-core land assets. These actions are expected to enhance margins, sharpen focus, and improve returns to shareholders. With that, I'll turn the call over to Dave. Dave?

Speaker #3: These actions are expected to enhance margins, sharpen focus, and improve returns to shareholders. With that, I'll turn the call over to Dave. Dave?

Speaker #4: Thanks, John. For the first quarter, attendance increased 4%. Per capita spending increased 6%. And net revenue increased 12% compared to the prior year. Through April, which normalizes for the Easter shift, trends in attendance and revenue remain positive.

Dave Hoffman: Thanks, John. For Q1, attendance increased 4%, per capita spending increased 6%, and net revenue increased 12% compared to the prior year. Through April, which normalizes for the Easter shift, trends in attendance and revenue remained positive. Our teams also delivered strong cost control, with Q1 operating costs down meaningfully year over year. Taken together, we drove a $48 million improvement in adjusted EBITDA, reflecting improvements across demand, guest spending, and cost discipline. Performance was driven by pricing and product structure changes, improved marketing and messaging, and strong in-park operations. Consistent with John's remarks, we are seeing the impact of our pricing and revenue management initiatives contributing to improved pricing and product mix.

Speaker #4: Our teams also delivered strong cost control with first quarter operating costs down meaningfully year over year. Taken together, we drove a 48 million dollar improvement in adjusted EBITDA reflecting improvements across demand, guest spending, and cost discipline.

Speaker #4: Performance was driven by pricing and product structure changes, improved marketing and messaging, and strong in-park operations. Consistent with John's remarks, we are seeing the impact of our pricing and revenue management initiatives contributing to improved pricing and product mix.

Speaker #4: This is reflected in the 3% increase in admissions per capita, and the 10% increase in in-park product per capita spending, achieved alongside attendance growth underscoring the quality of demand.

Dave Hoffman: This is reflected in the 3% increase in admissions per capita and the 10% increase in in-park product per capita spending, achieved alongside attendance growth, underscoring the quality of demand. We strengthened our balance sheet during the quarter through refinancing, improved liquidity, and extending maturities. May and June are key selling periods for our season pass and membership products, and we expect greater visibility into full season trends as we move through those months. Finally, we completed the sale of select non-core parks during the quarter and have provided additional details within the earnings release to assist with modeling those disposals. As we think about Q1, it is important to keep a few factors in mind. Results benefited from timing and more normalized operating conditions in California. It is also important to remember that only a portion of our parks are open in Q1.

Speaker #4: We strengthened our balance sheet during the quarter through refinancing, improved liquidity, and extending maturities. May and June are key selling periods for our seasoned pass and membership products.

Speaker #4: And we expect greater visibility into full season trends as we move through those months. Finally, we completed the sale of select non-core parks during the quarter and have provided additional details within the earnings release to assist with modeling those disposals.

Speaker #4: As we think about the first quarter, it's important to keep a few factors in mind. Results benefited from timing and more normalized operating conditions in California.

Speaker #4: It's also important to remember that only a portion of our parks are open in the first quarter. As such, the quarter represents approximately 6 to 8 percent of full year attendance and revenues, and the company usually operates at a loss in the first quarter because most of our seasonal parks are closed.

Dave Hoffman: As such, the quarter represents approximately 6% to 8% of full-year attendance and revenues. The company usually operates at a loss in Q1 because most of our seasonal parks are closed. As a result, we would caution against extrapolating Q1 performance to the full year. Lastly, we are not providing formal earnings guidance or long-term targets at this time. Instead, we are focused on consistent execution across the operating levers that drive long-term value. We believe investors are best served by transparency around demand trends, per capita spending, cost discipline, liquidity, and capital structure, areas where we have strong visibility and are already seeing progress. While we are not providing guidance, we remain committed to regular, transparent communication. As the season unfolds and visibility improves, we will continue to provide clear, qualitative context around performance trends, key initiatives, and progress against our strategic priorities.

Speaker #4: As a result, we would caution against extrapolating first quarter performance to the full year. Lastly, we are not providing formal earnings guidance or long-term targets at this time.

Speaker #4: Instead, we are focused on consistent execution across the operating levers that drive long-term value. We believe investors are best served by transparency around demand trends, per capita spending, cost discipline, liquidity, and capital structure.

Speaker #4: Areas where we have strong visibility and are already seeing progress. While we're not providing guidance, we remain committed to regular, transparent communication. As the season unfolds and visibility improves, we will continue to provide clear, qualitative context around performance trends, key initiatives, and progress against our strategic priorities.

Speaker #4: With that, I'll turn the call back over to John.

Dave Hoffman: With that, I'll turn the call back over to John.

Speaker #3: Thanks, Dave. Before we move to closing remarks, I'll ask Brian to share a few brief comments.

John Reilly: Thanks, Dave. Before we move to closing remarks, I'll ask Brian to share a few brief comments.

Speaker #4: Thanks, John. As this is my final earnings call, I want to say what an honor it has been to serve as the CFO of Six Flags and our predecessor company, Cedar Fair.

Brian Witherow: Thanks, John. As this is my final earnings call, I want to say what an honor it has been to serve as the CFO of Six Flags and our predecessor company, Cedar Fair. Over the last 31-plus years, I've had the opportunity to work with an incredible group of colleagues, execute numerous M&A transactions, including the most important merger in our industry, and lay the foundation for the future of the new Six Flags. I'm proud of everything we've accomplished during that time, and I'm confident that Six Flags is well-positioned to continue to succeed in providing engaging and entertaining experiences for our guests for years to come. John?

Speaker #4: Over the last 31 plus years, I've had the opportunity to work with an incredible group of colleagues, execute numerous M&A transactions, including the most important merger in our industry, and lay the foundation for the future of the new Six Flags.

Speaker #4: I'm proud of everything we've accomplished during that time. And I'm confident that Six Flags is well positioned to continue to succeed in providing engaging and entertaining experiences for our guests for years to come.

Speaker #4: John?

Speaker #3: Thank you, Brian. We appreciate your contributions and we wish you our best. Turning to the quarters ahead, we are entering the most important part of our operating season, with encouraging early momentum, particularly around consumer demand.

John Reilly: Thank you, Brian. We appreciate your contributions, and we wish you our best. Turning to the quarters ahead, we are entering the most important part of our operating season with encouraging early momentum, particularly around consumer demand, and we're excited about our new park offerings. Our 2026 capital program is highlighted by the addition of Tormenta, the world's tallest dive coaster at Six Flags Over Texas, as well as the return of Montezooma at Knott's Berry Farm, one of the park's iconic attractions. Meanwhile, we're focused on the family market at Six Flags Great Adventure in New Jersey with the first phase of a new boardwalk area and at Six Flags Magic Mountain north of Los Angeles with the introduction of Looney Tunes Land, a fully reimagined themed area that will be the home of our Looney Tunes characters, including Bugs Bunny, Daffy Duck, and others.

Speaker #3: And we're excited about our new park offerings. Our 2026 capital program is highlighted by the addition of Tormenta, the world's tallest dive coaster at Six Flags over Texas, as well as the return of Montezuma at Knott's Berry Farm, one of the park's iconic attractions.

Speaker #3: Meanwhile, we're focused on the family market at Six Flags Great Adventure in New Jersey, with the first phase of a new boardwalk area, and at Six Flags Magic Mountain north of Los Angeles, with the introduction of Looney Tunes Land, a fully reimagined themed area that will be the home of our Looney Tunes characters including Bugs Bunny, Daffy Duck, and others.

Speaker #3: These park enhancements are aimed at expanding our addressable audience and complementing the park's core thrill business. At Kings Island, our new Phantom Theater Experience blends immersive storytelling animatronics and multi-sensory effects to create a highly engaging indoor attraction.

John Reilly: These park enhancements are aimed at expanding our addressable audience and complementing the park's core thrill business. At Kings Island, our new Phantom Theater experience blends immersive storytelling, animatronics, and multi-sensory effects to create a highly engaging indoor attraction. Earlier this week, we announced plans to expand the entertainment offerings at 3 parks, including a reimagined lineup of summertime shows at Kings Dominion and the return of Holiday in the Park at Six Flags Great Adventure and Six Flags Over Georgia. These are strategic decisions based on thorough analysis and consumer research. Strategically, these types of offerings broaden our reach. They allow us to attract guests who may not typically visit during our traditional operating season while reinforcing the value of our season pass and membership programs by extending the number of meaningful use opportunities throughout the year.

Speaker #3: And earlier this week, we announced plans to expand the entertainment offerings at three parks, including a reimagined lineup of summertime shows at King's Dominion, and the return of Holiday in the Park at Six Flags Great Adventure and Six Flags Over Georgia.

Speaker #3: These are strategic decisions based on thorough analysis and consumer research. Strategically, these types of offerings broaden our reach. They allow us to attract guests who may not typically visit during our traditional operating season, while reinforcing the value of our season pass and membership programs by extending the number of meaningful use opportunities throughout the year.

Speaker #3: As our seasonal parks have begun to open, we're encouraged by the positive trends we're seeing in both consumer demand and operational execution. While we are still early in the season, the momentum we are building reflects the actions we've taken across pricing, product design, and park-level execution.

John Reilly: As our seasonal parks have begun to open, we're encouraged by the positive trends we're seeing in both consumer demand and operational execution. While we are still early in the season, the momentum we are building reflects the actions we've taken across pricing, product design, and park-level execution. As we move through the year, we're mindful of several dynamics, including more competitive comparisons related to last year's marketing activity, promotional cadence, and early cost synergy benefits. These are factors we understand well and have planned for, and they are embedded in how we are managing the business going forward. Against this backdrop, we remain focused on disciplined execution. We believe the underlying improvements we've made across demand generation, monetization, and cost control position us well to navigate these dynamics and continue building momentum through the balance of the season.

Speaker #3: As we move through the year, we're mindful of several dynamics including more competitive comparisons related to last year's marketing activity, promotional cadence, and early cost synergy benefits.

Speaker #3: These are factors we understand well and have planned for, and they are embedded in how we are managing the business going forward. Against this backdrop, we remain focused on disciplined execution, we believe the underlying improvements we've made across demand generation, monetization, and cost control position us well to navigate these dynamics and continue building momentum through the balance of the season.

Speaker #3: More importantly, we believe these actions are strengthening the foundation of the business in a way that supports sustainable growth, margin expansion, and long-term value creation.

John Reilly: More importantly, we believe these actions are strengthening the foundation of the business in a way that supports sustainable growth, margin expansion, and long-term value creation. Operator, that concludes our prepared remarks. Dave and I are ready for questions.

Speaker #3: Operator, that concludes our prepared remarks, Dave and I are ready for questions.

Speaker #1: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue.

Operator: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening via speakerphone in your device, please pick up your handset to ensure that your phone is not on mute when asking your question. Again, press star 1 to join the queue. Our first question comes from the line of Ben Chaiken with Mizuho. Your line is open.

Speaker #1: If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via speakerphone in your device, please pick up your handset to ensure that your phone is not on mute when asking your question.

Speaker #1: Again, press star one to join the queue. And our first question comes from the line of Ben Chaykin with Mizuo. Your line is open.

Ben Chaiken: Hey, good morning. Thanks for taking my question. Brian, you know, best of luck. It's been great. On the operating day strategy, the operating days year-to-date down year-over-year, I would imagine that's part of the strategy to help control costs. I guess, how do you think about operating days for the remainder of the year and other opportunities to control costs? One quick follow-up. Thanks.

Speaker #5: Hey, good morning. Thanks for taking my question. And Brian, best of luck. It's been great. On the operating day strategy, the operating days year to date down year over year, I would imagine part of the strategy that's part of the strategy to help control costs.

Speaker #5: I guess, how do you think about operating days for the remainder of the year and other opportunities to control costs? And then one quick follow-up.

Speaker #5: Thanks.

Speaker #6: Sure. Ben, this is John. And I'll start out here. So we approach this issue market by market. And some of the efficiency we saw in January benefited us on the cost side, and then we were pleased with the results the attendance per day as we talked about as we talked about earlier.

John Reilly: Sure. Ben, this is John, I'll start out here. We approach this issue market by market, some of the efficiency we saw in January benefited us on the cost side, we were pleased with the results, the attendance per day, as we talked about earlier. We'll approach this with agility as we go forward. Even in Q1, for example, we were adding days in Mexico City while we were adjusting the other way for some of the parks. Part of that dynamic in Q1 is the loss of the winter events just to carry over the 1st week in January.

Speaker #6: So we'll approach this with agility as we go forward. And even in Q1, for example, we were adding days in Mexico City while we were adjusting the other way for some of the parks.

Speaker #6: Part of that dynamic in the first quarter is the loss of the winter events just to carry over the first week in January. And then going forward, I'll turn this over to Dave, and he has the numbers for you for the year to go.

John Reilly: Going forward, I'll turn this over to Dave, and he has the numbers for you for the year to go.

Speaker #5: Morning, Ben. This is Dave. So you read the 24-day reduction in Q1. We expect to remove another 16 days in Q2, and then add 60 days in the balance of the year.

Dave Hoffman: Morning, Ben. This is Dave. You read the 24-day reduction in Q1. We expect to remove another 16 days in Q2 and then add 60 days in the balance of the year. Overall, we'd expect to add 20 days to the calendar. You know that, you know, that is subject to change as we get deeper into the year, but that's what the plan is.

Speaker #5: So overall, we'd expect to add 20 days to the calendar. You know that that is subject to changes. We get deeper into the year, but that's what the plan is.

Speaker #4: Okay. That's very helpful. And then just one question on kind of the one, two, and the year to date. I know you mentioned the prepared remarks that Easter I believe you said was a benefit to one queue.

Ben Chaiken: Okay. That's very helpful. Just one question on kind of the Q1, Q2 in the year to date. I know you mentioned in the prepared remarks that Easter, I believe you said, was a benefit to Q1. Stepping back and thinking historically, I would imagine that Easter being earlier was a marginal headwind to the year to date attendance numbers, just given the seasonality around park openings. I guess, is that correct? Like that logic. If so, how much give up to kind of like have a ballpark or a round number of what that impact was on a year to date standpoint, recognizing that you said it was a benefit to Q1 specifically. Thanks.

Speaker #4: I think just stepping back and thinking historically, I would imagine that Easter being earlier was a marginal headwind to the year to date attendance numbers just given the seasonality around park openings.

Speaker #4: I guess, is that correct? That logic? And then if so, how much do you have to kind of have a ballpark or a round number of what that impact was on a year to date standpoint, recognizing that you said it was a benefit to one queue specifically?

Speaker #4: Thanks.

Speaker #5: Yeah. We I don't know that we would characterize the timing of it as a headwind at all. I think it can be a headwind when it's very early, like in March.

John Reilly: Yeah. We don't. We don't know that we would characterize the timing of it as a headwind at all. I think it can be a headwind when it's very early, like in March. You know, it just happened to be very late in 2025, so the April comparisons give us, you know, give us comfort that we went through the March plus April comps favorably.

Speaker #5: But it just happened to be very late in 2025, so the April comparison. Give us comfort that we navigated through the March-plus-April comps favorably.

Speaker #4: Understood. Thank you.

James Hardiman: Understood. Thank you.

Speaker #1: Next question comes from the line of Steve Wysinski with Stifel. Your line is open.

Operator: Next question comes from the line of Steve Wieczynski with Stifel. Your line is open.

Speaker #7: Hey, guys. Good morning. So John, I want to ask about the cost structure. I mean, that was a pretty big surprise in the quarter.

Steve Wieczynski: Yeah. Hey, guys. Good morning. John, wanna ask about the cost structure. I mean, that was a pretty big surprise in the quarter. You know, look, I understand there are gives and takes in terms of year-over-year comparability. You know, wondering if you can help us think about the longer term margin opportunity in terms of what you kinda see as you, as you work your way into that job, John. You know, I would say especially now with some of that, you know, the lower margin parks removed from the portfolio.

Speaker #7: And look, I understand there are gives and takes in terms of year-over-year comparability. But wondering if you can help us think about the longer-term margin opportunity in terms of what you kind of see as you work your way into that job, John.

Speaker #7: I would say, especially now, with some of the lower-margin parks removed from the portfolio.

Speaker #5: Yeah. Thanks, Steve. So the cost work that we've been able to execute on is part of a plan that we've implemented in the company, and we have various levers including organizational changes in our corporate offices.

John Reilly: Thanks, Steve. The cost work that we've been able to execute on is part of a plan that we've implemented in the company. We have various levers, including organizational changes in our corporate offices, in Charlotte and in Arlington. We've made changes there while supplementing the parks. That's 1 key lever. We did benefit somewhat from changes that were made in 2025, in Q1. We have since executed other changes, as I said, reducing the overhead centrally and increasing the resources at the park level for a net reduction. We see considerable opportunity on the procurement front going forward. We've engaged in calls and negotiations with our top 75 vendors.

Speaker #5: In Charlotte and in Arlington, we've made changes there while supplementing the parks. That's one key lever. We did benefit somewhat from changes that were made in '25 in Q1.

Speaker #5: And then we have since executed other changes, as I said, reducing the overhead of centrally and increasing the resources at the park level for a net reduction.

Speaker #5: We see considerable opportunity on the procurement front going forward. We've engaged in calls and negotiations with our top 75 vendors and then we have begun outreach to the next 400 vendors.

John Reilly: We have begun outreach to the next 400 vendors to really remind them of the scale of what we offer as North America's largest regional operator, the benefit of working with us on our contracts, and asking them for help and efficiencies. The early returns have been encouraging, but we believe we have a lot of opportunity to mine on the procurement front. You know, there's a number of other initiatives we talked on the last quarter about automation and efficiency and ideas from the field. We are executing on those ideas now as well. That should yield cost savings going forward.

Speaker #5: To really remind them of the scale of what we offer as North America's largest regional operator, the benefit of working with us on our contracts, and asking them for help and efficiencies the early returns have been encouraging, but we have a lot of we see that we believe we have a lot of opportunity to mine on the procurement front.

Speaker #5: And then there's a number of other initiatives we talked on the last quarter about automation and efficiency and ideas from the field. We are executing on those ideas now as well that should yield cost savings going forward.

John Reilly: I think also the structure where we have park presidents now is gonna help accelerate the impact of those kinds of initiatives. Then to conclude, I would just go back up to something that we also said last quarter. Look, in 2025, we finished at 27% EBITDA margin. Clearly it was a difficult year. To have the scale that we have and to be at 27%, we've said before, is not something that we accept, and we're working hard to improve upon it. You can see the comps in the industry, but, you know, certainly in the 30% ranges, 30%+ ranges it's proven that regional operators can execute in that space. We see opportunity. We're not gonna put a number on it.

Speaker #5: And I think also the structure where we have park presidents now is going to help accelerate the impact of those kinds of initiatives. And then to conclude, I would just go back up to something that we also said last quarter.

Speaker #5: Look in 2025, we finished at 27% EBITDA margin. Clearly, it was a difficult year, but to have the scale that we have and to be at 27%, we said before, is not something that we accept and we're working hard to improve upon it.

Speaker #5: And you can see the comps in the industry, but certainly in the 30% ranges, 30-plus percent ranges are it's proven that regional operators can execute in that space.

Speaker #5: So we see opportunity. We're not going to put a number on it, but we're unhappy with 27%. And we have a plan to improve it over time.

John Reilly: What we're unhappy with 27%, and we have a plan to improve it over time.

Speaker #7: Okay. Thanks for that, John. And then the second question I want to ask about the entire park portfolio at this point. I mean, obviously, you guys have sold a number of parks over the past couple of months.

Steve Wieczynski: Okay. Thanks for that, John. The second question, I want to ask about the, you know, the entire park portfolio at this point. I mean, obviously you guys have sold a number of parks over the past couple of months. I'm wondering, as you kind of look across the portfolio, you know, at this point, you know, John, if you see other opportunities to, you know, whether it's sell or shut down underperforming parks, you know, then maybe help us think about what, in your mind, the optimal number of parks, you know, is eventually going to look like over the longer term.

Speaker #7: And I'm wondering, as you kind of look across the portfolio, at this point, John, if you see other opportunities to whether it's sell or shut down underperforming parks and then maybe help us think about what in your mind the optimal number of parks is eventually going to look like over the longer term.

Speaker #5: Yeah. Thanks. So we executed on what we said we would, which is the sale of six parks that have been closed in the US.

John Reilly: Yeah, thanks. We executed on what we said we would, which is the sale of 6 parks that have been closed in the US that were some of our smaller parks and, you know, then we have Montreal that we expect to close in Q2. We've executed on what we said. The first thing I think it's important to say that we've said to our consumers and our pass members and our prospective visitors is that we have no other plans in 2026. If you're buying a pass, if you're thinking about a pass, the portfolio is the portfolio, and we're focused on the summer and execution. I think that's a very important message for people who wanna come and experience the summer in our parks.

Speaker #5: That were some of our smaller parks and then we have Montreal that we expect to close in the second quarter. So we've executed on what we said.

Speaker #5: The first thing I think is important to say that we've said to our consumers and our past members and our prospective visitors is that we have no other plans in 2026.

Speaker #5: If you're buying a pass, if you're thinking about a pass, the portfolio is the portfolio. And we're focused on the summer and execution. I think that's a very important message for people who want to come and experience the summer in our parks.

John Reilly: That said, we are seeing the benefits of focus since the disposal of the 6 parks and the pending sale of Montreal. We're seeing the benefits of focus in our strategy, and we're really focused on execution, on demand generation, on pricing, and operational execution. The more we can focus that on the highest yield parks, the biggest parks, the better off we'll be. We'll approach this with flexibility, and we'll be willing to look at it again in the future.

Speaker #5: That said, we are seeing the benefits of focus since the disposal of the six parks and the pending sale of Montreal. We're seeing the benefits of focus in our strategy.

Speaker #5: And we're really focused on execution, on demand generation, on pricing, and operational execution. And the more we can focus that on the highest-yield parks, the biggest parks, the better off we'll be.

Speaker #5: So we'll approach this with flexibility and we'll be willing to look at it again in the future.

Speaker #7: Okay. Great. Thanks, guys. Appreciate it.

Steve Wieczynski: Okay. Great. Thanks, guys. Appreciate it.

Speaker #1: Next question comes from the line of James Hardiman with Citi. Your line is open.

Operator: Next question comes from the line of James Hardiman with Citi. Your line is open.

Speaker #8: Hey, good morning. Thanks for taking my questions. I wanted to start out by saying, Brian, it's been a pleasure working with you and learning from you through the years.

James Hardiman: Hey, good morning. Thanks for taking my questions. Wanted to start out by saying, Brian, it's been a pleasure working with you and learning from you through the years. Wanna say you'll be missed, and good luck with the next chapter.

Speaker #8: I want to say you'll be missed and good luck with the next chapter.

Speaker #5: Thanks, James.

John Reilly: Thanks, James.

John Reilly: Sure thing. Following up on sort of the previous line of questioning, the slimmed down portfolio looks like from some of the disclosures here, you're losing about 10% to 11% of attendance, only about 6% of EBITDA. Maybe help us think through the cash flow implications of that slimmed down portfolio, both quantitatively, if you can give us sort of updated numbers in terms of CapEx and interest and taxes. Qualitatively, right? That renewed focus on the parts that really move the needle. I'm assuming you can now dedicate more of the CapEx budgets to what's left and hopefully what could get sort of those incremental returns and ideally drive incremental upside from what's left. But maybe walk us through some of those items.

Speaker #8: So sure thing. And then so following up on sort of the previous line of questioning, the slimmed-down portfolio, looks like from some of the disclosures here, you're losing about 10 to 11 percent of attendance, only about 6% of EBITDA.

Speaker #8: Maybe help us think through the cash flow implications of that slimmed-down portfolio both quantitatively, if you can give us sort of updated numbers in terms of CAPEX and interest and taxes, but then qualitatively, right, that renewed focus on the parks that really move the needle?

Speaker #8: I'm assuming you can now dedicate more of the CAPEX budgets to what's left and hopefully what could get sort of those incremental returns and ideally drive incremental upside from what's left.

Speaker #8: But maybe walk us through some of those items.

Speaker #5: Yeah. So James, this is John. We did provide a table in the earnings release that walks you through that quarter by quarter for the year.

John Reilly: James, this is John. We did provide a table in the earnings release that walks you through that quarter by quarter for the year. The revenue, the EBITDA impact quarter by quarter, because we know that's something that'll be important as you model our performance. You're correct, and I think we had it on the earlier question too, that it can help drive margin improvement because these are generally lower margin parks than our higher scaled parks. Additionally, with CapEx allocation, the way you characterized it is, I think, generally accurate that this gives us more flexibility with CapEx toward parks with higher returns. We see it in the same way.

Speaker #5: The revenue, the EBITDA impact quarter by quarter because we know that's something that'll be important as you model our performance. You're correct, and I think we had it on the earlier question too, that it can help drive margin improvement because these are generally lower-margin parks.

Speaker #5: Then our higher-scaled parks. Additionally, with CAPEX allocation, the way you characterized it is, I think, generally accurate that this gives us more flexibility with CAPEX toward parks with higher returns.

Speaker #5: So we see it in the same way. If there's a specific, I guess, cash flow or tax question, I think Dave can take that.

John Reilly: If there's a specific, I guess, cash flow or tax question, I think Dave can take that.

Speaker #8: I guess I would just reiterate it's really more about reallocating to higher-return parks. So just kind of calling out some of the numbers, James.

Dave Hoffman: I guess I would just reiterate, you know, it's really more about reallocating to higher return parks. Just kind of calling out some of the numbers, James Hardiman. We're still expecting $425 to 450 million of CapEx for the year. The Q1 CapEx was a little bit lighter than that, just given the cadence of some of the projects, but we still expect to get within that range. Cash interest is still expected to be $300 to 320 million, and that includes the impact of the refinancing, of course. We expect cash taxes to be somewhere in the neighborhood of $25 to 30 million for the year, and that's before consideration of a significant income tax refund that we claimed on the most recent tax return.

Speaker #8: We're still expecting $425 to $450 million of CAPEX for the year. The first quarter CAPEX was a little bit lighter than that, just given the cadence of some of the projects, but we still expect to get within that range.

Speaker #8: Cash interest is still expected to be 300 to 320 million. And that includes the impact of the refinancing, of course. And we expect cash taxes to be somewhere in the neighborhood of 25 to 30 million for the year.

Speaker #8: And that's before consideration of a significant income tax refund that we claimed on the most recent tax return.

Speaker #7: Got it. That's all really helpful color. And then I guess specifically, as we think about the Q2 opportunity looking back to last year, that's really when sort of the wheels fell off.

James Hardiman: Got it. That's all really helpful color. I guess specifically as we think about the Q2 opportunity, you know, looking back to last year, that's really when sort of the wheels fell off. Obviously on the attendance side, you guys had impossibly difficult weather as we think about late May and into June. Also on the cost side, if memory serves, you really leaned into marketing with a significant amount of discretionary spending in the Q2. Is there a way to think about once we lap those two items? Obviously, we won't really know what the weather is until we get there, but is there a way to think about I don't know, operating costs year over year in the Q2 or as a percentage of sales?

Speaker #7: Obviously, on the attendance side, you guys had, and possibly difficult weather as we think about late May and into June. But also on the cost side, if memory serves, you really leaned into marketing with a significant amount of discretionary spending in the second quarter.

Speaker #7: Is there a way to think about once we lap those two items? Obviously, we won't really know what the weather is until we get there.

Speaker #7: But is there a way to think about, I don't know, operating costs year over year in the second quarter or as a percentage of sales?

James Hardiman: However you guys think about it, you know, what's the cost opportunity in Q2? Where would you like to see the active pass base heading into the second half? Obviously that was another big part of why the H2 of last year was such a struggle, just being so far behind in active pass base. Thanks.

Speaker #7: However you guys think about it, what's the cost opportunity in Q2? And where would you like to see the active pass base heading into the second half?

Speaker #7: Obviously, that was another big part of why the second half of last year was such a struggle, just being so far behind in active pass base.

Speaker #7: Thanks.

Speaker #5: Sure. James, this is John. And I'll take that. So although we won't we aren't going to guide a cost number for Q2 or for the remainder of the year, I'll make just a couple of points.

John Reilly: Sure. James, this is John, and I'll take that. Although we won't, we aren't going to guide a cost number for Q2 or for remainder of year, I'll make just a couple of points. Number 1, as we, as we mentioned in the context of Q1, we have a cost savings program and efficiency program underway. I've been very encouraged by the receptivity of our team, by their execution, by their willingness to embrace targets with guardrails in specific areas. We're executing on that. We will continue to execute in Q2.

Speaker #5: Number one, as we mentioned in the context of Q1, we have a cost savings program and efficiency program underway. I've been very encouraged by the receptivity of our team, by their execution.

Speaker #5: By their willingness to embrace targets with guardrails and specific areas. And so we're executing on that. We will continue to execute in Q2. On the comments that we made at the beginning of the call, to your marketing question for the second part: yes, there was a big spend in marketing last year.

John Reilly: On the comments that we made at the beginning of the call, to your marketing question for the second part is, yes, there was a big spend in marketing last year, and in Q2, and we've listed that as one of the factors that we need to sort out, and we need to think about the comps going into Q2. It will be agile in terms of our approach to that. The other thing I would mention is, we do have some pressure in maintenance costs, and I expect from the reviews that we're doing at a park level, we expect some maintenance cost pressure in Q2.

Speaker #5: And in Q2, and we've listed that as one of the factors that we need to sort about, we need to sort out, and we need to think about the comps going into Q2.

Speaker #5: So it will be agile in terms of our approach to that. The other thing I would mention is we do have some pressure in maintenance costs.

Speaker #5: And I expect from the reviews that we're doing at a park level, we expect some maintenance cost pressure in Q2. And it's important spend for us because we're committed to do a better job with our ride up-time and with the number of trains and cars available on all of our rides.

John Reilly: It's important spend for us because we're committed to do a better job with our ride uptime and with the number of trains and cars available on all of our rides. That's something that when we see a need, we're gonna execute against it. I would mention the marketing and the maintenance that you mentioned are probably good factors to think about. If we think about the summer and the active pass base, we continue to be encouraged by this Gold Pass, this regional pass that has been rolled out and really accelerated our sales since the rollout. People are really enjoying the benefit of being able to cross-visit parks.

Speaker #5: So that's something that we're going to when we see a need, we're going to execute against it. So I would mention the marketing and the maintenance that you mentioned are probably good factors to think about.

Speaker #5: As we think about the summer and the active pass base, we continue to be encouraged by this gold pass, this regional pass that has been rolled out and really accelerated our sales.

Speaker #5: Since the rollout, people are really enjoying the benefit of being able to cross-visit parks. That has appealed for the sale, and then also for additional attendance within regions like Texas or the East Coast, or within California.

John Reilly: That has appeal for the sale and also for additional attendance within regions like Texas, the East Coast, or within California. We're encouraged by that. As we think about the summer, we're gonna continue focusing on the regional pass. We are also seeing a benefit from the reintroduction of membership and the higher renewal rates that we see on that, and that's part of the reason for the increased pass base that we talked about.

Speaker #5: So we're encouraged by that. As we think about the summer, we're going to continue focusing on the regional pass. We're also seeing a benefit from the reintroduction of membership and the higher renewal rates that we see on that.

Speaker #5: And that's part of the reason for the increased pass base that we talked about.

Speaker #7: That's really helpful color. Thanks, John, and good luck from here.

James Hardiman: That's really helpful color. Thanks, John, and good luck from here.

Speaker #5: Thank you.

John Reilly: Thank you.

Speaker #1: Next question comes from the line of Patrick's calls with Jury Securities. Your line is open.

Operator: Next question comes from the line of Patrick Scholes with Truist Securities. Your line is open.

Speaker #9: Great. Thank you. Good morning, everyone. Question for you regarding pass sales. When I look at the comparable 1Q earnings release from a year ago, and I'm just trying to match things up sort of apple to apples to figure out how they're going.

Patrick Scholes: Great. Thank you. Good morning, everyone. Question for you regarding pass sales. When I look at the comparable Q1 earnings release from a year ago, and I'm just trying to match things up sort of apples to apples to figure out how they're going. The KPI metric in a year ago press release was that the 5-week period ending 4 May 2025, season pass sales were up 6%. I don't think when you say in this most recent quarter, active pass base up 6%, that's an apples to apples. Do you have an apples to apples metric that we can compare to that 5-week period that you said a year ago to help us understand how?

Speaker #9: The KPR metric in a year ago press release was that the five-week period ending May 4th, 2025, season pass sales were up 6%. I don't think when you say in this most recent quarter, active pass base up 6%, that's an apples-to-apples.

Speaker #9: Do you have an apples-to-apples metric that we can compare to that five-week period that you said a year ago? How to help us understand how recent pass sales are trending?

John Reilly: Yeah

Patrick Scholes: we see pass sales are trending? Thank you.

Speaker #9: Thank you. And I apologize if it oh, go ahead. Sorry.

John Reilly: Yeah.

Patrick Scholes: I apologize.

John Reilly: Yeah.

Patrick Scholes: Oh, go ahead, sorry.

Speaker #5: Yeah. We don't have that prepared, a five-week view on that for you. But what I would say is back to the issue back to the positive impact that we're seeing from both membership and the regional pass.

John Reilly: Yeah. We don't have that prepared, that like a 5-week view on that for you. What I would say is back to the issue, back to the positive impact that we're seeing from both membership and the regional pass, the membership has a higher renewal rate, and that has an effect in growing our pass base. The more we lap the reintroduction, last year of membership, we should see more people staying in the fold. That's a combined factor along with the sales rate on season passes.

Speaker #5: The membership has a higher renewal rate and that has an effect in growing our pass base. So the more we lap the reintroduction, last year, of membership, we should see more people staying in the fold.

Speaker #5: And so that's a combined factor along with the sales rate on season passes.

Speaker #9: Okay. And then going back to CapEx, and correct me if I'm wrong, I think you said this year not so much change. But how do we think about a run rate here?

Patrick Scholes: Okay. Going back to CapEx, correct me if I'm wrong. I think you said, you know, this year not so much change, but how do we think about like a run rate here? You know, I think you're running like $400 million, you know, after this year once those passes, you know, you're not, Excuse me. Those parks are no longer being operated or being used by your pass members. You know, how do we think about sort of the run rate again after this year CapEx? Thank you.

Speaker #9: I think you're running like 400 million. After this year, once those passes, you're not or excuse me, those parks are no longer being operated or being used by your pass members.

Speaker #9: How do we think about sort of the run rate again after this year, CapEx? Thank you.

Speaker #5: Yeah. So in terms of the pass, I think we mentioned we've guided to 425. It could be at 450 for this year. We're not going to guide long range on it, but the visibility we have for now is in that 425 range.

John Reilly: In terms of the pass, I think we mentioned we've guided to, you know, $425. It could be at $450 for this year. We're not gonna guide long range on it, but the visibility we have for now is in that $425 range. As Dave mentioned before, it would be a reprioritization, reallocation of the CapEx that would have gone to the parks that were sold, to parks with higher and better returns.

Speaker #5: And as Dave mentioned before, it would be reprioritization, reallocation of the CapEx that would have gone to the parks that were sold to parks with higher and better returns.

Speaker #9: Okay. That makes sense. Thank you.

Patrick Scholes: Okay. That makes sense. Thank you.

Speaker #1: Next question comes from the line of Lizzie Dove with Goldman Sachs. Your line is open.

Operator: Next question comes from the line of Lizzie Dove with Goldman Sachs. Your line is open.

Speaker #10: Hi. Good morning. Thanks for taking the question. I want to echo Brian. It's been great to work with you. Really appreciated your help. All the years.

Lizzie Dove: Hi. Good morning. Thanks for taking the question. I wanna echo Brian. It's been great to work with you. Really appreciated your help, all the years. Good luck with the next chapter. In terms of I'd love to just touch on the consumer for a second. You know, there's been a lot of cross currents for the last few months. You know, we've got higher gas prices for the consumer, yet your per cap trends have looked really good the last 2 quarters, maybe some of that's, you know, shoulder season comparability. Maybe it would be great just to hear from you what you're seeing there on the ground, consumer-wise.

Speaker #10: So good luck with the next chapter. In terms of I'd love to just touch on the consumer for a second. There's been a lot of cross-currents for the last few months.

Speaker #10: We've got higher gas prices for the consumer. Yet your per cap trends have looked really good the last two quarters, but maybe some of that's shoulder season comparability.

Speaker #10: So maybe it would be great just to hear from you what you're seeing there on the ground consumer-wise.

Speaker #5: Yeah. This is John Lizzie. Thanks for the question. We're focused on what we can control, the levers in the business. And for us, we're not really able at this point to attribute performance trends to those kind of external factors.

John Reilly: This is John, Lizzie. Thanks for the question. We're focused on what we can control, the levers in the business. You know, for us, we're not really able at this point to attribute performance trends to those kind of external factors. The reasoning is we think there's a lot of opportunity in the business to execute. The work that we mentioned before that we're doing in our commercial area with revenue management, with pricing, with upgrading our visitors to higher pass products that have a lot more value to them, that's where we see the real opportunity. Our belief is to execute well against that, increase our capabilities going forward in that area.

Speaker #5: And the reasoning is we think there's a lot of opportunity in the business to execute. And so the work that we mentioned before that we're doing in our commercial area with revenue management, with pricing, with upgrading our visitors to higher pass products that have a lot more value to them, that's where we see the real opportunity.

Speaker #5: And our belief is to execute well against that, increase our capabilities going forward in that area. That's some of the reason for the marketing changes that we've mentioned today.

John Reilly: That's some of the reason for the marketing changes that we've mentioned today, that the opportunity there is a good one for us. Our focus is execution, focusing on what we can change, what we can do, and we've got our heads in the business. Of course, we'll monitor external factors, and we'll be agile, and we have other levers in the business that we can go after if we need to. Our focus is on what we've laid out so far.

Speaker #5: That the opportunity there is a good one for us. So our focus is execution. Focusing on what we can change, what we can do.

Speaker #5: And we've got our heads in the business. And of course, we'll monitor external factors and we'll be agile. And we have other levers in the business that we can go after if we need to.

Speaker #5: But our focus is on what we've laid out so far.

Speaker #10: Got it. And then appreciate you're not giving guidance at this point for the year, but high level, it'd be great to just get a refresh on how you're thinking about the kind of building blocks for this year and in terms of particularly the attendance recapture opportunity.

Lizzie Dove: Got it. Appreciate you're not giving guidance at this point for the year. High level, it would be great to just get a refresh on how you're thinking about the kind of building blocks for this year and in terms of particularly like the attendance recapture opportunity, and how you're kind of balancing that in terms of per caps.

Speaker #10: And how you're kind of balancing that in terms of per caps.

Speaker #5: So yes, as demand generation is a real key for us. And we want profitable attendance in the parks. There's excess capacity in the business to grow attendance, but we want to do it profitably.

John Reilly: Yes. As demand generation is a real key for us, and we want profitable attendance in the parks. You know, there's excess capacity in the business to grow attendance, but we wanna do it profitably. The initiatives we have underway thus far are working in that area. The regional pass with the access to parks, the increase in park cross park visitation, the appeal that has to sales, that's been a positive for demand generation. We believe there's further opportunity there and the leadership structure that we announced with having someone dedicated both to demand generation and our brand on the CMO side and then our commercial operation, which is conversion price and yielding supporting that as well.

Speaker #5: And the initiatives we have underway, thus far, are working in that area. The regional pass with the access to parks, the increase in park cross-park visitation, the appeal that has to sales that's been a positive for demand generation.

Speaker #5: We believe there's further opportunity there. And the leadership structure that we announced with the having someone dedicated both to demand generation in our brand on the CMO side and then our commercial operation, which is conversion, price, and yielding, supporting that as well.

Speaker #5: So we demand generation is important to us going forward as is pricing, which will thus far we're seeing a good results there due to the trade-up in the past years.

John Reilly: Demand generation is important to us going forward, as is pricing, which, you know, thus far we're seeing a good results there due to the trade up in the past years.

Speaker #10: Thank you.

Lizzie Dove: Thank you.

Speaker #1: Next question comes from the line of David Katz with Jefferies. Your line is open.

Operator: Next question comes from the line of David Katz with Jefferies. Your line is open.

David Katz: Thanks for taking my question. Good morning, everybody. Brian, appreciate all the time and attention and all the best. I wanted to dig just a little bit deeper into the regional pass, which is in, you know, interesting in a good way, I mean, to ask. You know, what data you've looked at or what trends you looked at, and can we potentially interpret this as, you know, a step in the direction, you know, of a more specific set of passes, you know, across the system over time?

Speaker #11: question. Good morning, everybody. Brian, appreciate all the time and attention. And all the best. I wanted to take just a little bit deeper into the regional pass, which is interesting in a good way.

Speaker #11: I mean, to ask. What data you've looked at or what trends you've looked at and can we potentially interpret this as a step in the direction of a more specific set of passes across the system over time?

Speaker #5: Yeah. This is John. So in terms of the regional pass, the program in the future, I think what I would say is the regional pass we have now available at what we're calling the gold level across the parks there's considerable opportunity to further mine that.

John Reilly: Yeah, this is John. In terms of the regional pass, the program in the future, I think what I would say is the regional pass we have now available at what we're calling the Gold level across the parks, there's considerable opportunity to further mine that. We're also developing our membership program and other things. This has just been introduced and we believe it's an opportunity to continue to mine going forward. When you think about it, we're seeing cross-park visitation much higher. If you look at the appeal of that, for example, a guest in San Antonio who's a pass member, a Gold Pass member at Fiesta Texas, can go ride Tormenta in Arlington this summer.

Speaker #5: And we're also developing our membership program and other things. But the this is just been introduced. And we believe it's an opportunity to continue to mine going forward.

Speaker #5: When you think about it, we're seeing cross-park visitation much higher. And if you look at the appeal of that, for example, a guest in San Antonio who's a past member, a gold pass member at Fiesta, Texas, can go ride Tormenta in Arlington this summer.

Speaker #5: The same thing with a pass member at Knott's can go see the new Looney Tunes area at Magic Mountain. And that has a tremendous appeal.

John Reilly: The same thing with a pass member at Knott's can go see the new Looney Tunes area at Magic Mountain. That has a tremendous appeal. There are implications for that in how we think about our catchment areas, our media spend, our pricing in other areas as we go forward. Of course, we're gonna mine that, we're really in the early stages and see considerable opportunity to continue to optimize that.

Speaker #5: There are implications for that in how we think about our catchment areas, our media spend, our pricing, and other areas as we go forward.

Speaker #5: And of course, we're going to mine that, but we're really in the early stages. And see considerable opportunity to continue to optimize that.

Speaker #11: Okay, thank you. And one quick follow-up. Regarding the park presidents, can you just provide a little more color on those? Were those people who had sort of worked with the parks before, or people within the parks who were elevated?

David Katz: Okay. Thank you. One quick follow-up. The park presidents, can you just provide a little more color on those? Were those, you know, people who had sort of worked with the parks before? You know, people within the parks who were elevated, you know, did they come from other parks? I'm just curious, and I imagine the answer is some version of all of the above, but I'm curious, just a little more color on that.

Speaker #11: Did they come from other parks? I'm just curious. And I imagine the answer is some version of all of the above. But I'm curious just a little more color on that.

John Reilly: You're right. It's all of the above. We're really pleased with the talent level we have there at the parks with park presidents and also our parks with park managers. It's one of the things that I've found to be very encouraging as we travel around, we visit the parks, and we work with them on their plans. We have people who are committed, entrepreneurial, and understand the imperative of execution right now. In some parks, we have people who rejoined us. In some parks, we have people that have come over from a competitor. But in most cases, these were internal promotions and the talent level internally was very good to feed these promotions.

Speaker #5: You're right. It's all the above. We're really pleased with the talent level we have there at the parks with park presidents. And also our parks with park managers.

Speaker #5: It's one of the things that I found to be very encouraging as we travel around. We visit the parks. And we work with them on their plans.

Speaker #5: We have people who are committed entrepreneurial and understand the imperative of execution right now. So in some parks, we have people who rejoined us.

Speaker #5: In some parks, we have people that have come over from a competitor. But in most cases, these were internal promotions and the talent level internally was very good to feed these promotions.

Speaker #11: Thank you very much.

David Katz: Thank you very much.

Speaker #1: And again, if you would like to ask a question, press stars, then the number one on your telephone keypad. Our next question comes from the line of Arpin Kocharian with UBS.

Operator: Again, if you would like to ask a question, press star then the number 1 on your telephone keypad. Our next question comes from the line of Arpine Kocharyan with UBS. Your line is open.

Speaker #1: Your line is open.

Speaker #12: Hey, good morning. This is Rob Henry on for Arpin. I wanted just to go back to the past product. It seems like you might have kind of turned the corner there with units up 6%.

Ross Cenerentola: Good morning. This is Ross Cenerentola for Arpin. I wanted just to go back to the pass product. It seems like you might have kind of turned the corner there, with units up 6%. Can you just give any color on pricing and maybe mix shift that you're seeing within the pass product? Thanks.

Speaker #12: Can you just give any color on pricing and maybe mixed shifts that you're seeing within the past product?

John Reilly: If you look at the mix of the pass products, you know, we have the Silver Pass, we have the Gold, and then we have the Elite, and we have membership. As we've said, the real power we're seeing is a trade-up into Gold, but we also have people, trading up into the premium categories. As we see that, we're constantly monitoring and adjusting where we need to in terms of price or promotional strategy to optimize the distribution across those tiers. The real strength in the program right now, the power in the program right now is driven by two factors. One, the availability of visits to these sister parks that are nearby. We're seeing people are willing to drive and to visit.

Speaker #5: If you look at the mix of the past products, we have the silver pass. We have the gold. And then we have the elite.

Speaker #5: And we have membership. And we're, as we've said, the real power we're seeing is a trade-up into gold. But we also have people trading up into the premium categories.

Speaker #5: As we see that, we're constantly monitoring and adjusting where we need to in terms of price or promotional strategy to optimize the distribution across those tiers.

Speaker #5: But the real strength in the program right now, the power in the program right now, is driven by two factors. One, the availability of the visits to these sister parks that are nearby.

Speaker #5: We're seeing people are willing to drive and to visit. But secondly, the improvements we've seen because we have revenue management expertise embedded in the organization and the combination of the experts and the talent we have on our team, like Chris Meyering, whose promotion we announced this morning, they're really delivering in terms of the conversion the merchandising, the consideration, and the conversion on our website.

John Reilly: Secondly, the improvements we've seen because we have revenue management expertise embedded in the organization and the combination of the experts and the talent we have on our team, like Chris Meyering, whose promotion we announced this morning. They're really delivering in terms of the conversion, the merchandising, the consideration, and the conversion on our website. We're seeing improvement in our website performance along with the appeal of the product architecture.

Speaker #5: So we're seeing improvement in our website performance along with the appeal of the product architecture.

Speaker #12: That's really helpful color. And then just kind of as a follow-up, on the specified parks, it looks like it's a bit of a tailwind here in Q1 given that they're a bit of a drag on either side.

Ross Cenerentola: That's a really helpful color. Just kind of as a follow-up, you know, on the specified parts, it looks like it's a bit of a tailwind here in Q1, given that they're a bit of a drag on EBITDA. It seems like given kind of the table that you've laid out, you know, kind of the rest of the year might be bit of a headwind with the lost EBITDA there. Is that still kind of fair to think about in that way, or how should we consider that as we move forward?

Speaker #12: It seems like given kind of the table that you've laid out, kind of the rest of the year might be a bit of a headwind with the lost EBITDA there.

Speaker #12: And so is that still kind of fair to think about in that way? Or how should we consider that as we move forward?

John Reilly: That cost is included in the Q1 results, and we've mapped out the impact for you over the course of the year. The tailwind would presumably be in Q1 of 2027.

Speaker #5: That cost is included in the Q1 results. I mean, we've mapped out the impact for you over the course of the year. So the tailwind would presumably be in Q1 of 2027.

John Reilly: That cost is included in the Q1 results, and we've mapped out the impact for you over the course of the year. The tailwind would presumably be in Q1 of 2027.

Speaker #12: Okay. Great. Thank you.

Ross Cenerentola: Okay, good. Thank you.

Speaker #1: Next question comes from the line of Chris Woronka with Deutsche Bank. Your line is open.

Operator: Next question comes from the line of Chris Woronka with Deutsche Bank. Your line is open.

Chris Woronka: Good morning, guys. Brian, appreciate all the guidance and insights over the years. All the best. I was hoping we could maybe talk for a minute about marketing and, you know, I know that your plans are fluid, and they're long-term, and, you know, you're gonna adjust and adapt. John, maybe just a thought or two on kind of, you know, where you are this year versus where you think you can get to in terms of reach and effectiveness of some of the marketing changes. Things like going more social media and bringing in some, you know, some partners and some sponsors. Just, you know, like where you are in that process, and do we get more benefit this year or next year, do you think?

Speaker #13: Hey, good morning, guys. And Brian, appreciate all the guidance and insights over the years. So all the best. I was hoping we could maybe talk for a minute about marketing and I know that your plans are fluid and they're long-term.

Speaker #13: And you're going to adjust and adapt. But John, maybe just a thought or two on kind of where you are this year versus where you think you can get to in terms of reach and effectiveness of some of the marketing changes, things like going more social media and bringing in some partners and some sponsors, just where you are in that process and do we get more benefit this year, next year, do you think?

Speaker #5: Yeah. I would answer that by saying one, we've applied learnings from lessons that we identified from 2025, including how we were presenting our retail message; how we were marketing our passes; how we were merchandising them on the websites; and also in terms of our creative we've made big changes in our creative.

John Reilly: I would answer that by saying, one, we applied learnings from lessons that we identified from 2025, including how we were presenting our retail message, how we were marketing our passes, how we were merchandising them on the websites. Also in terms of our creative, we've made big changes in our creative. That said, this is the key growth lever for this company, at least in the near term, in terms of demand generation, in terms of evolving our brands. As you say, in terms of properly leveraging emerging channels to drive demand. That's precisely the reason that we're bringing Amy Martin Ziegenfuss on board to work to evolve our marketing program. We're in the early innings.

Speaker #5: That said, this is the key growth lever for this company at least in the near term in terms of demand generation, in terms of evolving our brands.

Speaker #5: And as you say, in terms of properly leveraging emerging channels to drive demand. And that's precisely the reason that we're bringing Amy Martin Zygnfuss on board to work to evolve our marketing program.

Speaker #5: We're in the early innings.

Speaker #13: Okay. Okay. That's great to hear, John. And just as a follow-up, we think about your properties. You've obviously gotten through a slug of non-core sales.

Chris Woronka: Okay. Okay. That's great to hear, John. Just as a follow-up, when we think about your properties, you've obviously gotten through a slug of non-core sales. You're working on some land parcels, it sounds like. Question's on hotels. You know, you have two, what I would think would be very core hotels at Knott's and Cedar Point, but then you have kind of a handful of other smaller hotels in the surrounding areas. Should we think about those as being core longer term or possibly not?

Speaker #13: You're working on some land parcels, it sounds like. But question is on hotels. You have two, what I would think would be very core hotels at Knott's and Cedar Point.

Speaker #13: But then you have kind of a handful of other smaller hotels in the surrounding areas. Should we think about those as being core longer-term or possibly not?

John Reilly: We like the synergy of the lodging business, especially in terms of bringing people in from drive markets. We have research that supports that even in regional parks, there's a market for people who wanna come in from a longer drive. The model that we have, as you said, at Cedar Point and Knott's Berry Farm is very powerful. The hotels are fantastic. They're updated, they're modern, and that's working for us, so we don't see any reason to walk back from the lodging programs that we have elsewhere.

Speaker #5: We like the synergy of the lodging business, especially in terms of bringing people in from drive markets. We have research that supports that, that even in regional parks, there's a market for people who want to come in from a longer drive.

Speaker #5: The model that we have, as you said, at Cedar Point and Knott's Berry Farm is very powerful. The hotels are fantastic. They're updated. They're modern.

Speaker #5: And that's working for us. So we don't see any reason to walk back from the lodging programs that we have elsewhere.

Speaker #13: Okay. Very good. Thanks, John.

Chris Woronka: Okay. Very good. Thanks, John.

Speaker #5: Thank you.

John Reilly: Thank you.

Speaker #1: And our last question today comes from Eric Wolff of Texas Capital Security. Your line is open.

Operator: Our last question today comes from Eric Wold of Texas Capital Securities. Your line is open.

Eric Wold: Thank you. Good morning. I guess two questions. The first kind of going back on the question a couple ago on pricing. I know you mentioned that kind of the pricing on the passes and daily is kind of dynamic and you're driving it based on demand. As you start the season, can you give us a sense of kind of what's embedded in kind of the pricing of the daily and pass prices versus last year to start the season?

Speaker #14: season, can you give us a sense of kind of what's embedded in kind of the pricing of the daily and pass prices versus last year?

Speaker #14: Just to start the season.

Speaker #5: So the pricing versus last year, we're a lot of the growth that we're seeing is from the tradeup in the tiers. And from the movement into membership because it's a higher yield product for us.

John Reilly: The pricing versus last year, we're, a lot of the growth that we're seeing is from the trade up in the tiers and from the movement into membership because it's a higher yield product for us. It's not necessarily an increase at the pass level. We really wanna bring people back into our parks. We're really focused on providing a good value, providing a suite of benefits that's compelling, like the regional pass. For that, as we said earlier, we wanna grow profitable attendance. We wanna grow profitable visitation to the parks, and that's the balance. The principal lift that we're seeing, Eric, is from the trade up within the tiers or to membership.

Speaker #5: So it's not necessarily an increase at the pass level. And we really want to bring people back into our parks. We're really focused on providing a good value, providing a suite of benefits that's compelling like the regional pass.

Speaker #5: And for that, as we said earlier, we want to grow profitable attendance. We want to grow profitable visitation to the parks. And that's the balance.

Speaker #5: But the principal lift that we're seeing, Eric, is from the tradeup within the tiers or the membership.

Speaker #14: Got it. And then as you kind of enter the core season, maybe give us a sense of the hiring environment you're seeing out there in terms of availability, wage rates compared to last year, and how that plays into your plans to staff appropriately with demand ramps.

Eric Wold: Got it. As you kinda enter this, the core season, maybe give us a sense of the hiring environment you're seeing out there in terms of, you know, availability, wage rates compared to last year and how that plays into your plans to staff, you know, appropriately as demand ramps.

Speaker #5: Yeah. Our team is doing an excellent job staffing the parks. As we move into Memorial Day weekend, our stats tell us where we need to be 90-plus percent of target.

John Reilly: Our team is doing an excellent job staffing the parks. As we move into Memorial Day weekend, our stats tell us where we need to be, you know, 90-plus percent of target. We don't see any significant headwinds in that area. Like many other things we've mentioned, we take an agile approach, and if there's 1 position, like lifeguards in 1 park, we make an adjustment, and we address that. We don't see any global issue.

Speaker #5: So we don't see any significant headwinds in that area. Like many other things we've mentioned, we take an agile approach. And if there's one position like lifeguards in one park, we make an adjustment and we address that.

Speaker #5: But we don't see any global issue.

Speaker #14: Thank you.

Eric Wold: Thank you.

Speaker #5: Thank you.

John Reilly: Thank you.

Speaker #1: That concludes the question and answer session. I'll now turn it over to Michael Russell for closing remarks.

Operator: That concludes the question-and-answer session. I'll now turn it over to Michael Russell for closing remarks.

Speaker #15: Hey, we appreciate you joining us today. Our next earnings call will be in August when we report our financial results for the 2026 second quarter.

Michael Russell: Hey, we appreciate you joining us today. Our next earnings call will be in August when we report our financial results for the 2026 Q2. That concludes our call today. That's right. Thank you, everyone.

Speaker #15: That concludes our call today, as Ray. Thank you, everyone.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.