ARLINGTON, Texas - Six Flags (NYSE:SIX) Entertainment Corporation (NYSE: SIX), a leader in regional theme parks, announced a fourth-quarter net loss of $22 million, or a loss per share of $0.27, underperforming analyst expectations of a $0.27 profit per share.
Despite the earnings miss, the company reported a revenue increase to $293 million, up 5% from the same quarter last year but slightly below the $297.97 million analyst consensus.
The revenue growth was attributed to a 6% rise in attendance, driven by heightened season pass and single-day ticket sales, especially during the company's Fall events. However, this was partially offset by a decrease in guest spending per capita, which fell by $0.96 compared to the previous year's quarter. The dip in spending per capita resulted from lower membership revenues due to the discontinuation of new membership sales in the prior year.
Selim Bassoul, President and CEO, highlighted the company's strategic progress, noting a 17% increase in guest spending per capita since 2021, successful cost management amidst inflation, and debt reduction. Bassoul also expressed optimism for 2024, citing strong early sales of 2024 passes and upcoming new rides and technology enhancements aimed at enhancing the guest experience and operational efficiency.
Despite the earnings shortfall, Six Flags' stock saw a modest premarket increase of 1.02%. The company's full-year results revealed a 5% revenue increase to $1,426 million and a net income of $39 million, contrasting with a net income of $101 million in the previous year. Adjusted EBITDA for the year remained stable at $462 million.
The company also reported a net loss of $22 million for the fourth quarter of 2023, compared to a net income of $10 million in the fourth quarter of 2022. This loss was driven by $15 million in merger-related transaction costs and increased cash operating costs due to higher attendance, investment in new entertainment, and inflationary pressures.
Six Flags' balance sheet showed $2,365 million in total reported debt and $78 million in cash or cash equivalents as of December 31, 2023. The company also mentioned the pending merger with Cedar Fair (NYSE:FUN), expected to close in the first half of 2024, subject to shareholder and regulatory approvals.
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