FUN Earning Date, Transcript Summary & Report

Merger Potential Realized: Meaningful progress in tapping the full potential of the merger, with stronger market response to new rides and attractions.

Guest Satisfaction and Cost Savings: Improving guest satisfaction ratings and executing plans for significant cost savings.

2025 Operating Plan Confidence: Confidence in the 2025 operating plan, which focuses on maximizing operating days in peak seasons and enhancing guest experience.

Strong Demand Indicators: Positive momentum in long lead indicators such as season pass sales and group bookings, indicating strong demand.

Resort Bookings Increase: Bookings at resort properties trended higher, up more than 10% compared to the previous year, showing consumer engagement.

Resilience in Entertainment Demand: No detectable change in guest behaviors despite broader market concerns, indicating resilience in demand for entertainment options.

Merger Cost Synergies Achievement: On track to achieve $120 million in merger cost synergies six months earlier than planned, with operating costs expected to be over 3% lower than combined 2024 actuals.

Cost Reduction Strategy: Corporate restructuring aimed at streamlining decision-making and reducing costs, with a projected reduction of over 10% in full-time headcount.

Strong Liquidity Position: Strong liquidity position with $62 million in cash and $179 million available under the revolving credit facility, providing financial stability.

Capital Expenditures Overview: Capital expenditures of $140 million in Q1, consistent with full-year expectations of $475 million to $500 million, supporting growth initiatives.

Challenging Q1 Operating Loss: Operating loss in Q1 was greater than the combined loss of legacy companies in 2024, indicating a challenging start to the year.

April Performance Shortfall: April results fell short of expectations due to cold and wet weather, impacting attendance and revenue.

Lower Than Expected Attendance: First quarter attendance and revenue were lower than expected, tracking closer to 5.5% of full year attendance and 6% of full year revenues, which is below the typical range.

Attendance and Revenue Decline: Fewer operating days in Q1 (14 fewer than planned) due to weather and strategic calendar shifts negatively impacted attendance and revenue.

Event Timing Impact: The shift of key events like the Boysenberry Festival to the second quarter contributed to declines in attendance and spending in Q1.

Attendance Recovery Challenges: Despite some positive trends, the overall attendance in April was only up 1% year-over-year, indicating a struggle to recover from weather disruptions.

Merger-Related Integration Costs: The company incurred $15 million in nonrecurring merger-related integration costs, which adds to financial strain.

Season Pass Pricing Pressure: The average price of season passes at legacy Six Flags parks is projected to be flat, indicating potential pricing pressure.

Tariff Uncertainty Impact: The company is facing uncertainties due to evolving tariff situations, which could impact costs despite current expectations of limited exposure.