Revving Up for Summer: Six Flags' Financial Loop-The-Loop, But CEO Promises Thrilling Comeback
Portfolio Pulse from Shivani Kumaresan
Six Flags Entertainment (NYSE:SIX) reported a 6% decline in Q1 FY24 sales to $133.291 million, missing analyst estimates. Despite a 6% increase in attendance, revenue fell due to a $12 million reduction in membership-related revenue. Adjusted EBITDA dropped 53% to $(26) million, and EPS was $0.98, below the $0.92 estimate. The company has $60.7 million in cash and equivalents, with net cash used by operating activities at $(30.5) million. CEO Selim Bassoul remains optimistic about the summer season with new attractions planned.
May 09, 2024 | 1:56 pm
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NEGATIVE IMPACT
Six Flags reported a 6% decline in Q1 FY24 sales, missing estimates with a significant drop in adjusted EBITDA and a slight EPS miss. Despite increased attendance, per capita spending decreased. The company remains optimistic about the summer season.
The reported decline in sales and adjusted EBITDA, along with the miss on EPS estimates, are likely to negatively impact investor sentiment in the short term. The decrease in per capita spending despite higher attendance indicates potential issues in revenue generation efficiency. However, the CEO's optimism about new attractions for the summer could provide some positive outlook, but this may not be enough to counteract the negative financial results in the immediate term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100