Wednesday, April 22, 2015

Heard On... Six Flags Q1 Earnings Conference Call

Today Six Flags Entertainment announced strong first quarter 2015 results.  These include total revenue that increased by $11 million or sixteen percent.  The increased revenues came from a 17% increase in ticket sales, 9% increase in in park revenues, and an extra $3 million in licensing revenues - from the overseas park deals.

A call was held today to go over these results - here's some notes:

• Season Pass sales and memberships have remained strong, growing the number of active pass holders by 53% at the end of March.  That's a really big increase in the number of overall pass holders and to me means that many of last year's memberships were renewed.

• The company is also continuing to increase the number of surveys it sends out each year, reaching over one million people surveyed last season.

• First quarter attendance was up 13%, or 181,000 visitors.  Admission per capita was up 83 cents, while in park spending per capita was down 74 cents.  The per capita figures were negatively affected by the strong dollar, making earnings from Six Flags Mexico pull down the numbers.

• Holiday In The Park, as previously announced, will come to Six Flags Great Adventure this winter.  The experience opened at Magic Mountain and Over Georgia last year and was a big success for them.

• An all-season shopping pass, which gives discounts throughout the year for retails purchases in the park, is being tested currently.  Six Flags is also debuting an all-season picture pass as well.

• While a handful of Six Flags parks have significant extra land attached to them, the company does not see any additional solar fields being built after Six Flags Great Adventure's.

• More international licensing deals are being worked on, though the only area that is specifically mentioned is Malaysia.  It sounds like there are a lot in the works, though.

Management believes that the diverse capital additions at all the parks for 2015 will lead to another record year.  Let's hope so!