Six Flags equity lags on low park attendance recovery, despite 3Q21 revenue beat — Market React

Despite reporting better-than-expected 3Q21 revenue, Six Flags equity dipped today after the amusement park operator disclosed a slow recovery in park attendance.

The company recorded attendance during the quarter of 12m guests, down 2m compared to 3Q19 due to diminished recovery in pre-booked groups such as school groups. Excluding pre-booked groups, attendance at the company’s parks in 3Q21 was approximately 95% of attendance reported in 2019. 

For the quarter ended 3 October, the company generated USD 638m of revenue, compared to USD 621m in 3Q19 and street estimates of USD 577.7m. Adjusted EBITDA totaled USD 279m, compared to USD 307m in 3Q19. Six Flags attributed the sales growth to higher guest spending per capita revenue, offset by the lower attendance.

For the first nine months, attendance was 22m guests, down from 27m in the first nine months of 2019. Revenue for the same period totaled USD 1.18bn, down from USD 1.226bn in the first nine months of 2019. Adjusted EBITDA year-to-date shook out to USD 404m, compared to USD 456m for the same period in 2019. In 2020, attendance fell off to 6.8m, while revenue and adjusted EBITDA were USD 357m and negative USD 231m, respectively, amid COVID-19’s devastating effect on the industry.

As of 3 October, the theme park company’s liquidity totaled USD 851m through USD 390m of cash and USD 461m of revolver availability. 

Six Flags shares traded today at USD 42.03 and a market cap of USD 3.681bn, down 9.03% from yesterday’s close. 

The USD 1bn 4.875% senior unsecured notes due 2024 traded today at 101.125 to yield 3.342%, down slightly from trades at 101.25 to yield 3.187% on 25 October, according to MarketAxess.

2021 Debtwire

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