Six Flags Entertainment Corporation (NYSE:SIX) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 25, 2018 • 09:00 am ET


Six Flags Entertainment Corporation (NYSE:SIX) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good morning, ladies and gentlemen. Welcome to the Six Flags Q1 2018 earnings conference call. My name is Julie, and I will be your operator for today's call. During the presentation, all lines will be in a listen-only mode. After the speakers remarks, we will conduct a question-and-answer session. (Operator Instruction) I will now turn the call over to Steve Purtell, Senior Vice President, Investor Relations. You may begin.

Stephen R. Purtell

Good morning, and welcome to our first quarter call. With me are Jim Reid-Anderson, Chairman, President and CEO of Six Flags and Marshall Barber our Chief Financial Officer. We will begin the call with prepared comments and then open the call to your questions. Our comments will include forward-looking statements within the meaning of the federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in such statements. And the company undertakes no obligation to update or revise these statements.

In addition, on the call, we will discuss non-GAAP financial measures. Investors can find both a detailed discussion of business risks and reconciliations of non-GAAP financial measures to GAAP financial measures in the company's annual reports, quarterly reports or other forms filed or furnished with the SEC. At this time, I will turn the call over to, Jim.

James W. P. Reid-Anderson

Thank you, Steve. Good morning. Thank you for joining our call today. The 2018 season is off to the best start in the company's history, with first quarter attendance, revenue and modified and adjusted EBITDA, all are at record levels. Our Active Pass Base is also at a record high and guest spending per capita was up over prior year even as our mix of season pass holders increased significantly. Modified EBITDA for the 12 months ended March 31 was $574 million, up $41 million from the prior year end. Putting us on track to exceed $600 million of modified EBITDA in 2018. Having shared those highlights from the quarter, I would now like to update you on four areas.

One, our newest membership. Two, the performance of one of our largest parks Magic Mountain, which started operating on a 365 day schedule at the start of the year. Three, our international licensing business. And four, the performance of our newest water parks. As you know, since 2010, we have successfully increased attendance and raised prices at our parks by leading and innovation, investing in special events and upselling guests to season passes. But more recently, we have been increasingly emphasizing membership programs. And I would like to take you through the latest iteration of our membership strategy.

Members are our most valuable and profitable guests. And our membership mix is becoming just as important as the overall growth of our Active Pass Base. We are focused on upselling both single day guests and season pass holders to become members and so I am really excited to announce that we have recently rolled out a new innovative membership program consisting of four