Six Flags Entertainment Inc. swung to a loss in the fourth quarter, hit by transaction costs stemming from its merger-of-equals deal with Cedar Fair L.P. announced in November and higher cash operating costs.
The Arlington, Texas-based theme park operator
SIX,
posted a net loss of $22 million, or 27 cents a share, for the quarter, after income of $10 million, or 12 cents a share, in the year-earlier period.
Revenue rose 5% to $293 million from $280 million a year ago.
The FactSet consensus was for a loss of 27 cents a share and revenue of $297 million.
Chief Executive Selim Bassoul said the company’s on track with its goals after its second year of a premiumization strategy that has helped it expand guest spending per capita by 17%, lower costs in the face of high inflation, expand partnerships to grow sponsorship revenue and pay down debt.
“Looking ahead to 2024, we have seen early success in sales of our 2024 passes, which are ahead of last year, and should provide a solid foundation as we head into the core operating season,” Bassoul said in a statement.
The company is still expecting the Cedar Fair deal to close in the first half. The deal is valued at about $8 billion including debt and will create a new entity with a portfolio of 27 amusement parks, 15 water parks and nine resort properties across 17 states in the U.S., Canada and Mexico.
The two companies had combined revenue of $3.4 billion in the 12 months through Sept. 30 after serving 48 million guests. The deal is expected to boost per-share earnings for Cedar Fair unitholders and Six Flags shareholders in the first 12 months after close. The new company will operate under the Six Flags name and trade as “FUN” on the New York Stock Exchange.
The stock has fallen 6.8% in the last 12 months, while the S&P 500
SPX,
has gained 27.7%.
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