Six Flags Entertainment Corporation has reported its third-quarter financial results and announced a new long-range plan following its merger with Cedar Fair.
The new Six Flags oversees 27 amusement parks, 15 water parks, and nine resort properties across 17 US states, Canada and Mexico.
The combined company, which is valued at around $8 billion including debt, has posted results from 1 July (when the merger was completed) through 29 September.
It reported attendance of 21 million guests in Q3. Net revenues totalled $1.35 billion for Q3, while net income totalled $111 million. The company posted adjusted EBITDA of $558m.
“We delivered solid results in our first quarter as a combined company and are encouraged by the continued momentum we see in the business,” said Six Flags president and CEO Richard Zimmerman.
“Since completing the merger, we have been finding ways to operate more efficiently and reducing unnecessary costs while still delivering a high level of guest service,” he added.
As for Six Flags’ long-range plan, titled ‘Project Accelerate’, objectives include enhancing the guest experience, integrating new technologies, and reviewing the park portfolio over time “to optimize the asset base, narrow management’s focus, and help reduce net leverage”, the company said.
This means the new Six Flags may consider selling or closing some of its theme parks in the future.
Six Flags to sell or close parks?
Zimmerman described Project Accelerate as “a transformational initiative to harmonize our operations and unlock the full potential of the new Six Flags”.
“We have only scratched the surface of what we can accomplish, and we are moving with a sense of urgency to optimize performance and execute our new long-term initiatives,” he said.
In July, Six Flags made its first post-merger change in operations by eliminating a surcharge fee on in-park food, beverage and retail purchases at legacy Six Flags parks.
Images courtesy of Six Flags Entertainment Corporation
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