Six Flags and Cedar Fair reported higher attendance at their parks for the first three months of the year, as the companies move closer to their planned merger.
The two companies issued their first quarter earnings reports this morning, with each noting higher attendance though both reported overall losses for the first three months of the year.
At Six Flags, attendance for the three months ending March 31 was up 6% over the comparable period one year ago, to 1.7 million visitors. Total guest spending per capita was down 8%, however, to $74.35. That led to a 6% drop in revenue, to $133 million. The result was an 18% increase in net loss, to $83 million.
At Cedar Fair, attendance jumped 27%, to 1.35 million, over the same period in 2023, despite the company's parks being open for just 117 total days in the quarter compared with 161 operating days during the same time in 2023. However, average guest in-park spending dropped 6%, to $60.53 and costs were up 10% for the quarter, leading to a net loss of $133 million. That was a reduction in loss of 1% compared with the first quarter of 2023, however.
"We were pleased that Six Flags shareholders overwhelmingly approved the merger-of-equals transaction, which we continue to believe will be completed before the end of the second quarter," Cedar Fair President and CEO Richard Zimmerman said. "Both Cedar Fair and Six Flags continue to work constructively with the Department of Justice in its review of the merger, having complied fully with the DOJ’s Second Request received in January. Teams from both companies are also working diligently to complete the initial phases of a joint integration plan that, upon closing of the transaction, will allow us to drive toward realizing the full potential of this strategic combination."
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Cedar Flags Entertainment :P
I think that it's interesting that despite both companies pulling back massively on investments yet they're still BOTH bleeding cash. I guess the thought is that the combined company will be able to eliminate a lot of redundancy with their operations, but I don't think there's a combined $200+ million per quarter to be saved. For the sake of the US theme park industry, I certainly hope these two can create a stronger, unified company, but these numbers and the trends expected over the next year do not paint a rosy picture for this massive chain without cashing out some assets (i.e. selling parks).
@Russell you forgot to include what you think the new company will be called :)
They only bleed cash in the first quarter when many of their parks are closed
Six Cedar Flags Ltd., a division of Cedar Flag and the Six Fairs Co.
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Six Trees?