What happened
Shares of Six Flags Entertainment (SIX +0.00%) were soaring today after the theme-park operator turned in a better-than-expected first-quarter earnings report.
As of 2:23 p.m. ET, the stock was up 20.6% on the news.
NYSE: SIX
Key Data Points
So what
The first quarter is the seasonally slowest time of year for the regional amusement park operator, but it still counts on the bottom line, and the company has a number of warm-weather parks that are open year-round.
Six Flags said revenue in the quarter rose 3% to $142 million as increased guest spending made up for a 5% decline in attendance to 1.6 million. Total guest spending per capita increased 7% to $80.88, and management blamed the decrease in attendance on severe weather affecting California and Texas parks.
That top-line result easily beat estimates at $132.6 million.
Management touted higher revenue from memberships for increasing spending as memberships have been a key strategic initiative under CEO Selim Bassoul.
On the bottom line, its adjusted earnings before interest taxes depreciation and amortization (EBITDA) loss was flat at $17 million, and its generally accepted accounting principles (GAAP) per-share loss widened from $0.76 to $0.84, essentially matching estimates at a loss of $0.85.
"We are pleased to have delivered record first-quarter revenue and the second-highest first-quarter Adjusted EBITDA in our company's history, which we believe are proof points that our new strategy and our new culture are beginning to take hold," Bassoul said.
Now what
Six Flags didn't offer guidance for the rest of the year, but investors seemed to like the improvement in guest spending and what Bassoul had to say.
In addition to strong results from its membership program, Bassoul also touted upcoming events this summer and new rides.
"We are still in the early stages of our transformation," he added, "but with our season pass sales accelerating and our attendance improving, we are encouraged by our recent progress."
Six Flags stock is still well off its post-pandemic highs so there's plenty of upside potential here if Bassoul can execute.
