Six Flags Entertainment (FUN) 16 Feb 232022 Q4 Earnings call transcript

Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Cedar Fair Entertainment Company Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Thank you.

I will now turn the call over to Cedar Fair.

good everyone. and Rob, you, morning to Thank My Relations for Michael Russell, of Investor Corporate Director Cedar name is Fair. December Welcome to and ended Quarter our XXXX today's earnings call Full to Year review Fourth XX. Results via wire this a of at of is which ir.cedarfair.com. we tab Earlier under News investor's service copy the morning, available our earnings press our release, distributed website

CFO. Witherow, On President and Fair, Richard Zimmerman, our Vice the Executive Cedar call with me this President and and are Brian morning CEO;

you that meaning Before made I securities we cause to remind to from forward-looking risks the begin, call actual this within laws. involve differ include could those of comments will uncertainties may need during federal that described and results statements. These in statements statements the such

detailed and to and of public is may analysts FD, SEC. discussion general disseminated, the all with the this you risks, will and available the on media made widely has compliance being all filings to well to be more with and SEC's refer In unselectively content these webcast the webcast For disclosed. the this open as prior Regulation fully been company's call a notification is as investors. considered Because constituents

our introduce Richard that, like I'd With to Zimmerman. Richard? CEO,

incredible we and progress Thanks, of are record this our morning, making our performance exceptional guests. for our Michael. we work Good experiences thanks significant to joining deliver on morning, initiatives announced reflects team which for everybody to us. the and the for Earlier to fiscal continue strategic XXXX,

fruition implementation the cash provided during performance $XXX unitholders the us interim that in trends quarterly These unit results to second XXXX the results that of operating approximately strong reinstatement and also distributions season of capital our buyback new through of half year. allowed updates came the program. the record on we of reports These throughout a our quarterly demonstrate million and the return to to

revenues near performance the highest historical the still EBITDA and per attendance the record for resort company's driven We by business despite was year spending highs that impact record headwinds, produced and our revenues, labor the in properties. history, out-of-park continued and availability, outstanding channel in-park capita of of the part recovering. inflation was result a including second adjusted group The for large in year

improvements We costs their actively delivered pre-pandemic come. including year to demand growth improvement a XX%-plus to the achievable offset efficiently as our business margins, managing labor the general to team's to also we also our of of management operating cost inflationary years for ensure credit marked our of variable down long-term Much pressure. making with demand, will and with disciplined practices, back GMs align other managing over parks and goes levels. while park the The they vitality upside work to are last seasonal

into XXXX. ask financial strategy XXXX I our couple review walk take more have our to our business to to Brian of Before momentum through and just heading a results we success of strong key to elements in some led the want in detail, that I and minutes

our to essential reinvesting in First, long-term properties growth. is driving

guests in reinvest of to commitment the guest the company's business and resort improve year, attracting experience. to been of the each the heart At properties millions consistently our to has parks

in of emphasizes produce growth. organic to of has major limited activity the strategic opportunities investing central our to M&A importance historical our the properties, in number assets While own certainly growth, played acquire a role high-quality steady

growth line strategy. top prioritizing recovery right Second, the was

and spending ability more back parks, our strong coming a direct result and to growth in time our more exciting attract to guests engaging to provide Our options guests with was in-park revenue guests of and XXXX again. keep drive

would be experience of the strong operating through macro guest and show that the effective and ahead. to whatever revenue focusing believe create economic challenges to most our strategy. this year, business of the start were was we term Given I believe the propel our on strongly long the growth results XXXX necessary way over the right leverage environment the uncertainty the top at line the

Third, underpinned group revenue our thirds guest comes at including prepurchase growing by our streams. with and of overnight ticketing tickets advance commitments are of properties. is and associated season recurring More our business resort stays two that in reliable, well channels through attendance than with visit, annual passes, the bookings

us the of cash decisions recurring model strength underappreciated consistent most unrecognized informed long-lead fine-tune and produce of These company. it be believe direction. allocation We revenues streams our recurring a of also allow view cornerstone growth to capital remains valuable to our flow revenue levels business make and of and our about predictable that priorities future our the

a quarters. company, the attendance two Fourth, our generating of second we over fourth thirds are and half XX% EBITDA our revenues and third of adjusted and

weighted July through seasonally businesses, in cost of leverage our we most enjoy very case maximize on we our from flow-through with structure when October incremental As in the calendar, and narrow peak revenues. fully demand windows

and our Finally, levels, target our back reduced strong $X billion. of while net net pre-pandemic is balance debt sheet leverage with total stronger. progressing have we To date, to getting purpose towards

to recovery rapid to to our for our add structure the flexibility while achieving strong us have term. goals Our quickly pursuing and well results capital and move positioned towards longer opportunities capacity

more on detail here color that more Brian so provide going outlook before review results our some forward. I pause in I'll our can Brian?

morning. fourth year our of good full compared start our before with our more review and results recap of quarter year detailed I'll to full compared XXXX, of Richard, Thanks, season last performance operations. off a to providing last a

as decrease operating had to with quarter plan fourth park compared [indiscernible] our The XXXX the quarter, weather-related or as to was several during days days operating calendars well changes XXXX. at in of fourth the related XXX fewer eight period. total closures the During parks

record to million For $XX of fourth compared million, X% revenues net $XXX of quarter we XXXX. the generated quarter, or the up

X% year-over-year. On than fourth more basis, was our a per operating up revenue even performance day quarter stronger,

per X% compared increase daily X% a attendance and up average out-of-park was the To quarter was compare the during performance increase of period. fourth to prepandemic to the by daily levels, in driven performance capita in-park average X% in improved an attendance Our XXXX. revenues increase our XX% in a spending

revenues increase Results across reflecting benefited driven Park Water our were the closed Creek fourth the out-of-park by into quarter demand. newly primarily price Cedar most of Sawmill renovations The X strong of XXXX. higher properties consumer Bay ability portfolio, inclusion Point for of our resort during Indoor in from was also Castaway ADRs that to renovated the and Resort,

spending high-demand spending October. Halloween along higher with in in-park $XX.XX, during record the a levels fueled higher pricing quarter particularly events F&B our and per Meanwhile, on guest merchandise capita totaled of in by ticket

investments the within over have channel, that food reflecting quarter, the was spending in the the the and improvement guest of year, for For area beverage XXXX in meaningful capital prior the success made season. up we the XX%

higher the totaled a costs. million the as cost Moving fourth million $X sold the offset costs. increase part of in to to operating the the in million, SG&A million in and sold as expense, in expenses cost of compared $XX in quarter $XXX goods quarter $XX million XXXX. increase front; up a was The the rising costs of impact increase reflects of cost fourth well goods large decrease and product $X increase operating by of of sales The result quarter in a

of fourth increased transaction related at a and park food, Despite investments goods spend in quarter reduce costs of in technology reflects higher wages expense driven XXX increased need our these increase merch all cashless, was latter incentive labor The and full-time period cost positions year's to from the advertising only properties. costs, the on conversion which XXXX. points and pressures, games plan by higher in this the handling the eliminating percentage parks and cash revenue SG&A card as fees. upgrades, basis quarter credit of cost and for sold of helped fourth The ongoing benefit by

fourth parks, offset tax with operating costs the costs leaseback at the by period, of These and amusement as X% California's planned XXXX increases sale associated During and by on in operating quarter incremental somewhat spending the the fees. the lease moderating property our savings and land headcount maintenance wages America. by we well supplies were land and compared Great managing maintenance as tightly entertainment select to at higher reduced of

margins leaseback Excluding monitoring in down transaction, have going the to operating -- X% X% first the operating the performance sale a and on as a manage costs per been the improve compared fourth to basis, the day are or continue XXXX forward. quarter closely would key to operating we of better impact costs of quarter metric we

in the XX.X% fourth believes and quarter increased XX%, leverage as million $XX EBITDA, to fourth quarter up of improvement to XXXX park efforts in the margin of growth. period during fourth operating XX.X% is well a $XX the million our Operating up our levels meaningful to a results impact quarter. level from company's to the from for attendance the management return quarter Meanwhile, that with margin which of record quarter comes cost measure successful a the year-over-year fourth reflects improved as more XXXX. moderate the the Adjusted for historical during

parks. year-over-year acquired compared operating a at XX XXXX, Shifting operating two operating fewer days XXXX. parks focus net XXXX days in of by results our in with of at our days year XXXX to XXXX. full with X,XXX incremental seven additional were July differences The normal offset X,XXX to water XX days compared the totaled result the [indiscernible] in due Operating days calendar

or million year, For to billion, compared XXXX. net the revenues were record $X.XX up $XXX full a XX%

out-of-park growth Meanwhile, in driven capita million. spending, X% in compared increase XXXX. increase record to down was revenues Our totaled a XX.X per in-park XX% to a million XX% revenue visits $XXX in XXXX, attendance by a

noted, prepandemic the roughly of the of of channel. somewhat X.X the shortfall down the recovery gap. Helping visits to group performance our our million was season in compared for was group accounted attendance attendance channel pass previously we've to As slower offset entirety which levels, the anticipated

attendance X.X XXXX pass for XXXX represented over XX% of record a our comparison, pass back season season season, and million XXXX. XX% of visitation By attendance XX% XXXX sold up levels comprised the in season the total was mix passes mix. attendance With

period for as to front; operating particularly operating mid-year in expense. totaled were as which goods costs labor expenses compared general due cost the full primarily million operating weren't up full around parks, costs the including cost increases of in year of the and The SG&A XXXX. of and $XXX well Schlitterbahn sold, over X-year to year, billion, costs the to Moving increases year acquired this the past cost $X.XX SG&A costs inclusion on impact inflation the until and XXXX,

although Looking for With less line our better deeply labor of our to improving a in recruiting very at remain challenging, to staffing needs. to and calendars plan made labor a pleased controlling into proactively protocols, progress for return only we model, sight with markets little and costs. around are we around the the more costs; staffing This traditional and more roles. XXXX operating levels uncertainty were allowed associates us rate positions able tiered to more paying efforts harder in and supervisory helped pay seasonal fill operating up

the to flatten cost. rates, given operating seasonal labor is made helped seasonal our single seasonal our growth structure we curve that changes largest around important The pay particularly labor represents which

XXXX down year, from trends half X% the X% the when seasonal rates average the For of second in to our were year continuing labor improve was down rate with year-over-year.

needed to throughout the on wage we our X% again manage levels are we maintain the of of order past levels XXXX staffing as although optimistic this year, can success continue to within adequate to rate we have rates X% strategies that to Based ensure we season. seasonal average in will our

per this and Adjusted $XX $XXX improved for XXXX. million to reflecting an to million, for in benefit a of XX.X% million compared to full year increase base Meanwhile, or margin spending X% past and of strong XX.X% out-of-park in-park performance a our year recovering $XXX revenues. attendance record XXXX EBITDA the XXXX, the was compared of capita

over operating look Due to something remaining better and addressed parks pre-pandemic park general as inflationary historical trail as time. tenancy margins gap to we return and to structures optimize levels the to cost attendance levels, we still historical our believe pressure, levels be can

leverage on ended optimize capital revolving under sheet; say Richard we strategic we structure. balance strengthen our built EBITDA, adjusted have outstanding as even and cash turning a on we seek as $XXX facility line which our year borrowings net with the no to noted to and further total to initiatives our back Now to we in sheet, intend are levels. million robust pleased balance deliver We with in Xx credit hand, of pre-pandemic the earlier,

million $XXX million distributions cost unit By million. $XXX we pay January, year, cash repurchase we end repay the to the to During repurchased $XXX repurchase used used had a million units to loan, $XX at used we our roughly company's million five new to fully of and the unitholders approximately of program. under term we units total

quarterly implementation year. Richard recovery in the noted, distributions repurchase our milestones and significant unit cash As reintroduction were the of of this plan our a past

the Going the This forward, one get to in distribution on XXXX of continue quarter our the will include of level pillars will in better our strategy. we as appropriate what of we returns performance. as capital focus allocation is increase visibility third into unitholder determining

We to continue follow-up quarter, existing early our in we the active will repurchases, completing program. also program intend at implementing time a be unit which our appropriateness to second assess in of buyback the anticipating

are properties of expectations. and indicators pass business moment, products, lead season and group line long at Looking in a at in trends with early resort sales bookings reservations for solid our the

the the representing at XXXX the XXXX at $XX to deferred $XX when XXXX. Canada's of end was year-end season. Farm of the of balance note at Berry balance million extensions the decrease to Knott's that included of end revenue $XXX deferred COVID-related a in into total year Wonderland revenues approximately important It's product million, in was compared Our million

passes line is extensions, driven including passes this or average year-over-year, deferred been up by season weekend, have in XXXX from results early $X season plan. and of were up which a approximately these sales of approximately Excluding price, Through X% or new increase million, products. sales $X million past related X% would X% the with in pass all-season revenues XXXX

in sold with units compared season higher the last time is pass shortfall pricing year. the same a X% offsetting Somewhat

of to year-over-year start unit as sales pandemic, with more unit sales, the weather program on sales cycle out the XXXX The and the return total exceeding poor fall program. that as matching more a half reflects a due spring normal to slow we decrease sales patterns our window maintaining to XX% than of for remain season well purchasing of pass our pricing, the accounts record season focused of pass remaining, increased including performance or than driving coming sales

$XXX CapEx, renovations F&B we project our spent of By we XXXX. Regarding including year, upgraded resort past rides to million CapEx. million facilities new properties. expanded million projects attractions, and in approximately This to in on and in $XXX comparison, several and investing capital $XXX investments

$XXX payments million to purposes, for year for $XXX cash million modeling million of Lastly, projecting and interest full of XXXX, taxes are we $XX to million. cash $XX

provide results in to how we operating want year. coming I reporting update Finally, will on the an be

the the is update of our Given last our stage XXXX the a strength performance provided of to reports longer no and recovery, of interim we offer there we need number year. believe

such, quarterly moving we providing of our normal on be returning results cadence basis will As forward. a to

we relative our quarter of updates longer second performance earnings, Labor on fourth will the through we provide interim continue Day. third quarter earnings our July our July Memorial and While Day, to with October with through will or performance updates no provide to

Richard. call like the to With back that, to over I'd turn

Thanks, Brian.

performance in our is the One excited to channel. has reflects pass recurring see about more XXXX. to build our things base. momentum opportunities we X area past on with room year pleased extremely customer that are that season this strength about grow equally important our We and Its

guests improvements the . we experience. universe the offered One, and in are to buying as Perks of programs, made as obtain in Pass our well to guests have loyalty most more ownership. most of purchasing the our cases, continue perks grow the part ticket, our loyal season including the of continuous up two, season through benefits program many our by pass propelled benefits And overall guest highest-priced pass to loyal our

drive food our guests, to in-park with beverage capita our resonate per well higher. and program Improvements to spending continue helping to

part per and Berry most of capita Point, Farm, offerings, growth years upscale pricing our new quality year equation, can that to be last multiple for Wonderland. -- Cedar over of of While is to Dominion at Knott's cap made our facilities F&B traced the high-throughput opening including Kings investments culinary of dining Canada's the elevate

guest have facilities. times dining culinary on ratings comfortable turnaround higher our our and been control choices, positive response satisfaction quality, more overwhelmingly faster climate Consumer diverse for

our upgrade growth to continue to and expand facilities guest in spending. incremental look will offerings and drive as we food We upon menu

premium drive program a we early evolving considerable seen guest and guest similar spending even an has innings is our that have potential experiences, incremental in we We its that response believe think to to higher.

select actively the throughout looking are In offerings addition in to Water our at guests season to testing prestige pass continuing pass premium market who Fast Park to exclusive such we guests, a Lane, new Cabanas for are aimed product premium and as areas experiences season. daily XXXX, our parks VIP a at

stock is year including with improvement rates, work of consistent to costs. take within ensure there seasonal of several current believe for seasonal operating well for our demand variable of progress, more areas the manage we underway Initiatives effectiveness be the our labor As our labor again structure. cost to other and done are we in room and business, keep hours

as larger inside our attendance particularly restore growth same return parks operations rate our to important and goals. our of to the previous parks. will targeted demand, margin leverage initiatives optimize our are back we price A to highs operating work into to maintain with along be ability and as cost level revenue attendance smaller that our achieving lack These dynamically to critical increases our levels, at prepandemic

connecting Along for dynamic that our analytical our the improve applications working and lines, parks speed with we the improve reduce are up same infrastructure, digital need actively and transactions, pricing further guests to e-commerce labor capabilities.

through control their purchasing for mobile season in-park provide XXXX like enhanced services. on options and We visibility and of an to our Much smartphones the app improved with guest make technology through flow entertainment guests transaction goods park to operating working the and efficient, reduce experience are also the through. and operations, performance improved our costs will dining and measures over operations cost-saving term improve increase cashless benefits that also the long more have improve help margin realized when we

Berry XXXX, anchor of driven we restaurants and operating continue at capital the by continued will by and will beverage half to investment new and in year. channel, and spring school our into park Going big first expanded highlighted the food Knott's of and led bookings the parks, which will throughout group and youth in balance over Farm, the corporate growth, be prioritize demand X be Point from which the calendars revenue year business marketable the of recovery largest Cedar by

calendars to macro we project to the adjusted need for XX days may as as year operating this for While as such full be XXXX. operating year, XX factors many weather, to adding days compared

in our We the capital our produced do of the the that the EBITDA that more parks highest so are sticky. than for should We focusing investable and the business are where appreciation transform leverage. of increases XX% of our remain With on in adjusted guest whole also parks, share have imminent mind, of return. at of be demand each XXXX sections parks, scale the produced the the we that operating largest spending with is of lion's and areas that highest making these season, full that five investments by investments

has increases of that planning with America new to adding rides in attendance, new attractions California's Great smaller impact also attractions market our and sales. shows parts, guest namely Worlds an X are of marketable Fun spending pass We at and mid-tier History season our parks immediate at XXXX. in major invest in in

smaller profitability. much peak should the growth in future tractions the marketable same, foreseeable improved keeping impact investments market immediate parks at the parks and among look high-capacity running while for larger rotating of incremental major strategy for our our and performance engines long-term investment Our

conditions. demonstrated We resiliency fortunate economic varying a and strength to and model market business have in has are that

more with through throughout our and past drove the I how importantly, am initiatives strategic the encouraged performance recovery this year. effectively pandemic

given While in uncertainty another laser-focused investors. positioned remain caution we are our on results to returns and the exercise we continue deliver record XXXX, year we a the to believe macroeconomic we of for degree of delivering solid current of environment, well

that's Rob, open the remarks. end of questions. the up Please our for prepared call

line of first Your from Bank. from comes Chris question Deutsche Instructions] the Woronka [Operator

there's wanted way of back impact think I of to when know longer-term Congratulations to about is your But had way we -- if down And drill step-up on on that there? from function? there a changes the when attendance commentary a target? on a today, little how is just we Schlitterbahn Is I very to making? could cadence you're think And to about to reliant it there look operational some margins. comp bit the And that an a XXXX, there lot and there good we what's get you is a a quarter. to already. versus

Chris, I you appreciate being us. with

did year. XXXX Let the tremendous start teams again, in And me a the pandemic. just say was out a organization, got job thank to all I've everybody saying, there. once remarkable by the managing the through They

them. So to hats off

terms In a something of margins, to. attention margin is we pay really of lot

demand As it we historical levels, pre-pandemic really will help said, those a getting margins levels. return to and further to back drive pushing

month the But price to -- continue big that showed driving and we in optimize pricing what allowed demand, of and spent really terms of could we Chris, pandemic, to in recovery. attendance high-margin implementing the in really do into -- building We technologies revenue addition, quarter. the October incremental the fourth us particularly revenue. demand It's

doing possible side. take a make doing everything demand all but the were more revenue that could of as we our on We job on and management also and really business disciplined procurement first, really great in the the that operators is really field be we that buy. lot working a on function management, sure built we X getting fronts: out on a system dynamically Our as workforce centralized cost into with intelligence to things to efficient pricing

how results. anything made arc years over that decisions Brian, the of of the the at add? you we and you lot initiatives three over starting as chose or a back that to look I of two can where see strategic look think they we've now our -- impact I been, last deliver and So you're to would when we the the

No.

ability is continue to you I which is both costs. Chris, think to manage line top as emphasize, revenue getting there, our on drive what well hinges as said, to Richard, just

focus as back saw coming this think we that get the in possible, as was historical levels. did said returning levels as demand into of quarter driving to that and the benefit on revenue Richard I think year, to we in historical when the the fourth call, quickly

we And think are business, half so about our as a we certainly second business.

As attendance thirds QX. we -- of come Richard noted, but the in second of XX% exists the EBITDA. as of and That amount to leverage half, that revenues speaks two the the and in QX

And those costs so but I levels, towards as critical work be revenue. think to we only will XXXX back it to drive getting to top to not better, manage continue line

versus a Very if I helpful. capital could. On year, pretty fall, follow-up, this this significant of lot you potentially where you're buyback cash historical How distribution back more had levels going closer EBITDA you've no think back a to still to in QX. at prioritize do may matter allocation, In we And got quick buyback free flow, that getting where generate guys to level? leverage you it. a you want

it's Chris, Brian. Yes,

As the we of more our buyback investors it of the capital bit the strategies when we terms implemented our returning than priorities. was That of a tool said was capital flexible distribution. to the to at that excellent allocation belt felt and another program, that remains discretionary said, means forefront an and Board distribution the the to tool in little add

quarter We Richard have third is the to XXXX until season and better both future a investors noted, give the developing. get wait of into certainly options returning expect reinvesting business capital a we'll to capital relates as outstanding and will the line us buybacks. call, through the an to in lot sight as XXXX, of how and in as said distributions I that allocation, it potentially well the as As

The market. that what increase getting seeing from is price. distribution we in reflected the not but in stock are also performance, the depend Is rewarded will size value the of on the market the for only distribution on

in think good that factors on out based over we're place will the the so And efforts undertaken to there's months into the decision, we've a coming but lot all pandemic. that XX really that XX last go I of a of

line Your next Stifel. the from Steve Wieczynski from question comes of

give you're to ask an So know it I'm going to try answer, if don't going going me I but anyway. a I'm question.

So this be don't if I year, time and we didn't here But what you EBITDA fully next up if million year, disappointed say you did you give in guidance. exceed we're -- you understand $XXX you look let's annual guys we this would at look, put the sitting this year?

didn't that are And Obviously, anything the but need of potential if to macro we that understand you what we there to that that out have some exceed factors to else I level? would exceed watching? be headwinds, need the level, watch not you

Richard. the I appreciate question. it's Steve,

give to forever day. We're While take our is I we tell an this model. answer won't easy would don't I'll I a hypothetical and you to you we said what business back how guidance, we've look at business, and

a that that leading are, past are to we've call laid where now springs normal means I back more purchasing are. Season historical our look pattern, are probably enough we're for those indicators. feel good about far we period. which We sales out at revert and think what we they things we to likely three going pandemic There's passes, where the biggest

spring the pass sales at. period, we look season lots our a new into around stepping have to capital we're base of So much excitement with higher

pass So season closely. us. there really How number program. to within meaningful many our very renewals That's I'll be a retention are watching that's

and the touched the got But with other XXXX, encouraging response everything our we're going you, And talking this have tell that. leads, to thing, strong leadership between it, of the a by really real business, positive to over gap our still I'm to out seeing the really The in tenants I weeks, and leading there's big now had the very there teams. that channel. new we and sourcing couple at market point. to several meetings We're focus group out on we're the encouraged really resort doing. look our I've be last bookings, of in sales indicators, rest everybody on old we've business.

through year, capturing marketable pass we this the making and that, demand through get capita year to front in have gate. in-park we're this but do we back drive they the in as to channel. with driving the say come per them to new that group sure more I to will once invest resort the park, have that spending year always guest then ability experience, product, we'll our the once get think inside the So season the demand we And get enhancing

But food transactions transaction higher I'm hour. keep proud pleased and done. we beverage we doing values, And driving with our and and per average operation has really what of keep that more

we're building that sustainable So to capacity spending. capita per in-park drive

are watching I'm those now, be to as are that So look And all those right encouraging. going XXXX. at things to the

second in misunderstood, Brian, great wondering, sounded heard operating your guys then got additional I into you you like potential color. days That's to be don't given aggressive bit the question, quarter. if know but about in? marketing you maybe XX correctly, the this spend that layering I XX for and a just Okay. you thinking we how the should might be b, heading year, little if think the Brian, marketing a, And with then And I I fourth

Yes, Steve.

more the 'XX the tools using just historical more levels. we we'll use what way today return recovery play was I because prepandemic of don't really sort lot system because a we 'XX more significantly as So 'XX to very the to back disruptive, to the get I or are of in part the more most methods for saw marketing. to but that that think are as getting into system may the I'll recall, know same more were across dollars the marketing, was pandemic, of to teams into all operating out efficient, still the as where term -- us marketing back relates calendar spend we it operating the XXXX required start around were maybe of in marketing, pulled operations -- the pushing normal for full calendar, impacted. a and a down back you

mean, doesn't going or last get a I as I that compelling to get line we And spend that as across enough going levels potential system. marketing spending full of it's want 'XX, noted, we're XXXX. The in on important its is not in that to into capital said, think undermine That to levels lot do note with the are marketable back thing to marketing. by would we Richard as

there's revenue of a formula. that line more more guest think critical some the drive efficiencies I But part there. acquisition to top spending is still certainly

Your line of next comes from Citi. question Hardiman from James the

anything, we wanted or setup October let's the trends not? start in of a and Maybe So that the about seem should on month, to the last was a if what, think within Maybe overall, how and attendance implied us And we XXXX. connecting like there? dichotomy from based connect walk the the as dots of dots sort fourth It through shouldn't Maybe just quarter nearly gangbusters but saw some attendance. the right, for quarter I November the particular. spoke, between in with forward . roll we the were we doesn't should results revenues December XXXX. Obviously, be good. the into

Brian. James, Yes, is this

the the already if quarter across offer two most we disclosed properties earnings well, of, our it the not, properties, October, and right? summarized Haunt basically Michigan certainly one or or venture Halloween share call, and strength events, you mean as Halloween our three I third don't of our the the in it's lion's event offered Schlitterbahn think the are part system, in system, parks the I popular those at of events. only two of

and all. So and did it's slow down huge demand. got it's into that priced noted, And as Richard that at it, scale got not we demand

encouraging. very was that So

more of events and WinterFest -- November December, We properties. the dark. our half the properties into go of than at roll events, have six You most only of

as your the weather even a So was year to the if more time factor, October, of right? opportunity of weather that nearly I the high. start slow becomes so isn't you November. characterizing and quarter, also weeks get And impacted five And into outstanding of

start the when week rainy December, West week good East Kos to third sale to cold on Really week and extreme Coast. we the we in with out at in But East, got fourth the the Midwest, wind the took Christmas, lost season. some of Coast the in of then and our particularly temperatures,

great, to So middle sort and quarter. the mixed was bumpy it a of end

in plays the as the cap per again properties quarter role. year-over-year numbers, quarter, year-over-year it I is up accelerated rate big know per your up But math, Got I XQ, is about small versus being XXXX 'XX? and -- a on seems the quarter. that By fourth of basically, way. same growth of in fourth the like pretty the my cap in question XX% was a per know, looking we And it mean mix down same at don't I it. a has sustainable in then now think meaningful caps. after a sort

Yes.

and it's in little pay caps, interactions quality why about very it product, relates experience to to behind investing maybe bit the of I our said, more reasons experience, we that's bit back experience, expensive good a guest Their as quality guests. James, think for and we're the with pressure the little we as margins willingness go because Richard having put one venture. of on of per we're to to earlier feel invest continue that one up a and the questions a

I on think couple you One, look a quarter, at you the points. smaller quarter. good When hit of it's a

operation. percentages sometimes little the not And of get of also really a lower little in cap So distorted parts, per parks, smaller a a can number that. you have the because

what said, I to would the we've That they're fourth throughout expect spend strong beverage, quarter consistent are guests that we improving most spending. see merch. notably the to areas what seen in continue When in was and think see saw spend. Food here, with we XXXX. we in strong And

Friday particularly the the and were not demand, -- on into we into demand. such we shy pricing nights about highest high noted priced demand that are fourth And we quarter. We has for days events. on Halloween call, like as the October Saturdays the got

big the And so that's a of equation. part

roll I confident that caps. we to into as per feel think keep 'XX, continue we we can pushing

saying, it's average throughput We pricing. certainly price inflationary value. in transaction it's higher been Richard where we've about take we but As an have will all more about and it's noted, environment not to, about

providing they're create guests higher-quality doesn't to key. in that that's with product So long providing it long efficient willing to is waits the manner lines and get product pay and and up for

Same And great. That's lastly, question. then

an best down notably OpEx, right? out you time, was third On the of materially operating seen margin some got most of up OpEx. quarter quite the You OpEx guys is day being have leverage the after in basis, On I've this maybe a margin that that front, your in lot guess thoughts quarter. costs to grow is we it? days? in of the less I XX in if you can XX-day think about think -- to operating is pull in How operating on that increase growth trick goal Maybe calendar sort than XXXX? about again the -- should I

I'll James. I'll take that prepared question, go to remarks. my back

and to inside that are length drive can rate. growth about revenue. our how revenue keep the increase plans talked try expense We've at we targeted Our

talked roll this quarter. while also say perspective, I I'll have takes It build things then to the qualitative We a James, from a about, out. and and thought first them was

We really put the operators hands now that in they're use. to of tools starting the

workforce So getting management. we're far more fluent

to But continue tools of the continue time challenge so drive team, we our this business need, That through every to forward. they the utilize takes help us domino to labor. We system. our how focus to best member is and the management on they can can give train

that's perform. efficient a how more side. them, we're that's better levels, about on we and we At revenue going tools can focusing on cost lot of the levels, on some The focusing the give about on be to

from the of Credit Ben Your line next from Chaiken comes question Suisse.

costs -- the the answer. the renewed was particularly like a of manifested cut one in kind It It quarter. of towards sounds the kind on end little another Your of bit and itself just a of flow-through question there's on last little a chase. focus to margins, that was we'll bit

It's and You mentioned several impressive. cost-saving initiatives. all awesome

but rephrase of couple previous quarter and dive even to show it what in year-to-date quarters a trying I'm just quarter, versus 'XX. XQ like of this of changed. stark was wondering in then the to there to I'm stuff understand up. and just to make took It can of couple understand just That it. just 'XX That's that like in and months didn't answer, it trying XQ kind already what contrast between or to sense. sounded more. like the Is I last process? a kind results I'd

Ben. XX% total there we point to of to close Not No, representing maybe root, cost is, cost largest It's Yes. our taking and to your this to of the Brian. structure, longer some is the labor about before, think the Yes, final of with made things fine. I talked particularly around of seasonal labor it's some initiatives as of James' last comment, labor. Richard some as our to take that. -- think point outcome It's close labor I single half item

And you away. full it's get -- don't so the sometimes -- those don't right initiatives benefit

of think I a there's little So bit that.

to at a to reemphasize cases. cost -- would cetera, et that alluded not spending when don't caps to X the and I deliver we're we again, sides risk. And little there's demand that sure area right I the to to as make But Richard want it per second bit in possible the suboptimizing because costs, a quarter. I more first to some experience the systems, it, comes to, bit guest this best little prepared put mean in staffing, structure optimizing have in right the optimizing saw

around have make tools, know that structure into the in team work staffing we best We the the we On those workforce costs and like labor those that's change levels levels those of to was software our tools with to alluding fluctuate in comes sure the And into teams our play. BI because costs as things hand, and to cetera. other to actively management cost to Richard come demand that where to, the variable in are aligned other play, use do levels. areas, real-time tools et need that's continue the staffing that demand and where weather, field optimize

comes the play. procurement other And variable into where team cost that's the

think we think always are, opportunity company in for out plays that thing I expansion look real So half the best second when is margin third the the is quarter. I the me back 'XX, the at and fourth that for I more that

Group little channel. in group of I in of of half more a think slower the even did of because year. now is bigger QX that in exaggerated or so a the some bit that's business the first recovery is it of of not the the QX we right margin put and pressure the are it more disruption QX. And on because half year group than second than little still having part in light a the QX --

really to processes, just place not of in management workforce were are of... -- clear, the the earlier some That's in more those helpful. And be year, those

in yes. 'XX. been No, the began out, those -- tools, have tools rolling Those during pandemic tools Ben, we those

of implementation is right? of the practices as some just get that I think we it there's established, through those things, best the to fact go

little every business month than a previous. and quarter is the Our different every

you so through full to go cycle. almost a have And

going parts of learnings what those And learnings and we 'XX those the practices push of learnings, forward. do 'XX best educate So then see past. down. we things what And

and So parks when our we're couple and of we're we around that those better in look a have did 'XX, staffing, pushing things more we learnings system around staffing. taking back those things at efficient down. We're

out that together. these been playing just longer get that teams of some better, the you saw -- you the you think you're 'XX have the I So with tools and working longer in

you're I'm group please how there me an the of in year. if on of pacing first kind of appropriate any directionally months the bookings, couple vernacular and versus My occur this, correct way a off lot like that XXXX? is of us Is understanding if can you the that's of tell kind

happen that get the get people booked second Richard. Those the Yes, and team. first pandemic lot school different quarter. I've are those quarter quarter in quarter. a the group, on Typically, seeing. first our our later. in accelerated, at pacing encouraged second I'm I'm the the we'll bookings through sales into the in through youth very in with met is consistently -- corporate Again, coming Ben, it's What the

back ago, earlier. where robust it go do very booking but bulking small window was are bookings considerably groups, was I that decade the tightened post I pandemic. booked corporate people compressed the than booking longer say now. more booking big has And if is much you would a right We're groups, cycle, But we're a booking think cycle buyouts, it

to Sorry later? or earlier point [indiscernible] . Moved the

happen. to event is going the When

event. that had we Berry booked February only was was December. early in an event So Knott's January, a sizable that late Farm in It

groups say pacing was to more pre-pandemic We the have much a to us returning and year-by-year. pre-pandemic some long So come. we're window, are that to actually visibility that on I would with to larger tighter that companies lead, do and want closer trend coming saw a they the but date booking we

from Securities. comes Mike Your from Truist next the line Schwartz of question

Just for maybe heavier the the additional how think XX days, you wanted to about additional touch guess, do days the cadence said quickly operating to we on year. the XX I -- think full are one, just I into putting half of days those how of And weight the year? maybe in or are the the those more days accretive half first of additive second year, the that you the calendar?

Mike, it's Brian. Yes,

half probably as first the are you of those XX% much maybe going be the of those majority of to the So days I QX. tell in QX days year, would XX%, and that as

quarter February. year, adding in and Charlotte on. As past going days in Dominion like in with were markets are our the -- this Richmond, Park, January with we in Those we fourth our Kings Park already last announced days late

call. on mentioned they're we number that -- the that So that in I

first days a QX. of QX close XX% have days, be little in to days. those of be pretty bit shift a year. may about So it's should flat. QX more QX, few operating incremental probably half And comparable calendar but then the There'll there, of in the but

we're doing to to additive Richmond In We'll little right of to days it. flow. add always But looking results be we years now we Charlotte, that that. the expected cash what that a I come like give There's add we're always right? are terms in would the run. we're and of see it couple bit out if looking a days, that characterize tests of accretive, to of and

to about finding it's products for season more sell with and when WinterFest us for to like and some started look October with those to push higher in ago November that September we the point, adding days opportunities and events attendance along with we then As more at top late things. finding much opportunities events, all-season visit guests and Halloween and go some we revenue did December years line passes and

fully adding will accretive. we expect So the we're be days

Richard days business back be is youth those XXXX out the days there. and noted, That to of the in QX, we we knew bookings. the returning just side Some are of school as going expectation in heavy that tied in and wasn't our business took to spring, because group of of system

days putting in. back of Some is this those about

question. just second a Okay. That's helpful. And then

what we pricing some it. in us highest Richard, how I think general but think, past you prestige should Or give know it product, that? entail? And is referenced about the we speaking, maybe that pass called of is should what the benefits you overview how a it's admissions to I generally that? of the of pass, XX% think now? I about just your to phase, Maybe the premium right just of think test

layered VIP things From a access that We've done value basis. some in perspective, of we've of lounges, like a research. to product lot on a daily special FastLane, benefits, limited

that us different. levels layered told varies that are consumers we've value. pricing the So the because in it We're if the and really -- demand things research has again, part our by part our

low can test But XXXs, XXXs the a we -- you've prestige point, to the we're what got if XXX-ish platinum, the somewhere is on priced trying pass new our price XXXs. is low in

terms as what Brian a what concepts, really said, of and premium a premium guests our in of and really the are, experiences, testing just is So different product -- we're it both set benefits value. but

see things to has the early we I this been our But as we -- you've This test think the encouraging. and we years, customer. look really several the us very past that continue is over And said, through. seen is really it's audience, response we innings. what you'll different the segment as go early as think I So to benefit-oriented found,

find design to continue we and a benefits, create to different there. there's market ways As ready

of Your Wold from Riley the from B. Securities. comes next question Eric line

question asked. been The have

the days adding to one, X of on quick understand going days just days. I back of actually ones. back will we're prior hopefully kind last any some Just have flat question from that or that operating year? will day year. year from removed? remove Or every I up in this Are operating guess, of either terms parks park around that there system that is be the last

to say, that would And in but look terms at up that I let I with flat Brian. of it's we'll extent see for Eric, part, open it, the it operating it, days, to be weather most that's me caveat the save planned. will it go right? back. When could in down. the plays rains California, example, costs, shut Great park we is parks to day some every into as

in days where And would several park so but change part, a an most that 'XX unplanned may we more and than macro responsive have to the end might events. for be up fewer 'XX

Or pressures. question consumers? will you you it. look talked there and pricing inflationary to then know pricing you margins. taking run of from cases going last where price really hitting willing to actually up pressure? eat And just to fast pricing always Got you're about or where I the on above margin where in keep you need watching Are to in maybe the longer front short the maybe too inflationary any

Good question, Eric.

answer this helps. I think if it I'll way, see

challenges the scenario portfolio I just price level at of very think that of is of we had right? the standpoint we've when one able laid into you this that is exactly difficult. inflation the look the being the From to parks, out

that when because are case or you're levels, high demand people million entertaining levels they've XX-plus even million million such able or the or Our of people four attendance to absorb got parks people. right? not bigger So three

base. take to price you hard. that been attendance have It's got much because as don't You of the leverage

we inflation, base. kind We eaten have our need the of without at eroding the couldn't take parks price a we particularly mid-tier it lot to fully offset increases of the because attendance would

doing three on in increasing we're price parks, that. I to or push through kind of calls the that said why might think already take I order So we've of think That's seen. previous we've mid-tier inflation two these it that years years

very come don't So Hopefully, this and to a it at just With been the that everything and we've margin. revenue. undertaking careful underscore real. margin just of of to we the across top importance that attendance about the do we improve you be line number efforts that's want It's scenario have the to critical not metric ultimately again, are call to us, on us. said, for for outlined, detriment that

Paul Golding the [Operator Instructions] line from Your next question Capital. of Macquarie from comes

to to we lower extra about the quarter the with charge. the year. wanted noticed press I the noted to levels year per of products. in parsing are cap about go just charge here. some ask release, impacting where But and we're now extent. can you some extra per offsetting on talking Congrats in about wanted I higher-tier I caps ask growth throughout

Is it a matter going charge basis versus year used we then will of that bundling, extra testing per continue some how forward? to reflect expect the I language actually think right should follow-up. help we you're And a caps have and for what the And about should now? full

Yes, certain, it's Brian. Paul,

is can on just past product down notable focused So most sold X%. been most is the really fact impacted attendance core the of that still charge factors. the Fast is busiest this is has shortfall the couple a The a about extra Fastlane. that's comment by one year is experience on premium right? about We're negatively -- And in probably as Lane, appreciate, core primary that right? you down, days, Fastlane

So there's lines lines people XX,XXX. at situations, longer only so want been might in a certain and the park, the XX,XXX we've in days in more those With those are Fast those higher avoid for some being to people got parks, lane XX,XXX demand group because lines. have when disrupted

. And little impacted there. a bit was so demand the

able were was encouraging. into still which We to price Fast Lane,

get that as fully that for historical attendance and expect to we to those Fastlane continue as demand return would historical we well. will So to levels its increase back levels,

a and little bit, more part this it piece other impacted The is that specific.

tractions couple service. Fast We had that had driver type parks lane in out the of key a of system

lot park. capacity, takes to rides your It's demand takes of That's Maybe notably, operation out. it's an of some it our was some demand. 'XX. drags out, point, not total in most and it one a having it and for demand of that in lot So capacity also highest a

broadly that, experiences. fact, of couple Richard want us against noted, premium reflective But the there. of a don't working I as speaking, things that's think guests So

introduce for of to fastest-growing revenue in the different whether cabanas of demand high front VIP water the sources are or so And they're they're spending. the we lounges they in-park tour, to whether parks those, the line parks. to continue be some and VIP Those a experience, ways find whether continue in in

Got it.

offering so a equal product So from maybe all guiding. we're qualitatively, else perspective, not

You as just extra line attendance Fast would say the 'XX of that and you would to function expect charge in of a an improve congestion? versus 'XX category

a that's say statement, would fair yes. I

operating a XX on in days 'XX Great. to expected. And then as day, XX the follow-up more operating

-- you've here normalize basis, should longer-term on for I'm how and the made about a year full maybe just now group were group versus you've a out, taken of weather think sort out more any we squeeze pivot you operating of more base? to we days As relative 'XX? wondering, out that and calendar days a that that calendar that How you days added the there days sort are how asset beyond capacity that laid timing employed have is the back. may to fully of can think the and Are

Yes. opportunities the in -- days. I evaluate say, want sort that give to to Paul, add continue I would done. impression that system we operating these will once don't to the days with we're of

there's parks potentially I six introduce to parts have, the other an that as of event, to our with too. before, still find we system mentioned WinterFest in events, example, As only opportunities

we'll opportunities adding will days they expanding and and the consider So those economic calendar. to sense, evaluate financial testing, or piloting continue we where those make

Crockett from Barton from Securities. of question comes next Your line the Rosenblatt

fore and the estate in that's ask I about to industry buildings. come wanted and land you to the with real fires

little have You kind Northern real version California obviously, with a of monetizing of done, bit park. a estate guys your of

think degree than the what are shutting with in theme some ways. or not To peers? think How obviously do other -- park things do you're differently positioned necessarily, down you regional at you really you do there parks similarly other not or much opportunity opportunities your more to positioned land, look think of but

We Thanks Richard. strategy from Great transaction all not a back, properties at in ownership we of in in I said When really the it's of think for controllership economics. We think a America maintaining what the operate. question. was value circumstances. shift us. Barton, synergistic set really time, indicative unique of the we That's great the call there's

cost we to capital Valley our over America do -- investment the the a real marry with such such unique we versus cash and ability long Silicon the that. high We in we middle of put was value in given a versus what the the to of estate it's flow term drive returns. Great we generate that could thought the case

investing at we'll But XX% believe are as parks And said there be there driving got large, our pieces. in we -- things most our if remarks, are and small I portfolio, and the that our and that that of marrying we've demand. in EBITDA. So driving by look -- five our may in drive investment my and in parks big

want possible. through talked of And want to mid-tier think in that. success. as drive that much We we've capture don't we rotate we about, can as we we their long-term continue to partner the parks to as then Obviously,

on outlook real change estate. no So our significant in

that? that because of you EBITDA point? Where this $XX ambition around curious that XXXX stand pandemic, I And think with a that that type million ambition, was number, at I now then Okay. do about guys level, withdrawn. Any thoughts had before the was things

we're -- point, right to we current concerns not don't now. reinstate the macroeconomic guidance going market -- this I this At given time. sure we're is guidance and continue any credit to at to believe But uncertainties us don't the to the planning the in environment, that We'll want give appropriateness future. providing not the of the review around

at the no as to call, about moment, guidance relay the time. but give the for reinstate seeing, we're point, to on going this at to which we're said everything health indicators an business, continue this this So update we our of plans is but -- encouraging throughout

just final then And Okay. one thing.

at look your source a per I of strength. with year-over-year caps as Just fourth tenants the quarter kind flat of

people the may of fatigued. be lot just think wondering getting I a if consumers are

back of about the do the like the the of shut that? A talk that people Disney maybe people inflation of XXXX? Parks and in they any of little you and some causing opportunity after concerned Theme to price have attendance to pandemic the party just you doing of big going feel Do How about the not be were. fading down like kind with sensitive out is fun normal into or some maybe sense going things may lives bit things anything

So in focus in understand what while different is throughout such Barton, markets of strength. saying all of a kept operate is the region we great saw we was different. And the each We consumer we XXXX. And question. -- on it economically health substantial

of see drive We in ultimately plank the parks a program key strategy the continue value, spending and to sustainability our as to drive cash free our our flow. of

haven't it. seen We

as We my mentioned in remarks, see, I to leading continue indicators earlier our encouraging. are

and you go our want So my forward. we're as to to don't have to at cash revenues, confidence a I'll drive and in mistake going answer it, continue we our look to ability business and to back model optimistic of guidance, free very I and flow -- lot EBITDA

So to health other we're not consumer, resale the as be of and track you consumer spending, the willing sales we're a not if things. -- anything, the seeing not seeing

see spending. We is that consumer continue to the

haven't though behavior even limited park, change seen any operations. we throughout in So our broadly in we're

So else, seems pending. like but is we're and consumer watching it like healthy is the everybody

further this And final back over the at time. some questions I there are Zimmerman, you Richard closing no Mr. turn remarks. to call for

you Cedar for your interest in Fair. Thanks, all Rob, and thank

in For and the JP will Loews, community, be City Miami Morgan hosted New at Miami City. in at banking analyst York Macquarie three by participating conferences Turnberry, in March, we

to If to will you of of we our will keep Otherwise, a one there. chance you visit seeing attending, apprised progress. our you're and Michael? look this hope have season, you forward we parks we

Please XXX Thanks at contact Relations Department (XXX) our Investor everybody. free feel again, to XXXX.

call. 'XX that quarter results. of be release held first Rob, today's May after . our will call next the in Our concludes

conference for This participation. you Thank your concludes call. today's

may You now disconnect.