Cedar Fair’s cash flows from operations and credit facilities are expected to be sufficient to meet its working capital needs, debt service, and planned capital expenditures.
Six Flags’ per capita guest spending increased $2.79, or 7%, to $42.97 in 2014, primarily due to improved admissions pricing and new offerings in the parks.
Six Flags’ (SIX) admissions revenue per capita increased by 9% in 2014, primarily driven by pricing improvements on multi- and single-use ticket offerings.
Six Flags has $1.2 billion in revenue and 18 parks across North America. It operates 16 parks in the United States, one in Mexico City, and one in Montreal.
Six Flags’ fall in liquidity ratios is mainly due to the ~$460 million fall in cash and cash equivalents because of share repurchases and dividend payments.
As of January 15, 2015, Six Flags’ ROIC and WACC stood at 9.2% and 5.9%, respectively. This shows that Six Flags is employing its debt capital effectively.
Industry debt-to-equity ratio is about 5.5. Six Flags’ debt-to-equity ratio of 4.0 shows the company aggressively finances operations with debt capital.
Let’s look at why Six Flags Entertainment is profitable. Adjusted EBITDA was $429 million for the LTM, growing at 19.7% over a four-year period since 2009.
