ARLINGTON, Texas–(BUSINESS WIRE)–Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company and the largest operator of water parks in North America, today reported second quarter Revenue of $444 million, Net Income of $21 million, and Adjusted EBITDA of $161 million.
“Following a year of transition, our strategy is taking hold. Despite a challenging weather backdrop in the first half of the year, we are seeing a return to a solid growth trajectory in attendance, revenue and earnings,” said Selim Bassoul, President and CEO. “I am pleased to see our team members executing so well towards our strategic objectives. Delighting our guests is our number one priority, and this season, we have invested significantly in park infrastructure and beautification, and we have introduced an exciting lineup of new events, including Flavors of the World and Summer Nights Spectacular. Looking ahead, we are optimistic about the remainder of the season, with major investments in our Oktoberfest Food Festival, Kids Boo Fest, Fright Fest, and Holiday in the Park events; and looking further ahead to 2024, we will be investing heavily in new marketable attractions, to further elevate our position as a leader in thrills.”
|
Second Quarter 2023 Results |
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Three Months Ended |
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(Amounts in millions, except per share data) |
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July 2, 2023 |
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July 3, 2022 |
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% Change vs. 2022 |
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Total revenue |
|
$ |
444 |
|
$ |
435 |
|
2 |
% |
|
Net income attributable to Six Flags Entertainment |
|
$ |
21 |
|
$ |
45 |
|
(55) |
% |
|
Net income per share, diluted |
|
$ |
0.25 |
|
$ |
0.53 |
|
(53) |
% |
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Adjusted EBITDA (1) , (3) |
|
$ |
161 |
|
$ |
154 |
|
5 |
% |
|
Attendance |
|
|
7.1 |
|
|
6.7 |
|
6 |
% |
|
Spending per capita figures (2) |
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|
|
|
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|
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|
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Total guest spending per capita |
|
$ |
60.76 |
|
$ |
63.87 |
|
(5) |
% |
|
Admissions spending per capita |
|
$ |
33.79 |
|
$ |
36.35 |
|
(7) |
% |
|
In-park spending per capita |
|
$ |
26.97 |
|
$ |
27.52 |
|
(2) |
% |
Total revenue for second quarter 2023 increased $8 million, or 2%, compared to second quarter 2022, driven by higher attendance and higher sponsorship and international licensing revenue, partially offset by lower total guest spending per capita. The increase in attendance was driven primarily by increased pass sales in second quarter 2023 versus the prior period.
The $3.11 decrease in total guest spending per capita compared to second quarter 2022 consisted of a $2.56 decrease in admissions spending per capita and a $0.55 decrease in in-park spending per capita. The decrease in admissions spending per capita was driven primarily by lower average pricing on season passes in second quarter 2023 versus second quarter 2022. The decrease in in-park spending per capita was driven primarily by lower spend on parking, retail, and flash passes, resulting from a higher mix of attendance from season passes in second quarter 2023 versus the prior year. Due to certain benefits available to season pass holders, guests visiting on a season pass spend less per visit on certain in-park products than guests visiting on a single-day ticket. The season pass mix-driven decline in in-park spending per capita was partially offset by higher food and beverage sales in second quarter 2023 versus the prior year.
The company had net income of $21 million in second quarter 2023, compared to net income of $45 million in second quarter 2022. The net income per share was $0.25 compared to net income per share of $0.53 in second quarter 2022, driven primarily by an increase in self-insurance reserves in second quarter 2023. Our self-insurance reserves are periodically reviewed for changes in facts and circumstances and adjustments are made as necessary. During the second quarter of 2023, we revised the estimate of our ultimate loss indications for both identified claims and incurred but not reported (“IBNR”) claims in connection with our general liability and worker’s compensation self-insurance reserves. The increase in our revised estimate was based on greater than previously estimated reserve adjustments on certain identified claims as well as an observed pattern of increasing litigation and settlement costs and changes to key actuarial assumptions utilized in determining estimated ultimate losses, including loss development factors. The change in estimate resulted in an increase to “selling, general and administrative expense” in our condensed consolidated statements of operation of $38 million during the three and six months ended July 2, 2023. The reduction in net income and net income per share were also driven by higher interest expense in second quarter 2023 versus prior year due to higher floating rate debt costs and increased borrowing under the revolver. Excluding the $38 million self-insurance reserves estimate adjustment, cash operating costs (4) increased by less than $1 million in second quarter 2023, driven by higher advertising expense and seasonal wages, offset by a reduction in full-time headcount and other cost-saving initiatives. Adjusted EBITDA in second quarter 2023, which excludes the $38 million self-insurance reserves estimate adjustment, was $161 million, a $7 million increase from the prior year (3).
|
First Half 2023 Results |
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Six Months Ended |
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(Amounts in millions, except per share data) |
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July 2, 2023 |
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July 3, 2022 |
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% Change vs. 2022 |
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|
Total revenue |
|
$ |
586 |
|
$ |
574 |
|
2 |
% |
|
Net loss attributable to Six Flags Entertainment |
|
$ |
(49) |
|
$ |
(20) |
|
N/M |
|
|
Net loss per share, diluted |
|
$ |
(0.59) |
|
$ |
(0.24) |
|
N/M |
|
|
Adjusted EBITDA (1) , (3) |
|
$ |
143 |
|
$ |
137 |
|
5 |
% |
|
Attendance |
|
|
8.7 |
|
|
8.3 |
|
4 |
% |
|
Spending per capita figures (2) |
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|
|
|
|
|
|
|
|
|
Total guest spending per capita |
|
$ |
64.46 |
|
$ |
66.21 |
|
(3) |
% |
|
Admissions spending per capita |
|
$ |
36.37 |
|
$ |
37.75 |
|
(4) |
% |
|
In-park spending per capita |
|
$ |
28.09 |
|
$ |
28.46 |
|
(1) |
% |
Total revenue for first half 2023 increased $12 million, or 2%, compared to first half 2022, driven by higher attendance and higher sponsorship and international licensing revenue, partially offset by lower total guest spending per capita. The increase in attendance was driven primarily by increased pass sales in first half 2023 versus the prior period.
The $1.75 decrease in total guest spending per capita compared to first half 2022 consisted of a $1.38 decrease in admissions spending per capita and a $0.37 decrease in in-park spending per capita. The decrease in admissions spending per capita was driven primarily by lower average pricing on season passes in first half 2023 relative to first half 2022. The decrease in in-park spending per capita was driven primarily by lower spend on parking, retail, and flash passes, resulting from a higher mix of attendance from season passes in first half 2023 versus the prior year. Due to certain benefits available to season pass holders, guests visiting on a season pass spend less per visit on certain in-park products than guests visiting on a single-day ticket. The season pass mix-driven decline in in-park spending per capita was partially offset by higher food and beverage sales in first half 2023 versus the prior year.
The company had net loss of $49 million in first half 2023, compared to net loss of $20 million in first half 2022. The net loss per share was $0.59 compared to net loss per share of $0.24 in first half 2022, driven primarily by a $38 million increase in self-insurance reserves in first half 2023, as discussed above in the second quarter 2023 results. The increase in net loss and net loss per share were also driven by higher interest expense in first half 2023 versus prior year due to higher floating rate debt costs and increased borrowing under the revolver. Excluding the $38 million increase in self-insurance reserves estimate adjustment, cash operating costs (4) in first half 2023 increased by $6 million driven by higher advertising expense and seasonal wages, partially offset by a reduction in full-time headcount and other cost-saving initiatives. Adjusted EBITDA in first half 2023, which excludes the $38 million self-insurance reserves estimate adjustment, was $143 million, a $6 million increase from the prior year (3).
As of July 2, 2023, the company had total reported debt of $2,352 million, and cash or cash equivalents of $52 million. In second quarter 2023, the company repaid $94 million in aggregate net principal amount of debt. Deferred revenue was $177 million as of July 2, 2023, an increase of $6 million, or 3%, from July 3, 2022. The increase was primarily due to higher season pass sales year-to-date through July 2, 2023 versus July 3, 2022. In first half 2023, the company invested $67 million in new capital, net of insurance recoveries.
Conference Call
At 7:00 a.m. Central Time today, August 10, 2023, the company will host a conference call to discuss its second quarter 2023 financial performance. The call is accessible through either the Six Flags Investor Relations website at investors.sixflags.com, or by dialing 1-833-629-0614 in the United States or +1-412-317-9257 outside the United States and requesting the Six Flags earnings call. A replay of the call will be available on the company’s investor relations site investors.sixflags.com.
About Six Flags Entertainment Corporation
Six Flags Entertainment Corporation is the world’s largest regional theme park company with 27 parks across the United States, Mexico and Canada. For 63 years, Six Flags has entertained hundreds of millions of guests with world-class coasters, themed rides, thrilling water parks and unique attractions. Six Flags is committed to creating an inclusive environment that fully embraces the diversity of our team members and guests. For more information, visit www.sixflags.com.
Forward Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding (i) the effect, impact, potential duration or other implications of the COVID-19 pandemic or virus variants, and any expectations we may have with respect thereto including the continuing efficacy of the COVID-19 vaccines, (ii) the adequacy of our cash flows from operations, available cash and available amounts under our credit facilities to meet our liquidity needs, including in the event of a prolonged closure of one or more of our parks, (iii) our ability to execute our strategy to significantly improve our financial performance and the guest experience, (iv) expectations regarding consumer demand for regional, outdoor, out-of-home entertainment, including for our parks, and (v) expectations regarding our annual income tax liability and the availability and effect of net operating loss carryforwards and other tax benefits.
Forward-looking statements include all statements that are not historical facts and often use words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “may,” “should,” “could” and variations of such words or similar expressions. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. These risks and uncertainties include, among others, factors impacting attendance, such as local conditions, natural disasters, contagious diseases, including COVID-19 and Monkeypox, or the perceived threat of contagious diseases, events, disturbances and terrorist activities; regulations and guidance of federal, state and local governments and health officials regarding the response to COVID-19 or other health emergencies such as Monkeypox, including with respect to business operations, safety protocols and public gatherings; economic impact of political instability and conflicts globally, including the war in Ukraine; recall of food, toys and other retail products sold at our parks; accidents or incidents involving the safety of guests and employees, or contagious disease outbreaks occurring at our parks or other parks in the industry and adverse publicity concerning our parks or other parks in the industry; availability of commercially reasonable insurance policies at reasonable rates; inability to achieve desired improvements and our financial performance targets; adverse weather conditions such as excess heat or cold, rain and storms; general financial and credit market conditions, including our ability to access credit or raise capital; the increased cost of capital due to raising interest rates; macro-economic conditions (including supply chain issues and the impact of inflation on customer spending patterns); changes in public and consumer tastes; construction delays in capital improvements or ride downtime; competition with other theme parks, water parks and entertainment alternatives; dependence on a seasonal workforce; unionization activities and labor disputes; laws and regulations affecting labor and employee benefit costs, including increases in state and federally mandated minimum wages, and healthcare reform; environmental laws and regulations; laws and regulations affecting corporate taxation; pending, threatened or future legal proceedings and the significant expenses associated with litigation; cybersecurity risks; and other factors could cause actual results to differ materially from the company’s expectations, including the risk factors or uncertainties listed from time to time in the company’s filings with the Securities and Exchange Commission (the “SEC”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we make no assurance that such expectations will be realized and actual results could vary materially. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual and Quarterly Reports on Forms 10-K and 10-Q, and our other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investors.sixflags.com and on the SEC’s website at www.sec.gov.
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Footnotes |
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(1) |
See the following financial statements and Note 4 to those financial statements for a discussion of Adjusted EBITDA (a non-GAAP financial measure) and its reconciliation to net income (loss). |
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(2) |
We use certain per capita operational metrics that measure the performance of our business on a per guest basis and believe that these metrics provide relevant and useful information for investors because they assist in comparing our operating performance on a consistent basis, make it easier to compare our results with those of other companies and our industry and allows investors to review performance in the same manner as our management. |
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(3) |
During 2023, we reclassified the net pension-related expense (benefit) to “Other (income) expense, net”, in our consolidated statements of operations. This reclassification has been reflected in all periods presented. As a result, Adjusted EBITDA for the three-month period and the six-month period ended July 3, 2022, declined by $1.6 million and $2.8 million, respectively, as compared to the previously reported figures. |
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(4) |
“Cash operating costs” includes operating expenses (excluding depreciation and amortization) and selling, general and administrative expenses (excluding stock-based compensation). |
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Statement of Operations Data |
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Three Months Ended |
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Six Months Ended |
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Twelve Months Ended |
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|
|
July 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3, 2022 |
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|
(Amounts in thousands, except per share data) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
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|
(unaudited) |
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|
Park admissions |
|
$ |
238,963 |
|
|
$ |
241,777 |
|
|
$ |
315,266 |
|
|
$ |
314,764 |
|
|
$ |
735,917 |
|
|
$ |
820,914 |
|
|
Park food, merchandise and other |
|
|
190,792 |
|
|
|
183,081 |
|
|
|
243,578 |
|
|
|
237,350 |
|
|
|
577,193 |
|
|
|
662,680 |
|
|
Sponsorship, international agreements and accommodations |
|
|
13,952 |
|
|
|
10,564 |
|
|
|
27,053 |
|
|
|
21,415 |
|
|
|
57,494 |
|
|
|
45,029 |
|
|
Total revenues |
|
|
443,707 |
|
|
|
435,422 |
|
|
|
585,897 |
|
|
|
573,529 |
|
|
|
1,370,604 |
|
|
|
1,528,623 |
|
|
Operating expenses (excluding depreciation and amortization shown separately below) |
|
|
173,669 |
|
|
|
173,357 |
|
|
|
282,539 |
|
|
|
283,076 |
|
|
|
590,123 |
|
|
|
652,947 |
|
|
Selling, general and administrative expenses (excluding depreciation and amortization shown separately below) (1) |
|
|
90,448 |
|
|
|
53,498 |
|
|
|
134,695 |
|
|
|
92,755 |
|
|
|
203,798 |
|
|
|
218,126 |
|
|
Costs of products sold |
|
|
34,787 |
|
|
|
35,710 |
|
|
|
44,552 |
|
|
|
45,825 |
|
|
|
106,873 |
|
|
|
125,144 |
|
|
Depreciation and amortization |
|
|
28,910 |
|
|
|
27,537 |
|
|
|
58,024 |
|
|
|
56,586 |
|
|
|
118,562 |
|
|
|
114,135 |
|
|
Loss on impairment of park assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,943 |
|
|
|
— |
|
|
Loss (gain) on disposal of assets |
|
|
2,550 |
|
|
|
98 |
|
|
|
4,985 |
|
|
|
(2,002 |
) |
|
|
10,914 |
|
|
|
8,896 |
|
|
Operating income |
|
|
113,343 |
|
|
|
145,222 |
|
|
|
61,102 |
|
|
|
97,289 |
|
|
|
323,391 |
|
|
|
409,375 |
|
|
Interest expense, net |
|
|
43,495 |
|
|
|
35,978 |
|
|
|
79,797 |
|
|
|
73,508 |
|
|
|
147,879 |
|
|
|
149,476 |
|
|
Loss on debt extinguishment |
|
|
13,982 |
|
|
|
17,533 |
|
|
|
13,982 |
|
|
|
17,533 |
|
|
|
13,982 |
|
|
|
17,533 |
|
|
Other (income) expense, net |
|
|
(2,261 |
) |
|
|
(722 |
) |
|
|
(3,093 |
) |
|
|
(1,410 |
) |
|
|
(1,767 |
) |
|
|
6,348 |
|
|
Income (loss) before income taxes |
|
|
58,127 |
|
|
|
92,433 |
|
|
|
(29,584 |
) |
|
|
7,658 |
|
|
|
163,297 |
|
|
|
236,018 |
|
|
Income tax expense (benefit) |
|
|
13,807 |
|
|
|
24,716 |
|
|
|
(4,045 |
) |
|
|
5,603 |
|
|
|
37,312 |
|
|
|
57,838 |
|
|
Net income (loss) |
|
$ |
44,320 |
|
|
$ |
67,717 |
|
|
$ |
(25,539 |
) |
|
$ |
2,055 |
|
|
$ |
125,985 |
|
|
$ |
178,180 |
|
|
Less: Net income attributable to noncontrolling interests |
|
|
(23,766 |
) |
|
|
(22,325 |
) |
|
|
(23,766 |
) |
|
|
(22,325 |
) |
|
|
(46,092 |
) |
|
|
(43,208 |
) |
|
Net income (loss) attributable to Six Flags Entertainment Corporation |
|
$ |
20,554 |
|
|
$ |
45,392 |
|
|
$ |
(49,305 |
) |
|
$ |
(20,270 |
) |
|
$ |
79,893 |
|
|
$ |
134,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
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Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
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Basic: |
|
|
83,379 |
|
|
|
84,992 |
|
|
|
83,293 |
|
|
|
85,594 |
|
|
|
83,209 |
|
|
|
85,789 |
|
|
Diluted: |
|
|
83,796 |
|
|
|
85,242 |
|
|
|
83,293 |
|
|
|
85,594 |
|
|
|
83,482 |
|
|
|
86,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Income (loss) per average common share outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic: |
|
$ |
0.25 |
|
|
$ |
0.53 |
|
|
$ |
(0.59 |
) |
|
$ |
(0.24 |
) |
|
$ |
1.47 |
|
|
$ |
1.57 |
|
|
Diluted: |
|
$ |
0.25 |
|
|
$ |
0.53 |
|
|
$ |
(0.59 |
) |
|
$ |
(0.24 |
) |
|
$ |
1.47 |
|
|
$ |
1.56 |
|
|
(1) |
Includes stock-based compensation of $2,179 and $3,223 for the three-month periods ended July 2, 2023, and July 3, 2022, respectively, stock-based compensation of $5,493 and $7,448 for the six-month periods ended July 2, 2023 and July 3, 2022, respectively, and stock-based compensation of $5,718 and $19,272 for the twelve-month periods ended July 2, 2023, and July 3, 2022. |
|
|
||||||||||||
|
|
|
As of |
||||||||||
|
|
|
July 2, 2023 |
|
January 1, 2023 |
|
July 3, 2022 |
||||||
|
(Amounts in thousands, except share data) |
|
(unaudited) |
|
|
|
|
(unaudited) |
|||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|||
|
Current assets: |
|
|
|
|
|
|
|
|
|
|||
|
Cash and cash equivalents |
|
$ |
51,580 |
|
|
$ |
80,122 |
|
|
$ |
74,802 |
|
|
Accounts receivable, net |
|
|
93,077 |
|
|
|
49,405 |
|
|
|
70,473 |
|
|
Inventories |
|
|
43,172 |
|
|
|
44,811 |
|
|
|
47,531 |
|
|
Prepaid expenses and other current assets |
|
|
84,808 |
|
|
|
66,452 |
|
|
|
69,990 |
|
|
Total current assets |
|
|
272,637 |
|
|
|
240,790 |
|
|
|
262,796 |
|
|
Property and equipment, net: |
|
|
|
|
|
|
|
|
|
|||
|
Property and equipment, at cost |
|
|
2,666,636 |
|
|
|
2,592,485 |
|
|
|
2,552,144 |
|
|
Accumulated depreciation |
|
|
(1,410,480 |
) |
|
|
(1,350,739 |
) |
|
|
(1,297,710 |
) |
|
Total property and equipment, net |
|
|
1,256,156 |
|
|
|
1,241,746 |
|
|
|
1,254,434 |
|
|
Goodwill |
|
|
659,618 |
|
|
|
659,618 |
|
|
|
659,618 |
|
|
Intangible assets, net of accumulated amortization |
|
|
344,153 |
|
|
|
344,164 |
|
|
|
344,176 |
|
|
Right-of-use operating leases, net |
|
|
154,182 |
|
|
|
158,838 |
|
|
|
180,836 |
|
|
Debt issuance costs |
|
|
6,110 |
|
|
|
2,764 |
|
|
|
3,832 |
|
|
Deposits and other assets |
|
|
20,737 |
|
|
|
17,905 |
|
|
|
8,101 |
|
|
Total assets |
|
$ |
2,713,593 |
|
|
$ |
2,665,825 |
|
|
$ |
2,713,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
|
|
|
|
|
|
|||
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|||
|
Accounts payable |
|
$ |
54,174 |
|
|
$ |
38,887 |
|
|
$ |
67,925 |
|
|
Accrued compensation, payroll taxes and benefits |
|
|
21,571 |
|
|
|
15,224 |
|
|
|
24,968 |
|
|
Self-insurance reserves |
|
|
68,633 |
|
|
|
34,053 |
|
|
|
37,017 |
|
|
Accrued interest payable |
|
|
33,216 |
|
|
|
38,484 |
|
|
|
24,713 |
|
|
Other accrued liabilities |
|
|
79,959 |
|
|
|
67,346 |
|
|
|
102,626 |
|
|
Deferred revenue |
|
|
176,811 |
|
|
|
128,627 |
|
|
|
171,238 |
|
|
Short-term borrowings |
|
|
169,000 |
|
|
|
100,000 |
|
|
|
200,000 |
|
|
Short-term lease liabilities |
|
|
11,730 |
|
|
|
11,688 |
|
|
|
11,394 |
|
|
Total current liabilities |
|
|
615,094 |
|
|
|
434,309 |
|
|
|
639,881 |
|
|
Noncurrent liabilities: |
|
|
|
|
|
|
|
|
|
|||
|
Long-term debt |
|
|
2,183,325 |
|
|
|
2,280,531 |
|
|
|
2,277,910 |
|
|
Long-term lease liabilities |
|
|
163,950 |
|
|
|
164,804 |
|
|
|
175,786 |
|
|
Other long-term liabilities |
|
|
29,077 |
|
|
|
30,714 |
|
|
|
5,476 |
|
|
Deferred income taxes |
|
|
172,849 |
|
|
|
184,637 |
|
|
|
152,041 |
|
|
Total liabilities |
|
|
3,164,295 |
|
|
|
3,094,995 |
|
|
|
3,251,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Redeemable noncontrolling interests |
|
|
544,764 |
|
|
|
521,395 |
|
|
|
543,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Stockholders’ deficit: |
|
|
|
|
|
|
|
|
|
|||
|
Preferred stock, $1.00 par value |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Common stock, $0.025 par value, 280,000,000 shares authorized; 83,464,774, 83,178,294 and 83,026,556 shares issued and outstanding at July 2, 2023, January 1, 2023 and July 3, 2022, respectively |
|
|
2,086 |
|
|
|
2,079 |
|
|
|
2,075 |
|
|
Capital in excess of par value |
|
|
1,109,779 |
|
|
|
1,104,051 |
|
|
|
1,103,534 |
|
|
Accumulated deficit |
|
|
(2,034,736 |
) |
|
|
(1,985,500 |
) |
|
|
(2,114,697 |
) |
|
Accumulated other comprehensive loss, net of tax |
|
|
(72,595 |
) |
|
|
(71,195 |
) |
|
|
(71,932 |
) |
|
Total stockholders’ deficit |
|
|
(995,466 |
) |
|
|
(950,565 |
) |
|
|
(1,081,020 |
) |
|
Total liabilities and stockholders’ deficit |
|
$ |
2,713,593 |
|
|
$ |
2,665,825 |
|
|
$ |
2,713,793 |
|
|
|
|
|
|
|
|
|
||
|
|
|
Six Months Ended |
||||||
|
|
|
July 2, 2023 |
|
July 3, 2022 |
||||
|
(Amounts in thousands) |
|
(unaudited) |
|
(unaudited) |
||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
||
|
Net (loss) income |
|
$ |
(25,539 |
) |
|
$ |
2,055 |
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
|
|
||
|
Depreciation and amortization |
|
|
58,024 |
|
|
|
56,586 |
|
|
Stock-based compensation |
|
|
5,493 |
|
|
|
7,448 |
|
|
Interest accretion on notes payable |
|
|
511 |
|
|
|
555 |
|
|
Loss on debt extinguishment |
|
|
13,982 |
|
|
|
17,533 |
|
|
Amortization of debt issuance costs |
|
|
2,889 |
|
|
|
3,965 |
|
|
Loss (gain) on disposal of assets |
|
|
4,985 |
|
|
|
(2,002 |
) |
|
Deferred income tax (benefit) expense |
|
|
(7,467 |
) |
|
|
726 |
|
|
Other |
|
|
(5,573 |
) |
|
|
(3,403 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
|
(Increase) decrease in accounts receivable |
|
|
(42,233 |
) |
|
|
27,327 |
|
|
Increase in inventories, prepaid expenses and other current assets |
|
|
(25,480 |
) |
|
|
(34,698 |
) |
|
(Increase) decrease in deposits and other assets |
|
|
1,315 |
|
|
|
(1,928 |
) |
|
Decrease in ROU operating leases |
|
|
5,614 |
|
|
|
5,517 |
|
|
Increase in accounts payable, deferred revenue, accrued liabilities and other long-term liabilities |
|
|
104,717 |
|
|
|
11,012 |
|
|
Decrease in operating lease liabilities |
|
|
(1,340 |
) |
|
|
(1,615 |
) |
|
Decrease in accrued interest payable |
|
|
(5,269 |
) |
|
|
(25,841 |
) |
|
Net cash provided by operating activities |
|
|
84,629 |
|
|
|
63,237 |
|
|
|
|
|
|
|
|
|
||
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
|
Additions to property and equipment |
|
|
(68,130 |
) |
|
|
(59,006 |
) |
|
Property insurance recoveries |
|
|
1,089 |
|
|
|
3,664 |
|
|
Net cash used in investing activities |
|
|
(67,041 |
) |
|
|
(55,342 |
) |
|
|
|
|
|
|
|
|
||
|
Cash flows from financing activities: |
|
|
|
|
|
|
||
|
Repayment of borrowings |
|
|
(1,028,623 |
) |
|
|
(360,000 |
) |
|
Proceeds from borrowings |
|
|
998,984 |
|
|
|
200,000 |
|
|
Payment of debt issuance costs |
|
|
(19,294 |
) |
|
|
(12,600 |
) |
|
Payment of cash dividends |
|
|
— |
|
|
|
(3 |
) |
|
Proceeds from issuance of common stock |
|
|
— |
|
|
|
1,665 |
|
|
Payment of tax withholdings on equity-based compensation through shares withheld |
|
|
(241 |
) |
|
|
(260 |
) |
|
Reduction in finance lease liability |
|
|
(498 |
) |
|
|
(490 |
) |
|
Net cash used in financing activities |
|
|
(50,000 |
) |
|
|
(269,018 |
) |
|
|
|
|
|
|
|
|
||
|
Effect of exchange rate on cash |
|
|
3,870 |
|
|
|
340 |
|
|
|
|
|
|
|
|
|
||
|
Net change in cash and cash equivalents |
|
|
(28,542 |
) |
|
|
(260,783 |
) |
|
Cash and cash equivalents at beginning of period |
|
|
80,122 |
|
|
|
335,585 |
|
|
Cash and cash equivalents at end of period |
|
$ |
51,580 |
|
|
$ |
74,802 |
|
|
|
|
|
|
|
|
|
||
|
Supplemental cash flow information |
|
|
|
|
|
|
||
|
Cash paid for interest |
|
$ |
83,031 |
|
|
$ |
95,141 |
|
|
Cash paid for income taxes |
|
$ |
6,892 |
|
|
$ |
1,661 |
|
Contacts
Evan Bertrand
Vice President, Investor Relations and Treasurer
+1-972-595-5180
[email protected]
