Investor Presentation
June 2021
Disclaimer
Presentation includes forward looking statements about events and financial results
Actual events or results may be materially different
Risks are described in the company’s filings with the SEC
Statements are made subject to “safe harbor” provisions of Private Securities Reform Act of 1995
Full disclaimer and reconciliation of Non-GAAP financial measures to GAAP measures are at the end of this presentation
Presentation is subject to safe harbor laws
Investment thesis
▪ Stable in normal economy – resilient in a weak one
▪ Multi-year opportunity to benefit from pent-up demand
▪ All day fun
▪ Season pass and membership for all year fun
▪ Close to home; no air travel required
▪ Ride and park safety
▪ Long history of dominating thrills
▪ Innovation leader
▪ Experienced management team
▪ Signature events, including Fright Fest, Holiday in the Park
▪ Largest regional theme park operator in the world
▪ Largest operator of waterparks in North America
▪ Benefits of $80 to $110MM per year
▪ Adj EBITDA baseline of $530 - $560MM
▪ Modernize the guest experience through technology
▪ Continuously improving operational efficiency
Investment thesis
Company overview
Transforming our business
Strategy from the core
Experienced Leadership team
Trent Turner Vice President, Sales
Kelly Correia Vice President, Marketing
Mike Spanos President
and Chief Executive Officer
Sandeep Reddy Executive Vice President and Chief Financial Officer
Leonard Russ Senior Vice President, Operations Services Bonnie
Sherman Weber
Senior Vice President, Park Operations
Mark Kupferman Senior Vice President, Consumer and Guest Experience
Stephanie Borges Vice President,
Corporate Partnerships Sandra Daniels
Vice President, Communications and Diversity
Laura Doerre
Executive Vice President, General Counsel and Chief Administrative Officer
Rafael Sanchez Senior Vice President, Information Systems and Chief Information Office Stephen R. Purtell
Senior Vice President, Investor Relations, Treasury and Strategy
Choice for Regional Entertainment
Regional Theme Parks
Most parks in the world
Retail & Dining Concerts & Shows
Waterparks Games Events
More than 2,500 locations World-class entertainment
Most waterparks in NA Ancillary revenue opportunities Signature events
Strategically Located Parks
• $1.5 billion revenue
o 33 million guests o 50,000 employees
• 27 prime locations
o Top 10 DMAs in U.S.
o 200 million people within 150 miles
• Large Active Base of season pass holders and members
Investment thesis
Company overview
Transforming our business
Strategy from the core
Modernize the guest experience through technology
Continuously improve our operational
efficiency
Deliver financial excellence
Revenue uplift achieved through guest
experience, marketing, and in-park initiatives:
- Revenue Management - Admissions - Revenue Management – In-Park Spend - Media ROI
- Redesign website - Guest experience
Cost savings achieved through fixed and variable cost reduction:
- Org and operating model - Non-headcount cost reduction - Park Level Labor
Allocating achieved value based on business priorities
$30-40M in EBITDA value from revenue
$50-70MM in EBITDA value of which
$40-55MM independent of attendance
$80-110M in combined EBITDA value
Transformation drives $80-110M in EBITDA value when attendance levels normalize
Expected Impact
Revenue Management - Admissions
Maximizing offerings
Optimizing membership tiers Reevaluating payment terms Flash sale
Pricing throughout the year
Pricing relative to One Day Tickets
Optimizing pricing elasticities Evaluating options to bundle
Revenue Management – In-Park Spend
Merchandising Pricing Assortment
Media ROI & Website
Driving more guests to consider Helping guests find our site Simplifying purchasing
Continuously Improve our Operational Efficiency
Team Processes Technologies
Right sizing team structure
Building capabilities in corporate to support the parks
Developing scale across parks
Data-driven staffing in our parks to better serve our guests
Optimizing purchasing
Technologies that drive efficiency Better informed decision making
More effective communication
Investment thesis
Company overview
Transforming our business
Strategy from the core
Company Strategy
To create thrilling, memorable experiences at our regional parks, delivered by a diverse and empowered team, through industry-leading innovation and technology”
Modernize the guest experience through technology
Continuously improve operational efficiency
Deliver financial excellence
Our company strategy… … translates into three long-term focus areas
Modernizing the Guest Experience through Technology
Everything has to be easy.
Consistent with customer expectations.
All of our experiences have to work together:
Not a patchwork of disparate systems.
It has to be easy for a customer to get
exactly what they want, the way they want it.
All of the basics are included in admission.
But for just a little more, it can be better.
Reasons to stay longer.
Reasons to come back sooner.
Every guest feels like they got more than what they paid for.
FRICTIONLESS
SEAMLESS
EFFORTLESSLY CUSTOMIZABLE
INFINITELY UPGRADABLE
ADDICTIVE
GREAT GUEST ROI
Disciplined Allocation of Capital
Priority Level Focus
Top
Invest in base business at 9-10% of revenue during normalized operations:
• Park infrastructure
• Technology for our parks
• Systems to help oversee parks
• Food and beverage
• Marketable capital
Second Bring leverage ratio back to target range of 3-4x Adj EBITDA
Third Evaluate M&A opportunities of strategic relevance
Fourth
Return excess capital to shareholders
• Dividends
• share repurchases
Financial Excellence
• Industry-leading margins
• Adjusted EBITDA baseline of
$530-$560MM
o Once transformation plan implemented
o In normal operating environment
• Strong cash flow
• Favorable capital allocation strategy
• Platform for growth
o Revenue growth LSD - MSD o EBITDA growth MSD – HSD
527
-30 -20
-20 -20 13
450
80- 110
530 - 560
0 100 200 300 400 500
600 Resetting the base Reigniting future
growth
Summary
✓ Attractive Industry
✓ Exceptional brand and business foundation
✓ Substantial earnings growth through Transformation
✓ Strategy to drive sustainable growth from strong core
