Six Flags Entertainment (SIX)

Risks

• General economic conditions may have an adverse impact on our business, financial condition or results of operations.
• Bad or extreme weather conditions and forecasts of bad or mixed weather conditions, which may be due to climate change, can adversely impact attendance at our parks.
• Conditions beyond our control could damage our properties and could adversely impact attendance at our parks and result in decreased revenues.
• Our operations are seasonal.
• Adverse litigation judgments or settlements resulting from legal proceedings in which we may be involved in the normal course of our business could adversely affect our financial condition or results of operations.
• Failures in, material damage to, or interruptions in our information technology systems, software or websites and difficulties in updating our systems or software or implementing new systems or software could adversely affect our business or operations.
• Cyber-attacks could have a disruptive effect on our business.
• Failure to keep pace with developments in technology could adversely affect our operations or competitive position.
• There is a risk of accidents occurring at our parks or competing parks which may reduce attendance and negatively impact our operations.
• Increases in labor costs and employee health and welfare benefits could have a negative impact on our cash flows, financial condition, and results of operations.
• We depend on a seasonal workforce to meet our operational needs.
• The theme park and waterpark industry competes with numerous entertainment alternatives and such competition may have an adverse impact on our business, financial condition or results of operations.
• We could be adversely affected by changes in consumer tastes and preferences for entertainment and consumer products.
• Our insurance coverage may not be adequate to cover all possible losses that we could suffer, and our insurance costs may increase.
• If we are not able to fund capital expenditures and invest in future attractions and projects in our parks, our revenues could be negatively impacted.
• Incidents involving food contamination, product recalls, product liability claims and associated costs could adversely affect our reputation and our financial condition.
• We may be unable to purchase or contract with third parties to manufacture theme park or waterpark rides and attractions.
• We may not be able to realize the benefits of our international agreements.
• Our leases contain default provisions that, if enforced or exercised by the landlord, could significantly impact our operations at those parks.
• Our intellectual property rights are valuable, and any inability or material increase in the cost to protect them could adversely affect our business.
• Unionization activities or labor disputes may disrupt our operations and affect our profitability.
• Our operations and our ownership of property subject us to environmental, health and safety, climate change, and other regulations, which create uncertainty regarding future expenditures and liabilities.
• A portion of our cash flow is required to be used to fund our substantial monetary obligations.
• Our existing debt agreements contain, and future debt agreements may contain, financial and other restrictions that limit our flexibility in operating our business.
• Changes in our credit ratings could adversely affect the price of Holdings’ common stock.
• Holdings is a holding company and is dependent on dividends and other distributions from its subsidiaries.
• Anti-takeover provisions in our organizational documents, debt agreements and Delaware law could delay or prevent change of control.
• We may not be able to attract and retain key management and other key employees.
• We may be subject to claims for infringing the intellectual property rights of others, which could be costly and result in the loss of intellectual property rights.