SIX
#Okay.
<UNK>, on the international revenue we booked about $6 million in the first quarter this year.
We did book a little bit from our new deal in Vietnam.
On the membership revenue question, we are not going to break out the per cap, but Q1 was benefited by the members who had completed their 12-month commitment period.
<UNK>.
Yes, just on the incremental international, as <UNK> said there was a portion of that that represented Vietnam, but the bulk really was Dubai and China.
On the membership point, <UNK>, as <UNK> said we don't really break that out in terms of how much of our active base is members versus season pass or break out our impacts on per caps.
What I would tell you though is, and what we have said in the past is that obviously the membership, particularly as they get to that 13 plus, we recognize that revenue on a monthly basis.
You do see a more positive impact to per caps in quarters like the first quarter were there was a lower attendance amount.
Obviously the membership was a driver of per cap growth in the first quarter.
And then your last question on compensation, there was a reallocation of some of the equity within the existing programs after the Management change, but it was basically a reallocation of that equity.
Yes, I think, <UNK>, you're looking for just the incremental year-over-year amount.
It was $2 million with incremental.
On international.
On international Q1 versus ---+ it was about $2.5 million Q1 this year versus last year.
Obviously we continued to do very well on memberships.
And as you look at the growth in our active base, that came from both season pass and members.
Obviously the contribution that we're getting from that recurring revenue stream once we go past that 13th month is also increasing.
But <UNK>, we do not break that amount out.
Yes, in terms of the deals, we do think that absolutely the more deals that we announce, the more exposure and other people come to us and see us as really a true value in partnering with in different areas of the world.
Yes, absolutely we do think that helps.
In terms of how they are sourced, <UNK>, it really starts with the fact that people know our brand outside the United States.
We did a study when we were looking at our original Dubai deal.
We did a study of the brand awareness outside the United States, and our brand ranked right below Disney on brand awareness, well above others in the industry.
Our brand is widely known, so I think it starts with that.
It also is the fact that they recognize that we are known for having the expertise to not only design and build parks but ultimately run parks effectively.
As people within these various countries see the opportunity for entertainment options in areas that have rising demographic trends, whether it be population or disposable income or lack of entertainment options, they look at Six Flags as a perfect partner.
I'm sorry, that was for the ---+
I think it is a combination of both.
Because as with any of our new capital, I think it draws excitement.
People that may not have visited our park for a few years want to come back and experience this.
I also think it is driving incremental visitation from people that regularly visit us.
I think one other big driver is it is just another reason why people want to buy a season pass.
Because as you think about this, our goal obviously is to migrate people from one-day tickets to a season pass.
It's all about showing them that they get a value of a season pass around multiple visits.
To the extent that we can introduce VR in the spring, introduce our other new capital in the summer, and then further enhance Fright Fest, enhance Holiday in the Park and add it to even more parks, giving people more reasons to come to the park multiple times during the year is really what is driving the season pass penetration.
The 3% to 5% is still the number.
It's all tickets: season passes and one-day tickets.
So it's in every ticket category we have raised prices.
<UNK>, as I mentioned before obviously our increase in our pass base has helped drive incremental revenue ---+ incremental tenants.
Also I think it is a fair point as you think about from a weather standpoint, I would say Q1 of this year was a much more normal weather quarter.
We did see some adverse weather last year in 2015 in the first quarter, particularly around in the spring break of our two Texas parks, which did obviously impact our attendance last year.
This year we did have much better weather at those two locations.
So I think weather did play a part in some of that attendance gain.
<UNK>, I can't get into the specifics around the deals that we have signed with let's say Samsung and VR coasters, but what I would tell you though is as you think about VR, it has very low CapEx associated with it.
Much lower than what you would typically see if you were to be building a brand new ride.
Once we actually put VR in place, we are able to replicate that at a fairly low cost at other parks.
The ultimate goal as you think about VR, this is one of the reasons why we are so excited with virtual reality, there are so many applications for VR, and right now we have launched it on three of our rides.
We talked about the fact that we're going to do it on six more rides in the second quarter.
But ultimately, the goal would be to ---+ a guest will go on a ride and be able to pick what experience they want on that ride.
They may be able to choose from three, four, or five different experiences.
You can add those at a very, very low cost.
Secondly, I think the applications for VR in areas like Fright Fest, where we'll be able to utilize that in our mazes, whereby it will be more like augmented reality where our guest would be able to go through a maze, see what is in front of them, but there will be a number of things coming at them.
Which ultimately should reduce our labor costs at a lot of our mazes and our haunted attractions.
Then HIP, Holiday in the Park, where we can utilize VR, say, for our train ride to basically transform what would be a typical train experience into a winter wonderland.
There is a lot of applications for VR, and they are all at a relatively low cost respectively.
And so yes, you're absolutely right, that should provide a nice lift on our ROIC.
There will be an impact on OpEx because clearly we need to add more labor as you think about the labor associated with getting the people queued up, getting the headsets on.
And then obviously we have people that clean every single headset in between use.
So there is some labor that's associated with that, but I would tell you it is fairly minimal.
And if you combine both the CapEx and the OpEx, it is much, much lower than having to invest millions of dollars in new rides.
I would say that range applies to Vietnam as well.
<UNK>, one of the reasons why we have the range is because not all parks are the same size.
It may be a smaller park, it might need to be towards the lower end of that range.
Some larger parks may be at the upper end.
But we make sure that we don't compromise any of our economics when we sign these deals.
All of our deals will fall within these ranges.
There are two parks in Vietnam, a theme park and a water park.
Because the water park is smaller it will be less, but if you think about the two parks together, it will be at the higher end of that range.
Sure.
I will start with the CapEx, then I will let <UNK> talk about the REIT, the ruling.
Again, as we think about CapEx, I talked previously about how we are very efficient and creative in terms of how we invest our capital dollars, and very disciplined to make sure that we keep to a certain percentage of revenue.
I think our ability to continue to grow revenue, particularly the international which doesn't require any CapEx, allows us to think about taking that down.
<UNK>, I'm not going to say specifically in terms of how low we think that we can get that.
Obviously as we see what translates into our international growth going forward and really what we can do, because VR is still in the infancy stage here, what we can do around VR, it's a little bit too soon to tell.
But I think what we are trying to say is that because of the growth drivers and some of the things that we have that require either no CapEx or minimal amounts of CapEx, I think we continue to take that down.
I don't think we're right now in a place where we can say exactly what that number is.
In terms of the NOLs, we have about $400 million still in our NOLs.
We anticipate paying minimal taxes through 2018.
Did that answer your question.
There really is no update, <UNK>.
I think as we talked about before, we have a ruling request into the IRS on the REIT, and think it would probably be inappropriate for us to comment on either the outcome or the timing of that.
We have not seen any impact whatsoever.
I would say that there continues to be a lot of opportunities around data and utilizing that data.
I think we've talked before about a few years ago that we hired a very strong research person that was well known in the industry.
He's built a team around him, so we are able to do a lot more today than we ever have been able to do in the past.
We do millions of guest surveys.
We utilize that data to not only enhance our capital, but also enhance our in-park offerings.
For example, we are working on adding sports bars to our parks.
We've done that at a couple of locations.
It has gone over very well.
More healthy food offerings, our all-season dining plan; all of this has come from really a lot of the research that was done and what guests are looking for when they come to our park.
We are also able to do a lot more price testing to see what pricing we can actually take across all of our ticket types, which has been extremely valuable for us.
We utilize the data around not only more dynamic type pricing, but also targeting our specific guests.
For example, maybe a guest may not have ---+ has got a season pass hasn't come to the park in three months, we target them with a specific email to encourage them to come back to the park.
Because obviously we want our season pass holders to come multiple times during the year.
We've been working on that.
I think that there is still tremendous opportunities as we think about all that data, particularly that data that comes from the surveys and the research that we do.
Good morning.
That is a great question.
We are actually very excited about our all-season dining pass.
The reason being is that we have seen very good penetration to date.
I'll tell you that it's still relatively low because we are in the early innings of that product.
But as you think about how many ---+ we have millions of season pass holders and members.
If we were to get a specific penetration around our all-season dining pass, think about that with millions of those pass holders at $70 to $90, which is what our all-season dining passes run, that is a ---+ if you got X percent of your season pass holders to buy that, that is a tremendous amount of growth in your revenue base.
We are extremely excited about it.
We continue to see a nice tick up in the overall penetration, but honestly, <UNK>, we think we still have a lot of legs around that product.
In terms of using data for all-season dining, we are using the data similarly to how we do the season passes.
We're using the same kind of approach, and it is a data-intensive approach.
We know when people buy, when they come, when they eat and all of that really helps us determine when to communicate and how to communicate to our guests.
And <UNK>, as you think about all of this data, particularly around the marketing is, we now have very specific data.
So we can actually see season pass purchases.
We can see where all of those people that are buying season passes are from, what zip code.
How many people are buying from X amount of miles from the park.
How many are more in the outer areas.
We can specifically target those people and can aggressively go after in certain areas that we may not have good penetration on season passes in the past.
Thank you.
Great.
I appreciate everyone joining the call, and in closing I would like to thank everyone.
I believe we are going to have a great season ahead of us, and I hope you have the opportunity to come out and visit one of our parks this season.
Take care.
