Six Flags Entertainment Corporation 2020 ANNUAL REPORT 1000 Ballpark Way Arlington, Texas 76011 972-595-5000 www.sixflags.com Dear Fellow Stockholders: This past year has been exceptionally challenging as the world contends with a pandemic that has upended all our lives. We are grateful for the first responders who keep us safe, and for those who provide basic services we all count on every day. We are proud that been able to make a difference in the communities we serve by hosting vaccination sites and testing locations, as well as donatingthe to food banks for thosethat in need. Our talented team members demonstratedSix theirFlags dedication, has perseverance, and resilience as they found ways to entertain millions of guests by operating our parks at the highestby levels of safety and cleanliness. hey helped families and friends connect, lifted morale, and made our guests’ days brighter during a difficult time. In so doing, t While 2020 had its challenges, it also to reflect on our purpose and core values our guests want to rid our thrilling roller coaster and eat our funnel cakes they just want to be easier. Therefore,encouraged we us embarked upon a transformationon our agenda to modernizeWe theknow guest experiencecontinue and to to operate moree efficiently leveraging technologys delicious . the process have Our Mission, Vision and Values by in every aspect of what we do Six Flags’ mission is to create fun and thrilling memories for all. Our vision is to be the preferred regional destination for entertainment. Our core values prioritize safety and the guest experience, and drive accountability throughout the organization. We are committed to prioritizing the guest at every decision point, and to making investments in our technology and people . Together with our new strategic direction, we believe these investments will ultimately drive enhanced long- term value for our stakeholders. that will underpin the guest experience The health and safety of all our stakeholders remain paramount, and we are dedicated to operating the company in a sustainable and inclusive way. Advancing diversity and inclusion is a personal priority of mine, particularly when it comes to our leadership team. We want our organization to reflect the ethnicity and gender representation of the guests we serve . Our Strategy and believe it is good business to do so To reinvigorate profitable growth, we have reassessed every aspect of our business, and together, we have developed an updated strategy to ensure that we constantly evolve so we not only meet, but exceed, our guests’ expectations. This new strategy is evolution focus on strengthening our core business to drive long-term profitable growth. We will be doing many of the same things we did in the past, but we are going to do them better:an rather than a revolution, as we Our strategy is to create thrilling, memorable experiences within our portfolio of regional parks, delivered by a diverse and empowered team, through industry-leading innovation and technology To support this strategy, we have developed three focus areas: Modernizing the Guest Experience through Technology We will create a seamless in-park experience with new and improved applications of technology, and opportunities for special, personalized interactions in our parks. We will decrease wait times wherever possible, especially for our roller coasters, where we are testing several virtual queueing and reservation applications. We will facilitate our guests’ ability and desire to share their experience on social media. We will also improve food and beverage quality and the overall appearance of our parks. In everything we do, we will prioritize the guest experience. The key performance indicators for this focus area will be attendance and revenue. Continuously Improving Operational Efficiency We will deliver products and services in a more cost– effective manner, including effectively deploying park level labor; leveraging our scale to increase purchasing power; and optimizing our ride portfolio. We are also focused on increasing guest throughput on our rides as well as our food and beverage locations. We have moved quickly to streamline our organization and reduce other fixed costs, and we expect to realize $30 to $35 million of fixed costs savings in 2021. The key performance metric for this focus area will be our operating expense ratio, which is the ratio of our operating expenses relative to our revenue Driving Financial Excellence We will be disciplined in we allocate capital to ensure we deliver long-term earnings growth. We have developed the following capital allocation priorities: how that . First, invest in our base business to facilitate profitable and sustainable growth. This includes investments in our park infrastructure, in technology for our parks, and in systems that help us oversee our park operations. This also includes investments in new rides and attractions, as well as other in-park offerings such as food and beverage. We expect to maintain our annual capital expenditures at 9 to 10 percent of revenue. Second, use free cash flow after capital expenditures to pay down debt and return our net leverage ratio to between 3 and 4 times. Third, once we are within our targeted leverage range, consider strategic acquisition opportunities that further build our regional network of parks. Finally, if there are no acquisition opportunities that meet our strategic and financial return thresholds, we will return excess cash flow to shareholders via dividends or share repurchases. The key performance indicator we will use for this focus area will be Adjusted EBITDA. The Road Ahead Each of our three focus areas is supported by specific and measurable i already completed significant portions of the revenue and cost initiatives that will benefit us in 2020, and expect the remaining portion of the transformation to be completed in 2021. nitiatives; we have We expect our transformation initiatives to create a new Adjusted EBITDA baseline of at least 530 million to 560 million dollars once we are operating in a normal business environment. e believe our strategy will allow us to grow revenue at low to mid-single digits, in line with the overall out of home entertainment industry. Combined with our annual productivityAfter we initiatives, achieve this we earningswill continuebaseline, tow invest back in our parks and improve margins to accelerate Adjusted EBITDA growth mid to high-single- - digits, and ensure sustainable value creation for our stakeholders. in order to On behalf of the directors, officers, and employees of Six Flags Entertainment Corporation, I would like to express our appreciation for your continued investment and support. Six Flags’ future is bright, and together we will create a meaningful new chapter in its history. Michael Spanos President and Chief Executive Officer UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2020 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 1-13703 SIX FLAGS ENTERTAINMENT CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of 13-3995059 incorporation or organization) (I.R.S. Employer Identification No.) 1000 Ballpark Way, Suite 400 Arlington, Texas 76011 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (972) 595-5000 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, $0.025 par value per share SIX New York Stock Exchange Preferred Stock Purchase Rights SIX New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act of 1993. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See definition of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company ☐ ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act by the registered public accounting firm that prepared or issued its audit report.