Exhibit 99.1
SIX FLAGS NEWS
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FOR: SIX FLAGS, INC.
CONTACT: Jim Dannhauser, Chief Financial Officer
122 East 42nd Street
New York, NY 10168
(212) 599-4693
KCSA Joseph A. Mansi/Robert Greenberg
CONTACTS: (212) 896-1205 / (212) 896-1265
jmansi@kcsa.com / rgreenberg@kcsa.com
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FOR IMMEDIATE RELEASE
SIX FLAGS REPORTS SECOND QUARTER AND SIX MONTH RESULTS
AND COMMENTS ON FULL YEAR OUTLOOK
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NEW YORK, August 12, 2003 - Six Flags, Inc. (the "Company") (NYSE: PKS)
announced today its results of operations for the six months and quarter ended
June 30, 2003.
SIX MONTHS RESULTS
For the first six months of 2003, revenues from consolidated
operations were $381.6 million, compared to $397.1 million for the comparable
period of 2002, representing a 3.9% decrease, driven by a 3.9% decrease in
attendance at the consolidated parks. Total revenues per capita were flat to the
prior year. Excluding the New Orleans park, which was not owned in the 2002
period, revenue decreased by $26.4 million (6.7%) in the 2003 period, as a
result of an attendance decline at the consolidated parks of 7.2%, offset by a
0.6% increase in revenues per capita.
Operating costs and expenses, including depreciation and other
noncash charges, were $442.4 million in the 2003 six-month period, as compared
to $429.9 million in the 2002 period. Excluding depreciation and other noncash
expenses, cash operating costs and expenses were $363.1 million in 2003 and
$350.7 million in 2002. Excluding expenses at the New Orleans park,
11501 Northeast Expressway o Oklahoma City, Oklahoma 73131
o Tel: 405-475-2500 o Fax: 405-475-2555
122 East 42nd Street o 49th Floor o New York, New York 10168
o Tel: 212-599-4690 o Fax: 212-949-6203
SIX FLAGS REPORTS SECOND QUARTER RESULTS
AUGUST 12, 2002
PAGE 2
cash operating costs and expenses increased $1.3 million (0.4%) compared to the
comparable period of 2002.
EBITDA (Adjusted) from Consolidated Operations was $18.5 million in
the 2003 period as compared to $46.4 million in the 2002 period(1). Adjusted
EBITDA including Unconsolidated Operations for the 2003 period was $20.0 million
compared to $50.3 million in 2002.(1) Excluding the results of the New Orleans
park, Adjusted EBITDA would have been $20.2 million in the first six months of
2003.
Net loss applicable to common stock was $133.4 million in the first
six months of 2003. Excluding the $61.1 million loss arising out of the
cumulative effect of a change in accounting principle, the net loss applicable
to common stock was $125.1 million in 2002 ($186.2 million including the
cumulative effect).
THREE MONTH RESULTS
Revenues from consolidated operations for the 2003 second quarter
were $347.2 million, compared to $347.8 million for the comparable quarter of
2002, representing a 0.2% decrease. The 2003 performance reflects a decrease in
attendance at the consolidated parks of 1.9% during the 2003 quarter, largely
offset by a 1.7% increase in revenues per capita at the parks as well as the
inclusion of Six Flags New Orleans. Excluding the New Orleans park, revenue
decreased by $11.4 million (3.3%) in the 2003 quarter, on an attendance decline
of 5.6% and a 2.4% increase in revenues per capita.
Operating costs and expenses, including depreciation and other
noncash charges, were $292.8 million in the 2003 quarter and $278.0 million in
the year ago period. Excluding depreciation and other noncash charges, cash
operating costs and expenses were $252.9 million in the second quarter of 2003,
as compared to $238.2 million in the prior year quarter. Excluding expenses at
Six Flags New Orleans, cash operating costs and expenses increased $6.4 million
(2.7%) compared to the 2002 quarter.
EBITDA (Adjusted) from Consolidated Operations was $94.3 million in
the second quarter of 2003 compared to $109.6 in the 2002 quarter. Adjusted
EBITDA including Unconsolidated Operations for the second quarter of 2003 was
$103.1 million compared to $124.0 million in the second quarter of 2002.
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(1) See notes 1 and 2 to the following table for a discussion of EBITDA
(Adjusted) from Consolidated Operations, Adjusted EBITDA including
Unconsolidated Operations, and for a reconciliation of these amounts to net
loss. Additional reconciliations are contained on the Company's website
(www.sixflags.com) under the heading "about us/investors."
SIX FLAGS REPORTS SECOND QUARTER RESULTS
AUGUST 12, 2002
PAGE 3
Excluding the results of the New Orleans park, Adjusted EBITDA would have been
$100.6 million in the 2003 period.
Net loss applicable to common stock was $17.8 million in the 2003
quarter, compared to $11.5 million in the prior year quarter.
DISCUSSION AND OUTLOOK
"We have previously commented on the negative effect that the
persistent adverse weather and the continued economic weakness has had on our
performance through June 30," noted Kieran E. Burke, Chairman and Chief
Executive Officer of the Company.
"Performance during the calendar month of July did improve with the
benefit of less adverse weather in a number of domestic markets and a stronger
euro as compared to the prior year," continued Mr. Burke. "Including the
performance of the New Orleans park, systemwide attendance was up slightly to
the prior year for the month, and systemwide per capita revenues were up
approximately 2.2%. However, performance remained uneven in the month. Moreover,
we did not close the gap to prior year performance which existed at the end of
June to the extent we had hoped. Therefore, at Sunday, August 3, on a
year-to-date basis our attendance systemwide was approximately 4% behind last
year, 3.6% at the consolidated parks. Year-to-date park-level systemwide
revenues at that date were down approximately 2.9%, and revenues at the
consolidated parks were down 2.3% (approximately $15.5 million) from the prior
year.
"While there is still a substantial part of our operating season
remaining, we do not expect to be able to completely close the gap to the prior
year. As a result, we now anticipate full year attendance at the consolidated
parks of approximately 34.5-35.0 million, down approximately 1.75-3%, and total
revenues from consolidated operations of $1.025 billion, down 1.3%, from prior
year. Excluding New Orleans, same park attendance at the consolidated parks is
expected to be approximately 33.5-34.0 million, and revenues from consolidated
operations are expected to be approximately $1.0 billion.
"While we have continued to control our variable expenses, we have
experienced expected increases in certain fixed costs, such as insurance,
advertising and pension and medical benefits. As a result, we now expect for the
full year to achieve EBITDA (Adjusted) from Consolidated Operations of
SIX FLAGS REPORTS SECOND QUARTER RESULTS
AUGUST 12, 2002
PAGE 4
approximately $300 million and Adjusted EBITDA including Unconsolidated
Operations of approximately $325-330 million."
Six Flags, Inc. is the world's largest regional theme park company,
with thirty-nine parks in markets throughout North America and Europe.
The information contained in this news release, other than historical
information, consists of forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act. These statements may involve risks and uncertainties that could cause
actual results to differ materially from those described in such statements.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. Important factors, including
factors impacting attendance, such as local conditions, events, disturbances and
terrorist activities, risks of accidents occurring at the Company's parks,
adverse weather conditions, general economic conditions, consumer spending
patterns, and other factors could cause actual results to differ materially from
the Company's expectations. Reference is made to a more complete discussion of
forward-looking statements and applicable risk contained under the captions
"Special Note on Forward-Looking Statements" and "Business - Risk Factors" in
the Company's Annual Report on Form 10-K for the year ended December 31,2002,
which is available free of charge on the Company's website (www.sixflags.com)
This release and prior releases are available on the KCSA Public
Relations Worldwide Web site at www.kcsa.com.
(Table to follow)
SIX FLAGS REPORTS SECOND QUARTER RESULTS
AUGUST 12, 2002
PAGE 5
SIX FLAGS, INC.
STATEMENT OF OPERATIONS DATA
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2003
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
----------------------------------- ----------------------------------
JUNE 30, JUNE 30,
----------------------------------- ----------------------------------
2003 2002 2003 2002
----------------- ---------------- --------------- -----------------
Revenue $ 347,215 $ 347,812 $ 381,567 $ 397,063
Costs and expenses (excluding depreciation and other
noncash charges) 252,908 238,239 363,116 350,683
Depreciation and amortization 39,863 37,283 79,259 74,195
Noncash compensation expense 26 2,445 51 5,049
----------------- ---------------- --------------- -----------------
Income (loss) from operations 54,418 69,845 (60,859) (32,864)
Interest expense (net) (53,028) (56,479) (107,077) (116,444)
Early repurchase of debt (3) (27,592) (29,895) (27,592) (29,895)
Equity in operations of theme parks 3,951 9,944 (8,143) (5,232)
Other expense (270) (951) (310) (615)
----------------- ---------------- --------------- -----------------
Loss before income taxes (22,521) (7,536) (203,981) (185,050)
Income tax benefit 10,252 1,574 81,607 70,914
----------------- ---------------- --------------- -----------------
Loss before cumulative effect of an accounting change (12,269) (5,962) (122,374) (114,136)
Cumulative effect of an accounting change -- -- -- (61,054)
----------------- ---------------- --------------- -----------------
Net loss (12,269) (5,962) (122,374) (175,190)
================= ================ =============== =================
Net loss applicable to common stock (17,761) (11,454) (133,359) (186,175)
================= ================ =============== =================
Per Share:
Loss before cumulative effect of an
accounting change (0.19) (0.12) (1.44) (1.35)
Cumulative effect of an accounting change -- -- -- (0.66)
----------------- ---------------- --------------- -----------------
Net loss (0.19) (0.12) (1.44) (2.01)
Other Data:
Income (loss) per share excluding early repurchase of
debt, net of tax, and before cumulative effect of an
accounting change (3) (0.01) 0.08 (1.26) (1.15)
================= ================ =============== =================
EBITDA (Adjusted) from Consolidated Operations (1,2) 94,307 109,573 18,451 46,380
Adjusted EBITDA including Unconsolidated
Operations (1,2) 103,106 123,978 19,982 50,311
Average weighted shares outstanding - basic and diluted 92,617 92,455 92,617 92,445
SIX FLAGS REPORTS SECOND QUARTER RESULTS
AUGUST 12, 2002
PAGE 6
BALANCE SHEET DATA
(IN THOUSANDS)
June 30, 2003 December 31, 2002
------------- -----------------
(unaudited)
Total assets $ 4,388,901 $ 4,245,158
Current portion of long-term debt 148,415 20,072
Total long-term debt 2,333,271 2,293,732
Mandatorily redeemable preferred stock 280,556 279,993
Total stockholders' equity 1,268,067 1,359,692
# # #
1. EBITDA (Adjusted) from Consolidated Operations is defined as net
loss, before cumulative effect of an accounting change (in case of the 2002 six
month period), income tax benefit, other expense, equity in operations of theme
parks, early repurchase of debt (formerly extraordinary loss), interest expense
(net), depreciation, amortization and noncash compensation. Adjusted EBITDA
including Unconsolidated Operations is defined as EBITDA (Adjusted) from
Consolidated Operations plus (i) the Company's equity in operations of its four
unconsolidated parks and (ii) depreciation and amortization expense and
third-party interest and other non-operating expenses associated with those
parks. The Company believes that EBITDA (Adjusted) from Consolidated Operations
and Adjusted EBITDA including Unconsolidated Operations (collectively, the
"EBITDA-Based Measures") provide useful information to investors regarding the
Company's operating performance and its capacity to incur and service debt and
fund capital expenditures. The Company believes that the EBITDA-Based Measures
are used by many investors, equity analysts and rating agencies as a measure of
performance. In addition, restrictive covenants in the Company's senior credit
facility contain financial ratios based on EBITDA (Adjusted) from Consolidated
Operations. Adjusted EBITDA including Unconsolidated Operations is approximately
equal to "Consolidated Cash Flow" as defined in the indentures relating to the
Company's senior notes. Neither of the EBITDA-Based Measures is defined by GAAP
and neither should be considered in isolation or as an alternative to net income
(loss), net cash provided by (used in) operating, investing and financial
activities or other financial data prepared in accordance with GAAP or as an
indicator of the Company's operating performance.
SIX FLAGS REPORTS SECOND QUARTER RESULTS
AUGUST 12, 2002
PAGE 7
2. The following table sets forth a reconciliation of net loss to
EBITDA (Adjusted) from Consolidated Operations and Adjusted EBITDA included
Unconsolidated Operations for the periods shown (in thousands).
THREE MONTHS ENDED SIX MONTHS ENDED
-------------------------------- ---------------------------------
JUNE 30, JUNE 30,
-------------------------------- ---------------------------------
2003 2002 2003 2002
-------------- -------------- ------------- --------------
Net loss $ (12,269) $ (5,962) $ (122,374) $ (175,190)
Cumulative effect of an accounting change -- -- -- 61,054
Income tax (benefit) (10,252) (1,574) (81,607) (70,914)
Other expense 270 951 310 615
Equity in operations of theme parks (3,951) (9,944) 8,143 5,232
Early repurchase of debt (formerly extraordinary loss) (3) 27,592 29,895 27,592 29,895
Interest expense (net) 53,028 56,479 107,077 116,444
Amortization 347 287 693 563
Depreciation 39,516 36,996 78,566 73,632
Noncash compensation 26 2,445 51 5,049
-------------- -------------- -------------- --------------
EBITDA (Adjusted) from Consolidated Operations 94,307 109,573 18,451 46,380
Equity in operations of unconsolidated theme parks 3,951 9,944 (8,143) (5,232)
Depreciation and amortization of unconsolidated theme parks 4,196 3,694 8,402 7,791
Third party interest and other non-operating expenses of
unconsolidated theme parks 652 767 1,272 1,372
-------------- -------------- -------------- --------------
Adjusted EBITDA including Unconsolidated Operations 103,106 123,978 19,982 50,311
============== ============== ============== ==============
The following table shows Adjusted EBITDA including Unconsolidated
Operations for the three and six months ended June 30, 2003, adjusted by
excluding the EBITDA (Adjusted) attributable to Six Flags New Orleans in those
periods (in thousands).
Three Months Ended Six Months Ended
June 30, 2003 June 30, 2003
-------------------------- ------------------------
Adjusted EBITDA including Unconsolidated
Operations $ 103,106 $ 19,982
Less (add back): EBITDA (Adjusted) --
Six Flags New Orleans 2,542 (237)
-------------------------- ------------------------
$ 100,564 $ 20,219
SIX FLAGS REPORTS SECOND QUARTER RESULTS
AUGUST 12, 2002
PAGE 8
The Company is not able as of this date to provide a reliable
estimate of its income tax benefit and other income (expense) for the year ended
December 31, 2003. Therefore, a reliable estimate of its net loss for that year
is not available. Accordingly, the following table sets forth a reconciliation
of expected income from operations in 2003 to expected EBITDA (Adjusted) from
Consolidated Operations and expected Adjusted EBITDA including Unconsolidated
Operations for that year. Since the EBITDA-Based Measures are calculated before
income taxes and other expense, the absence of estimates with respect to these
items would not affect the expected EBITDA-Based Measures presented. Expected
interest expense (net) for the year is approximately $205,000,000 and expected
early repurchase of debt (formerly extraordinary loss) is approximately
$27,600,000.
Year Ending December 31, 2003
-----------------------------
Income from operations $ 140,000,000
Depreciation 158,500,000
Amortization 1,400,000
Noncash compensation 100,000
-----------------------------
EBITDA (Adjusted) from Consolidated Operations 300,000,000
Equity in operations of unconsolidated theme parks 11,065,000
Depreciation and amortization of unconsolidated theme parks 16,700,000
Third-party interest and other non-operating expenses of unconsolidated theme parks 2,235,000
-----------------------------
Adjusted EBITDA including Unconsolidated Operations 330,000,000
3. In April 2002, the FASB issued Statement No. 145 that eliminated
the extraordinary loss classification on early debt extinguishments, which had
been shown net of the related tax benefit. Consistent with that Statement, the
accompanying statements of operations data present the costs as a pre-tax item
under the line item "Early repurchase of debt." The per share data presented
under the caption "Other Data" shows the income (loss) before extraordinary item
that would have existed had this Statement not been adopted. For the six months
ended June 30, 2002, the per share amount is also shown before cumulative effect
of an accounting change. For the three and six months ended June 30, 2003, the
amount of the early repurchase loss was $27,592,000 with a related tax benefit
of $10,484,000. For the three and six months ended June 30, 2002, the amount of
the early repurchase loss was $29,895,000, with a related tax benefit of
$11,360,000.