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 THIRD QUARTER AND NINE MONTH RESULTS
AND CONFIRMS FULL YEAR OUTLOOK
o FULL YEAR PERFORMANCE EXPECTED AT TOP END OF
PREVIOUSLY ANNOUNCED RANGE
o STRONG OCTOBER PERFORMANCE
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NEW YORK, November 12, 2003 - Six Flags, Inc. (the "Company") (NYSE: PKS)
announced today its results of operations for the three months and nine months
ended September 30, 2003.
THREE MONTH RESULTS
Revenues from consolidated operations for the 2003 third quarter were
$565.5 million, compared to $558.1 million for the comparable quarter of 2002,
representing a 1.3% increase. The 2003 performance reflects a 2.9% increase in
per capita revenues in the quarter, offset in part by a decrease in attendance
at the consolidated parks of 1.8%. The 2003 performance also reflects the
inclusion of the New Orleans park (acquired on August 23, 2002) for the full
quarter. Excluding the New Orleans park from both periods, revenue from
consolidated operations decreased by $2.7 million (0.5%) in the 2003 quarter.
Operating costs and expenses, including depreciation and other
non-cash charges, were $297.3 million in the 2003 quarter and $280.3 million in
the year-ago period. Excluding depreciation and other non-cash charges, total
cash operating costs and expenses were $256.5 million in the third quarter of
2003, as compared to $239.1 million in the prior-year quarter. Excluding
expenses at Six Flags New Orleans for both periods, total cash operating costs
and expenses increased $13.3 million (5.6%) compared to the 2002 quarter.
SIX FLAGS REPORTS THIRD QUARTER RESULTS
NOVEMBER 12, 2003
PAGE 2
EBITDA (Adjusted) from Consolidated Operations was $309.0 million in
the third quarter of 2003 compared to $319.0 million in the 2002 quarter.1
Adjusted EBITDA including Unconsolidated Operations for the third quarter of
2003 was $332.6 million compared to $345.6 million in the third quarter of
2002.1
Net income was $140.2 million in the 2003 quarter as compared to
$139.7 million in the prior year quarter. Net income applicable to common stock
was $134.7 million in the 2003 quarter, compared to $134.2 million in the prior
year quarter.
NINE MONTHS RESULTS
For the first nine months of 2003, revenues from consolidated
operations were $947.1 million, compared to $955.2 million for the comparable
period of 2002. The 0.8% decrease in revenues from consolidated operations in
the 2003 period reflects an increase in per capita revenues of 1.7%, offset by a
decrease in attendance of 2.7% during the 2003 period. Excluding the New Orleans
park from both periods, revenue from consolidated operations decreased by $29.1
million (3.1%) in the 2003 period, with attendance down by 5.2% and per capita
revenues up by 2.2%.
Operating costs and expenses, including depreciation and other
non-cash charges, were $739.7 million in the 2003 nine-month period, as compared
to $710.2 million in the 2002 period. Excluding depreciation and other non-cash
expenses, total cash operating costs and expenses were $619.6 million in the
2003 period and $589.8 million in the prior-year period. Excluding expenses at
the New Orleans park for both periods, total cash operating costs and expenses
increased $14.6 million (2.5%) compared to the comparable period of 2002.
EBITDA (Adjusted) from Consolidated Operations was $327.4 million in
the 2003 period as compared to $365.4 million in the 2002 period.1 Adjusted
EBITDA including Unconsolidated Operations for the 2003 period was $352.6
million compared to $395.9 million in 2002. 1
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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 THIRD QUARTER RESULTS
NOVEMBER 12, 2003
PAGE 3
Net income was $17.8 million in the first nine months of 2003. Income
prior to the cumulative effect of a change in accounting principle was $25.5
million in the 2002 period. Net income applicable to common stock was $1.3
million in the 2003 period. Income applicable to common stock prior to the
cumulative effect of a change in accounting principle was $9.0 million in the
2002 period.
DISCUSSION
Kieran E. Burke, Chairman and Chief Executive Officer, stated, "While
our third quarter results reflect some continued impact of the economic slowdown
and other performance issues which we have previously addressed, we did see a
continuation of the improved performance trend which had begun to emerge in
July. This improved trend continued in our October operations, especially our
Halloween event, which was particularly strong. As a result, for the period from
July 28 through November 2, our systemwide park-level revenues were
approximately $23.0 million or 5.3% ahead of the prior year, driven by per
capita revenue growth of 3.1% and an attendance increase of 2.1%. We are
encouraged by the improvement in performance which we experienced in the latter
part of our operating season."
"All of our parks have now concluded their operating seasons, with
the exception of various weekend and holiday operations in four markets. We now
expect full year 2003 attendance at the consolidated parks of approximately 35.0
million, down approximately 1.6% from the prior year and total revenues from
consolidated operations of approximately $1.03 billion, down approximately 0.7%
from the prior year. We have continued to control our variable expenses, but
have experienced increases in certain fixed costs in areas such as insurance and
pension and medical benefits which we have previously described. Therefore, we
expect full year 2003 EBITDA (Adjusted) from Consolidated Operations of
approximately $300 million and Adjusted EBITDA including Unconsolidated
Operations of approximately $330 million, the top end of our previously
announced performance range."
"As for next year, we are planning to implement a capital investment
program entailing expenditures of approximately $75 million, including the
expenditures at our unconsolidated operations. We have ample available liquidity
and committed financing lines to pursue that plan, which we expect will enable
us to generate a significant level of free cash flow."
SIX FLAGS REPORTS THIRD QUARTER RESULTS
NOVEMBER 12, 2003
PAGE 4
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, 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.
(Tables to follow)
SIX FLAGS REPORTS THIRD QUARTER RESULTS
NOVEMBER 12, 2003
PAGE 5
SIX FLAGS, INC.
STATEMENT OF OPERATIONS DATA
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2003
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
------------------------------------ ---------------------------------
SEPTEMBER 30, SEPTEMBER 30,
------------------------------------ ----------------------------------
2003 2002 2003 2002
----------------- ---------------- ----------------- ---------------
Revenue $ 565,483 $ 558,099 $ 947,050 $ 955,162
Costs and expenses (excluding depreciation and other
non-cash charges) 256,496 239,114 619,612 589,797
Depreciation and amortization 40,792 38,758 120,051 112,953
Non-cash compensation expense 25 2,446 76 7,495
----------------- ---------------- ----------------- ---------------
Income from operations 268,170 277,781 207,311 244,917
Interest expense (net) (51,438) (56,494) (158,515) (172,938)
Equity in operations of theme parks 18,902 22,008 10,759 16,776
Early repurchase of debt 3 -- -- (27,592) (29,895)
Other expense (885) (1,000) (1,195) (1,615)
----------------- ---------------- ----------------- ---------------
Income before income taxes 234,749 242,295 30,768 57,245
Income tax expense 94,576 102,631 12,969 31,717
----------------- ---------------- ----------------- ---------------
Income before cumulative effect of a change in
accounting principle 140,173 139,664 17,799 25,528
Cumulative effect of a change in accounting principle -- -- -- (61,054)
----------------- ---------------- ----------------- ---------------
Net income (loss) $ 140,173 $ 139,664 $ 17,799 $ (35,526)
================= ================ ================= ===============
Net income (loss) applicable to common stock $ 134,679 $ 134,170 $ 1,320 $ (52,005)
================= ================ ================= ===============
PER SHARE:
Net income (loss) per share - basic $ 1.45 $ 1.45 $ 0.01 $ (0.56)
Net income (loss) per share - diluted 4 1.32 1.31 0.01 (0.56)
Income per share before cumulative effect of a
change in accounting principle - basic 1.45 1.45 0.01 0.10
Income per share before cumulative effect of a
change in accounting principle - diluted 4 1.32 1.31 0.01 0.10
----------------- ---------------- ----------------- ---------------
OTHER DATA:
Income per share - diluted - excluding early repurchase
of debt, net of tax, and before cumulative effect of a
change in accounting principle 3 $ 1.32 $ 1.31 $ 0.20 $ 0.30
================= ================ ================= ===============
EBITDA (Adjusted) from Consolidated Operations 1,2 $ 308,987 $ 318,985 $ 327,438 $ 365,365
Adjusted EBITDA including Unconsolidated
Operations 1,2 $ 332,616 $ 345,622 $ 352,598 $ 395,933
Average weighted shares outstanding - basic 92,617 92,535 92,617 92,476
Average weighted shares outstanding -diluted 106,409 106,325 92,629 92,579
SIX FLAGS REPORTS THIRD QUARTER RESULTS
NOVEMBER 12, 2003
PAGE 6
BALANCE SHEET DATA
(IN THOUSANDS)
September 30, 2003 December 31, 2002
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(unaudited)
Total assets $ 4,381,507 $ 4,245,158
Current portion of long-term debt 8,580 20,072
Total long-term debt 2,326,577 2,293,732
Mandatorily redeemable preferred stock 280,837 279,993
Total stockholders' equity 1,406,650 1,359,692
# # #
1. EBITDA (Adjusted) from Consolidated Operations is defined as net
income (loss) before cumulative effect of a change in accounting principle,
income tax expense, other expense, early repurchase of debt (formerly
extraordinary loss), equity in operations of theme parks, interest expense
(net), depreciation and amortization and non-cash 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 financing
activities or other financial data prepared in accordance with GAAP or as an
indicator of the Company's operating performance. Other companies define EBITDA-
Based Measures differently than the Company.
SIX FLAGS REPORTS THIRD QUARTER RESULTS
NOVEMBER 12, 2003
PAGE 7
2. The following table sets forth a reconciliation of net income (loss) to
EBITDA (Adjusted) from Consolidated Operations and Adjusted EBITDA including
Unconsolidated Operations for the periods shown (in thousands).
THREE MONTHS ENDED NINE MONTHS ENDED
--------------------------------- --------------------------------
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------- ---------------------------------
2003 2002 2003 2002
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Net income (loss) $ 140,173 $ 139,664 $ 17,799 $ (35,526)
Cumulative effect of an accounting change -- -- -- 61,054
Income tax expense 94,576 102,631 12,969 31,717
Other expense 885 1,000 1,195 1,615
Early repurchase of debt (formerly extraordinary loss) 3 -- -- 27,592 29,895
Equity in operations of theme parks (18,902) (22,008) (10,759) (16,776)
Interest expense (net) 51,438 56,494 158,515 172,938
Amortization 347 476 1,040 1,039
Depreciation 40,445 38,282 119,011 111,914
Non-cash compensation 25 2,446 76 7,495
--------------- ------------- --------------- --------------
EBITDA (Adjusted) from Consolidated Operations 308,987 318,985 327,438 365,365
Equity in operations of unconsolidated theme parks 18,902 22,008 10,759 16,776
Depreciation and amortization of unconsolidated theme parks 4,306 3,944 12,708 11,735
Third party interest and other non-operating expenses of
unconsolidated theme parks 421 685 1,693 2,057
--------------- ------------- --------------- --------------
Adjusted EBITDA including Unconsolidated Operations $ 332,616 $ 345,622 $ 352,598 $ 395,933
=============== ============= =============== ==============
SIX FLAGS REPORTS THIRD QUARTER RESULTS
NOVEMBER 12, 2003
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 full year
ended December 31, 2003. Therefore, a reliable estimate of its net loss for the
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 income (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 $210,000,000 and expected early repurchase of debt (formerly
extraordinary loss) is approximately $27,592,000.
(Unaudited)
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 prior to the adoption of this Statement. For the nine
months ended September 30, 2002, the per share amount is also shown before
cumulative effect of an accounting change. For the nine months ended September
30, 2003, the amount of the early repurchase loss was $27,592,000 with a related
tax benefit of $10,484,000. For the nine months ended September 30, 2002, the
amount of the early repurchase loss was $29,895,000, with a related tax benefit
of $11,360,000.
4. Diluted earnings per share for the three-month periods includes the effect of
the conversion of the Company's preferred shares into common shares and excludes
the dividends declared on such preferred shares.