EXHIBIT 99.1
[Six Inc. logo] NEWS
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FOR: SIX FLAGS, INC.
CONTACT: James F. Dannhauser, Chief Financial Officer
122 East 42nd Street
New York, NY 10168
(212) 599-4693
KCSA Erika Levy /Joseph A. Mansi
CONTACTS: (212) 896-1208 / (212) 896-1205
elevy@kcsa.com / jmansi@kcsa.com
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FOR IMMEDIATE RELEASE
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SIX FLAGS REPORTS SIX MONTHS AND SECOND QUARTER RESULTS AND
AFFIRMS FULL YEAR OUTLOOK
o Strong, Broad-based Attendance, Revenue And EBITDA Growth
NEW YORK, August 8, 2005 - Six Flags, Inc. (the "Company") (NYSE: PKS) announced
today its results of operations for the six months and quarter ended June 30,
2005. Revenues for the second quarter of 2005 were 8.4% higher than the prior
year, and attendance increased 753,000, or 6.6%, reflecting the positive market
reaction in virtually all of the Company's parks to the Company's new capital
additions and marketing programs.
SIX MONTH RESULTS
For the first six months of 2005, revenues were $440.9 million,
compared to $401.2 million for the comparable period of 2004, an increase of
$39.7 million, or 9.9%. Attendance for the period rose 1.08 million, or 8.5%,
while total revenue per capita increased by 1.3%, to $31.82.
Operating costs and expenses, including depreciation, amortization
and non-cash compensation, were $465.8 million in the 2005 six-month period, as
compared to $444.7 million in the prior-year period. Excluding depreciation,
amortization and non-cash compensation, cash operating costs and expenses were
$390.0 million in 2005 and $370.6 million in 2004, an increase of 5.2%,
reflecting planned increases in labor and other expenses to continue the
Company's guest service initiatives and to operate the attractions added for the
2005 season, as well as expected increases in costs of goods sold as a result of
higher sales volume.
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 8, 2005
PAGE 2
EBITDA (Modified) was $50.9 million in the 2005 period as compared to
$30.7 million in the 2004 period (1). Adjusted EBITDA for the 2005 period was
$29.5 million compared to $12.0 million in 2004. (1)
Loss from continuing operations applicable to common stock was $178.6
million in the first six months of 2005 as compared to $135.1 million in the
2004 period. The 2005 period reflects the impact of a $63.8 million tax
valuation allowance. In addition, both periods included a loss on early
repurchase of debt. Absent the tax valuation allowance and the loss on early
repurchase of debt (net of the associated tax benefits in 2005 and 2004), the
loss from continuing operations in 2005 would have been $102.8 million and in
2004 would have been $115.6 million. (2)
THREE MONTH RESULTS
Revenues for the second quarter of 2005 were $386.5 million, compared
to $356.4 million for the comparable quarter of 2004. The 2005 performance
reflects an increase in attendance of 753,000, or 6.6%, and a 1.8% increase in
total revenue per capita, to $31.65.
Operating costs and expenses, including depreciation, amortization
and non-cash compensation, were $294.3 million in the 2005 quarter and $282.6
million in the year ago period. Excluding depreciation, amortization and
non-cash compensation, cash operating costs and expenses were $256.3 million in
the second quarter of 2005, as compared to $245.6 million in the prior-year
quarter, an increase of 4.3%.
EBITDA (Modified) was $130.2 million in the second quarter of 2005
compared to $110.8 million in the 2004 quarter. Adjusted EBITDA for the second
quarter of 2005 was $103.5 million compared to $86.2 million in the second
quarter of 2004, an increase of 20.1%.
Income from continuing operations applicable to common stock was $5.6
million in the second quarter of 2005 as compared to a loss of $9.7 million in
the 2004 period. The 2005 results benefited from a partial reversal of the tax
valuation allowance established in the first quarter.
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(1) See note 3 to the following table for a discussion of EBITDA (Modified) and
Adjusted EBITDA, and for a reconciliation of these amounts to net loss.
(2) See note 2 to the following table.
SIX FLAGS REPORTS SECOND QUARTER RESULTS
AUGUST 8, 2005
PAGE 3
Without that effect, the income from continuing operations in the 2005 quarter
would have been $2.2 million. The 2004 period included a loss on early
repurchase of debt. Absent that loss, net of the associated tax benefits, the
loss from continuing operations applicable to common stock would have been $5.8
million in the 2004 period.
DISCUSSION AND OUTLOOK
Kieran E. Burke, Chairman and Chief Executive Officer of Six Flags,
said, "We are pleased with the broad-based strong performance of our parks
during the first half of 2005. Although there is a great deal of time left in
our season, the year-to-date results from our parks have been very encouraging.
They reflect the successful implementation of our investment program, which
added new attractions in 13 of our 18 domestic theme parks, and three of our
water parks and both of our international parks, as well as our ongoing guest
service initiatives, and year two of our advertising campaign. We also enjoyed
favorable weather conditions during the early part of the summer, and this had a
positive impact on attendance. Our performance in July continued to reflect
solid growth. While attendance growth in the month slowed somewhat from its
robust early season pace, per capita revenues rose sharply. For the month, total
revenues rose 9.6% from the year ago period. As a result, year-to-date through
August 1 total attendance is 6.3% ahead of the prior year, per capita revenues
are up 3.3%, and revenues are up by 9.8% year over year. There is a significant
amount of our season remaining and we did enjoy a strong October performance
last year. Nonetheless, given our performance to date, we are clearly poised to
deliver strong financial results for the year, and see the stage set for further
growth.
"We continue to anticipate generating Adjusted EBITDA of $300 million
in 2005. This is based on expected full year revenue growth of approximately
8.5%. We continue to enjoy substantial liquidity and have no near-term debt
maturities."
Six Flags, Inc. is the world's largest regional theme park company.
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 (including consumer
spending patterns), competition, pending, threatened or future legal proceedings
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 risks contained under the captions
"Cautionary Note Regarding Forward-Looking Statements" and "Business - Risk
Factors" in the Company's Annual Report on Form 10-K for the year ended December
31, 2004, which is available free of charge on the Company's website
(www.sixflags.com).
This release and prior releases are available on the Company's Worldwide Web
site at www.sixflags.com.
(Tables to follow)
SIX FLAGS REPORTS SECOND QUARTER RESULTS
AUGUST 8, 2005
PAGE 4
SIX FLAGS, INC.
STATEMENT OF OPERATIONS DATA (1)
THREE AND SIX MONTHS ENDED JUNE 30, 2005
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
STATEMENT OF OPERATIONS DATA THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
-------------------------------- --------------------------------
2005 2004 2005 2004
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Revenue........................................ $ 386,492 $ 356,411 $ 440,872 $ 401,224
Costs and expenses (excluding depreciation,
amortization and non-cash compensation)... 256,282 245,647 389,988 370,551
Depreciation................................... 37,674 36,496 74,920 73,152
Amortization................................... 223 327 445 653
Non-cash compensation.......................... 166 161 454 322
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Income (loss) from operations.................. 92,147 73,780 (24,935) (43,454)
Interest expense (net)......................... (45,775) (49,116) (90,520) (101,023)
Minority interest in earnings.................. (25,531) (23,236) (18,968) (15,882)
Early repurchase of debt....................... - (6,195) (19,303) (31,372)
Other expense.................................. (8,174) (1,626) (11,371) (4,571)
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Income (loss) from continuing operations
before income taxes....................... 12,667 (6,393) (165,097) (196,302)
Income tax expense (benefit)...................
1,566 (2,224) 2,521 (72,218)
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Income (loss) from continuing operations....... 11,101 (4,169) (167,618) (124,084)
Discontinued operations, net of tax benefit of
$1,628 (three months) and $57,387
(six months) in 2004...................... - (2,657) - (287,561)
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Net income (loss).............................. $ 11,101 $ (6,826) $ (167,618) $ (411,645)
=============== =============== =============== ===============
Net income (loss) applicable to common
stock..................................... $ 5,609 $ (12,318) $ (178,603) $ (422,630)
=============== =============== =============== ===============
Per share - basic and diluted:
Income (loss) from continuing
operations............................ $ 0.06 $ (0.10) $ (1.92) $ (1.45)
Discontinued operations, inclusive
of tax benefit........................ - (0.03) - (3.09)
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Net income (loss)......................... $ 0.06 $ (0.13) $ (1.92) $ (4.54)
=============== =============== =============== ===============
OTHER DATA:
Income (loss) applicable to common
stock from continuing operations
before effect of valuation allowance and
loss on early repurchase of debt(2)....... $ 2,180 $ (5,820) $ (102,818) $ (115,618)
Income (loss) applicable to common stock
from continuing operations per common
share (basic and diluted) before
valuation
allowance and loss on early repurchase
of debt(2)................................ $ 0.02 $ (0.06) $ (1.10) $ (1.24)
EBITDA (Modified)(3)........................... $ 130,210 $ 110,764 $ 50,884 $ 30,673
Adjusted EBITDA(3)............................. $ 103,459 $ 86,157 $ 29,476 $ 12,049
Average weighted shares outstanding - basic.... 93,107 93,042 93,105 93,030
Average weighted shares outstanding -
diluted................................... 93,108 93,042 93,105 93,030
Net cash provided by (used in) operating
activities................................ $ 122,444 $ 89,368 $ 25,146 $ (14,750)
SIX FLAGS REPORTS SECOND QUARTER RESULTS
AUGUST 8, 2005
PAGE 5
BALANCE SHEET DATA
(IN THOUSANDS)
# # #
BALANCE SHEET DATA June 30, 2005 December 31, 2004
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(Unaudited)
Cash and cash equivalents............................... $ 116,643 $ 68,807
Total assets............................................ 3,646,845 3,642,227
Current portion of long-term debt (excluding debt
called for repayment) ............................. 173,979 24,394
Long-term debt (excluding current portion) ............. 2,134,963 2,125,121
Mandatorily redeemable preferred stock.................. 282,808 282,245
Total stockholders' equity ............................. 649,852 826,065
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(1) Revenues and expenses of international operations are converted into
dollars on a current basis as provided by accounting principles generally
accepted in the United States ("GAAP").
(2) The Company's reported results include items of income and expense that the
Company believes are typically excluded by securities analysts in their
published estimates for the Company's financial results. These excluded
items include gains and losses on early repurchases of debt and effects of
deferred tax asset valuation allowances. The following tables set forth the
calculation of net income (loss) applicable to common stock and net income
(loss) applicable to common stock per common share before giving effect to
those excluded items and before discontinued operations, in the case of the
2004 periods. This measure is not defined by GAAP and should not be
considered in isolation or as an alternative to net income (loss), income
(loss) from continuing operations, 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.
(In thousands)
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THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
--------------------------------- ---------------------------------
2005 2004 2005 2004
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(Unaudited)
Net income (loss) applicable to
common stock $ 5,609 (12,318) $ (178,603) (422,630)
Discontinued operations, net of tax -- 2,657 -- 287,561
Effect of valuation allowance (3,429) -- 63,817 --
Early repurchase of debt -- 6,195 19,303 31,372
Income tax benefit from early
repurchase of debt -- (2,354) (7,335) (11,921)
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Income (loss) applicable to common
stock from continuing operations before
valuation allowance and loss on
early repurchase of debt $ 2,180 (5,820) $ (102,818) (115,618)
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SIX FLAGS REPORTS SECOND QUARTER RESULTS
AUGUST 8, 2005
PAGE 6
INCOME (LOSS) PER SHARE (BASIC)
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(In thousands)
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Three Months Ended Six Months Ended
June 30, June 30,
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2005 2004 2005 2004
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(Unaudited)
Net income (loss) applicable to
common stock 0.06 (0.13) (1.92) (4.54)
Discontinued operations, net of tax -- 0.03 -- 3.09
Effect of valuation allowance (0.04) -- 0.68 --
Early repurchase of debt -- 0.07 0.21 0.34
Income tax benefit from early
repurchase of debt -- (0.03) (0.07) (0.13)
Income (loss) applicable to common
stock from continuing operations
before valuation allowance and loss
on early repurchase of debt 0.02 (0.06) (1.10) (1.24)
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(3) EBITDA (Modified) is defined as net income (loss) from continuing
operations, before income tax expense (benefit), other expense, early
repurchase of debt (formerly extraordinary loss), minority interest in
earnings, interest expense (net), amortization, depreciation and non-cash
compensation. Adjusted EBITDA is defined as EBITDA (Modified) minus the
interest of third parties in EBITDA of the four parks that are less than
wholly owned. The Company believes that EBITDA (Modified) and Adjusted
EBITDA (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, Adjusted EBITDA 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),
income (loss) from continuing operations, 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.
The following table sets forth a reconciliation of net income (loss) to EBITDA
(Modified) and Adjusted EBITDA for the periods shown (in thousands).
(In thousands)
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Three Months ended June 30, Six Months ended June 30,
------------------------------ --------------------------------
2005 2004 2005 2004
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(Unaudited)
Net income (loss) $ 11,101 (6,826) $ (167,618) (411,645)
Discontinued operations, inclusive of -- 2,657 -- 287,561
tax benefit
Income tax expense (benefit) 1,566 (2,224) 2,521 (72,218)
Other expense 8,174 1,626 11,371 4,571
Early repurchase of debt -- 6,195 19,303 31,372
Minority interest in earnings 25,531 23,236 18,968 15,882
Interest expense (net) 45,775 49,116 90,520 101,023
Amortization 223 327 445 653
Depreciation 37,674 36,496 74,920 73,152
Non-cash compensation 166 161 454 322
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EBITDA (Modified) 130,210 110,764 50,884 30,673
Third party interest in EBITDA of certain
parks(a) (26,751) (24,607) (21,408) (18,624)
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Adjusted EBITDA $ 103,459 86,157 $ 29,476 12,049
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SIX FLAGS REPORTS SECOND QUARTER RESULTS
AUGUST 8, 2005
PAGE 7
The Company is not able as of this date to provide a reliable
estimate of its income tax expense (benefit) and other income (expense) for the
year ending December 31, 2005. 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 for 2005 to expected EBITDA
(Modified) and expected Adjusted EBITDA for such 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. For 2005, expected interest expense (net) is approximately
$180,000,000 and expected minority interest in earnings is approximately
$40,000,000.
(In thousands)
Year Ending
December 31, 2005
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Income from operations $ 186,300
Non-cash compensation 800
Amortization 900
Depreciation 156,000
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EBITDA (Modified) 344,000
Third-party interest in EBITDA of certain parks(a) (44,000)
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Adjusted EBITDA $ 300,000
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(a) Represents interest of third parties in EBITDA of Six Flags Over Georgia,
Six Flags Over Texas, Six Flags White Water Atlanta and Six Flags Marine
World.