EXHIBIT 99.1
[SIX FLAGS LOGO]
SIX FLAGS REPORTS SECOND QUARTER RESULTS
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o Quarter Revenues Up 6%, with 3% Increase in Attendance and
Total Revenue Per Capita
o Six Month Revenues Up 8% on 4% Fewer Park Operating Days
New York, NY - July 26, 2007 - Six Flags, Inc. (NYSE: SIX) today announced
operating results for its second quarter and six months ended June 30, 2007. (1)
Total revenue for the quarter increased 6% to $344.8 million from $325.0 million
in the prior-year quarter. Attendance increased 0.3 million, or 3%, to 8.9
million from 8.6 million in the prior-year quarter. The Company believes the
attendance increase reflects enhanced marketing and promotional programs along
with continued improvement in the overall guest experience.
Total revenue per capita for the quarter increased by $1.17, or 3%, to $38.85,
reflecting increased per capita guest spending and sponsorship revenues. Per
capita guest spending increased $0.82, or 2%, to $37.02 from $36.20 in the
second quarter of 2006, as guests spent more on admissions, food and beverages,
parking, rentals and games.
The Company's loss from continuing operations for the quarter was $41.8 million,
compared to a loss of $39.1 million in the second quarter of 2006, reflecting
increased revenues and increased costs and expenses. Higher costs and expenses
primarily reflected increased marketing expense ($14.1 million) and additional
in-park costs.
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(1) Reported results from continuing operations for all periods presented
exclude park operations in Buffalo, New York; Columbus, Ohio; Concord,
California; Denver, Colorado; Houston, Texas; Oklahoma City, Oklahoma;
Sacramento, California; and Seattle, Washington. These parks have been
classified as discontinued operations. As of April 6, 2007, the sales of all of
the above-named parks were completed.
Mark Shapiro, Six Flags President and CEO, commented: "Although our peak
business period occurs in the third quarter, we witnessed encouraging results
for the first six months, especially when you consider 4% fewer operating days
and unprecedented rain in the state of Texas. The fact that in-park spending and
guest satisfaction scores are at an all-time high indicates both the return of
families to Six Flags and their approval of the makeover. We are in position for
the long-term turnaround we envisioned for our shareholders."
The prior-year second quarter was negatively impacted by $11.3 million in other
expenses, primarily due to the change in the Company's management, including
reimbursement of proxy costs. The current-year quarter included $10.4 million in
net losses from debt extinguishment, reflecting the write-off of capitalized
debt issuance costs associated with the Company's recently refinanced senior
secured credit facility and the repurchase of $85 million of senior unsecured
debt, partially offset by gains from repurchasing senior unsecured debt at a
discount.
Net loss applicable to common stock in the second quarter 2007 was $50.9
million, or $0.54 per share, compared to a net loss applicable to common stock
of $45.1 million, or $0.48 per common share in the prior-year period. The
increased net loss for the quarter reflects the results of continuing operations
and $3.1 million, or $0.03 per common share, of increased loss from discontinued
operations.
Adjusted EBITDA(2) for the quarter was $57.9 million, compared to $58.6 million
in the second quarter of 2006.
Six Month Results
For the six months ended June 30, 2007 (the "First Half 2007"), total revenues
increased $28.4 million, or 8%, to $395.5 million from $367.1 million in the
prior-year period.
First Half 2007 total revenue per capita increased $1.62, or 4%, to $39.17, from
$37.55 in the prior-year period, reflecting increased per capita guest spending
and sponsorship revenues. Increased per capita guest spending of $0.96, or 3%,
to $36.65 from $35.69 in the prior-year period was driven by increased
admissions, food and beverages, parking, rentals and games revenues. Attendance
for the First Half 2007 was 10.1 million, an increase of 0.3 million, or 3%,
from 9.8 million during the prior-year period.
Total costs and expenses, including cost of sales, depreciation, amortization,
stock-based compensation and loss on fixed assets, decreased $6.8 million to
$468.0 million for the First Half 2007, compared to $474.8 million in the 2006
period. The key drivers of the change were a reduced loss on fixed assets ($14.1
million), prior-year costs related to the change in management ($11.8 million),
and lower stock-based compensation ($6.4 million), partially offset by increased
marketing expense ($17.9 million) and additional in-park costs.
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(2) See the following tables and Note 2 to those tables for a discussion of
EBITDA (Modified), Adjusted EBITDA, and a reconciliation to these amounts from
net income (loss).
Net loss applicable to common stock for the First Half 2007 was $226.9 million,
or $2.40 per share, compared to a net loss applicable to common stock of $291.6
million, or $3.10 per common share in the prior-year period. The decreased net
loss in First Half 2007 of $64.7 million reflects a reduced loss from
discontinued operations ($32.2 million), improved results from continuing
operations ($31.5 million) reflecting increased revenues and reduced costs and
expenses, and the impact of a prior-year change in accounting principles ($1.0
million).
Adjusted EBITDA for the First Half 2007 improved by $18.6 million over the
prior-year period to a loss of $10.9 million, reflecting increased revenues
partially offset by increased costs and expenses.
Cash and Liquidity
As of June 30, 2007, the Company had no balance outstanding on its $275 million
revolving credit facility (excluding letters of credit in the amount of $34.8
million), and $81.9 million in unrestricted cash.
Conference Call
The Company will host a teleconference for analysts and investors today at
4:30 PM Eastern. Participants in the call will include President and Chief
Executive Officer, Mark Shapiro, and Chief Financial Officer, Jeffrey R.
Speed.
The teleconference will be broadcast live to all interested persons as a
listen-only Web cast on http://investors.sixflags.com/. The Web cast will be
archived for one year.
About Six Flags
Six Flags, Inc. is the world's largest regional theme park company. Founded in
1961, Six Flags celebrated its 45th Anniversary in 2006. It is a publicly-traded
corporation (NYSE: SIX) headquartered in New York City.
Forward Looking Statements:
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.
These risks and uncertainties include, among others, Six Flags' success in
implementing its new business strategy. Although Six Flags 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, risk of accidents
occurring at Six Flags' 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 Six Flags' 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 "Risk Factors" in Six Flags' Annual Report on Form 10-K for the
year ended December 31, 2006, which is available free of charge on Six Flags'
website http://www.sixflags.com.
# # #
Media Contact: Wendy Goldberg - (212) 652-9393
Investor Relations Contact: William Schmitt - (203) 682-8200
Six Flags, Inc.
Three and Six Months Ended June 30, 2007 and 2006
(In Thousands, Except Per Share Amounts)
Statement of Operations (1) Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Revenue $ 344,801 $ 325,002 $ 395,461 $ 367,083
Costs and expenses (excluding
depreciation, amortization,
stock-based compensation
and loss on fixed assets) 261,846 241,821 390,429 379,958
Depreciation 33,741 32,094 67,374 64,367
Amortization 326 220 576 439
Stock-based compensation 1,957 1,712 4,407 10,775
Loss on fixed assets 830 706 5,165 19,284
--------- --------- --------- ---------
Income (loss) from operations 46,101 48,449 (72,490) (107,740)
--------- --------- --------- ---------
Interest expense (net) 50,806 50,576 102,676 98,377
Minority interest in earnings 24,504 23,462 14,531 14,485
Equity in operations of partnerships 221 190 518 318
Net loss on debt extinguishment 10,356 - 10,356 -
Other expense 85 11,272 190 11,304
--------- --------- --------- ---------
Loss from continuing operations
before income taxes (39,871) (37,051) (200,761) (232,224)
Income tax expense (1,880) (2,035) (2,195) (2,202)
--------- --------- --------- ---------
Loss from continuing operations
before discontinued operations and
cumulative effect of a change in
accounting principle (41,751) (39,086) (202,956) (234,426)
Discontinued operations (3,637) (501) (12,993) (45,170)
--------- --------- --------- ---------
Loss before cumulative effect of a
change in accounting principle (45,388) (39,587) (215,949) (279,596)
Cumulative effect of a change
in accounting principle - - - (1,038)
--------- --------- --------- ---------
Net loss $ (45,388) $ (39,587) $(215,949) $(280,634)
========= ========= ========= =========
Net loss applicable to
common stock $ (50,880) $ (45,079) $(226,934) $(291,619)
========= ========= ========= =========
Per share - basic and diluted:
Loss from continuing operations $ (0.50) $ (0.47) $ (2.26) $ (2.61)
Discontinued operations $ (0.04) $ (0.01) $ (0.14) $ (0.48)
Cumulative effect of a change in
accounting principle $ - $ - $ - $ (0.01)
--------- --------- --------- ---------
Net loss $ (0.54) $ (0.48) $ (2.40) $ (3.10)
========= ========= ========= =========
Balance Sheet Data
(In Thousands)
Balance Sheet Data June 30, 2007 December 31, 2006
----------------- -----------------
Cash and cash equivalents
(excluding restricted cash) $ 81,870 $ 24,295
Total assets 3,112,082 3,187,616
Current portion of long-term debt 10,289 114,059
Long-term debt (excluding current
portion) 2,250,996 2,126,888
Mandatory redeemable preferred
stock 285,060 284,497
Total stockholders' equity 160,371 376,140
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- ------------------------
2007 2006 2007 2006
-------- -------- -------- --------
Other Data:
EBITDA (Modified) (2) $ 82,955 $ 83,181 $ 5,032 $(12,875)
Adjusted EBITDA (2) $ 57,915 $ 58,616 $(10,935) $(29,580)
Weighted average shares
outstanding - basic and diluted 94,708 94,321 94,680 94,114
Net cash provided by (used in)
operating activities $ 25,411 $ 51,171 $(73,949) $(61,372)
The following table sets forth a reconciliation of net loss to EBITDA (Modified)
and Adjusted EBITDA for the periods shown (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Net loss $ (45,388) $ (39,587) $(215,949) $(280,634)
Cumulative effect of a change in
accounting principle - - - 1,038
Discontinued operations 3,637 501 12,993 45,170
Income tax expense 1,880 2,035 2,195 2,202
Other expense 85 11,272 190 11,304
Net loss on debt extinguishment 10,356 - 10,356 -
Equity in operations of partnerships 221 190 518 318
Minority interest in earnings 24,504 23,462 14,531 14,485
Interest expense (net) 50,806 50,576 102,676 98,377
Loss on fixed assets 830 706 5,165 19,284
Amortization 326 220 576 439
Depreciation 33,741 32,094 67,374 64,367
Stock-based compensation 1,957 1,712 4,407 10,775
--------- --------- --------- ---------
EBITDA (Modified) 82,955 83,181 5,032 (12,875)
Third party interest in EBITDA
of certain operations (3) (25,040) (24,565) (15,967) (16,705)
--------- --------- --------- ---------
Adjusted EBITDA $ 57,915 $ 58,616 $ (10,935) $ (29,580)
========= ========= ========= =========
NOTES
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(1) Revenues and expenses of international operations are converted into U.S.
dollars on a current basis as provided by U.S. generally accepted
accounting principles ("GAAP").
(2) EBITDA (Modified), a non-GAAP measure, is defined as net income (loss)
before discontinued operations, income tax expense (benefit), other
expense, early repurchase of debt (formerly an extraordinary loss),
minority interest in earnings (losses), interest expense (net),
amortization, depreciation, stock-based compensation and gain (loss) on
disposal of assets. Adjusted EBITDA, also a non-GAAP measure, is defined
as EBITDA (Modified) minus interests of third parties in EBITDA of the
four parks, plus our interest in the EBITDA (Modified) of one hotel and
Dick Clark Productions, which are less than wholly owned. The Company
believes that EBITDA (Modified) and Adjusted EBITDA (collectively, "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. EBITDA
(Modified) and Adjusted EBITDA as defined in this release may differ from
similarly titled measure presented by other companies.
(3) Represents interest of third parties in EBITDA of Six Flags Over Georgia,
Six Flags Over Texas, Six Flags White Water Atlanta, and Six Flags
Discovery Kingdom (formerly Six Flags Marine World), plus our interest in
the EBITDA (Modified) of one hotel and Dick Clark Productions, which are
less than wholly owned.