EXHIBIT 99.1
[SIX FLAGS LOGO]
SIX FLAGS ANNOUNCES SECOND QUARTER RESULTS
o Second Quarter Adjusted EBITDA Increases 52% to $87.6 million
o Six Month Revenues Up 5%; Operating Costs and Expenses down 5%
o Six Month Adjusted EBITDA Improves by $45.4 million
New York, NY - August 4, 2008 - Six Flags, Inc. (NYSE: SIX) announced today
its operating results for the second quarter and six months ended June 30,
2008.(1)
Three Month Results
Total revenues of $345.7 million increased 1% over the prior-year quarter, while
total attendance declined 3% to 8.6 million, reflecting the timing of Easter,
which was in the first quarter of 2008 versus the second quarter of 2007. On a
year-to-date basis, attendance through June 30, 2008 was unchanged at 10.1
million.
Revenue growth for the second quarter reflected growth in sponsorship, licensing
and other fees, which increased $5.2 million over the prior-year period to $14.5
million. This growth, combined with the increased guest spending, resulted in a
3% increase in total revenue per capita to $40.02 in the current quarter from
$38.72 in the second quarter of 2007.
Increases in per capita guest spending, which grew $0.67 to $38.34, a 2%
increase over the per capita guest spending of $37.67 for the second quarter of
2007, reflected higher food and beverage, rentals, admissions, parking and
retail revenues.
Commenting on the Company's performance, Mark Shapiro, President and Chief
Executive Officer of Six Flags, Inc., said: "Our performance reflects the
growing momentum behind this Company after two years of repositioning our brand
and reinventing the guest experience. While we still have a considerable portion
of our season in front of us, I'm encouraged by the results, especially in the
current economic climate."
The Company's net results from continuing operations improved by $150.7 million
to income of $108.7 million from a loss of $41.9 million in the prior-year
quarter. The income growth reflects a net gain from debt extinguishment of
$107.7 million associated with the June 16, 2008 exchange of new senior
unsecured notes issued by a subsidiary of the Company (the "New Notes") for
certain Six Flags, Inc. senior unsecured notes. The Company's net results also
benefitted from a $21.3 million reduction in operating costs and expenses, which
decreased from $297.7 million in the prior-year second quarter to $276.4 million
for the current-year quarter. Also included in the net income from continuing
operations for the second quarter was a reduced minority interest in earnings
primarily due to the Company's purchase of its partner's interest in Six Flags
Discovery Kingdom in July of last year.
Adjusted EBITDA for the quarter improved by $30.1 million, or 52%, to $87.6
million compared to $57.5 million for the prior-year quarter.(2)
Six Month Results
For the six months ended June 30, 2008 (the "First Half 2008"), total revenues
increased $19.6 million, or 5%, to $413.9 million from $394.3 million in the
prior-year period.
First Half 2008 total revenue per capita increased $1.98, or 5%, to $41.04 from
$39.06 in the prior-year period, reflecting increased per capita guest spending
and sponsorship, licensing and other fees. Increased per capita guest spending
of $1.13, or 3%, to $38.47 from $37.34 in the prior-year period was driven by
increased admissions, food and beverages, rentals, retail and parking revenues.
Sponsorship, licensing and other fees increased $8.6 million, or 50%, to $25.9
million, reflecting growth in international licensing fees and management fees.
Operating costs and expenses, including cost of sales, depreciation,
amortization, stock-based compensation and loss on fixed assets, decreased $25.5
million to $440.9 million for the First Half 2008, compared to $466.4 million in
the 2007 period. The key drivers of the change were reduced marketing expenses
($16.0 million), and lower labor and third party services costs ($8.1 million).
Net loss applicable to common stock for the First Half 2008 was $66.3 million,
or $0.69 per share, compared to a net loss applicable to common stock of $226.9
million, or $2.40 per share in the prior-year period. The decreased net loss in
the First Half 2008 of $160.6 million reflects the net gain on debt
extinguishment of $107.7 million, increased revenues of $19.6 million, reduced
operating costs and expenses of $25.5 million and reduced net interest expense
of $9.9 million.
Adjusted EBITDA for the First Half 2008 of $34.5 million improved by $45.4
million over the prior-year period Adjusted EBITDA loss of $10.9 million,
reflecting increased revenues and reduced operating costs and expenses.
Mr. Shapiro added: "We're building long-term value by creating new diversified
revenue streams while maintaining efficient cost and capital expenditure
programs. The track we're on through July positions us to be free cash flow
positive this year for the first time in the Company's history."
Cash and Liquidity
As of June 30, 2008, the Company had $66.3 million in unrestricted cash and
$86.8 million available (after reduction for outstanding letters of credit of
approximately $28.2 million) on its $275 million revolving credit facility. The
Company remains comfortable with its current cash and liquidity position,
especially given it performance through July.
The Company previously announced that its Board of Directors determined not to
declare and pay quarterly dividends on its outstanding PIERS for the quarters
ended May 15, 2008 and August 15, 2008. Under the terms of the PIERS, dividends
are not required to be paid currently. The Company's deficit in stockholders'
equity, the overall state of the financial markets and the fact that unpaid
dividends accumulate on an interest-free basis, were factors the Board of
Directors considered in reaching its decision.
Conference Call
The Company will host a teleconference for analysts and investors today at 5:00
PM Eastern. Participants in the call will include President and Chief Executive
Officer, Mark Shapiro, and Executive Vice President 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 with 20 parks
across the United States, Mexico and Canada. Founded in 1961, Six Flags has
provided world class entertainment for millions of families with cutting edge,
record-shattering roller coasters and appointment programming with events like
the popular Thursday and Sunday Night Concert Series. Now 47 years strong, Six
Flags is recognized as the preeminent thrill innovator while reaching to all
demographics - families, teens, tweens and thrill seekers alike - with themed
attractions based on the Looney Tunes characters, the Justice League of America,
skateboarding legend Tony Hawk, The Wiggles and Thomas the Tank Engine. Six
Flags, Inc. 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, 2007, which is available free of charge on Six Flags'
website http://www.sixflags.com.
# # #
Media Contact: Sandra Daniels - (212) 652-9360 Investor Relations:
William Schmitt - (203) 682-8200
- ----------
(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. Also excluded from continuing operations
for all periods are results from our park in New Orleans, Louisiana, which has
been closed since August 2005 due to damage caused by Hurricane Katrina. During
the current-year second quarter, the Company decided that it will not resume
operations in New Orleans and has classified the park as a discontinued
operation.
(2) See the following tables and Note 2 to the tables for a discussion of
Adjusted EBITDA and its reconciliation to net income (loss).
Six Flags, Inc.
Three and Six Months Ended June 30, 2008 and 2007
(In Thousands, Except Per Share Amounts)
Statements of Operations (1) Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ----------------------------
2008 2007 2008 2007
------------ ------------ ------------ ------------
Revenue $ 345,683 $ 343,629 $ 413,907 $ 394,281
Costs and expenses (excluding
depreciation, amortization,
stock-based compensation
and (gain) loss on fixed assets) 239,661 261,070 361,532 389,248
Depreciation 33,912 33,543 67,995 66,977
Amortization 280 326 560 576
Stock-based compensation 2,631 1,957 6,223 4,407
(Gain) loss on fixed assets (63) 830 4,591 5,165
------------ ------------ ------------ ------------
Income (loss) from operations 69,262 45,903 (26,994) (72,092)
------------ ------------ ------------ ------------
Interest expense (net) 45,527 50,047 91,979 101,904
Minority interest in earnings 20,562 24,504 19,966 14,531
Equity in operations of investees (130) 221 1,786 518
Net (gain) loss on debt extinguishment (107,743) 11,103 (107,743) 11,103
Other (income) expense (420) 85 2,881 190
------------ ------------ ------------ ------------
Income (loss) from continuing operations
before income taxes 111,466 (40,057) (35,863) (200,338)
Income tax expense (2,753) (1,880) (4,474) (2,195)
------------ ------------ ------------ ------------
Income (loss) from continuing operations
before discontinued operations 108,713 (41,937) (40,337) (202,533)
Discontinued operations (14,122) (3,451) (14,976) (13,416)
------------ ------------ ------------ ------------
Net income (loss) $ 94,591 $ (45,388) $ (55,313) $ (215,949)
============ ============ ============ ============
Net income (loss) applicable to
common stock $ 89,099 $ (50,880) $ (66,298) $ (226,934)
============ ============ ============ ============
Per share - basic:
Income (loss) from continuing operations $ 1.06 $ (0.50) $ (0.53) $ (2.26)
Discontinued operations $ (0.14) $ (0.04) $ (0.16) $ (0.14)
------------ ------------ ------------ ------------
Net income (loss) $ 0.92 $ (0.54) $ (0.69) $ (2.40)
============ ============ ============ ============
Per share - diluted:
Income (loss) from continuing operations $ 0.72 $ (0.50) $ (0.53) $ (2.26)
Discontinued operations $ (0.09) $ (0.04) $ (0.16) $ (0.14)
------------ ------------
Net income (loss) $ 0.63 $ (0.54) $ (0.69) $ (2.40)
============ ============ ============ ============
Balance Sheet Data
(In Thousands)
Balance Sheet Data June 30, 2008 December 31, 2007
------------- -----------------
Cash and cash equivalents
(excluding restricted cash) $ 66,269 $ 28,388
Total assets 3,044,960 2,945,319
Current portion of long-term debt 169,771 18,715
Long-term debt (excluding current
portion) 2,118,088 2,239,073
Redeemable minority interests 434,360 415,350
Mandatory redeemable preferred
stock 286,186 285,623
Total stockholders' deficit (293,038) (252,620)
Consolidated Leverage Ratio (2) 4.11 N/A
Restricted Subsidiary Leverage Ratio (2) 5.91 N/A
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ----------------------------
2008 2007 2008 2007
------------ ------------ ------------ ------------
Other Data:
Adjusted EBITDA (3) $ 87,601 $ 57,519 $ 34,494 $ (10,934)
Weighted average shares
outstanding - basic 97,319 94,708 96,505 94,680
Weighted average shares
outstanding - diluted 155,202 94,708 96,505 94,680
Net cash provided by (used in)
operating activities $ 61,897 $ 26,158 $ (27,649) $ (73,202)
The following table sets forth a reconciliation of net income (loss) to Adjusted
EBITDA for the periods shown (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ----------------------------
2008 2007 2008 2007
------------ ------------ ------------ ------------
Net income (loss) $ 94,591 $ (45,388) $ (55,313) $ (215,949)
Discontinued operations 14,122 3,451 14,976 13,416
Income tax expense 2,753 1,880 4,474 2,195
Other (income) expense (420) 85 2,881 190
Net (gain) loss on debt extinguishment (107,743) 11,103 (107,743) 11,103
Equity in operations of investees (130) 221 1,786 518
Minority interest in earnings 20,562 24,504 19,966 14,531
Interest expense (net) 45,527 50,047 91,979 101,904
(Gain) loss on fixed assets (63) 830 4,591 5,165
Amortization 280 326 560 576
Depreciation 33,912 33,543 67,995 66,977
Stock-based compensation 2,631 1,957 6,223 4,407
Third party interest in EBITDA
of certain operations (4) (18,421) (25,040) (17,881) (15,967)
------------ ------------ ------------ ------------
Adjusted EBITDA $ 87,601 $ 57,519 $ 34,494 $ (10,934)
============ ============ ============ ============
NOTES
(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) Under the terms of the $400,000,000 12 1/4% Senior Notes of Six Flags
Operations, Inc. ("New Notes"), we must disclose on a quarterly basis the
Leverage Ratio and Restricted Subsidiary Leverage Ratio, both as defined
in the terms of the New Notes.
(3) Adjusted EBITDA, a non-GAAP measure, is defined as income (loss) from
continuing operations before discontinued operations, income tax expense
(benefit), other (income) expense, net (gain) loss on debt extinguishment,
equity in operations of investees, minority interest in earnings (losses),
interest expense (net), amortization, depreciation, stock-based
compensation, (gain) loss on fixed assets minus interests of third parties
in EBITDA of the four parks, plus our interest in the Adjusted EBITDA of
one hotel and Dick Clark Productions, which are less than wholly owned.
The Company believes that Adjusted EBITDA provides 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 Adjusted EBITDA is 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. Adjusted EBITDA 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. Adjusted
EBITDA as defined in this release may differ from similarly titled
measures presented by other companies.
(4) Represents interest of third parties in the Adjusted 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, which we
purchased in July 2007), plus our interest in the Adjusted EBITDA of one
hotel and Dick Clark Productions, which are less than wholly owned.