EXHIBIT 99.1
[SIX FLAGS LOGO]
SIX FLAGS PROVIDES UPDATED STRATEGIC OUTLOOK
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New York, NY - August 4, 2008 - Following this morning's release of results for
the quarter and six months ended June 30, 2008, Mark Shapiro, President and CEO
of Six Flags, Inc. (NYSE: SIX) and Jeffrey R. Speed, Executive Vice President
and CFO, hosted a webcast conference call to discuss the Company's results and
provide an updated evaluation of the Company's strategic progress.
"Not only are we seeing the re-emergence of the Six Flags brand, but we are also
beginning to yield the economic benefits of being the world's premier regional
theme park company," Mr. Shapiro said. "Despite a difficult economic
environment, through July we have witnessed solid revenue growth while at the
same time reducing our operating expenses by improving the efficiency and
effectiveness of our marketing and labor investments."
Mr. Shapiro and Mr. Speed expanded on the Company's performance for 2008 and its
strategic implications:
o For the quarter ended June 30, 2008, the Company increased revenues 1%
over the prior-year quarter, despite the shift in timing for Easter, which
was in the first quarter of 2008 versus the second quarter of 2007.
Adjusted EBITDA for the quarter improved by $30 million, or 52%,
reflecting the revenue growth as well as reduced advertising and operating
expenses.
o For the six months ended June 30, 2008, the Company increased revenues 5%
over the prior-year period. Attendance for the six months was flat
compared to the prior year first half. Adjusted EBITDA for the six months
improved by over $45 million.
o The Company's corporate sponsorship business combined with new
international licensing opportunities has generated solid revenues to
date, resulting in the Company increasing its revenue target for 2008 by
10%, from $51 million to $56 million. Design and development of Six Flags
Dubailand is proceeding and the project is on pace for a 2011 opening.
o Cash operating expenses (i.e., costs and expenses excluding depreciation,
amortization, stock-based compensation and gain or loss on fixed assets)
decreased for the quarter and six months ended June 30, 2008 by $21
million, or 8%, and $28 million, or 7%, respectively, reflecting reduced
marketing and full-time labor costs, seasonal labor efficiencies from an
automated labor scheduling system that the Company has expanded throughout
its parks, and the removal of inefficient rides and attractions.
o For the month of July 2008 --- historically the most significant month in
the operating season --- the Company indicated that attendance increased
over July 2007 and revenue growth trends continued. However, the Company
cautioned that due to the calendar shift, it will lose two weekdays of
full park operations later in the third quarter compared to the prior year
period. It expects to largely recover the lost attendance from those days
with additional operating days in October and November as well as with
Halloween falling favorably on a Friday this year.
o Through the end of July, year-to-date sales of season pass units were up
approximately 100,000 units, or 5%, while group sale bookings were stable
compared to the prior year period.
The Management team concluded the call by reiterating the Five Key Strategic
Objectives for their three-year turnaround plan established upon their arrival
in early 2006; each of which is on track to be realized in the current year.
These strategic objectives were summarized as follows:
1. First and foremost: clean-up the parks and improve the overall guest
experience; reposition the brand by diversifying the product
offering. For the second consecutive year, the Company's key guest
satisfaction scores are at or above record highs.
2. Become free cash flow positive,(1) which has not been achieved in
the Company's history. For 2008, if the Company maintains its
current trends with regard to revenues and cost control, the Company
should be free cash flow positive with an Adjusted EBITDA nearing
$280 million.
3. Achieve total revenue per capita of at least $40, or 20% cumulative
growth from 2005. With approximately 1% guest spending growth and
$56 million of sponsorship and licensing revenues, this objective is
within reach this year.
4. Create and grow new high margin and low capital sponsorship and
licensing businesses and achieve annual revenues in excess of $50
million. For 2008, management is currently targeting revenue of $56
million.
5. Operate at a profit margin for Modified EBITDA(2) of at least 30%.
If the Company sustains its current trends and achieves its target
of being free cash flow positive for the year, then its Modified
EBITDA margin will likely top the 30% margin objective.
Shapiro concluded: "Six Flags is expanding as an entertainment company by
identifying new revenue streams while simultaneously revitalizing its core
business. This has been the fundamental objective of our turnaround plan. Our
momentum through July indicates that the strategy is taking hold with long-term
value being the endgame."
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.
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Media Contact: Investor Relations:
Sandra Daniels - (212) 652-9360 William Schmitt - (203) 682-8200
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(1) Free cash flow, a non-GAAP measure, is defined as Adjusted EBITDA (also a
non-GAAP measure) less capital expenditures (net of property insurance
proceeds), cash interest (net), cash dividends, and cash paid for debt issuance
costs and taxes. A reconciliation of the 2008 free cash flow estimate discussed
herein to an assumed 2008 Adjusted EBITDA of $280 million is posted on the
Company's website at http://www.sixflags.com.
(2) Adjusted EBITDA after adding back the third party interest in EBITDA of
certain operations.