EXHIBIT 99.1
[SIX FLAGS LOGO]
SIX FLAGS ANNOUNCES THIRD QUARTER RESULTS
o Third Quarter Adjusted EBITDA increases 19% to $236 million
reflecting higher revenues and reduced expenses
o Nine Month Adjusted EBITDA increases 44% to $270 million
o Fourth Quarter revenues up 9% and attendance increases 7% through
November 4th
o Year-to-date revenues up $51.3 million to $985.5 million on
attendance, guest spending, and sponsorship and licensing growth
New York, NY - November 10, 2008 - Six Flags, Inc. (NYSE: SIX) announced today
its operating results for the third quarter and nine months ended September 30,
2008, as well as its revenues and attendance through the Halloween weekend.(1)
Commenting on the Company's performance, Mark Shapiro, President and Chief
Executive Officer of Six Flags, Inc., said: "By any measure, this is shaping up
to be the best year in the history of the Company. We're on track to be free
cash flow positive for the first time, our customer satisfaction scores are at
all-time highs, we're building an international footprint, and our network of
parks are increasingly being seen as an out-of-home solution for advertisers.
The culmination of this turnaround is within reach and we've laid a solid
foundation for long-term growth."
Three Month Results
Total revenues of $489.3 million increased 5% over the prior-year quarter, while
total attendance increased 0.2 million. The attendance increase over the
prior-year quarter was despite the loss of two full operating days at the parks
and a planned reduction of 0.2 million in complimentary and free promotional
attendance.
Revenue growth for the third quarter reflected growth in attendance and guest
spending, as well as sponsorship, licensing and other fees, which increased $7.8
million over the prior-year period to $19.3 million. Total revenue per capita
increased 4% to $40.27 in the current quarter from $38.82 in the third quarter
of 2007.
Increases in per capita guest spending, which grew $0.82 to $38.67, a 2%
increase over the per capita guest spending of $37.85 for the third quarter of
2007, reflected higher rentals, food and beverage, parking, admissions, and
retail revenues.
Mr. Shapiro added: "Our top-line performance validates our customer-focused
strategy which has re-established Six Flags as a high quality entertainment
destination for the entire family. The key to this year's success has been the
value proposition of our theme parks, enabling us to stand out and thrive in
what is an extremely challenging economic climate for consumers."
The Company's net income from continuing operations improved by $54.4 million to
$144.3 million from $89.9 million in the prior-year quarter. The income growth
reflects revenues growth of $25.1 million and $2.8 million in reduced operating
costs and expenses, which decreased from $283.3 million in the prior-year third
quarter to $280.5 million for the current-year quarter reflecting planned
reductions in marketing expenses, which were partially offset by increased
utilities, general liability expenses, and loss on fixed assets. Also included
in the change in net income from continuing operations for the third quarter
were prior-year expenses associated with the settlement of a California labor
class action lawsuit and reduced minority interest in earnings of $5.2 million
reflecting 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 $37.0 million, or 19%, to $235.6
million compared to $198.6 million for the prior-year quarter.(2)
Nine Month Results
For the nine months ended September 30, 2008, total revenues increased $44.8
million, or 5%, to $903.2 million from $858.5 million in the prior-year period.
Attendance for the nine months was up slightly to 22.2 million compared to the
prior-year's 22.1 million, driven by increased paid admissions, partially offset
by planned reductions of over 0.4 million in complimentary and free promotional
attendance.
Total revenue per capita for the first nine months increased $1.69, or 4%, to
$40.62 from $38.93 in the prior-year period, reflecting increased per capita
guest spending and sponsorship, licensing and other fees. Increased per capita
guest spending of $0.96, or 3%, to $38.58 from $37.62 in the prior-year period
was driven by increased rentals, admissions, food and beverages, parking and
retail revenues. Sponsorship, licensing and other fees increased $16.4 million,
or 57%, to $45.2 million.
Operating costs and expenses, including cost of sales, depreciation,
amortization, stock-based compensation and loss on fixed assets, decreased $28.3
million to $721.4 million for the first nine months of 2008, compared to $749.7
million in the 2007 period. The key drivers of the change were planned
reductions in marketing expenses, lower seasonal labor and third party services
costs, partially offset by higher utilities, general liability expenses, and
loss on fixed assets. Included in the above changes was the adverse impact of a
weak dollar in translating costs borne in the foreign currencies of our Mexico
City and Montreal parks.
Income from continuing operations was $103.9 million, or $0.69 per
share-diluted, for the nine months ended September 30, 2008, compared to a net
loss from continuing operations of $112.6 million, or $1.36 per share in the
prior-year period. The improved bottom-line reflects a net gain on debt
extinguishment of $107.7 million versus a $13.2 million loss on debt
extinguishment for the prior-year period, increased revenues of $44.8 million,
the reduced operating costs and expenses of $28.3 million, $12.5 million of
lower net other expense and reduced net interest expense of $14.1 million.
Adjusted EBITDA for the first nine months of 2008 of $270.1 million improved by
$82.4 million over the prior-year period's Adjusted EBITDA of $187.7 million,
reflecting increased revenues and reduced operating costs and expenses.
Fourth Quarter through November 4th
The Company also announced today that its revenues for the fourth quarter
through November 4, 2008 were up 9%, driven by a 7% increase in attendance and a
2% increase in total revenue per capita. The attendance growth reflects the
strength of our Fright Fest product and a favorable calendar for the Halloween
weekend.
This brings the Company's year to date revenues to $985.5 million, representing
growth of $51.3 million over the prior year period. The revenue growth reflects
balanced growth in each of our key revenue drivers -- a 0.3 million increase in
attendance, a 2% increase in guest spending, and a $19.8 million increase in
sponsorship, licensing and other fees over the prior the year period.
Cash and Liquidity
As of September 30, 2008, the Company had $34.3 million in unrestricted cash and
$246.2 million available (after reduction for outstanding letters of credit of
approximately $28.8 million) on its $275 million revolving credit facility, a
portion of which we use to fund our off-season expenditures.
Conference Call
The Company will host a teleconference for analysts and investors today at 9:00
AM 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 and special events
such as the weekly Summer Concert Series, Fright Fest and Holiday in the Park.
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 3 to the tables for a discussion of
Adjusted EBITDA and its reconciliation to net income (loss).
Six Flags, Inc.
Three and Nine Months Ended September 30, 2008 and 2007
(In Thousands, Except Per Share Amounts)
Statements of Operations (1) Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------ ------------------------------
2008 2007 2008 2007
------------- ------------- ------------- -------------
Revenue $ 489,340 $ 464,215 $ 903,247 $ 858,496
Costs and expenses (excluding
depreciation, amortization,
stock-based compensation
and loss on fixed assets) 234,605 240,153 596,137 629,401
Depreciation 35,610 34,794 103,605 101,771
Amortization 420 399 980 975
Stock-based compensation 78 1,822 6,301 6,229
Loss on fixed assets 9,790 6,179 14,381 11,344
------------- ------------- ------------- -------------
Income from operations 208,837 180,868 181,843 108,776
------------- ------------- ------------- -------------
Interest expense (net) 43,038 47,235 135,017 149,139
Minority interest in earnings 21,358 26,574 41,324 41,105
Equity in operations of investees (418) 50 1,368 568
Net (gain) loss on debt extinguishment - 2,080 (107,743) 13,183
Other (income) expense (2,034) 13,116 847 13,306
------------- ------------- ------------- -------------
Income (loss) from continuing operations
before income taxes 146,893 91,813 111,030 (108,525)
Income tax expense (2,635) (1,921) (7,109) (4,116)
------------- ------------- ------------- -------------
Income (loss) from continuing operations
before discontinued operations 144,258 89,892 103,921 (112,641)
Discontinued operations (789) (214) (15,765) (13,630)
------------- ------------- ------------- -------------
Net income (loss) $ 143,469 $ 89,678 $ 88,156 $ (126,271)
============= ============= ============= =============
Net income (loss) applicable to
common stock $ 137,977 $ 84,186 $ 71,679 $ (142,748)
============= ============= ============= =============
Per share - basic:
Income (loss) from continuing operations $ 1.43 $ 0.89 $ 0.90 $ (1.36)
Discontinued operations $ (0.01) $ (0.00) $ (0.16) $ (0.15)
------------- ------------- ------------- -------------
Net income (loss) $ 1.42 $ 0.89 $ 0.74 $ (1.51)
============= ============= ============= =============
Per share - diluted:
Income (loss) from continuing operations $ 0.95 $ 0.61 $ 0.69 $ (1.36)
Discontinued operations $ (0.00) $ (0.00) $ (0.11) $ (0.15)
------------- ------------- ------------- -------------
Net income (loss) $ 0.95 $ 0.61 $ 0.58 $ (1.51)
============= ============= ============= =============
Balance Sheet Data
(In Thousands)
Balance Sheet Data September 30, 2008 December 31, 2007
------------------ -----------------
Cash and cash equivalents
(excluding restricted cash) $ 34,328 $ 28,388
Total assets 2,952,582 2,945,319
Current portion of long-term debt 9,794 18,715
Long-term debt (excluding current
portion) 2,115,124 2,239,073
Redeemable minority interests 435,354 415,350
Mandatory redeemable preferred
stock 296,890 285,623
Total stockholders' deficit (169,179) (252,620)
Leverage Ratio (2) 5.23 N/A
Restricted Subsidiary Leverage Ratio (2) 3.63 N/A
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- ---------------------------
2008 2007 2008 2007
Other Data: ------------ ------------ ------------ ------------
Adjusted EBITDA (3) $ 235,607 $ 198,619 $ 270,101 $ 187,685
Weighted average shares
outstanding - basic 97,344 94,690 96,787 94,670
Weighted average shares
outstanding - diluted 155,227 152,573 140,881 94,670
Net cash provided by (used in)
operating activities $ 152,250 $ 92,741 $ 124,601 $ 19,539
The following table sets forth a reconciliation of net income (loss) to Adjusted
EBITDA for the periods shown (in thousands):
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------ ------------------------------
2008 2007 2008 2007
------------- ------------- ------------- -------------
Net income (loss) $ 143,469 $ 89,678 $ 88,156 $ (126,271)
Discontinued operations 789 214 15,765 13,630
Income tax expense 2,635 1,921 7,109 4,116
Other (income) expense (2,034) 13,116 847 13,306
Net (gain) loss on debt extinguishment - 2,080 (107,743) 13,183
Equity in operations of investees (418) 50 1,368 568
Minority interest in earnings 21,358 26,574 41,324 41,105
Interest expense (net) 43,038 47,235 135,017 149,139
Loss on fixed assets 9,790 6,179 14,381 11,344
Amortization 420 399 980 975
Depreciation 35,610 34,794 103,605 101,771
Stock-based compensation 78 1,822 6,301 6,229
Third party interest in EBITDA
of certain operations (4) (19,128) (25,443) (37,009) (41,410)
------------- ------------- ------------- -------------
Adjusted EBITDA $ 235,607 $ 198,619 $ 270,101 $ 187,685
============= ============= ============= =============
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) 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, the minority
interest in 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.