Six Flags Announces First Quarter Results and Revenues Through April 27, 2009
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- Revenues through April 27, 2009, which Includes Easter, Decreased $12 million to $110 million, Driven by a Weaker Mexican Peso and Reduced International Fees - First Quarter Revenues Down $16 million to $52 million, Reflecting the Timing of Easter as well as the Weaker Mexican Peso and Reduced International Fees - Cash Operating Expenses(1) for the First Quarter Decreased $7 million to $115 million, Reflecting a Weaker Mexican Peso and Reduced Costs due to the Timing of Easter NEW YORK, May 8 /PRNewswire-FirstCall/ -- Six Flags, Inc. (OTC Bulletin Board: SIXF) announced today its operating results for the first quarter ended March 31, 2009, and its revenues through April 27, 2009. The first quarter historically represents approximately 5% of the Company's annual revenues. Commenting on park operations in the midst of its restructuring process and pending Exchange Offers,(2) Mark Shapiro, President and Chief Executive Officer of Six Flags, Inc., said: "For the benefit of the business and our stakeholders, including our 30,000 employees, we are committed to resolving the restructuring process this calendar year. In the meantime, the strength of our product and positive word of mouth circulating among our customers, serves as a constant reminder that the guest experience is still priority one." Total revenues for the first quarter decreased $16.3 million, or 24%, from the prior-year quarter to $51.9 million, reflecting the timing of Easter, which shifted from the first quarter in 2008 to the second quarter in 2009, as well as a weaker Mexican peso and reduced international fees. Revenues through April 27, 2009, which includes Easter, were down $12.3 million from the prior-year period reflecting a weaker Mexican peso ($5.1 million) and reduced sponsorship, licensing and other fees ($3.2 million) driven by lower international fees. Attendance for this period was down 2% to 2.65 million; however, paid attendance, which excludes complimentary and free promotional tickets, was slightly higher in the current period. Per capita guest spending was down 2%, after adjusting for the impact of the year-over-year change in foreign currency translation. Mr. Shapiro continued, "Six Flags is a strong brand with a resilient business. We have been responsive to the economic environment and our parks are well positioned to deliver a high quality, close to home entertainment experience at a price families can afford. While many of our competitors are scaling back this summer, Six Flags is launching major new attractions in every park and hiring the best trained workforce in our history." The Company's first quarter net loss applicable to Six Flags, Inc. common stockholders improved 7%, or $10.7 million, to $146.3 million from $157.0 million in the prior-year quarter. The reduced loss reflects a $9.2 million reduction in net interest expense due to lower effective interest rates, $6.9 million in reduced cash operating expenses, $4.7 million in lower income tax expense, $3.3 million in lower non-cash operating expenses(3) and $2.1 million in increased share of earnings from our equity investments, which primarily resulted from improved results for dick clark productions, which suffered in the first quarter of 2008 from the cancellation of the Golden Globes Awards due to the strike by the Writers Guild of America. Partially offsetting the reduced expenses was the impact of $16.3 million in reduced revenues. Adjusted EBITDA(4) for the quarter was a loss of $60.9 million compared to a loss of $53.1 million in the prior-year quarter, reflecting the reduced operating earnings that resulted from the timing of Easter, a weaker Mexican peso and reduced international fees. As of March 31, 2009, the Company had $79.4 million in unrestricted cash and $0.9 million available (after reduction for outstanding letters of credit of approximately $31.4 million) on its $275 million revolving credit facility. Conference Call The Company will host a teleconference for analysts and investors on Friday, May 8, 2009 at 8:30 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, and soon will be expanding beyond North America with destinations in Dubai and Qatar. Since 1961, hundreds of millions of families have trusted Six Flags to combine friendly-clean-fast-safe service with affordable, value-packed thrills, record-shattering roller coasters and special events like the Summer Concert Series, Fright Fest and Holiday in the Park. Six Flags' wide array of entertainment options reaches all demographics -- families, teens, tweens and thrill seekers alike -- featuring themed attractions based on skateboarding legend Tony Hawk, the ultimate daredevil Evel Knievel, movie franchises The Dark Knight and The Mummy; as well as world-renowned, kid-friendly brands including Looney Tunes, the Justice League of America, The Wiggles and Thomas the Tank Engine. Six Flags continues to develop new avenues for growth, acquiring ownership and management of dick clark productions, producer of such perennial television hits as the American Music Awards, the Golden Globe Awards, the Academy of Country Music Awards, Dick Clark'sNew Year's Rockin' Eve and So You Think You Can Dance. Six Flags, Inc. is a publicly-traded corporation (OTC Bulletin Board: SIXF) 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' ability to consummate a financing to fund its "put" obligations under the Partnership Parks prior to May 15, 2009, Six Flags' success in implementing a restructuring plan and the adequacy of cash flows from operations, available cash and available amounts under its credit facility to meet its future liquidity needs. 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 the failure to successfully fund "put" obligations under the limited partnership agreements for Six Flags Over Texas and Six Flags Over Georgia and consummate a restructuring and factors impacting attendance, local conditions, events, disturbances and terrorist activities, risk of accidents occurring at Six Flags' parks, adverse weather conditions, general financial and credit market conditions, 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, 2008, its Current Report on Form 8-K filed with the Securities and Exchange Commission on May 7, 2009, and its other filings and submissions with the Securities and Exchange Commission, which are available free of charge on Six Flags' website http://www.sixflags.com. (1)Cash Operating Expenses are reflected on the income statement as cost and other expenses excluding depreciation, amortization, stock-based compensation and loss on disposal of assets. (2)The Company has pending debt-for equity exchange offers with respect to its senior notes and convertible notes. It has also filed a preliminary proxy statement with respect to proposed amendments to its preferred stock and its certificate of incorporation. (3)Non-cash operating expenses consist of depreciation, amortization, stock-based compensation and loss on disposal of assets. (4)See the following tables and Note 2 to those tables for a discussion of Adjusted EBITDA and its reconciliation to net loss. Six Flags, Inc. Three Months Ended March 31, 2009 and 2008 (In Thousands, Except Per Share Amounts) Statements of Operations Data (1) Three Months Ended March 31, ---------------------- 2009 2008 --------- --------- Revenue $51,900 $68,224 Costs and expenses (excluding depreciation, amortization, stock-based compensation and loss on disposal of assets) 114,933 121,871 Depreciation 34,907 34,083 Amortization 224 280 Stock-based compensation 839 3,592 Loss on disposal of assets 3,313 4,654 --------- --------- Loss from operations (102,316) (96,256) --------- --------- Interest expense (net) 38,916 48,103 Equity in operations of partnerships (189) 1,916 Other expense 1,669 3,301 --------- --------- Loss from continuing operations before income taxes (142,712) (149,576) Income tax benefit (expense) 2,930 (1,721) --------- --------- Loss from continuing operations (139,782) (151,297) Discontinued operations (1,016) (854) --------- --------- Net loss $(140,798) $(152,151) Plus: Net loss attributable to noncontrolling interests $- $596 --------- --------- Net loss attributable to Six Flags, Inc. $(140,798) $(151,555) ========= ========= Net loss applicable to Six Flags, Inc. common stockholders $(146,291) $(157,048) ========= ========= Per share - basic and diluted: Loss from continuing operations applicable to Six Flags, Inc. common stockholders $(1.49) $(1.63) Discontinued operations applicable to Six Flags, Inc. common stockholders $(0.01) $(0.01) --------- --------- Net loss applicable to Six Flags, Inc. common stockholders $(1.50) $(1.64) ========= ========= Amounts attributable to Six Flags, Inc.: Loss from continuing operations $(139,782) $(150,701) Discontinued operations $(1,016) $(854) ------- ------ Net loss $(140,798) $(151,555) ========= ========= Balance Sheet Data (In Thousands) Balance Sheet Data March 31, December 31, 2009 2008 ---------- ----------- Cash and cash equivalents (excluding restricted cash) $79,412 $210,332 Total assets 2,907,335 3,030,129 Current portion of long-term debt 399,432 253,970 Long-term debt (excluding current portion) 1,912,477 2,044,230 Redeemable noncontrolling interests 414,394 414,394 Mandatory redeemable preferred stock 307,875 302,382 Total stockholders' deficit (524,312) (376,499) Leverage Ratio (2) 5.74 5.39 Restricted Subsidiary Leverage Ratio (2) 4.10 3.81 Three Months Ended March 31, --------------------- 2009 2008 Other Data: -------- -------- Adjusted EBITDA (3) $(60,938) $(53,107) Weighted average shares outstanding - basic and diluted 97,470 95,692 Net cash used in operating activities $(115,353) $(89,546) The following table sets forth a reconciliation of net income loss to Adjusted EBITDA and Free Cash Flow for the periods shown (in thousands): Three Months Ended March 31, ---------------------- 2009 2008 --------- --------- Net loss $(140,798) $(152,151) Discontinued operations 1,016 854 Income tax (benefit) expense (2,930) 1,721 Other expense 1,669 3,301 Equity in operations of partnerships (189) 1,916 Interest expense (net) 38,916 48,103 Loss on disposal of assets 3,313 4,654 Amortization 224 280 Depreciation 34,907 34,083 Stock-based compensation 839 3,592 Third party interest in EBITDA of certain operations (4) 2,095 540 ------- ------ Adjusted EBITDA $(60,938) $(53,107) Cash paid for interest (net) and debt issuance costs (46,964) (31,669) Capital expenditures (net of property insurance recoveries) (36,984) (30,156) Cash dividends and taxes (1,459) (7,492) ------ ------ Free Cash Flow (5) $(146,345) $(122,424) ========= ========= 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 partnerships, interest expense (net), amortization, depreciation stock-based compensation, (gain) loss on disposal of assets minus interests of third parties in EBITDA of the three parks (see Note 4 below), 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 and Six Flags White Water Atlanta plus our interest in the Adjusted EBITDA of one hotel and Dick Clark Productions, which are less than wholly owned. (5) Free Cash Flow, a non-GAAP measure, is defined as Adjusted EBITDA less (i) cash paid for interest expense, net of interest income receipts, and debt issuance costs (ii) capital expenditures net of property insurance recoveries and (iii) cash dividends and taxes. The Company believes that Free Cash Flow is used by many investors, Equity analysts and rating agencies as a measure of performance. Free Cash Flow 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. Free Cash Flow as defined in this release may differ from similarly titled measures presented by other companies. SOURCE Six Flags, Inc. Media, Sandra Daniels, +1-212-652-9393, Investors, William Schmitt, +1-203-682-8200
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