Six Flags Announces First Quarter Results and Revenues Through April 27, 2009

Fri May 8, 2009 7:30am EDT

* Reuters is not responsible for the content in this press release.

- 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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