NEW YORK, Nov. 2 /PRNewswire-FirstCall/ -- Six Flags, Inc. (OTC
Bulletin Board: SIXFQ) announced today its consolidated operating
results for the third quarter and nine months ended September 30,
2009.(1) Three Month Results Total revenues of $457.0 million
decreased 7% from the prior-year quarter's total of $489.3 million,
primarily reflecting reduced attendance and guest spending.
Attendance for the quarter was 12.0 million, down 1% comparing to
12.2 million in the third quarter of 2008. Although the Company
benefitted from increased single-day ticket and season pass
attendance, this was more than offset by a decline in group sales,
reflecting cutbacks in outings by companies, schools and other
organizations, and reduced complimentary and free promotional
tickets. Per capita guest spending decreased 5% to $36.93 from
$38.67 in the third quarter of 2008, reflecting reduced in-park
spending and admissions. Included in the lower guest spending is
the impact of a weaker Mexican peso and Canadian dollar in the
current-year quarter, affecting U.S. dollar translated results for
the parks in Mexico City and Montreal. Exchange rates accounted for
approximately one percentage point, or $0.45, of the guest spending
per capita decline for the quarter compared to the prior year
quarter. Revenues for the quarter also were affected by a decline
in sponsorship, licensing and other fees of $5.5 million compared
to the prior-year quarter, primarily driven by lower international
licensing fees. Cash operating expenses(2) for the quarter of
$232.5 million were down 1% from $234.6 million in the third
quarter of 2008, reflecting reduced cash-based incentive
compensation, favorable currency impacts at the Mexico City and
Montreal parks, decreased consulting and outside services and lower
cost of sales reflecting reduced in-park sales, partially offset by
increased advertising expenses due to the timing of expenditures
and higher park labor costs primarily reflecting increased minimum
wage rates. Non-cash operating expenses of depreciation,
amortization, stock-based compensation and loss on disposal of
assets decreased $8.9 million, or 19%, in the current-year quarter
to $37.0 million, compared with $45.9 million in 2008, primarily
driven by decreased loss on disposal of assets. The Company's
results from continuing operations in the third quarter of 2009
decreased to $165.8 million compared to $166.5 million in the
prior-year quarter. The decrease of $0.7 million was driven by a
$21.3 million reduction in income from operations due primarily to
reduced revenues partially offset by lower expenses, as well as a
$28.7 million decrease in interest expense reflecting the cessation
of interest accruals on the Company's debt subject to compromise as
a result of the chapter 11 filing on June 13, 2009 (see Recent
Developments below) and lower effective rates, partially offset by
$7.0 million in reorganization costs associated with the chapter 11
filing. Adjusted EBITDA for the quarter decreased by $25.9 million,
or 11%, to $209.7 million compared to $235.6 million for the
prior-year quarter, reflecting the impact of reduced revenues
partially offset by lower third party interest in the EBITDA of
certain operations and reduced cash operating expenses. Nine Month
Results For the nine months ended September 30, 2009, total
revenues decreased $92.2 million, or 10%, to $811.0 million from
$903.2 million in the prior-year period, primarily reflecting
reduced attendance and guest spending. Attendance for the first
nine months of 2009 was 21.2 million, down 5% from 22.2 million in
the same period of 2008, benefitting from increased single-day
tickets and season pass attendance, but more than offset by
reductions in group sales along with decreased complimentary and
free promotional tickets. Guest spending per capita of $36.72 in
the first nine months of 2009 was down 5% from the prior-year
period's guest spending per capita of $38.58, reflecting decreases
in in-park spending and admissions. Included in the reduced guest
spending is the impact of a weaker Mexican peso and Canadian dollar
in the current-year period, affecting the U.S. dollar translated
results for the parks in Mexico City and Montreal. Exchange rates
accounted for approximately two percentage points, or $0.63, of the
guest spending per capita decline for the first nine months of 2009
compared to the prior-year period. Revenues for the nine months
were also impacted by a decline in sponsorship, licensing and other
fees of $12.3 million compared to the prior-year period, primarily
driven by lower international licensing fees, partially offset by
increased sponsorship revenue. The overall negative macroeconomic
environment impacted the first nine months of 2009. In addition,
attendance in Mexico and Texas was adversely affected by the second
quarter outbreak of the Swine flu. Also contributing to the first
nine months attendance decline was the impact of adverse weather
compared to the prior-year period. Cash operating expenses(2) for
the first nine months of 2009 were down 3% to $578.0 million from
$596.1 million in the same period of 2008, reflecting favorable
exchange rate impacts at the Mexico City and Montreal parks, lower
cost of sales due to decreased in-park revenues, reduced cash-based
incentive compensation, lower consulting and outside service costs,
decreased insurance expenses and lower marketing expenses due in
part to the timing of expenditures, partially offset by higher
labor costs at the park primarily reflecting increased minimum
wages. Non-cash operating expenses of depreciation, amortization,
stock-based compensation and loss on disposal of assets decreased
$9.6 million, or 8%, in the first nine months of 2009 to $115.7
million, compared with $125.3 million in the 2008 period, driven by
decreased loss on disposal of assets, as well as decreased
stock-based compensation and employee benefit expenses. The Company
incurred a loss from continuing operations of $74.8 million in the
current-year period compared to income from continuing operations
of $147.3 million in the same period of 2008. The decrease of
$222.1 million was driven by the prior-year debt extinguishment
gain of $107.7 million, $85.8 million of reorganization items
associated with the current-year chapter 11 filing, $64.5 million
of reduced income from operations due primarily to reduced revenues
partially offset by lower expenses, increased other expense of
$17.2 million reflecting the termination of an interest rate swap,
and $49.6 million of reduced net interest expense reflecting the
cessation of interest accruals on the Company's debt subject to
compromise as a result of the chapter 11 filing, the write-off of
discounts, premiums and deferred financing costs and lower
effective interest rates. Adjusted EBITDA for the first nine months
of 2009 was $205.0 million, a decrease of $65.1 million from the
Adjusted EBITDA of $270.1 million for the first nine months of
2008, reflecting the impact of reduced revenues partially offset by
lower cash operating expenses and lower third party interest in the
EBITDA of certain operations. Full-Year Forecast The Company is
forecasting to finish 2009 with an Adjusted EBITDA of approximately
$190 million, reflecting an Adjusted EBITDA loss of approximately
$15 million in the fourth quarter of 2009 compared to a positive
Adjusted EBITDA of $5.2 million in the fourth quarter of 2008.
Driving the year-over-year change for the fourth quarter is the
impact of declines in in-park guest spending and decreased revenues
due to adverse weather conditions during October, especially on the
east coast, which has led to a loss of approximately 450,000 in
attendance, compared to October 2008, as well as reduced
international licensing fees. The Company also anticipates slightly
higher cash operating expenses, reflecting the timing of specific
promotional and repairs and maintenance programs. Recent
Developments On June 13, 2009, Six Flags, Inc., Six Flags
Operations Inc., Six Flags Theme Parks Inc. ("SFTP") and certain of
SFTP's domestic subsidiaries filed a voluntary petition for relief
under chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the District of Delaware (Case No.
09-12019). As a result, the financial statements reflect the
Company's status as debtor in possession since that date. As of
September 30, 2009, the Company had unrestricted cash of $262.1
million available to pay administrative claims (i.e., those capital
expenditures and expenses that have been incurred since the filing
date) as well as liabilities from before the filing date that have
been approved for payment by the Court. Based on the final orders
by the Court with respect to the use of cash, the Company does not
currently expect it will require debtor in possession financing
during the chapter 11 proceedings. It is expected that the
Company's existing common and preferred stockholders as well as
certain unsecured creditors will have their claims compromised by
order of the Court. As a result of this expected compromise,
interest accruing after the filing date will not be recognized as
interest expense, except for interest on the Company's Senior
Secured Credit Facility dated May 25, 2007, which is not expected
to be compromised. About Six Flags Six Flags, Inc. is a
publicly-traded corporation headquartered in New York City and is
the world's largest regional theme park company with 20 parks
across the United States, Mexico and Canada. 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 develop,
prosecute, confirm and consummate one or more Chapter 11 plans of
reorganization; the potential adverse impact of the Chapter 11
filing on Six Flags' operations, management and employees; risks
associated with third parties seeking and obtaining court approval
to terminate or shorted the exclusivity period for Six Flags to
propose and confirm a plan of organization, to appoint a Chapter 11
trustee or to convert the cases to Chapter 7 cases; customer
response to the Chapter 11 filing; and the risk factors or
uncertainties listed from time to time in Six Flags' filings with
the Securities and Exchange Commission ("SEC") and with the U.S.
Bankruptcy Court in connection with Six Flags' Chapter 11 filing.
In addition, important factors, including 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. 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. 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 Quarterly Report on Form 10-Q for the quarter ended March
31, 2009, its Current Reports on Form 8-K filed with the SEC on May
7, 2009 and July 23, 2009, and its other filings and submissions
with the SEC, each of which are available free of charge on Six
Flags' website http://www.sixflags.com/. (1) Reported results from
continuing operations for all periods presented exclude the results
of parks sold in prior years and the park in New Orleans,
Louisiana, which has been closed since August 2005 due to damage
caused by Hurricane Katrina. The Company has agreed to terminate
its lease with the City of New Orleans and to settle the related
litigation by agreeing to pay $3 million and to transfer title to
the Company's property and equipment at the site to the City,
including land owned adjacent to the site. (2) Cash operating
expenses are presented as costs and expenses excluding
depreciation, amortization, stock-based compensation and loss on
disposal of assets in the statement of operations data. Six Flags,
Inc. (Debtor-in-Possession as of June 13, 2009) Three and Nine
Months Ended September 30, 2009 and 2008 (In Thousands, Except Per
Share Amounts) Statements of Operations Three Months Ended Nine
Months Ended Data (1) September 30, September 30,
------------------ ------------------ 2009 2008 2009 2008 ---- ----
---- ---- Revenue $457,035 $489,340 $811,013 $903,247 Costs and
expenses (excluding depreciation, amortization, stock-based
compensation and loss on disposal of assets) 232,521 234,605
577,965 596,137 Depreciation 36,949 35,610 107,209 103,605
Amortization 229 420 687 980 Stock-based compensation 521 78 1,962
6,301 --------- -------- -------- -------- (Gain) loss on disposal
of assets (723) 9,790 5,817 14,381 --------- -------- --------
-------- Income from operations 187,538 208,837 117,373 181,843
Interest expense (net) 16,061 44,782 90,518 140,094 Equity in
(income) loss from operations of partnerships (1,521) (418) (2,170)
1,368 Net (gain) on debt extinguishment - - - (107,743) Other
expense (income) 148 (2,034) 18,092 847 --------- -------- --------
-------- Income from continuing operations before reorganization
items and income taxes 172,850 166,507 10,933 147,277
Reorganization items 7,038 0 85,763 0 --------- -------- --------
-------- Income (loss) from continuing operations before income
taxes 165,812 166,507 (74,830) 147,277 Income tax expense (8,378)
(2,635) (5,214) (7,109) --------- -------- -------- -------- Income
(loss) from continuing operations 157,434 163,872 (80,044) 140,168
Discontinued operations 3,442 (789) 1,478 (15,765) ---------
-------- -------- -------- Net income (loss) $160,876 $163,083
$(78,566) $124,403 Less: Net income attributable to noncontrolling
interests $(17,536) $(21,358) $(35,072) $(41,324) ---------
-------- -------- -------- Net income (loss) attributable to Six
Flags, Inc. $143,340 $141,725 $(113,638) $83,079 ========= ========
======== ======== Net income (loss) applicable to Six Flags, Inc.
common stockholders $137,927 $136,233 $(129,980) $66,602 =========
======== ======== ======== Per share - basic: Income (loss) from
continuing operations applicable to Six Flags, Inc. common
stockholders $1.37 $1.41 $(1.35) $0.85 Discontinued operations
applicable to Six Flags, Inc. common stockholders $0.04 $(0.01)
$0.02 $(0.16) --------- -------- -------- -------- Net income
(loss) applicable to Six Flags, Inc. common stockholders $1.41
$1.40 $(1.33) $0.69 ========= ======== ======== ======== Per share
- diluted: Income (loss) from continuing operations applicable to
Six Flags, Inc. common stockholders $0.94 $0.95 $(1.35) $0.69
Discontinued operations applicable to Six Flags, Inc. common
stockholders 0.02 $0.00 $0.02 $(0.11) --------- -------- --------
-------- Net income (loss) applicable to Six Flags, Inc. common
stockholders $0.96 $0.95 $(1.33) $0.58 ========= ======== ========
======== Amounts attributable to Six Flags, Inc.: Income (loss)
from continuing operations $139,898 $142,514 $(115,116) $98,844
Discontinued operations $3,442 $(789) $1,478 $(15,765) ---------
-------- -------- -------- Net income (loss) $143,340 $141,725
$(113,638) $83,079 ========= ======== ======== ======== Balance
Sheet Data (In Thousands) September December Balance Sheet Data 30,
2009 31, 2008 --------- -------- Cash and cash equivalents
(excluding restricted cash) $262,126 $210,332 Total assets
3,075,739 3,030,129 Current portion of long-term debt (2) 305,448
253,970 Long-term debt (excluding current portion) (2) 843,905
2,044,230 Redeemable noncontrolling interests 373,469 414,394
Mandatory redeemable preferred stock (2) 0 302,382 Total
stockholders' deficit (482,708) (376,499) Leverage Ratio (3) 7.85
5.39 Restricted Subsidiary Leverage Ratio (3) 5.74 3.81 Three
Months Ended Nine Months Ended September 30, September 30,
--------------- ---------------- 2009 2008 2009 2008 ---- ---- ----
---- Other Data: Adjusted EBITDA (4) $209,662 $235,607 $205,046
$270,101 Weighted average shares outstanding - basic 97,864 97,344
97,607 96,787 Weighted average shares outstanding - diluted 148,747
155,227 97,607 140,881 Net cash provided by operating activities
$161,360 $172,686 $122,660 $145,037 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
Nine Months Ended September 30, September 30, ------------------
----------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net
income (loss) $160,876 $163,083 $(78,566) $124,403 Discontinued
operations (3,442) 789 (1,478) 15,765 Income tax expense 8,378
2,635 5,214 7,109 Reorganization items 7,038 0 85,763 0 Other
expense (income) 148 (2,034) 18,092 847 Net (gain) on debt
extinguishment - - - (107,743) Equity in (income) loss from
operations of partnerships (1,521) (418) (2,170) 1,368 Interest
expense (net) 16,061 44,782 90,518 140,094 (Gain) loss on disposal
of assets (723) 9,790 5,817 14,381 Amortization 229 420 687 980
Depreciation 36,949 35,610 107,209 103,605 Stock-based compensation
521 78 1,962 6,301 Third party interest in EBITDA of certain
operations (5) (14,852) (19,128) (28,002) (37,009) --------
-------- -------- -------- Adjusted EBITDA $209,662 $235,607
$205,046 $270,101 Cash paid for interest (net) and debt issuance
costs (12,444) (27,617) (75,364) (127,884) Capital expenditures
(net of property insurance recoveries) (6,806) (11,631) (73,720)
(83,842) Cash dividends and taxes (1,171) (1,745) (4,091) (11,626)
-------- -------- -------- -------- Free Cash Flow (6) $189,241
$194,614 $51,871 $46,749 ======== ======== ======== ======== The
following table sets forth a reconciliation of net income (loss) to
Adjusted EBITDA for the Full Year 2009 Forecast: Twelve Months
Ended December 31, 2009 ------------------- Net income (loss)
$(193,432) Discontinued operations (1,478) Income tax expense 2,936
Reorganization items 134,672 Other expense (income) 18,965 Equity
in (income) loss from operations of partnerships (1,908) Interest
expense (net) 100,809 (Gain) loss on disposal of assets 7,540
Amortization 916 Depreciation 141,731 Stock-based compensation
2,730 Third party interest in EBITDA of certain operations (5)
(23,481) ---------- Adjusted EBITDA $190,000 ========== 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. Excludes amounts that
have been reclassified to liabilities subject to compromise
(current portion of long-term debt ($131.1 million), long-term debt
($1.137 billion) and the PIERS ($306.6 million)). 3. 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. 4. 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. 5. 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. 6. 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. DATASOURCE: Six Flags, Inc. CONTACT:
Sandra Daniels, +1-212-652-9360, Investor Relations: William
Schmitt, +1-203-682-8200 Web Site: http://www.sixflags.com/
Copyright