- Revenues through April 27, 2009, which Includes Easter, Decreased
$12 million to $110 million, Driven by a Weaker Mexican Peso and
Reduced International Fees 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's New Year's Rockin' Eve and So You Think You Can Dance. Six
Flags, Inc. is a publicly-traded corporation (OTC:SIXF) (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. DATASOURCE: Six Flags, Inc. CONTACT:
Media, Sandra Daniels, +1-212-652-9393, Investors, William Schmitt,
+1-203-682-8200 Web Site: http://www.sixflags.com/
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