New Long-Term Aspirational Goal Set by Six Flags
October 26 2016 - 6:55AM
Business Wire
Company Targets $750 Million of Modified
EBITDA1 by 2020
Six Flags Entertainment Corporation (NYSE: SIX), the world’s
largest regional theme park company, today announced a new
long-term financial target, which is an aspirational goal of
achieving $750 million of Modified EBITDA1 by calendar year
2020.
“Based on our consistent earnings growth and business momentum,
we have established a new long-term aspirational target. We believe
it is important for both investors and our employees to keep their
eyes set on long-term stretch goals, while continuing to deliver
strong results in the near-term,” said John Duffey, President and
CEO. “Our new Project 750 target will be achieved by focusing on
the same key factors that drove our earnings growth over the last
six years—further increasing ticket yields, growing our attendance
base, increasing the penetration of our all-season dining program
and developing additional international licensing
opportunities.”
Six Flags’ previous long-term aspirational targets have helped
the company achieve the following milestones:
- A 780 percent return on investment for
our shareholders since May 2010 as compared to a 115 percent return
for the S&P 500;
- A $4 billion increase in the company’s
market capitalization from May 2010 to present, along with nearly
$1 billion in dividends paid over the same time period;
- Record financial performance every year
from 2010 to 2015;
- Increase in Adjusted EBITDA2 less
capital expenditures from $99 million in 2009 to $369 million on a
trailing twelve-month basis as of September 30, 2016—a gain of $270
million; and
- Industry-leading Modified EBITDA and
Modified EBITDA less capital expenditures margins of 41 percent and
31 percent, respectively.
The announcement comes as the company has recognized the
probable achievement of Project 600, the long-term incentive
compensation program established by the company in October
2014.
About Six Flags Entertainment
Corporation
Six Flags Entertainment Corporation is the world’s largest
regional theme park company with $1.3 billion in revenue and 18
parks across the United States, Mexico and Canada. For 55 years,
Six Flags has entertained millions of families with world-class
coasters, themed rides, thrilling water parks and unique
attractions. For more information, visit www.sixflags.com.
Forward-Looking
Statements
The information contained in this 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, (i) the adequacy of cash flows
from operations, available cash and available amounts under our
credit facilities to meet our future liquidity needs, (ii) our
ability to roll out our capital enhancements in a timely and cost
effective manner, (iii) our ability to improve operating results by
implementing strategic cost reductions, and organizational and
personnel changes without adversely affecting our business, (iv)
our operations and results of operations, and (v) the risk factors
or uncertainties listed from time to time in the company’s filings
with the Securities and Exchange Commission ("SEC"). In addition,
important factors, including factors impacting attendance, such as
local conditions, contagious diseases, events, disturbances and
terrorist activities; recall of food, toys and other retail
products sold at our parks; risk of accidents occurring at the
company’s parks or other parks in the industry and adverse
publicity concerning our parks or other parks in the industry;
inability to achieve desired improvements and financial performance
targets set forth in our aspirational goals; adverse weather
conditions such as excess heat or cold, rain and storms; general
financial and credit market conditions; economic conditions
(including customer spending patterns); changes in public and
consumer tastes; construction delays in capital improvements or
ride downtime; competition with other theme parks and other
entertainment alternatives; dependence on a seasonal workforce;
unionization activities and labor disputes; laws and regulations
affecting labor and employee benefit costs, including increases in
state and federally mandated minimum wages, and healthcare reform;
pending, threatened or future legal proceedings and the significant
expenses associated with litigation; cyber security risks and other
factors could cause actual results to differ materially from the
company’s expectations. Although the company believes that the
expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will be
realized and actual results could vary materially. 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 the
company’s Annual and Quarterly Reports on Forms 10-K and 10-Q, and
its other filings and submissions with the SEC, each of which are
available free of charge on the company’s investor relations
website at www.investors.sixflags.com and on the SEC’s website at
www.sec.gov.
Footnotes
1)
“Modified EBITDA,” a non-GAAP measure, is
defined as our consolidated income (loss) from continuing
operations: excluding the cumulative effect of changes in
accounting principles, discontinued operations gains or losses,
income tax expense or benefit, restructure costs or recoveries,
reorganization items (net), other income or expense, gain or loss
on early extinguishment of debt, equity in income or loss of
investees, interest expense (net), gain or loss on disposal of
assets, gain or loss on the sale of investees, amortization,
depreciation, stock-based compensation, and fresh start accounting
valuation adjustments. Modified EBITDA as defined herein may differ
from similarly titled measures presented by other companies.
2)
"Adjusted EBITDA," a non-GAAP measure, is
defined as Modified EBITDA minus the interests of third parties in
the Adjusted EBITDA of properties that are less than wholly owned
(consisting of Six Flags Over Georgia, Six Flags White Water
Atlanta and Six Flags Over Texas). Adjusted EBITDA is approximately
equal to “Parent Consolidated Adjusted EBITDA” as defined in our
secured credit agreement, except that Parent Consolidated Adjusted
EBITDA excludes Adjusted EBITDA from equity investees that is not
distributed to us in cash on a net basis and has limitations on the
amounts of certain expenses that are excluded from the calculation.
Adjusted EBITDA as defined herein may differ from similarly titled
measures presented by other companies. Our board of directors and
management use Adjusted EBITDA to measure our performance and our
current management incentive compensation plans are based largely
on Adjusted EBITDA. We believe that Adjusted EBITDA is frequently
used by all our sell-side analysts and most investors as their
primary measure of our performance in the evaluation of companies
in our industry. In addition, the instruments governing our
indebtedness use Adjusted EBITDA to measure our compliance with
certain covenants and, in certain circumstances, our ability to
make certain borrowings. Adjusted EBITDA, as computed by us, may
not be comparable to similar metrics used by other companies in our
industry.
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Six Flags Entertainment CorporationNancy Krejsa,
+1-972-595-5083nkrejsa@sftp.comorStephen Purtell,
+1-972-595-5180spurtell@sftp.com
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