Six Flags, Inc. (NYSE: PKS) announced today its results of
operations for the quarter ended March 31, 2005. Revenues for the
2005 quarter were $54.4 million, representing a 21.3% increase from
the 2004 quarter. The increase reflects an attendance increase of
330,000, or 25.1%, resulting from a positive market reaction to our
new capital additions, especially in our Mexico City park, as well
as the greater number of operating days due to the timing of the
Easter holiday. Revenue per capita declined by 3.0% for the
quarter, reflecting primarily the larger percentage of operations
in the quarter from our Mexico City park, which has lower per
capita revenues than our domestic operations. This is expected to
reverse as we move into our key domestic operating season.
Operating costs and expenses, including depreciation and
amortization and non-cash compensation, were $171.5 million in the
first quarter of 2005, as compared to $162.0 million in the 2004
quarter, an increase of 5.8%. Excluding depreciation and
amortization and non-cash compensation, cash operating costs and
expenses were $133.7 million in 2005, as compared to $124.9 million
for 2004, an increase of $8.8 million (7.0%). This increase
includes $1.3 million in increased costs of goods sold primarily
reflecting higher in-park revenues. It also includes other planned
increases in operating expenses reflecting the earlier commencement
of park operations in many markets due to the timing of the Easter
holiday. EBITDA (Modified) was ($79.3) million in the first quarter
of 2005 as compared to ($80.1) million in the 2004 quarter.
Adjusted EBITDA, which excludes the interests of third parties in
EBITDA from our non-wholly owned parks, was ($74.0) million in the
2005 quarter, as compared to ($74.1) million in the 2004 quarter.
(1) The loss from continuing operations in the 2005 quarter was
$178.7 million. The loss reflects the recognition of an additional
valuation allowance of $67.2 million recorded in 2005 with respect
to the Company's domestic deferred tax asset, solely as a result of
off-season losses. This has the effect of increasing book tax
expense for the period by the amount of the allowance. This has no
effect on the Company's cash tax expense or its ability to utilize
net operating loss carry forwards in future profitable years.
Absent this valuation allowance, the loss from continuing
operations would have been $111.5 million in the 2005 quarter, as
compared to $119.9 million in 2004. Discussion and Outlook Kieran
E. Burke, Chairman and Chief Executive Officer of Six Flags, said,
"We are pleased with the start of our 2005 season. "We have seen
good performance in the aggregate at our parks that are currently
in operation, although operations in the first quarter and year to
date are not meaningful portions of our full year. Attendance year
to date through last Sunday is 4.2% ahead of the prior year and
park level revenues are up by 3.3% year over year. Further, we
continue to experience growth in hard ticket group bookings and are
substantially ahead in season pass sales. "We expect attendance
growth in 2005 to be driven by our robust plan for capital
additions to our parks combined with our ongoing guest service
initiatives. That plan encompasses new attractions in 13 of our 18
domestic theme parks and three of our water parks, and a children's
area in our Montreal park, with the largest initiatives
concentrated in our major markets, especially in Chicago and New
Jersey. We have also added a major new roller coaster in our park
in Mexico City which continues to experience strong year over year
attendance gains. We believe that this investment program should
drive significant attendance and revenue growth in 2005 and set the
stage for several years of significant growth. "We continue to
anticipate generating Adjusted EBITDA of $300 million in 2005. This
is based on expected attendance growth of approximately 4.75% and a
per capita spending increase of approximately 2.5%." Six Flags,
Inc. is the world's largest regional theme park company. -0- *T (1)
See note 3 to the following tables for a discussion of EBITDA
(Modified) and Adjusted EBITDA and a reconciliation of these
amounts to net loss. *T 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. Although the Company 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 factors
impacting attendance, such as local conditions, events,
disturbances and terrorist activities, risks of accidents occurring
at the Company's parks, adverse weather conditions, general
economic conditions (including consumer spending patterns),
competition, pending, threatened or future legal proceedings and
other factors could cause actual results to differ materially from
the Company's 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 "Business - Risk Factors" in the
Company's Annual Report on Form 10-K for the year ended December
31, 2004, which is available free of charge on the Company's
website (www.sixflags.com). This release and prior releases are
available on the Company's Worldwide Web site at www.sixflags.com.
You may register to receive Six Flags, Inc. future press releases
or to download a complete Digital Investor Kit(TM) including press
releases, regulatory filings and corporate materials by clicking on
the "Digital Investor Kit(TM)" icon at www.kcsa.com. -0- *T Six
Flags, Inc. Statements of Operations Data (1) Quarters Ended March
31, 2005 and 2004 (In Thousands, Except Per Share Amounts) Three
Months Ended March 31, (Unaudited) ------------------- 2005 2004
--------- --------- Revenue $ 54,380 $ 44,813 Costs and expenses
(excluding depreciation, amortization and non-cash compensation)
133,706 124,904 Depreciation 37,246 36,656 Amortization 222 326
Non-cash compensation 288 161 --------- --------- Income (loss)
from operations (117,082) (117,234) Interest expense (net) (44,745)
(51,907) Minority interest in losses 6,563 7,354 Early repurchase
of debt (19,303) (25,177) Other expense (3,197) (2,945) ---------
--------- Loss from continuing operations before income taxes
(177,674) (189,909) Income tax expense (benefit) 955 (69,994)
--------- --------- Loss from continuing operations (178,719)
(119,915) Discontinued operations, net of tax benefit of $55,759 in
2004 - (284,904) --------- --------- Net loss $(178,719)$(404,819)
========= ========= Net loss applicable to common stock
$(184,212)$(410,312) ========= ========= Per share - basic and
diluted: Loss from continuing operations $ (1.98)$ (1.35)
Discontinued operations - (3.06) --------- --------- Net loss $
(1.98)$ (4.41) ========= ========= Other Data: Loss from continuing
operations before valuation allowance and loss on early repurchase
of debt (2) $ (97,663)$(109,798) Loss from continuing operations
per common share (basic and diluted) before valuation allowance and
loss on early repurchase of debt (2) $ (1.05)$ (1.18) EBITDA
(Modified) (3) $ (79,326)$ (80,091) Adjusted EBITDA (3) $ (73,983)$
(74,108) Average weighted shares outstanding - basic and diluted
93,104 93,018 Net cash used in operating activities $
(97,298)$(104,118) Balance Sheet Data (In Thousands) # # # March
31, December 31, 2005 2004 ---------- ------------ (Unaudited) Cash
and cash equivalents (excluding restricted cash) $ 64,184 $ 68,807
Total assets 3,535,401 3,642,227 Current portion of long-term debt
(excluding debt called for repayment) 171,384 24,394 Long-term debt
(excluding current portion) 2,137,048 2,125,121 Mandatorily
redeemable preferred stock 282,527 282,245 Total stockholders'
equity 640,322 826,065 (1) Revenues and expenses of international
operations are converted into dollars on a current basis as
provided by accounting principles generally accepted in the United
States ("GAAP"). (2) The Company's reported results include items
of income and expense that we believe are typically excluded by
securities analysts in their published estimates for the Company's
financial results. These excluded items include gains and losses on
early repurchases of debt and deferred tax asset valuation
allowances. The following tables set forth the calculation of net
loss applicable to common stock and net loss applicable to common
stock per common share (basic) before giving effect to those
excluded items and before discontinued operation, in the case of
the 2004 period. This measure 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. (In thousands)
-------------------- Three Months Ended March 31,
-------------------- 2005 2004 ---------- --------- (Unaudited) Net
loss applicable to common stock $(184,212)$(410,312) Discontinued
operations, net of tax - 284,904 Valuation allowance 67,246 - Early
repurchase of debt 19,303 25,177 Income tax benefit from early
repurchase of debt - (9,567) --------- --------- Loss from
continuing operations before valuation allowance and loss on early
repurchase of debt $ (97,663)$(109,798) ========= ========= Loss
Per Common Share (Basic) ----------------------------- Three Months
Ended March 31, -------------------- 2005 2004 ---------- ---------
Net loss applicable to common stock per share $ (1.98)$ (4.41)
Discontinued operations, net of tax - 3.06 Valuation allowance 0.72
- Early repurchase of debt 0.21 0.27 Income tax benefit from early
repurchase of debt - (0.10) ---------- --------- Loss from
continuing operations per common share (basic and diluted) before
valuation allowance and loss on early repurchase of debt $ (1.05)$
(1.18) ========== ========= (3) EBITDA (Modified) is defined as net
loss before discontinued operations, income tax expense (benefit),
other expense, early repurchase of debt (formerly extraordinary
loss), minority interest in earnings (losses), interest expense
(net), non-cash compensation, amortization and depreciation.
Adjusted EBITDA is defined as EBITDA (Modified) minus the interest
of third parties in EBITDA of the four parks that are less than
wholly owned. The Company believes that EBITDA (Modified) and
Adjusted EBITDA (collectively, the "EBITDA-Based Measures") provide
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 the EBITDA-Based
Measures are 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. Neither of
the EBITDA-Based Measures is defined by GAAP and neither should 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. The following table sets
forth a reconciliation of net loss to EBITDA (Modified) and
Adjusted EBITDA for the periods shown (in thousands). Three Months
Ended March 31, -------------------- 2005 2004 ---------- ---------
(Unaudited) Net loss $(178,719)$(404,819) Discontinued operations,
net of tax benefit - 284,904 Income tax expense (benefit) 955
(69,994) Other expense 3,197 2,945 Early repurchase of debt 19,303
25,177 Minority interest in losses (6,563) (7,354) Interest expense
(net) 44,745 51,907 Non-cash compensation 288 161 Amortization 222
326 Depreciation 37,246 36,656 --------- --------- EBITDA
(Modified) (79,326) (80,091) Third party interest in EBITDA of
certain parks (a) 5,343 5,983 --------- --------- Adjusted EBITDA $
(73,983)$ (74,108) ========= ========= *T The Company is not able
as of this date to provide a reliable estimate of its income tax
benefit and other income (expense) for the year ending December 31,
2005. Therefore, a reliable estimate of its net loss for that year
is not available. Accordingly, the following table sets forth a
reconciliation of expected income from operations for 2005 to
expected EBITDA (Modified) and expected Adjusted EBITDA for such
year. Since the EBITDA-Based Measures are calculated before income
taxes and other expense, the absence of estimates with respect to
these items would not affect the expected EBITDA-Based Measures
presented. For 2005, expected interest expense (net) is
approximately $185,000,000 and expected minority interest in
earnings is approximately $39,000,000. -0- *T Year Ending December
31, 2005 ----------------- Income from operations $ 186,300
Non-cash compensation 800 Amortization 900 Depreciation 156,000
----------------- EBITDA (Modified) 344,000 Third-party interest in
EBITDA of certain parks (a) 44,000 ----------------- Adjusted
EBITDA $ 300,000 ================= (a) Represents interest of third
parties in EBITDA of Six Flags Over Georgia, Six Flags Over Texas,
Six Flags White Water Atlanta and Six Flags Marine World. *T
Six Flags (NYSE:PKS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Six Flags (NYSE:PKS)
Historical Stock Chart
From Jul 2023 to Jul 2024