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Six Flags Entertainment Corporation: Investor Relations And Corporate Communications

The following excerpt is from the company's SEC filing.

+1-972-595-5083

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Another Record Quarter at Six Flags

Revenue and Cash EPS

Increase 7 and 19 Percent Respectively, Over Last Twelve Months

Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company, today announced record-high financial performance in the third quarter with revenue growing 6 percent or $33 million to $575 million and Adjusted EBITDA

growing 6 percent or $17 million to $308 million. The growth was primarily driven by higher admissions revenue and higher i n-park revenue as attendance grew by 9 percent to 12.9 million guests. On a constant currency

basis, which excludes the foreign exchange translation impact from the company’s parks in Mexico and Canada, revenue grew $41 million or 8 percent and Adjusted EBITDA grew $21 million or 7 percent.

“Our team has delivered yet another record quarter for our shareholders and we are proud to have achieved Project 500-an aspirational financial goal set in 2011 to achieve $500 million of Modified EBITDA by 2015,” said Jim Reid-Anderson, Chairman, President and CEO. “Our season pass sales, membership plan and pricing initiatives continue to enhance the company’s performance, and fuel revenue and cash flow growth. Our strategy is working, our execution is excellent, and we remain very well positioned as we work toward achieving our new long-term target of $600 million of Modified EBITDA by 2017.”

For the first nine months of 2015, revenue grew $54 million or 5 percent to $1.0 billion, and Adjusted EBITDA grew $26 million or 7 percent to $419 million driven primarily by both admissions and in-park revenue. On a constant currency basis, revenue for the first nine months of 2015 grew $68 million or 7 percent and Adjusted EBITDA grew $31 million or 8 percent. Attendance for the first nine months of the year grew 9 percent to 23.4 million guests.

Diluted earnings per share for the third quarter and nine months ended September 30, 2015 were $1.64 and $1.58, respectively, which were up 52 percent and 40 percent to prior year.

Revenue and Modified EBITDA

over the last twelve months increased 7 percent and 8 percent, respectively, as compared to the twelve-month period ending September 30, 2014. Cash Earnings Per Share for the twelve months ended September 30, 2015 was $2.98, an increase of 19 percent or $0.47 over the twelve months ended September 30, 2014.

The company’s trailing twelve months of Modified EBITDA reached $504 million, surpassing the long-term target set by the company in 2011, and the Modified EBITDA margin of 40.9 percent and Modified EBITDA minus Capex margin of 32.5 percent both reached new highs for the theme park industry.

The company’s Active Pass Base, which represents the total number of guests who have purchased a season pass or who are enrolled in the company’s membership program, increased 25 percent from September 30, 2014 to September 30, 2015. The significant increase in the Active Pass Base is in line with the company’s overall strategy to upsell guests to multi-visit passes. Season pass holders and members are the company’s most valuable guests since they generate higher revenue and cash flow for the company than a single day guest, and also provide an excellent hedge against inclement weather throughout the season.

Deferred revenue of $115 million increased by $24 million or 27 percent over September 30, 2014 primarily due to a higher level of season pass and membership sales.

Total guest spending per capita for the third quarter was $42.87, which was down $0.92 or 2 percent as compared to the third quarter of 2014, over half of which related to changes in foreign currency rates and the balance to a substantially higher mix of season pass holder and member attendance as compared to the same period last year. Admissions per capita decreased 2 percent to $25.22 and in-park spending per capita decreased 2 percent to $17.65, also primarily due to adverse foreign exchange rates and a higher mix of season pass and membership attendance. For the first nine months of 2015, guest spending per capita declined 3 percent. On a constant currency basis, third quarter and year-to-date guest spending per capita decreased $0.30 or 1 percent and $0.73 or 2 percent, respectively.

In the first nine months of 2015, the company generated $257 million of free cash flow after investing $91 million in new capital, paid $148 million in dividends, or $0.52 per common share per quarter, and repurchased $123 million or 2.7 million

shares of its common stock. Year-to-date through October 16, 2015 the company had repurchased $188 million, or 4.1 million shares of its common stock leaving 91.8 million shares outstanding.

Net Debt

as of September 30, 2015 was $1,314 million, which translates to a 2.8 times net leverage ratio.

Conference Call

At 8:00 a.m. Central Time on October 20, 2015, the company will host a conference call to discuss its third quarter 2015 financial performance. The call is accessible through either the Six Flags Investor Relations website at

www.sixflags.com/investors

or by dialing 1-855-889-1976 in the United States or +1-937-641-0558 outside the United States and requesting the Six Flags earnings call. A replay of the call will be available by dialing 1-855-859-2056 or +1-404-537-3406 through October 27, 2015.

About Six Flags Entertainment Corporation

Six Flags Entertainment Corporation is the world’s largest regional theme park company with $1.2 billion in revenue and 18 parks across...


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