NEWS: Six Flags Reports First Quarter Performance

[robbalvey]

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20050504006027&newsLang=en

 

NEW YORK--(BUSINESS WIRE)--May 4, 2005--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.

[Guest]

Thanks Robb, great article.

 

It is interesting to see such a struggling organization trying to get back up on the ladder. I would love to see the end of the year figures, I would love to see their attendance back up.

[Coasterlicious]

Well because Six Flags has so many parks.. its hard to believe they wouldnt make big earnings..