Six Flags Reports Nine Months and Third Quarter Results; Strong, Broad-Based Performance Demonstrates Successful Implementation of Investment Program, Guest Service Initiatives, and Advertising Campaign.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Six Flags For the national flags of Texas, see . Six Flags (NYSE: SIX) is the world's largest chain of amusement parks and theme parks and is headquartered in New York City. There are 20 such parks run by Six Flags. , Inc. (NYSE NYSE See: New York Stock Exchange : PKS PKS Penalty Kicks Saved (soccer; goalie save) PKS Partai Keadilan Sejahtera (Indonesia) PKS Phi Kappa Sigma (international male fraternity) PKS Pallister-Killian Syndrome ): --Company Affirms Full Year Outlook and Expects Similar EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become Growth in 2006 --Comments on Progress in Sale Process Six Flags, Inc. (the "Company") (NYSE: PKS) announced today its results of operations for the nine months and quarter ended September September: see month. 30, 2005. Kieran E. Burke The name Burke (from Irish Gaelic de Burca, of Norman origin). In English the meaning of the name Burke is "fortified hill." See also Berkley. Places Australia
Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased performance of our parks this quarter and for the year to date period, as well as the solid results that we enjoyed in our October October: see month. operations. These impressive results reflect the successful implementation of our investment program, our ongoing guest service initiatives, and year two of our new advertising campaign. We are confident, given the breadth of this improvement, that we have set the stage for continued growth in the future through the continued application of our operating plan." The results of operations reflect the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. for all periods presented of the operations, assets and liabilities of Six Flags AstroWorld AstroWorld was a seasonally operated theme park located on approximately 57 acres of land (later expanded to over 75 acres) between Kirby Drive and Fannin Avenue, directly south of Loop 610 in Houston, Texas. The theme park opened on June 1, 1968. in Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , which was permanently closed at the end of the 2005 season. Prior period results have been reclassified to classify clas·si·fy tr.v. clas·si·fied, clas·si·fy·ing, clas·si·fies 1. To arrange or organize according to class or category. 2. To designate (a document, for example) as confidential, secret, or top secret. AstroWorld as discontinued operations, in order to provide meaningful year over year comparisons. Nine Month Results For the first nine months of 2005, revenues were $977.9 million, compared to $893.2 million for the comparable period of 2004, an increase of $84.7 million, or 9.5%. Attendance for the period increased 1.6 million, or 5.6%, while total revenue per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. increased by 3.6% to $32.49. Operating costs operating costs npl → gastos mpl operacionales and expenses, including depreciation, amortization and non-cash compensation, were $735.4 million in the 2005 nine-month period, as compared to $693.2 million in the prior-year period. Excluding depreciation, amortization and non-cash compensation, cash operating costs and expenses were $626.1 million in 2005 and $587.8 million in 2004, an increase of 6.5%, primarily reflecting increased cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold as a result of significantly higher sales volumes, as well as planned increases in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. to enhance the guest experience at the Company's parks. EBITDA (Modified mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. ) was $351.8 million in the 2005 period as compared to $305.3 million in the 2004 period. Adjusted EBITDA for the 2005 period was $304.1 million compared to $259.5 million in 2004. (See note 3 to the following table for a discussion of EBITDA (Modified) and Adjusted EBITDA, and for a reconciliation of these amounts to net income (loss)) Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $27.9 million in the first nine months of 2005 as compared to a loss from continuing operations of $(67.7) million in the 2004 period. Net income was $28.1 million in the 2005 period, as compared to a loss of $355.3 million in the 2004 period. Net income applicable to common stock was $11.6 million, as compared to a loss of $371.8 million in the 2004 period. The loss in the 2004 period reflects the effect of a loss from discontinued operations of $287.6 million arising out of the sales of our Cleveland Cleveland, former county, England Cleveland, former county, NE England, created under the Local Government Act of 1972 (effective 1974). It was composed of the county boroughs of Hartlepool and Teeside and parts of the former counties of Durham and and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. parks, the impact of a non-cash impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. loss of $14.4 million associated with the Company's investment in the Madrid Madrid (mədrĭd`, Span. mäthhrēth`), city (1990 pop. 3,120,732), capital of Spain and of Madrid prov., central Spain, and the focus of its own autonomous region, on the Manzanares River. park we managed prior to November November: see month. 2004 and related assets and a loss on early repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of debt of $31.9 million. The 2005 period reflects the effect of a loss on early repurchase of debt of $19.3 million. The 2004 loss also reflects the impact of a valuation allowance of $39.2 million recorded in the 2004 period with respect to the Company's domestic deferred tax asset, which had the effect of increasing book tax expense for the period by the amount of the allowance. Because we generated taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. in the 2005 period, we were able to reverse a portion of the tax allowance that had been established in 2004, resulting in a lower tax expense for the 2005 period. Had that reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its not occurred, the income tax expense for 2005 would have been $9.9 million. (See note 2 to the following table) Three Month Results Revenues for the 2005 third quarter were $559.0 million, compared to $509.0 million for the comparable quarter of 2004, an increase of $50.0 million, or 9.8%. The 2005 performance reflects an increase in attendance of 659,200, or 4.0% and an increase in per capita revenues of 5.5%. Operating costs and expenses, including depreciation, amortization and non-cash compensation, were $293.0 million in the 2005 quarter and $272.1 million in the year ago period. Excluding depreciation, amortization and non-cash compensation, cash operating costs and expenses were $255.4 million in the third quarter of 2005, as compared to $236.5 million in the prior-year quarter, an increase of 8.0%. EBITDA (Modified) was $303.6 million in the third quarter of 2005 compared to $272.5 million in the 2004 quarter. Adjusted EBITDA for the third quarter of 2005 was $277.3 million compared to $245.3 million in the third quarter of 2004. Income from continuing operations before tax was $194.6 million in the third quarter of 2005 as compared to $151.1 million in the 2004 period. Net income for the quarter was $195.7 million, or $1.29 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Net income for the 2004 quarter was $56.4 million, or $0.53 per diluted share. Earnings per share in the 2005 quarter reflects the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). for the quarter of the Company's 4.5% Convertible Notes Due 2015 issued in November 2004 and the Company's convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . Earnings per share for the 2004 period reflects the dilutive effect of Company's convertible preferred stock. The 2005 net income and earnings per share reflect the benefit of the reversal of the tax valuation allowance which reduced tax expense for the period by $70.0 million. In addition, the 2004 period reflects the impact of the Madrid impairment and the $39.2 million tax valuation allowance discussed above. (See note 2 to the following table) Outlook Kieran Burke said, "Given our strong nine-month performance and our solid October results, we are confident that we will achieve Adjusted EBITDA for the full year of at least $300 million, including the performance of AstroWorld, representing at least 16% year over year growth. We expect to have full year revenue growth at virtually every park, underscoring the strength of our performance and the soundness of our operating plan. Next year, we will be introducing several exciting new rides and attractions as part of a $125 million capital program that will see thrill thrill (thril) a vibration felt by the examiner on palpation. diastolic thrill one felt over the precordium during ventricular diastole in advanced aortic insufficiency. and family additions to a number of parks. These additions will include four great new coasters - one each in New Jersey, Montreal Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. , Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. and Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , including our blockbuster block·bust·er n. 1. Something, such as a film or book, that sustains widespread popularity and achieves enormous sales. 2. A high-explosive bomb used for demolition purposes. 3. Tatsu Tatsu is a steel flying roller coaster at Six Flags Magic Mountain in Valencia, California. It opened May 13, 2006. History "Tatsu" ( coaster What a bad CD-R disc is often called. See CD-R and underrun. in Los Angeles and the GOLIATH hypercoaster Noun 1. hypercoaster - a roller coaster that goes up 200 feet or higher and can catapult riders from 0 to 70 mph in 4 seconds by motors originally designed to launch rockets in Atlanta. We will also debut several family-oriented rides and children's sections in other parks. In addition, we are on track with our plans to open the Six Flags Great Escape Lodge lodge Originally an insubstantial dwelling, or one erected for a temporary occupational purpose (e.g., woodcutting or masonry) or for use during the hunting season. The lodge became a more permanent type of house as the lands around European mansions were developed as parks. & Indoor Waterpark An indoor waterpark is a type of waterpark that is located inside a building. An indoor waterpark has the ability to stay open year-round, as it is not affected by weather conditions. this winter, which we will manage and in which we will have a 41% ownership interest. This capital program is fully committed (Law) committed to prison for trial, in distinction from being detained for examination. See also: Fully , is under construction and will be ready for the 2006 season. These new attractions will build upon the momentum of this season, and, as we continue our focus on excellent guest experience at our parks and solid marketing, should position us to continue our strong performance into 2006. As a result, we anticipate achieving $340 million in Adjusted EBITDA in 2006, with attendance growth of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3.5-4% and revenue growth of approximately 6.5-7%." As previously announced, the AstroWorld theme park in Houston has been permanently closed as of the end of the 2005 season, and the Company has engaged Cushman Cushman is a manufacturer of industrial vehicles, personal vehicles, and other custom vehicles, including parking patrol auto rickshaws. Models Haulster (Small industrial multi-purpose truck) Bellhop Series (Golf Carts) Tug(Large Truck) & Wakefield Wakefield, estate, United States Wakefield, family estate of George Washington, on the Potomac River, E Va.; part of the George Washington Birthplace National Monument (see National Parks and Monuments, table). to market the 104-acre site to the real estate development community. The Company expects that a sale will yield significant proceeds given the property's size and location within a revitalized re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. and dynamic area of the city and its proximity PROXIMITY. Kindred between two persons. Dig. 38, 16, 8. to so many of Houston's civic, healthcare and business enterprises. Proceeds from the sale will be used for debt reduction and, subject to bank lender consent, general corporate purposes. Sale Process Update Kieran Burke also said "as previously announced, the Board initiated a sale process for the Company that it believes is the best way to deliver full and fair value to all Six Flags stockholders at this time, particularly in light of the Company's strong 2005 broad-based performance. We are pleased with the progress of the sale process. We have received initial bids from a number of capable prospective financial and strategic buyers. We are targeting early December December: see month. to receive final bids. We remain confident that, unless the sale process is disrupted dis·rupt tr.v. dis·rupt·ed, dis·rupt·ing, dis·rupts 1. To throw into confusion or disorder: Protesters disrupted the candidate's speech. 2. , we will end up with an attractive transaction that we will be recommending to stockholders before the end of December." The Company will hold a teleconference at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on Tuesday Tuesday: see week. , November 8, 2005 for interested investors, analysts and portfolio managers. Listeners in the U.S. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of should dial 877-375-2162 at least 10 minutes prior to the start of the conference. Listeners outside the U.S. or Canada should dial 973-582-2734. The conference ID number is 6663183. A playback Playback could mean:
The teleconference will also be broadcast live as a listen-only Web cast on www.sixflags.com and www.fulldisclosure.com. The Web cast will be archived for one year. Six Flags, Inc. is the world's largest regional theme park company. The information contained in this news release, other than historical information, consists of forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. patterns and interest rate levels), competition, pending, threatened or future legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 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 website at www.sixflags.com.
Six Flags, Inc.
Statement of Operations Data (1)
Three and Nine Months Ended September 30, 2005
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months ended Nine Months ended
September 30, September 30,
Statement of Operations Data ----------------- -------------------
2005 2004 2005 2004
-------- -------- --------- ---------
Theme park admissions 305,662 276,074 529,903 480,185
Theme park food, merchandise
and other 253,307 232,938 447,956 412,976
-------- -------- --------- ---------
Total revenue $558,969 $509,012 $ 977,859 $ 893,161
Costs and expenses (excluding
depreciation, amortization and
non-cash compensation) 255,353 236,481 626,074 587,817
Depreciation 37,263 35,088 108,038 103,925
Amortization 222 323 667 976
Non-cash compensation 166 160 620 482
-------- -------- --------- ---------
Income from operations 265,965 236,960 242,460 199,961
Interest expense (45,962) (46,668) (139,670) (148,453)
Interest income 1,831 1,873 5,019 2,635
Minority interest in earnings (25,060) (25,814) (44,028) (41,696)
Early repurchase of debt - (490) (19,303) (31,862)
Other expense (2,188) (14,803) (12,932) (19,354)
-------- -------- --------- ---------
Income (loss) from continuing
operations before income taxes 194,586 151,058 31,546 (38,769)
Income tax expense 368 98,673 3,671 28,916
-------- -------- --------- ---------
Income (loss) from continuing
operations 194,218 52,385 27,875 (67,685)
Discontinued operations, net of
tax expense of $902 (three
months) and $120 (nine months)
in 2005 and $2,442 (three
months) and tax benefit of
($57,406) (nine months) in
2004 1,470 3,982 195 (287,593)
-------- -------- --------- ---------
Net income (loss) $195,688 $ 56,367 $ 28,070 $(355,278)
======== ======== ========= =========
Net income (loss) applicable to
common stock $190,195 $ 50,874 $ 11,592 $(371,756)
======== ======== ========= =========
Per share - basic:
Income (loss) from
continuing operations $ 2.03 $ 0.50 $ 0.12 $ (0.90)
Discontinued operations, net
of tax 0.01 0.05 - (3.10)
-------- -------- --------- ---------
Net income (loss) $ 2.04 $ 0.55 $ 0.12 $ (4.00)
======== ======== ========= =========
Per share - diluted:
Income (loss) from
continuing operations $ 1.28 $ 0.49 $ 0.12 $ (0.90)
Discontinued operations, net
of tax 0.01 0.04 - (3.10)
-------- -------- --------- ---------
Net income (loss) $ 1.29 $ 0.53 $ 0.12 $ (4.00)
======== ======== ========= =========
Other Data:
Income (loss) from continuing
operations before impairment
charge, effect of valuation
allowance, valuation allowance
reversal and loss on early
repurchase of debt (2) $124,199 $106,298 $ 24,498 $ (10,800)
Income (loss) from continuing
operations per share
before impairment charge,
valuation allowance, valuation
allowance reversal and loss on
early repurchase of debt (2) $ 0.83 $ 1.00 $ 0.26 $ (0.12)
EBITDA (Modified)(3) $303,616 $272,531 $ 351,785 $ 305,344
Adjusted EBITDA (3) $277,336 $245,346 $ 304,097 $ 259,535
Average weighted shares
outstanding - basic 93,107 93,042 93,106 93,034
Average weighted shares
outstanding - diluted 154,051 106,831 93,106 93,034
Net cash provided by (used in)
operating activities $186,216 $129,409 $ 211,362 $ 114,659
Balance Sheet Data
(In Thousands)
September December
Balance Sheet Data 30, 2005 31, 2004
----------- ----------
(Unaudited)
Cash and cash equivalents $ 116,379 $ 68,807
Total assets 3,605,225 3,642,227
Current portion of long-term debt (excluding
debt Called for repayment) 16,018 24,394
Long-term debt (excluding current portion) 2,131,490 2,125,121
Mandatorily redeemable preferred stock 283,090 282,245
Total stockholders' equity 843,231 826,065
(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 the Company believes 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 effects of deferred tax asset valuation
allowances. The following tables set forth the calculation of net
income (loss) and net income (loss) per common share before giving
effect to those excluded items and before discontinued operations
and the Madrid impairment charge in the case of the 2004 periods.
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 Nine Months ended
September 30, September 30,
-------------------- -----------------
2005 2004 2005 2004
---------- --------- ------- ---------
(Unaudited)
Net income (loss) (a) $ 195,688 56,367 $ 11,592 (371,756)
Discontinued operations, net of
tax (1,470) (3,982) (195) 287,593
Impairment charge relating to
Madrid park - 14,363 - 14,363
Effect of valuation allowance - 39,246 - 39,246
Effect of reversal of valuation
allowance (70,019) - (6,202) -
Early repurchase of debt - 490 19,303 31,862
Income tax benefit from early
repurchase of debt - (186) - (12,108)
---------- -------- -------- ---------
Income (loss) from continuing
operations before impairment
charge, effect of valuation
allowance, valuation allowance
reversal and loss on early
repurchase of debt $ 124,199 106,298 $ 24,498 (10,800)
========== ======== ======== =========
(a) applicable to common stock for nine month periods
Income (loss) Per Share
-----------------------
(In thousands)
-------------------------------
Three Months Nine Months
ended ended
September 30, September 30,
--------------- ---------------
2005 2004 2005 2004
------- ------- ------- -------
(Unaudited)
Net income (loss) (a) $ 1.29 0.53 $ 0.12 (4.00)
Discontinued operations, net of tax (0.01) (0.04) - 3.10
Impairment charge relating to Madrid
park - 0.13 - 0.15
Effect of valuation allowance - 0.37 - 0.42
Effect of reversal of valuation
allowance (0.45) - (0.07) -
Early repurchase of debt - 0.01 0.21 0.34
Income tax benefit from early
repurchase of debt - - - (0.13)
------- ------- ------- -------
Income (loss) from continuing
operations before impairment
charge, effect of valuation
allowance, valuation allowance
reversal and loss on early
repurchase of debt $ 0.83 1.00 0.26 (0.12)
======= ======= ======= =======
(a) applicable to common stock for nine month periods
(3) EBITDA (Modified) is defined as net income (loss), before
discontinued operations (net of tax) income tax expense (benefit),
other expense, early repurchase of debt (formerly extraordinary
loss), minority interest in earnings, interest expense (net),
amortization, depreciation and non-cash compensation. 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 income
(loss) to EBITDA (Modified) and Adjusted EBITDA for the periods
shown (in thousands).
(In thousands)
------------------------------------
Three Months ended Nine Months ended
September 30, September 30,
------------------ -----------------
2005 2004 2005 2004
-------- --------- ------- ---------
(Unaudited)
Net income (loss) $195,688 56,367 $ 28,070 (355,278)
Discontinued operations,
inclusive of tax benefit (1,470) (3,982) (195) 287,593
Income tax expense (benefit) 368 98,673 3,671 28,916
Other expense 2,188 14,803 12,932 19,354
Early repurchase of debt - 490 19,303 31,862
Minority interest in earnings 25,060 25,814 44,028 41,696
Interest expense (net) 44,131 44,795 134,651 145,818
Amortization 222 323 667 976
Depreciation 37,263 35,088 108,038 103,925
Non-cash compensation 166 160 620 482
-------- -------- -------- ---------
EBITDA (Modified) 303,616 272,531 351,785 305,344
Third party interest in EBITDA of
certain parks(a) (26,280) (27,185) (47,688) (45,809)
-------- -------- -------- ---------
Adjusted EBITDA $277,336 245,346 $304,097 259,535
======== ======== ======== =========
The Company is not able as of this date to provide a reliable
estimate of its income tax expense (benefit) and other income
(expense) for the years ending December 31, 2005 and 2006. Therefore,
a reliable estimate of its net loss for those years is not available.
Accordingly, the following table sets forth a reconciliation of
expected income from continuing operations for those years to expected
EBITDA (Modified) and expected Adjusted EBITDA for each 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. For 2006, expected interest expense (net) is
approximately $185,000,000 and expected minority interest in earnings
is approximately $42,000,000.
Year Ending December 31,
-------------------------
2005 2006
------------ ------------
(In thousands)
Income from operations $ 186,300 227,000
Non-cash compensation 800 1,000
Amortization 900 1,000
Depreciation 156,000 158,000
------------ ------------
EBITDA (Modified) 344,000 387,000
Third-party interest in EBITDA of certain
parks(a) (44,000) (47,000)
------------ ------------
Adjusted EBITDA $ 300,000 340,000
============ ============
(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.
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