Six Flags cash flow positive for year on rise in revenue, per cap and attendance
Posted
Six Flags, Inc. announced today its operating results for the year and quarter ended December 31, 2008.
Commenting on the Company's performance, Mark Shapiro, President and Chief Executive Officer of Six Flags, Inc., said: "The three-year turnaround for Six Flags required a great deal of patience. I am proud and grateful that the efforts and commitment of our workforce -- some 30,000 strong -- resulted in our best year ever, putting our operations back on solid footing. The remaining challenge is the inherited balance sheet and we are in comprehensive dialogue with our lenders to remedy that issue."
For the year ended December 31, 2008, total revenues increased $50.5 million, or 5%, to $1.02 billion from $970.8 million in the prior year. Attendance for the year was 25.3 million, an increase of 0.4 million, or 2%, compared to 24.9 million in the prior year. The attendance increase was driven by increased paid admissions, partially offset by planned reductions of approximately 0.5 million in complimentary and free promotional attendance.
Total revenue per capita for the year increased $1.31, or 3%, to $40.30 from $38.99 in the prior year, reflecting increased per capita guest spending as well as growth in sponsorship, licensing and other fees. Increased per capita guest spending of $0.53, or 1%, to $37.97 from $37.44 in the prior year was driven by increased rentals, food and beverages, parking, admissions and retail revenues. Sponsorship, licensing and other fees increased $20.4 million, or 53%, to $59.0 million.
Operating costs and expenses, including cost of sales, depreciation, amortization, stock-based compensation and loss on disposal of assets, decreased $55.4 million, or 6%, to $877.3 million for 2008, compared to $932.7 million in 2007. Key planned reductions were achieved in marketing, loss on disposal of assets, third party services, repairs and maintenance, travel-related expenses, supplies and seasonal labor.
Income from continuing operations before income taxes was $19.4 million, an improvement of $252.4 million over the prior year pre-tax loss of $233.0 million. The improved results reflect a net gain on debt extinguishment of $107.7 million compared to a $13.2 million loss on debt extinguishment for 2007, increased revenues of $50.5 million, reduced operating costs and expenses of $55.4 million, a $5.5 million reduction in net other expense, and reduced net interest expense of $21.5 million. The lower net other expense reflects the 2008 loss related to an interest rate hedge that no longer qualified for hedge accounting treatment, compared to the prior year's cost of settling a class-action labor lawsuit in California and costs associated with implementation of an early retirement plan. The reduced net interest expense resulted from lower long-term debt and interest rates in 2008.
Adjusted EBITDA for 2008 was $275.3 million, an $85.7 million improvement over the prior-year's Adjusted EBITDA of $189.6 million, reflecting increased revenues and reduced cash operating costs and expenses.
The Company's Preferred Income Redeemable Shares ("PIERS") are required to be redeemed for cash on August 15, 2009 for $287.5 million plus accrued and unpaid dividends, which totaled $15.6 million at December 31, 2008. The Company does not expect to have sufficient cash to redeem the PIERS at their redemption date. The PIERS redemption is just one component of the comprehensive restructuring of the balance sheet that the Company is pursuing. Accordingly, the Company's 2008 Annual Report on Form 10-K will include the disclosure of risk factors associated with the Company's liquidity, pending PIERS maturity and the restructuring effort.
Read the entire press release on PR Newswire.
I said:
But, hasn't your stance always been that Six Flags doesn't want people with less money to visit them?
You said:
1. No
But in another thread you said:
(SF pricing reminds you of a Simpsons episode that said) "Our prices discriminate because we can't."
That's the idea. It's not meant to be for everyone. It's meant to be for people who don't have a problem dropping the cash. Threaten to visit another park? Good, they don't want you at theirs...
I also asked:
Hasn't it always been your stance that you have a choice to buy Q-bot or not, and that's what makes if more fair than free line jumps as seen at the Disney parks.
In which you replied:
Yes (kinda)
Thanks for fessing up to that one.
How can someone "choose" to purchase a flashpass if they can't "afford" it?
In which we can all go back to your post stating:
Show me where I said that and I'll personally write a letter to SF complaining about Q-bots
Which was in reply to:
Gonch told me that if I could afford to visit the park, then I could afford to spend $50 or $100 on a Flashpass
What does all that gibberish mean? My "misunderstanding" of your stance came from the difference between choosing to buy a flashpass and being able to afford to buy a flashpass. That's where this conversation started. SFMMAddict stated that he could not afford to buy flashpass every visit. You say that it's a choice.
I can understand how the translation got lost between us. That was exciting.
Edit - Quotes
-Travis
www.youtube.com/TSVisits
Jeff said:
We've missed you, Jeremy. Where the hell have you been?
Mostly here.
I havent been to a park since October 07 so I havent had much to say. I do listen to the podcast though.
I know the majority of this exchange is between you and Gonch and that's fine; I would just as soon not jump into that discussion. But there is something you keep coming back to that I have something to say about.
You have mentioned that this site looks down on any views that are against Six Flags, that folks use unfair persuasive tactics, and now that people will gravitate towards Gonch's point of view b/c of the podcast over the "crazy guy's" views.
When you say things like this you lump everyone here into two categories: those who essentially bully others to think a certain way or those who are sheep that will follow the majority without thinking for themselves. I do not identify with either of those categories and I don't think many others do either.
There are many people here who offer varied perspectives and challenge the discussions in meaningful ways. Brian Noble, Rollergator, RGB, Rob Ascough, matt. and yes, Gonch, just to name a few of them. I appreciate these folks because they post ideas in a non-emotional way and take the discussions in different directions.
Whether the foundation of your perspective is rational or not, you tend to post things in a very rant-like fashion. That's just not going to convince anyone to consider your perspective.
I actually agree with you in the sense that I personally, at least for now, would not pay to attend a Six Flags park at the prices they are charging. I don't think it's worth it. But I can't make the argument that they have no right to be charging what they do or that they are scamming people. Neither of those things is true.
"If passion drives you, let reason hold the reins." --- Benjamin Franklin
2Hostyl said:Mostly here.I havent been to a park since October 07 so I havent had much to say. I do listen to the podcast though.
Two comments: First, awwwww, very sweet. Kinda figured the marriage/family thing was where you'd disappeared. Definitely worth taking some "time off", LOL. Second, please don't let "not visiting parks" keep you from posting. You're one of the people who help make it fun... :)
SFMMAddict stated that he could not afford to buy flashpass every visit. You say that it's a choice.
In a way, I would actually agree that it is a choice. In the future, I will be "choosing not to afford" Q-bot on every visit. If I chose to, I could visit the park less often and get a Q-bot on most visits. But I would rather visit more often without buying one than sacrifice some of my visits in order to have a Q-bot, but only get to go to the park 1/3 as often.
My mother (1946-2009) once asked me why I go to Magic Mountain so much. I said I feel the most alive when I'm on a roller coaster.
2010 total visits: SFMM-9, KBF-2
2010 total ride laps: 437
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