Fifth Consecutive Record Year at Six Flags

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Six Flags Sets Date to Announce Fourth Quarter and Full Year 2014 Earnings

GRAND PRAIRIE, Texas, Jan. 16, 2015 /PRNewswire/ -- Six Flags Entertainment Corporation (NYSE: SIX) today announced it will release fourth quarter and full year 2014 financial results before the stock market opens on Thursday, February 19, 2015 followed by an investor conference call beginning at 8:00 a.m. Central Time. The call can be accessed through the Six Flags Investor Relations website, 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.

 

 

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Source: Sx Flags

 

Fifth Consecutive Record Year at Six Flags

Revenue Grows 19 Percent and Adjusted EBITDA Grows 30 Percent in Fourth Quarter 2014

 

GRAND PRAIRIE, Texas, Feb. 18, 2015 /PRNewswire/ -- Six Flags Entertainment Corporation (NYSE: SIX), the world's largest regional theme park operator, today announced its fifth consecutive year of record financial performance as it posted a company-high $1.2 billion in revenue, an increase of $66 million or 6 percent over 2013. The company generated full-year 2014 Adjusted EBITDA¹ of $439 million, also a new record that represented an increase of $35 million or 9 percent over 2013.

 

"I have never been more confident in our strategy and the long-term prospects for our company than I am today," said Jim Reid-Anderson, Chairman, President and CEO. "Guest satisfaction scores have reached another all-time high and employee morale is better than ever. We are extremely well-positioned as we enter the 2015 season with a 25 percent gain in our Active Pass Base, and we remain laser-focused on delivering our next long-term financial target of $600 million of Modified EBITDA by 2017."

 

Fourth quarter 2014 Adjusted EBITDA improved $11 million or 30 percent to a record $46 million, generated from a $29 million or 19 percent increase in revenue. The strong revenue growth was primarily driven by a 3 percent increase in guest spending and a 15 percent increase in attendance as the company expanded both its highly-popular Fright Fest^®Halloween event and its family-favorite Holiday in the Park^® event, including the introduction of Holiday in the Park events at two additional parks during the quarter.

 

Despite a higher mix of season pass visitation during the fourth quarter, total guest spending per capita increased $0.96 or 3 percent to $38.95, which included a 6 percent or $1.20 increase in admissions per capita and a 1 percent or $0.24 decline in in-park revenue per capita.

 

For the fourth quarter 2014, Cash Earnings Per Share was $0.25, up $0.10 or 67 percent over the same period in 2013.

 

Full year 2014 revenue grew 6 percent to $1.2 billion primarily due to a 7 percent increase in admissions revenue, a 3 percent increase in sales inside the parks, and fees related to the company's initiatives to expand its brand in growing international markets. Early in 2014, the company announced two partnerships to develop Six Flags-branded theme parks outside North America—one in the Middle East and another in China.

 

As a result of pricing initiatives and the introduction of new and enhanced offerings in the parks, total guest spending per capita in 2014 grew $2.79 or 7 percent over the prior year to $42.97. Admissions per capita for the year increased $1.99 or 9 percent to $25.02 while in-park spending per capita grew $0.80 or 5 percent to $17.95.

 

Full year Cash Earnings Per Share² of $2.63 represented an increase of $0.18.

 

Modified EBITDA³ for the year was $477 million, an increase of $33 million or 7 percent, and Modified EBITDA margin improved to a new industry high of 40.6 percent. Return on Invested Capital increased to 15 percent in 2014, from 14 percent in 2013.

 

Diluted earnings per share for the quarter ended December 31, 2014 was a loss of $0.37 and diluted earnings per share for the year ended December 31, 2014 was $0.77. Income Before Income Taxes included $46 million and $119 million in stock-based compensation charges for the fourth quarter and full year 2014, respectively, relating to both the actual achievement in 2014 and probable achievement in 2015 of certain targets of Project 500—a long-term incentive compensation program established by the company's board in August 2011. Excluding the Project 500 stock-based compensation charge, diluted earnings per share for the quarter ended December 31, 2014 was a loss of $0.07 and diluted earnings per share for the year ended December 31, 2014 was $1.53, up 30 percent.

 

Total attendance for the year was 25.6 million guests, which represented a 2 percent decline that was primarily due to extended school calendars in the first half of 2014 relating to the harsh 2013/2014 winter. The company generated 4 percent attendance growth in the second half of 2014 and a 15 percent increase in attendance in the fourth quarter. The combined season pass and membership attendance mix increased from 48 percent in 2013 to 50 percent in 2014.

 

As a result of continued strength in sales, the company's Active Pass Base, which includes guests who either own a Season Pass or are in the company's Membership program, increased 25 percent from December 31, 2013 to December 31, 2014.

 

In 2014 the company invested $108 million, or 9 percent of revenue, in new capital projects. During the year it paid its shareholders $184 million in dividends, or $1.93 per share—a 6 percent increase over 2013. The company also repurchased $195 million of its stock in 2014 at an average price of $37.86. Since the company initiated its share repurchase plan in 2011, it has repurchased over $1 billion of its stock at an average price of $31.20 and reduced its outstanding share count by 17 percent. As of December 31, 2014, $299 million remained unutilized under the company's share repurchase program.

 

Net Debt⁴ as of December 31, 2014 was $1,322 million, which translates to a 3.0 times net leverage ratio.

 

Conference Call
At 8:00 a.m. Central Time tomorrow, February 19, 2015, the company will host a conference call to discuss its fourth quarter and full year 2014 financial performance. The call is accessible either through 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 February 26, 2015.