Six Flags Announces First Quarter Revenues

[GAcoaster]

News Release From Six Flags:

 

Six Flags Announces First Quarter Revenues

Thursday April 17, 8:30 am ET

 

- Revenues Increase 35% Reflecting Easter Holiday Shift

- Guest Spending Per Capita Increases 13% on Across the Board Spending Growth

- Total Revenue Per Capita Reaches Record $47.11 Driven by Healthy In-park Guest Spending and Increased Sponsorship and International Fees

- No Quarterly Dividend to be Declared on PIERS

 

NEW YORK, April 17 /PRNewswire-FirstCall/ -- Six Flags, Inc. (NYSE: SIX - News) announced today its revenues, attendance and per capita guest spending for the first quarter of 2008. Mark Shapiro, President and Chief Executive Officer of Six Flags, Inc., stated: "Our first quarter performance confirms that a re-energized Six Flags is clearly resonating with families in search of high-quality entertainment that is affordable and close to home."

 

Total revenues of approximately $68 million increased 35% over the prior-year quarter, while total attendance grew by 19% to over 1.4 million. Attendance was positively impacted by the timing of Easter, which shifted from the second quarter in 2007 to the first quarter in 2008. First quarter results historically represent up to approximately 5% of the Company's full year attendance.

 

Revenues for the first quarter also reflected increases in per capita guest spending, which grew $4.51 to $38.95, a 13% increase over the per capita guest spending of $34.44 for the first quarter of 2007. Guest spending increases were across the board, reflecting higher admissions, food and beverage, rentals, retail, games, parking and other revenues.

 

"The increases we're witnessing in revenues per guest are a direct result of the investments we've made and the improvements we're delivering to our guests as part of the overall in-park experience," noted Shapiro.

 

Revenue growth was also driven by sponsorship and international fees, which increased $3.3 million to $11.1 million for the first quarter. This growth, combined with the increased guest spending, resulted in a 13% increase in total revenue per capita to $47.11 in the current quarter from $41.51 in the first quarter of 2007.

 

Regarding the current state of the economy and its potential impact on the upcoming season, Shapiro added: "With the cost of airline tickets going up and the hassle and frustration of air travel increasing, we believe Six Flags is well-positioned to be a preferred entertainment option this summer."

 

PIERS Dividend

 

The Company also announced that its Board of Directors decided not to declare and pay a quarterly dividend on its outstanding Preferred Income Equity Redeemable Securities ("PIERS") for the quarter ending May 15, 2008, each such PIERS representing one one-hundredth of a share of the Company's 7-1/4% Convertible Preferred Stock.

 

Under the terms of the PIERS, dividends are not required to be paid currently and any unpaid dividends accumulate without interest. The Board's decision not to declare and pay the May 15, 2008 dividend does not violate any covenants under any of the Company's debt agreements. The Company's deficit in stockholders' equity,(1) the overall state of the credit markets and the fact that unpaid dividends accumulate on an interest-free basis, were factors that the Board considered in reaching its decision not to declare and pay the quarterly dividend. The Board will continue to evaluate all facts and circumstances, including relevant legal restrictions, prior to any future PIERS payments.

 

As it enters its core operating season, the Company reiterated that it has ample cash and liquidity to fund its current operating needs and is comfortably in compliance with the one financial covenant included in its $275 million revolving credit facility. As of March 31, 2008, the Company had approximately $13 million in unrestricted cash and $131 million available (after reduction for outstanding letters of credit of approximately $29 million) on its $275 million revolving credit facility.

[JetsDevs4Lyf]

Interesting but it needs to hold strong now and continue the upward climb! A good first Quarter means nothing if the rest of theyear is even or down.