The Interpreter Posted November 9, 2007 Share Posted November 9, 2007 To Tune In, at 0830 this morning: http://investors.sixflags.com/phoenix.zhtm...p;p=irol-irhome Quote Link to comment Share on other sites More sharing options...
Gordon Bombay Posted November 9, 2007 Share Posted November 9, 2007 Waiting for it to start....the music is almost as bad as Cedar Fairs. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 9, 2007 Author Share Posted November 9, 2007 It's the same music...it's a company that serves almost all the Fortune 500. That way, no implication can be made from bouncy or sad music about what the call will entail. You may think I am joking. I am not. Quote Link to comment Share on other sites More sharing options...
neo8820 Posted November 9, 2007 Share Posted November 9, 2007 They just released the #s on their investor site. Looks like they were down significantly in attendance and income. They are blaming it on weather and the SFKK incident. Quote Link to comment Share on other sites More sharing options...
Gordon Bombay Posted November 9, 2007 Share Posted November 9, 2007 Favorite quotes so far... "Escape was paramount" and "The Tony Hawk coaster has show us you don't have to spend 20 million dollars on a coaster for it to be a hint." Shapiro sounds so smart and confident in his business and brought up the SFKK accident directly. Definently a nice change of pace from similar calls. Oh and... "Keep in mind when we first came in in 2005 the cap ex plan was in place. The 22 million dollar coasters they were building we couldn't undo, but with what we still had we improved the parks..." Quote Link to comment Share on other sites More sharing options...
neo8820 Posted November 9, 2007 Share Posted November 9, 2007 Six flags to extend operating hours into Nov for some parks and will offer a Christmas event at one of their parks in the North. Quote Link to comment Share on other sites More sharing options...
neo8820 Posted November 9, 2007 Share Posted November 9, 2007 Did he just say removal of flat rides with low throughput? Quote Link to comment Share on other sites More sharing options...
neo8820 Posted November 9, 2007 Share Posted November 9, 2007 Oy Vey Tilt-a-Whirl is now old scrape. What about the folks that come to parks and enjoy the old Nostalgia? I.E. Grandparents brining there grandchildren to the park... Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 9, 2007 Author Share Posted November 9, 2007 Under old management, the Tilt-A-Whirl sat there unstaffed anyway, or was broken. They seem to be saying they are going to have all rides operating or they won't be there...and popularity and maintenance costs are factors in what stays and what does not. A lot of the new attractions will be wonderful for virtually all ages. Will this work? We shall see. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 9, 2007 Author Share Posted November 9, 2007 No current intent to sell any parks. The Kentucky Kingdom rumor is officially dead. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 9, 2007 Author Share Posted November 9, 2007 -Six Flags Reports Third Quarter Results - Quarterly Revenue Down 2% Due to Soft July Attendance, Partially Offset by Total Revenue Per Capita Growth- Nine Month Revenue Up 2% on Stable Attendance and Total Revenue Per Capita Growth, Despite Fewer Park Operating Days November 09, 2007: 08:00 AM EST NEW YORK, Nov. 9 /PRNewswire-FirstCall/ -- Six Flags, Inc. today announced operating results for its third quarter and nine months ended September 30, 2007.(1) Total revenue for the quarter decreased 2% to $465.2 million from $474.2 million in the prior-year quarter. Attendance decreased 0.3 million, or 3%, to 12.0 million from 12.3 million in the prior year. The attendance decrease stems from a difficult July during which attendance dropped 9% compared to the prior year reflecting unfavorable weather primarily at our Texas and Georgia parks, one less Saturday in the operating calendar, and extensive national media coverage of a ride-related accident in late June at the Company's park in Louisville, Kentucky. Prior to these events, attendance for June had increased 10% over the prior year. Following these events, August stabilized at 1% and September increased 8% over the prior year attendance. Total revenue per capita for the quarter increased by $0.39 (1%) to $38.90, reflecting increased sponsorship revenue. Per capita guest spending increased $0.04 during the quarter to $37.13 as guests spent 3% more in-park, primarily on food and beverages, parking, and games, while per capita spending on admissions was down slightly, reflecting an increased mix of season pass and promotional offer attendance. The Company's income from continuing operations for the quarter was $89.7 million, compared to income of $127.9 million in the third quarter of 2006, reflecting reduced revenue, $15.3 million of increased costs and expenses primarily from increased advertising ($10.0 million) and park-wide labor ($5.3 million), the cost of settling a class-action labor lawsuit in California (included with other expense in the statement of operations), and an increased loss on the disposal of fixed assets. "I'm proud of the advances we continue to make at Six Flags despite a temporary setback within the third quarter due to inclement July weather and extensive negative publicity stemming from the accident at our Kentucky park," said Mark Shapiro, Six Flags President and CEO. "With revenue per guest and consumer satisfaction scores at all-time highs and a powerful park-wide capital expansion plan on deck, we are well positioned to deliver on the promise of this company's turnaround in 2008." Net income applicable to common stock in the third quarter 2007 was $84.2 million, or $0.61 per share - diluted, compared to net income applicable to common stock of $159.3 million, or $1.08 per common share - diluted in the prior-year period, which included $36.8 million (or $0.23 per common share - diluted) of gain from discontinued operations. Adjusted EBITDA(2) for the quarter was $198.6 million, compared to $216.7 million in the third quarter of 2006, reflecting decreased revenue and increased costs and expenses and a $5.2 million reduction in third-party share of Adjusted EBITDA due to the Company's acquisition in July of the minority interest in Six Flags Discovery Kingdom. (1) Reported results from continuing operations for all periods presented exclude park operations in Buffalo, New York; Columbus, Ohio; Concord, California; Denver, Colorado; Houston, Texas; Oklahoma City, Oklahoma; Sacramento, California; and Seattle, Washington. These parks have been classified as discontinued operations. As of April 6, 2007, the sales of all of the above-named parks were completed. (2) See the following tables and Note 2 to those tables for a discussion of EBITDA (Modified), Adjusted EBITDA, and the reconciliation to these amounts from net income (loss). Nine Month Results For the nine months ended September 30, 2007, total revenue increased $19.3 million, or 2%, to $860.6 million from $841.3 million in the prior-year period. Total revenue per capita for the nine months compared to the prior-year period increased $0.94 (2%) to $39.02 reflecting increased sponsorship revenue and per capita guest spending. Increased per capita guest spending for the nine months of $0.44 over the prior-year period, or 1%, to $36.91 was driven by increased food and beverages, parking, rentals and games revenue. Attendance for the nine months ended September 30, 2007 was 22.1 million, flat with the prior-year period, despite 53 (2%) fewer park operating days. Total costs and expenses, including cost of sales, depreciation, amortization, stock-based compensation and loss on fixed assets, increased $14.7 million to $752.5 million for the first nine months of 2007 compared to the prior-year period. The key drivers of the change were increased advertising expense ($28.0 million) and park-wide labor ($10.6 million), partially offset by prior-year costs related to the change in management ($13.7 million), a reduced loss on fixed assets ($8.8 million) and lower stock-based compensation ($6.8 million). Net loss applicable to common stock for the first nine months of 2007 was $142.7 million, or $1.51 per share, compared to a net loss applicable to common stock of $132.4 million, or $1.41 per common share in the prior-year period. The increased net loss of $10.3 million reflects a higher loss from continuing operations ($6.8 million) driven by higher costs and expenses and an increased loss from discontinued operations ($4.6 million), partially offset by the impact of a prior-year change in accounting principles ($1.0 million). Adjusted EBITDA for the first nine months of 2007 improved by $0.6 million over the prior-year period to $187.7 million. Cash and Liquidity As of September 30, 2007, the Company had no balance outstanding on its $275 million revolving credit facility (excluding letters of credit in the amount of $33.3 million) and had $105.4 million in unrestricted cash. Conference Call The Company will host a teleconference for analysts and investors today at 8:30 AM Eastern. Participants in the call will include President and Chief Executive Officer, Mark Shapiro, and Executive Vice President and Chief Financial Officer, Jeffrey R. Speed. The teleconference will be broadcast live to all interested persons as a listen-only Web cast on http://investors.sixflags.com/. The Web cast will be archived for one year. About Six Flags Six Flags, Inc. is the world's largest regional theme park company. Founded in 1961, Six Flags is a publicly-traded corporation headquartered in New York City. Forward Looking Statements: The information contained in this news release, other than historical information, consists of forward-looking statements 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. These risks and uncertainties include, among others, Six Flags' success in implementing its new business strategy. Although Six Flags 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, risk of accidents occurring at Six Flags' parks, adverse weather conditions, general economic conditions (including consumer spending patterns), competition, pending, threatened or future legal proceedings and other factors could cause actual results to differ materially from Six Flags' 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 "Risk Factors" in Six Flags' Annual Report on Form 10-K for the year ended December 31, 2006, which is available free of charge on Six Flags' website http://www.sixflags.com. Six Flags, Inc. Three and Nine Months Ended September 30, 2007 and 2006 (In Thousands, Except Per Share Amounts) Statement of Operations (1) Three Months Ended Nine Months Ended September 30, September 30, ------------------- -------------------- 2007 2006 2007 2006 --------- --------- --------- --------- Revenue $465,185 $474,239 $860,646 $841,322 Costs and expenses (excluding depreciation, amortization, stock-based compensation and loss on fixed assets) 241,125 225,841 631,554 605,799 Depreciation 34,995 33,754 102,369 98,121 Amortization 399 220 975 659 Stock-based compensation 1,822 2,277 6,229 13,052 Loss on fixed assets 6,179 820 11,344 20,104 --------- --------- --------- --------- Income from operations 180,665 211,327 108,175 103,587 --------- --------- --------- --------- Interest expense (net) 47,817 50,305 150,493 148,682 Minority interest in earnings 26,574 30,917 41,105 45,402 Equity in operations of partnerships 50 144 568 462 Net loss on debt extinguishment 1,509 - 11,865 - Other expense 13,116 232 13,306 11,536 --------- --------- --------- --------- Income (loss) from continuing operations before income taxes 91,599 129,729 (109,162) (102,495) Income tax expense (1,921) (1,783) (4,116) (3,985) --------- --------- --------- --------- Income (loss) from continuing operations before discontinued operations and cumulative effect of a change in accounting principle 89,678 127,946 (113,278) (106,480) Discontinued operations - 36,798 (12,993) (8,372) --------- --------- --------- --------- Income (loss) before cumulative effect of a change in accounting principle 89,678 164,744 (126,271) (114,852) Cumulative effect of a change in accounting principle - - - (1,038) --------- --------- --------- --------- Net income (loss) $89,678 $164,744 $(126,271) $(115,890) ========= ========= ========= ========= Net income (loss) applicable to common stock $84,186 $159,252 $(142,748) $(132,367) ========= ========= ========= ========= Per share - basic: Income (loss) from continuing operations $0.89 $1.30 $(1.37) $(1.31) Discontinued operations $- $0.39 $(0.14) $(0.09) Cumulative effect of a change in accounting principle $- $- $- $(0.01) --------- --------- --------- --------- Net income (loss) $0.89 $1.69 $(1.51) $(1.41) ========= ========= ========= ========= Per share - diluted: Income (loss) from continuing operations $0.61 $0.85 $(1.37) $(1.31) Discontinued operations $- $0.23 $(0.14) $(0.09) Cumulative effect of a change in accounting principle $- $- $- $(0.01) --------- --------- --------- --------- Net income (loss) $0.61 $1.08 $(1.51) $(1.41) ========= ========= ========= ========= Balance Sheet Data (In Thousands) Balance Sheet Data September 30, 2007 December 31, 2006 ------------------ ----------------- Cash and cash equivalents (excluding restricted cash) $105,411 $24,295 Total assets 3,109,016 3,187,616 Current portion of long-term debt 9,858 114,059 Long-term debt (excluding current portion) 2,241,315 2,126,888 Mandatory redeemable preferred stock 285,342 284,497 Total stockholders' equity 250,646 376,140 Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------ 2007 2006 2007 2006 -------- -------- -------- -------- Other Data: EBITDA (Modified) (2) $224,060 $248,398 $229,092 $235,523 Adjusted EBITDA (2) $198,617 $216,699 $187,682 $187,119 Weighted average shares outstanding - basic 94,690 94,352 94,670 94,194 Weighted average shares outstanding - diluted 152,573 155,229 94,670 94,194 Net cash provided by operating activities $92,170 $146,350 $18,221 $84,978 The following table sets forth a reconciliation of net income (loss) to EBITDA (Modified) and Adjusted EBITDA for the periods shown (in thousands): Three Months Ended Nine Months Ended September 30, September 30, --------------------- ------------------- 2007 2006 2007 2006 --------- --------- --------- ---------- Net income (loss) $89,678 $164,744 $(126,271) $(115,890) Cumulative effect of a change in accounting principle - - - 1,038 Discontinued operations - (36,798) 12,993 8,372 Income tax expense 1,921 1,783 4,116 3,985 Other expense 13,116 232 13,306 11,536 Net loss on debt extinguishment 1,509 - 11,865 - Equity in operations of partnerships 50 144 568 462 Minority interest in earnings 26,574 30,917 41,105 45,402 Interest expense (net) 47,817 50,305 150,493 148,682 Loss on fixed assets 6,179 820 11,344 20,104 Amortization 399 220 975 659 Depreciation 34,995 33,754 102,369 98,121 Stock-based compensation 1,822 2,277 6,229 13,052 --------- --------- --------- ---------- EBITDA (Modified) 224,060 248,398 229,092 235,523 Third party interest in EBITDA of certain operations (3) (25,443) (31,699) (41,410) (48,404) --------- --------- --------- ---------- Adjusted EBITDA $198,617 $216,699 $187,682 $187,119 ========= ========= ========= ========== NOTES (1) Revenues and expenses of international operations are converted into U.S. dollars on a current basis as provided by U.S. generally accepted accounting principles ("GAAP"). (2) EBITDA (Modified), a non-GAAP measure, is defined as net income (loss) before discontinued operations, income tax expense (benefit), other expense, early repurchase of debt (formerly an extraordinary loss), equity in operations of partnerships, minority interest in earnings (losses), interest expense (net), amortization, depreciation, stock- based compensation and gain (loss) on disposal of assets. Adjusted EBITDA, also a non- GAAP measure, is defined as EBITDA (Modified) minus interests of third parties in EBITDA of the four parks that are less than wholly-owned, plus our interest in the EBITDA (Modified) of one hotel and dick clark productions inc., which are less than wholly owned. The Company believes that EBITDA (Modified) and Adjusted EBITDA (collectively, "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. EBITDA (Modified) and Adjusted EBITDA as defined in this release may differ from similarly titled measures presented by other companies. (3) Represents interest of third parties in EBITDA of Six Flags Over Georgia, Six Flags Over Texas, Six Flags White Water Atlanta, and Six Flags Discovery Kingdom (formerly Six Flags Marine World), plus our interest in the EBITDA (Modified) of one hotel and dick clark productions inc., which are less than wholly owned. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 9, 2007 Author Share Posted November 9, 2007 The market is NOT pleased. SIX opened down 35 cents at $2.34 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 9, 2007 Author Share Posted November 9, 2007 And finally, the "Cliff's Notes" version: http://biz.yahoo.com/rb/071109/sixflags_results.html?.v=1 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 9, 2007 Author Share Posted November 9, 2007 The company's own press release summarizing the conference call (by the way the stock is tanking drastically after the call, as of this writing--it's at 2.26, down 43 cents, as of twenty minutes ago--delayed quote): http://money.cnn.com/news/newsfeeds/articl...109112007-1.htm Quote Link to comment Share on other sites More sharing options...
Browntggrr Posted November 9, 2007 Share Posted November 9, 2007 So I suppose that it is now easy to say that it is just not one company that is having issues, it is the industry as a whole. And even though fingers were pointed at weather and an unfortunate incident, I am a firm believer that the extremely high gas prices have much to do with it. Quote Link to comment Share on other sites More sharing options...
Dvo Posted November 9, 2007 Share Posted November 9, 2007 This is in no way what I expected a Six Flags conference call to be like. Here's a synopsis of how I thought this call would go: "Hey, what's up?" "Not much just doodling new roller coaster ideas." "Are you making sure to add tons of trim brakes on what would have been airtime hills?" "Yep." "Sweet." "Yeah so any ideas for this year?" "Eh you know. Let's do nothing and then tell everyone we made a ton of changes." "ok that sounds good. and let's double all our prices." "sweet. talk to ya next year." "k. cya." Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 9, 2007 Author Share Posted November 9, 2007 And the stock plummets, an update: http://www.reuters.com/article/coMktNews/i...20071109?rpc=11 Quote Link to comment Share on other sites More sharing options...
Gordon Bombay Posted November 9, 2007 Share Posted November 9, 2007 This is in no way what I expected a Six Flags conference call to be like. Here's a synopsis of how I thought this call would go: "Hey, what's up?" "Not much just doodling new roller coaster ideas." "Are you making sure to add tons of trim brakes on what would have been airtime hills?" "Yep." "Sweet." "Yeah so any ideas for this year?" "Eh you know. Let's do nothing and then tell everyone we made a ton of changes." "ok that sounds good. and let's double all our prices." "sweet. talk to ya next year." "k. cya." Been to many SF parks this year? Most of them were very well improved. If you listen to the conference call september and october seemed to have gone over really well. Those quotes you described sound more like a certain recent Cedar Fair conference call. Trim brakes on airtime hills? See behemoth. While you check that out, check out the degree of the drop too. Quote Link to comment Share on other sites More sharing options...
Browntggrr Posted November 9, 2007 Share Posted November 9, 2007 If you read between the lines, both CF & SF conference calls seem rather similar. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 9, 2007 Author Share Posted November 9, 2007 Except in style. Mr. Kinzel is not Mark Shapiro, and vice versa. One call is more about economics and investor metrics, the other seems more aimed at the touchy-feely park experience AND investor metrics. Though both announced similar news, only one of the company's shares/units declined markedly after the calls, and did so after each call! I think it is the game of expectations, expectations apparently not met. Quote Link to comment Share on other sites More sharing options...
neo8820 Posted November 9, 2007 Share Posted November 9, 2007 Except in style. Mr. Kinzel is not Mark Shapiro, and vice versa. One call is more about economics and investor metrics, the other seems more aimed at the touchy-feely park experience AND investor metrics. Though both announced similar news, only one of the company's shares/units declined markedly after the calls, and did so after each call! I think it is the game of expectations, expectations apparently not met. I certainly had high expectations. I was actually thinking of picking up some SIX stock hoping the price would surge after the 3Q results. Glad I didnt'. Quote Link to comment Share on other sites More sharing options...
KDCOASTERFAN Posted November 9, 2007 Share Posted November 9, 2007 So I suppose that it is now easy to say that it is just not one company that is having issues, it is the industry as a whole. And even though fingers were pointed at weather and an unfortunate incident, I am a firm believer that the extremely high gas prices have much to do with it. Speaking of incidents I'm suprised that they didn't mention that Two face malfunctioned twice within less than a month just before the end of the season. With this drive to remove under-performing attractions I'd say that skull mountain,octopus,tower of doom & perhaps Batwing may soon be removed from SFA's lineup...heck with the two face malfunction I wouldn't be suprised to see that on the chopping block as well which means even less things to ride at a park that's been neglected by SFI for years on end. Fortunately there's KD with their addition of Dominator for the 2008 season though,looks like I'll definitely be going there instead & with a little luck maybe more than once next year. Quote Link to comment Share on other sites More sharing options...
ragerunner Posted November 9, 2007 Share Posted November 9, 2007 So I suppose that it is now easy to say that it is just not one company that is having issues, it is the industry as a whole. And even though fingers were pointed at weather and an unfortunate incident, I am a firm believer that the extremely high gas prices have much to do with it. I would agree that it appears many of the parks are starting to so some weakness. I think its more than just gas, its the economy, inflation, and consumer sentiment that is at a 15 year low. It's going to be an interesting season next year for the amusement park industry in the US. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 9, 2007 Author Share Posted November 9, 2007 This is not going to make for a happy IAAPA. I'd hate to be a ride manufacturer's rep hoping to make sales to North American parks... Quote Link to comment Share on other sites More sharing options...
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