The Interpreter Posted October 15, 2010 Share Posted October 15, 2010 SIX Q3 Conf Call 11/3, 8 a.m. CENTRAL DAYLIGHT TIME (9 a.m. Eastern): ...The teleconference can be accessed live in the U.S. by dialing 1-800-206-9725 or outside the U.S. by dialing +1-763-416-8838. The call will also be webcast live from the investor relations section of the Six Flags Web site at www.sixflags.com/investors. The company will announce its earnings earlier that day.... http://www.prnewswir...-104975914.html Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 3, 2010 Author Share Posted November 3, 2010 Just a reminder...I intend to listen to the call and summarize it here...then will be gone for most of the day... Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 3, 2010 Author Share Posted November 3, 2010 The Financial Release, just released: Financial Release SIX FLAGS ANNOUNCES STRONG EARNINGS AND CASH FLOW FOR THE THIRD QUARTER 2010 Revenue rises 6 percent in the third quarter and Adjusted EBITDA hits $273 million for first nine months of the year DALLAS, Nov. 3, 2010 /PRNewswire via COMTEX/ -- Six Flags Entertainment Corporation (NYSE: SIX) announced today that its third quarter 2010 revenue of $475.6 million grew $25.7 million or 6 percent over the prior year third quarter, and that revenue for the nine months ended September 30, 2010 of $854.1 million increased $56.3 million or 7 percent. Adjusting prior year reporting for the Six Flags Great Escape Lodge and Indoor Waterpark (the "Lodge"), the results of which were consolidated beginning January 1, 2010 due to the adoption of new accounting rules(1), revenue grew $21.0 million or 5 percent in the third quarter and $44.7 million or 6 percent for the first nine months of 2010 driven primarily by increases in admission ticket pricing and sponsorship revenue. Earnings per diluted share for the third quarter 2010 were $4.85 and cash earnings per share(2) were $7.83. Since the company emerged from Chapter 11 on April 30, 2010 with a new capital structure, the prior year third quarter earnings per diluted share and cash earnings per share are not comparable. "Our strong revenue growth, improved profitability and solid cash flow are directly attributable to a stable industry, disciplined execution of our strategy and an experienced management team," said Jim Reid-Anderson, Chairman, President and CEO, Six Flags. "We are well positioned to continue delivering fun-filled, exciting experiences for our guests and long-term value for our shareholders." Adjusted EBITDA(3) grew 15 percent or $30.8 million in the third quarter to $238.5 million, and grew 34 percent for the first nine months of the year to $273.2 million as a result of stronger revenue performance and lower cash operating costs. Cash operating expenses declined $7 million in the third quarter and $13 million for the first nine months, as compared to the prior year. After adjusting for consistent reporting for the Lodge in 2009 and 2010, cash operating expenses decreased $10 million or 4 percent in the third quarter and $22 million or 4 percent on a year-to-date basis, primarily from lower marketing costs and headcount reductions. As a result of the higher revenue growth and effective cost management, Free Cash Flow(4) was $215.9 million for the third quarter and $150.6 million for the first nine months of the year representing a 15 percent and 190 percent increase, respectively. On September 24, 2010, the company announced it had received a $41 million cash distribution with respect to its equity investment in dick clark productions. The $41 million is not included in Free Cash Flow. The company continues to retain its existing equity ownership position in dick clark productions. Attendance for the third quarter of 11.7 million was flat with the prior year, and for the first nine months of 2010 grew 3 percent to 21.2 million. Per capita guest spending in the third quarter of $38.90 increased $1.71 or nearly 5 percent, and increased more than 2 percent for the first nine months of the year. The increase for the third quarter resulted from improved yield on both season pass and single-day ticket pricing, along with an increase in in-park sales. The company incurred $15 million of restructuring costs in the third quarter related to severance and other costs associated with changes in senior management and personnel reductions. Net Debt(5) at September 30, 2010 was $763 million compared to $2,242 million at December 31, 2009. Conference Call The company will host a conference call today at 8:00 a.m. Central Daylight Time (CDT) to discuss its third quarter 2010 financial results. The teleconference can be accessed live by dialing 1-800-206-9725 in the United States and 1-763-416-8838 from outside the United States and requesting conference ID # 18366517 or the Six Flags Earnings Call. To hear a replay of the call, dial 1-800-642-1687 or 1-706-645-9291 through November 24, 2010. The call is also available via webcast on the investor relations section of the company's Web site at www.sixflags.com/investors. Investor Meeting The company will host an Investor Meeting on November 4, 2010 from 9:00 a.m. to 11:00 a.m. Eastern Daylight Time (EDT) at the Waldorf=Astoria, Empire Room in New York, NY. Interested parties are welcome to attend the meeting in person or listen via webcast from the investor relations section of the company's Web site at www.sixflags.com/investors. A copy of the company's Investor Meeting presentation will also be posted on the company's Web site. About Six Flags Entertainment Corporation Six Flags Entertainment Corporation is a leading operator of regional theme parks with 19 parks across the United States, Mexico and Canada. Six Flags Over Texas, the company's flagship location, was founded in 1961 and will mark its 50th anniversary season in 2011. Fresh Start Accounting In connection with the company's emergence from Chapter 11 on April 30, 2010, and the application of fresh start reporting upon emergence in accordance with ASC Topic 852, "Reorganizations," the results for the five-month period ended September 30, 2010 (the company is referred to during such period as the "Successor") and the results for the four-month period ended April 30, 2010 (the company is referred to during such period as the "Predecessor") are presented separately. This presentation is required by United States generally accepted accounting principles ("GAAP"), as the Successor is considered to be a new entity for financial reporting purposes, and the results of the Successor reflect the application of fresh start reporting. Accordingly, the company's financial statements after April 30, 2010, are not comparable to its financial statements for any period prior to its emergence from Chapter 11. For illustrative purposes in this earnings release, the company has combined the Successor and Predecessor results to derive combined results for the nine-month period ended September 30, 2010. However, because of various adjustments to the consolidated financial statements in connection with the application of fresh start reporting, including asset valuation adjustments and liability adjustments, the results of operations for the Successor are not comparable to those of the Predecessor. The financial information accompanying this earnings release provides the Successor and the Predecessor GAAP results for the applicable periods, along with the combined results described above. The company believes that subject to consideration of the impact of fresh start reporting, the combined results provide meaningful information about revenues and costs, which would not be available if the current year periods were not combined to accommodate analysis. Forward Looking Statements The information contained in this 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, the potential adverse impact of the Chapter 11 filing on the company's operations, management and employees; customer response to the Chapter 11 filing; and the risk factors or uncertainties listed from time to time in the company's filings with the Securities and Exchange Commission ("SEC"). In addition, important factors, including factors impacting attendance, local conditions, events, disturbances and terrorist activities, risk of accidents occurring at the company's parks, adverse weather conditions, general financial and credit market conditions, economic conditions (including consumer spending patterns), competition, pending, threatened or future legal proceedings and other factors could cause actual results to differ materially from the company's expectations. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will be realized and actual results could vary materially. 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 the company's Annual Report on Form 10-K for the year ended December 31, 2009, its Quarterly Report for the quarter ended June 30, 2010, and its other filings and submissions with the SEC, each of which are available free of charge on the company's Web site www.sixflags.com/investors. Consolidation was required beginning January 1, 2010 pursuant to the Financial Accounting Standards Board Accounting Standards Codification Topic 810, Consolidation. Reported results for 2009 have not been adjusted to reflect the consolidation of the Lodge. "Cash earnings per share", which is defined as Free Cash Flow divided by the weighted average shares outstanding, is not a U.S. GAAP defined measure. The company believes this measure provides meaningful profitability metrics, given current accumulated tax loss carryforwards and the net depreciations/amortization impacts relating to the revaluation of assets in connection with the company's emergence from Chapter 11. See the following financial statements and Note 3 to those financial statements for a discussion of Adjusted EBITDA and its reconciliation to net income (loss). See Note 5 to the following financial statements for a discussion and definition of Free Cash Flow. Net Debt represents total long-term debt, including current portion, less cash and cash equivalents. Six Flags Entertainment Corporation ... http://investors.sixflags.com/phoenix.zhtml?c=61629&p=irol-newsArticle&ID=1490952&highlight= Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 3, 2010 Author Share Posted November 3, 2010 So, $763 million in debt, FLAT attendance in the third quarter (which ends in SEPTEMBER), but per capita spending up nearly five percent with an increase in in park sales. Most importantly, revenue was up six percent, based largely on increased ticket and season pass pricing and sponsorship revenue. More after the conference call... Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 3, 2010 Author Share Posted November 3, 2010 Just a reminder, perhaps the more interesting news will be at tomorrow's investors' meeting in New York City. I intend to cover that as well here, barring unforeseen circumstances.... Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 3, 2010 Author Share Posted November 3, 2010 (As is typical of these calls, IE works and Firefox...doesn't...at least for me...purty music now playing, if you are into Classical Muzak). Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 3, 2010 Author Share Posted November 3, 2010 Today's conference call notes: * Focus of company is on its three primary constituencies, shareholders, guests and employees. * A very large portion of revenue is dedicated to safety and maintenance. * Attendance in Q3 was flat. There are three primary reasons for that: reduced discounts and comp tickets, limited new product in 2010 due to reduced capex and the solid year before Q3 performance. * Profitable revenue growth is primary focus (not purely attendance). * We are now a regional theme park company, not a global entertainment company. The theme park business is a stable business, and we are part of that. * Because of outside interests we don't own at SFOG, SFOT and others, modified EBITDA is best to use when comparing us to others in the industry (read FUN, who was referred to in a veiled fashion several times during the call) * We now have focused pricing discipline (apparently SIX speak for Mr. Kinzel's vaunted "pricing integrity) and increasing in park sales. * Our focus is on containing/reducing costs while sustaining the guest experience. * In 2011 Easter will fall in Q2 instead of Q1, which happens every few years. Remember this when comparing year over year performance. * In a veiled reference/comparison to FUN, it was noted that 175 million people live within 100 miles of a Six Flags park, while only 115 million live within 100 miles of a park owned by "our largest competitor," thus giving SIX substantial opportunity for growth compared to that company. It was also noted that there is a SIX park in 9 out of 10 of the largest metropolitan areas, which cannot be said for that competitor. * In 2011, SIX will add more rides and attractions in a single season than in any year in the past decade. Capex was limited in 2010 due to several factors, including the financial restructuring. * They will refine the pricing strategy to generate appropriate returns--reducing high discounts. * Ads will be ride and park focused. Mr. Six will play a less prominent role. * There are opportunities for cost reduction that will be addressed in the future, including excess land and high debt costs. * Huge increases in attendance are not expected nor necessary for the business plan. * There have been substantial reductions in debt so far and they are expected to continue. When pushed about the large amount of cash on hand, it was pointed out that this may be needed during the off season and will be addressed. * It was pointed out the largest competitor had a huge increase in October attendance reported during the conference call yesterday, but the answer was "We are not commenting on October or Q4." Interesting. * In a bit of a stunner, they divided up the per cap when requested. Of the $38.90, $22.13 is ticket, $16.77 is in park spending. * The SFOT and SFOG partners can be bought out in 2027 and 2028 (not necessarily respectively). They would not comment on any plans to do so before that time or then. * The primary focus is to the "best managed regional theme park company in the world." * Capex will be detailed tomorrow in the investor's meeting. The slides will be available shortly beforehand. In short, this call was far more financially driven and far less fun than the Shapiro/Snyder ones. Investor meeting tomorrow at 9....see you then! \ Quote Link to comment Share on other sites More sharing options...
PhantomTheater Posted November 3, 2010 Share Posted November 3, 2010 * A very large portion of revenue is dedicated to safety and maintenance. Dedicated to Safety? Can they explain the safety behind disbanding the SFGAd FD. Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted November 3, 2010 Share Posted November 3, 2010 The number I found most interesting was that their per capita spending was UP 5% while Cedar Fair`s was down 1%. How are the typical prices inside of a Six Flags park compared with a Cedar Fair park? Or is Six trying to go the opposite way of what FUN has done (even though FUn at one point in time said the integrity of the gate was important) and charge more for guests to gain entry into the parks and have cheaper food prices? Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 3, 2010 Author Share Posted November 3, 2010 Typical Six Flags parks in park prices are lower than Cedar Fair's...except...parking is typically $15 (I noted at BGW Sunday that parking is now $13), the Papa John's pizza is dramatically overpriced, and the quality of most (but not all) of the food is far superior to that typically found at Cedar Fair (except chains like Panda Express and Johnny Rockets, which is about the same both places..., but the pricing is at Panda Express, at least, is typically lower at Six Flags). There are also many more unique choices, from Pink Things at Six Flags Over Texas to the local specialties that can be found at Great Adventure (where you CAN spend $35 on a meal at Carnegie Deli...but you can do that at Carnegie Deli in NYC, too). Quote Link to comment Share on other sites More sharing options...
Beast Man Posted November 4, 2010 Share Posted November 4, 2010 * In a veiled reference/comparison to FUN, it was noted that 175 million people live within 100 miles of a Six Flag park, while only 115 million live within 100 miles of a park owned by "our largest competitor," thus giving SIX substantial opportunity for growth compared to that company. It was also noted that there is a SIX park in 9 out of 10 of the largest metropolitan areas, which cannot be said for that competitor. \ I used to live within 100 miles of a Six Flags park.But I live 22 miles from the largest competitor. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted November 4, 2010 Author Share Posted November 4, 2010 ...James Reid-Anderson, Six Flags CEO, told Wall Street analysts that the theme park company is refining its ticket pricing for 2011, and that includes reducing big discounts to drive attendance."It is like a drug," he said of discounting. Instead, Six Flags will offer something new. "We will be introducing more rides and attractions in a single season than we have in the last decade," Reid-Anderson said. "Our focus will be to have new rides in every single park to help draw new guests and to entice existing guests to return more frequently." Details are expected to be released today at an investor meeting in New York.... http://www.star-tele...ttractions.html Quote Link to comment Share on other sites More sharing options...
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