The Interpreter Posted February 23, 2011 Share Posted February 23, 2011 Per caps up, expenses down, attendance "superb", debt way down: http://seekingalpha.com/article/254170-six-flags-ceo-discusses-q4-2010-earnings-call-transcript Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted February 23, 2011 Share Posted February 23, 2011 And yet, Cedar Fair attendance was UP, and per caps were down. So clearly there is a trend in there somewhere. Six Flags is doing something right. Although, I have to wonder if their expense cutting is becoming a little too obvious to park guests (loss of most licensed properties) and reduced hours at most of the parks. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted February 23, 2011 Author Share Posted February 23, 2011 I found the nearly total absence of questions from analysts to be most surprising... Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted February 23, 2011 Author Share Posted February 23, 2011 The earnings press release: SIX FLAGS ANNOUNCES 20 PERCENT REVENUE GROWTH AND RECORD $22 MILLION ADJUSTED EBITDA FOR THE FOURTH QUARTER 2010 Full Year 2010 revenue rises to $976 million representing seven percent comparable growth Full Year Adjusted EBITDA increases 50 percent to $295 million Dallas, TX — February 22, 2011 — Six Flags Entertainment Corporation (NYSE: SIX) announced today fourth quarter 2010 revenue of $122 million, representing growth of $21 million or 20 percent over the same period in 2009 while full year 2010 revenue grew $77 million or nine percent to $976 million. 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), and the current year for fresh start reporting adjustments, revenue grew $19 million or 18 percent in the fourth quarter and $66 million or 7 percent for the full year 2010. Both the quarter and full year revenue growth were primarily attributable to improvements in in-park sales, admission ticket sales and sponsorships fees. Profitability for the company was strong with Adjusted EBITDA(2) reaching $22 million in the fourth quarter and $295 million for the full year 2010, representing increases of $29 million and $98 million respectively over the same periods in 2009. The growth in Adjusted EBITDA was a result of stronger revenue and lower cash operating costs. Cash earnings per share(3) for 2010 was $4.64. Since the company emerged from Chapter 11 on April 30, 2010 with a new capital structure, the full year earnings per diluted share and prior year cash earnings per share are not meaningful. “We are extremely pleased with the excellent revenue and profit we generated for our shareholders in 2010, especially given the company’s financial restructuring earlier in the year,” said Jim Reid-Anderson, Chairman, President and CEO, Six Flags. “Our success in 2010 is directly attributable to our focused strategy and excellent execution by our employees. We are extremely well-positioned as we enter the 2011 season.” After adjusting for consistent reporting for the Lodge in 2009 and 2010, cash operating expenses declined $13 million or 12 percent in the fourth quarter driven by an ongoing focus on cost elimination. On a comparable basis, for the full year 2010, operating expenses declined $36 million or 6 percent from the prior year. Due to the seasonality of the business, Free Cash Flow(4) was a negative $22 million in the fourth quarter with Capital Spending and Interest payments offsetting positive Adjusted EBITDA of $22 million. For the full year 2010, the company generated $128 million in Free Cash Flow—an increase of $117 million over 2009 due to higher Adjusted EBITDA of $98 million, lower interest expense and lower capital spending. The company registered 3.1 million guests in the fourth quarter 2010, a 19 percent increase in attendance due to the success of both its October “Fright Fest” and December “Holiday in the Park” offerings, while full-year attendance of 24.3 million guests grew 4 percent compared to 2009. Per capita guest spending in the fourth quarter 2010 of $39.75 increased $0.57 or nearly 2 percent, and increased to $40.18, a 4 percent or $1.55 increase for the full year. Net Debt(5) at December 31, 2010 was $784 million compared to $2,242 million at December 31, 2009. Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted February 23, 2011 Share Posted February 23, 2011 So Six Flags saw part of its attendance boost due to its "Holiday in the Park" offering. I still maintain that if priced correctly, a winter event at Kings Island could extend the park`s season and make money for Cedar Fair at a time when most of their properties are shuttered and not making money. I don`t think they are interested in trying that right now though, unfortunately. Not to mention, the last few weekends of Haunt would be awkward as they start bringing out the decorations for the December events. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted February 23, 2011 Author Share Posted February 23, 2011 And yet, the parks that have Holiday In the Park at Flags also have Boo events. Terp, just sayin' Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted February 23, 2011 Share Posted February 23, 2011 And they seem to be successfully holding both events and making money off of both events. But aren`t most of the parks that have the Holiday in The Park in the south and not subject to cold Ohio winters? But remember, from everything I`ve heard the original Winterfest made lots of money. Granted there is more competition for the winter event market now, then there was in the late 80`s and early 90s. But still, I think it could work at KI and be successful in making Cedar Fair money. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted February 23, 2011 Author Share Posted February 23, 2011 Last year, I believe Holiday In The Park was limited to Six Flags Over Texas, Fiesta Texas, and Discovery Kingdom. Several years ago, Great Adventure also had Winter Lights, but that was short lived. Quote Link to comment Share on other sites More sharing options...
KIfan1980 Posted February 23, 2011 Share Posted February 23, 2011 From what I read, those attendance numbers were total and not adjusted for the closing of SFKK. Either way, sounds like good numbers - how many new rides drove that growth? Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted February 23, 2011 Author Share Posted February 23, 2011 Not many. With impending bankruptcy last year (which did in fact occur), capex was very limited. Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted February 23, 2011 Share Posted February 23, 2011 Which makes the large gains in attendance even more remarkable. Quote Link to comment Share on other sites More sharing options...
KIfan1980 Posted February 23, 2011 Share Posted February 23, 2011 I guess my rhetorical question was too subtle You would think these kind of results would cause some questions to be asked in Sandusky. Although Six Flags is showing this year, that they also believe investment is also required for sustained growth - even continuing to promote SFMM coaster count dominance in the call. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted February 23, 2011 Author Share Posted February 23, 2011 Or was that a strategic decision to force Sandusky to drop least two more coasters into the crown jewel, whether it makes sense or not? Or a mere tweaking of someone's nose...someone that the COO of SIX used to work for after he was Chairman and CEO of the company that owned Kings Island before FUN came around calling CBS? Oh, the many Q's.... Put another way, other than the Texas Giant (a decision doubtless made by previous management), what truly major new coaster installation is going in for 2011 at Flags? Quote Link to comment Share on other sites More sharing options...
Vortex Posted February 23, 2011 Share Posted February 23, 2011 Green Lantern at SFMM. Quote Link to comment Share on other sites More sharing options...
thekidd33 Posted February 23, 2011 Share Posted February 23, 2011 While it may be a a large part of Magic Mountain's marketing campaign this year, it really isn't that big of an addition as coasters go. The cost for similar models according to rcdb.com is less than $10 million dollars. Same goes for SFOG's new 'Dare Devil Dive Coaster'. The only other coasters going into Six Flags U.S. parks are rides being relocated from Kentucky Kingdom. Not exactly intimidating... Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted February 26, 2011 Author Share Posted February 26, 2011 Mr. Weber is BUYING shares at his company: http://www.gurufocus.com/news.php?id=123747 With his own money, too. Very different than at some competing companies.... Quote Link to comment Share on other sites More sharing options...
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