Full Year 2008 Adjusted EBITDA(1) Increases 45% to a Record $275.3 Million on 5% Revenue Growth and Reduced Costs and Expenses
- Full Year 2008 Operating Income More than Triples to $144.0 Million
- Positive Free Cash Flow(1) Achieved for Full Year 2008 for the First Time in the Company’s History
- Fourth Quarter Adjusted EBITDA Reaches $5.2 Million and, Excluding Certain Non-Cash Items(2), Loss From Continuing Operations Per Share Improves to $0.83
NEW YORK, March 10 /PRNewswire-FirstCall/ — Six Flags, Inc. (NYSE: SIX) announced today its operating results for the year and quarter ended December 31, 2008.(3)
Commenting on the Company’s performance, Mark Shapiro, President and Chief Executive Officer of Six Flags, Inc., said: “The three-year turnaround for Six Flags required a great deal of patience. I am proud and grateful that the efforts and commitment of our workforce — some 30,000 strong — resulted in our best year ever, putting our operations back on solid footing. The remaining challenge is the inherited balance sheet and we are in comprehensive dialogue with our lenders to remedy that issue.”
For the year ended December 31, 2008, total revenues increased $50.5 million, or 5%, to $1.02 billion from $970.8 million in the prior year. Attendance for the year was 25.3 million, an increase of 0.4 million, or 2%, compared to 24.9 million in the prior year. The attendance increase was driven by increased paid admissions, partially offset by planned reductions of approximately 0.5 million in complimentary and free promotional attendance.
Total revenue per capita for the year increased $1.31, or 3%, to $40.30 from $38.99 in the prior year, reflecting increased per capita guest spending as well as growth in sponsorship, licensing and other fees. Increased per capita guest spending of $0.53, or 1%, to $37.97 from $37.44 in the prior year was driven by increased rentals, food and beverages, parking, admissions and retail revenues. Sponsorship, licensing and other fees increased $20.4 million, or 53%, to $59.0 million.
Operating costs and expenses, including cost of sales, depreciation, amortization, stock-based compensation and loss on disposal of assets, decreased $55.4 million, or 6%, to $877.3 million for 2008, compared to $932.7 million in 2007. Key planned reductions were achieved in marketing, loss on disposal of assets, third party services, repairs and maintenance, travel-related expenses, supplies and seasonal labor.
Income from continuing operations before income taxes was $19.4 million, an improvement of $252.4 million over the prior year pre-tax loss of $233.0 million. The improved results reflect a net gain on debt extinguishment of $107.7 million compared to a $13.2 million loss on debt extinguishment for 2007, increased revenues of $50.5 million, reduced operating costs and expenses of $55.4 million, a $5.5 million reduction in net other expense, and reduced net interest expense of $21.5 million. The lower net other expense reflects the 2008 loss related to an interest rate hedge that no longer qualified for hedge accounting treatment, compared to the prior year’s cost of settling a class-action labor lawsuit in California and costs associated with implementation of an early retirement plan. The reduced net interest expense resulted from lower long-term debt and interest rates in 2008.
Adjusted EBITDA for 2008 was $275.3 million, an $85.7 million improvement over the prior-year’s Adjusted EBITDA of $189.6 million, reflecting increased revenues and reduced cash operating costs and expenses.
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