GRAND PRAIRIE, Texas, Oct. 21, 2014 /PRNewswire/ -- Six Flags Entertainment Corporation (NYSE: SIX), the world's largest regional theme park company, today announced its third quarter 2014 revenue grew to a record high of $542 million, representing a $37 million or 7 percent increase over the same period in 2013. Third quarter Adjusted EBITDA(2) of $291 million was an improvement of $23 million or 8 percent over prior year.

"We remain laser focused on delivering significant shareholder value through attendance gains, ticket yield management, and international expansion, all while further enhancing the quality of our guest experience," said Jim Reid-Anderson, Chairman, President, and CEO.

Total guest spending per capita grew $2.52 or 6 percent in the third quarter to $43.79, with admissions revenue per capita increasing $1.91 or 8 percent to $25.87 and in-park revenue per capita increasing $0.61 or 4 percent to $17.92. Attendance for the third quarter of 11.8 million guests was up slightly over prior year.

For the first nine months of 2014, the company reported revenue of $992 million, a $36 million or 4 percent increase over prior year, while Adjusted EBITDA for the same nine-month period totaled $393 million, a $25 million or 7 percent improvement over the prior year.

In the first nine months of 2014, total guest spending per capita grew $3.23 or 8 percent to $43.77, with admissions revenue per capita increasing $2.22 or 10 percent to $25.54 and in-park revenue per capita increasing $1.01 or 6 percent to $18.23.

Diluted earnings per share for the quarter and nine months ended September 30, 2014 were $1.08 and $1.13, respectively. Income Before Income Taxes for both the third quarter and nine months included a $73 million stock-based compensation charge relating to the probable achievement by 2015 of Project 500, a long-term incentive compensation program established by the company in August 2011. Excluding the Project 500 stock-based compensation charge, diluted earnings per share for the quarter and nine months ended September 30, 2014 were $1.56, up 28 percent, and $1.60, up 54 percent, respectively.

For the twelve-months ended September 30, 2014, Adjusted EBITDA was $429 million and Modified EBITDA(3) was $467 million. Modified EBITDA margin for the same twelve-month period grew to 40.7 percent--a new industry high.

The company's Active Pass Base, which includes season pass holders and guests in the company's membership program, increased 10 percent from September 30, 2013 to September 30, 2014.

Cash earnings per share(1) for the twelve-month period ending September 30, 2014 was $2.51, an increase of $0.30 per share or 14 percent compared to the prior twelve-month period ending September 30, 2013.

During the first nine months of 2014 the company invested $95 million in new capital, paid dividends of $136 million, or $0.47 per common share per quarter, and repurchased $119 million or 3.1 million shares of its common stock. As of September 30, 2014, the company had $376 million available under the board's current share repurchase authorization.

Net Debt(4) as of September 30, 2014 was $1,232 million, a 2.9 times net leverage ratio.

Long-Term Outlook
Six Flags today also announced a new long-term profit target, which is an aspirational goal of achieving $600 million of Modified EBITDA by calendar year 2017, equating to nearly $3.75 of cash earnings per share. During the twelve months ended September 30, 2014, the company generated $467 million of Modified EBITDA and $2.51 of cash earnings per share.

"Our new 2017 target of $600 million of Modified EBITDA allows us to invest appropriately in the business, continue paying a sustainable, growing dividend, and execute on our share repurchase program," said John Duffey, executive vice president and CFO.

Conference Call
The company will host a conference call at 4:00 p.m. Central Time today, Tuesday October 21, 2014 to discuss its third quarter 2014 financial performance. The call is accessible on the Six Flags Investor Relations website at www.sixflags.com/investors or by dialing 1-855-889-1976 in the United States or +1-937-641-0558 outside the United States and requesting the Six Flags earnings call. A replay of the call will be available through October 29, 2014 by dialing (855) 859-2056 or +1(404) 537-3406, Conference ID 13139083.

About Six Flags Entertainment Corporation
Six Flags Entertainment Corporation is the world's largest regional theme park company with $1.1 billion in revenue and 18 parks across the United States, Mexico and Canada. For 53 years, Six Flags has entertained millions of families with world-class coasters, themed rides, thrilling water parks and unique attractions including up-close animal encounters, Fright Fest(®) and Holiday in the Park(®). For more information, visit www.sixflags.com.

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, (i) the adequacy of cash flows from operations, available cash and available amounts under our credit facilities to meet our future liquidity needs, (ii) our ability to roll out our capital enhancements in a timely and cost effective manner, (iii) our ability to improve operating results by implementing strategic cost reductions, and organizational and personnel changes without adversely affecting our business, (iv) our operations and results of operations, and (v) 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, contagious diseases, events, disturbances and terrorist activities, recall of food, toys and other retail products which we sell, risk of accidents occurring at the company's parks or other parks in the industry and adverse publicity concerning our parks or other parks in the industry, inability to achieve desired improvements and financial performance targets set forth in our aspirational goals, adverse weather conditions such as excess heat or cold, rain and storms, general financial and credit market conditions, economic conditions (including customer spending patterns), changes in public and consumer tastes, construction delays in capital improvements or ride downtime, competition with other theme parks and other entertainment alternatives, dependence on a seasonal workforce, unionization activities and labor disputes, laws and regulations affecting labor and employee benefit costs, including potential increases in state and federally mandated minimum wages, and healthcare reform, pending, threatened or future legal proceedings and the significant expenses associated with litigation, cyber security risks 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 and Quarterly Reports on Forms 10-K and 10-Q, and its other filings and submissions with the SEC, each of which are available free of charge on the company's investor relations website at www.sixflags.com/investors and on the SEC's website at www.sec.gov.



    Footnotes
    ---------

    (1)       Cash Earnings Per Share (or Cash EPS), which is defined as
              Free Cash Flow divided by the weighted average basic
              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 depreciation/amortization
              impacts relating to the revaluation of assets in
              connection with the company's emergence from Chapter 11 in
              April 2010.

    (2)       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).

    (3)       See Note 3 to the following financial statements for a
              discussion of Modified EBITDA and its reconciliation to
              net income (loss).

    (4)       Net Debt represents total long-term debt, including
              current portion, less cash and cash equivalents.




                                                                                       
    SIX FLAGS ENTERTAINMENT CORPORATION









                                                                                         Statement of Operations Data (1)


                                                           Three Months Ended                                                        Nine Months Ended
                                                           ------------------                                                        -----------------

    (Amounts in thousands,
     except per share data)             September 30, 2014               September 30, 2013               September 30, 2014           September 30, 2013
                                        ------------------               ------------------               ------------------           ------------------

    Theme park admissions                                     $305,820                                                       $282,095                         $545,958  $523,293

    Theme park food, merchandise
     and other                                     211,870                                       203,846                                            389,609     386,347

    Sponsorship, licensing and
     other fees                                     18,717                                        13,589                                             42,438      32,064

    Accommodations revenue                           5,436                                         4,990                                             14,107      14,038

    Total revenue                                  541,843                                       504,520                                            992,112     955,742

    Operating expenses
     (excluding depreciation and
     amortization shown
     separately below)                             143,881                                       134,395                                            352,040     340,926

    Selling, general and
     administrative expense
     (excluding depreciation,
     amortization and stock-
     based compensation shown
     separately below)                              48,494                                        45,571                                            131,889     131,091

    Costs of products sold                          39,730                                        36,616                                             77,321      75,541

    Depreciation                                    26,467                                        27,300                                             79,007      86,411

    Amortization                                       665                                         3,598                                              1,995      10,796

    Stock-based compensation                        78,168                                         7,077                                             89,267      21,496

    Loss on disposal of assets                       1,608                                         4,325                                              4,181       6,959

    Gain on sale of investee                             -                                            -                                          (10,031)          -

    Interest expense, net                           18,464                                        18,603                                             54,280      55,580

    Other (income) expense, net                        (6)                                        1,013                                              (260)      1,017


    Income before income taxes                     184,372                                       226,022                                            212,423     225,925

    Income tax expense                              60,332                                        86,405                                             64,272      82,361

    Net income                                     124,040                                       139,617                                            148,151     143,564

    Less: Net income
     attributable to
     noncontrolling interests                     (19,006)                                     (19,214)                                          (38,012)   (38,327)

    Net income attributable to
     Six Flags Entertainment
     Corporation                                              $105,034                                                       $120,403                         $110,139  $105,237
                                                              ========                                                       ========                         ========  ========


    Weighted-average common shares
     outstanding:

    Weighted-average number of
     common shares outstanding -
      basic                                         94,522                                        95,105                                             94,900      97,569

    Weighted-average number of
     common shares outstanding -
      diluted                                       97,274                                        98,472                                             97,885     100,819


    Net income per average common share
     outstanding:

    Net income per average
     common share outstanding -
     basic                                                       $1.11                                                          $1.27                            $1.16     $1.08
                                                                 =====                                                          =====                            =====     =====

    Net income per average
     common share outstanding -
     diluted                                                     $1.08                                                          $1.22                            $1.13     $1.04
                                                                 =====                                                          =====                            =====     =====






                                                                                                SIX FLAGS ENTERTAINMENT CORPORATION





                         The following table sets forth a reconciliation of net income to Adjusted EBITDA and Free Cash Flow for the three and nine months ended September 30, 2014 and September 30, 2013:



                                                                 Three Months Ended                                                             Nine Months Ended
                                                                 ------------------                                                             -----------------

    (Amounts in thousands,
     except per share
     data)                                   September 30, 2014                September 30, 2013               September 30, 2014                September 30, 2013
                                             ------------------                ------------------               ------------------                ------------------

    Net income                                                      $124,040                                                            $139,617                                                    $148,151  $143,564

    Income tax expense                                   60,332                                         86,405                                                  64,272                                 82,361

    Other (income)
     expense, net                                           (6)                                         1,013                                                   (260)                                 1,017

    Interest expense, net                                18,464                                         18,603                                                  54,280                                 55,580

    Loss on disposal of
     assets                                               1,608                                          4,325                                                   4,181                                  6,959

    Gain on sale of
     investee                                                 -                                             -                                               (10,031)                                     -

    Amortization                                            665                                          3,598                                                   1,995                                 10,796

    Depreciation                                         26,467                                         27,300                                                  79,007                                 86,411

    Stock-based
     compensation                                        78,168                                          7,077                                                  89,267                                 21,496

    Impact of Fresh Start
     valuation adjustments
     (2)                                                    92                                            150                                                     275                                    442
                                                            ---                                            ---

    Modified EBITDA (3)                                 309,830                                        288,088                                                 431,137                                408,626

    Third party interest
     in EBITDA of certain
     operations (4)                                    (19,006)                                      (19,785)                                               (38,012)                              (40,080)

    Adjusted EBITDA (3)                                 290,824                                        268,303                                                 393,125                                368,546

    Cash paid for
     interest, net                                     (27,307)                                      (31,483)                                               (60,311)                              (44,730)

    Capital expenditures,
     net of property
     insurance recoveries
     in 2014                                           (14,075)                                      (16,843)                                               (95,420)                              (89,182)

    Cash taxes (5)                                      (6,290)                                       (3,428)                                               (12,628)                              (11,447)

    Free Cash Flow (6)                                              $243,152                                                            $216,549                                                    $224,766  $223,187
                                                                    ========                                                            ========                                                    ========  ========


    Weighted-average
     number of common
     shares outstanding -
     basic                                               94,522                                         95,105                                                  94,900                                 97,569


    Cash Earnings Per
     Share                                                             $2.57                                                               $2.28                                                       $2.37     $2.29
                                                                       =====                                                               =====                                                       =====     =====



    SIX FLAGS ENTERTAINMENT CORPORATION



    The following table sets forth a reconciliation of net income to Adjusted EBITDA and Free Cash Flow for
     the twelve months ended September 30, 2014 and September 30, 2013:



                                                      Last Twelve Months Ended
                                                      ------------------------

    (Amounts in thousands,
     except per share data)

                                              September 30,                September 30,

                                                       2014                          2013
                                                       ----                          ----

    Net income                                          
    $
                                                               161,460                                   $298,863

    Income from
     discontinued
     operations                                       (549)                        (116)

    Income tax expense
     (benefit)                                       29,512                     (110,245)

    Other (income) expense,
     net                                              (223)                        1,794

    Loss on debt
     extinguishment                                     789                           587

    Interest expense, net                            72,845                        67,970

    Loss on disposal of
     assets                                           5,801                         7,417

    Gain on sale of
     investee                                      (10,031)                        (278)

    Amortization                                      5,592                        14,399

    Depreciation                                    106,278                       118,131

    Stock-based
     compensation                                    94,805                        39,487

    Impact of Fresh Start
     valuation adjustments
     (2)                                               427                           697
                                                        ---                           ---

    Modified EBITDA (3)                             466,706                       438,706

    Third party interest in
     EBITDA of certain
     operations (4)                                (38,015)                     (40,202)
                                                    -------                       -------

    Adjusted EBITDA (3)                             428,691                       398,504

    Cash paid for interest,
     net                                           (66,930)                     (56,179)

    Capital expenditures,
     net of property
     insurance recoveries
     in 2014                                      (108,091)                    (108,556)

    Cash taxes (5)                                 (14,949)                     (12,690)
                                                    -------                       -------

    Free Cash Flow (6)                                          $238,721                                   $221,079
                                                                ========                                   ========


    Weighted-average
     number of common
     shares outstanding -
     basic                                           94,942                        99,946


    Cash Earnings Per Share                                        $2.51                                      $2.21
                                                                   =====                                      =====




                                 SIX FLAGS ENTERTAINMENT CORPORATION



                                        Balance Sheet Data (1)


                                                                     As of
                                                                     -----

    (Amounts in thousands)                          September 30,               December 31,

                                                             2014                        2013
                                                             ----                        ----
                                                               
    $                                   
    $
                       Cash and cash equivalents
                     (excluding restricted cash)                        164,777                         169,310

    Total assets                                        2,748,769                             2,607,814


    Deferred income                                        91,031                                60,443

    Current portion of long-
     term debt                                              6,287                                 6,269

    Long-term debt (excluding
     current portion)                                   1,390,497                             1,394,334


    Redeemable noncontrolling
     interests                                            456,551                               437,569


    Total equity                                          348,763                               373,337


    Shares outstanding                                     94,539                                94,857



              (1)    Revenues and expenses of international
                      operations are converted into U.S.
                      dollars on an average basis as
                      provided by GAAP.

              (2)    Amounts recorded as valuation
                      adjustments and included in
                      reorganization items for the month of
                      April 2010 that would have been
                      included in Modified EBITDA and
                      Adjusted EBITDA, had fresh start
                      accounting not been applied. Balance
                      consists primarily of discounted
                      insurance reserves that will be
                      accreted through the statement of
                      operations each quarter through 2018.

              (3)    "Modified EBITDA", a non-GAAP
                      measure, is defined as the Company's
                      consolidated income (loss) from
                      continuing operations: excluding the
                      cumulative effect of changes in
                      accounting principles, discontinued
                      operations gains or losses, income
                      tax expense or benefit, restructure
                      costs or recoveries, reorganization
                      items (net), other income or expense,
                      gain or loss on early extinguishment
                      of debt, equity in income or loss of
                      investees, interest expense (net),
                      gain or loss on disposal of assets,
                      gain or loss on the sale of
                      investees, amortization,
                      depreciation, stock-based
                      compensation, and fresh start
                      accounting valuation adjustments. The
                      Company believes that Modified EBITDA
                      is useful to investors, equity
                      analysts and rating agencies as a
                      measure of the Company's performance.
                      The Company believes that Modified
                      EBITDA is a measure that can be
                      readily compared to other companies,
                      and the Company uses Modified EBITDA
                      in its internal evaluation of
                      operating effectiveness and decisions
                      regarding the allocation of
                      resources. Modified EBITDA is not
                      defined by GAAP and should not 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.
                      Modified EBITDA as defined herein may
                      differ from similarly titled measures
                      presented by other companies.



                     "Adjusted EBITDA", a non-GAAP
                      measure, is defined as Modified
                      EBITDA minus the interests of third
                      parties in the Adjusted EBITDA of
                      properties that are less than wholly
                      owned (consisting of Six Flags Over
                      Georgia, Six Flags White Water
                      Atlanta, Six Flags Over Texas, and
                      Six Flags Great Escape Lodge & Indoor
                      Waterpark (the "Lodge") of which the
                      Company purchased the noncontrolling
                      interests from its partners in the
                      Lodge in 2013) plus the Company's
                      interest in the Adjusted EBITDA of
                      dick clark productions, inc., which
                      was sold in September 2012. The
                      Company believes that Adjusted EBITDA
                      provides useful information to
                      investors regarding the Company's
                      operating performance and its
                      capacity to incur and service debt
                      and fund capital expenditures.
                      Adjusted EBITDA is approximately
                      equal to "Parent Consolidated
                      Adjusted EBITDA" as defined in the
                      Company's secured credit agreement,
                      except that Parent Consolidated
                      Adjusted EBITDA excludes Adjusted
                      EBITDA from equity investees that is
                      not distributed to the Company in
                      cash on a net basis and has
                      limitations on the amounts of certain
                      expenses that are excluded from the
                      calculation. Adjusted EBITDA is not
                      defined by GAAP and should not 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.
                      Adjusted EBITDA as defined herein may
                      differ from similarly titled measures
                      presented by other companies.

              (4)    Represents interests of third parties
                      in the Adjusted EBITDA of Six Flags
                      Over Georgia, Six Flags Over Texas,
                      Six Flags White Water Atlanta and the
                      Lodge, plus the Company's interest in
                      the Adjusted EBITDA of dick clark
                      productions, inc., which are less
                      than wholly owned. The Company
                      purchased the noncontrolling
                      interests from its partners in the
                      Lodge in 2013 and sold its interest
                      in dick clark productions, inc. in
                      September 2012.

              (5)    Based on our current federal net
                      operating loss carryforwards, we
                      believe we will continue to pay
                      minimal amounts for cash taxes for
                      the next three to four years. Cash
                      taxes paid represents statutory taxes
                      paid, primarily in Mexico.

              (6)    Free Cash Flow, a non-GAAP measure,
                      is defined as Adjusted EBITDA less
                      (i) cash paid for interest expense
                      net of interest income receipts, (ii)
                      capital expenditures net of property
                      insurance recoveries, and (iii) cash
                      taxes. The Company has excluded from
                      the definition of Free Cash Flow
                      deferred financing costs related to
                      the Company's debt due to the nature
                      of these items. The Company believes
                      that Free Cash Flow is useful to
                      investors, equity analysts and rating
                      agencies as a performance measure.
                      The Company uses Free Cash Flow in
                      its internal evaluation of operating
                      effectiveness and decisions regarding
                      the allocation of resources. Free
                      Cash Flow is not defined by GAAP and
                      should not 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. Free
                      Cash Flow as defined herein may
                      differ from similarly titled measures
                      presented by other companies.

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SOURCE Six Flags Entertainment Corporation