August 12, 1999
New York, NY -- Premier Parks Inc. announced Wednesday its results of operations for the three and six months ended June 30, 1999 with a continued robust outlook for the year.
Revenues for the second quarter were $333.5 million in 1999, compared to $292.2 million in revenues for the comparable quarter of 1998, representing a 14.1 percent increase. Operating costs and expenses (including depreciation and other non-cash charges) were $232.9 million for the 1999 quarter, as compared to $225.8 million for the 1998 quarter. Excluding depreciation and non-cash charges, total operating costs and expenses were $190.5 million in the second quarter of 1999, as compared to $193.4 million for the same period in 1998. Since the Company acquired Walibi and Six Flags at the end of the first quarter of 1998, their results are fully reflected in the second quarter of both years.
Adjusted EBITDA, including the Company's share of the EBITDA from the partnership parks, for the 1999 quarter was $152.1 million as compared to $112.5 million for the second quarter of 1998, representing a 35.2 percent increase.
For the first six months of 1999, revenues were $387.2 million, compared to reported revenues of $299.0 million for the comparable period of 1998. Pro forma for the acquisition of Walibi and Six Flags, which closed at the end of the first quarter of 1998, revenues for the 1998 period would have been $323.4 million. Revenues for the six month period increased by $63.8 million (19.7%) over the pro forma 1998 revenues. Operating costs and expenses (including depreciation and other non-cash charges) were $364.7 million in the first six months of 1999, as compared to $250.9 million (actual) and $353.6 million (pro forma) for 1998. Excluding depreciation and non-cash charges, total operating costs and expenses were $281.5 million (actual) in 1999 and $287.4 million (pro forma) in 1998.
Adjusted EBITDA for the 1999 six month period was $110.9 million as compared to $100.7 million (actual) (which does not include the first quarter of Six Flags and Walibi) and $38.0 million (pro forma) in the prior year period, yielding a $72.9 million increase in adjusted EBITDA for the period over the pro forma prior year.
"We are extremely pleased with these results," noted Kieran E. Burke, Chairman and Chief Executive Officer of the Company. "They reflect the strong reaction throughout our markets to the capital and marketing programs which we put in place this year. For the first six months of 1999, our thirty-one parks (excluding the three parks acquired this year) experienced an aggregate increase in attendance of approximately 2.66 million people (20 percent) over the prior year period on a same park basis.
"For the six months, the reported revenue increase of $63.8 million over the pro forma 1998 results was primarily driven by an increase in season pass revenues (approximately $21.6 million), other ticket revenues (approximately $9.6 million), and in park spending (approximately $19.4 million), as well as the inclusion of the results of the newly acquired parks (approximately $7.3 million).
"We are also quite pleased with the fact that EBITDA from consolidated operations (excluding the 1999 acquisitions), increased from $35.9 million pro forma in 1998 to $102.7 million in 1999. This same park increase of $66.8 million on a pro forma same park revenue increase of $56.4 million reflects well on our expense control efforts.
"Moreover, this powerful performance trend has continued since the close of the quarter, with both park level attendance and revenues tracking well ahead of prior year as well as expectations for this year. For example, at the consolidated parks owned before the 1999 acquisitions, we have achieved an aggregate attendance increase, year-to-date, through Sunday, August 8, of 17.0 percent over the prior year, and park-level revenues (which recognize season pass revenues on a usage basis only) are up on a same park basis by 12.5 percent over 1998.
"The four newly branded Six Flags parks are performing particularly well, with same park growth year to date (to August 8) of 24.9 percent in attendance and 33.5 percent in park level revenues, reflecting the power of the Six Flags brand, our licensed characters and our marketing and capital decisions at these parks. This performance reflects substantial market excitement and, together with our strong expense control efforts, provides a solid base for our continued confidence in our 1999 season. With this performance in hand, and the strong group bookings and season pass sales, which provide a solid base for the remaining operating season, we now expect to exceed full year adjusted EBITDA estimates," concluded Mr. Burke.
Premier Parks is the world's largest theme park company, with thirty-four parks in markets throughout North America and Europe.