March 19, 2001
Oklahoma City, OK -- Six Flags, Inc. (NYSE: PKS) announced its results of operations for the fourth quarter and full year ended December 31, 2000.
Consolidated revenues in 2000 were $1.01 billion, an 8.6% increase over 1999 revenues of $927.0 million. Including full-year revenues from the three consolidated parks acquired in 1999, pro forma 1999 revenues would have been $986.8 million.
Operating costs and expenses, excluding depreciation and other non-cash charges, were $637.7 million in 2000, or 63.3% of revenues, as compared to $608.0 million, or 65.6% of revenues for 1999. Pro forma for the three 1999 acquisitions, 1999 operating costs and expenses would have been $668.0 million, or 67.7% of revenues.
Adjusted EBITDA, including the Company's share of the EBITDA from the partnership parks, for 2000 was $402.5 million as compared to $363.2 million in the prior year, representing an increase of $39.3 million, or 10.8 percent, in adjusted EBITDA for 2000 over the prior year results. Pro forma for the 1999 acquisitions, 1999 adjusted EBITDA would have been $362.5 million, so that the 2000 performance represents an 11.0% increase over 1999 pro forma levels.
Kieran E. Burke, Chairman and Chief Executive Officer of Six Flags, said, "We are very pleased to have delivered 11% EBITDA growth in the face of the most challenging operating conditions we have ever experienced, with extremely adverse weather conditions for an extended period in a broad range of U.S. markets, and the impact of the relative decline in the value of the Euro during 2000 on the translation of our European operating results into our U.S. dollar financial statements. This performance under these conditions makes a powerful statement about the strength of our brand and the earnings power of our business. Knowing that we can perform at this level during difficult times gives us a great sense of confidence and optimism for what we can achieve in the future."
"The latter part of the operating season saw a strong rebound in performance when more normal weather patterns returned," continued Mr. Burke. "And the four parks we rebranded for 2000 enjoyed spectacular full seasons, with year over year growth of 43% in attendance, 66% in revenues and over 100% in park level cash flow. We are also pleased that consolidated EBITDA margins grew to 36.7% in 2000 from the 32.3% pro forma margins in 1999. Our strong focus on continued expense control helped to offset the difficult operating conditions and deliver our 11% EBITDA growth.
"Our capital and marketing programs for 2001 are now being implemented. We are rebranding our park in the Brussels market which will become Six Flags Belgium. With the successful debut of our Six Flags Holland park last year, and the strong market reaction to the introduction of the brand in conjunction with the utilization of the animated characters licensed from AOL Time Warner, we are very optimistic about the upcoming season for our latest extension of the Six Flags brand in Europe. We are adding major rides and attractions to a number of other parks, including our Six Flags Over Texas park as part of its 40th anniversary season. We are also devoting a portion of our capital investment program to in-park spending opportunities at several of our major market parks.
"While it is very early in our pre-season group sale and season pass activities, we are pleased with results to date, and are on track to achieve our targets for the year. We continue to target EBITDA growth for 2001 of approximately 10% over 2000, or approximately 15% including the contribution from our three most recent acquisitions.
"We have closed on the purchase of Sea World Ohio and the Seattle park, and are in the process of finalizing the documentation for our pending purchase of La Ronde, in Montreal, Canada. Although there can be no assurance, we expect that purchase to close just prior to the 2001 season. We believe each of these assets is a strong addition to our portfolio of parks," said Mr. Burke.
"Finally, we recently completed a series of initiatives to significantly enhance our financial position during 2001. As a result of these actions, we expanded our equity base through a $287.5 million convertible preferred stock offering, and significantly enhanced our liquidity. We now have no maturities of our public debt until 2006, staggered maturities beginning then and continuing to 2009, no meaningful amortization requirements of our bank credit until December 31, 2004, and substantial available cash and committed facilities."
Six Flags, Inc. is the world's largest regional theme park company, with thirty-nine parks (including La Ronde) in markets throughout North America and Europe.