- Revenues through April 27, 2009, which Includes Easter, Decreased $12 million to $110 million, Driven by a Weaker Mexican Peso and Reduced International Fees
- First Quarter Revenues Down $16 million to $52 million, Reflecting the Timing of Easter as well as the Weaker Mexican Peso and Reduced International Fees
- Cash Operating Expenses(1) for the First Quarter Decreased $7 million to $115 million, Reflecting a Weaker Mexican Peso and Reduced Costs due to the Timing of Easter
Six Flags, Inc. announced today its operating results for the first quarter ended March 31, 2009, and its revenues through April 27, 2009. The first quarter historically represents approximately 5% of the Company's annual revenues.
Commenting on park operations in the midst of its restructuring process and pending Exchange Offers,(2) Mark Shapiro, President and Chief Executive Officer of Six Flags, Inc., said: "For the benefit of the business and our stakeholders, including our 30,000 employees, we are committed to resolving the restructuring process this calendar year. In the meantime, the strength of our product and positive word of mouth circulating among our customers, serves as a constant reminder that the guest experience is still priority one."
Total revenues for the first quarter decreased $16.3 million, or 24%, from the prior-year quarter to $51.9 million, reflecting the timing of Easter, which shifted from the first quarter in 2008 to the second quarter in 2009, as well as a weaker Mexican peso and reduced international fees.
Revenues through April 27, 2009, which includes Easter, were down $12.3 million from the prior-year period reflecting a weaker Mexican peso ($5.1 million) and reduced sponsorship, licensing and other fees ($3.2 million) driven by lower international fees. Attendance for this period was down 2% to 2.65 million; however, paid attendance, which excludes complimentary and free promotional tickets, was slightly higher in the current period. Per capita guest spending was down 2%, after adjusting for the impact of the year-over-year change in foreign currency translation.
Mr. Shapiro continued, "Six Flags is a strong brand with a resilient business. We have been responsive to the economic environment and our parks are well positioned to deliver a high quality, close to home entertainment experience at a price families can afford. While many of our competitors are scaling back this summer, Six Flags is launching major new attractions in every park and hiring the best trained workforce in our history."
The Company's first quarter net loss applicable to Six Flags, Inc. common stockholders improved 7%, or $10.7 million, to $146.3 million from $157.0 million in the prior-year quarter. The reduced loss reflects a $9.2 million reduction in net interest expense due to lower effective interest rates, $6.9 million in reduced cash operating expenses, $4.7 million in lower income tax expense, $3.3 million in lower non-cash operating expenses(3) and $2.1 million in increased share of earnings from our equity investments, which primarily resulted from improved results for dick clark productions, which suffered in the first quarter of 2008 from the cancellation of the Golden Globes Awards due to the strike by the Writers Guild of America. Partially offsetting the reduced expenses was the impact of $16.3 million in reduced revenues.
Adjusted EBITDA(4) for the quarter was a loss of $60.9 million compared to a loss of $53.1 million in the prior-year quarter, reflecting the reduced operating earnings that resulted from the timing of Easter, a weaker Mexican peso and reduced international fees.
As of March 31, 2009, the Company had $79.4 million in unrestricted cash and $0.9 million available (after reduction for outstanding letters of credit of approximately $31.4 million) on its $275 million revolving credit facility.
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