Six Flags releases Q3 and nine month earnings

By Ryan McClung | Filed under News on Nov 3, 2009

In short, Six Flags Inc. is performing nearly as expected. Attendance is down and those still visiting aren't spending quite as much as they used to. You can find excerpts from each the quarterly and nine month reports, as well as the full-year forecast below. Click through to read the full report.

Three Month Results

Total revenues of $457.0 million decreased 7% from the prior-year quarter's total of $489.3 million, primarily reflecting reduced attendance and guest spending. Attendance for the quarter was 12.0 million, down 1% comparing to 12.2 million in the third quarter of 2008. Although the Company benefitted from increased single-day ticket and season pass attendance, this was more than offset by a decline in group sales, reflecting cutbacks in outings by companies, schools and other organizations, and reduced complimentary and free promotional tickets.

Nine Month Results

For the nine months ended September 30, 2009, total revenues decreased $92.2 million, or 10%, to $811.0 million from $903.2 million in the prior-year period, primarily reflecting reduced attendance and guest spending. Attendance for the first nine months of 2009 was 21.2 million, down 5% from 22.2 million in the same period of 2008, benefitting from increased single-day tickets and season pass attendance, but more than offset by reductions in group sales along with decreased complimentary and free promotional tickets.

Full-Year Forecast

The Company is forecasting to finish 2009 with an Adjusted EBITDA of approximately $190 million, reflecting an Adjusted EBITDA loss of approximately $15 million in the fourth quarter of 2009 compared to a positive Adjusted EBITDA of $5.2 million in the fourth quarter of 2008. Driving the year-over-year change for the fourth quarter is the impact of declines in in-park guest spending and decreased revenues due to adverse weather conditions during October, especially on the east coast, which has led to a loss of approximately 450,000 in attendance, compared to October 2008, as well as reduced international licensing fees. The Company also anticipates slightly higher cash operating expenses, reflecting the timing of specific promotional and repairs and maintenance programs.