Six Flags reports record revenue and earnings in Q2
GRAND PRAIRIE, TX - Six Flags Entertainment Corporation (NYSE: SIX), the world's largest regional theme park company, today announced record financial performance in the second quarter 2014 as revenue
GRAND PRAIRIE, TX – Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company, today announced record financial performance in the second quarter 2014 as revenue grew $13 million or 4 percent to $377 million, fueled by higher guest spending. Adjusted EBITDA1 for the same three-month period was $145 million, a $7 million or 5 percent increase. Revenue for the first six months of the year was flat to prior year while Adjusted EBITDA increased 2 percent.
“We are squarely focused on executing our long-term strategy and remain confident in our ability to deliver yet another record year in 2014,” said Jim Reid-Anderson, Chairman, President and CEO. “The nine percent growth in our Active Pass Base, record-high guest satisfaction ratings, and robust guest spending per capita through the first six months of the year all indicate continued strength in our business. We remain solidly on track to deliver our $500 million Modified EBITDA Target by 2015.”
For the twelve-month period ending June 30, 2014, Adjusted EBITDA was $406 million and Modified EBITDA2 was $445 million. Modified EBITDA margin remained an industry high of 40.1 percent.
In the second quarter, total guest spending per capita grew $4.21 or 11 percent to $43.73, with admissions revenue per capita increasing $2.56 or 11 percent to $25.15 and in-park revenue per capita increasing $1.65 or 10 percent to $18.58. Attendance for the second quarter decreased 8 percent to 8.2 million guests primarily due to the lingering effects of the long, harsh winter that expanded school calendars and slowed early-season attendance, especially among existing members and season pass holders.
In the first six months of 2014, total guest spending per capita grew $4.01 or 10 percent to $43.75, with admissions revenue per capita increasing $2.51 or 11 percent to $25.13 and in-park revenue per capita increasing $1.50 or 9 percent to $18.62.
The Active Pass Base, which includes season pass holders and guests in the company’s membership program, increased 9 percent from June 30, 2013 to June 30, 2014.
Cash earnings per share3 for the twelve-month period ending June 30, 2014 was $2.23.
During the first six months of 2014 the company invested $81 million in new capital, paid dividends of $90 million, or $0.47 per common share per quarter, and repurchased $8 million or 0.2 million shares of its common stock. Net Debt4 as of June 30, 2014 was $1,281 million, which translates to a 3.2 times net leverage ratio.
During the quarter the company announced a new strategic partnership to build multiple Six Flags-branded theme parks in China. “Our ongoing initiative to expand the Six Flags brand internationally is an exciting and important component of our long-term growth strategy,” noted Reid-Anderson. “We look forward to ongoing success in this area and working closely with our new partners in China and the Middle East.”