Market Overview

Record Start to 2018 at Six Flags


First Quarter Revenue Grows 30 Percent Driven by 27 Percent Increase in

Six Flags Entertainment Corporation (NYSE:SIX), the world's largest
regional theme park company, today announced that revenue for the first
quarter of 2018 increased by $29 million or 30 percent from the first
quarter of 2017 to a record-high $129 million. The revenue growth
resulted primarily from a 27 percent increase in the number of guests
visiting Six Flags parks, and the success of both the company's pricing
strategy and international licensing program. Attendance at Six Flags
properties grew by 0.5 million to 2.4 million guests. This increase was
driven by additional operating days from Six Flags Magic Mountain moving
to a 365-day calendar; Hurricane Harbor Mexico being open in the first
quarter, while not open in the first quarter of 2017; adjustments to
park operating schedules due to the earlier timing of the Easter
holiday; and additional attendance due to the company's higher Active
Pass Base, which represents the total number of guests who have
purchased a season pass or who are enrolled in the company's membership

"We are firing on all cylinders as we made excellent progress in the
quarter against each of our five growth initiatives," said Jim
Reid-Anderson, Chairman, President and CEO. "With our record-high Active
Pass Base, ongoing price increases across all ticket and culinary
programs, growing dining pass penetration, new water park openings and
new international licensing agreements, we are poised to deliver another
record year of financial performance in 2018. We remain laser-focused on
exceeding $600 million of Modified EBITDA1 in 2018 and
continue to work toward our long-term aspirational goal of $750 million
of Modified EBITDA by 2020."

Since most of the parks were not scheduled to be open during the first
quarter, the company had a net loss during the quarter of $62 million.
The loss per share for the first quarter of 2018 was $0.74 compared to a
loss per share of $0.63 in the first quarter of 2017, primarily due to a
reduced tax benefit in the quarter because of federal tax reform.
Adjusted EBITDA2 for the first quarter was a loss of $19
million, an improvement of $16 million over the prior year period
primarily due to the 27 percent increase in attendance and higher guest
spending per capita. Modified EBITDA for the twelve months ended March
31, 2018, was $574 million, an increase of $41 million or 8 percent
compared to the twelve months ended March 31, 2017. Modified EBITDA
margin for the 12-month period improved to a new industry high of 41.4

The company's Active Pass Base increased 10 percent year-over-year to a
new all-time high for the first quarter. Increasing season pass and
membership penetration is a key tenet of the company's growth strategy,
providing a platform of recurring revenue and the ability to further
grow attendance as the company expands its network of parks. Season pass
holders, and especially members, are the company's most loyal and
valuable guests, generating more recurring revenue and cash flow for the
company than a single day guest. Season passes and memberships also
provide an excellent hedge against inclement weather throughout the

Deferred revenue of $182 million as of March 31, 2018, increased by $25
million or 16 percent from March 31, 2017, primarily due to a higher
level of season pass, membership and all season dining pass sales for
the 2018 season.

Total guest spending per capita for the first quarter of 2018 was
$46.07, an increase of $1.78 or 4 percent compared to the first quarter
of 2017. Admissions revenue per capita increased $0.66 to $28.15 and
in-park spending per capita increased $1.12 to $17.93. Favorable foreign
currency rate translation accounted for $0.59 of the increase in total
guest spending per capita, although it had a negligible impact on
Modified EBITDA and Adjusted EBITDA.

In the first quarter of 2018, the company invested $42 million in new
capital projects. The company also paid $66.0 million in dividends, or
$0.78 per common share, and repurchased 1.3 million shares of its common
stock at an aggregate cost of $81 million, leaving 83.5 million shares
of stock outstanding as of March 31, 2018. The authorized share
repurchase amount available as of March 31, 2018, was $262 million.

Net Debt3 as of March 31, 2018, calculated as total reported
debt of $2.18 billion less cash and cash equivalents of $33 million, was
$2.14 billion, representing a net leverage ratio of 4.0 times Adjusted

Previous Announcements

On February 20, 2018, the company announced an ambitious initiative to
power two more of its parks almost entirely with solar power, bringing
the number of parks in this program to three. Once the projects are
constructed, the company expects to save approximately $3 million per
year in energy costs.

On March 26, 2018, the company announced that its lenders approved a
reduction to the borrowing rate on the company's Term Loan B Credit
Facility, reducing the company's borrowing rate by 25 basis points. In
conjunction with the repricing, the company increased the size of its
Term Loan B Credit Facility by $39 million, which funded on April 18,
2018. Proceeds will be used for general corporate purposes, including
share repurchases.

On April 4, 2018, the company and Saudi Arabia's Public Investment Fund
(PIF) announced plans to develop a Six Flags-branded theme park in the
city of Riyadh.

On April 24, 2018, the company and its partner in China, Riverside
Investment Group, announced a licensing agreement to develop three Six
Flags-branded parks in Nanjing, China, which will be the partner's third
park complex. The parks are expected to begin opening in 2021.

Conference Call

At 8:00 a.m. Central Time tomorrow, April 25, 2018, the company will
host a conference call to discuss its first quarter 2018 financial
performance. The call is accessible through either the Six Flags
Investor Relations website at
or by dialing 1-855-889-1976 in the United States or +1-937-641-0558
outside the United States and requesting the Six Flags earnings call. A
replay of the call will be available by dialing 1-855-859-2056 or
+1-404-537-3406 through May 2, 2018 and requesting conference ID 1772359.

About Six Flags Entertainment Corporation

Six Flags Entertainment Corporation is the world's largest regional
theme park company with $1.4 billion in revenue and 20 parks across the
United States, Mexico and Canada. For 57 years, Six Flags has
entertained millions of families with world-class coasters, themed
rides, thrilling water parks and unique attractions. For more
information, visit

Forward Looking Statements

The information contained in this release, other than historical
information, consists of forward-looking statements within the meaning
of Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act. These statements may involve risks and uncertainties that
could cause actual results to differ materially from those described in
such statements. These risks and uncertainties include, among others,
(i) the adequacy of cash flows from operations, available cash and
available amounts under our credit facilities to meet our future
liquidity needs, (ii) our ability to roll out our capital enhancements
in a timely and cost effective manner, (iii) our ability to improve
operating results by implementing strategic cost reductions, and
organizational and personnel changes without adversely affecting our
business, (iv) our operations and results of operations, and (v) the
risk factors or uncertainties listed from time to time in the company's
filings with the Securities and Exchange Commission ("SEC"). In
addition, important factors, including factors impacting attendance,
such as local conditions, natural disasters, contagious diseases,
events, disturbances and terrorist activities; recall of food, toys and
other retail products sold at our parks; risk of accidents occurring at
the company's parks or other parks in the industry and adverse publicity
concerning our parks or other parks in the industry; inability to
achieve desired improvements and our aspirational financial performance
goals; adverse weather conditions such as excess heat or cold, rain and
storms; general financial and credit market conditions; economic
conditions (including customer spending patterns); changes in public and
consumer tastes; construction delays in capital improvements or ride
downtime; competition with other theme parks and other entertainment
alternatives; dependence on a seasonal workforce; unionization
activities and labor disputes; laws and regulations affecting labor and
employee benefit costs, including increases in state and federally
mandated minimum wages, and healthcare reform; pending, threatened or
future legal proceedings and the significant expenses associated with
litigation; cyber security risks and other factors could cause actual
results to differ materially from the company's expectations. Although
the company believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that
such expectations will be realized and actual results could vary
materially. Reference is made to a more complete discussion of
forward-looking statements and applicable risks contained under the
captions "Cautionary Note Regarding Forward-Looking Statements" and
"Risk Factors" in the company's Annual and Quarterly Reports on Forms
10-K and 10-Q, and its other filings and submissions with the SEC, each
of which are available free of charge on the company's investor
relations website at
and on the SEC's website at


(1)   See the following financial statements and Note 3 to those financial
statements for a discussion of Modified EBITDA (a non-GAAP financial
measure) and its reconciliation to net income (loss).
(2) See the following financial statements and Note 3 to those financial
statements for a discussion of Adjusted EBITDA (a non-GAAP financial
measure) and its reconciliation to net income (loss).
(3) Net Debt (a non-GAAP financial measure) represents total long-term
debt as reported, including current portion, and any short-term bank
borrowings, less cash and cash equivalents.


Statement of Operations Data (1)
Three Months Ended Twelve Months Ended
(Amounts in thousands, except per share data)

March 31,

March 31,

March 31,

March 31,

Theme park admissions $ 66,321 $ 50,948 $ 756,648 $ 708,280
Theme park food, merchandise and other 42,246 31,160 535,668 514,037
Sponsorship, licensing and other fees 16,092 13,290 80,898 65,187
Accommodations revenue   4,305     4,130     15,296     16,003  
Total revenue 128,964 99,528 1,388,510 1,303,507
Operating expenses (excluding depreciation and amortization shown
separately below)
102,500 92,900 521,473 489,061
Selling, general and administrative expense (excluding depreciation,
amortization and stock-based compensation shown separately below)
36,385 34,983 183,169 176,723
Costs of products sold 10,463
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