|Re: Another Record Year for Mr. Six in 2012|
Adjusted EBITDA(1) Climbs 9 Percent to $383 Million and Cash EPS(2) Grows 23 Percent to $4.33
PR NewswirePress Release: Six Flags Entertainment Corporation – 1 hour 42 minutes ago
GRAND PRAIRIE, Texas, Feb. 20, 2013 /PRNewswire/ -- Six Flags Entertainment Corporation (SIX), the world's largest regional theme park company, today announced another record year of financial results as it generated a company-high $383 million of Adjusted EBITDA in 2012, representing a $32 million or 9 percent increase over 2011. After adjusting for the September 2012 divestiture of its minority interest in dick clark productions3, the company's comparable 2012 Adjusted EBITDA increased $38 million or 11 percent over prior year. Free Cash Flow4 grew $40 million to $233 million while Cash Earnings Per Share increased 23 percent or $0.82 to $4.33.
"Excellent execution of our strategy has been a key factor in driving our third successive year of record performance," said Jim Reid-Anderson, Chairman, President and CEO. "Guests recognize that we are providing innovative rides and attractions, superb service, and great value for their money. We are well-positioned as we enter the 2013 season and remain focused on delivering our aspirational target of $500 million of Modified EBITDA by 2015, which equates to almost $6 of cash earnings per share."
Annual attendance grew 6 percent to 25.7 million, driven by the company's success in upselling guests to season passes. Higher penetration of season pass sales is a key initiative because season pass holders, over the course of an entire season, generate higher revenue and cash flow than single day visitors.
Revenue for the year increased 6 percent, or $57 million, to $1,070 million. Approximately $35 million of the revenue growth came from higher admissions revenue and another $24 million from higher in-park sales.
Total guest spending per capita in 2012 increased slightly over prior year to $39.41 despite the higher mix of season pass holder attendance. Admissions per capita for the year increased 0.5 percent or $0.11 to $22.41 while in park spending per capita was flat at $17.00.
Modified EBITDA5 in 2012 was $416 million and Modified EBITDA margin improved to an industry high of 38.9 percent—an increase of 153 basis points over 2011.
Diluted earnings per share for 2012 was $6.38 as compared to a loss of $0.41 in 2011. Both the fourth quarter and full year net income and earnings per share amounts were favorably impacted by the partial reversal of a net operating loss carryforward valuation allowance. Adjusting for the $237 million valuation reserve reversal, 2012 earnings per share was $2.10.
Fourth quarter 2012 revenue grew 5 percent to $144 million due to a 3 percent increase in attendance and a 2 percent increase in total revenue per capita. Guest spending per capita was up 3 percent to $35.82, which included a 4 percent or $0.72 increase in admissions per capita and a 2 percent or $0.28 increase in in-park revenue per capita. Fourth quarter attendance was 3.7 million.
Adjusted EBITDA in the fourth quarter was $30 million—a decline of $5 million due to the absence of EBITDA associated with the company's minority interest in dick clark productions, which was divested at the end of the third quarter 2012. On a comparable basis, Adjusted EBITDA grew 2 percent in the fourth quarter.
During the year, the company invested $98 million in new capital, net of property insurance recoveries and returned $380 million to shareholders by paying $148 million in dividends and repurchasing $232 million or 4.2 million shares of its common stock at an average price of $54.59 per share. In the fourth quarter, the company paid $52 million in dividends, or $0.90 per share, and repurchased $134 million or 2.2 million shares of its common stock.
Due to strong season pass sales for the 2013 season, deferred revenue as of December 31, 2012 grew to $53 million, a $15 million or 38 percent increase versus December 31, 2011.
Net Debt6 as of December 31, 2012 was $776 million, a 2.0 times net leverage ratio, compared to $726 million as of December 31, 2011.
In December, the company issued $800 million of senior unsecured notes at a 5.25 percent coupon. It used $350 million of the proceeds to pay down its bank term loan with the balance to be used for share repurchases and other corporate purposes. The company repurchased $203 million or 3.2 million shares between January 1, 2013 and February 19, 2013 and has $315 million remaining under its authorized share repurchase plan. As of February 19, 2013, 50.6 million shares were outstanding.
At 8:00 a.m. Central Time today, the company will host a conference call to discuss its fourth quarter and full year 2012 financial performance. The call is accessible either through the Six Flags Investor Relations website at www.sixflags.com/investors or by dialing 1-888-282-0415 in the United States or +1-415-228-4945 outside the United States and requesting the Six Flags earnings call. A replay of the call will be available by dialing 1-800-879-4907 or +1-402-220-4725 through March 2, 2013.
About Six Flags Entertainment Corporation
Six Flags Entertainment Corporation is the world's largest regional theme park company with over $1 billion in revenue and 18 parks across the United States, Mexico and Canada. For more than 50 years, Six Flags has entertained millions of families with world-class coasters, themed rides, thrilling water parks and unique attractions including up-close animal encounters, Fright Fest® and Holiday in the Park®. For more information, visit www.sixflags.com.
.90 dividend declared but just holding March 60 and June 65 calls , still exp...
| Reply to blacksheep - Msg #183 - 02/07/2013 08:48|
.90 dividend declared but just holding March 60 and June 65 calls , still expecting more upside.