Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company, today announced a record high $451 million of revenue for the first six months of 2013, representing a $10 million or 2 percent increase over prior year, or a 3 percent increase after adjusting 2012 for $3 million of insurance proceeds related to Hurricane Irene. Adjusted EBITDA2 for the same six-month period was $100 million, a $13 million or 15 percent increase after adjusting for the insurance proceeds and the 2012 sale of the company’s minority interest in dcp3.
“I am pleased with our record year-to-date financial performance, despite cooler temperatures and unprecedented levels of precipitation at our eastern and mid-western parks during the second quarter,” said Jim Reid-Anderson, Chairman, President and CEO. “Our exciting new attractions and all-time high guest-satisfaction ratings have propelled our performance to new highs. We remain on track to deliver our aspirational target of $500 million of Modified EBITDA or approximately $3 of cash earnings per share by 2015.”
Second quarter Adjusted EBITDA of $138MM grew $1 million over last year’s record performance after adjusting for the sale of dcp, despite an Easter-related attendance shift into the first quarter 2013 and adverse weather in the East and Midwest. The growth in profitability was a direct result of the company’s pricing strategy and its ability to effectively manage costs. For the twelve-month period ending June 30, 2013, Adjusted EBITDA was $388 million and Modified EBITDA4 margin improved to a new industry high of 39.6 percent.
Total guest spending per capita grew $0.46 or 1 percent in the second quarter to $39.52, with admissions revenue per capita increasing $0.61 or 3 percent to $22.59 and in-park revenue per capita decreasing $0.15 or 1 percent to $16.93. In the first six months of the year, total guest spending per capita grew $0.36 or 1 percent to $39.74, with admissions revenue per capita increasing $0.56 or 3 percent to $22.62 and in-park revenue per capita decreasing $0.20 to $17.12. Attendance for the first six months increased 1 percent to 10.7 million guests.
The company continued to successfully upsell guests to season passes and membership plans, and as a result, deferred revenue grew to $130 million as of June 30, 2013, an increase of $23 million or 22 percent compared to June 30, 2012.
Cash earnings per share5 for the twelve-month period ending June 30, 2013 was $2.29, an increase of $0.29 per share or 15 percent compared to the prior twelve-month period ending June 30, 2012. The second quarter 2013 cash earnings per share of $0.97 represented an increase of $0.08 per share or 9 percent, as compared to the second quarter 2012.
During the first six months of 2013 the company invested $72 million in new capital and also paid dividends of $88 million, or $0.45 per common share per quarter, and repurchased $404 million or 12.2 million shares of its common stock, both after adjusting for the June 26, 2013 two-for-one stock split. Net Debt6 as of June 30, 2013 was $1,201 million, a 3.1 times net leverage ratio, as compared to Net Debt of $776 million as of December 31, 2012.
By Thomas Steinmetz