Six Flags Repurchases $20M of Stock in Q1 2011

Posted May 3, 2011

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Grand Prairie, TX -- Six Flags Entertainment Corporation (NYSE: SIX) today announced first quarter 2011 revenue of $61 million, an increase of $4 million or 7 percent over the same quarter in 2010. Adjusted EBITDA(1) was a loss of $49 million in the first quarter, an improvement of $11 million over the first quarter 2010. The improvement in Adjusted EBITDA resulted from strong revenue growth and a $6 million reduction in cash operating costs. 1.3 million guests visited Six Flags' parks during the quarter.

"The first quarter was a great start to our 2011 season," said Jim Reid-Anderson, Chairman, President and CEO. "Our employees continue to effectively execute our business strategy, and we are in the midst of unveiling one of the most exciting line-ups of innovation in rides, attractions and shows in a decade."

Revenue growth was driven by a 1 percent increase in attendance, an 11 percent increase in ticket revenue and a 10 percent increase in in-park sales, offset by a 4 percent decline in revenue related to sponsorships, international licensing, management fees and hotel accommodations, collectively. Revenue Per Capita for the first quarter 2011 was $48.02 compared to $45.43 for the first quarter 2010, which represents an increase of $2.59 or 6 percent. The $6 million reduction in cash operating costs primarily related to lower compensation and marketing costs.

The company has reached a settlement with its former Chief Financial Officer in its pending arbitration. The terms of the settlement are confidential and the company incurred a $27 million restructuring charge in the quarter to reflect the full settlement and related costs.

Due to the seasonality of the business, cash earnings per share(2) for the first quarter 2011 was a negative $2.94. Since the company emerged from Chapter 11 on April 30, 2010 with a new capital structure, the prior year cash earnings per share figure is not meaningful. Free Cash Flow(3) was a negative $82 million in the first quarter, which included $23 million of capital spending, net of insurance proceeds. Net Debt(4) as of March 31, 2011 was $896 million compared to $784 million at December 31, 2010.

During the first quarter the company repurchased $20 million of its stock at an average purchase price of $66.03 under a three-year, $60 million plan approved by the board of directors in February 2011.

Conference Call

The company will host a conference call today at 8:00 a.m. Central Daylight Time (CDT) to discuss its first quarter financial results. The call is available via webcast on the investor relations page of the company's website at www.sixflags.com/investors. The teleconference can also be accessed live by dialing 1-866-516-4937 in the United States or +1-763-416-8838 from outside the United States and requesting conference ID # 58151789 or the Six Flags Earnings Call.

To hear a replay of the call, dial 1-800-642-1687 or +1-706-645-9291 through May 24, 2011.

About Six Flags Entertainment Corporation
Six Flags Entertainment Corporation is the world's largest regional theme park company with 19 parks across the United States, Mexico and Canada. Six Flags Over Texas, the company's flagship location, is celebrating its 50th anniversary season in 2011.

Fresh Start Reporting

In connection with the company's emergence from Chapter 11 on April 30, 2010 and the application of fresh start reporting upon emergence in accordance with FASB ASC Topic 852, "Reorganizations", the results for the three-month period ended March 31, 2011 (the company is referred to during such period as the "Successor") and the results for the three-month period ended March 31, 2010 (the company is referred to during such period as the "Predecessor") are presented separately. This presentation is required by United States generally accepted accounting principles, as the Successor is considered to be a new entity for financial reporting purposes, and the results of the Successor reflect the application of fresh start reporting. Accordingly, the company's financial statements after April 30, 2010, are not comparable to its financial statements for any period prior to its emergence from Chapter 11. The financial information accompanying this earnings release provides the Successor and the Predecessor GAAP results for the applicable periods.

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