Six Flags EBITDA falls to $209.8 million in quarter ended Sept. 30

By Caroline Salls

Pittsburgh, Nov. 2 - Six Flags, Inc. reported $209.7 million of EBITDA for the quarter ended Sept. 30 on $457 million of total revenues, according to a company news release.

Six Flags said the EBITDA decreased by $25.9 million from the third quarter of 2008 as a result of the impact of reduced revenues, partially offset by lower third-party interest and reduced cash operating expenses.

The third quarter 2009 revenues decreased by 7% from the $489.3 million reported for the quarter ended Sept. 30, 2008.

The company attributed this decline to reduced attendance and guest spending. Six Flags said revenues for the quarter also were affected by a decline in sponsorship, licensing and other fees, primarily driven by lower international licensing fees.

In addition, the company said its results from continuing operations in the third quarter decreased to $165.8 million from $166.5 million in the third quarter of 2008. The decrease was driven by a $21.3 million reduction in income from operations primarily resulting from reduced revenues partially offset by lower expenses, the release said.

For the nine months ended Sept. 30, Six Flags said total revenues decreased $92.2 million, or 10%, to $811.0 million from $903.2 million in the first nine months of 2008, primarily reflecting reduced attendance and guest spending.

The company said the overall negative macroeconomic environment also impacted the first nine months of 2009.

Adjusted EBITDA for the first nine months of this year was $205 million, a decrease of $65 million from the adjusted EBITDA of $270.1 million for the first nine months of last year.

Six Flags said it expects to finish 2009 with an adjusted EBITDA of roughly $190 million.

Driving the year-over-year change for the fourth quarter is the impact of declines in in-park guest spending and decreased revenues stemming from adverse weather conditions during October, as well as reduced international licensing fees, the release said.

The company said it also expects slightly higher cash operating expenses, reflecting the timing of specific promotional and repairs and maintenance programs.

Six Flags, a regional theme park company based in New York, filed for bankruptcy on June 13 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-12019.

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