Six Flags Entertainment Corporation · NYSE:FUN
Six Flags Entertainment — Cedar Fair — Investor Presentation (October 2010)
20 slides from Six Flags Entertainment's investor presentation, Oct 5, 2010
Slide 1: Cedar Fair
Exhibit 99 a Cedar fair. Ny maison oh
Slide 2: Forward Looking Statements
Forward Looking Statements Some slides and comments included here, particularly related to estimates, comments on expectations about future performance or business conditions, may contain forward looking statements. These statements may involve risks and uncertainties that are difficult to predict,
Slide 3: Speakers
Speakers Richard Kinzel Chairman, President and Chief Executive Officer Cedar Fair Entertainment Company Peter Crage Corporate VP of Finance and Chief Financial Officer Cedar Fair Entertainment Company 3
Slide 4: Agenda
AGENDA Investment Highlights YTD Financial Results 2010 Outlook Long-Term Strategy Growth Goals & Catalysts Key Metrics Capital Structure Cash Flows Distribution Strategy Q&A 4
Slide 5: Investment Highlights
Investment Highlights Recognized innovative leader in regional amusement parks, water parks, resorts and active entertainment Attractive park locations and diverse geographical footprint High-margin industry niche with significant barriers to entry Strong and distinctive brands known for high-qualit
Slide 6: Overview of Financial Results
Overview of Financial Results Cedar Fair reports strong summer season operating results Year-to-Date Performance (unaudited) 9/5/2010 In millions, except per capita amounts 9/6/2009 Change % Change Total revenues $ 824 $ 792 $ 32 4.0% Attendance 18.8 17.9 0.9 5.0% Average in-park guest per capita sp
Slide 7: Financial Highlights (through Sept. 5, 2010)
Financial Highlights (through Sept. 5, 2010) Southern Region Parks In-park revenues up 9% Attendance up 444k visits World-class roller coasters introduced at Kings Dominion and Carowinds Northern Region Parks In-park revenues up 3% Attendance up 83k visits Out-of-park revenues up more than 10% Weste
Slide 8: Financial Highlights (through Sept. 5, 2010)
Financial Highlights (through Sept. 5, 2010) Season Pass Sales/Visits Revenues from pass sales up ~$16 million Season pass visits up 870k Results driven by “value price”marketing campaign geared towards families and targeted capital expenditures High perceived value Group Business 365k visit increas
Slide 9: 2010 Outlook
2010 Outlook Reaffirm 2010 Company Guidance Revenues between $940 million and $965 million Adjusted EBITDA, excluding one- time costs, between $320 million and $340 million Cash interest costs ~$130 million Cash taxes of $20 million to $23 million 2010 Capital Expenditures ~$85 million 9
Slide 10: 2010 Outlook
2010 Outlook Approx. 15% of Operating Season Still Remaining (as of September 5, 2010) Award Winning Halloween Events Several parks charge separate gate admission Other Fall Special Events Include: Rev3 Triathlon Event at Cedar Point Christian Music Concerts at Cedar Point and Carowinds Cheerleading
Slide 11: Long-Term Financial Goals
Long-Term Financial Goals Our proven and stable business model should allow us to: Grow revenues by 10% to 14% by 2015 (~2.3% CAGR) Grow adjusted EBITDA by 10% to 14% by 2015 (~2.3% CAGR) Achieve free cash flows of $120 million to $140 million on an annual basis during 2012 to 2015 Reduce Consolidat
Slide 12: Long-Term Growth Strategy
Long-Term Growth Strategy Steadily grow attendance and revenues through continued investment in trend- setting new rides and attractions along with new targeted marketing programs Maintain strict controls over operating costs while maintaining “best-in-class” visitor experience Further reduction of
Slide 13: Achieving Long-Term Growth
Achieving Long-Term Growth Goal: Grow revenues by 10% to 14% by 2015 (~2.3% CAGR) Create Value Create Buzz Trademark new rides and attractions Media placement Unique experience customer cannot Online social networks (Facebook, recreate at home Twitter) Increased focus on special events Digital marke
Slide 14: Achieving Long-Term Growth
Achieving Long-Term Growth Goal: Grow adjusted EBITDA by 10% to 14% by 2015 (~2.3% CAGR) Revenue Growth Expanding market share and visitor spend Strict cost controls Proven history of controlling operating costs Low corporate overhead Remain focused on our four cornerstones: Safety, Cleanliness, Cou
Slide 15: Achieving Long-Term Growth
Achieving Long-Term Growth Goal: Achieve free cash flows of $120 million to $140 million on an annual basis during 2012 to 2015 Adjusted EBITDA CAGR of ~2.3% to 2015 required to meet cash flow goals Cash FOR: Cash Interest Expense 2011 ~$160 million (due to “old” swaps which mature in 2011 and 2012)
Slide 16: Achieving Long-Term Growth
Achieving Long-Term Growth Goal: Reduce Consolidated Leverage Ratio to 4.0x in 2013 We have stabilized our capital structure: Long-term debt includes: $1,175 million senior secured term loan (matures Dec 2016) $405 million senior unsecured notes (matures Dec 2018) $260 million available through a se
Slide 17: Achieving Long-Term Growth
Achieving Long-Term Growth Stabilizing the capital structure has put us in a position to reward unit holders as we execute on our plan: Excess Cash Flow Treatment per Credit Agreement 50% available senior secured leverage ratio is >3.25x 75% available senior secured leverage ratio is 2.75x to 3.25x
Slide 18: Achieving Long-Term Growth
Achieving Long-Term Growth Goal: $1.25 - $1.75 annual distribution per LP unit by 2015 Stabilizing the capital structure has put us in a position to reward unit holders as we execute on our plan: Declaring 2010 distribution of $0.25 per unit Payable on December 15, 2010 to unitholders of record on D
Slide 19: Investment Highlights
Investment Highlights Recognized innovative leader in regional amusement parks, water parks, resorts and active entertainment Attractive park locations and diverse geographical footprint High-margin industry niche with significant barriers to entry Strong and distinctive brands known for high-qualit
Slide 20: Q&A
Q&A 20 a Cedar fair. Entertainment Comprar.