13 slides from Six Flags Entertainment's debt investor presentation, Mar 12, 2010
Slide 1: Presentation to Ad Hoc Committee of SFI Noteholders
February 11, 2010 Presentation to Ad Hoc Committee of SFI Noteholders
Slide 2: Business Plan and Debt Capacity Analysis
Business Plan and Debt Capacity Analysis
Slide 3: Preliminary FYE 2009 Results
Confidential 2 Preliminary FYE 2009 Results Adjusted EBITDA declined from approximately $275.3 million in 2008 to an estimated $193.7 million in 2009. SFTP Cash Adjusted EBITDA declined from approximately $240.4 million in 2008 to an estimated $166.4 million in 2009. Reductions in costs of approxima
Slide 4: Summary of LRP
Confidential 3 Summary of LRP Six Flags’ long-range business plan (“LRP”) projects revenues to grow at a compound annual growth rate of 3.8% driven by growth in attendance, per capita spending, and sponsorship and licensing revenue. As outlined on the following page, this is at a growth rate signifi
Slide 5: Aggressive Business Plan: Six Flags vs. Industry vs. Cedar Fair
Confidential 4 Aggressive Business Plan Six Flags vs. Industry vs. Cedar Fair Projected Revenue Growth Six Flags Adj. EBITDA vs. Cedar Fair EBITDA Growth The Company’s projections based on the LRP show significant growth as compared to the industry and its most direct comparable. IBISWorld, an indep
Slide 6: Historical stretch targets, budgets and actual results
Confidential 5 Below is a summary of (i) the Company’s historical park-by-park “stretch” targets; (ii) the Company’s historical consolidated corporate budgets which include a “topside” adjustment; and (iii) actual results for fiscal years 2006 through 2009. The Company’s “stretch” targets on a park-
Slide 7: SFTP Cash Adjusted EBITDA
Confidential 6 SFTP Cash Adjusted EBITDA The Company’s “Adjusted EBITDA” (as reported in its SEC filings as a key operating performance metric) includes portions of EBITDA which are non-cash and/or required to service debt other than that issued by SFTP and/or SFI, which has not been consolidated in
Slide 8: Comparable Company Debt Capacity Metrics
Confidential 7 Comparable Company Debt Capacity Metrics (1) Recent transactions, particularly the two leveraged buyouts of directly comparable theme park operators (Blackstone’s purchase of Busch Entertainment Corporation (closed November 2009) and Apollo’s pending purchase of Cedar Fair LP) provide
Slide 9: Cash Flow Available for Debt Service
Confidential 8 Cash Flow Available for Debt Service After accounting for the non-cash components of Adjusted EBITDA and certain necessary operating claims on cash flow prior to debt service, the projected amount of cash flow available to service SFTP debt is approximately $69.6 million in 2010 (afte
Slide 10: Credit Statistics and Moody's Rating
Confidential 9 Credit Statistics and Moody’s Rating Set forth below are the credit statistics under the Debtors’ Plan and the SFI Alternative Proposal The Debtors’ Plan results in healthy (but not overly conservative) leverage and coverage statistics, considering the approximate 13% CAGR of Adjusted
Slide 11: Six Flags, Inc. Liquidity under Various Sensitivities
Six Flags, Inc. Confidential 10 Liquidity under Various Sensitivities (1) The Debtors’ Plan with the Court-approved exit financing provides for appropriate cushion from a liquidity perspective, as set forth in the chart below. Under the LRP, the Company’s available liquidity trough is expected to oc
Slide 12: Six Flags, Inc. Liquidity under Various Sensitivities (cont.)
Six Flags, Inc. Confidential 11 Liquidity under Various Sensitivities (cont.) (1) As set forth on the following page, given the inherent volatility of the Company’s business, the SFI Alternative Proposal does not provide the Company with sufficient operating flexibility and adequate liquidity even i
Slide 13: Liquidity under Various Sensitivities (cont.)
Confidential 12 Liquidity under Various Sensitivities (cont.) (1) Current Projections 2010 & 2011 Flat to 2009 ($193.7mm) 2010 & 2011 Historical Average of 2006-2009 ($210mm) Alt. Proposal – 1% Interest Rate and 1% Amort. Flex (2) Alternative Proposal – No Time Warner Alternative Proposal Current De