Slide 1: ICR Xchange Conference January 2008
ICR Xchange Conference January 2008 1
Slide 2: Forward Looking Statements
Forward Looking Statements The information contained in this presentation, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements may involve risks and uncertai
Slide 3: Introduction to Six Flags
Introduction to Six Flags 3
Slide 4: Welcome to Six Flags!
Welcome to Six Flags! Six Flags is the world’s largest regional theme park company - Approximately 25M guests annually - Operates 20 theme/water parks in North America1 Six Flags appeals to a broad demographic, with 75% of our customers within 100 miles of our parks 0-25 miles 6% 6% 2% 4% 4% 26-50 m
Slide 5: Expansive Geographic Footprint
Expansive Geographic Footprint San Francisco St. Louis New England Chicago Lake George Six Flags serves 7 of the top 10 metro areas and reaches 9 of the top 10 DMAs New York/ Philadelphia Washington DC Los Angeles Atlanta San Antonio Louisville Six Flags’ other North Dallas American parks are La Ron
Slide 6: 2006: Clean-up the Parks
2006: Clean-up the Parks • Improved Guest Experience • Increased Total Revenue Per Capita by 14% • Built Corporate Alliance sales team and grew revenue from $16M under contract to $26M by year end • Brought numerous name brand offerings into the parks (including Papa John’s, Coldstone Creamery and K
Slide 7: 2007: Broaden the Offering
2007: Broaden the Offering • Implemented capital plan to broaden the family offering (e.g., Wiggles Worlds, Thomas Towns, Cirque Coobrila, Tony Hawk Spinning Coasters, Operation Spy Girl) • Implemented Staffing Initiative to improve recruitment, training, retention and efficiency, all aimed at impro
Slide 8: dick clark productions Investment
dick clark productions Investment • Compelling investment opportunity with meaningful growth potential at an attractive price ($40M investment for LTM Adjusted EBITDA of $7M) • Content synergies through leveraging the dick clark library across our portfolio of parks via Six Flags TV and Radio at no
Slide 9: 2008 Key Initiatives
2008 Key Initiatives 9
Slide 10: 2008: Drive Attendance, Diversify Revenue and Control Costs
2008 : Drive Attendance, Diversify Revenue and Control Costs • A Thrilling Capital Program – Includes 8 coasters in 8 parks • More efficient, targeted marketing plan • Continued growth in per capita spending • Full year benefit of dick clark productions investment and Discovery Kingdom acquisition •
Slide 11: 2008 Expense Reductions
2008 Expense Reductions • Reduce cash Operating Expenses (excluding cost of sales) by $50-60M • Approximately $25-30M of reductions are marketing-related • Moving from 3 to 2 advertising agencies • Less radio, more on-line spending (where the teens are) • Concentrating spending into Spring and early
Slide 12: Considerable Sponsorship Potential
Considerable Sponsorship Potential More Reach! In comparison to a professional sports sponsorship, Six Flags has a competitive advantage as it relates to reaching more fans for extended periods of time…. 2006 Annual Attendance 24.8 21.6 20.9 17.3 6.9 Source: League Websites HOME RUN! Six Flags guest
Slide 13: DVR and VOD Penetration
DVR and VOD Penetration • 55% of US households (65 Million) will have a DVR by 2011 (currently 33 Million) • DVR owners skip commercials 53% of the time, and growing • VOD currently at 11% penetration, expected to grow to 30% by ’08, growing by 120% through 2011 Source: Forrester’s North American Co
Slide 14: Six Flags Media Networks
Six Flags Media Networks • Six Flags TV – 42-inch Plasma TVs in queue lines – Demographically appropriate placement and content allows advertisers to deliver targeted commercial messaging – Average wait-time in high-traffic lines is 39 minutes • In-Park Radio Network • On-line Web Site with unique c
Slide 15: International Opportunities
International Opportunities • Six Flags is in advanced discussions concerning several international theme park development opportunities: – Middle East – India – East Asia • Partnership opportunities may include: – Regional exclusivity – Theme park design and development – Brand licensing – Manageme
Slide 16: 2008 Capital Plan
2008 Capital Plan • 2006 Capital was focused on cleaning up the parks • 2007 Capital was focused on balancing the parks’ offerings with new family options • 2008 Plan is for an unprecedented number of new “hybrid” coasters (i.e., they cater to both tweens and teens/young adults) • Total CapEx will b
Slide 17: Financial Review
Financial Review 17
Slide 18: Selected Performance Metrics
Selected Performance Metrics Attendance* (millions) • Attendance 27.9 28.2 27.5 28.7 24.9 – The Company experienced limited 24.8 attendance growth from 2002 to 2005 – Attendance in the last two years 2002 2003 2004 2005 2006 2007F has been disappointing Total revenue per capita* $38.07 $39.03 • Tota
Slide 19: Selected Financial Metrics
Selected Financial Metrics Adjusted EBITDA ($M)* • Adjusted EBITDA 261 195 – Six Flags suffered a significant EBITDA 185 decline in 2006, driven by increased costs – Forecasting an additional decline in 2007, also driven by increased costs 2005 2006 2007F Capital Expenditures ($M)* • Capital Expendi
Slide 20: Debt Maturity Profile
Debt Maturity Profile Early 2007 Current 20
Slide 21: PIERS Mandatory Redemption
PIERS Mandatory Redemption • Six Flags has various potential alternatives to fund the redemption of the PIERS in August 2009 – Credit facility optional term loan ($300M uncommitted credit facility) – Asset sales (including excess land) • The Company owns significant parcels in New Jersey and Marylan
Slide 22: 2007 to 2008 "Bridge"
2007 to 2008 “Bridge” Range (in millions) 2007 EBITDA Forecast $185 $185 plus OpEx Savings 50 60 plus Increase in Guest Spending Per Caps 10 15 plus Full-Year Impact of dcpi and SFDK 5 10 2008 "Flat" EBITDA* $250 $270 less CapEx (100) (100) less Cash Interest and Dividends (200) (200) 2008 Free Cash