Six Flags Entertainment Corporation · NYSE:FUN
Six Flags Entertainment — Debt Investor Presentation (June 2009)
27 slides from Six Flags Entertainment's debt investor presentation, Jun 26, 2009
Slide 1: Presentation to the Unsecured Creditors of Six Flags, Inc. and its Subsidiaries
Presentation to the Unsecured Creditors of Six Flags, Inc. and its Subsidiaries Unsecured Creditors Organizational Meeting
Slide 2: Table of Contents
Table of Contents Tab Company Overview 1 Restructuring Overview 2
Slide 3: Disclaimer
Disclaimer This presentation (the “Presentation”) was produced to provide information to the unsecured creditors of Six Flags, Inc. and its subsidiaries (“Six Flags”, “SFI”, or the “Company”) in connection with the Chapter 11 filing under the United States Bankruptcy Code by Six Flags on June 13, 20
Slide 4: Disclaimer: Cautionary Statement Regarding Forward-Looking Information
Disclaimer Cautionary Statement Regarding Forward-Looking Information This Presentation may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “p
Slide 5: Disclaimer: Non-GAAP Financial Measures
Disclaimer Non-GAAP Financial Measures The Company uses “Adjusted EBITDA”, “Modified EBITDA” and “Free Cash Flow” to assess the operating results and effectiveness of its business. These terms presented in this Presentation are supplemental measures of performance that are not required by, or recogn
Slide 6: Company Overview
Company Overview
Slide 7: Business Description
Company Overview Business Description Six Flags, Inc. (“Six Flags,” “SFI” or the “Company”) is the largest regional theme park operator in the world. As demonstrated on the following page, the Company currently operates 20 family-oriented amusement and water parks throughout the United States, Canad
Slide 8: Geographic Footprint
Company Overview Six Flags New England Six Flags Great Escape Lodge & Indoor Waterpark The Great Escape & Splashwater Kingdom Six Flags Great America Six Flags St. Louis Six Flags Discovery Kingdom Six Flags Magic Mountain Six Flags Hurricane Harbor Six Flags Fiesta Texas Six Flags Hurricane Harbor
Slide 9: Recent Operational Initiatives and Improvements
Company Overview Recent Operational Initiatives and Improvements In late 2005/early 2006, a newly installed Board of Directors of Six Flags replaced senior management. Since then, under the direction of Mark Shapiro (CEO), the Company has initiated a number of operational and financial performance i
Slide 10: Revenue Diversification
Revenue Diversification Six Flags has increased sponsorship, licensing and other fees from approximately $16.0 million at the time new management was installed in 2006 to approximately $56.9 million for the LTM period ending March 31, 2009. In terms of Licensing Revenues, Six Flags partnered with Ta
Slide 11: Recent Financial Performance
Company Overview Recent Financial Performance Set forth below is the Company’s recent financial performance. Source: Six Flags, Inc.. (1) Constitutes operating costs and expenses excluding depreciation, amortization, stock-based compensation, loss on disposal of assets and non-recurring restructurin
Slide 12: Recent Financial Performance (continued)
Company Overview Recent Financial Performance (continued) Following a cumulative Revenue increase of approximately 8.4% between 2006 and 2008, Revenue declined by approximately 1.6% for the LTM period ending March 31, 2009 compared to full year 2008. Total Revenue Per Capita1, a key driver to Revenu
Slide 13: Recent Financial Performance (continued)
Company Overview Recent Financial Performance (continued) The relatively high level of necessary cash costs, including annual interest expense and capital expenditures, versus Adjusted EBITDA of approximately $267.4 million for the LTM period ending March 31, 2009, has resulted in a swing back to ne
Slide 14: Recent Developments
Company Overview Recent Developments On April 17, 2009, following several months of discussions with individual SFI noteholders, Six Flags commenced an offer to exchange the outstanding SFI Notes1 and PIERS into 85% and 10%, respectively, of Common Equity, with existing shareholders retaining 5% of
Slide 15: Recent Developments (continued)
Company Overview Recent Developments (continued) Through June 22, 2009, year-over-year attendance was down approximately 800,000, with a significant portion of the decline directly attributed to Six Flags Mexico, and Six Flags parks located in Texas and the Northeast. During April 2009, Six Flags Me
Slide 16: Decline in Attendance
Company Overview Decline in Attendance Set forth below is a comparison of YTD 2009 and 2008 actual cumulative attendance. Year-over-year cumulative attendance is down approximately 800,000 through June 22, 2009, with attendance falling below the prior year every week since the week ending April 26,
Slide 17: Decline in Per Capita Guest Spending
Company Overview Decline in Per Capita Guest Spending1 Set forth below is a comparison of YTD 2009 and 2008 actual Per Capita Guest Spending. Year-over-year Per Capita Guest Spending on a constant currency basis is down approximately 3.0% as shown below. Constant currency Per Capita Guest Spending h
Slide 18: Potential 2009 Adjusted EBITDA
Company Overview Potential 2009 Adjusted EBITDA Due to the year-to-date trends previously discussed, 2009 Adjusted EBITDA is likely to be significantly below 2008. Potential 2009 Adjusted EBITDA (1) Reflects attendance shortfall of approximately 800,000. (2) Reflects decline in Per Capita Guest Spen
Slide 19: Capital Structure
Company Overview Capital Structure As shown below, the Company is burdened by a significantly over-leveraged capital structure. (1) Pro Forma after giving effect to the Time Warner Partnership Park Put Financing, funded on May 15,2009. (2) Reflects potential 2009 Adjusted EBITDA of $200 million. (3)
Slide 20: Restructuring Overview
Restructuring Overview
Slide 21: Restructuring Timeline
Restructuring Timeline In a “last ditch” effort to provide potential value to all stakeholders, the Company commences an out-of-court offer to exchange the SFI Notes and PIERS into 85% and 10%, respectively, of Common Equity, with existing shareholders retaining 5% of the Common Equity. The Exchange
Slide 22: Restructuring Timeline
Restructuring Timeline Six Flags files for Chapter 11. 6/13/09 Company receives proposal from largest holder of the SFO Notes to backstop a Rights Offering to address liquidity concerns. Company engages in negotiations over amount and terms. Amount of commitment ultimately reduced less than a week b
Slide 23: Restructuring Overview: Chapter 11 Case
Restructuring Overview Premier International Holdings Inc. Chapter 11 Case The Company is seeking expedited approval of a pre-negotiated reorganization plan (the “Plan”) that is supported by the Lenders’ Steering Committee and the Administrative Agent under the Company’s $1.1 billion Senior Secured
Slide 24: Proposed Recoveries & Capitalization
Proposed Recoveries & Capitalization Overview of the Plan Under the terms of the Plan, senior secured lenders would receive a ratable share of a new $600 million term loan and approximately 92% of the equity in the reorganized Company. Bondholders would receive the remaining 8% of equity in the reor
Slide 25: Exit Financing
Exit Financing Capital Structure upon Emergence According to the Plan, the Company contemplates emerging from Chapter 11 with a $600 million term loan and a $150 million (undrawn) revolving credit facility. The $600 million term loan would be provided on a pro rata basis by the current senior lender
Slide 26: In-Court Restructuring
In-Court Restructuring Interim Approval Motion of Debtors and Debtors in Possession for an Order Appointing Kurtzman Carson Consultants LLC as Claims, Noticing and Balloting Agent, and Approving the Form and Manner of Notice of Section 341 Meeting. Interim Approval Motion of the Debtors and Debtors
Slide 27: Plan Support Agreement
Plan Support Agreement Plan Support Agreement On June 13, 2009, the Company entered into a Plan Support Agreement with certain lenders holding approximately 50% of the outstanding senior secured credit facility (the “Participating Lenders”). Pursuant to the Plan Support Agreement, the Participating