Slide 1: Mark Shapiro, Chief Executive Officer
Mark Shapiro Chief Executive Officer
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
W earass Introduction to Six Flags
Slide 4: Welcome to Six Flags!
Welcome to Six Flags! X Six Flags is the world’s largest regional theme park company - Approximately 25M guests annually - Operates 20 theme/water parks in North America1 X 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-
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 X Improved Guest Experience X Increased Total Revenue Per Capita by 14% X Built Corporate Alliance sales team and grew revenue from $16M under contract to $26M by year end X 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 X Implemented capital plan to broaden the family offering (e.g., Wiggles Worlds, Thomas Towns, Cirque Coobrila, Tony Hawk Spinning Coasters, Operation Spy Girl) X Implemented Staffing Initiative to improve recruitment, training, retention and efficiency, all aimed at impro
Slide 8: dick clark productions "DCP" Investment
dick clark productions “DCP” Investment X Attractive investment opportunity with meaningful growth potential at a favorable price ($40M investment for LTM Adjusted EBITDA of $7M) X Content synergies through leveraging the DCP library across our portfolio of parks via Six Flags Media Networks at no a
Slide 9: 2008 Key Initiatives
W earass 2008 Key Initiatives
Slide 10: 2008: Drive Core Business, Grow New Revenue Streams, Control Costs
2008 : Drive Core Business, Grow New Revenue Streams, Control Costs X A Thrilling Capital Program • Includes 7 coasters in 7 parks X More efficient, targeted marketing plan X Continued growth in per capita spending X Grow high margin Sponsorship and Licensing revenue streams X Full year benefit of D
Slide 11: 2008 Expense Reductions
2008 Expense Reductions X Reduce cash Operating Expenses (excluding cost of sales) by $50M X Approximately $25M of reductions are marketing-related • Moving from 3 to 2 advertising agencies • Less radio, more on-line spending • Concentrating spending into Spring and early Summer Season X Approximate
Slide 12: International Opportunities
International Opportunities X Six Flags has concluded its first international licensing agreement for a Six Flags theme park to be developed in Dubai X We have also entered into a 1-year exclusivity agreement with respect to a potential Six Flags theme park/resort development in China X We are in di
Slide 13: Jeff Speed, EVP & Chief Financial Officer - Financial Overview
Jeff Speed EVP & Chief Financial Officer Financial Overview
Slide 14: Selected Performance Metrics
Selected Performance Metrics Attendance* (millions) Attendance X The Company experienced limited 27.9 28.2 27.5 28.7 attendance growth from 2002 to 24.8 24.9 2005 X Attendance has declined as the Company has re-positioned the brand 2002 2003 2004 2005 2006 2007 X Average attendance over the past 6 y
Slide 15: Selected Financial Metrics
Selected Financial Metrics Adjusted EBITDA ($M)* 261 Adjusted EBITDA 195 X Six Flags experienced Adjusted EBITDA 190 declines in 2006 and 2007, driven by increased costs to improve the product 2005 2006 2007 Capital Expenditures ($M)* Capital Expenditures 163 X Annual capital spending has been 123 1
Slide 16: Financial Developments
Financial Developments X 4Q 2007 Reduction in Stockholder’s Equity X Company adopted EITF Topic D-98, resulting in a $252.6M stockholder’s deficit. X Deficit is a result of reflecting the full redemption prices of the limited partnership units related to Six Flags Over Georgia and Six Flags Over Tex
Slide 17: 2007 to 2008 "Bridge"
2007 to 2008 “Bridge” (in $M) 2007 Adjusted EBITDA $190 plus OpEx Savings 50 plus Increase in Sponsorship and Licensing 13 plus Increase in Guest Spending Per Caps 10 plus Full-Year Impact of DCP and SFDK 7 2008 "Flat" Adjusted EBITDA* 270 less CapEx (100) less Cash Interest, 1Q PIERS Dividend and T
Slide 18: 2008 Q1 Preview
2008 Q1 Preview X Revenues increased by 35% over 2007 performance • Company benefited from Easter Holiday shift, resulting in 19% attendance growth • Per Capita guest spending increased 13% over Q1 2007 X Guest spending increases were across the board X Cash Operating Expenses improved by 6%, or $8M
Slide 19: Q1 Performance
Q1 Performance ’08 vs. ‘07 & ‘05 2008 Better/(Worse) Than (In #039;s millions) 2007 2005 2008 2007 2005 $ % $ % STATISTICS Op Days 179 156 187 23 15% (8) (4%) Attendance (in millions) 1.4 1.2 1.5 0.2 19% (0.1) (5%) Total Rev Per Cap $47.11 $41.51 $32.62 $5.60 13% $14.49 44% FINANCIALS Total Revenue 6
Slide 20: Debt Maturity Profile
SixFlags Debt Maturity Profile i gixFlags 1,200 1,000 800 s 600 400 200 0 — — 2008 2009 2010 2011 2012 2013 2014 2015 mOrigind) 1,022 288 300 0 0 388 299 mu Current 9 296 289 9 9 658 1,086 59
Slide 21: PIERS and 2010 Maturities
PIERS and 2010 Maturities X Six Flags has various potential alternatives to address the $288M PIERS due in August 2009 and the $280M 8.875% Notes due February 2010 • $300M uncommitted optional Term Loan • Refinancing or exchange/extension • Asset Sales (excess land and/or parks) • New Orleans Insura
Slide 22: Future Growth Potential
{Sixt lag S Investor Day Future Growth Potential
Slide 23: Future Growth Potential
Future Growth Potential X 2011 Scenario 1 Assumptions: • Theme Park revenue growth at forecasted CAGR of 3.9%* • Sponsorship and International Revenue reaches $100M • Cost of Goods Sold is 9% of Theme Park revenue • Operating Expense growth at 4.5% CAGR off 2008 guidance 2007 2011 CAGR Total Revenue
Slide 24: Future Growth Potential
Future Growth Potential X 2011 Scenario 2 Assumptions: • Attendance reaches 6-year historical average of 27M • Total revenue per capita reaches $47.00 • Cost of Goods Sold is 8.5% of revenue • Operating Expense growth at a 5.5% CAGR off 2008 guidance 2007 2011 CAGR Total Revenue (M) $973 $1,269 6.9%