Fourth Consecutive Record Year at Six Flags

(1)

See the following financial statements and Note 3 to those financial statements for a discussion of Adjusted EBITDA and its reconciliation to net income (loss).

(2)

The company's noncontrolling interest in dick clark productions, which was divested on September 28, 2012, generated $5.4 million, $1.9 million, $3.3 million and $0.3 million of Adjusted EBITDA for the company in Q4 2011, Q1 2012, Q2 2012 and Q3 2012, respectively.

(3)

Cash EPS (or Cash Earnings Per Share), which is defined as Free Cash Flow^, as described in Note 6 to the following financial statements, divided by the weighted average basic shares outstanding, is not a U.S. GAAP defined measure. The company believes this measure provides meaningful profitability metrics, given current accumulated tax loss carryforwards and the net depreciation/amortization impacts relating to the revaluation of assets in connection with the company's emergence from Chapter 11 in April 2010.

(4)

See Note 3 to the following financial statements for a discussion of Modified EBITDA and its reconciliation to net income (loss).

(5)

Net Debt represents total long-term debt, including current portion, less cash and cash equivalents.

Six Flags Entertainment Corporation

(In Thousands, Except Per Share Amounts)

Statements of Operations Data (1)

Three Months Ended

December 31,

2013

2012

Theme park admissions

$ 78,911

$ 73,018

Theme park food, merchandise and other

62,200

58,222

Sponsorship, licensing and other fees

10,115

9,901

Accommodations revenue

2,962

2,778

Total revenue

154,188

143,919

Operating expenses (excluding depreciation and

 amortization shown separately below)

76,556

72,227

Selling, general and administrative expense (excluding

 depreciation, amortization and stock-based

 compensation shown separately below)

31,093

31,842

Costs of products sold

11,122

10,025

Depreciation

27,271

31,720

Amortization

3,597

3,603

Stock-based compensation

5,538

17,991

Loss on disposal of assets

1,620

458

Gain on sale of investee

-

(278)

Interest expense, net

18,565

12,390

Loss on debt extinguishment

789

587

Other expense, net

37

317

Loss from continuing operations before

 reorganization items, income taxes and 

 discontinued operations

(22,000)

(36,963)

Reorganization items, net

-

460

Loss from continuing operations

 before income taxes and discontinued operations

(22,000)

(37,423)

Income tax benefit

(34,760)

(192,606)

Income from continuing operations before

 discontinued operations

12,760

155,183

Income from discontinued operations

549

116

Net income

$ 13,309

$ 155,299

Less: Net income attributable to

  noncontrolling interests

6

455

Net income attributable to

  Six Flags Entertainment Corporation

$ 13,315

$ 155,754

Per share - basic:

     Income from continuing operations

       attributable to Six Flags Entertainment

       Corporation common stockholders

$    0.13

$     1.46

     Income from discontinued operations

       attributable to Six Flags Entertainment

       Corporation common stockholders

$    0.01

$           -

Net income attributable to Six Flags Entertainment

   Corporation common stockholders

$    0.14

$     1.46

Per share - diluted:

     Income from continuing operations

       attributable to Six Flags Entertainment

       Corporation common stockholders

$    0.12

$     1.40

     Income from discontinued operations

       attributable to Six Flags Entertainment

       Corporation common stockholders

$    0.01

$           -

Net income attributable to Six Flags Entertainment

   Corporation common stockholders

$    0.13

$     1.40

Weighted average shares outstanding - basic

95,070

106,998

Weighted average shares outstanding - diluted

98,661

110,928

Six Flags Entertainment Corporation

(In Thousands, Except Per Share Amounts)

Statements of Operations Data (1)

Year Ended

December 31,

2013

2012

Theme park admissions

$ 602,204

$ 576,708

Theme park food, merchandise and other

448,547

437,382

Sponsorship, licensing and other fees

42,179

39,977

Accommodations revenue

17,000

16,265

Total revenue

1,109,930

1,070,332

Operating expenses (excluding depreciation and

 amortization shown separately below)

417,482

411,679

Selling, general and administrative expense (excluding

 depreciation, amortization and stock-based

 compensation shown separately below)

162,184

163,000

Costs of products sold

86,663

80,169

Depreciation

113,682

132,397

Amortization

14,393

15,648

Stock-based compensation

27,034

62,875

Loss on disposal of assets

8,579

8,105

Gain on sale of investee

-

(67,319)

Interest expense, net

74,145

46,624

Equity in loss of investee

-

2,222

Loss on debt extinguishment

789

587

Other expense, net

1,234

612

Restructure recovery

-

(47)

Income from continuing operations before

 reorganization items, income taxes and 

 discontinued operations

203,745

213,780

Reorganization items, net

(180)

2,168

Income from continuing operations

 before income taxes and discontinued operations

203,925

211,612

Income tax expense (benefit)

47,601

(184,154)

Income from continuing operations before

 discontinued operations

156,324

395,766

Income from discontinued operations

549

7,273

Net income

$156,873

$403,039

Less: Net income attributable to

  noncontrolling interests

(38,321)

(37,104)

Net income attributable to

  Six Flags Entertainment Corporation

$ 118,552

$ 365,935

Per share - basic:

     Income from continuing operations

       attributable to Six Flags Entertainment

       Corporation common stockholders

$     1.21

$     3.33

     Income from discontinued operations

       attributable to Six Flags Entertainment

       Corporation common stockholders

$     0.01

$     0.07

Net income attributable to Six Flags Entertainment

   Corporation common stockholders

$     1.22

$     3.40

Per share - diluted:

     Income from continuing operations

       attributable to Six Flags Entertainment

       Corporation common stockholders

$     1.17

$     3.23

     Income from discontinued operations

       attributable to Six Flags Entertainment

       Corporation common stockholders

$     0.01

$     0.07

Net income attributable to Six Flags Entertainment

   Corporation common stockholders

$     1.18

$     3.30

Weighted average shares outstanding - basic

96,940

107,684

Weighted average shares outstanding - diluted

100,371

110,936

The following table sets forth a reconciliation of net income to Adjusted EBITDA and Free Cash Flow for the 

periods shown (in thousands):

Three Months Ended

December 31,

2013

2012

Net income

$ 13,309

$ 155,299

Income from discontinued operations

(549)

(116)

Income tax benefit

(34,760)

(192,606)

Reorganization items, net

-

460

Other expense, net

37

317

Loss on debt extinguishment

789

587

Interest expense, net

18,565

12,390

Loss on disposal of assets

1,620

458

Gain on sale of investee

-

(278)

Amortization

3,597

3,603

Depreciation

27,271

31,720

Stock-based compensation

5,538

17,991

Impact of Fresh Start valuation adjustments (2)

152

255

Modified EBITDA (3)

35,569

30,080

Third party interest in EBITDA

  of certain operations (4)

(3)

(122)

Adjusted EBITDA (3)

$ 35,566

$ 29,958

Cash paid for interest, net

(6,619)

(11,449)

Capital expenditures

(12,671)

(19,374)

Cash taxes (5)

(2,321)

(1,243)

Free Cash Flow (6)

$ 13,955

$  (2,108)

Weighted average shares outstanding - basic

95,070

106,998

Cash Earnings (Loss) Per Share

$    0.15

$   (0.02)

The following table sets forth a reconciliation of net income to Adjusted EBITDA and Free Cash Flow for the 

periods shown (in thousands):

Year Ended

December 31,

2013

2012

Net income

$ 156,873

$ 403,039

Income from discontinued operations

(549)

(7,273)

Income tax expense (benefit)

47,601

(184,154)

Restructure recovery

-

(47)

Reorganization items, net

(180)

2,168

Other expense, net

1,234

612

Loss on debt extinguishment

789

587

Equity in loss of investee

-

2,222

Interest expense, net

74,145

46,624

Loss on disposal of assets

8,579

8,105

Gain on sale of investee

-

(67,319)

Amortization

14,393

15,648

Depreciation

113,682

132,397

Stock-based compensation

27,034

62,875

Impact of Fresh Start valuation adjustments (2)

594

993

Modified EBITDA (3)

444,195

416,477

Third party interest in EBITDA

  of certain operations (4)

(40,083)

(33,848)

Adjusted EBITDA (3)

$ 404,112

$ 382,629

Cash paid for interest, net

(51,349)

(41,713)

Capital expenditures (net of property insurance recoveries in 2012)

(101,853)

(98,495)

Cash taxes (5)

(13,768)

(9,435)

Free Cash Flow (6)

$ 237,142

$ 232,986

Weighted average shares outstanding - basic

96,940

107,684

Cash Earnings Per Share

$     2.45

$     2.16

Balance Sheet Data (1)

(In Thousands)

Balance Sheet Data

December 31, 2013

December 31, 2012

Cash and cash equivalents

  (excluding restricted cash)

$ 169,310

$ 629,208

Total assets

2,607,814

3,056,391

Deferred income

60,443

52,703

Current portion of long-term debt

6,269

6,240

Long-term debt (excluding current

  portion)

1,394,334

1,398,966

Redeemable noncontrolling interests 

437,569

437,941

Total equity

373,337

888,666

Shares outstanding

94,857

107,638

(1)

Revenues and expenses of international operations are converted into U.S. dollars on an average basis as provided by GAAP.  Amounts have been recast to reflect the June 2013 stock split and reflect corrected valuation allowance amounts.

(2)

Amounts recorded as valuation adjustments and included in reorganization items for the month of April 2010 that would have been included in Modified EBITDA and Adjusted EBITDA, had fresh start accounting not been applied.  Balance consists primarily of discounted insurance reserves that will be accreted through the statement of operations each quarter through 2018.

(3)

"Modified EBITDA", a non-GAAP measure, is defined as the Company's consolidated income (loss) from continuing operations: excluding the cumulative effect of changes in accounting principles, discontinued operations gains or losses, income tax expense or benefit, restructure costs or recoveries, reorganization items (net), other income or expense, gain or loss on early extinguishment of debt, equity in income or loss of investees, interest expense (net), gain or loss on disposal of assets, gain or loss on the sale of investees, amortization, depreciation, stock-based compensation, and fresh start accounting valuation adjustments. The Company believes that Modified EBITDA is useful to investors, equity analysts and rating agencies as a measure of the Company's performance.  The Company believes that Modified EBITDA is a measure that can be readily compared to other companies, and the Company uses Modified EBITDA in its internal evaluation of operating effectiveness and decisions regarding the allocation of resources.  Modified EBITDA is not defined by GAAP and should not be considered in isolation or as an alternative to net income (loss), income (loss) from continuing operations, net cash provided by (used in) operating, investing and financing activities or other financial data prepared in accordance with GAAP or as an indicator of the Company's operating performance.  Modified EBITDA as defined herein may differ from similarly titled measures presented by other companies.

"Adjusted EBITDA", a non-GAAP measure, is defined as Modified EBITDA minus the interests of third parties in the Adjusted EBITDA of properties that are less than wholly owned (consisting of Six Flags Over Georgia, Six Flags White Water Atlanta, Six Flags Over Texas, and Six Flags Great Escape Lodge & Indoor Waterpark (the "Lodge") of which the Company purchased the noncontrolling interests from its partners in the Lodge in 2013) plus the Company's interest in the Adjusted EBITDA of dick clark productions, inc., which was sold in September 2012.  The Company believes that Adjusted EBITDA provides useful information to investors regarding the Company's operating performance and its capacity to incur and service debt and fund capital expenditures.  Adjusted EBITDA is approximately equal to "Parent Consolidated Adjusted EBITDA" as defined in the Company's secured credit agreement, except that Parent Consolidated Adjusted EBITDA excludes Adjusted EBITDA from equity investees that is not distributed to the Company in cash on a net basis and has limitations on the amounts of certain expenses that are excluded from the calculation.  Adjusted EBITDA is not defined by GAAP and should not be considered in isolation or as an alternative to net income (loss), income (loss) from continuing operations, net cash provided by (used in) operating, investing and financing activities or other financial data prepared in accordance with GAAP or as an indicator of the Company's operating performance.  Adjusted EBITDA as defined herein may differ from similarly titled measures presented by other companies.

(4)

Represents interests of third parties in the Adjusted EBITDA of Six Flags Over Georgia, Six Flags Over Texas, Six Flags White Water Atlanta and the Lodge, plus the Company's interest in the Adjusted EBITDA of dick clark productions, inc., which are less than wholly owned.  The Company purchased the noncontrolling interests from its partners in the Lodge in 2013 and sold its interest in dick clark productions, inc. in September 2012.

(5)

Based on our current federal net operating loss carryforwards, we believe we will continue to pay minimal amounts for cash taxes for the next three to four years.  Cash taxes paid represents statutory taxes paid, primarily in Mexico.

(6)

Free Cash Flow, a non-GAAP measure, is defined as Adjusted EBITDA less (i) cash paid for interest expense net of interest income receipts, (ii) capital expenditures net of property insurance recoveries, and (iii) cash taxes.  The Company has excluded from the definition of Free Cash Flow deferred financing costs related to the Company's debt due to the unusual nature of these items.  The Company believes that Free Cash Flow is useful to investors, equity analysts and rating agencies as a performance measure.  The Company uses Free Cash Flow in its internal evaluation of operating effectiveness and decisions regarding the allocation of resources.Free Cash Flow is not defined by GAAP and should not be considered in isolation or as an alternative to net income (loss), income(loss) from continuing operations, net cash provided by (used in) operating, investing and financing activities or other financial data prepared in accordance with GAAP or as an indicator of the Company's operating performance.  Free Cash Flow as defined herein may differ from similarly titled measures presented by other companies.