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- Quarterly Revenue Down 2% Due to Soft July Attendance, Partially Offset by Total Revenue Per Capita Growth- Nine Month Revenue Up 2% on Stable Attendance and Total Revenue Per Capita Growth, Despite Fewer Park Operating Days NEW YORK, Nov. 9 /PRNewswire-FirstCall/ -- Six Flags, Inc. (NYSE: SIX) today announced operating results for its third quarter and nine months ended September 30, 2007.(1)Total revenue for the quarter decreased 2% to $465.2 million from $474.2 million in the prior-year quarter. Attendance decreased 0.3 million, or 3%, to 12.0 million from 12.3 million in the prior year. The attendance decrease stems from a difficult July during which attendance dropped 9% compared to the prior year reflecting unfavorable weather primarily at our Texas and Georgia parks, one less Saturday in the operating calendar, and extensive national media coverage of a ride-related accident in late June at the Company's park in Louisville, Kentucky. Prior to these events, attendance for June had increased 10% over the prior year. Following these events, August stabilized at 1% and September increased 8% over the prior year attendance.Total revenue per capita for the quarter increased by $0.39 (1%) to $38.90, reflecting increased sponsorship revenue. Per capita guest spending increased $0.04 during the quarter to $37.13 as guests spent 3% more in-park, primarily on food and beverages, parking, and games, while per capita spending on admissions was down slightly, reflecting an increased mix of season pass and promotional offer attendance.The Company's income from continuing operations for the quarter was $89.7 million, compared to income of $127.9 million in the third quarter of 2006, reflecting reduced revenue, $15.3 million of increased costs and expenses primarily from increased advertising ($10.0 million) and park-wide labor ($5.3 million), the cost of settling a class-action labor lawsuit in California (included with other expense in the statement of operations), and an increased loss on the disposal of fixed assets."I'm proud of the advances we continue to make at Six Flags despite a temporary setback within the third quarter due to inclement July weather and extensive negative publicity stemming from the accident at our Kentucky park," said Mark Shapiro, Six Flags President and CEO. "With revenue per guest and consumer satisfaction scores at all-time highs and a powerful park-wide capital expansion plan on deck, we are well positioned to deliver on the promise of this company's turnaround in 2008."Net income applicable to common stock in the third quarter 2007 was $84.2 million, or $0.61 per share - diluted, compared to net income applicable to common stock of $159.3 million, or $1.08 per common share - diluted in the prior-year period, which included $36.8 million (or $0.23 per common share - diluted) of gain from discontinued operations.Adjusted EBITDA(2) for the quarter was $198.6 million, compared to $216.7 million in the third quarter of 2006, reflecting decreased revenue and increased costs and expenses and a $5.2 million reduction in third-party share of Adjusted EBITDA due to the Company's acquisition in July of the minority interest in Six Flags Discovery Kingdom.Nine Month ResultsFor the nine months ended September 30, 2007, total revenue increased $19.3 million, or 2%, to $860.6 million from $841.3 million in the prior-year period.Total revenue per capita for the nine months compared to the prior-year period increased $0.94 (2%) to $39.02 reflecting increased sponsorship revenue and per capita guest spending. Increased per capita guest spending for the nine months of $0.44 over the prior-year period, or 1%, to $36.91 was driven by increased food and beverages, parking, rentals and games revenue. Attendance for the nine months ended September 30, 2007 was 22.1 million, flat with the prior-year period, despite 53 (2%) fewer park operating days.Total costs and expenses, including cost of sales, depreciation, amortization, stock-based compensation and loss on fixed assets, increased $14.7 million to $752.5 million for the first nine months of 2007 compared to the prior-year period. The key drivers of the change were increased advertising expense ($28.0 million) and park-wide labor ($10.6 million), partially offset by prior-year costs related to the change in management ($13.7 million), a reduced loss on fixed assets ($8.8 million) and lower stock-based compensation ($6.8 million).Net loss applicable to common stock for the first nine months of 2007 was $142.7 million, or $1.51 per share, compared to a net loss applicable to common stock of $132.4 million, or $1.41 per common share in the prior-year period. The increased net loss of $10.3 million reflects a higher loss from continuing operations ($6.8 million) driven by higher costs and expenses and an increased loss from discontinued operations ($4.6 million), partially offset by the impact of a prior-year change in accounting principles ($1.0 million).Adjusted EBITDA for the first nine months of 2007 improved by $0.6 million over the prior-year period to $187.7 million.Cash and LiquidityAs of September 30, 2007, the Company had no balance outstanding on its $275 million revolving credit facility (excluding letters of credit in the amount of $33.3 million) and had $105.4 million in unrestricted cash.
Once the final routes are chosen and funding is promised, construction could take six or seven years beginning in early 2009, said John J. Matheussen, DRPA's executive director.
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