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1December 2015
Investor PresentationDecember 2015
2December 2015
Disclaimer
• Presentation includes forward looking statements about events and financial results
• Actual events or results may be materially different
• Risks are described in the company’s filings with the SEC
• Statements are made subject to “safe harbor” provisions of Private Securities Reform Act of 1995
• Full disclaimer and reconciliation of Non-GAAP financial measures to GAAP measures are at the end of this presentation
Presentation is subject to safe harbor laws
3December 2015
Why Invest in Six Flags?
• Exceptional brand & business foundation
• Substantial growth opportunities– Base business– International licensing
• Strong, recurring cash flow– Industry-leading margins– Cash EPS CAGR 22% (3x S&P 500)
• Excellent growth and yield stock– 9% Adj. EBITDA CAGR through 2017
(>2x growth rate of industry peer)– ~4.5% Dividend yield (>2x S&P 500)
Global leader in an attractive industry
(1) Excludes SFKK as discontinued operation(2) 2009 Modified EBITDA calculation includes revenue from Six Flags Great Escape Lodge and Indoor Water Park so it is consistent with future periods(3) Project 600 is an aspirational goal set by the company in October 2014 to achieve $600MM of Modified EBITDA by calendar year 2017
223
323379
416444
477
600
504
$0.08
$1.16
$1.75
$2.16$2.45
$2.63
$2.98
~$3.75
2009 2010 2011 2012 2013 2014 2015Q3
LTM
2017Project
600Adjusted EBITDA Modified EBITDA Cash EPS
Ongoing Growth Opportunity
(1)(2)
$MM $MM $
(3)
4December 2015
Investment Thesis
• Attractive industry– Stable in a weak economy– High barriers to entry
• Exceptional brand and business foundation– Focused strategy– Expansive array of entertainment & services– Record guest satisfaction levels
• Substantial growth opportunities– Innovative products and programs– Pricing and ticket yield management– Season Pass / Membership penetration– In-park revenue initiatives– International licensing
• Financial Excellence– Strong recurring revenue and cash flow– Industry-leading margin– Favorable capital allocation strategy– $0.4 billion NOL carry forward
• Employees closely aligned with shareholders
Global leader in an attractive industry
5December 2015
Attractive Industry
• Stable in normal economy – resilient in a weak one
• Compelling value relative to other forms of entertainment
• High recurring revenue
• High barriers to entry
– $300MM+ investment; 3+ years development
– Key North American markets already served
Stable industry with high barriers to entry
6December 2015
Investment Thesis
Global leader in an attractive industry
• Attractive industry– Stable in a weak economy– High barriers to entry
• Exceptional brand and business foundation– Focused strategy– Expansive array of entertainment & services– Record guest satisfaction levels
• Substantial growth opportunities– Innovative products and programs– Pricing and ticket yield management– Season Pass / Membership penetration– In-park revenue initiatives– International licensing
• Financial Excellence– Strong recurring revenue and cash flow– Industry-leading margin– Favorable capital allocation strategy– $0.4 billion NOL carry forward
• Employees closely aligned with shareholders
7December 2015
A Focused Strategy
Delivering excellence in all we do
8December 2015
18 Strategically Located Parks
Prime locations; economic and weather diversity; limited direct competition
• $1.2 billion revenue• 28 million guests• 39,000 employees
- 1,900 full-time• 800 rides / 130 coasters
9December 2015
Top-Rated Rides
Home to many of the top coasters and rides in North AmericaBizarroZumanjaro
Goliath
World’s tallest, fastest and steepest wooden coaster
Kingda Ka
220 foot drop plunging 77 miles per hour
TexasSkyScreamer
World’s tallest and
fastest Coaster
World’s tallest
drop ride
World’s FastestWooden Coaster
41 story drop at 90 miles per hour
World’s tallest swing
carousel ride
Wicked Cyclone
2015 Best New Attraction
10December 2015
Family Coasters
Concerts & Shows
Animals
Games
Events
Water Parks
Expansive Array of Entertainment
More than coasters… we provide thrills and entertainment for all ages
11December 2015
7.57.6
7.77.8
7.9 7.9
2010 2011 2012 2013 2014 2015Q3
Guest Satisfaction
Achieving record-high ratings, including value for the money and safety
Overall Guest Satisfaction(1)
(1)On a 10-point scale
12December 2015
Investment Thesis
Global leader in an attractive industry
• Attractive industry– Stable in a weak economy– High barriers to entry
• Exceptional brand and business foundation– Focused strategy– Expansive array of entertainment & services– Record guest satisfaction levels
• Substantial growth opportunities– Innovative products and programs– Pricing and ticket yield management– Season Pass / Membership penetration– In-park revenue initiatives– International licensing
• Financial Excellence– Strong recurring revenue and cash flow– Industry-leading margin– Favorable capital allocation strategy– $0.4 billion NOL carry forward
• Employees closely aligned with shareholders
13December 2015
Thrills for all ages• Guest-centered attractions• Mix of family, teen and tween thrills• 5-year plan
Capital Spending: 9% of revenue
60%15%
25%
New rides and attractions
AssetMaintenance
In-Park
Innovation
Introducing news in every park, every year
14December 2015
Innovation
Coming in 2016:
The Joker• Chaotic twists and turns
throughout 3,200 feet of dual-colored track.
• First ever “step-up under-flip” three-quarter roll on the first of three inversions
• Unique breaking wave turn• Zero G barrel roll plus 15 extreme
airtime moments at maximum speeds of 53 mph
Six FlagsDiscovery Kingdom
Six FlagsGreat Adventure
Six FlagsGreat America & Mexico
Total Mayhem• 4D Wing coaster• Two beyond-vertical free falls• Six head-over-heels spins
JUSTICE LEAGUE: BATTLE FOR METROPOLIS• Interactive battle where
guests fight together with super heroes
• Lifelike animatronics• 3D graphics and robust
gaming elements • First-of-its-kind, fully
programmable, multi-”degree-of-freedom” vehicles
15December 2015
Innovation Leader –2016 Attractions
. . . New attractions at every park
Six Flags New England Six Flags America
Superman the Ride• 20 stories, 77 miles per hour
Splashwater Falls• Giant interactive water playground
Six Flags Magic Mountain
The New Revolution• 360-degree looping coaster
The Great EscapeSix Flags Over Georgia La Ronde
Bugs Bunny Boom Town• Newly themed children’s area
Greezed Lightnin’• All-new super looping thrill ride
Vampire Backwards• Trains reversed on iconic coaster
16December 2015
Substantial Growth Opportunities
• Improving ticket yields
• Season Pass / Membership penetration
• In-park initiatives
• International licensing
• Innovative products and programs
Effective execution of our strategy is driving revenue and profit growth
913
9761,013
1,0701,110
1,1761,230
2009 2010 2011 2012 2013 2014 2015Q3
LTM
Revenue ($MM’s)
(1) 2009 Revenue restated to include Six Flags Great Escape Lodge and Indoor Waterpark, which was consolidated for reporting purposes beginning January 1, 2010
(1)
17December 2015
$25.02
$28.39
$38.37
SIX FUN SEAS
Ticket Yield Management
• Increase ticket prices
• Reduce and fence discounts
• Continue to raise guests’ value-for-the-money ratings
• Close / surpass pricing gap vs. others– SIX parks serve top 10 U.S. DMA’s
A multi-year approach to improve ticket yields
$21.06
$22.30 $22.41$23.03
$25.02$24.22
2010 2011 2012 2013 2014 2015Q3 LTM
Admissions Per Cap - SIX
2014 Admissions Per Cap – vs. Others
18December 2015
Season Pass and Membership Penetration
Season Pass Holders / Members:• Generate more annual revenue and
cash flow than single day visitors
• Build recurring revenue
• Visit during off-peak periods
• Provide weather hedge
• Put downward pressure on per caps
Growing base of season pass holders and members – up 25% as of September 30, 2015
30%32%
35%
44%48%
50%
2009 2010 2011 2012 2013 2014
Season Pass / Membership (1) Attendance% of Total
(1)Introduced membership program in February 2013
19December 2015
In-Park Revenue Initiatives
• Over 2,000 locations
• New products and programs
– All Season Dining Pass penetration– New offerings– Enhanced venues
Highly profitable businesses within the business
16.1016.49
17.03 17.00 17.15
17.9517.67
2009 2010 2011 2012 2013 2014 2015Q3
LTM
In-Park Revenue Per Cap
20December 2015
International Licensing
• Agreements in Middle East and China
• Strong global brand recognition –seeking additional partners
• Growing middle class, disposable income, and demand for entertainment
• Fees related to design & development, licensing, and management services
• Zero capital investment
Long-term strategy to license brand outside North America
21December 2015
Investment Thesis
Global leader in an attractive industry
• Attractive industry– Stable in a weak economy– High barriers to entry
• Exceptional brand and business foundation– Focused strategy– Expansive array of entertainment & services– Record guest satisfaction levels
• Substantial growth opportunities– Innovative products and programs– Pricing and ticket yield management– Season Pass / Membership penetration– In-park revenue initiatives– International licensing
• Financial Excellence– Strong recurring revenue and cash flow– Industry-leading margin– Favorable capital allocation strategy– $0.4 billion NOL carry forward
• Employees closely aligned with shareholders
22December 2015
Strong Recurring Revenue
Higher ticket yields and attendance are primary drivers of growth
(1)2009 Revenue restated to include Six Flags Great Escape Lodge and Indoor Waterpark, which was consolidated for reporting purposes beginning January 1, 2010
913
9761,013
1,0701,110
1,176
1,230
2009 2010 2011 2012 2013 2014 2015Q3
LTM
23.3
24.3 24.3
25.726.1
25.6
27.636.84 37.55
39.33 39.41 40.18
42.9741.90
2009 2010 2011 2012 2013 2014 2015Q3
LTMAttendance (MM) Guest Spending Per Cap ($)
Attendance / Guest Spending Per Capita Revenue ($MM)
(1)(1)
23December 2015
Cost Management
75.6%
67.4%
62.8%61.2% 60.0% 59.4% 59.1%
50%
55%
60%
65%
70%
75%
80%
2009 2010 2011 2012 2013 2014 2015Q3 LTM
Continued focus on reducing costs and improving operating leverage
Ongoing Initiatives:• Optimize seasonal labor
• Implement purchasing efficiencies
• Drive operational improvements
Cash Operating Costs(1) as a % of Revenue
(1) Includes Cash Operating Expenses, SG&A and Cost of Goods Sold.(2) 2009 adjusted to include Six Flags Great Escape Lodge and Indoor Waterpark, which was consolidated for reporting purposes beginning January 1, 2010.
(2)
24December 2015
197
295
350 383404 439 466
24.4%
33.1%
37.4% 38.9% 40.0% 40.6% 40.9%
13.3%
24.9%28.4% 29.7% 30.8% 31.4% 32.5%
2009 2010 2011 2012 2013 2014 2015Q3 LTM
Adjusted EBITDA Modified EBITDA Margin Modified EBITDA less CAPEX Margin
Strong EBITDA & Cash Flow
Growing earnings with industry-leading margin; EBITDA less CAPEX Margin 1,000 bps higher than next closest player
(1) Excludes SFKK as discontinued operation(2) 2009 Modified EBITDA Margin calculation includes revenue from Six Flags Great Escape Lodge and Indoor Water Park so it is consistent with future periods
Adjusted EBITDA ($MM’s)(1) and Modified EBITDA Margin(1)(2)
25December 2015
Leverage
Healthy balance sheet provides stability and flexibility
3.73.5
3.2 3.3
2.0
3.0 3.02.8
2012 2013 2014 2015Q3
Gross Leverage Net Leverage
Leverage*
* Debt balance includes OID
26December 2015
0.4% 0.6%
5.9%5.1% 4.8% 4.5%
1.83% 2.13% 2.20% 1.94% 1.92% 2.18%
2010 2011 2012 2013 2014 Sept 302015
SIX S&P 500
Capital Allocation
Strong commitment to return cash to shareholders
Dividend Yield(1) Cumulative Distributions ($MM)
$2.32 dividend per shareYield >2x S&P 500
160336
520 668
60
292
816
1,011
1,199
2011 2012 2013 2014 2015Oct 16
Dividends Share Repurchases
$71
$452
$1,151
$1,531
(1)As of December 31 for each year except 2015
$1,867Excess cash returned to
shareholders
27December 2015
Project 600
• CAPEX at 9% of revenue• $0.4 billion NOL carryforward
– Minimal cash taxes at least through 2018– Ongoing assessment of tax planning
strategies• Borrowing rates fixed on 67% of debt
Long-term aspirational goal of $600MM of Modified EBITDA by 2017
$1.75$2.16
$2.45 $2.63$2.98
~$3.75
2011 2012 2013 2014 2015Q3 LTM
2017Project
600
Cash EPSProject 600
$MM’s (ex. CEPS)
2015Q3 LTM
By 2017Project 600
Modified EBITDA 504 600Minority Interest (38) (38-42)Adjusted EBITDA 466 558 – 562CAPEX (104) (120 – 125)Taxes (13) (15 – 20)Cash Interest (69) (70 – 74)Cash Flow 280 339 - 357Cash EPS $2.98 ~$3.75
(1)
(1)2013 Cash EPS was $2.24 assuming a full year of cash interest
• 2011-2014 Cash EPS CAGR 14%• Project 600 Cash EPS represents
11% CAGR
28December 2015
An Excellent Value
• Strong and recurring cash earnings– Current dividend $2.32 per share– Cash EPS growing 11% CAGR
through 2017
• Attractive and sustainable dividend– NOLs shield taxes through 2018– Ongoing tax planning strategies
• Healthy balance sheet– 2.8x net leverage– 96% of debt matures in 2021 or
later
Company currently generates Cash EPS yield of 6% and could generate nearly 8% by 2017
Q3 2015
2017“Project 600”
Cash EPS $2.98 ~$3.75
Cash Yield(1) 6.5% ~8%
Net Leverage 2.8x ~2.3x
Attractive Cash Yield
(1) Assumes share price as of September 30, 2015 of $45.78
29December 2015
Summary
• Delighting our guests
• Building brand equity
• Leveraging brand outside North America
• Maximizing revenue and cash flow
• Generating strong returns for our shareholders
Delivering shareholder value
30December 2015
($MM except for Share and Cash EPS amounts) 2009(1) 2010 2011 2012 2013 20142015
Q3 LTMNet (Loss) Income (196) 634 13 403 157 114 157
Loss (Income) from Discontinued Operations 34 (9) (1) (7) (1) (1) (1)Income Tax Expense (Benefit) 3 124 (8) (184) 48 47 66Reorganization Items, Net 102 (812) 2 2 - - -Restructure Costs - 37 25 - - - -Other Expense, Net 17 - - 1 1 - 1Loss on Debt Extinguishment - 18 47 1 1 - 7Equity in (Income) Loss of Investee / (Gain) on Sale of Investee (4) 1 3 (65) - (10) -Interest Expense, Net 109 128 65 47 74 73 75Loss on Disposal of Assets 11 14 8 8 9 6 6Amortization 1 12 18 16 14 3 3Depreciation 143 152 151 132 114 105 103Stock-based Compensation 3 19 54 63 27 140 87Impact of Fresh Start Valuation Adjustments - 5 2 1 1 - -
Modified EBITDA 223 323 379 416 444 477 504Third Party Interest in EBITDA of Certain Operations (26) (28) (28) (34) (40) (38) (38)
Adjusted EBITDA 197 295 350 383 404 439 466Adjusted EBITDA 197 295 350 383 404 439 466
Capital Expenditures (net of property insurance recoveries) (98) (79) (91) (98) (102) (108) (104)Cash Interest (86) (79) (58) (42) (51) (67) (69)Cash Taxes (5) (8) (8) (9) (14) (17) (13)
Free Cash Flow 8 128 193 233 237 248 280Shares Outstanding (weighted average, basic)(2) 109,556 110,600 110,150 107,684 96,940 94,477 93,954
Cash (Loss) EPS(2) 0.08$ 1.16$ 1.75$ 2.16$ 2.45$ 2.63$ 2.98$
(1) 2009 includes the results of Six Flags Great Escape Lodge and Indoor Waterpark so it is consistent with future periods(2) Reflects June 2011 and June 2013 stock splits
Reconciliation of Non-GAAP Measures
31December 2015
Disclaimer
Note About Forward-Looking Information• The information contained in this presentation, other than purely historical information, contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section
21E of the Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements.• We caution you therefore that you should not rely on any of these forward-looking statements as statements of historical fact or as guarantees or assurances of future performance. These risks and
uncertainties include, but are not limited to: (i) the adequacy of cash flows from operations, available cash and available amounts under our credit facilities to meet our future liquidity needs, (ii) our ability to roll out our capital enhancements in a timely and cost effective manner, (iii) our ability to improve operating results by implementing strategic cost reductions, and organizational and personnel changes without adversely affecting our business, and (iv) our operations and results of operations. Additional important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and include the following: (i) factors impacting attendance, such as local conditions, contagious diseases, events, disturbances and terrorist activities; (ii) accidents occurring at our parks; (iii) adverse weather conditions; (iv) general financial and credit market conditions; (v) economic conditions; (vi) competition with other theme parks and other entertainment alternatives; and (vii) pending, threatened or future legal proceedings.
• Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the caption “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014 that is available on our website at www.sixflags.com\investors.
• Any forward-looking statement made by us in this presentation, or on our behalf by our directors, officers or employees related to the information contained herein, speaks only as of the date of this presentation. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not intend to update any forward-looking statement, whether as a result of new information, future developments or otherwise.
Non-GAAP Financial Measures• The non-GAAP financial measures defined herein are used throughout this presentation and a reconciliation to GAAP has been included in the appendix of this presentation.• 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 noncontrollinginterests from its partners in the Lodge in 2013). 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.
• 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 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.
• 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.
• Cash Operating Expenses include cost of goods sold, SG&A and operating expenses excluding, depreciation, amortization, stock-based compensation, and gain/loss on disposal of assets.Market and Industry Data • This presentation includes market, industry and competitor data, forecasts and valuations that have been obtained from independent consultant reports, publicly available information, various
industry publications and other published industry sources. Although we believe these sources are reliable, we have not independently verified the information and cannot make any representation as to the accuracy or completeness of such information.