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1 December 2015 Investor Presentation December 2015

Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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Page 1: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

1December 2015

Investor PresentationDecember 2015

Page 2: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 3: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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)

Page 4: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 5: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 6: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 7: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

7December 2015

A Focused Strategy

Delivering excellence in all we do

Page 8: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 9: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 10: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 11: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 12: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 13: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 14: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 15: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 16: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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)

Page 17: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 18: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 19: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 20: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 21: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 22: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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)

Page 23: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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)

Page 24: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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)

Page 25: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 26: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 27: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 28: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 29: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 30: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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

Page 31: Investor Presentation December 2015 - Six Flags/media/Files/S/SixFlags... · 2016-03-08 · December 2015 2 Disclaimer • Presentation includes forward looking statements about events

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.