Six Flags' Adjusted EBITDA Rises $11 Million or 18 Percent on Seven Percent Revenue Growth

Six Flags Entertainment Corporation

(In Thousands, Except Per Share Amounts)

Statements of Operations Data (1)

Three Months Ended

March 31,

2011

2010

Successor

Predecessor

Theme park admissions

$             26,336

$                   23,831

Theme park food, merchandise and other

22,933

20,843

Sponsorship, licensing and other fees

7,912

8,293

Accommodations revenue

4,154

4,296

Total revenue

61,335

57,263

Operating expenses (excluding depreciation and

amortization shown separately below)

77,255

79,745

Selling, general and administrative expense (excluding

depreciation, amortization and stock-based

compensation shown separately below)

29,389

33,472

Costs of products sold

5,570

5,496

Depreciation

39,522

36,521

Amortization

4,513

227

Stock-based compensation

14,303

598

Loss on disposal of assets

1,977

570

Interest expense (net)

16,520

60,435

Equity in loss from

operations of partnerships

1,156

183

Other income, net

(356)

(639)

Restructure costs

26,602

-

Loss from continuing operations before

reorganization items, income taxes and

discontinued operations

(155,116)

(159,345)

Reorganization items, net

500

20,461

Loss from continuing operations

before income taxes and discontinued operations

(155,616)

(179,806)

Income tax (benefit) expense

(7,085)

913

Loss from continuing operations before

discontinued operations

(148,531)

(180,719)

Loss from discontinued operations

(36)

(2,773)

Net Loss

$         (148,567)

$                (183,492)

Less: Net loss (income) attributable to

 noncontrolling interests

82

(84)

Net loss attributable to

 Six Flags Entertainment Corporation

$         (148,485)

$                (183,576)

Net loss applicable to Six Flags Entertainment

 Corporation common stockholders

$         (148,485)

$                (183,576)

Per share - basic and diluted:

    Loss from continuing operations

      applicable to Six Flags Entertainment

      Corporation common stockholders

$               (5.34)

$                      (1.84)

    Loss from discontinued operations

      applicable to Six Flags Entertainment

      Corporation common stockholders

$               (0.00)

$                      (0.03)

Net loss applicable to Six Flags Entertainment

  Corporation common stockholders

$               (5.34)

$                      (1.87)

Weighted average shares

 outstanding - basic and diluted

27,812

98,054

The following table sets forth a reconciliation of net loss to Adjusted EBITDA and Free Cash Flow for the periods shown (in thousands):

Three Months Ended

March 31,

2011

2010

Successor

Predecessor

Net loss

$          (148,567)

$               (183,492)

Loss from discontinued operations

36

2,773

Income tax (benefit) expense

(7,085)

913

Restructure costs

26,602

-

Reorganization items, net

500

20,461

Other income, net

(356)

(639)

Equity in loss from

operations of partnerships

1,156

183

Interest expense (net)

16,520

60,435

Loss on disposal of assets

1,977

570

Amortization

4,513

227

Depreciation

39,522

36,521

Stock-based compensation

14,303

598

Impact of Fresh Start valuation adjustments (2)

374

-

Modified EBITDA (3)

(50,505)

(61,450)

Third party interest in EBITDA

 of certain operations (4)

1,420

1,494

Adjusted EBITDA (3)

$            (49,085)

$                 (59,956)

Cash paid for interest (net)

(7,014)

(7,033)

Capital expenditures (net of property insurance recoveries)

(22,842)

(24,928)

Cash taxes

(2,962)

(3,030)

Free Cash Flow (5)

$            (81,903)

$                 (94,947)

Balance Sheet Data

(In Thousands)

Balance Sheet Data

March 31, 2011

December 31, 2010

Cash and cash equivalents

 (excluding restricted cash)

$                     78,738

$         187,061

Total assets

2,630,148

2,733,253

Current portion of long-term debt

36,223

32,959

Long-term debt (excluding current

 portion)

938,653

938,195

Redeemable noncontrolling interests

441,655

441,655

Total stockholders' equity

710,178

868,163

Shares outstanding

27,575

27,864

(1)  Revenues and expenses of international operations are converted into U.S. dollars on an average basis as provided by GAAP.

(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 reporting not been applied.  Balance consists primarily of discounted insurance reserves that will be accreted through the statement of operations each quarter through 2018.

(3)  “Adjusted EBITDA”, a non-GAAP measure, is defined as the Company’s consolidated income (loss) from continuing operations: (i) excluding the cumulative effect of changes in accounting principles, fresh start accounting valuation adjustments, discontinued operations, income tax expense or benefit, reorganization items, restructure costs, other income or expense, gain or loss on early extinguishment of debt, equity in operations of partnerships, interest expense (net), amortization, depreciation, stock-based compensation, gain or loss on disposal of assets, interests of third parties in the Adjusted EBITDA of properties that are less than wholly owned by the Company (consisting of Six Flags Over Georgia, Six Flags Over Texas, Six Flags White Water Atlanta and Six Flags Great Escape Lodge & Indoor Waterpark (the "Lodge"), and (ii) plus the Company’s share of the Adjusted EBITDA of dick clark productions, inc.  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.  The Company believes that Adjusted EBITDA is useful to investors, equity analysts and rating agencies as a measure of the Company's performance.  The Company uses Adjusted EBITDA in its internal evaluation of operating effectiveness and decisions regarding the allocation of resources.  In addition, Adjusted EBITDA is approximately equal to “Parent Consolidated Adjusted EBITDA” as defined in the Company’s secured credit facilities, 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.

"Modified EBITDA", a non-GAAP measure,  is defined as Adjusted EBITDA plus the interests of third parties in the Adjusted EBITDA of the properties that are less than wholly owned (consisting of Six Flags Over Georgia, Six Flags White Water Atlanta, Six Flags Over Texas, the Lodge plus the Company's interest in the Adjusted EBITDA of dick clark productions, inc.).  The Company believes that Modified EBITDA is useful in the same manner as Adjusted EBITDA, with the distinction of representing a measure that can be more readily compared to other companies that do not have interests of third parties in any of their properties or equity investments.  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.

(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.

(5)  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 (which includes $8.0 million of proceeds, in the third quarter, related to the final settlement of an insurance claim for Six Flags New Orleans), and (iii) cash taxes.  The Company has excluded from the definition of Free Cash Flow the $70.3 million in post-petition interest paid to the holders of the Six Flags Operations notes that were extinguished in April 2010, the deferred financing costs related to the Company's new debt of $41.8 million incurred in the second quarter of 2010, and the deferred financing costs related to the Company's debt refinancing of $11.8 million incurred in the fourth quarter of 2010, 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.