Fifth 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)

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.

(3)

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

(4)

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

SIX FLAGS ENTERTAINMENT CORPORATION

Statement of Operations Data ⁽¹⁾

Three Months Ended

Year Ended

(Amounts in thousands, except per share data)

December 31, 2014

December 31, 2013

December 31, 2014

December 31, 2013

Theme park admissions

$

95,577

$

78,911

$

641,535

$

602,204

Theme park food, merchandise and other

70,522

62,200

460,131

448,547

Sponsorship, licensing and other fees

14,812

10,115

57,250

42,179

Accommodations revenue

2,770

2,962

16,877

17,000

Total revenue

183,681

154,188

1,175,793

1,109,930

Operating expenses (excluding depreciation and amortization shown separately below)

85,391

76,556

437,431

417,482

Selling, general and administrative expense (excluding depreciation, amortization and stock-based compensation shown separately below)

39,028

31,093

170,917

162,184

Costs of products sold

13,194

11,122

90,515

86,663

Depreciation

26,442

27,271

105,449

113,682

Amortization

663

3,597

2,658

14,393

Stock-based compensation

50,771

5,538

140,038

27,034

Loss on disposal of assets

1,679

1,620

5,860

8,579

Gain on sale of investee

—

—

(10,031)

—

Interest expense, net

18,309

18,565

72,589

74,145

Loss on debt extinguishment

—

789

—

789

Other expense, net

616

37

356

1,054

(Loss) income from continuing operations before income taxes and discontinued operations

(52,412)

(22,000)

160,011

203,925

Income tax (benefit) expense

(17,750)

(34,760)

46,522

47,601

(Loss) income from continuing operations before discontinued operations

(34,662)

12,760

113,489

156,324

Income from discontinued operations

545

549

545

549

Net (loss) income

(34,117)

13,309

114,034

156,873

Less: Net loss (income) attributable to noncontrolling interests

—

6

(38,012)

(38,321)

Net (loss) income attributable to Six Flags Entertainment Corporation

$

(34,117)

$

13,315

$

76,022

$

118,552

Weighted-average common shares outstanding:

Weighted-average number of common shares outstanding — basic

93,222

95,070

94,477

96,940

Weighted-average number of common shares outstanding — diluted

93,222

98,661

98,139

100,371

Net (loss) income per average common share outstanding—basic:

(Loss) income from continuing operations

$

(0.38)

$

0.13

$

0.79

$

1.21

Income from discontinued operations

0.01

0.01

0.01

0.01

Net (loss) income

$

(0.37)

$

0.14

$

0.80

$

1.22

Net (loss) income per average common share outstanding—diluted:

(Loss) income from continuing operations

$

(0.38)

$

0.12

$

0.76

$

1.17

Income from discontinued operations

0.01

0.01

0.01

0.01

Net (loss) income

$

(0.37)

$

0.13

$

0.77

$

1.18

Three Months Ended

Year Ended

(Amounts in thousands, except per share data)

December 31, 2014

December 31, 2013

December 31, 2014

December 31, 2013

Net (loss) income

$

$

13,309

$

114,034

$

156,873

Income from discontinued operations

(545)

(549)

(545)

(549)

Income tax (benefit) expense

(17,750)

(34,760)

46,522

47,601

Other expense, net

616

37

356

1,054

Loss on debt extinguishment

—

789

—

789

Interest expense, net

18,309

18,565

72,589

74,145

Loss on disposal of assets

1,679

1,620

5,860

8,579

Gain on sale of investee

—

—

(10,031)

—

Amortization

663

3,597

2,658

14,393

Depreciation

26,442

27,271

105,449

113,682

Stock-based compensation

50,771

5,538

140,038

27,034

Impact of Fresh Start valuation adjustments ⁽²⁾

94

152

369

594

Modified EBITDA ⁽³⁾

46,162

35,569

477,299

444,195

Third party interest in EBITDA of certain operations ⁽⁴⁾

—

(3)

(38,012)

(40,083)

Adjusted EBITDA ⁽³⁾

46,162

35,566

439,287

404,112

Cash paid for interest, net

(6,366)

(6,619)

(66,677)

(51,349)

Capital expenditures, net of property insurance recoveries in 2014

(12,390)

(12,671)

(107,810)

(101,853)

Cash taxes ⁽⁵⁾

(4,144)

(2,321)

(16,772)

(13,768)

Free Cash Flow ⁽⁶⁾

$

23,262

$

13,955

$

248,028

$

237,142

Weighted-average number of common shares outstanding — basic

93,222

95,070

94,477

96,940

Cash Earnings Per Share

$

0.25

$

0.15

$

2.63

$

2.45

SIX FLAGS ENTERTAINMENT CORPORATION

Balance Sheet Data ⁽¹⁾

As of

(Amounts in thousands)

December 31, 2014

December 31, 2013

Cash and cash equivalents (excluding restricted cash)

$

73,884

$

169,310

Total assets

2,534,919

2,607,814

Deferred income

71,598

60,443

Current portion of long-term debt

6,301

6,269

Long-term debt (excluding current portion)

1,389,215

1,394,334

Redeemable noncontrolling interests

437,545

437,569

Total equity

223,895

373,337

Shares outstanding

92,938

94,857

(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 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.