Guest Spending Up 7 Percent While Active Pass Base Grows 25 Percent in First Quarter

SIX FLAGS ENTERTAINMENT CORPORATION

Statement of Operations Data ⁽¹⁾

Three Months Ended

(Amounts in thousands, except per share data)

March 31, 2014

March 31, 2013

Theme park admissions

$

34,710

$

41,532

Theme park food, merchandise and other

25,967

32,832

Sponsorship, licensing and other fees

8,178

7,893

Accommodations revenue

4,863

5,264

Total revenue

73,718

87,521

Operating expenses (excluding depreciation and amortization shown separately below)

81,628

84,219

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

28,975

32,601

Costs of products sold

6,243

7,925

Depreciation

27,029

31,547

Amortization

665

3,599

Stock-based compensation

5,359

7,097

Loss on disposal of assets

1,792

1,070

Interest expense, net

18,029

18,397

Other income, net

(190)

(422)

Loss before income taxes

(95,812)

(98,512)

Income tax benefit

(34,611)

(36,399)

Net loss

(61,201)

(62,113)

Less: Net income attributable to noncontrolling interests

—

(414)

Net loss attributable to Six Flags Entertainment Corporation

$

(61,201)

$

(62,527)

Net loss per average common share outstanding — basic and diluted

$

(0.64)

$

(0.61)

Weighted-average number of common shares outstanding — basic and diluted

94,958

101,928

SIX FLAGS ENTERTAINMENT CORPORATION

The following table sets forth a reconciliation of net loss to Adjusted EBITDA and Free Cash Flow for the three months ended March 31, 2014 and March 31, 2013:

Three Months Ended

(Amounts in thousands)

March 31, 2014

March 31, 2013

Net loss

$

(61,201)

$

(62,113)

Income tax benefit

(34,611)

(36,399)

Other income, net

(190)

(422)

Interest expense, net

18,029

18,397

Loss on disposal of assets

1,792

1,070

Amortization

665

3,599

Depreciation

27,029

31,547

Stock-based compensation

5,359

7,097

Impact of Fresh Start valuation adjustments ⁽²⁾

92

145

Modified EBITDA ⁽³⁾

(43,036)

(37,079)

Third party interest in EBITDA of certain operations ⁽⁴⁾

—

(1,026)

Adjusted EBITDA ⁽³⁾

(43,036)

(38,105)

Cash paid for interest, net

(27,095)

(6,499)

Capital expenditures, net of property insurance recoveries in 2014

(42,120)

(36,600)

Cash taxes ⁽⁵⁾

(4,430)

(5,408)

Free Cash Flow ⁽⁶⁾

$

(116,681)

$

(86,612)

Weighted-average number of common shares outstanding — basic

94,958

101,928

Cash Loss Per Share

$

(1.23)

$

(0.85)

SIX FLAGS ENTERTAINMENT CORPORATION

The following table sets forth a reconciliation of net income to Adjusted EBITDA and Free Cash Flow for the twelve months ended March 31, 2014 and March 31, 2013:

Last Twelve Months Ended

(Amounts in thousands)

March 31, 2014

Net income

$

157,785

$

455,969

Income from discontinued operations

(549)

(7,308)

Income tax expense (benefit)

49,389

(216,797)

Restructure recovery

—

(47)

Reorganization items, net

—

1,434

Other expense, net

1,286

1,151

Loss on debt extinguishment

789

587

Equity in loss of investee

—

1,902

Interest expense, net

73,777

53,658

Loss on disposal of assets

9,301

7,532

Gain on sale of investee

—

(67,319)

Amortization

11,459

14,745

Depreciation

109,164

126,951

Stock-based compensation

25,296

52,963

Impact of Fresh Start valuation adjustments ⁽²⁾

541

896

Modified EBITDA ⁽³⁾

438,238

426,317

Third party interest in EBITDA of certain operations ⁽⁴⁾

(39,057)

(36,159)

Adjusted EBITDA ⁽³⁾

399,181

390,158

Cash paid for interest, net

(71,945)

(42,388)

Capital expenditures, net of property insurance recoveries in 2014

(107,373)

(99,284)

Cash taxes ⁽⁵⁾

(12,790)

(10,210)

Free Cash Flow ⁽⁶⁾

$

207,073

$

238,276

Weighted-average number of common shares outstanding — basic

95,217

105,892

Cash Earnings Per Share

$

2.17

$

2.25

SIX FLAGS ENTERTAINMENT CORPORATION

Balance Sheet Data ⁽¹⁾

As of

(Amounts in thousands)

March 31, 2014

December 31, 2013

Cash and cash equivalents (excluding restricted cash)

$

22,385

$

169,310

Total assets

2,535,661

2,607,814

Deferred income

85,125

60,443

Current portion of long-term debt

6,277

6,269

Long-term debt (excluding current portion)

1,393,047

1,394,334

Redeemable noncontrolling interests

437,569

437,569

Total equity

273,168

373,337

Shares outstanding

95,114

94,857

(1)

Revenues and expenses of international operations are converted into U.S. dollars on an average basis as provided by GAAP. Amounts have been recast to reflect the June 2013 stock split and reflect corrected valuation allowance amounts.

(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 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.