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Six Flags Entertainment Corp SIX
Q2 2013 Earnings Call Transcript

Transcript Call Date 07/22/2013

Operator: Good morning, ladies and gentlemen. Welcome to the Six Flags Second Quarter 2013 Earnings Conference Call. My name is Lindsey, and I will be your operator for today's call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session.

I will now turn the call over to Nancy Krejsa, Senior Vice President, Investor Relations and Corporate Communications for Six Flags.

Nancy A. Krejsa - SVP, IR and Corporate Communications: Good morning. Thank you for joining our call. With me today are Jim Reid-Anderson, Chairman, President and CEO of Six Flags and John Duffey, our Chief Financial Officer. We're going to begin our call today with prepared comments and then we’ll open our call to your questions.

Our comments will include forward-looking statements within the meanings of the Federal Securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in our statements. The Company undertakes no obligation to update or revise these statements. In addition, on the call we will discuss non-GAAP financial measures. Investors can find both the detailed discussion of business risks and reconciliations of non-GAAP financial measures to GAAP financial measures in the Company's annual reports, quarterly reports or other forms filed or furnished with the SEC.

At this time, I’ll turn the call over to Jim for his prepared remarks.

Jim Reid-Anderson - Chairman, President and CEO: Thank you, Nancy. Good morning everyone on the call. We joined this call today with heavy heart. As you may already have heard, one of our guests died last Friday in an accident at our park in Arlington, Texas. We’re actually hosting the call today from the park, and we’ve been here throughout the weekend to support our team as we worked through this tragic event. Utilizing both internal and external experts, we’re investigating the cause of the accident and until that process is complete, we have no additional information to share with you about the incident.

The ride has been closed, and you can rest assured that it will remain closed until we are certain it is safe to ride. Our deepest sympathy goes out to the family, and we are providing them support as best as we can. We ask that you keep the guest family in your prayers.

Let me now turn to reporting our financial results. I’m extremely proud of our performance, both in the quarter and year-to-date, especially given the challenging weather conditions that we faced in May and June. Through the first six months of 2013, we delivered record financial results with 1% attendance growth, 3% revenue growth and 15% adjusted EBITDA growth on a comparable basis.

In addition, on an LTM basis, the Company generated $2.29 of cash earnings per share, and we achieved a new industry high modified EBITDA margin of 39.6%. Obviously, we would've preferred to deliver an even better Q2 performance. However, we had the timing impact of Easter/Spring Break attendance shifting into Q1 and we also experienced much cooler temperatures than average, a far higher precipitation in May and June than we had last year. This primarily affected our Eastern and Midwestern parks on our busiest weekend days. I can definitely state that for both those parks, we saw the worst Q2 weather in over a decade.

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