GRAND PRAIRIE, Texas — Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company and the largest operator of waterparks in North America, today announced that certain of the company’s revolving credit lenders agreed to provide an incremental $131 million of revolving credit commitments to its senior secured revolving credit facility, increasing the facility from $350 million to $481 million.¹

“The increase in our revolving credit facility, combined with actions we have taken to reduce operating expenses and capital expenditures, provides us with significant runway to operate in this uncertain environment,” said Mike Spanos, President and CEO. “I am extremely proud of our team members’ commitment to successfully navigate through this challenging period. We are confident that our resilient team and the underlying strength of our business will enable us to emerge from this crisis even stronger, and we remain committed to driving long-term value for our shareholders. Once we reopen our parks, we will redouble our efforts to profitably grow our base business and pay down debt.”

As previously announced, the company suspended operations of its North American parks beginning March 13, 2020 due to the spread of COVID-19. The company expects to keep its parks closed until at least mid-May and to reopen as soon as possible thereafter.

Preliminary First Quarter Financial Results
The company expects total revenue in the first quarter of 2020 to be $25-$30 million lower than the same period in the prior year, with $9 million of the decline associated with the company’s international agreements. Prior to the park closures, the company’s revenue from its North American theme park operations was higher than the prior year period, primarily driven by higher attendance and higher guest spending per capita. A significant portion of the revenue decline will be offset by cost saving measures the company implemented after the suspension of park operations. Prior to the park closures on March 13, the company paid $21 million in dividends and repurchased $51 million of its 4.875% notes due 2024. The company also invested $53 million in capital expenditures in the first quarter.

COVID-19 Response
The safety and well-being of its guests and team members is the company’s highest priority. The company is also focused on managing the health of the business to ensure it can provide the best guest experience when its parks are able to reopen.

Since closing its parks in March, the company has taken the following actions to reduce operating expenses:

• Eliminated nearly all of its seasonal labor costs, and positioned itself to maintain this low level until its parks reopen.
• Announced a 25 percent salary reduction for all executives and salaried employees and a 25 percent reduction in scheduled hours for all full-time hourly employees to 30 hours per week, subject to federal and state minimum requirements.
• Suspended all advertising and marketing costs.
• Intends to eliminate at least $30-40 million of additional non-labor operating costs in 2020, including the increased investments the company announced in its fourth quarter 2019 earnings release to improve the guest experiences.

In addition, the company’s board of directors has agreed that no cash retainer fees will be paid in the second quarter of 2020 to any director for service on the Board or any committee of the Board.

To enhance its liquidity, the company is taking proactive steps to address its capital spending for calendar year 2020, including deferring or eliminating at least $40-50 million of discretionary capital projects planned for 2020. In addition, as part of the revolving credit facility increase, the company has agreed to suspend the payment of dividends and the repurchase of its common stock until the earlier of December 31, 2021, or such time as the company terminates the incremental $131 million of the new revolving credit facility commitments.

The company is working with its members and season pass holders to extend their usage privileges to compensate for any lost days and is offering higher-tiered benefits to members in return for maintaining their current payment plans.

Liquidity Update

As of March 31, 2020, the company had cash on hand of $23 million and, including the revolving credit facility increase, net of $21 million of outstanding letters of credit, had $420 million available under its revolving credit facility. The company expects to have ample cushion under its debt covenants until at least the fourth quarter of 2020, even if the parks were to remain closed through September. The company has no debt maturities until 2024.

At this time, the company believes it has sufficient liquidity to meet its cash obligations until the opening of the 2021 operating season. The company estimates that its net cash outflow during the time its operations are fully suspended will be, on average, $30-$35 million per month.²

2020 Guidance and Investor Day

In light of the uncertain operating environment, the company has withdrawn its previously provided 2020 Adjusted EBITDA³ guidance. For the same reason, the company will not hold its previously scheduled investor day on May 28, 2020, and will reschedule it to a later date.

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