EX-99.2 4 si7980169-ex99_2.txt RECONCILIATION OF CERTAIN FINANCIAL MEASURES EXHIBIT 99.2 The following table sets forth a reconciliation of net income (loss) to EBITDA (Modified) and Adjusted EBITDA for the periods shown (in thousands): Twelve Months Ended December 31, -------------------------- 2006 2005 ----------- ---------- Net loss $ (305,618) $ (110,938) Cumulative effect of a change in accounting principle 1,038 - Discontinued operations 97,605 2,073 Income tax expense 4,318 3,705 Other expense 11,560 10,877 Early repurchase of debt - 19,303 Equity in operations of partnerships 948 - Minority interest in earnings 40,223 39,794 Interest expense (net) 199,991 183,547 Loss on fixed assets 27,057 13,906 Amortization 879 880 Depreciation 131,416 126,778 Stock-based compensation 15,728 2,794 ---------- ---------- EBITDA (Modified) 225,145 292,719 Management Change Costs 13,885 12,605 ---------- ---------- EBITDA (Modified) before Management Change Costs 239,030 305,324 Third party interest in EBITDA of certain parks (3) (44,352) (44,674) ---------- ---------- Adjusted EBITDA before Management Change Costs $194,678 $ 260,650 ========== ========== NOTES ----- (1) Revenues and expenses of international operations are converted into U.S. dollars on a current basis as provided by U.S. generally accepted accounting principles ("GAAP"). (2) EBITDA (Modified), a non-GAAP measure, is defined as net income (loss) before discontinued operations, income tax expense (benefit), other expense, early repurchase of debt (formerly an extraordinary loss), minority interest in earnings (losses), interest expense (net), amortization, depreciation, stock-based compensation, and gain (loss) on disposal of assets. Adjusted EBITDA, also a non-GAAP measure, is defined as EBITDA (Modified) minus interests of third parties in EBITDA of the four parks plus our interest in one hotel, that are less than wholly owned. The company believes that EBITDA (Modified) and Adjusted EBITDA (collectively, "EBITDA- Based Measures") provide 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 the EBITDA-Based Measures are used by many investors, equity analysts and rating agencies as a measure of performance. In addition, Adjusted EBITDA is approximately equal to "Consolidated Cash Flow" as defined in the indentures relating to the Company's senior notes. Neither of the EBITDA-Based Measures is defined by GAAP and neither should 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. EBITDA (Modified) and Adjusted EBITDA as defined in this release may differ from similarly titled measures presented by other companies. (3) Represents interest of third parties in EBITDA of Six Flags Over Georgia, Six Flags Over Texas, Six Flags White Water Atlanta, and Six Flags Discovery Kingdom (formerly, Marine World), plus the Company's interest in EBITDA of Six Flags Great Escape Lodge & Indoor Waterpark.