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Executives

Nancy Krejsa - Senior Vice President, Investor Relations and Corporate Communications

Jim Reid-Anderson - Chairman, President and CEO

John Duffey - Chief Financial Officer

Analysts

Ian Corydon – B. Riley & Company

Ian Zaffino - Oppenheimer

Scott Hamann - KeyBanc Capital Markets

Todd Miranowski - Silver Point Capital

Jared Solomon - Silver Point

Michael Needleman - Preservation Assets

Tim Conder - Wells Fargo

Scott Craven - Halcyon Asset Management

Six Flags Entertainment Corporation (SIX) Q3 2012 Results Earnings Call October 24, 2012 9:00 AM ET

Operator

Good morning ladies and gentlemen. Welcome to the Six Flags Third Quarter 2012 Earnings Conference Call. My name is [Fren] and I will be operator for today’s call. Presently, all participants are in a listen-only mode. (Operator Instructions) Today’s conference is being recorded. If you have any objections, you may disconnect.

Now I will turn the meeting over to Nancy Krejsa, Senior Vice President, Investor Relations and Corporate Communications for Six Flags. Ma’am, you may begin.

Nancy Krejsa

Good morning and welcome to our third quarter call. With me today are Jim Reid-Anderson, Chairman, President and CEO of Six Flag; and John Duffey, our Chief Financial Officer.

We will begin the call with prepared comments and then open the call to your questions. Our comments include forward-looking statements within the meaning 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 such statements, and the company undertakes no obligation to update or revise these statements.

Also during the call, we will share or discuss non-GAAP financial measures. You may find the reconciliations of non-GAAP financial measures to GAAP financial measures along with the detailed discussion of business risks within the company’s annual reports, quarterly reports or other forms filed or furnished to the SEC.

At this time, I will turn the call over to Jim.

Jim Reid-Anderson

Thank you very much, Nancy, and good morning to everyone on the call. I’m really pleased to share that in Q3 we achieved our tenth straight quarter of record financial performance. The level of cash flow that our business generates continued to grow nicely as we delivered $4.13 of cash EPS during the last 12 months, an increase of $0.84 or 26%.

Year-to-date, our revenue was up $51 million or 6%. An adjusted EBITDA was up $37 million or 12%. This management team has now run Six Flags for three seasons. Over this period, we have grown guest satisfaction to an all-time high and significantly improved employee morale and reduced turnover.

We have grown cash EPS from zero pre-bankruptcy to less than $1 upon emergence in early 2010 to over $4 today. The foundation of our success has been excellent execution of our strategy, which includes delighting our guests, innovated news in every park, every year, improving the efficiency of our operations, delivering on our financial goals, building a high-performance organization and integrating safety and quality in all that we do.

As a result of our successful execution, we have grown earnings and cash flow and also set the standard for financial performance in the regional theme park industry. This quarter our LTM modified EBITDA margin reached yet another new company and industry high of 39.1%.

Over the last three years, we have shown that this business can generate high recurring revenues with significant and sustainable cash flow. I’m proud to say that our laser focus on becoming the best regional theme park operator in the world is literally paying dividends to shareholders. I feel very good that we remain solidly on track to deliver our aspirational goal of $500 million of modified EBITDA or almost $6 of cash EPS by 2015.

This growth will come from the same driver season pass driven attendance growth, ticket yield management and tight cost controls. These are the same drivers that have enabled our growth in the past few years and it’s the same strategy. Delivering innovation or news in every park is another stated goal and we will continue to invest 9% of revenue on capital, ensuring we bring news to every park, every year.

You may have noticed that much of our energy is already focused on our 2013 season. Over the past few years, we have significantly improved our communication with guests, allowing us to tailor new attractions to specific guest feedback in each park. I’m extremely excited about the new rides and attractions that we will introduce next spring.

One of our larger initiatives is Full Throttle at Six Flags Magic Mountain. Already, the thrill capital of the world with more coasters than anywhere else on the planet. Magic Mountain is introducing yet another record breaking coaster. It will be the world’s tallest and fastest looping coaster with speeds of more than 70 miles an hour and a record 160-foot loop, racing both inside and a first ever over the outside loop. It truly is going to be unbelievable.

Guests at Six Flags Discovery Kingdom near San Francisco are also in for a real treat with Cirque Dreams Splashtastic. This production will feature our bottlenose dolphins along with aerialist, acrobats and great music. It will be a top-notch show.

Fiesta, Texas is introducing the new iron rattler, another example of Six Flags innovation at its best, a wooden structure with steel rails. We pioneered this innovative technology in 2011 with the Texas Giant at Six Flags over Texas. And we are doing it again all over in San Antonio with the Iron Rattler, which will feature four over bank turns and a completely inverted barrel roll. Faster and taller than ever before, this coaster is going to be a beast that I can’t wait to ride.

I think, you know, that people in the Lone Star State love to go big. The new Texas SkyScreamer at Six Flags over Texas will be the tallest swing ride in the world at an amazing 400 feet, think about that. That’s twice as tall as the Statue of Liberty.

We’re also excited to introduce Boomerang at Six Flags St. Louis. This is a fun roller coaster that pulls guests backwards to the top of a 125-foot lift hill. Then drops the train through loops and corkscrews and then repeats it all over again.

Near Chicago on the heels of a phenomenal success of X Flight, a huge wing coaster, we are bringing a world-class night guest show called igNIGHT, the grand finale to Six Flags great America next year. This amazing laser and light production features state-of-the-art technology, fireworks, lasers, live dancers and singers. It would be a major production unlike anything we’ve ever produced at Six Flags and the perfect way to cap off a great visit.

At our Six Flags Atlanta properties, we are debuting SkyScreamer, a 24-story tower swing ride and Typhoon Twister, a giant thrill slide that shoots riders into a 67-foot bowl. La Ronde, our park in Montréal is adding a new multimillion dollar interactive water ride called Aqua Twist while our Hurricane Harbor Water Parks at Six Flags, New England and Six Flags, America are adding Bonzai Pipelines, which features six individual water slides and daring drop capsules that our guests simply love.

At Six Flags great adventure, we are making massive changes by uniting the 160-acre theme park with a 350-acre wild safari to create the world’s largest theme park and offer a one-of-a-kind attraction called Safari Off Road Adventure. This is really going to be an amazing experience for our guests, who can ride in rugged, open-air vehicles off road and up close to magnificent animals from six different continents. Guests will really feel like they are on a true African safari.

Also, at Great Adventure, get ready for Big Wave Racer at Hurricane Harbor, another massive water slide with multiple lanes. We’re introducing the Joker, a spinning coaster in Six Flags, Mexico. And in addition, we took one of our most recognizable brands and biggest events, Fright Fests or Festival del Terror in this situation and introduced it this month for the first time ever at Six Flags, Mexico.

Similarly, we’ll introduce another fan favorite, Holiday in The Park, with its millions of lights and holiday spirit in December 2012. Can you just imagine snow in Mexico City? In conjunction with the announcement of these new attractions, we’ve initiated our 2013 marketing program and the initial reaction from our guests is very positive.

We’re building on our award winning Go Big, Go Six Flags marketing campaign. Our season pass penetration strategy is also extremely successful and we will continue to implement this important initiative over the next several years.

2013 season passes went on sale at the end of August and we’re really pleased to have season pass sales trending a double-digit growth rates over prior year. We know that over the course of the season, a season pass holder generates more revenue, more profit and more cash for the company than a single-day visitor and we believe the largest contributors to our future revenue, profit and cash flow growth will come from improved ticket yields and further penetration of season pass sales.

We also recognize that another important element of building shareholder value is an appropriate allocation of capital. In the first nine months of 2012, the company demonstrated its alignment with shareholders by returning nearly $200 million of free cash flow via dividends and share buybacks.

In early October, we received $70 million in cash from a sale of DCP and use the funds to repurchase 1.1 million shares. To-date, the company has repurchased $168 million of shares in 2012, including the $70 million from the DCP proceeds and has $82 million remaining under the currently approved share buyback program.

Given our consistent performance over the past three seasons and our industry low net leverage of only 1.7 times, the board felt it was appropriate to further increase the company’s quarterly dividend by 50% to $0.90 per share. This represents an approximate 6% yield on the current stock price.

I believe that our consistent return of cash to shareholders combined with the strong growth implied by achieving our aspirational targets of $500 million of modified EBITDA by 2015 represents a fantastic total return opportunity for our loyal shareholders.

In summary, it has been an excellent nine months for Six Flags. For a touch more flavor on the financials for the quarter, I’m now going to hand you over to John Duffey. John?

John Duffey

Yeah. Thanks, Jim and good morning to everyone on the call. I’m extremely pleased with our continued success in generating attendance, revenue, profit and cash flow gains year-over-year.

So let’s dissect a numbers a bit. Total revenue in the quarter increased $10 million or 2% as a result of a 3% increase in admissions revenue and a 1% increase in in-park revenue, offset by 1% decline in sponsorship and accommodations revenue.

Admission revenue per capita increased slightly to $23.51 as our solid pricing gains were offset by the strong season pass attendance mix. In-park revenue per capita decreased $0.30 in the quarter to $17.5, also due to a higher mix of season pass guests.

Season pass customers typically spent less per visit than single-day visitors, but as Jim mentioned earlier, they do spend more over the course of the season. Attendance grew 3% in the quarter while we did not have the effect of hurricane Irene this year as we did last year, any benefit was fully offset by the calendar shift I spoke about on the second quarter call.

We estimate that this calendar shift negatively impacted the third quarter by approximately 150,000 guests. In addition, we saw a negative impact due to the timing of the July 4th holiday, which fell on Wednesday. As you can see, financial and operating comparisons in individual quarters are sensitive to weekend days, holidays, and weather. We, therefore, believe that the best way to assess underlying trends in the business is over an entire season or on an LTM basis.

So let’s move on to discuss some year-to-date and LTM performance. Year-to-date revenue is up $51 million or 6%, driven by a 6% or $1.3 million increase in attendance. As Jim discussed, the relatively flat per caps are the result of a deliberate and successful strategy to grow season pass attendance.

We talked before about our intense focus on leveraging our cost structure. Year-to-date, cash operating expenses increased a modest 2.3%. That strong performance continued in the third quarter with cash operating expenses increasing only 1.1%, despite the cost benefit we recognized last year when several of our parks were closed for Hurricane Irene.

The combination of attendance and pricing gains as well as cost leverage improved the modified EBITDA margin by 46 basis points and 182 basis points in the quarter, and year-to-date respectively. LTM modified EBITDA margin now stands at a record 39.1%, up 230 basis points from a year ago.

The sale of our interest in DCP closed on September 28, although the funding did not occur until October 1st. We received $70 million from the sale, and recognized a gain of $67 million in our GAAP financials.

However, please note that the gain is not included in either modified or adjusted EBITDA. We will be able to utilize our tax net operating losses to almost fully sell through the gain from taxes, and the proceeds from the sale were used to repurchase 1.1 million shares.

In addition to the $70 million of cash proceeds already received, there is cash held in escrow related to the sale of DCP that will potentially be released sometime in the next two years. Our maximum future cash benefit from this is $10 million.

With the sale of DCP, we will no longer recognize the EBITDA contributions from that investment. DCP contributed in excess of $10 million of annual adjusted EBITDA for the last two years, and $5.5 million in 2012 through the date of sale. While this will negatively impact our adjusted EBITDA going forward, it will have no impact on modified EBITDA.

So, as you think about quarterly impacts, we recognized $5.4 million in Q4 2011 from DCP earnings that will not recur in the fourth quarter of this year. In 2012, we recognize $1.9 million in Q1, $3.3 million in Q2, and only $0.3 million in Q3 2012, that will not recur in 2013. It should be noted that Q3 2012 EBITDA for DCP was $0.4 million below Q3 2011, as the company incurred costs related to the sale process.

In the first nine months of the year, we generated $264 million of operating cash flow after capital investments. We purchased $98 million of our stock, paid $97 million in dividends, and paid down $3 million of debt related to required amortization. Net debt as of September 30 was $674 million.

Deferred revenue at September 30 was $60 million, up $11 million or 22% from September last year. This increase represents the remaining revenue from the strong 2012 season pass sales as well as an excellent increase in 2013 season pass sales that we saw in September.

I would also like to remind everyone that the calendar shift, I mentioned in our second quarter call is expected to reduce fourth quarter attendance by approximately 150,000 guests. In addition, as you plan for 2013, please keep in mind the $3 million insurance benefit for Hurricane Irene, we received in Q1 2012.

I’d like to briefly comment on our capital structure. The company is in a great position because of our industry low leverage of 1.7 times adjusted EBITDA, and also because 85% of our debt is not due until 2018.

Our recurring revenue base and tight cost management provides a consistent and growing cash flow stream. The strong cash generation combined with our low financial leverage makes me very comfortable with our decision to increase the dividend.

Finally, there has been a significant amount of press recently regarding companies changing their structure to take advantage of favorable tax rules. With more than $1 billion of tax loss carry forwards, we are in a unique position to pay a minimal amount of tax for several years going forward. Nonetheless, we will continue to evaluate options to ensure we retain as much flexibility as possible regarding our tax structure.

With that, I’d like to turn the call back over to Jim.

Jim Reid-Anderson

Thanks very much, John. We are nearly through Fright Fest, our largest events of the year, after which, many of our parks closed for the season. Four of our parks will host holiday in the park to wrap up our calendar year.

I’m really pleased with our progress to date in 2012, and our sights are now primarily focused on delivering a successful 2013, and achieving our 2015 aspirational goal of $500 million of modified EBITDA, which equates to nearly $6 in cash EPS.

Laser focus and successful execution will ensure, we continue to drive strong financial performance, fund all appropriate business investments, and return excess cash to our shareholders by a dividend and share buybacks. Our goal is to continuously delight both our guests and our shareholders.

Fren, at this point, could you please open the call up for any questions?

Question-and-Answer Session

Operator

Of course and thank you. (Operator Instructions) Our first request is from Ian Corydon, B. Riley & Company. Your line is open, sir.

Ian Corydon - B. Riley & Company

Thank you. John, do you have an estimate for how much the 4th of July shift towards the attendance?

John Duffey

You know what, Ian, we are not disclosing that number. But clearly, it’s falling on a Wednesday. As you know, if it’s closer to the weekend, there tends to be a nice pop in attendance over the weekend either before or after. And clearly, I think having it on a Wednesday did impact people, I think adjusting their holiday schedules.

Jim Reid-Anderson

I think in addition, Ian, if you look at various comments that have come out from not just our industry, but ledger industry in general, I think there is a commentary that suggest this occurred in other areas as well.

Ian Corydon - B. Riley & Company

Okay. And regarding the debt covenants and the restrictions on free cash flow to be paid out to shareholders, are you comfortable with where those stand for the next year or two?

John Duffey

Yeah. I think we are comfortable with where those stand over the next year or two.

Ian Corydon - B. Riley & Company

Okay. Last question is just on Holiday in the Park. Is that in the same number of parks, same number of days as it was last year? And if you have -- if you can elaborate anymore on your plans for this year versus, what you did last year?

Jim Reid-Anderson

I think the single biggest change is that we’ve added both Fright Fest and Holiday in the Park in Mexico. So we are increasing the number of parks that have exposure to Holiday in the Park and the single biggest change comes in Mexico. We are very excited not only about Fright Fest, but also about the holiday in the park impact as we build that franchise for the future.

Ian Corydon - B. Riley & Company

Great. Thank you.

Operator

Our next request now, Ian Zaffino, Oppenheimer. Your line is open.

Ian Zaffino - Oppenheimer

Hi. Thanks. On this attendance and just look at the industry, what would you expect for the industry to grow? I mean, you’ve always talked about kind of a 2% to 3% industry growth rate. Even if you adjust for the 150,000 missed guests, you are kind of just growing barely in line with the industry. What kind of value are you basically adding here?

And how should we think about this going forward, particularly that you had -- you had certainly easier comps this year. Again, even if you ignore the 150,000 guests, just kind of help us understand what the business should be doing going forward and how we should think about both volumes and pricing?

Jim Reid-Anderson

Ian, I think, you know very well that we’ve never provided any guidance on attendance growth. So, I think when you think about the way that we assess this, we feel fantastic about where we are. If you look over the last 12 months, our attendance overall has grown almost 8%.

And so what I would say to you, it’s very difficult to take a look at anyone quarter and say from that, okay, there is a trend coming now because this quarter is 3% and that quarter is 5%. I think look at what we’ve done year-to-date and over 12 months. And I think 8% growth in attendance is pretty amazing. And I think you also noted early on in various comments that you had made that the company have been registering 24 million in attendance, drop below that.

And now, on an LTM basis, we are at 25.6 million people and headed north. So, I would say rather than focusing in on anyone quarter, look at the trends in attendance, in revenue, and in profitability. And when you look at that, you will see amazing increases across the board, not just year-to-date but on the LTM, and on a two or three-year basis.

Ian Zaffino - Oppenheimer

All right. Thank you.

Operator

Our next request now, Scott Hamann, KeyBanc Capital Markets. Your line is open, sir.

Scott Hamann - KeyBanc Capital Markets

Yeah. Good morning, everyone. Jim, first I just want to say that I absolutely loved your video on the new rides. And I think you set a new standard for the industry in terms of introducing a new capital.

Jim Reid-Anderson

Thank you, Scott. I appreciate it.

Scott Hamann - KeyBanc Capital Markets

So just a couple of questions here. In terms of season passes, can you give us any additional color on maybe the percentage of season passes as a percentage of your total attendance this year?

Jim Reid-Anderson

I think, Scott, we don’t do that. We tend to do the breakdown on an annual basis, so we will do it on the fourth quarter call. But what I can tell you just so that you do have a little more flavor, because I know you are looking for that, is that we had a fantastic year last year with season pass sales, our growth increased.

This year we spoke about the fact that our season pass growth was exceptional. And as we launched the new 2013 season pass sales, we’ve seen extraordinary interest and growth in the double-digits level. So, we are seeing no letup, in terms of not just interest in the park but actual purchases of season passes.

Scott Hamann - KeyBanc Capital Markets

Okay. And then just in terms of what you are doing for 2013, are you doing any additional promotions, or I know you’ve played around with some installment stuff last year. I mean, what’s kind of driving outside of new rides, potentially some of this, your interest in 2013 passes?

Jim Reid-Anderson

I think there are several things that we’re doing. Obviously, the new ride shows attractions in every single park are key, but you’ve recognize that. So, in terms of incremental value adding efforts, I think there are several things.

First of all, we’ve introduced a gold pass, which allows people to, in essence upgrade and in certain cases get parking in the price.

We’ve also worked on the payment process. So, that we’re offering more flexibility including 12-month payment processes. And I think, if you think about a really difficult economy, which it continues to be offering people the opportunity to be able to pay monthly at a much lower rate is really supercharging our sale. So those are the sort of things we’re doing.

Scott Hamann - KeyBanc Capital Markets

Okay. And then just in terms of deferred revenue that you have at quarter end, some of it’s ‘12, some of it’s ‘13, any color on what percentage is going to be recognized before the end of the year versus what’s for ‘13?

Jim Reid-Anderson

No. We don’t break that out. We’re not going to provide any guidance on that. What I can tell you is ‘12 was great and ‘13 is excellent as well.

Scott Hamann - KeyBanc Capital Markets

Okay. I just…

Jim Reid-Anderson

As I said, double-digit growth for ‘13.

Scott Hamann - KeyBanc Capital Markets

Got it. Okay. So, maybe just one final question on the Project 500 plan. You talk about your comfort level in getting there. Kind of getting another year under your belt, has anything evolved with your thinking around the components of how you’re going to get there, I mean attendance seem to be a bit better this year?

I’m not sure what you’re thinking in terms of pricing, but it seemed to me maybe last year that you had kind of talked about not having more modest attendance assumptions with than getting to that number and a little bit more on the pricing side. And I’m just curious, if anything has changed now maybe a year later.

Jim Reid-Anderson

Scott, I would say that nothing has changed. I know it sounds strange but I really feel like first, the strategy itself is working. Second, we really do believe there continues to be a pricing opportunity, which we have been taking and will continue to take. We’ve not seen any pushback. In fact, I have mentioned before it just completed and when Fright Fest is done, we’ll have the full effect.

But we are seeing value being -- value perception from our guests being at an all time high. So, as we take pricing and our offerings improve, we’re not seeing any pushback at all. So, I would say that the single biggest drivers are really going to be pricing, season pass sales, which I just mentioned we are seeing double-digit gains and obviously a strong focus on making sure that we keep costs under control. That’s what we’ve done and that’s what we will continue to do.

Scott Hamann - KeyBanc Capital Markets

All right. Great. Thanks a lot, guys.

Jim Reid-Anderson

Thank you, Scott.

Operator

Our next question now from Todd Miranowski, Silver Point Capital. Your line is now open.

Todd Miranowski - Silver Point Capital

Hi, there. You guys said in your release, you bought back $1.1 million shares with $70 million of proceeds from dick clark and this is divided, is that right?

John Duffey

That’s correct.

Todd Miranowski - Silver Point Capital

Okay. And it is divided that implies you’ve been paying $0.63, $0.65 roughly per share buyback. And I’m just kind of scratching my head, because dick clark closed on the 28th of September and looking at the stock chart to get to $0.63, $0.65 per share, it looks like you would have a buyback almost all the shares in the past week or two, is that right?

Jim Reid-Anderson

We don’t disclose how and when we buy back shares. But we have bought back exactly what we described in the press release.

Todd Miranowski - Silver Point Capital

Got it. It just seems strange that you’re rushing out to buy shares coming into kind of a soft quarter. But…

Jim Reid-Anderson

We would not describe as a soft quarter, Todd. I think it’s a very strong quarter maintaining a very strong year. And as we look at the company and the potential for the future, we continue to believe the buying back shares on behalf of our shareholders is a fantastic use of the company’s assets.

Todd Miranowski - Silver Point Capital

Fair enough. Do your nine-month EBITDA numbers still include dick clark’s results?

John Duffey

That’s correct. We do.

Todd Miranowski - Silver Point Capital

And should that be pro forma out at this point or …

John Duffey

That’s and basically, when I was talking earlier, I mentioned specifically and it’s included in the press release as well. Specifically what dick clark contributed in the first nine months by quarter. So, as you think about next year, you should adjust that out.

Jim Reid-Anderson

But so Todd, if you look at the press release you can imagine and the script, John described the exact detail. So, you can actually deduct that.

Todd Miranowski - Silver Point Capital

Got it. Okay. Thank you. And then last question is and sort of random one, but part of the recent deal that ended the Chicago teacher’s strike included an increase in the school year by 10 days. And I think your parking outside of Chicago is one of your most profitable. What impact do you think 10 lost days of Chicago school kids would have on your results?

Jim Reid-Anderson

I don’t think it’s going to have very much impact at all. Although, you never know until you actually get there. We have had school calendars moving every single year and every single district. And in general, we’ve seen continued very strong performance. So in fact, this year we had changes in the calendar. And we’re registering, as I said earlier 8% LTM gains in attendance.

Todd Miranowski - Silver Point Capital

Okay. That’s it. Thank you very much.

Jim Reid-Anderson

Thank you.

Operator

(Operator Instructions) My last at this time is from Jared Solomon of Silver Point. And your line is open.

Jared Solomon - Silver Point

Hey, guys. Just curiosity, what’s going to happen to your dividend when you run out of the NOLs in say 2015? Do you think you could get the same level as you just announced?

John Duffey

Yeah. So, I think we have enough cushion between our cash flow that we’re generating today and our dividend amount. And as you think about as we talk about Project 500 that cash flow -- we expect that cash flow to improve significantly over the next several years. So, I think we’ll have plenty of cushion to maintain that dividend going forward, even when we run out of NOLs. But I just…

Jim Reid-Anderson

You’re also speculating that somehow you run out in 2015, which I think is completely incorrect. As John said in his discussion, we’re sitting on over $1 billion write now and we’re on this at the end of 2012. So really I think what you are assuming, if you would suggest that we would use all those NOLs up is that we have really much greater improvements in profitability than even the $500 million level that I’ve described as aspirational. And I think we’d all celebrate levels of profitability higher than that.

Jared Solomon - Silver Point

Great. And how many of those NOLs, that number you gave are federal?

John Duffey

That’s all federal.

Jared Solomon - Silver Point

All federal. Okay. Thank you.

Jim Reid-Anderson

Thanks very much.

John Duffey

But I will tell you in addition to that, we do have state NOLs. But that 1.1 is all federal.

Jared Solomon - Silver Point

All right. Thank you.

Jim Reid-Anderson

Thank you.

Operator

And I do have one more request Michael Needleman, Preservation Assets. Your line is open, sir.

Michael Needleman - Preservation Assets

Good morning, gentlemen. I came on very late, so pardon me. If I can, was the attendance that was reported in the quarter was that where you thought the attendance could come in? It was up three and you faced difficult comps. And I give you kudos for the overall attendance. But was it the number that you thought it would be?

Jim Reid-Anderson

Well, what I would say, Mike, is that we are very happy with the attendance growth. But we don’t ever provide guidance. And so I’m not going to say, this was exactly where we thought it would be. We are very happy. And as I said, LTM, we are looking at 8% attendance growth over the last 12 months. So, its very strong overall and I think we are very well-positioned for not just 2013, but going forward as well.

Michael Needleman - Preservation Assets

And I appreciate that. Let me ask it just a different way. Because I did hear you answer on the 4th of July. If the 4th of July and it’s all ifs, but does the 4th of July on the weekend and I thought I heard you say that it’s close to a weekend, it does drive additional attendance, is that correct? Did I hear you say that?

John Duffey

Yeah. That’s correct.

Michael Needleman - Preservation Assets

Okay. All right. And one last question. Just in terms of what you’re seeing on spend on price and I didn’t catch this, so pardon me. How much of it was price or ticket price versus just overall attendance growth?

Jim Reid-Anderson

Yeah. Mike, we don’t break out price versus attendance. But you can see from the numbers, we’ve got -- in essence we’ve got both. Because we’ve actually taken pricing up and we’ve increased attendance and we’ve increased season pass based attendance. So, really the mix that we’ve seen very, very strong overall and it’s put us in a position where we’ve increased not just the attendance, but also the revenue and our profitability.

Michael Needleman - Preservation Assets

Okay. Thanks.

John Duffey

So, as we look at attendance and per caps, particularly admission per caps, we are seeing very strong increase in admission per caps in our one-day tickets, our pre-bookings. So it really is a mix that’s bringing that per cap -- overall per cap out.

Operator

Thank you. Our next request now is from Tim Conder of Wells Fargo. Your line is open.

Tim Conder - Wells Fargo

Thank you. It is the strategy of focusing on an overall yield versus attendance has clearly been successful for you in the industry. Jim, just maybe on the question of attendance and maybe what could have been. Clearly, July and very early August you’ve had very, very warm weather, especially in eastern two thirds of the country.

And then you had some of the easier comps, as you’ve already talked about from the storms that hit the East Coast last year. So, is there anyway that you think that you can quantify or talk about in your view subjectively how much was impacted from the heat in the eastern two thirds of the country this year and maybe does that set you up for somewhat of an easier comparison looking into 2013?

Jim Reid-Anderson

Tim, I’m not going to do that because, as I think you said and others have said, trying to speculate what would have been, it’s just not wise. I think that the right way to look at this is the way we’ve described it before, that you will get weather that impacts one month, one quarter. But on average, by the time you get to the end of the year, it’s all averaged out. And I think that’s the way we assess it.

So, if you look at our year-to-date performance or you look at our LTM performance, which is probably an even better measure. You’re looking at 7.7%, LTM attendance growth, which is very, very strong much stronger than the overall industry growth. And we feel very good as we look forward as to the potential, not just for attendance but also for revenue and profit growth.

So, we’re looking at it from a total yield, as you described perspective. And with the season pass interest and double-digit growth that we’re seeing, we don’t see any reason why we can’t continue to see good success going forward.

Tim Conder - Wells Fargo

Okay. Great. Thank you.

Operator

Thank you. Our next request now, Scott Craven, Halcyon Asset Management. Your line is open.

Scott Craven - Halcyon Asset Management

Hey, guys.

Jim Reid-Anderson

Hi.

Scott Craven - Halcyon Asset Management

Hi. You alluded in your commentary that you would look at all options for shareholder, is the REIT restructure something that you guys would ever consider?

John Duffey

It’s something that we have looked at and we’ll continue to evaluate that and see if it makes sense. But as I mentioned, in terms of the timing with the size of the NOLs that we have, we’re years away from I think entertaining any type of option like that.

Scott Craven - Halcyon Asset Management

Great. Thank you.

Operator

And my last request at this time Jared Solomon, Silver Point. Your line is open.

Jared Solomon - Silver Point

Hi, guys. Just a quick question. I think I missed it. By which quarter did you say there is the impact from the hurricane?

John Duffey

That was in the third quarter of last year.

Jared Solomon - Silver Point

Okay.

John Duffey

So, as you compare this quarter to last year. All right.

Jared Solomon - Silver Point

On the insurance?

John Duffey

I’m sorry. On the insurance, the insurance amount that was collected on Hurricane Irene was in the first quarter of 2012. So, I raise that just as you think about next year and doing your miles for next year just make sure you consider that there was $3 million in the first quarter of 2012.

Jared Solomon - Silver Point

Right. And is that in the adjusted EBITDA number?

John Duffey

That is in the adjusted EBITDA number, that’s correct.

Jared Solomon - Silver Point

All right. So, we would back that out as well. Okay. Thank you.

Operator

Thank you very much for your questions. As I have no further in queue, I would like to turn it back to management for any closing remarks.

Jim Reid-Anderson

Thank you very much, Fren. I appreciate it. I really do appreciate you joining our call today and for your ongoing support of our management team and the company. Clearly, we all have a strong belief in the future of the company and we hope you do too. Don’t forget to get one of our parks to -- go to one of our parks to check our Fright Fest and holiday in the park in the coming months. Take care.

Operator

Conference is now concluded. Again, thank you for your participation. All lines may please disconnect.

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