Six Flags Entertainment Corp (SIX) 2005 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to your Six Flags second quarter earnings release conference call.

At this time all participants have been placed on a listen-only mode, and the floor will be open for questions following the presentation.

It is now my pleasure to turn the floor over to your host, to Ms. Erika Levy at KCSA.

Ma'am, the floor is yours.

Thank you.

Good morning.

Last night the Company released its financial and operating results for the second quarter of 2005.

A copy of the earnings release is available on the Company's website at www.sixflags.com under the heading "Investors."

Before I turn the call over to the Company's executives they have asked me to remind you in compliance with SEC Regulation FD, a webcast of this call is being made available to the media and the general public, as well as analysts and investors.

The Company cautions you that comments made during the call will 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.

You may refer to the Company's 2004 Annual Report on Form 10-K, which is also posted on its website for a detailed discussion of these risks.

Because the webcast is open to all constituents, and prior notification has been widely and unselectively disseminated, all contents of the call will be considered fully disclosed.

In accordance with SEC Regulation G, non-GAAP financial measures used in the earnings release and in the Company's oral presentation today are required to be reconciled to the most directly comparable GAAP measure.

Those reconciliations are available to investors in the earnings release and on the Company's website.

References by management in this call to EBITDA mean EBITDA modified, which was formerly known as EBITDA adjusted from consolidated operations, but now includes the results of the four parks that were previously unconsolidated.

Now I'd like to introduce Kieran Burke, Chairman and Chief Executive Officer of Six Flags.

Thank you, Erika.

Good morning.

Thank you for joining us for today's conference call.

We announced our second quarter results yesterday following the close of the markets.

Revenues for the second quarter of 2005 were 8.4% higher than the prior year, and attendance increased 753,000, or 6.6%, reflecting the positive market reaction to our new capital additions and our marketing programs.

We're pleased with the broad based strong performance of our parks during the first half of 2005.

Although there is a great deal of time left in our season, the year-to-date results from our parks have been encouraging.

Year-to-date, virtually all of our parks are pacing ahead of prior-year revenues.

This reflects the successful implementation of our investment program which added new attractions in 13 of our 18 domestic theme parks, three of our water parks and our two international parks, as well as our ongoing guest service initiatives and year two of our advertising campaign.

We enjoyed favorable weather conditions during the early part of the summer and this had a positive impact on attendance.

The new water park in Chicago has generated an especially strong response with attendance up 28% at the combined park.

We are also gratified by the excitement and the attendance generated by enhancements at the Great Adventure park in New Jersey despite the temporary closure of the Kingda Ka coaster which reopened last weekend and should spur a strong balance of the season there.

We are also seeing strong performance in a number of our other markets including Denver, Los Angeles, New England, San Antonio, St. Louis, Washington, Mexico, and our water parks.

Our performance in July continued to reflect solid growth, while attendance growth in the month slowed somewhat from its robust early season pace, per capita revenues rose sharply.

For the month of July, total revenues rose 9.6% from the year-ago period.

As a result, year-to-date through August 1st, total attendance is 6.3% ahead of the prior year, per capita revenues are up 3.3% and revenues are up by 9.8% year-over-year.

Season pass sales through July 31st are up 21.7% year-over-year and group sales are up 2% over last year.

There's a significant amount of our season remaining and we did enjoy a strong October performance last year.

Nonetheless given our performance trends to date, we are clearly poised to deliver strong financial results for the year and see the stage set for further growth.

Guests are coming to the parks, they're enjoying the new attractions and they're spending money at a good pace while they are here.

This combination puts us in an excellent position to deliver solid performance.

It's still early in the year.

We have quite a few weeks left in our season, including the last part of our summer season and our September and October operations.

In fact, only 64% of full-year attendance has been budgeted through August 1st.

Nevertheless, we are making sustained progress toward our goals and remain comfortable with our full-year adjusted EBITDA target of 300 million in 2005 against 258.6 million in 2004.

Now that we're seeing the positive results of our capital addition plan and our other enhancements, we're in the process of finalizing our plans for 2006.

These will include a capital expenditure program totaling approximately $125 million, which will include marketable new rides and attractions in a substantial number of our parks.

We believe this will enable to us build on the success we have experienced this year and deliver further solid performance improvement in 2006 and beyond.

With that I will turn it over to Jim Dannhauser.

Thank you, Kieran.

I'll start by reviewing and providing some greater detail on the quarterly numbers, which we released yesterday.

To remind everyone, the reported results for the second quarter reflect the consolidation of results of Six Flags Over Georgia and White Water Atlanta, the nearby water park, Six Flags Over Texas and Six Flags Marine World in accordance with Financial Interpretation No. 46.

They also reflect the treatment as discontinued operations in 2004 of our European division and our Cleveland park.

With all of those parks' results excluded from revenue, expenses, and EBITDA, and reflected only in the discontinued operations line.

With that having been said, second quarter revenues were $386.5 million, up $30.1 million, or 8.4% from the second quarter last year.

Total attendance was 12.2 million for the quarter, up 6.6% from the prior-year period.

This is especially encouraging given the presence in the second quarter of 2004 of the Easter holiday, which was in the first quarter this year.

In the 2005 quarter, our domestic operations achieved $364.4 million in revenues on attendance of 11.1 million versus 336.9 million in revenues and attendance of 10.4 million in the year-ago period.

International operations, which now include only Mexico and Montreal, generated 22.1 million in revenues as compared to 19.5 million last year on attendance of 1.1 million in the current year and 1 million a year ago.

Per capita, revenues were up 1.8% systemwide.

Cash expenses including operating expenses, SG&A, and cost of goods sold, but excluding depreciation and amortization as well as non-cash compensation, were $10.6 million higher in the 2005 quarter than in the prior year.

This primarily reflects a $2.4 million increase in cost of goods sold resulting from higher in-park sales, and expected operating cost increases related to the new attractions and the continuation of our guest service initiatives.

EBITDA, including 100% of the performance of the partnership parks, was $130.2 million in the 2005 quarter, 19.5 million better than the prior year.

Adjusted EBITDA, excluding the third-party share of the performance of the partnership parks, was 103.5 million as compared to 86.2 million in the 2004 quarter, an increase of 20.1%.

Park-level EBITDA from domestic operations, including the partnership parks, was $134.2 million in the quarter.

Park-level EBITDA from international operations was 5.9 million.

Depreciation and amortization expense was $37.9 million in the 2005 quarter, as compared to 36.8 million last year.

So an increase of $1.1 million.

Net interest expense was $45.8 million for the quarter, as compared to $49.1 million in 2004, reflecting the benefit of the debt pay-downs that were affected in 2004 with the proceeds of our asset sales, and the retirement of the 2009 notes this past February, with the lower rate convertible note proceeds.

Income tax for the quarter was $1.6 million, as compared to a benefit of $2.2 million in the year-ago period.

Net income applicable to common stock was $5.6 million, or $0.06 a share.

The 2005 results benefited from a partial reversal of the tax valuation allowance that had been established in the first quarter.

Without that effect, the income from continuing operations in the 2005 quarter applicable to common stock would have been $2.2 million.

The 2004 period loss applicable to common stock before discontinued operations, and without the impact of a modest loss on debt retirement that year was $5.8 million, or a loss of $0.06 a share.

For the first six months of 2005, revenues were $440.9 million, up $39.7 million or 9.9% from the 2004 period.

Attendance for the six months was up 1.1 million people, or 8.5%, while total revenue per capita increased by 1.3% to $31.82.

Cash expenses were up $19.4 million in the six months, or 5.2%, primarily reflecting planned increases in labor and other expenses to operate the new attractions and to continue our guest service initiatives, as well as expected increases in cost of goods sold as a result of higher sales volume.

As a result, EBITDA for the period was $50.9 million, up from 30.7 million in the 2004 period, and adjusted EBITDA was 29.5 million, up from 12 million.

Loss from continuing operations applicable to common stock for the six months was 178.6 million, as compared to 135.1 million in the year-ago period.

The 2005 period reflects the impact of a $63.8 million tax valuation allowance.

In addition, both periods included a loss on early repurchase of debt.

Absent the tax valuation allowance and the loss on early repurchase of debt, net of the associated tax benefits in both years, the loss from continuing operations in 2005 would have been $102.8 million, and in 2004, would have been 115.6 million.

As to the balance sheet, gross debt at quarter end was 2.15 billion, excluding the 155 million then drawn against our $300 million working capital revolver.

Our revolver balance has since been reduced to $65 million and will be further reduced to an outstanding amount of only $35 million by the end of this week.

We are comfortable that we will fully repay that balance in the next few weeks.

Net debt, excluding the amounts outstanding on our revolver, as of June 30, was 2 billion.

Our blended interest rate excluding revolvers remains at approximately 7.7%.

And finally, we continue to enjoy substantial liquidity and have no near-term debt maturities as we proceed with the implementation of our successful strategies.

Kieran.

Thanks, Jim.

Karlee, we can open the floor to questions.

Thank you.

The floor is now open for questions. [OPERATOR INSTRUCTIONS] Your first question is coming from Kathy Styponias from Prudential.

This is actually Brian Fenski from Kathy's office.

Just two quick questions.

The other expense line came in a little higher than we were expecting.

Can you give us a little more detail on what brought that up this quarter?

And secondly, per capita revenue, you mentioned it was up sharply in July.

Just wondering what that's attributable to.

Thank you.

Brian, it's Jim.

The other expense line was primarily reflects the write-off of the net book value of assets taken out of service permanently.

A primary portion of the increase on a year-over-year basis was the write-off of the net book value of a roller coaster at Six Flags Great Adventure, called the Viper, which is being taken out of service during the course of this year and dismantled.

In terms of per capita revenues, we had expected as we moved into the key July month that the per caps would increase.

With the level of season pass sales that we had achieved, typically we would see significant season pass visitation early in the year as a percentage of total attendance as people come out to the parks to have their passes processed and to enjoy the new attractions.

As we got into July, that overall percentage, that season passes represented as a percentage of total attendance declined, and per capita spending increased accordingly -- which is just what we expected would happen.

I think it also reflects some of the yield on our in-park revenue investments, again, as we get the summertime base of attendance.

Thank you.

Your next question is coming from David Miller from Sanders Morris Harris.

Hi.

Good morning.

Congratulations on a great quarter.

It seems like the indoor water park up in the Chicago area has been a big hit for you guys.

We're hearing about attendance levels there that are just through the roof.

Could you talk about whether or not your '06 capital plan could include additional indoor water parks?

Thanks.

Hey, David.

Just an important correction.

That's not an indoor water park.

It is a full water park that was added to the overall theme park.

So it's a one-gated attraction, but that is a full outdoor water park with no indoor attractions.

That said, we really don't want to comment specifically on our CapEx for 2006 from a competitive point of view.

However, I will say the following.

We will be opening our first indoor water park hotel somewhere between December and January in our Lake George market.

We're very excited about that.

We think the proximity of the park to that indoor water park facility gives it a significant advantage and will not only be a very successful investment as a stand-alone facility, but also drive great increases into that theme park.

So we will have our firsthand experience with that.

Likewise, I'd say one of the very encouraging things in the business for us this summer, which was building on our experience last year, were the additions of water park attractions at certain of our theme parks that have water parks, as well as at some of our free-standing water parks, and some of these investments, which are really very controlled dollars, I think have been part of the successful story this summer.

And so I'm sure you'll see us continue in certain markets to make those types of additions.

Thanks very much.

Your next question is coming from Grant Jordan from Wachovia.

Good morning.

Just a couple of questions.

First, I know it's early, but have you seen any uptick in the New Jersey park since you opened the new ride?

And then second, I think you had an option on the New Orleans park -- water park last year.

Are there any thoughts to exercise that given the solid results this year?

Grant, it's Jim.

The option you're referring to actually relates to our option to buy out the municipal interest in our Six Flags Marine World park in Vallejo.

We own the New Orleans park outright, although we lease the land on which the park is located.

We've extended that option until 2010.

We will continue to evaluate the propriety of exercising that option, but I would not expect to see us utilizing liquidity in the near term to affect that.

It's part of the reason why we extended that option until 2010.

It's a great performing park.

It's had a very solid year.

And I would expect at some point in time before that option expiry we will, in fact, be going forward to exercise it.

It is a relatively fixed price option as people are aware, but I would not expect to see us doing that in 2005 or 2006.

What's the price on that again?

It's $52 million.

Okay.

In terms of New Jersey, it is the reopening of the attraction.

It just happened last week.

There's been some significant excitement and chatter.

The park has performed well.

But it would be premature to speculate on exactly what that is going to mean to the performance of the park for the balance of the season.

We would anticipate that there is some deferred visitation during the course of the period when the ride was not operating, particularly in July, and it's a significant time remaining in that park's operation.

It stays in seven-day-a-week operation through Labor Day.

So we're very optimistic that we'll see a good pick up, it's just too early to tell.

Great.

Thanks.

Your next question is coming from Gary McDaniel from Standard & Poor's.

Hi.

Good quarter, guys.

I wonder if we could get some details on the valuation allowance.

What changed over the course of the past three months to charge it to reverse a portion of that?

Gary, it's just the fact that we're in a seasonal business, and so in the first quarter we are generating a significant loss, which creates additional deferred tax asset which we take a valuation allowance against.

In the second quarter, since we are actually profitable, we then have to look to assess the valuation allowance on a six-month basis.

Since the loss for six months is less than the loss for the first quarter, we reverse in the second quarter a portion of the valuation allowance taken in the first.

The same thing will happen in the third quarter when we will have a further reversal of that valuation allowance.

It just reflects the fact that, given the seasonal nature of our business, we run at a significant loss in the first quarter and we are profitable in the second and third.

So that's something I should expect to happen every year then.

Correct.

Okay.

Can you give any added color on July, why the bounce-up?

I guess we just talked about why the bounce-up in per capita.

So let me just move ahead here.

What is the season pass attendance as a percent of total attendance?

The season pass attendance as a percentage was up slightly at the end of June.

It was about roughly 29.5 to 30% of the aggregate attendance systemwide.

It's come down a little bit during the course of July.

We've not seen a change in utilization patterns, which is a good sign for us, and I would expect to see on a full-year basis that season pass attendance will be somewhere 28 to 29% of the total attendance.

I think it's fair to say that in addition to yield on some of our in-park investments, there is also part of our pricing strategy this year was to take certain price increases at the gate and we're seeing those strategies working well so far.

Including price increases on the season passes.

Our average price per pass is up by about 3.5%.

Right.

Okay.

Just a couple more things.

If we could maybe talk a little bit about park liable [ph] operations.

I know you guys are kind of hesitant to do that.

But, you don't have to kind of name names, but how wide is the differential between your best performing park and the worst performing park?

Is there a park that's a bit up, say, 35% in revenue and one that's down 5%?

Or is the disparity a little closer than that?

A, the disparity is closer than that.

I think it's important to recognize the breadth of the performance improvement.

Through August 1st at the domestic theme parks, our revenues are up year-over-year by 9.1%, at the water parks they're up by 11%, at the international parks they're up by 21%.

So it is really a broad based performance improvement, very good performance in Chicago, obviously, in reaction to the water park as well as in Mexico, but similarly strong performance in New England and in other markets.

So the band is not nearly as wide as you think, and we had just a very solid system-wide growth year-over-year in attendance and revenues.

Which is very encouraging, because in addition to some of the larger investments that we made, particularly in New Jersey and Chicago, we're really seeing the fruits of a number of other investments of varying size, but very controlled dollars, and it’s pretty exciting for us as we continue our planning for 2006 and beyond.

So it's very broad-based, very encouraging.

Okay.

You were kind enough to break out Chicago's good performance in the quarter.

I wonder if you could also break out what Great Adventure's attendance growth might have been like in the quarter or year-to-date.

Sure.

The New Jersey park had an attendance growth of approximately 240,000 people in the quarter.

Okay.

And what percentage would that be?

That's about 24% year-over-year.

Okay, that's pretty good, with Kingda Ka being down, it's encouraging that it's still so high.

Speaking of Kingda Ka, do you have any performance guarantees from Itanium [ph] or any insurance policy that would insulate you any lost revenue, although it sounds like attendance has been pretty healthy anyway.

I think that it's fair to say that we work very closely with the manufacturer to resolve the issues and get the ride up and running, so we're very comfortable with their performance and our kind of partnership in getting the ride going.

We do have, obviously, insurance policies on business interruption and the like, and we may look at those, but I'm not expecting there’s going to be any material contribution from those.

I'm more focused on, obviously, with the ride back up and a lot of season to go there, recouping some of the deferred visitation.

Okay.

Thanks, gentlemen.

Thank you.

Thank you. [OPERATOR INSTRUCTIONS] Your next question is coming from C Rhine (ph) from Boone Capital.

Good morning, gentlemen.

Just expanding upon the previous question, going into the operating season, I believe you were looking for a 2.25% increase in system-wide attendance absent the Chicago and New Jersey parks.

Where did that come out through August 1st?

Second, if you can comment, what was the run rate of attendance growth at the New Jersey park prior to Kingda Ka's shut down?

Well, in terms of the attendance growth, and I'll take it through August 1st, as I said, we continue to see very strong attendance performance.

There's no question that a good bit of that performance growth came from New Jersey and Chicago, but it continued to be very broad-based in a substantial number of our parks.

I can calculate for you momentarily what that growth was without Chicago or New Jersey, but it was well ahead of our expectations for the system as a whole.

Fair enough.

And maybe while you're calculating that number, if I can just ask my last question, which is in regards to Lake George being your first foray into the indoor water park arena, can you comment on your expected returns on capital there or what's the size of that specific investment?

Let me answer your first question.

The attendance at ex-New Jersey and Chicago for the period through August 1st was 4.2%.

Fantastic.

In terms of the indoor water park project in Lake George, we, as many know what we did was contribute a restaurant and land to a joint venture which is building that hotel.

We own 41% of the venture.

We will be the managers of the hotel, and we will also expect to pick up significant incremental visit to the theme park since that indoor water park hotel is located directly across the street.

The implied value of our contribution to the LLC was approximately $5 million.

We would expect to be generating a very substantial return on that investment and a combination of those things I described, well exceeding 20%.

Sounds like a fruitful investment.

I appreciate the time, guys.

I think it's a very good utilization of assets that will give us incremental cash flow at very low cost.

Okay.

I'll turn it over.

Thank you.

Your next question is coming from Scott Wallen from PCW.

Hey, guys.

Just a really quick question.

At what level of increased attendance do you expect to incur higher fixed costs?

Well, at this point in time, our costs are consistent with what we had expected them to be for this year.

There are some increases in variable costs, including particularly cost of goods sold, which is just reflective of higher in-park revenues.

I don't anticipate that we would see any unexpected increases in our fixed costs for the balance of this season.

Okay.

Thanks.

Your next question is coming from David Marsh from Friedman, Billings, Ramsey.

Hello, sir, your line is live.

You may ask your question.

Sorry about that.

Good quarter, guys.

Thanks, David.

Could you give us an update on real-estate activity, and in particular, any progress you may have made with regard to finding a partner at -- in New Jersey to develop some hospitality assets there?

Well, we continue to look at selected opportunities to monetize some of our real estate, but as I've indicated on a number of occasions, we don't expect that that is going to be something which will yield incredible amounts over the intermediate term, but we will have opportunities in D.C. and other markets, as we did in Chicago last year, which we would expect would generate $10 to $15 million periodically.

In terms of New Jersey, we are exploring and planning for the introduction of hospitality assets.

Those would not come on line until 2007 at the earliest.

We will explore, as we proceed, the appropriate way to be financing any such development, whether it be on our balance sheet or in partnership with a strategic investor or otherwise, but it would be premature to comment on that at this time.

Okay.

And with regard to your per caps, Jim, I know that in San Fran with some of the ancillary attractions you've developed with the marine life, you're charging a pretty healthy price for that.

Are those included in your per cap numbers?

To be clear, at San Francisco, we didn't develop all of those attractions.

Many of them were there when we took the park over in 1997.

That park is not priced dramatically differently from our other major theme parks, and clearly people have access to those attractions when they pay their front gate price.

We do have swim with dolphin experiences, which do add to incremental per cap.

Similarly we have an opportunity in some of the areas for people to feed the animals, which is another element of in-park spends but all of that is captured inside of our per caps.

Then it would be included.

It might actually make that a little bit higher per cap generally speaking then.

A little bit higher, that's correct.

And finally, speaking kind of broadly, in terms of sort of like the line hopping technology and so forth, could you give us an update in terms of what you're seeing out there in the market and the cost of it, if the cost is coming down on anything that would facilitate sort of the line passing and so forth?

We -- we have a variety of systems that we use for fast pass, or fast lane, which is what I think you're referring to, where for premium customers can get either a designated time to come back for an attraction or the ability to use a different entrance to an attraction.

There are different programs out there.

We're pretty comfortable with what we use.

There aren't any significant changes or anything revolutionary going on.

It's something that we need to control so that we balance not offending the other guests that are there, but it is something that we do effectively in a number of parks.

Thanks guys.

Thank you.

[OPERATOR INSTRUCTIONS] Your next question is coming from Dean Gianoukos from J.P. Morgan.

This is actually Rami for Dean.

Just two quick questions.

One, could you quantify the asset retirement, how much that was in the other expense line?

And also, you mentioned that '06 your capital investment is going to be roughly 125 million.

Is that sort of the long-term strategy now to sustain a level somewhere around that range?

Thanks.

As far as long-term expectations on CapEx, the number next year which we're finalizing also includes some of the final obligations that we have in connection with our purchase of our Montreal park.

So actually the long-term levels for the portfolio of assets that we have today, not counting perhaps some of the hospitality opportunities we have in certain markets, would probably be more like 100 to 110 million, as a run rate.

But, as we said previously, our level this year and our level next year and maybe on into '07, were really intended to recover from the difficult three-year period we're in, and really a three-pronged attack, not only the investment in marketable attractions, as well as continued investment in in-park opportunities and infrastructure, but also obviously a strong focus on guest service which is ongoing and what we think has been a very creative marketing campaign.

So those are really the three prongs of what we see as the reasons for this year's success, and which we think we can build on in '06 and beyond.

Out of the $8.2 million in the other income expense line, the vast majority of that is comprised of equipment, rides taken out of service, including the New Jersey coaster, which I mentioned, including various attractions at Chicago, which were removed in connection with building the water park out of the $8.2 million.

There were some other miscellaneous items that hit that line but it's at least $7 million which represents the write-off, which is a non-cash item of the net book value of assets taken out of service.

Thank you.

Thank you.

Your next question is coming from Ron Silverton from J&B Capital.

Good morning, gentlemen.

Congratulations on the quarter.

A couple quick questions for you.

First, I understood that there was, outside of the New Jersey and Chicago markets, a 4.2% attendance growth, I guess through August 1.

Was that right?

That's correct.

Now, what percentage roughly do those two markets -- are those two markets of the revenue and EBITDA lines?

As we've said before, it will vary year-to-year.

They are the two of our largest parks, two out of the three.

New Jersey and Chicago each represent, depending upon the year, from 12 to 14% of our operating results.

All right.

So call it about a quarter?

Is that about right?

That's about right.

Depending upon the year, it could be a little bit higher, but it's in the ballpark.

So if 75% of your parks only saw 4.2% attendance growth and to hit your numbers for the year, at least in terms of top line, you're talking about 8.5% -- I guess that's a blend of -- talking about 8.5% attendance growth, right, for the year?

No, it's 8.5% revenue growth.

Okay.

So that's a mix of both attendance and per capita?

Correct.

And as we said at the beginning of the year, the attendance growth that we were looking for was 4.75% systemwide.

So the two big engines, which had the largest part of the capital, take them out of the mix and we're at 4.2%.

So we're obviously in very good shape from our full-year target perspective.

That's -- looks pretty darn solid.

Second question, just relates to understanding the timing of the distributions to your joint venture partners.

Obviously, when you put out your EBITDA you've got the adjusted EBITDA and the modified EBITDA.

That's not a cash number.

Right.

Right.

What we're backing out there is the third-party share of the operations.

Understood.

And so what I'm trying to understand is, that's obviously a non-cash item, although on the other hand, there are cash payments that are made even in, for example, as recently as last quarter which is obviously a negative cash flow quarter for you.

Correct.

How should we -- how does that normalize itself?

How is that lag calculated, or how should we think about that?

There are two different arrangements.

One is in Marine World, where there are distributions made throughout the year in terms of the payments that have to be made on the municipal bonds.

That's why in the first six months of the year it was just under $4 million of distributions, which will show up in the cash flow statement.

That's all Marine World.

The cash distributions made to the limited partners in Georgia and Texas are divided semiannually, July and November.

So from a Company cash flow point of view, those are actually pretty well timed because they're coming at a point when we are significantly positive cash flow.

Any thoughts about adding a water park down in San Antonio for Fiesta?

We have one.

Fiesta Texas has a water park.

It has a very significant water park inside the park, which has done extremely well for us.

It's all part of this combined gate.

Got it.

My bad.

Great, thank you very much.

There are no other questions.

I would like to turn the floor back over to management for any closing remarks.

Thank you, Karlee.

Again, appreciate everyone's attendance on the call.

I would reiterate that we're very pleased with our performance year-to-date.

We’re obviously very focused on completing the season and continuing to work it hard and then coming back around and building on our results this year in '06.

So we'll be looking forward to reporting on you over the next several weeks.

Thank you.

Thank you, ladies and gentlemen.

This does conclude today's teleconference.

You may disconnect your lines at this time and have a wonderful day.