Austin
08-05-2009, 05:51 PM
Six Flags released their Q2 results this week and posted a net loss of $98.6 million. In addition to hurting from the recession, the outbreak of Swine Flu in Mexico also caused problems by shutting down Six Flags Mexico entirely for almost two weeks. Attendance this quater is also down 8% from the same quarter last year.
From the businessjournal.com:
Bankrupt amusement park operator Six Flags Inc. posted a second-quarter loss due to the recession, restructuring costs, the Swine Flu outbreak and bad weather.
New York-based Six Flags (OTCBB: SIXFQ) had a net loss of $98.6 million and a loss per share of $1.25, compared with net income of $113.5 million and earnings of 63 cents a share in the second quarter of 2008.
The second quarter was impacted by the overall negative macroeconomic environment as well as the outbreak of the H1N1 Swine Flu in Mexico, which resulted in the Mexico City park being closed for thirteen days and also affected group outings at the Texas parks due to school closures.
Revenue fell 13 percent to $302.1 million due mostly to reduced attendance and guest spending. Attendance for the quarter was down 8 percent to 8 million, hurt by a decline in group sales, reflecting cutbacks in outings by companies, schools and other organizations, as well as reduced complimentary and free promotional tickets. Guest spending per capita of was down 4 percent to $36.70.
"Our decline in performance is a reflection of all that surrounds Six Flags -- a severe recession, a balance sheet restructuring process, the swine flu pandemic, adverse foreign currency impact at our international parks and miserable weather, particularly at our East Coast parks,” said Mark Shapiro, president and CEO, in an earnings statement. “The trends of our July business have improved, but nowhere near enough to put us back on pace to match last year's full-season record setting performance."
Six Flags operates the Six Flags Great America theme park and the Hurricane Harbor water park in Gurnee, Ill.
Should you be worried about this? Right now, no. This is mainly due to restructuring costs. Im anticipating next quarter to be better. As you can see revenue is still high. This adds to the reason i think we wont see anything at sfkk this next season but in 2011 we will as they will use the next season to help pay off some of that debt remaining and that means very minimal spending on new rides which the only confirmed new rides are at SFMM.
I'm still very optimistic about the parks future
From the businessjournal.com:
Bankrupt amusement park operator Six Flags Inc. posted a second-quarter loss due to the recession, restructuring costs, the Swine Flu outbreak and bad weather.
New York-based Six Flags (OTCBB: SIXFQ) had a net loss of $98.6 million and a loss per share of $1.25, compared with net income of $113.5 million and earnings of 63 cents a share in the second quarter of 2008.
The second quarter was impacted by the overall negative macroeconomic environment as well as the outbreak of the H1N1 Swine Flu in Mexico, which resulted in the Mexico City park being closed for thirteen days and also affected group outings at the Texas parks due to school closures.
Revenue fell 13 percent to $302.1 million due mostly to reduced attendance and guest spending. Attendance for the quarter was down 8 percent to 8 million, hurt by a decline in group sales, reflecting cutbacks in outings by companies, schools and other organizations, as well as reduced complimentary and free promotional tickets. Guest spending per capita of was down 4 percent to $36.70.
"Our decline in performance is a reflection of all that surrounds Six Flags -- a severe recession, a balance sheet restructuring process, the swine flu pandemic, adverse foreign currency impact at our international parks and miserable weather, particularly at our East Coast parks,” said Mark Shapiro, president and CEO, in an earnings statement. “The trends of our July business have improved, but nowhere near enough to put us back on pace to match last year's full-season record setting performance."
Six Flags operates the Six Flags Great America theme park and the Hurricane Harbor water park in Gurnee, Ill.
Should you be worried about this? Right now, no. This is mainly due to restructuring costs. Im anticipating next quarter to be better. As you can see revenue is still high. This adds to the reason i think we wont see anything at sfkk this next season but in 2011 we will as they will use the next season to help pay off some of that debt remaining and that means very minimal spending on new rides which the only confirmed new rides are at SFMM.
I'm still very optimistic about the parks future