Six Flags 2.7 billion in debt?

Did this analyst correctly state SF's debt load or was it a mistake? I thought SF was about 2 billion in debt.

USA Today story.

I remember their debt load was $2.1 billion prior to the sale of those 7 properties a year or two ago.

I don't find it hard to believe their debt is still increasing -- considering the company STILL has not turned ANY kind of profit even since Snyder took over and they made that huge Dick Clark Productions buy-in.

If it really is indeed $2.7 billion in the hole to-date...Wow.

Could be an overestimate, but then again, I also would not be shocked. When your profits can't even cover the interest on your debt... well, that's bad.

I'm wondering if there just won't be a giant sell-off at the end of 2010.

Yahoo Finance...
"Total Debt (mrq): 2.26B"

Thats just ridiculous.

Considering the losses they've taken, that sounds about right at 2.26 billion.

I still don't think they're on a death march. Not yet.

Does that amount include the park investments for the 2008 season?

If so, we can't really base anything off of that, because they can't return any profit until people enter through all of the park gates...

I was wondering where they all of a sudden took the money from for all the cool enhancements of SFMM in recent years... let alone the massive refurbishing of X.
I keep my thumbs pressed that things will work out for Six Flags and Shapiro's calculations will compute!

While 2.26 billion is a lot, since I've started following the market and trading stocks a couple years ago, I've found many more "reputable" and seemingly-stable corporations that have more debt. It surprised me, but, at the same time, gave me more confidence that Six Flags isn't in any real danger (in my opinion). It is a lot of debt and certainly not good for the company, but I think it could be worse and isn't a sign of imminent bankruptcy or anything. I think they'll be able to pay it off slowly and really start to grow.

How much are they worth? Does anyone know?

I was just going to say, debt versus value is pretty important. Other companies have more debt, but they're also worth more.

Can I just copy/paste my response from the SFoT news item?

Seems like other companies carrying that kind of debt load have at least one of two things in their favor that SF may not. A growing market/market share, and/or enough income to pay down more than JUST the interest....

Debt isn't fun, my $201,300 debt may be insignificant compared to these numbers, but it's still a lot to deal with and it creates excessive stress sometimes.

But my debt is equal to the value of my property, even during this housing crisis we're in.

Well with that much debt, it is no surprise that they increased the "Pay to Cut" Q-bots to such crazy hight prices this year.

I am confused. I thought six flags paid of a big chunk of that debt? Isnt that what they keep saying in those reports that the company does? They where saying that they paid off something and that opened up some credit for them which they dont plan on usinf for a little bit.

What was there debt in 2000? Has it gone down or gotten worse over the years

Basically by selling the parks they did, all they've been able to do is pay the interest on that debt and yet it's still grown. Not as rapidly but its still getting worse not better, Honestly, I think the debt is probably aproaching the value of the properties they own and the income they generate.

Chuck, won't call them finished but K-MART buys up several other store brands, Files bankruptcy and then buys SEARS??????? It's the corporate way.

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john peck said:
Debt isn't fun, my $201,300 debt may be insignificant compared to these numbers, but it's still a lot to deal with and it creates excessive stress sometimes

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Wow. How did you get so way in over your head? It really isn't any of my business, but you kind of invited solicitation by bringing it up on a message board. :)

The thing with Americans is they spend more than they have on things that are not a complete necessity; as well as purchasing items, property and services that are outside their income level. It's the whole "I must have what I want, right now" mentality, as opposed to saving up over the course of a few years and then buying it out of pocket instead of on credit or via financing. That's usually the main reason so many people go into debt in the first place. And it's so easy to avoid too if you just have the determination.

It's like that 24 year old you see on the freeway driving a new BMW, but he only rakes in $30K a year and the car is on a lease. HELLO? Idiot.

^LOL, I'll take a wild guess and say it's a mortgage. :)

You took the words right out of my mouth Bill. I hope you washed your hands first! :)