Six Flags announces drop in attendance, capital expenditures while stock takes hit

Guys... the results aren't great, but they aren't getting deeper into debt. If you'd read the press release you'd see that they reduced their long-term debt by $200 million in the last six months. The cash flow isn't even remotely putting them in danger of declaring bankruptcy.

"If you'd read the press release you'd see that they reduced their long-term debt by $200 million in the last six months. "

Sure, but they did this by selling the European properties and WoA.

"The company retired $260 million of its $2 billion debt through the sale of the Cleveland and European parks."

I am not worried about bankruptcy. This company will survive and I, like others, hope to join them in their recovery. At $3.60 per share (close of market today) it's a long term steal. Will it ever be back at $20+, maybe. Will hit get back to $8-10, without much doubt. I'll take a 200+% return anyday.

The sad reality is that logic and big business do not always go hand in hand. As someone who once loved Geauga Lake, I was thrilled to see FUN buy it. On the other hand, the issuance of new shares to cover the purchase, caused the stock to drop 10-12%. Not such a good thing.

In the long term, I believe that all will be fine - both for PKS and FUN.

Do you guys think they will be selling off some of the underperforming parks in the near future? Pure speculation I know---but this seems like a logical next step if the majority of capital improvements are going to the big boys. Seems like it will be hard to turn attendance declines around at the underperforming parks without the investment. Advertising better service and paint jobs can only go so far in my opinion!

P.S. I live in Vegas and dable in the stock market here and there. I've never bought a stock under $10. I'd consider the gamble just to own a piece of an amusement park again (I owned some Disney back in the day)! Of course, if I did this, I would have to come on CB and tell you guys how great SFMM is and how all the rides are running full capacity. :-) You can't bash a company you own, right?

"You can't bash a company you own, right? "

Sure you can. I own some PKS, FUN, and BUD. Add that to the GE I owned before NBC bought Universal and all I need is some Viacom.

In fact, I think if you own some, you may have more of a right.

It's like jokes about your mom. Only you can truly make them and get away with it. ;-)

Yea, I'll be putting off buying SF till 3rd quarter. The 3rd quarter is usually better for SF. Even if it gets up to 5 bucks, I can get in on over 1000 shares (ahh thank god for margian :), I think we'll definatly see a bounce back of SF in the long term. I don't know how much the announcements of their new rides will have affect on the stock. Oh well, For now i'll be sticking to my own stocks for now *cough* CNDD *cough*

What hurt them was the amount of money they spent flagging parks and also triing to salvage customers that were scared away from the original SF parks do to quality issues, such as ride down times, cleanliness of the parks, pricing in the parks, staff attitudes, and theming at the parks. Even when they tried to entice people back they messed up (remember Deja Vu at SFGAM).

Six Flags reduced both assets and total stockholders equity, while only paying off about 200 million in debt. The parks they sold off to repay debt cost shareholders over one half billion dollars.

Six Flags has less assets, less ways to bring in money and the attendance decline continues. The loss per share increased to $1.45 in 2004 from $1.34 in 2003 for the first six months.

This doesn't paint a good picture, the company just doesn't know what they are doing, and I wouldn't be surprised if Burke resigns in the next year or two.*** This post was edited by Pete 8/13/2004 3:11:48 AM ***

I-Fan: Premier started out as Tierco when they purchased their first park in 91 which was wild world,the name was changed to Adventure world for the 94 season.

Between the time of WW's purchase & the SF buyout premier added Riverside(SFNE) DL(SFDL),GL (SFWOA),KK(SFKK) & EG(SFEG)now prior to the SF buyout most parks in premier's chain recieved new rides each year....AW got at least 1 new ride from 93 to 98 & the rides added as part of the SFA conversion but now they get next to nothing.

Pete I do agree that it's time for MR. Burke to step down & let someone else assume control because he doesn't know what he's doing....thankfully MR. Story is out for the most part already.