Wednesday, June 6, 2001 5:15 PM
I know six flags has some 2 billion dollars in debt. IF so how do they continue to add rollercoasters like it is nothing and when is the debt supposed to be paid off.
Wednesday, June 6, 2001 5:19 PM
I pretty sure their thinking is that the profit recieved from more people attending because of those new coasters will come in faster than the debt is due to pay back. It's a risky model but if (which I think it will)it works the company and coaster fans will reap the benefit beacuse they will just keep adding and adding...
Wednesday, June 6, 2001 5:24 PM
Didn't Six Flags say in a report that they are cutting capital expediture heavily with minimal large purchases?
Wednesday, June 6, 2001 5:26 PM
I thought busch gardens said that.
Wednesday, June 6, 2001 5:27 PM
I'm sure it was Six Flags, they are the ones who have gone coaster-shopping for the past few years almost every few months! I think they want to improve the parks reputations, I though SFNE was the first to benefit.
Wednesday, June 6, 2001 5:34 PM
Iron Wolf said:
"Didn't Six Flags say in a report that they are cutting capital expediture heavily with minimal large purchases?"
I think that means that they won't buy out any more parks for a while, but that's just my guess.
Wednesday, June 6, 2001 5:44 PM
I realize that. Six Flags buys new parks and builds new rides every year. They should just cool it off for a while with all the spending.
Wednesday, June 6, 2001 5:45 PM
I don't think they're in debt.
Wednesday, June 6, 2001 5:52 PM
they've gotta spend , it's the competition
Wednesday, June 6, 2001 6:49 PM
You don't think they're in debt? Think again, check E-trade or any financial site and look them up.
Yes, they did say they would cool off for a bit: http://www.coasterbuzz.com/news/news.asp?NewsID=1547
Webmaster/Admin - CoasterBuzz.com
Wednesday, June 6, 2001 6:54 PM
They only have to generate enough capital to meet payments. They will never stop buying parks, as if that day comes, then they are locked up financially from getting loans and bond issues.
The stock, which is not returning anything at the moment, will not go up until the long term debt ceiling is lowered. They, like every other park, either independent or chain, borrows on 90 day terms to open, purchasing plush, f/b items, small equipment, uniforms, and all those odds and ends to get open.
Even someone like me who has been in this industry gig for years is amazed how much 'stuff' you need in the spring. Paint, litebulbs, cordless drills, telephones, radios, signage, etc, all need to be 'here' to open. With their 30+ parks all buying on credit, they need the 'borrowed cash' in the shoulder months, like April and May.
Six Flags has been good in paying that money back, but they have borrowed against the stock so parks get the big hit, like Great Adventures 25 rides in 99, W of Adv. infux last year, and so on. Gary Story and Kieran Burke own less than 1% of the company, so they aren't getting rich from the sell of their own stock. They (Gary) realize that it is time to fine tune the entire operation, like purchasing, training, maintenence, and group sales. They have made great strides over the winter in doing this.
Gary, being a former Games manager in his day, knows the value of in park spending, and he will lead the other gm's into this philosopy. As much as I champion the independents, I give SF credit, as they saved some older parks that were up to their eyeballs in red ink. SF has some issues to deal with, but they can make changes on a dime, and guests are now expecting the same level of entertainment rides, and games at every park.
And at the least, YOU, the enthusiasts, have received a great season pass program, that is used on a international level. The public does win sometimes.
Wednesday, June 6, 2001 8:07 PM
I wouldn't worry unless you're a stock holder.