Six Flags revenue and per cap up for year, expenses up

Posted Saturday, March 15, 2008 1:43 PM | Contributed by Lord Gonchar

Total revenue for the quarter increased 7% to $112.1 million from $104.3 million in the prior-year quarter. Attendance increased 0.1 million, or 4%, to 2.8 million from 2.7 million in the prior-year quarter. The attendance increase reflects an improved December performance compared to the prior-year quarter.

Total revenue per capita for the quarter increased by $1.43 (4%) to $39.38, reflecting a 4% increase in guest spending for admissions and increased in-park spending for food and beverages and rentals, as well as increased sponsorship revenue. Total per capita guest spending increased $1.17 (4%) during the quarter to $34.49.

The Company's net loss from continuing operations for the quarter was $130.8 million, compared to a loss of $100.5 million in the fourth quarter of 2006, reflecting increased non-cash charges for losses on fixed assets from the decision to remove certain inefficient rides and attractions, and higher stock-based compensation costs, partially offset by increased revenue. Other expense also increased, reflecting severance and benefits costs related to a reduction in our full-time workforce primarily through an early retirement program, as well as accruals for certain contingencies.

For the year ended December 31, 2007, total revenue increased $27.1 million, or 3%, to $972.8 million from $945.7 million in the prior year.

Total revenue per capita for the year compared to the prior year increased $0.99, or 3%, to $39.06 reflecting increased per capita guest spending and sponsorship revenue. Increased per capita guest spending for the year of $0.52, or 1%, over the prior year to $36.64 was driven by increased food and beverages, parking, rentals and games revenue. Attendance for 2007 was 24.9 million, up 0.1 million compared to 2006 despite 40 (1.4%) fewer park operating days.

Total costs and expenses, including cost of sales, depreciation, amortization, stock-based compensation and loss on fixed assets, increased $43.9 million to $939.5 million for 2007 compared to 2006. The key drivers of the change were increased advertising expense ($25.6 million), non-cash loss on fixed assets ($16.0 million) and park-wide labor ($15.3 million), partially offset by prior-year management change costs ($13.9 million).

Net loss applicable to common stock for 2007 was $275.1 million, or $2.90 per share -- basic and diluted, compared to a net loss applicable to common stock of $327.6 million, or $3.48 per common share -- basic and diluted, in the prior year. The decreased net loss of $52.5 million reflects a reduced loss from discontinued operations ($88.5 million) and an increased loss from continuing operations ($37.1 million) driven by higher costs and expenses.

Read the entire press release from Six Flags.

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