Posted Friday, November 9, 2007 10:12 AM | Contributed by Jeff
Revenue fell 2 percent to $465.2 million, which the company blamed on bad weather in July cutting attendance at its Texas and Georgia parks, and bad publicity from an accident at its park in Kentucky.
Read more from Reuters.
Stock prices have fallen to $2.20 per share - a ten year low. Things continue to get even more bleak for Six Flags financially.*** This post was edited by sws 11/9/2007 5:32:05 PM ***
"The basic gist was that Six Flags and Dan Synder managed to get a local law on the books preventing outside locations from providing cheaper alternative parking, a move he tried once before outside his football stadium. Well, the people have spoken it seems that the Mayor who worked with Six Flags to champion that cause has been voted out of office by a political campaign centered against that parking ordinance. As for the law itself, the city council voted unanimously to toss it out back in September along with a series of public apologizes to the local residents and businesses."
Now that's also what I call bad publicity. Also, again imo, they have priced the food so high, that they drove away part of their core base. I know Snyder is proud of his Johnny Rockets chain, but the prices on the menu (at least at SFMM) are not reasonable (and it doesn't even look like a traditional JR - picnic seating only). For their intended target family demo, it becomes a very expensive outing to attend a SF park. Especially when every franchise food vendor in the park can be found minutes away from the front gate for half the cost.
Per capita guest spending increased $0.04 during the quarter to $37.13 as guests spent 3% more in-park, primarily on food and beverages, parking, and games, while per capita spending on admissions was down slightly, reflecting an increased mix of season pass and promotional offer attendance.
Doesn't sound like food is the problem.
Don't forget the survey increases too. They increased their guest satisfaction from where? Horrible to Bad? Poor to Fair? Funny how they left little tid bit out.
Attendance was up June, August, September, October. When the story broke about the Kentucky Kingdom accident they took a big PR hit and then the rain in Texas during July didn't help. They saw a big drop in attendance during July.
At first glance, I thought the 18% drop in price was a bit extreme. After all, the revenue was "only" down 2 percent for the quarter. But again, when your stock price is so low to start with, a drop of 5 or 10 cents shows up as several percent. Do you think Six Flags set themselves up for this with their glowing press releases? All season long, we've been hearing about record levels of guest satisfaction, and all indications were that per cap AND attendance were notably higher.
To be so far off the Wall Street estimate indicates something is majorly wrong. Either someone in the company is totally oblivious to what's really going on, or they knowingly gave out incorrect information to make things sound better than they were. Unfortunately, based on the info they were fed, the analysts figured they were going to make twice the profit they actually did. And now Six Flags is taking another major hit because of it.
How could three parks affect the bottom line that badly?If they were to say that it rained a lot, I know that wasn't the case at America or Great Adventure. In fact, it was quite the opposite, and maybe that kept people away.
I still remember on our trip to Great Adventure in July that the back of everyone's t-shirts were quite wet--men and women--because it was so humid and hot and Gadv. has a lot of shade.
I think they need to start looking at other issues like food prices, which are outrageous. You should able to eat more than once at a themepark without a hole being burned in your wallet, and right now that's not a reality at Six Flags (I'm talking to you too Cedar Fair).
I don't think the $15 parking charge is killing anyone (not that it feels good unless you already have a season pass and it's not an issue), when a lot of other parks are charging $10 or Seasame Place is charging $13! (There was an article in the travel section of The Baltimore Sun).
The removal of rides (which may or may not have been behaving badly in the past) can't be helping the situation either. True, some parks are getting new attractions, but SFNE is really taking a bad hit this year with one ride replacing five.
I agree that the Kentucky Kingdom incident did them no favors. In fact, I think there might have been a spillover effect to the somewhat nearby King's Island, which we were at for the next two days (we were never at SFKK). *** This post was edited by Intamin Fan 11/9/2007 7:54:13 PM ***
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While the market in general is tanking at the moment, look at SIX free fall! Down 15% today to 2.20 at the moment. Ironically enough, after taking a bath all week, FUN is the only thing I watch that's actually up today. Even Disney is taking a hit today, and they really kicked ass this year
.... because today's numbers are indicitave of the YTD ROI. Too bad you didn't sell at 29.25 like I did.... 8 dollars ago. look at the 3day, 5day, month, quarter, half, YTD, or any other chart you can find and you will see FUN is a terrible stock to own any way you spin it.
funny that you point out a small bounce after the stock just dropped 7% the last two days. oh and by the way the S&P 400 is up 7% YTD, even given the recent market turmoil, and FUN is down a cool 22%. Sounds like a good investment to me!
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edits:getting the quote to work. Too bad there isn't a button for that, or a way to do it that makes sense or is in any way similar to any other forum I've ever been to. is it really that hard to use quote "user" ???
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Again about my first experience at a SF park, it wasn't the worst but the ride oops seem very pre-occupied with stuff other then their jobs, or just not good. Mind Eraser I found not to be to bad on the head, but HORRIBLE after the girl literally CHARGED my restraint to close it and it left my stomach in pain for days. (honestly I got that ALL DAY, and SF was the only park I've EVER experienced such horrible restraint checks that slam them into your legs/crotch/stomach, HORRIBLE!! A simple lift to see if it is locked, or a light push is FINE!) That left a bad taste in my mouth, along with the employees PAID to stand up on a high place or pedestal to watch over lines, who just stand on the second step or end up talking to other employees and miss groups of people line jumping, and when you say something they act annoyed or "I didn't see it happen". These are problems I HAVE experienced at other places in light moderation but seem to have all been at SF multiple times... Just thought I'd share that.
Just do what I did in order to quote you: copy, paste, and italicize the font.
Most of my FUN was bought when the units were trading around $19 almost ten years ago. I'm not interested in selling at this point just because it's down. I don't see the gloom and doom or imminent failure.
I have to say that I'm still surprised that Six Flags hasn't had a better year. I'll give them the bad publicity angle, but some of that they brought on themselves, as with the very public spectacle about whether or not they'd sell Magic Mountain. That certainly doesn't instill confidence in anyone.
Jeff, while I enjoy the personal attack I would like to point out that it's a logical fallacy commonly referred to as Ad hominem. Anyway, it sounds like you bought FUN just around 10 years ago. Since I'm not about to try to insert a picture here I'll link you to a chart that shows FUN's performance vs. the SPY and MDY. The results may shock you. comparison chart
I still find humour in the fact that no one can see the similarities between Cedar Fair and Six Flags.
There is no similarity between Six Flags and Cedar Fair because Cedar Fair has been profitable for decades. Six Flags has not.
And when you're done knowing it all, let me know how many forum apps you've written, and the salary you command as a programmer.
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