Yeah, I gotta say that I'm not sure I understand that at all. The second quarter is not a good indicator of how things are going I don't think, not when they're in the process of a supposed turn around. 16% in one day. Ouch!
It's hard to interpret the numbers given how volatile the stock market has been in the last couple of weeks. The DJIA recently broke 14,000 and hit an all-time high, only to get hammered this week. The Dow is off over 700 points since then. If you graph the year-to-date performance of Six Flags vs the DJIA, S&P 500, and NASDAQ indices, Six Flags had outperformed all three indices up until the last 3 weeks. Then Six Flags' stock did a nose-dive. It's possible it got hammered because the second quarter earnings report was disappointing at a time the market as a whole was undergoing a major correction. If you still believe in the long-term potential of Six Flags, now would be a perfect time to add to your holdings. Always try to buy on the dips.
Articles I've read attribute the fall to several things: the widening 2Q loss-- apparently, the markets don't care about the increase in marketing and in-park expenses, a loss is a loss. That caused their bonds to drop in value. And even though their revenue increased, it was lower than expected by the one analyst following the stock.
Just about every stock has taken a hit the past few days. Even stocks that reported increases in earnings or beat analyst's expectations got beat up. A lot of people decided to take their profits and run this week.
Plus, although it makes no sense, supposedly people are nervous about the housing markets. Why every stock should drop because we're not going to build 30 million new houses this year is beyond me.
I believe Snyder and company have said they will support the stock at $6. I'm hoping this means the company will buy back enough shares to boost the price to $6, don't take this statement as fact, but I believe I heard this while back and a slight reference to it in the conference call.
The market might be volatile, but it's not 16%-down-in-one-day volatile. The market cap is now down to $369 million. Granted, I haven't done the math of assets to debt, but I just can't imagine it's that low.
The quarter itself wasn't horrendous, even though lower EBITDA off of last year's already depressed numbers isn't pretty. It was when Shapiro indicated that July was off to a slow start (through the first three weeks at least, before improving this past week) that the market got queasy about THE defining quarter of the year.
Toss that into the market's worst weekly slide in four years, and that's like heaving a Molotov cocktail at an oil refinery.
With all this talk about stocks, quarters (sorry, it all just bores me to tears... I know it's important though..)
Six Flags employee attitudes and operations (well, in terms of the rides BEING open) are better than they have been, probably ever.
Unfortunately, parking is still $15, a large pop is still $4.06, and ride operators - as cherry and upbeat as ever - are still painfully slow.
Would I take my family to Six Flags? Hell no. Spend all that money, wait in lines (while CONSTANTLY being reminded that I can 'upgrade' - "why wait!" a HUGE TURNOFF and a slap in the face)...
I would easily take my family (well, little cousins, friends, anyone that wasn't a coaster enthusiast) to Indiana Beach or Holidayworld first (and I already have).
That $9.99 sipper deal/$1 refill ain't bad - when you compare to buying individual drinks all day. But you have to carry it with you. You have to wait in slow lines for your refill.
My sipper I bought at Great America was stolen off the Superman deck. Nice. The other one I have, from SFOG is twisted and won't stand up by itself (the thinner plastic is warped under the "Goliath" rubber thing) and the top - where the springy thing is, has holes in 2 places, so I get wet when I drink.
They sure do a job at getting people IN the park, though. All those discounts on season passes... all those teenage season pass holders - their antics, spitting, bringing 'snappy pops' to drop on the que while riding Superman (and various other rides that fly over people). I was no saint (by a long shot) when I was a teen (and still ain't). (no more locking turnstyles for me ;)
But babysitting a bunch of acting out teens is what Six Flags is basically doing.
And all this "my family comes here too!" stuff. With shirts like "I'M HUGE IN JAPAN!" and something about my "BALLS" prominitely displayed in gift shops - hardly family friendly. (although I'm not about sensorship, it's just hypocritical).
^Market saw a sudden sharp decline in expectations (aka, a *correction*). "Disposable income"-type stocks are generally going to take a bigger-than-average hit, since a family CAN live without a trip to the park - if you call THAT living... ;)