Six Flags’ net income falls 16%
Six Flags Inc. on Thursday reported a 16% drop in third-quarter profit and said it would announce next month whether it would sell six of its theme parks, including Magic Mountain in Valencia.
Chief Financial Officer Jeff Speed said the company had sent out detailed information about the parks to 50 interested parties. Several responded with offers, and officials made a first cut of bidders, Speed said.
The interested buyers weren’t disclosed, but Speed and Chief Executive Mark Shapiro said the company had given presentations and tours to those people.
The company is considering selling the parks to cut its $2.1 billion in debt. Besides Magic Mountain and neighboring Hurricane Harbor, the parks are in Concord, Calif.; Seattle; Denver; Houston; and Buffalo, N.Y. Together they generate about $75 million in adjusted earnings before interest, taxes, depreciation and amortization.
“We are in no way committed to sell,” Speed said. “If we don’t see proper value put on the table for what we think these properties are worth and help us to achieve our objective on the balance sheet side, we’re not going to sell.”
The company has called this a transition year -- working to rebuild its brand and change the image of its parks from one of a rowdy teen environment to more family friendly. As a result, it scaled back marketing and focused instead on staffing, merchandising and new programs that feature Warner Bros. characters such as Bugs Bunny.
Six Flags, the second-largest U.S. theme park operator, blamed much of its profit decline on an attendance drop caused by inclement July weather.
Net income fell to $164.7 million, or $1.08 a share, from $195.7 million, or $1.29, a year earlier, New York-based Six Flags said. Analysts surveyed by Thomson Financial had estimated earnings of $1.51 a share.
Attendance declined 12% in the quarter after Six Flags raised prices and rainy weekend weather at six East Coast parks and extreme heat in the West kept some customers away.
Six Flags shares rose 18 cents to $5.61. The earnings were released after the close of regular trading.
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Bloomberg News was used in compiling this report.
