Six Flags Earnings & Attendance Misses

[jzarley]

https://www.marketwatch.com/story/six-flags-stock-tumbles-as-big-attendance-miss-leads-to-surprise-revenue-decline-2022-08-11

Not a good quarter for Six Flags—especially since Cedar Fair, SeaWorld, Universal & Disney all reported fantastic quarters and are doing very well.

It’s interesting that they’re blaming the timing of Easter and Spring Break as one of the main reasons…I guess Easter hit at a different time for the other park chains :-)

[rlentless]

I saw in another resource outside of KIC that their only coaster addition is Aquaman.  That addition is still a hold over from 2020. 

Not sure if that is true and I have not seen their normal attraction additions video.

[Taylor.B03]

Six flags really is in a bad spot (Not like they were ever in a good spot recently anyway). They just seem too big for what they are, they should consider downsizing and selling off some parks.

[CoastersRZ]

Their new CEO is trying to reduce attendance to provide a better experience for the guests, so that those guests that do show up, will spend more money in the parks.  Based on their quarterly results, the guests didn`t spend as much money as they had hoped.  According to Screamscape, there were lots of layoffs at Six Flags in the last few weeks.  That coupled with the apparent lack of capital investment in new rides set for next year, doesn`t bode too well for them.  

I haven`t been to a Six Flags park in years, though having small kids the last several years has limited our trips to Kings Island, Dollywood and a trip to Kentucky Kingdom.  Six Flags parks always seemed very cheap to me. Not much theming, and a hodge podge of Looney Tunes and DC comics smattered all over the park.

[IndyGuy4KI]

45 minutes ago, CoastersRZ said:

 Six Flags parks always seemed very cheap to me. Not much theming, and a hodge podge of Looney Tunes and DC comics smattered all over the park.

I have not been to a lot of them. The only two I have been impressed with is SFMM, and SFGA in IL.

Even still, the safety at rides and upkeep of rides seem to be night and day compared to any CF park. When we were at SFGA, my son (who was under 48" at the time) probably could have gotten on a B&M Batman clone and never questioned.

Even with a wristband on, ride ops at a CF park are still going to notice him and verify he has a band or measure him. That is the type of protocols I want to see and put my faith and trust into. I am willing to spend my time and money there.

I never question the safety of myself or my children at a CF park. If there would every be an type of mishap, I know the park had done as much due diligence as they can to make sure the ride is as safe as possible before I get on it.I  am not sure I have that 100% reassuring feeling at a Six park.

 

[BoddaH1994]

Posted without comment.**

**The views of this video do not necessarily reflect the views of this user. This is not financial advice. For further information, please contact Six Flags (SIX) Investor Relations. 

[DiamondbackFan]

https://seekingalpha.com/news/3872248-keybanc-calls-six-flags-earnings-indefensible-in-downgrade?mailingid=28707525&messageid=2900&serial=28707525.851&source=email_2900&utm_campaign=rta-stock-news&utm_content=link-1&utm_medium=email&utm_source=seeking_alpha&utm_term=28707525.851

Comments from KeyBanc analyst Brett Andress:

“The results were indefensible, in our view,” he wrote. “In this tape/macro backdrop, we do not think patience is abundant, and management is likely to be stuck talking into the void until it gets another shot at proving this out next season.”

Andress downgraded the stock to “Sector Weight” after the disappointing results, voicing a lack of confidence in management moving forward. In particular, he questioned the credibility of CEO Selim Bassoul at the present moment.

“Forgive us for not giving Selim more time to execute here, but this whole endeavor/strategy was pitched as bold to begin with, and in hindsight, we think we all would have been better off had expectations been gutted in the first place, not in the middle of summer,” Andress commented. “Our fear now is that there is no more pricing power to push on these assets, that we've hit the limits of what consumers are willing to pay to experience them.”

[Imperial79]

It seems like it just gets worse for Six Flags, the more people look into what is happening in the company. Screamscape now saying that the park Presidents of St. Louis and Great Adventure are confirmed to be retiring here soon. 

 

[jzarley]

13 hours ago, CoastersRZ said:

Six Flags parks always seemed very cheap to me. Not much theming, and a hodge podge of Looney Tunes and DC comics smattered all over the park.

I saw a great Tweet today that I think really sums up this thought: “Six Flags is the Spirit Airlines of theme parks”

I must admit I have some real sympathy for the team at SIX. I was with the SeaWorld organization during a few of the bad years. It was very disheartening for everyone to be working hard to turn things around and have to report bad quarters when the rest of your peers were doing gangbusters. (We frequently blamed the timing of Easter too) Granted, SEAS issues were more related to the activist crowd then business decisions, but still…I know it feels bad.

[Rustbucket]

I am a season pass holder for SF and have been to 3 (SFoG, SFGAm and SFNE) parks this year.  None of them were busy.  Also, it has been my experience that the worst CF crews are better than any SF crews.  The staff at SF seem disinterested except for very few.  It has been like that for years.  SF parks have some great rides but they never seem to promote them.  Ironically, Six Flags season pass prices are much lower than others.  Am I expecting too much from them considering their season pass prices?

[jsus]

1 hour ago, jzarley said:

I saw a great Tweet today that I think really sums up this thought: “Six Flags is the Spirit Airlines of theme parks”

Who are the Frontier and JetBlue of theme parks that are coming to fight over the Spirit of theme parks?  

[Kenban]

There are reports that at least two Six Flags parks have closed entire sections of the parks for the rest of the year.  SFA has removed references to Coyote Creek and Whistle Stop Park, and the rides in them from the website.  For people not familiar with the park this is the kids area of the park.  I have heard something similar is also occurring at Six Flags Discovery Kingdom but they do not appear to have completely removed the rides from the website just marked them as closed for the season, but it looks like there is a lot that is closing.

So far these are the only two parks, but its possible it has just not spread to the rest of the chain yet.

This is not going to help with attendance, or help attract more families.  This feels like a desperate move to try to save money that is likely to do more damage then help.

[nhimes90]

6 minutes ago, Kenban said:

There are reports that at least two Six Flags parks have closed entire sections of the parks for the rest of the year.  SFA has removed references to Coyote Creek and Whistle Stop Park, and the rides in them from the website.  For people not familiar with the park this is the kids area of the park.  I have heard something similar is also occurring at Six Flags Discovery Kingdom but they do not appear to have completely removed the rides from the website just marked them as closed for the season, but it looks like there is a lot that is closing.

So far these are the only two parks, but its possible it has just not spread to the rest of the chain yet.

This is not going to help with attendance, or help attract more families.  This feels like a desperate move to try to save money that is likely to do more damage then help.

Sounds like Six Flags of the past…..

[CoastersRZ]

Yeah, closing areas of the park, especially areas with kids rides is not a good sign.  Seems like they are looking to cut costs wherever they can.  That coupled with the reported mass layoffs, and doesn`t sound like the "premium experience" will offer much to those willing to pay.

[IndyGuy4KI]

Thank whomever you pray to that CF did not accept that offer from SIX a few years back. I could not imagine what SIX would do to our beloved park. 

We may be critical of KI and CF as a whole ever so often, but I think this very site and other fan sites have helped mold CF into a better run company. Maybe SIX needs to hire KIC members and other park enthusiasts  to help them get back in the ball game. 

[Imperial79]

I know if I was a paying customer to one of their parks, and I bought a ticket that is more than last year, and I come in and see an entire section of the park closed off, I wouldn’t be coming back. They need to work on doing anything they can to hire, do what Cedar Fair has done, start trying to bring in internationals, build facility’s for them to stay, do they already do that though? I haven’t heard of them doing it. 
 

Edit: I just saw that Great Adventure is putting some of their broken down, old dirty rides in the middle of the park, doesn’t scream premium experience to me, making the place look like a dump.