http://cbs2.com/local
^^^^Video link under VIDEOS
CBS) VALENCIA, Calif. Six Flags Inc. announced Thursday it will explore "potential strategic options" for six of its theme parks, including Six Flags Magic Mountain and Hurricane Harbor in Valencia.
"Although the company cannot predict when, or if, any specific transaction will occur with respect to these properties, potential options include a sale of the parks as going concerns in a single transaction or a series of transactions, dismantling and re-utilizing certain rides and attractions and selling the underlying land for real estate development purposes, as well as other potential alternatives," a Six Flags statement says.
The New York-based company said the decision follows a "comprehensive review" of its assets.
The announcement also involves: Six Flags Darien Lake outside Buffalo, N.Y.; Six Flags Waterworld, in the Northern California town of Concord; Six Flags Elitch Gardens in Denver; Wild Waves and Enchanted Village outside Seattle; and Six Flags Splashtown in Houston.
"We're making progress with our strategy to focus on the growth of our strongest assets, reduce the company's debt, and generate increased value for our shareholders," said Mark Shapiro, who was named president and chief
executive officer of Six Flags last December.
In updating the company's business performance through the first half of the year, Shapiro said an increase in guest spending on tickets, food, merchandise, parking and games was offset by a decline in attendance.
He blamed the attendance slide on the fact that the company is no longer deeply discounting its season passes "in an effort to restore price and brand integrity, and to wean ourselves from those teens who don't spend money in the
park."
"What has been unexpected thus far is that the families we are targeting to replace those teens have been harder to attract than anticipated," Shapiro said. "Make no mistake about it, families are coming back -- as evidenced by
our solid increase in per capita guest spending -- but not as quickly as we had hoped."
He said attendance was also negatively impacted, in part, by the season-long closure of the New Orleans park due to damage from Hurricane Katrina; rides that came on-line late; and inclement weather on the West Coast in the
first quarter and on the East Coast in May.
"We're investing more in our operations because the health of our business depends on bringing back families," he said. "Our first priority is to fix the operation and that is not going to happen overnight. We see this as a long-term investment."
^^^^Video link under VIDEOS
CBS) VALENCIA, Calif. Six Flags Inc. announced Thursday it will explore "potential strategic options" for six of its theme parks, including Six Flags Magic Mountain and Hurricane Harbor in Valencia.
"Although the company cannot predict when, or if, any specific transaction will occur with respect to these properties, potential options include a sale of the parks as going concerns in a single transaction or a series of transactions, dismantling and re-utilizing certain rides and attractions and selling the underlying land for real estate development purposes, as well as other potential alternatives," a Six Flags statement says.
The New York-based company said the decision follows a "comprehensive review" of its assets.
The announcement also involves: Six Flags Darien Lake outside Buffalo, N.Y.; Six Flags Waterworld, in the Northern California town of Concord; Six Flags Elitch Gardens in Denver; Wild Waves and Enchanted Village outside Seattle; and Six Flags Splashtown in Houston.
"We're making progress with our strategy to focus on the growth of our strongest assets, reduce the company's debt, and generate increased value for our shareholders," said Mark Shapiro, who was named president and chief
executive officer of Six Flags last December.
In updating the company's business performance through the first half of the year, Shapiro said an increase in guest spending on tickets, food, merchandise, parking and games was offset by a decline in attendance.
He blamed the attendance slide on the fact that the company is no longer deeply discounting its season passes "in an effort to restore price and brand integrity, and to wean ourselves from those teens who don't spend money in the
park."
"What has been unexpected thus far is that the families we are targeting to replace those teens have been harder to attract than anticipated," Shapiro said. "Make no mistake about it, families are coming back -- as evidenced by
our solid increase in per capita guest spending -- but not as quickly as we had hoped."
He said attendance was also negatively impacted, in part, by the season-long closure of the New Orleans park due to damage from Hurricane Katrina; rides that came on-line late; and inclement weather on the West Coast in the
first quarter and on the East Coast in May.
"We're investing more in our operations because the health of our business depends on bringing back families," he said. "Our first priority is to fix the operation and that is not going to happen overnight. We see this as a long-term investment."
. . .actually make it all day round.
