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Credit: Six FlagsYesterday was Six Flags’ financial call with its investors, and the big news was revealed about the company’s plan for its older, higher maintenance attractions around its Parks.
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Six Flags Earnings Report for Its Quarterly Earnings
Six Flags Entertainment Corporation (ticker symbol SIX) has announced its quarterly financial results, reporting $0.25 per share earnings. This result falls short of the earlier projected Zacks Consensus Estimate of $0.81 per share. In comparison, the company posted earnings of $0.69 per share during the same period last year. It’s important to note that these figures have been adjusted to account for one-time exceptional items. This quarterly financial update has led to an unexpected variance in earnings of approximately -69.14%. Looking back at the previous quarter, market expectations foresaw a loss of $0.85 per share for the amusement Park operator. However, the company limited the loss to $0.84 per share, delivering a slight positive surprise of 1.18%. The theme Park company has made it out alive over the last four quarters by surpassing the consensus EPS estimates. But this last quarter has proven to be a rough one for Six Flags.
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Six Flags Entertainment Corporation is the preeminent regional theme Park enterprise globally, the primary overseer of water parks within North America. Boasting a presence in the United States, Mexico, and Canada, the company oversees 27 parks. Over 62 years, Six Flags has captivated countless families with its exceptional array of high-caliber roller coasters, meticulously themed rides, exhilarating water parks, and distinctive attractions. Notably, Six Flags is committed to cultivating an all-encompassing environment that celebrates the rich diversity among its Team Members and visitors. With the theme Parks being committed to providing the best safety measures for their Guests, the older and higher maintenance attractions might be heading to the junkyard.
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Some Big Changes Are Heading to These Theme Parks – Some Bad but Some Good Too
Six Flags looks to make some significant changes to its theme Parks around the globe. Starting with removing and dismantling its older and higher-maintenance attractions very soon. During the earnings call with shareholders, Selim Bassoul, President and Chief Executive Officer for Six Flags, had these choices of words to say to a question from an analyst:
So, capex on infrastructure and replacing inefficient rides will also reduce expenses. Those rides have high maintenance. So, my feeling is operating leverage efficiency, as attendance grows to target levels, will allow us to increase margin over time. So, I believe we can grow margin into the mid-40%, long range, paying term, and that’s our objective.
The company does look to invest $200+ million per year in capital investments in 2024 and 2025. The company did mention how “exciting” new rides are on the way to the Parks over the next few years. CEO Bassoul added to the Chief Financial Officers’ comments that thrill rides are the company’s “DNA” and that more rides mean a better Guest experience throughout each Park.