Friday, July 25, 2014

Six Flags Posts Mixed 2nd Quarter 2014 Results

Six Flags announced their 2nd quarter 2014 results earlier this week, and while not all bad one item quickly made many investment headlines.

The company recorded record revenues in the quarter of $377 million, generated by higher per guest spending, which was up $4.21 per visitor.  The increase came from both admission revenue and in-park spending on food, retail and amenities.

That news seemed to be quickly overshadowed by the fact that overall attendance for the quarter was down 8% - something the operators blamed on residual effects of the harsh winter.  Extended school years and shortened break periods ate away at visitors, said Six Flags.  Attendance came in at 8.2 million visitors for the quarter.

If you look through both the 2013 and 2014 news releases for the 1st and 2nd quarters, you can actually better piece together how the year is going, at least attendance-wise:

So year to date things are down over 10%, but when you look at that number in terms of guests it is 1.1 million - a bit shocking, really.  So the question is, why have all those people not headed out to their local Six Flags park this year?

Well, the late opening of several big rides at Six Flags parks could be playing a part, or perhaps price increases aren't sitting well with customers.  The third quarter of each year, with heavy-hitting summer months of July and August, will be the big test for Six Flags.  Competitor Cedar Fair will released their 2nd quarter numbers on August 5th, which should make for an interesting comparison as well.