News: Six Flags' third quarter income drops 16%

Posted at 4:18 AM EST (0918 GMT)

Nov. 3rd, 2006 -- Net income fell to $164.7 million ($1.08 a share) from $195.7 million ($1.29 a share) from a year earlier, Six Flags reported.

Attendance declined 12% in the quarter after the compay raised prices at the gate. The company also blamed inclement weather for the attendance decline. Rainy weekend weather at six East Coast parks and extreme heat in the West allegedly kept potential customers away.

The company also noted that it would announce next month whether or not it would sell the six properties that were put up for sale earlier this year. The company is considering the sale of those parks to relieve its $2.1 billion debt load. All six properties generate approximately $75 million in adjusted earnings before interest, taxes, depreciation and amortization.

CFO 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 parties were not disclosed, but Speed and Chief Executive Mark Shapiro said the company had given presentations and tours to those people.

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."