News: Six Flags reports second-quarter profit

Posted at 10:07 AM EDT (1407 GMT)

Aug. 5th, 2008 -- Yesterday Six Flags reported a second-quarter profit due in large part to cost reductions and a one-time accounting gain on the retirement of debt.  

Compared to the same period last year, the company increased revenue slightly to $345.7 million, despite a slowing economy.

Profit at Six Flags was $94.6 million (63 cents a share), compared with a loss of $45.4 million (54 cents) a year earlier. Most of the profit was due to a gain from a $107 million exchange of unsecured debt notes, the company said.

"Revenues actually looked better than we thought," said Mike Tarsala, managing analyst at Thomson SquawkBox, which provides market analysis. "They did okay, as most of the theme parks did. In lieu of vacation and better than a 'stay-cation,' suburbanites will take their kids to an amusement park, and that's what they did in the second quarter."

Although attendance at the Six Flags parks slid 3 percent in the quarter, to 8.6 million guests, revenue per guest was up. In other words, each guest on average spent more money -- $40.02 compared with $38.72 last year -- while visiting the park.

The company also said in a news release that it was on track to be cash-positive by the end of the year, which would be the first time in its 47-year history.

For more information visit Washington Post.