SF cuts way back on spending!!

[Bob O]

Six Flags to cut up to $60M in expenses
Washington Business Journal - by Jeff Clabaugh Staff Reporter



Dan Snyder's Six Flags amusement park chain, which has lost money in three of the last four quarters, plans to cut expenses by as much as $60 million this year.

The company called park attendance over the last two years disappointing.

Six Flags will cut cash operating expenses by as much as $30 million by reducing what it spends on advertising. That will include firing one of its three advertising agencies, and spending less money on radio commercials and more on Internet advertising. It will save an additional $30 million by cutting its full-time headcount, primarily through early retirement, and removing what it calls inefficient rides from parks.

Six Flags also says it is in talks to open theme parks in the Middle East, India and East Asia, and may consider selling two or three existing parks to raise capital. It will introduce eight new roller coasters at existing parks this year.

Six Flags made the announcements during an investor conference Wednesday.

Since winning control of Six Flags (NYSE: SIX) in a boardroom fight in 2005, Snyder and his team have worked to increase park attendance and reduce debt. The company sold 7 theme parks last year.

The company had third-quarter net income of $89.7 million, down more than 40 percent from $164.7 million in net income a year earlier. Sales fell 1.9 percent to $365.2 million.

It's 21 parks drew 24.9 million visitors last year, barely changed from 24.8 million in 2006.

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More bad news, and what rides will not operate at SFGAM this year as a result of this???

[RagingBullFan]

As has been mentioned before the rides slated not to run this year (or ever again) are Splash Water Falls, Space Shuttle America, and Déjà Vu.

Splash and Shuttle may remain standing for a while before they are taken down.

I think the advertising cuts are needed, as 3 advertising companies is indeed much too much.

The part that I find interesting....

Six Flags also says it is in talks to open theme parks in the Middle East, India and East Asia, and may consider selling two or three existing parks to raise capital. It will introduce eight new roller coasters at existing parks this year.

I wonder what parks they are looking to sell now? I know most likely SFGAm is not one of those on the list as we are the most profitable park in the chain. Could this be the end for SFMM or some other park that Shaprio has never liked?

[Tip Top Club]

I'd say it's time to start waving goodbye to the non-no touch parks.

The only thing I'm honestly worried about is the implementation of the seasonal laborship tracking thingy that wasn't actually mentioned in this article, but was in others. Staffing already sucks even in mid-summer at SFGAm, let's not make it worse SFI!

[RagingBullFan]

I could see possibly the international parks being a few of the ones spun off, i.e. LaRonde and SF Mexico... Those seem like they would be the easiest to sell.

[T.K.]

The internatinal parks are doing good. The european parks were not doing good while SF owned them, because europeans have different standards about theme parks lol... like actually themed.

[UWW-10]

So...I take it that they are considering the rehab of X to be their 8th coaster addition because I could only think of 7 that were actually being built...unless I am missing one somewhere.

TDK- SFGAm, SFGADv, SFNE
THBS- SFDK, SFOT
EK- SFStL
Goliath- SFFT

Technically, X2 will be a new experience with the tunnels, new trains, and paint job, so I guess it's more of a media tactic especially when they advertise it as "8 NEW Coasters for '08!".

And I guess I could see more parks end up on the chopping block, but I can't honestly believe that we would sell them for increased revenue and then turn around and put that money into possible parks in the Middle East, Asia, or India.

[Coaster Justin]

Remember when I made an idea for Six Flags South Korea and you all said that will never happen. What do you say now?

[coasterfreak04]

Remember when I made an idea for Six Flags South Korea and you all said that will never happen. What do you say now?

"So what. So lets dance!" *plays Journey*

[rct2wizard360]

Remember when I made an idea for Six Flags South Korea and you all said that will never happen. What do you say now?

It says talks...

[zjohn1988]

Someone screwed up their budget planning...

[FParker185]

Yeah, both Six Flags Holland and Six Flags Belgium were themed very well, in line with and even exceeding European Standards.

[sfgam1992]

If you read the actual presentation on the park website for investors it says that the will license out the name and possibly manage the park not build it themselves. So they will just be making money off of it.

Look at slide 15:
http://library.corporate-ir.net/library ... 011608.pdf