Six Flags chiefs outline future strategy
Following a release of results for the quarter and six months ended June 30, 2008, Shapiro said: "Not only are we seeing the re-emergence of the Six Flags brand. But we are also beginning to yield the economic benefits of being the world’s premier regional theme park company.
"Despite a difficult economic environment, through July we have witnessed solid revenue growth while at the same time reducing our operating expenses by improving the efficiency and effectiveness of our marketing and labour investments."
Looking forward the management team outlined five key strategic objectives for their three-year turnaround plan, established upon their arrival in 2006, each of which are on track to be realised by the end of this year.
The objectives include: a clean-up of the parks and improvement of the overall guest experience; to become free cash flow positive; achieve total revenue per capita of at least 20 per cent cumulative growth from 2005; to create and grow new high margin and low capital sponsorship and licensing businesses and achieve annual revenues in excess of $US50m, and finally, operate at a profit margin for Modified EBITDA of at least 30 per cent.
Shapiro concluded: "Six Flags is expanding as an entertainment company by identifying new revenue streams while simultaneously revitalising its core business. This has been the fundamental objective of our turnaround plan. Our momentum through July indicates that the strategy is taking hold with long-term value being the endgame."