Six Flags 2Q Net Income Down 34-Percent

Monday, Jul 22, 2013  |  Updated 10:13 AM CDT
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Six Flags 2Q Net Income Down 34-Percent

NBC 5 News

Amusement-park operator Six Flags Entertainment Corp. said Monday that its second-quarter net income dropped 34 percent.

Amusement-park operator Six Flags Entertainment Corp. said Monday that its second-quarter net income dropped 34 percent, pulled down by a steep increase in income tax expense and unusually cool and wet weather that reduced attendance at some of its parks.

The results fell short of Wall Street estimates.

James Reid-Anderson, Six Flags' chairman, president and CEO, also said in a conference call Monday morning that the company continues to investigate the Friday death of a woman at its Six Flags Over Texas park in Arlington, Texas.

Six Flags hasn't said how the woman died. Witnesses said the woman expressed concern about the Texas Giant roller coaster's safety bar not completely engaging as the ride was starting.

The 14-story ride, which remains closed, is touted as the tallest steel-hybrid roller coaster in the world.

Reid-Anderson said the company won't be releasing further information until its investigation is complete.

For the three-month period ended June 30, Six Flags said that it earned $47.4 million, or 47 cents per share, down from $72.3 million, or 64 cents per share, in the same quarter of 2012.

Revenue fell 3 percent to $363.7 million from $374.9 million.

Analysts expected a profit of 50 cents per share on $370 million in revenue, according to FactSet.

Six Flags said cooler temperatures and an extreme amount of rain reduced attendance at its parks in the eastern and Midwestern parts of the country during the recent quarter. The shift of the Easter holiday to the first quarter also effected attendance.

Total guest spending rose about 1 percent per visitor, as admissions revenue per person rose 3 percent, but was partially offset by a slight decrease in in-park revenue per person.

Income tax expense jumped to $32.4 million from $1.2 million.

Six Flags shares fell 46 cents, or 1.4 percent, to $35.39 in morning trading.

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