Summary: Six Flags Inc. Jul 06
- ID: 1832052
- July 2006
- Standard & Poors
The rating reflects regional theme park operator Six Flags Inc.'s high debt leverage, volatile profitability, and negative discretionary cash flow, driven by investments in new rides and attractions. The rating also considers recently weak attendance, higher-than-expected operating expenses, a longer time frame for business turnaround, and a very tight margin of compliance with covenants. These considerations are only partially mitigated by the size and diversity of the company's regional theme parks. Six Flags' parks are generally the largest and most extensive in their regions, and they benefit from significant barriers to entry. Most of the properties face limited direct competition, with the Los Angeles park, which is now for sale, as the only exception. Theme parks have significant fixed costs,...
Companies mentioned in this report are:
- Six Flags Entertainment Corp.
- Six Flags Theme Parks Inc.
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