Largest regional theme park owner by number of parks (second in EBITDA behind Cedar Fair); and High barriers to entry. Confused brand positioning and reduced attendance from the core teen market as target audience expands to include families; High debt leverage, which was not improved from the sale of nonstrategic parks; Sustained, significant negative discretionary cash flow; High seasonality, with nearly all of EBITDA earned between Memorial Day and Labor Day; and Large number of parks, which increases fixed costs and hampers margins. The rating on Six Flags Inc. reflects the company's operating challenges, weak profitability, negative discretionary cash flow, and increasing debt leverage that asset sales have not meaningfully addressed. The company's turnaround effort has been more challenging than...
Companies mentioned in this report are:
- Six Flags Entertainment Corp.
- Six Flags Theme Parks Inc.
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