Six Flags Inc. Jul 06
- ID: 1832299
- July 2006
- Standard & Poors
Position as largest regional theme park owner; Limited direct competition, except in California; High barriers to entry; and High debt leverage, unlikely to be meaningfully reduced by the planned sale of nonstrategic parks. Confused brand positioning and reduced attendance from the core teen market as target audience expands to families; High seasonality, with nearly all of EBITDA earned between Memorial Day and Labor Day; Large number of parks, which increases fixed costs and hampers margins; and Negative discretionary cash flow likely for full-year 2006, for the third consecutive year. 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...
Companies mentioned in this report are:
- Six Flags Entertainment Corp.
- Six Flags Theme Parks Inc.
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Research Type: Full Analysis