Great Adventure Outpost
Industry => Industry News => Topic started by: WadeJ on December 11, 2006, 12:53:43 PM
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We should find out more tomorrow on the pending park sales. Hopefully SFMM doesn't become condos...
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Wade.. Will you post the link to the call on here tomorrow?
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I'm not sure when Wade will be on, and I wanted this up before the call (you can listen live):
http://biz.yahoo.com/cc/8/75568.html
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So far:
Family rides for 2007
2008 Thrill rides to return in the 5 million range NOT the 20 million and up
- Several Hall of Justices in other parks like SFNE
- Legend of Doom at SFNE
- More Charactors at all parks " we got to flood our parks with these Charactors"
-Thomas the train and friends in 3 parks,a railroad station etc by HIT Entertainment
"deal was just cut last night Dec 11th"
-Wiggles world as we already know, a 5 year deal 3 parks this year and 2 each year for the next 5
The wiggles tours show will promote wiggles world sales table and tickets
- Tony Hawk themed Rollercoaster like the Pandamonium (already annouced) Texas and another park TBA
- MTV agreement for Concerts "beefing up the concerts" every Thursday night + regular concerts + MTV concerts
- Coldstone Creamery deal 8 locations like the ones at Hershey park and own Six Flags flavor coaster crunch
- Heinze Deal offical ketchup will co-promote with peal away labels on the Ketchup bottles.
- Expanding Holiday in the Park in Warm weather areas Marine worls and Fiesta Texas for 2007.
- Dinning Panda Express will double locations and Tai and Greek food added
SFOT will open to 11pm daily
Laronde 40 year 40 events in 40 days
SFOG 40 year
SFKK Largest expansion, New water ride first of it's kind
Great Escape Tornado water ride open May 28th on weekend for Season pass holders to end of June
SF Great Adventure "doing alot there" Safari exploration station at the end of the Safari a separate gate price but free with Season pass, Animal shows etc.
redo Toll plaza.
One hour early open for season pass holders.
52,000 season passes sold at this time last year at end of year 2.5mil sold (alot in LA)
109,000 season passes sold so far this year
4 times group sales
Select Costco stores selling Season passes
No parks sold yet still ongoing
The 9 parks will be sold as ongoing concerns (means they will operate in 2007) no worries.
SFMM: every season pass bought will get a free Kids season pass (will be open and stay open if sold) goes with the other parks also.
Shapiro now done his speech
Now onto the CFO :
but I have to get out of here and can't listen anymore
they will have all this on Sixflags.com later today or soon
but Great adventure nothing we already don't know
Q and A phone in time so far 3 calls all Brokers like JP Morgaon etc. all $ related
increase cost due to wages / merits
30 million increase in TV and Radio ads (they are buying early)
more Outdoor ads like Billboards and Direct Mailings
Extending the Safari Season through November for Schools education
approx 35 million in asset maint. and technology upgrades
got to get out of here Dark keeps us updated 9:37am out
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Thanks for the update - keep us posted - Unfortunately, I can't listen at work right now.
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Woohoo! The Safari is now a seperate admission park. I think it is great and will help the Safari and GA improve. I agree, it is the most underutilized property they own.
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Maybe now SFMM employees might *NOT* feel as though the place isn't going to shut down next week.
I agree, the safari needed this boost. It needs a whole lot more to but this is a huge step in the right direction.
Those SP sales so far tell a very interesting tale - there are no MAJOR huge new rides like there was coming last year and yet, SP sales are nearly double. Gee, could it be the pricing?
edit:forgot the word not lol
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100 million on asset maintenance including 35 million on existing older rides!
Come on baby and hit RT.
All existing rides should be ready by March!
Insignificant parcels of land at SFSTL & SFGAm are on the market. No land at SFA or SFGAdv are on the market but SFGAdv has the highest investment possibilities. Land could go on the market for residential use should the housing market rebound.
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Safari will close later in the season as well. Nov.
More villains in costume
^Dan it's only 35million on asset maintenance and 65 million on new rides
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Dan, are you familiar enough with previous management to know if these numbers are better than years past?
That actually doees sound like a lot. Esp. when you consider the fact that there are no 15-35 million dollar mega coasters this season.
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Got it ;D
Characters which are in the public domain could be used for additions in '08. He uses Peter Pan as an example. This would be great for Fantasy Forest and Movie Town!
This year Shapiro is focusing on the family rides. He states that thrill rides will be added in '08.
I believe I remember a figure of 130 million in 2003. That was the year of 2 Supermans and a Scream.
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What's this, "SFKK, New water ride first of it's kind" ?
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Shapiro wants to focus on recruitment, training and retention. He notes how many employees leave in August for college during one of the busiest times of year. He will implement incentives to keep them here. The GMs already have heavy incentives to have higher guest retention.
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^maybe I should pick up a part time job running chiller.
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Anyone who gets info on where Thomas will be PLEASE share it with us. My son loves him I do hope it will be close or somewhere we can travel with him to . Boy do I wish it were here instead of the wiggles!! It all sounds good but I do hope that the customer service and rides being down become a big issue in the area of improvements.
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Ha ha ha ha Bubba.
Shapiro mention something about being in talks with a car manufactuer to have a car lot where people could rent cars to drive through the safari.
I hope it's Ford. I want to tear up the Safari in a Mustang. :P (a joke of course)
Diana I didn't hear him be specific about the new water ride at SFKK but he did mention how they will be refocusing on the water park area since it is the park's biggest draw.
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Sounds like he wants to turn the safari into Jurassic park. Hopefully our skilled drivers wont flip over the Land rover or something worse happens...like a kid getting eaten by a lion.
Serious the Safari sounds a whole lot better already.
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I was just thinking earlier this year after a trip through the safari that if something doesn't get done soon, it will be no more.
The exhibits were in horrible shape, the landscaping was bad, and even the road you drive on is in bad shape. The Safari could actually be a MAJOR drawl again for the theme park but they need to clean it up a bit.
To me, everything I hear so far are huge steps in the right direction.
When was the last time any serious capital was put into the safari?
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Still mentioning they expect to reach a decision by the end of this year...
From Reuters:
NEW YORK, Dec 12 (Reuters) - Theme park operator Six Flags Inc. (SIX.N: Quote, Profile , Research) said on Tuesday it still expects to reach a decision on the potential sale of nine parks by the end of the year.
It said all of the parks under consideration for sale would be sold only as ongoing concerns and would be open for business in 2007.
Six Flags said single-day main gate ticket prices for all the company's parks will not be increased in 2007.
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It amazes me how fast this information hits the wire - and our side news bar.
:35AM Six Flags provides game plan for 2007 (SIX) 5.70 +0.11 : On a call this morning with investors and analysts, the co's President and CEO Mark Shapiro discussed new Corporate Alliances and revealed new entertainment and marketing initiatives for the co's parks in 2007. These include: Thomas & Friends: In an agreement with HIT Entertainment, a leading provider of quality preschool entertainment, The Wiggles, the co will build unique "Wiggles World"-themed areas in its US branded parks over the next five years. Tony Hawk, expanding on the co's relationship with Tony Hawk, the co will introduce two Tony Hawk- themed family spinning coasters in 2007. Holiday in the Park, the co will add its Holiday in the Park experience, where parks feature holiday and winter themed shows and events during December, "This will be the first year we're able to put our 'family-friendly' stamp on a full Six Flags season, from preparation to execution. Our plans to diversify the family entertainment experience are well underway and that strategy will permeate the entire company," The co also reiterated that it would reach a decision on potential asset sales by the end of the year and added that if the parks are sold it will be strictly as ongoing concerns. "Whether we continue to own these parks or sell them, all nine parks under consideration will be open for business in 2007 and beyond,"
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And Finally, the official press release from this mornings call:
Six Flags Provides Game Plan for 2007
Tuesday December 12, 9:30 am ET
Park Sale Process Continues; Company States That If Sold, Parks Will Continue To Operate As Ongoing Concerns
NEW YORK, Dec. 12 /PRNewswire-FirstCall/ -- On a call this morning with investors and analysts, Six Flags, Inc. [NYSE: SIX] President and CEO Mark Shapiro discussed new Corporate Alliances and revealed new entertainment and marketing initiatives for the Company's parks in 2007. These include:
* Thomas & Friends(TM): -- In an agreement with HIT Entertainment, a
leading provider of quality preschool entertainment, Six Flags will
build special Thomas & Friends playlands in several Six Flags parks in
2007. The themed areas will include attractions and rides featuring
Thomas the Tank Engine and other friends from the Island of Sodor. In
addition, Sir Topham Hatt, Controller of the Railway, will be available
daily for meet & greets and photo opportunities. This deal marks the
first of its kind for Thomas & Friends with a US amusement park.
* The Wiggles. In an agreement with world-leading children's entertainers
The Wiggles, Six Flags will build unique "Wiggles World"-themed areas in
its US branded parks over the next five years. Six Flags parks will be
the exclusive North American destinations to find "Wiggles Worlds,"
three of which will debut at Six Flags for the 2007 season, including
one at Six Flags Great Adventure in Jackson, NJ. These areas will
include Wiggles-themed rides; a stage show performed by Dorothy and
Friends with multiple daily performances; play areas; monitors for
showing Wiggles video clips and songs; a Yummy Yummy Cafe; and kiosks to
sell Wiggles merchandise. The Wiggles will also market Six Flags during
their annual North American tour.
* Tony Hawk. Expanding on the company's successful relationship with
skateboard legend Tony Hawk, Six Flags will introduce two Tony Hawk-
themed family spinning coasters in 2007. The rides will be designed as
full extreme sports experiences and Tony Hawk merchandise will be
available at the ride exit. The agreement calls for additional Tony
Hawk rides at more Six Flags parks over the next several years. Hawk is
one of the top ten most recognizable athletes in the world among 12-to-
24-year-olds and has created one of the best-selling award-winning video
game franchises of all time with over $1 billion in sales. He also has
his own clothing line and next year will release an animated movie.
* mtvU. MTV's 24-hour college network, broadcast to more than 7 million
students at over 750 institutions nationwide, will bring emerging
artists bubbling up on the college music scene to five Six Flags parks
for mtvU-branded concerts during Summer 2007. The concerts will
feature two to three bands per show, which will include a headlining act
and the area's best local college act. mtvU also will put its marketing
resources behind these concerts, which will be in addition to Six Flags'
previously announced weekly Summer Concert Series.
* Cold Stone Creamery. Cold Stone Creamery, known for serving the
highest quality, most creative ice cream experience, will become a Six
Flags Corporate Alliance partner. Under this multi-year agreement, Six
Flags will open and operate Cold Stone Creamery locations in its branded
parks; issue in-store promotional offers at Cold Stone Creamery stores
around the country; and a Cold Stone Creamery ice cream flavor will be
named for Six Flags and offered at stores nationwide.
* Heinz. Heinz, the most global U.S.-based food company with a world-
class portfolio of powerful consumer brands, will become a Six Flags
Corporate Alliance partner. Through a new multi-year agreement, Heinz
will become the 'Official Ketchup of Six Flags Theme Parks,' and receive
branding in the parks. Six Flags will use Heinz Ketchup and other
condiments at park restaurant locations and the companies will
collaborate on a number of co-branded marketing promotions, including
peel-away labels on Heinz Ketchup bottles where consumers can win prizes
by going online to www.sixflags.com.
* Holiday in the Park. The Company will add its popular Holiday in the
Park experience, where parks feature holiday and winter themed shows and
events during December, to two new parks next year, Six Flags Fiesta
Texas in San Antonio and Six Flags Marine World in Vallejo, CA.
* Expanded Dining Experiences. Six Flags will continue to diversify the
park dining experience, adding Panda Express and Greek cuisine from
Ted's Coney Island to its food lineup in several parks.
"This will be the first year we're able to put our 'family-friendly' stamp on a full Six Flags season, from preparation to execution. Our plans to diversify the family entertainment experience are well underway and that strategy will permeate the entire company," said Six Flags President and CEO Mark Shapiro.
"These new programs and others in development will build on the improved guest experience which is changing the way people think of Six Flags. I am optimistic all our initiatives will coalesce in 2007, making the Six Flags brand synonymous with an entertainment experience that delivers for the entire family."
Beyond the national deals, individual Six Flags parks are also planning to launch a variety of entertainment and celebratory offerings for the upcoming year, including:
* Six Flags Over Texas. Six Flags Over Texas has announced that it will
join with Cirque Productions to launch an original stage show, Cirque
Dreams Coobrila, an acrobatic extravaganza.
* La Ronde. La Ronde, the Company's Montreal-based park, will be
celebrating its 40th Anniversary in 2007 with 40 events over 40 days.
* Six Flags Over Georgia. Six Flags over Georgia will mark its 40th
Birthday this year, and is planning a variety of activities focused
around the history of the park.
* Six Flags Kentucky Kingdom. Six Flags Kentucky Kingdom announced that
2007 will mark the largest expansion in its history, a re-launch of its
popular waterpark, with a new water ride featuring cutting-edge
technology that will be the first of its kind in North America.
* The Great Escape. The Great Escape in Lake George, NY announced a new
Tornado water ride for 2007. As a special offering for the park's
biggest fans, only Six Flags 2007 Season Passholders will be able to
ride the Tornado on weekdays from May 28 until the park's full-time
season begins on June 22, 2007.
* Six Flags Great America. Operation SpyGirl, a new original live action
adventure show created and produced exclusively for Six Flags by the
creator of the Emmy- and Golden Globe Award-winning dramatic series
"24," will launch at Six Flags Great America in Gurnee, IL.
The Company also reiterated that it would reach a decision on potential asset sales by the end of the year and added that if the parks are sold it will be strictly as ongoing concerns.
"Whether we continue to own these parks or sell them, all nine parks under consideration will be open for business in 2007 and beyond," said Shapiro. "In fact, to reward loyal customers of Magic Mountain in California, we're announcing that each season pass purchased by the end of February will come with a free kids season pass."
In addition, Shapiro announced that single-day main gate ticket prices for all Six Flags parks will not be increased for 2007.
Six Flags, Inc. is the world's largest regional theme park company. Founded in 1961, Six Flags is celebrating its 45th Anniversary in 2006. Six Flags, Inc. is a publicly-traded corporation (NYSE: SIX - News) headquartered in New York City.
Forward Looking Statements:
The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. These risks and uncertainties include, among others, Six Flags' success in implementing its new business strategy. Although Six Flags believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including factors impacting attendance, such as local conditions, events, disturbances and terrorist activities, risk of accidents occurring at Six Flags' parks, adverse weather conditions, general economic conditions (including consumer spending patterns), competition, pending, threatened or future legal proceedings and other factors could cause actual results to differ materially from Six Flags' expectations. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the caption "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in Six Flags' Annual Report on Form 10-K for the year ended December 31, 2005, which is available free of charge on Six Flags' website http://www.sixflags.com.
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Anyword on a replacemnt for Freefall ?
Also for those who missed the Call can listen to it here
http://biz.yahoo.com/cc/8/75568.html
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Only news I was able to get was "future expansion". So with that said, I would expect it to be grass with some nice landscaping for 2007.
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^ A nice big 46 in flowers , I hope!
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More like 3 or 4 Vendor carts and soda machines on concrete surface.
Ans the Safari will make it more interesting this year and the early openings I like.
The Cape May Zoo (free) has Displays and walkthough areas (check it out it's NICE)
I wonder if they will have something like that with shows and or interactive ?
Hope to see some plans/drawings soon.
The SFKK gives me a reason to go back there now.
I was there this year for only 2 hours and got bored everything was closed.
But it's not out of the way so a return visit may be in the works.
It was only about 10 minutes from where we stayed on my Midwest trip (Ramada Downtown North)
I recommend free wifi and cont breakfast 400 feet of main interstate $47 a night.
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With the MTV-U concert thing, if they bring K-OS (http://www.k-osmusic.com/) to Great Adventure, I'm taking the day off. Most underrated rapper EVER. Positive message, doesn't curse, great story, wonderful lyricist. He's a real rapper versus the crappers flooding the radio. Unfortunately the only place you see or hear him is MTV-U
This season sounds really exciting. It's put up or shut up time and so far they're putting it up big. That is a very large number for capital improvements/ maintenance, so I look forward to some intense park beautification. Rides being ready in March is excellent. Absolutely excellent. Last year you could feel that it was a year in extreme transition where a gameplan was severely lacking. This year should be a lot better.
In the words of Ali G: Mr. Shapiro, big up yourself.
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Sounds very nice from what I just read! I will be so happy if everything is running great at the beggining of the year! Great news about the Safari as well!
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And I'll be even happier if everything is STILL running great in mid-July and on fall weekends.
The park almost always opens great...it's execution over the ENTIRE season that is often lacking.
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I guess no word b4 the new year on the sale of the parks ?
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Guess not. I don't know if this is good or bad?
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For those that don't notice these things, checkout the video link on the left news bar. Shapiro was interviewed on Mad Money and mentions the sales (if any) being announced within a week :( .
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I caught the end of it and thought it was Shapiro.
And I did notice the stock price rise the last few days.
Also Crammer's picks for 2007
Google
#3 Cisco
#2 Apple
#1 NYX New York Stock Exchange
Ok my post is wondering like usual.
So we will see what happens and what ever is the outcome I hope the Stock climbs on the news.
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The stock has been climbing for the past several days. If the announcement is not what the market expects, it may go down significantly.
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I wonder what is going on with the sale of the other parks? They said they were confident that they would have a decision by the end of 2006.
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When Shapiro called in to Cramer he said the announcement was another week or two away. I have a feeling there will be a couple of the smaller ones sold, with the biggies (or at least MM) staying with us a little longer.
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I hope so. I love Magic Mountain. I am sitting here now trying to plan a weekend trip out there in Feb to ride some coasters. I hate this time of year. I really want some FUN.
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Wrong stock symbol Peter! Although I guess I really want some SIX doesn't sound to good lol.
I'm actually considering a marathon trip out west to hit MM as well if it does get the axe. We know for certain it will be open all this year regardless of the sale so at least we have a little bit of time.
Personally, I was hoping to wait until next year for everything to wrap up at Disneyland so that I wouldn't need to go back there again so soon lol.
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Wade, chances are you won't get all the coasters at SFMM in one trip...
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Yep. That sneaky Psyclone made me wait four park trips before it would let me ride it! :)
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Ninga, Revolution, Tatsu was being built, one side of Collossos were all closed.
I don't even count Flashback...
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Imagine how the one time visitor to Great Adventure from the West Coast feels when they arrive and find many, many rides closed.
If the park only improves one thing this season, I hope it is having all the rides open all the time if at all possible (even better, with all available trains...)
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Major coasters that suffered major downtime (2+ days) this year:
Great American Scream Machine
Kingda Ka
Batman and Robin: The Chiller
Runaway Mine Train
That's pretty bad.
I talked to a couple of enthusiasts from Ohio 2 seasons ago (Ka's Innagural) and they came when it was closed. They weren't that mad to be honest, just dissapointed and shocked.
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I don't consider 2 days serious downtime...unless you mean contiguous days. Even with that I'm more of a 3 day for it to be moderate and 5 for serious person. 2 days doesn't really sound that bad out of an entire summer.
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It's been done. And Magic Mountain remains a Six Flags park!
Six Flags Agrees to Sell Seven Parks for $312 Million
Thursday January 11, 8:40 am ET
Six Flags Magic Mountain and Hurricane Harbor in Valencia, CA Excluded from Sale
PARC 7F - Operations Corporation Will Purchase and Operate the Seven Parks; Financing Committed by CNL Income Properties Inc.
NEW YORK, Jan. 11 /PRNewswire-FirstCall/ -- Six Flags, Inc. (NYSE: SIX - News) announced today that it has entered into an agreement to sell three of its water parks and four of its theme parks to PARC 7F-Operations Corporation (PARC) of Jacksonville, FL for $312 million, consisting of $275 million in cash and a note receivable for $37 million. The seven parks are: Six Flags Darien Lake in Buffalo, NY; Six Flags Elitch Gardens in Denver, CO; Frontier City and the White Water Bay water park in Oklahoma City, OK; SplashTown in Houston, TX; Waterworld USA in Concord, CA; and Wild Waves and Enchanted Village in Seattle, WA. The seven parks are estimated to have generated approximately $30 million of Park EBITDA(1) and 3.6 million of attendance in 2006.
Six Flags Magic Mountain and the adjacent Hurricane Harbor water park in Valencia, CA are not included in this transaction and will be fully operational and open for business in 2007 and beyond.
"We're pleased with the sale price for this portfolio of parks, particularly since we were able to retain the Magic Mountain parks," said Mark Shapiro, Six Flags President and CEO. "This transaction confirms the value inherent in our major market branded parks."
The disposition of these seven parks is a key component of the Company's overall strategy to reduce debt and enhance operational and financial flexiblity. Company management stated earlier this year that its intent was to reduce debt by several hundred million dollars over the next several years. The agreement announced today, combined with the June 2006 sale of the land underlying its Houston AstroWorld theme park for $77 million, will result in gross cash proceeds of $352 million for debt reduction.
In their most recent operating years, the seven parks to be sold and the Houston AstroWorld park contributed approximately $35 million(2) of Park EBITDA, implying a valuation multiple of approximately 11 times the combined Park EBITDA.
"My new management team had several key priorities for Six Flags in 2006: transitioning our brand to attract families; cleaning up the parks; reducing capital expenditures; establishing a Corporate Alliances department to forge sponsorship and marketing partnerships with major consumer brands; increasing guest spending; and selling assets as a means to reduce the company's debt," said Shapiro. "With this announcement, all those steps are in full swing and we now have our agenda focused squarely on the 2007 season. A targeted increase in our media spend and our strong new entertainment alliances have us poised to realize attendance gains, making for a successful 2007 season."
The Company noted that obligations with respect to 2007 season passes and any committed park events, including group bookings and the previously announced Dream Nite promotion, will continue to be fulfilled under the new park ownership. Although the two Six Flags-branded parks involved in the sale, Darien Lake in Buffalo, NY and Elitch Gardens in Denver, CO, will no longer carry the Six Flags brand under the new ownership, any 2007 season passes purchased at either of those parks will continue to be honored at all Six Flags branded parks throughout the 2007 season.
As part of the arrangements for the acquisition, PARC will simultaneously sell the parks to CNL Income Properties Inc. (CNL), a Florida-based real estate investment trust, and lease back the parks from CNL pursuant to long- term leases. The sale is subject to satisfaction of customary closing conditions, including clearance under the Hart-Scott-Rodino Act and receipt of necessary third-party consents. The transaction is expected to be completed in March 2007.
The Company will conduct a call with analysts and investors on Friday, January 12, 2007 at 12:00 pm EST to discuss the transaction and revise its 2007 guidance to reflect the sale transaction. The teleconference will be broadcast live to interested parties as a listen-only Webcast on http://investors.sixflags.com/.
Six Flags, Inc. is the world's largest regional theme park company. Founded in 1961, Six Flags celebrated its 45th Anniversary in 2006. It is a publicly-traded corporation (NYSE: SIX - News) headquartered in New York City.
Forward Looking Statements:
The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. These risks and uncertainties include, among others, Six Flags' success in implementing its new business strategy. Although Six Flags believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including factors impacting attendance, such as local conditions, events, disturbances and terrorist activities, risk of accidents occurring at Six Flags' parks, adverse weather conditions, general economic conditions (including consumer spending patterns), competition, pending, threatened or future legal proceedings and other factors could cause actual results to differ materially from Six Flags' expectations. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the caption "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in Six Flags' Annual Report on Form 10-K for the year ended December 31, 2005, which is available free of charge on Six Flags' website http://www.sixflags.com.
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Take note of the new links in the left news bar. Motley Fool and Thestreet.com are already declaring this a win.
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I would agree that losing/selling 5 water parks isn't a bad thing. As for the 2 parks SFDL hasn't had a major ride installed since S:ros in 99 and Denver had the half pipe installed in 2004.
I totally read that wrong sorry, 3 water parks and 4 amusement parks , see how much I knew about the other properties. Not a big loss to me !
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So will the parks sold operate in 2007 or just shut down for good?
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http://www.denverpost.com/broncos/ci_4992497
http://www.wben.com/news/fullstory.php?newsid=06617
The part I don't like is PARC will sell the parks to real estate investment trust CNL Income Properties Inc. and will lease them back from CNL.
But to answer your question (oddly enough since you clued me into the above articles lol) is that all obligations will be fullfilled for 2007.
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So will the parks sold operate in 2007 or just shut down for good?
As I read it YES they will operate and the Parks that are sold Season passes still good at other Six Flags parks, not sure if it's the other way around (if I can use my Great Adventure pass at the sold parks) ?
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http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aVAL1.kl3xN8
Six Flags to Sell 7 Parks for $312 Million to PARC (Update3)
By Josh Fineman
Jan. 11 (Bloomberg) -- Six Flags Inc., which is trying to reduce $2.2 billion of debt, plans to sell seven theme parks for $312 million to a company led by former amusement park executives. The stock had its biggest gain in two months.
The parks are: Six Flags Darien Lake in Buffalo, New York; Six Flags Elitch Gardens in Denver; Frontier City and the White Water Bay park in Oklahoma City; SplashTown in Houston; Waterworld USA in Concord, California; and Wild Waves and Enchanted Village in Seattle, the company said today in a statement. Attendance at the parks was 3.6 million in 2006.
The parks generated $30 million of cash flow in 2006 and sale proceeds will go to cutting company debt, New York-based company said. The sale by the second-biggest U.S. theme-park operator doesn't include Magic Mountain near Los Angeles, one of its biggest parks. Six Flags spokeswoman Wendy Goldberg wasn't immediately available for further comment.
``It just an outstanding deal,'' said David Miller, an analyst at Sanders Morris Harris Group Inc. in Los Angeles. ``With this deal of $312 million, Six Flags will now have $350 million in fresh cash available for debt reductions.'' Miller, who doesn't own any Six Flags shares, has a ``strong buy'' rating on them.
Former Six Flags Executive
PARC 7F-Operations Corp. of Jacksonville, Florida, an affiliate of PARC Management LLC, will buy the parks. PARC Management Chairman Michael Jenkins, a former vice president of Six Flags over Texas, was among a group of people who helped oil executive Angus Wynne found the theme-park brand in 1961.
PARC Management was formed by Jenkins, who has 40 years of leisure-industry experience and produced more than 200 Broadway musicals, and Randal Drew, who was an executive with Odgen Park Management. Odgen owned the Wet N' Wild and Raging Waters brands, Richard Jett, a PARC spokesman said in an interview.
PARC will simultaneously sell the parks to CNL Income Properties Inc., a Florida-based real estate investment trust that owns 52 leisure properties in the U.S. and Canada, and lease them from CNL.
The sale to PARC is expected to be completed in March, Six Flags said. It includes $275 million in cash and a note receivable for $37 million.
Shares of Six Flags gained 42 cents, or 7.7 percent, to $5.85 as of 12:39 p.m. in New York Stock Exchange composite trading, for the biggest increase since Nov. 3. It slumped 32 percent last year.
Six Flags, which ranks behind Walt Disney Co., has lost $884 million over the past seven years through 2005 amid falling attendance and more spending on new rides. Revenue likely fell 2 percent last year as attendance dropped 14 percent to 28 million customers, Chief Financial Officer Jeff Speed said last month.
CEO Moves
The purchase price equal 10.4 times earnings before interest, taxes, depreciation and amortization, Miller said. Six Flags is selling for the same multiple that Blackstone Group LP paid for Legoland in early 2005.
Washington Redskins owner Daniel Snyder, the company's largest investor, won a three-month battle with former chief executive officer Kieran Burke for control of Six Flags in 2005.
Six Flags CEO Mark Shapiro banned smoking, hired staff to improve the parks' appearance and boosted entertainment offerings with fireworks, shows and parades.
Shapiro also wants to increase revenue with corporate sponsorships, including deals with Home Depot Inc., H.J. Heinz Co. and Papa John's International Inc.
The company's third-quarter net income fell 16 percent to $164.7 million as sales slipped 1 percent to $540.7 million.
Credit-Default Swaps
The perceived risk of owning Six Flag's bonds fell today, according to traders who bet on the creditworthiness of companies in the credit-default swap market.
Credit-default swaps based on $10 million of Six Flags' bonds fell less than a percent today to $580,000 from $585,000 yesterday, according to data compiled by London-based CMA Datavision. Before today, the five-year contracts had risen 11 percent since Nov. 7. An increase in price indicates deterioration in the perception of credit quality; a decline suggests improvement.
Credit-default swaps are financial instruments based on bonds and loans that are used to speculate on a company's ability to repay debt. They were conceived to protect bondholders against default and pay the buyer face value in exchange for the underlying securities should the company fail to adhere to its debt agreements.
To contact the reporters on this story: Josh Fineman in New York at jfineman@bloomberg.net
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http://www.denverpost.com/broncos/ci_4992497
Elitch's sold in multi-park deal
by Bloomberg News
Article Created: 01/11/2007 08:12:37 AM MST
Elitches Gardens in downtown Denver Six Flags Inc., which is trying to reduce $2.2 billion of debt, plans to sell seven theme parks, including Elitch Gardens in Denver, for $312 million to a company led by a former Six Flags executive.
The parks are: Six Flags Darien Lake in Buffalo, New York; Six Flags Elitch Gardens in Denver; Frontier City and the White Water Bay water park in Oklahoma City; SplashTown in Houston; Waterworld USA in Concord, California; and Wild Waves and Enchanted Village in Seattle, the New York-based company said in a statement today.
The parks generated $30 million of cash flow in 2006 and had attendance of 3.6 million, Six Flags said. The company, which will use the proceeds to cut debt, announced plans to sell the parks in June.
One of its biggest parks, Magic Mountain near Los Angeles, isn't included in the sale.
PARC 7F-Operations Corp. of Jacksonville, Florida will buy the parks.
Its chairman is Michael Jenkins, a former vice president of Six Flags over Texas.
PARC will simultaneously sell the parks to CNL Income Properties Inc., a Florida-based real estate investment trust, and lease them from CNL.
The sale is expected to be completed in March, Six Flags said. It includes $275 million in cash and a note receivable for $37 million.
Shares of Six Flags, the second-largest U.S. theme-park operator behind Walt Disney Co., gained 40 cents, or 7.4 percent, to $5.83 as of 9:44 a.m. in New York Stock Exchange composite trading, for the biggest increase since Nov. 3. It slumped 32 percent last year.
CEO Moves Washington Redskins owner Daniel Snyder, the company's largest investor, won a three-month battle with former chief executive officer Kieran Burke for control of Six Flags in 2005.
Six Flags CEO Mark Shapiro banned smoking and hired staff to improve the parks' appearance, while adding entertainment including fireworks, shows and parades.
Shapiro also wants to increase revenue with corporate sponsorships, including deals with Home Depot Inc., H.J. Heinz Co. and Papa John's International Inc.
The company's third-quarter net income fell 16 percent to $164.7 million as sales slipped 1 percent to $540.7 million.
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http://www.wben.com/news/fullstory.php?newsid=06617
Six Flags Darien Lake Sale Agreement
Thursday, January 11, 2007 10:35 AM - WBEN/AP
A deal to sell Six Flags Darien Lake has been reached, and property of the Genessee County theme park is expected to transfer to the new owner in March.
Theme park operator Six Flags Inc. said Thursday it will sell seven parks to Jacksonville, Fla.-based PARC 7F-Operations Corp. in a $312 million deal.
Shares of Six Flags gained 59 cents, or 10.9 percent, to $6.02 in morning trading on the NYSE.
The transaction, which consists of three water parks and four theme parks, includes $275 million in cash and a note receivable for $37 million. Six Flags said its Six Flags Magic Mountain and adjacent Hurricane Harbor water park in Valencia, Calif. are not included in the deal and will be fully operational and open for business in 2007 and beyond.
The seven parks also include Six Flags Elitch Gardens in Denver; Frontier City and the White Water Bay water park in Oklahoma City; SplashTown in Houston; Waterworld USA in Concord, Calif.; and Wild Waves and Enchanted Village in Seattle.
PARC will sell the parks to real estate investment trust CNL Income Properties Inc. and will lease them back from CNL.
The sale is part of Six Flags' overall strategy to reduce debt and enhance its operational and financial flexibility. The sale, combined with a June 2006 sale of land underlying its Houston AstroWorld theme park for $77 million, will result in proceeds of $352 million to be used for debt reduction, according to the company.
Obligations for 2007 season passes and any committed park events will continue to be fulfilled under the new ownership. While the Darien Lake and Elitch Gardens sites will not longer carry the Six Flags brand under the new ownership, any 2007 season passes purchased at the two parks will continue to be honored at all Six Flags branded parks for the 2007 season.
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And FINALLY, just in case some of you were wondering what the heck PARC is...
http://www.parcmanagement.com/index2.htm
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I guess they used the money they saved from web development to buy the parks?
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So SF will be keeping Magic Mountain?
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For now...yes.
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And that's exactly what the 6F spokesperson very carefully said. There's an article in the LA Times, where she said something along the lines that now was not the time to be selling Magic Mountain. (Translation: with California real estate down at the moment, we think we can get more later?)
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Well, the conference call had a few good comments in it. Mostly, the season pass sales being up 50% compared to this time last year and group bookings being up 34%.
From Reuters:
NEW YORK, Jan 12 (Reuters) - U.S. theme park operator Six Flags Inc. (SIX.N: Quote, Profile , Research) said on Friday it expects to post a net loss from continuing operations in 2006, but added early indicators for this year were strong.
The company said on a conference call that, so far, group bookings for the 2007 season were up 34 percent over last year and it had sold 50 percent more season passes than it ever had at this point in the season before.
Group bookings and season pass sales account for about half of the attendance at its parks.
Six Flags' shares were up more than 6 percent in late trading on the New York Stock Exchange.
The amusement park operator has been reworking its business since a shake-up of its board and top management after investor Daniel Snyder won a long-running battle for control of the company in 2005.
Six Flags has since been focusing on families, boosting promotional partnerships and selling some parks.
The company said on Thursday it had agreed to sell three water parks and four theme parks for $312 million.
Six Flags, which operates about 30 amusement parks in North America, expects total sales in 2006, excluding parks being sold, will be about $940 million, down 2 percent over the previous year, as attendance dips 13 percent, but revenue per capita rises 14 percent.
Excluding parks being sold and management change costs, it expects to report 2006 adjusted earnings before interest, taxes, depreciation and amortization of $190 million to $195 million, compared with $260 million in 2005.
Six Flags shares were up 40 cents at $6.30 on the NYSE. Its shares have traded in a 52-week range of $11.93 to $4.53.
? Reuters 2007. All Rights Reserved.
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Does anyone have the link for the LA times article?
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Six Flags retains Magic Mountain
By Alana Semuels, Times Staff Writer
January 12, 2007
Magic Mountain's corporate roller-coaster ride is over for now: The Valencia theme park is no longer for sale.
Park owner Six Flags Inc. announced Thursday that it had sold seven of its 30 theme parks and water parks — but not Magic Mountain, which local authorities feared would be sold as real estate.
"It became abundantly clear to us that this is going to be a great season," Six Flags spokeswoman Wendy Goldberg said. "This is not the time to sell Magic Mountain."
New York-based Six Flags, which said in June that it would try to sell some of its 30 parks to repay debt, announced the sale of seven properties for $312 million. Its stock jumped 47 cents, or 8.66%, to $5.90, on the news Thursday.
Local authorities expressed relief that Magic Mountain, which generates more than 3,000 jobs for the region, will stay put.
"This is good news for the companies who are tied to the hospitality and tourism industry and for the many vendors who supply them with everything from soft drinks to uniforms and towels," said Larry Mankin, president and chief executive of the Santa Clarita Chamber of Commerce. "It was the right thing to do."
Mankin also said city discussions to rename Magic Mountain Parkway, an idea that rankled the theme park owner, had been dropped.
Six Flags sold the seven parks to Jacksonville, Fla.-based PARC 7F-Operations Corp. PARC simultaneously sold the parks to CNL Income Properties Inc., which will then lease the parks to PARC under a 20-year lease, with the option to renew.
CNL spokeswoman Carolyn Gosselin said the seven properties, which are located in Buffalo, N.Y., Denver, Houston, Seattle, Oklahoma City and Concord, Calif., would continue to operate as theme parks.
"We believe there is great opportunity in these parks," she said. "We have contracted with park management to return them to their original glory."
Six Flags has been trying to return its parks to their former glory as well, under new management. Former ESPN executive Mark Shapiro became chief executive in December 2005 after Washington Redskins owner Daniel Snyder won a proxy battle that resulted in the ousting of previous management. Shapiro has vowed to make Six Flags parks more family-friendly.
Marketing deals with companies such as Papa John's International Inc. and Home Depot Inc. make Magic Mountain an important part of the Six Flags portfolio, said Jeff Putz, chief editor of Coasterbuzz.com, an industry website.
Analyst opinion about the sale was mixed.
Although the $312 million in proceeds from the sale will help the company ease its "bloated" balance sheet, Six Flags originally expected $750 million when it first announced it would explore the sale of the parks, said Katherine Styponias, an analyst at Prudential Equity Group.
She speculated that the firm might be holding onto Magic Mountain until the park began to perform better and then would sell it for a higher price.
But David Miller, an analyst and managing director at Sanders Morris Harris in Los Angeles, said the company made the right call in keeping Magic Mountain.
This is especially important in a region with many families looking for an alternative to Disneyland, he said.
"Los Angeles still doesn't have that many day consumer-oriented theme parks," he said. "There's more than enough room in the market."
http://news.google.com/news/url?sa=t&ct=/0-1&fp=45a822c92888e95e&ei=X2GoRaHqDsXkHNCBzbEC&url=http%3A//www.latimes.com/business/la-fi-sixflags12jan12%2C1%2C7764343.story%3Fcoll%3Dla-headlines-business&cid=1112616753
You must be registered at the site, though.
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Very Smart move, cutting the dead weight holding the chain down.
As for not selling MM, do you think its possible that they are gonna make the park sparkling and so spectacular that it will increase its value significantly?
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I think they are just worried about the value of the land , not so much the park. Hopefully they do make the park "sparkle" again, that way they could increase revenue and never consider selling it again. But I doubt it.
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And I think when and if California real estate values again hit historic highs, Magic Mountain is most probably toast.
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I think they are just worried about the value of the land , not so much the park. Hopefully they do make the park "sparkle" again, that way they could increase revenue and never consider selling it again. But I doubt it.
It's about how you market the product, right now things can be taken for it to seem alot better then it really is
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But if you do that, when people figure out it is marketed as better than it really is, and they will, they will do what they did at Six Flags Worlds of Adventure, which ultimately resulted in its sale...they will quit coming and tell all of their friends. Plus, SFWofA had an edge that MM doesn't have. It was new. People went to see it. Once. Most of them. And, with the huge crowds, poor service, and sloppy operations, most didn't return. Cedar Fair is still fighting to get them to return.
Frankly, I don't know what they can do to improve Magic Mountain AND get people to come back. It's not going to be easy. That place has a simply horrid reputation, which is one of the two major reasons they put it up for sale in the first place (the other was land values).
That's why I say when land values recover, it is apt to be sold, and probably not for a park.