Six Flags to reduce 2008 operating expenses

[PcMan]

Six Flags to reduce 2008 operating expenses; forecasts FY08 spending of $100M

NEW YORK (Thomson Financial) - Six Flags Inc. Wednesday said it would reduce its fiscal 2008 cash and operating expenses by $50 million to $60 million.

The chain of amusement parks, in a filing with the Securities and Exchange Commission, said $25 million to $30 million of the reduction was related to marketing expenses. The company said it would use two advertising agencies instead of three and that it would spend less on radio advertising. Instead, Six Flags said, it will focus on Internet advertising, 'where the teens are.'

The remainder of the reduction will be related to operations and could involve the removal of inefficient rides, the roll-out of a seasonal labor tracking system, and a reduction in headcount by means of an early retirement program. The company didn't say how big a headcount reduction might be.

Six Flags also forecast 2008 capital expenditures of $100 million, down from the $110 million forecast for 2007 and the $123 million recorded in 2006.

Shares of Six Flags rose 14.6% to $2.04 early Wednesday.

[rjholla2003]

So investors like teens, the interweb, and, of course, major operational costs cuts.

[peterpjr]

I wonder what this meas for staffing at the park this summer?

[GADVwow]

If the focus is supposed to be on Mom and the kids, why the sudden focus on the Internet...where "the teens are?"

My head hurts.

[GADVwow]

More:

http://www.bizjournals.com/washington/stories/2008/01/14/daily38.html

PARK SALES?  Two or three more???

[peterpjr]

More:

http://www.bizjournals.com/washington/stories/2008/01/14/daily38.html

PARK SALES?  Two or three more???

I missed that part.  I wonder which ones are on the chopping block?

[rjholla2003]

SFA maybe?  They've been making a lot of infrastructure improvements according to some news reports.  Before, I was thinking that they would sell it, then the cut hours made me really think that.  But when I found out about the improvements they made, I thought that maybe it wasn't that they were simply neglecting the park and didn't care, but that they needed to have the proper foundation first.

This makes me think they're fixing the issues so that they will get a decent price when they sell it off as a park.  Can't sell a lemon.

[Dubya91]

If the focus is supposed to be on Mom and the kids, why the sudden focus on the Internet...where "the teens are?"

My head hurts.

That really scares me as the focus to a goal is now not clear =/

This may not be the only company going into a, i guess, recession...

[GADVwow]

The slides from the investor presentation are now up:

http://library.corporate-ir.net/library/61/616/61629/items/275719/SIX_pres_011608.pdf

[rjholla2003]

That was fun to look at.  Thanks!

[Steve]

NHL would have more fans if they didn't have the lockout

[PcMan]

This was also noted during an investor conference Wednesday.

Six Flags also says it is in talks to open theme parks in the Middle East, India and East Asia, and may consider selling two or three existing parks to raise capital.

[Dubya91]

Sign, Parks in europe failed, why dive back into that hole....

[rjholla2003]

It seems they want to follow Disney's lead and let them foot the bill for building the parks, and simply reap the profits from branding/management

[PcMan]

I think it will work in these GROWING countries

 Middle East, India and East Asia

Dubai is going crazy with new Construction, Homes, High rises, parks,indoor skiing  etc.
and they operate year round
take a look here www.edibek.com/2007/03/13/dubai/
all these people need places to play
Dubai is the fastest growing city in the world

http://tinyurl.com/24gxys

http://images.google.com/images?q=Dubai+&hl=en&safe=off&rlz=1B3GGGL_enUS253&um=1&ie=UTF-8&sa=X&oi=images&ct=title