GRAND PRAIRIE -- Third-quarter profit rose 31 percent at Six Flags Entertainment, the company said Wednesday, but that wasn't enough to prevent its stock from falling nearly 10 percent as guest spending fell short of expectations.
The Grand Prairie-based theme park operator, which owns Six Flags Over Texas and Hurricane Harbor in Arlington, said net income was $253 million for the period, or $4.33 a share, compared with $192.8 million, or $3.43 a share, in the year-ago quarter.Revenue was $485 million, up $10 million, or 2 percent, driven by an increase in admissions revenue, the company said."Cash flow is growing nicely," Six Flags CEO Jim Reid-Anderson said in a conference call with Wall Street analysts. "Six Flags has shown this business can generate high recurring revenue. We feel fantastic about where we are."Still, shares of Six Flags (ticker: SIX) declined $6.18, or 9.9 percent, to close at $56.16.In the quarter, total guest spending declined slightly to $40.56 per person, mostly because of the company's effort to sell more season passes. Season pass holders tend to spend less per visit than a single-day visitor, but they tend to spend more across the season overall. Season passes for 2013 went on sale Aug. 30.Admissions revenue per capita increased slightly to $23.51, the result of higher prices. Attendance at the company's 19 parks increased 3 percent to 11.5 million guests, Six Flags said.Reid-Anderson said attendance for the year has grown by 8 percent, to 25.6 million, and is "headed north." Four parks will host Holiday in the Park events this year.The company has focused on selling season passes to increase revenue, Reid-Anderson said. Sales of season passes for 2013 are already showing a double-digit increase over last year.This report includes material from The Associated Press.Sandra Baker, 817-390-7727Twitter:@SandraBakerFWSTHave more to add? News tip? Tell us
