Six Flags Entertainment sees third quarter revenue growth

Six Flags theme parks were busy this summer and resulted 6 percent increase in revenue for the third quarter, the company reported Monday.

Grand Prairie-based Six Flags Entertainment Corp., which operates Six Flags Over Texas and Hurricane Harbor water park, both in Arlington, reported a $157.3 million profit for the quarter ending Sept. 30, or $1.64 a share, compared to net income of $105 million in the year-ago quarter, or $1.08 a share.

Attendance at its 18 parks in the U.S., Mexico and Canada grew 9 percent in the quarter, to 12.9 million guests, the company said. Attendance for the first nine months of the year also grew 9 percent, to 23.4 million guests.

Shares of Six Flags (ticker: SIX) closed Monday at $50.17 a share, up $1.24 a share.

Revenue grew to $575.2 million, from $541.8 million in the quarter, which included a jump in park admissions. The company said it booked deferred revenue of $115 million, a 27 percent increase, or $24 million, over the third quarter of 2014, from higher levels of season pass and membership sales.

Last year, the regional theme park company said profit was hurt by higher operating costs, which included a $78 million expense in stock-based compensation, or stock options used to reward executives. This year, the company paid $9.8 million in stock-based compensation.

“Our team has delivered yet another record quarter for our shareholders,” said Jim Reid-Anderson, Six Flags chairman, president and CEO, in a statement. The company released its earnings after the market closed Monday. It will host a conference call with Wall Street analysts this morning.

“Our season pass sales, membership plan and pricing initiatives continue to enhance the company’s performance, and fuel revenue and cash flow growth,” he said.

Guests buying a Six Flags season pass or membership program increased 25 percent from Sept. 30, 2014 to Sept. 30, the company said.

This story was originally published October 19, 2015 at 4:37 PM with the headline "Six Flags Entertainment sees third quarter revenue growth."