Six Flags posts fourth-quarter profit, names new CEO

Keeping more of its theme parks open during the Halloween and Christmas holiday seasons is paying off for Six Flags Entertainment.

The Grand Prairie-based firm posted a $2.2 million profit for the fourth quarter, a traditionally slow season for the amusement park business. The quarterly profit compares to a $34.1 million loss in the fourth quarter of 2014. Revenue grew 18 percent to $217.5 million.

“In the past, the first and fourth quarters have been a challenge financially,” said Six Flags Over Texas park President Steve Martindale in an interview. “With the strength that we’ve seen with Fright Fest and with Holiday in the Park at more of our parks, it’s really turned the fourth quarter into a much more profitable time period.”

Since 2014, the company has introduced Holiday in the Park at three parks, and it plans to keep two more parks open in 2016 for holiday festivities. Holiday in the Park first began at Six Flags Over Texas over thirty years ago.

The company also announced that Chief Executive James Reid-Anderson is stepping down effective immediately but will remain as nonexecutive chairman of the board. Chief Financial Officer John Duffey will become chief executive and president of Six Flags, effective Friday.

“I want a bit more time at home with my boys before they are off. That is very difficult to do while traveling and being a hands-on CEO,” Reid-Anderson said on the earnings conference call with investors on Thursday. “I truly believe our business momentum is stronger than it has been at any point in the nearly six years I’ve been with Six Flags.”

Six Flags earnings of 2 cents per share surpassed Wall Street expectations, which had estimated a loss of 4 cents a share. Shares of Six Flags [ticker: SIX] gained $1.29 a share to close at $52.68.

For the year, the company reported a profit of $154.7 million, double the amount it earned in 2014. Revenue grew 7.5 percent to $1.26 billion.

In 2015, Six Flags Over Texas added a new dark ride, “Justice League: Battle for Metropolis,” that has been a big hit with guests. The company plans to introduce the ride at Six Flags Great America and Six Flags Mexico this year.

Martindale said the Arlington park has also focused on shortening wait times for guests and improving the customer experience.

“We wanted to get people on more rides and we were very successful, adding 5 million more rides last year than in 2014,” Martindale said.

This season, which begins on March 5, Six Flags Over Texas is expanding its Gotham City area with three villian-themed rides, The Riddler Revenge, Catwoman Whip and Harley Quinn Spinsanity.

Martindale said the park has reconfigured its front entrance, moving the metal detectors to the covered walkway before guests reach the ticket booths, to make it easier to handle larger crowds entering the park.

This story was originally published February 18, 2016 at 2:32 PM with the headline "Six Flags posts fourth-quarter profit, names new CEO."