Six Flags Entertainment Profit Plunges Despite Revenue Growth - Update

(RTTNews) - Six Flags Entertainment Corp. (SIX), the world's largest regional theme park company, Wednesday reported a plunge in fourth-quarter profit due mainly to the absence of a hefty income tax benefit recorded last year. Revenue for the quarter climbed 7 percent on growth in admissions and in-park business, but was overshadowed by operating and general expenses.

Nevertheless, the quarterly results topped Wall Street estimates, sending Six Flags shares up by about 6 percent in early noon trade on the New York Stock Exchange.

Six Flags operates regional theme, water, and zoological parks.

The Grand Prairie, Texas-based company posted quarterly net income of $12.8 million or $0.13 per share compared with $155.18 million or $1.40 per share last year.

On average, eight analysts polled by Thomson Reuters expected a loss of $0.21 per share for the quarter. Analysts' estimates typically exclude special items.

Results for the quarter included tax benefit of $34.76 million compared with a benefit of $192.6 million last year.

Revenue for the fourth quarter climbed 7 percent to $154.2 million from $144 million in the prior year. Nine analysts had a consensus revenue estimate of $149.12 million for the quarter.

Growth was led by an 8 percent increase in admissions revenue and a 7 percent increase in in-park business. Guest spending per capita was up 6 percent to $37.99 for the quarter.

Operating expenses of $77 million, selling and general costs of $31 million, depreciation expense of $27 million, interest cost of $19 million and other overheads exceeded revenue, the company said.

The company's stock is trading at $40.51, up $2.26 or 5.91%, on a volume of 1.2 million shares.