Through TheFLY's Eyes: Six Flags, Inc.
from Theflyonthewall.com












A Bet On Mark Shapiro: Will Lunch With Bugs Bunny Pay Off?

After last fall's high profile battle between Daniel Snyder (owner of the Washington Redskins) and entrenched management at Six Flags (PKS), it is now time for Snyder to prove he can turn this company around.

A big part of Snyder's proxy campaign was that if this company were run by Mark Shapiro, the company would do much better. Shapiro has spent much of his career at ESPN, playing a role in growing many of its businesses. Since taking the helm in December of 2005, Shapiro has moved quickly to prove his worth at this stand alone company.

Shapiro has little positive to say about past Six Flags' management. He is moving away from its season pass business model which often attracted a large teenage audience to targeting families. One of the first moves was to have lunch with Bugs. For $14 per child and $17 per adult, you can eat with Bugs Bunny and become a member of the Carrot Top Club.

A lot of new marketing initiatives are being launched at Six Flags. So far per cap revenue is up 14%, which appears to be a good start. Attendance is off due to a number of factors, but it has stabilized in April. Only 5% of business is done in the 1st quarter of the year, a better measure of initiatives success would be in mid-June, as it approaches peak season. The company has set EBITDA guidance at $340 million for the year, up from $299 million last year.

Shapiro has taken a strong grip on this company. Six Flag's stock is a bet on him.