Six Flags Profit Falls On Expenses, Revenue Tops Estimate; Stock Up - Update

(RTTNews) - Theme park company Six Flags Entertainment Corp (SIX), Tuesday reported a lower third-quarter profit, hurt mainly by stock-based compensation expense, even as revenue climbed ahead of Wall Street estimates.

The company raised its quarterly dividend by 11 percent to $0.52 per share.

Six Flags shares gained 10 percent in after-hours trade on the New York Stock Exchange.

With 18 parks across the U.S., Mexico and Canada, Six Flags is the world's largest regional theme park company.

Six Flags, based in Grand Prairie, Texas, posted quarterly net earnings of $105 million or $1.08 per share, compared with $120.4 million or $1.22 per share last year.

On average, seven analysts polled by Thomson Reuters expected earnings of $1.50 per share for the quarter. Analysts' estimates typically exclude one-time items.

Results for the quarter mainly reflect stock-based compensation expense of $78 million, compared with $7 million last year.

Revenues for the third quarter climbed 7 percent to $541.8 million from $504.5 million a year ago, topping analysts' expectations of $536 million.

Theme-park admissions revenue rose 8 percent from last year, and theme-park food, merchandise and other revenue gained 4 percent.

Six Flags said that during the quarter, total guest spending per capita rose 6 percent from last year, and attendance marginally climbed to 11.8 million.

The company's Active Pass Base, which includes season pass holders and guests in the company's membership program, increased 10 percent from last year.

Six Flags expects $600 million of Modified EBITDA by calendar year 2017, equating to nearly $3.75 of cash earnings per share.

SIX closed Tuesday at $34.50, up $1.30 or 3.92%, on a volume of 1.9 million shares. In after hours, the stock gained $3.60 or 10.43% at $38.10.