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Six Flags 2007 Q1 Conference Call


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To summarize some important notes by CEO Mark Shapiro:

 

* "Retaining better guest-facing employees. More and more competition out there these days. You can get a job at Starbucks which pays a lot of money and gives you a lot of benefits...we need to be competing on that level."

 

* We've established a guest serive mantra -- so every employee knows their mission, it's four-pronged":

 

1) Cleanliness

2) Friendliness

3) Speed of Service

4) Safety

 

* "When it comes to the look and feel of our parks as it relates to the guest experience, we need to get back to theming. Investing in theming. These parks are about imagination and different worlds and fantasies and they're about story-telling. And that's on our agenda this year -- pretty much right at the top. And as I said, we need to make the rides and retail initiatives much more experiential."

 

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Other important notes:

 

* 7 parks receiving insfrastructure upgrades this year. Next two years, infrastructure upgrades to rest of the parks.

 

* Six Flags Television and Six Flags Radio. Outfitting parks with radio and television capabilities. To market messages, play content, and sell advertising. Can be regionalized to certain park areas.

 

* Company being much more selective in job hiring due to increased wages. Decreased reliance on international employees.

 

* Arcades transformed to debit system.

 

* Pricing for VIP program to be raised in certain markets due to increased demand.

 

* Magic Mountain's Metro is expected to return to operation before the end of the 2007 season but will not be themed to Thomas the Tank Engine because "our partnership with Hit Entertainment, they really want to keep Thomas on the ground, he's not an elevated train. Of course we want to respect their brand attribute, so we're not going to play with that." (Quote Mark Shapiro)

 

* Wiggles World and Thomas Town won't be coming to Magic Mountain in 2008.

 

* $14 million reduced loss in fixed assetts reflected by the writing off/removal of "obsolete rides and attractions":

 

- Psyclone @ SFMM

- Trailblazer @ SFGAm

- Free Fall @ SFOG

- Stuntman's Freefall @ SFNJ

- Riptide @ SFNJ

- Chaos @ SFNJ

- The Tilt @ SFA

- Jambo @ SFDK

- Spider @ SFNE

- Tempest @ SFFT

- OVNI @ La Ronde

 

* The Johnny Rockets introduced at four parks this year are now the highest grossing food stores in the chain.

 

* Pizza sales have increased dramatically since the introduction of Papa John's last season.

 

* KRAFT Foods and Six Flags announce a corporate marketing alliance.

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* Pricing for VIP program to be raised in certain markets due to increased demand.

to all those people who moaned about the VIP program.... HAHAHAHA!

 

* The Johnny Rockets introduced at four parks this year are now the highest grossing food stores in the chain.

 

* Pizza sales have increased dramatically since the introduction of Papa John's last season.

to all those people who moaned about them going with corporate franchises instead of independent sort of eateries.... HAHAHAHA!

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I must say I did notice a bit higher quality theming when I was SFStL last Saturday. The Britannia section looked great!

 

I really do think the new SFI and Mark are doing a great job to shape up the parks. All of this sounds great!

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All of these things sound great for the park. I'm really starting to believe that Six Flags will actually come out of debt much faster than I thought to begin with. And even my last trip to SFSTL was much better than just a few years ago. So two thumbs up to Six Flags for turning/go to turn around there parks!

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I was so disappointed to see an empty building where Trailblazer used to be - I had a BLAST riding that when I was little, even now! They'd better do something interesting with the building it was in.

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"When it comes to the look and feel of our parks as it relates to the guest experience, we need to get back to theming. Investing in theming. These parks are about imagination and different worlds and fantasies and they're about story-telling.

 

I'm very happy about this as I always hear people complain about the lack of theming at their parks.

 

* $14 million reduced loss in fixed assetts reflected by the writing off/removal of "obsolete rides and attractions":

 

- Stuntman's Freefall @ SFNJ

- Riptide @ SFNJ

- Chaos @ SFNJ

 

These were all great rides, I already miss them

 

* The Johnny Rockets introduced at four parks this year are now the highest grossing food stores in the chain.

 

 

Yeah because its so dam expensive

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"When it comes to the look and feel of our parks as it relates to the guest experience, we need to get back to theming. Investing in theming. These parks are about imagination and different worlds and fantasies and they're about story-telling. And that's on our agenda this year -- pretty much right at the top. And as I said, we need to make the rides and retail initiatives much more experiential."

 

That'll be the day...

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I'm excited to see what this brings to SFMM. I miss the ninjas they had walking around the park last year!

 

They have a lot of work on their hands to get Metro back up and running. Considering its 1970's technology that has sat unused for several years, it should bring its challenges. Just looking at the stations alone...its gonna be a long road.

 

They didn't mention Flashback's removal this time around. Perhaps they are waiting till fall (after Hurricane Harbor's season is over). Do we think they would build a Tony Hawk ride either in this place or back where Psyclone was? Knott's is opening thier spinning coaster soon so perhaps they are planning on doing something different?

 

I'd say Mark is doing a pretty good job so far. Granted it seems he's all over the place at times (Wiggles here, Thomas the Train here, Papa Johns, Coldstone, theming, etc).

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Its really great. These parks NEED "face lifts" MORE then anything! SFDK got its face lift with new themeing and a lot of miscellaneous items.

 

It seems as though SFMM is REALLY getting the attention it needs! New paint is going up everywhere! New stuff is being brought forward. Overall..the park is just steadily going up for once!!

 

Hes right..there's A LOT of competition out there..and if SFs keeps going at the rate they were going..they would crumble like Rome. But now they re taking action at getting back to the top!

 

-Ryan

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I love where Six Flags is headed. I think Shapiro is starting to get it. And the incorporation of well known brands of food? Loving it! It seems to me that cheap independent brands are always crappier anyways.

 

I'm going to find Shapiro on myspace and tell him how much I love him. I'm going to have his baby, or be his baby's daddy. I don't know, we'd probably need that operation like in that one Arnold Shwarzennegger movie (jr?) in order for something like that to happen. But I'll get it to happen. And then I'll be intitled to some of his money.

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"* Magic Mountain's Metro is expected to return to operation before the end of the 2007 season but will not be themed to Thomas the Tank Engine because "our partnership with Hit Entertainment, they really want to keep Thomas on the ground, he's not an elevated train. Of course we want to respect their brand attribute, so we're not going to play with that." (Quote Mark Shapiro)

 

* Wiggles World and Thomas Town won't be coming to Magic Mountain in 2008."

 

 

 

OH MY GOODNESS!!! Thats Really Cool. Its about time they got that thing running

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* Wiggles World and Thomas Town won't be coming to Magic Mountain in 2008."

 

Is that a misprint, or does Shapiro have something else in store for families in 2008?

 

Edit: Never mind, I just listened to the call...

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we need to get back to theming. Investing in theming. These parks are about imagination and different worlds and fantasies and they're about story-telling. And that's on our agenda this year -- pretty much right at the top.

 

You got to be kidding me, right? I saw picture of those new misting billboard things that are popping up all over Magic Mountain ... if anything, they take away from the theme of the various "lands" within the park.

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Yeah well, when most of us think theming, we think Disney, Universal, Busch.

 

 

With Six Flags, it's about what's in their VERY tight budget. Although I have to admit, what they've done out at Great Adventure has completely transformed that parks. In just a few years, they've given that park very beautiful theming, cool upgrades, and a TON of good old fashion AIRTIME to boot.

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^ Goliath, the roller coaster, has an ambiguous "lost tropical civilization" theme. It was never specified as Aztec, Mayan, or whatever.

 

The actual Goliath in Biblical times is a decendant from central Israel.

 

Let's just say, the choice to drop the homage to Israel/some Philistine city was a good idea and in its place, a much more appealing tropical theme.

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Yeah well, when most of us think theming, we think Disney, Universal, Busch.

 

 

With Six Flags, it's about what's in their VERY tight budget. Although I have to admit, what they've done out at Great Adventure has completely transformed that parks. In just a few years, they've given that park very beautiful theming, cool upgrades, and a TON of good old fashion AIRTIME to boot.

 

Thank Burke and Story for that. RedZone had NOTHING to do with it.

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^ Goliath, the roller coaster, has an ambiguous "lost tropical civilization" theme. It was never specified as Aztec, Mayan, or whatever.

 

The actual Goliath in Biblical times is a decendant from central Israel.

 

Let's just say, the choice to drop the homage to Israel/some Philistine city was a good idea and in its place, a much more appealing tropical theme.

 

How would you describe Goliath at SFOG? Chrome Themed?? New Age? It deosn't seem to fit with even SFMM's tropical theme for Goliath

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From my understanding, the Goliaths at La Ronde, Over Georgia, and Walibi World do not have a theme. Chrome accents and "time machine" really isn't a theme -- the ride itself and its surroundings are completely bland and generic. Much like how Scream! at Magic Mountain has no theme. "Parking lot" isn't a theme.

 

I was strictly talking about the Goliath at Magic Mountain, although I'm sure I should've been more specific at the time.

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