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Medusa42

Six Flags Corporate News

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Last time, he remained Chairman of the board. This time he is going to walk away completely.

 

I am sure the current CFO, Marshall Barber, will interview for the CEO position.  Hopefully, John Reilly from Seaworld is one of the external candidates.  I thought he did a good job as interim CEO of Seaworld and was surprised he didn’t become the permanent CEO.

 

It will be interesting to see how the current strategy is tweaked under new leadership.

 

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I wouldn't be surprised to see Joel Manby (former CEO Herschend and SeaWorld) mentioned, and I think John Reilly would be a likely contender (though I want him to stay with SeaWorld as the Chief Operating Officer). 

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Reilly has done a fantastic job at SeaWorld in very strong headwinds.  He would be a good get for SIX.  

 

Should be an interesting 

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Both would be great choices. But the companies they would come from are about adding to the parks as well as very heavy theming. Which in the last 10 yrs. has been much of what Six Flags..Isnt interested in. Jus a thought.

 

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22 hours ago, FlumeOp1974 said:

Both would be great choices. But the companies they would come from are about adding to the parks as well as very heavy theming. Which in the last 10 yrs. has been much of what Six Flags..Isnt interested in. Jus a thought.

 

One could make the argument that SIX *has* been adding to the parks ... it's just hasn't put a new major coaster in at Great Adventure.

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Agreed. When I talk theming Im talking Epic Level. Not a plywood cut out. Joker Cybor, you get the idea. Everything about the attraction needs to work with whats around it. Plantings eatiers

shops. GA example Frontier Adventure, Dream Street, Strawberry Fair, Fun Fair (to a point) Not Slabs of of walk way with hedgerow. Im talking trees, Flowers and yes Grass. With everything around the attraction or area working together. Joel with Dollywood, Holiday World, All those are very heavy on theme. Johns work the same. Seaworld, Williamsburg. 

 Both would be great. But I would also see stock holders screaming. Just a thought.

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2 hours ago, FlumeOp1974 said:

Agreed. When I talk theming Im talking Epic Level. Not a plywood cut out. Joker Cybor, you get the idea. Everything about the attraction needs to work with whats around it. Plantings eatiers

shops. GA example Frontier Adventure, Dream Street, Strawberry Fair, Fun Fair (to a point) Not Slabs of of walk way with hedgerow. Im talking trees, Flowers and yes Grass. With everything around the attraction or area working together. Joel with Dollywood, Holiday World, All those are very heavy on theme. Johns work the same. Seaworld, Williamsburg. 

 Both would be great. But I would also see stock holders screaming. Just a thought.

I don't worry about the stockholders.  They largely know they'd be damned lucky to get someone of that pedigree.  They theming thing could conceivably make or break them, but it would be more on the candidate walking away over a disagreement on philosophy and not disapproval on the part of the stockholders/board.  The small stock holders can't be assed to vote their proxies and generally are clueless about the larger mechanics of things and the institutional investors who hold the majority of the stock know they'd be damned lucky to get a CEO who can not only withstand the cultural firestorm that the captive orca issue brought on, but to have the company thrive under his leadership.

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Keep in mind that Jim Reid-Anderson is one of the largest shareholders with 3,987,545 shares of stock which is 4.7% of the company.  As chairman of the board, he will be involved in picking his replacement CEO and ensuring his dividend and stock value are protected.  At the current stock price of $47.56 per share, his stock holdings are worth $189,647,640.20 and pay out more than $13 million in dividends per year ($3.28 per share).

 

https://otp.tools.investis.com/clients/us/sixflags1/SEC/sec-show.aspx?Type=page&FilingId=13308627-234449-253882&CIK=0000701374&Index=20000

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Coaster, ive stated before they should hire a butch of us. But still no reply.

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I renamed and highjacked this thread to be more of a catch-all for Six Flags Corporate news.  

 

Quote

Six Flags Announces H Partners’ Representative to Join Board

 

Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company and the largest operator of waterparks in North America, today announced that it has entered into a cooperation agreement with one of its major shareholders, H Partners. Under the agreement, Arik Ruchim, a Partner at H Partners, has joined Six Flags’ Board of Directors. Mr. Ruchim was also appointed to the Nominating and Corporate Governance Committee and to the Compensation Committee.

 

"Six Flags is committed to maintaining a high-caliber and diverse Board, and we are confident that we will benefit from H Partners’ skill sets and experience," said Richard Roedel, Chairman of the Six Flags Board of Directors. "We believe this agreement is in the best interests of all Six Flags shareholders, and we welcome Mr. Ruchim to the Board."

 

"We look forward to working together with the Board and management team in order to enhance the guest experience and drive earnings growth," said Mr. Ruchim. "We believe in the future growth potential of the Six Flags brand and the capability of the team. We are excited to partner with the Board and leadership team to maximize long-term value for all shareholders."

 

The complete agreement between Six Flags and H Partners will be included in a Form 8-K to be filed with the United States Securities and Exchange Commission.

 

 

This is an interesting development. H-Partners was majority shareholder of Six Flags when they emerged from bankruptcy, but since then they sold off most of their interest. Apparently they see an opportunity here with the turmoil lately, and are coming back in with a seat on the Board. I have to wonder if they have a plan for an acquisition or merger to increase value. Rehan Jaffer, the head of H-Partners was very hands on with Six Flags comeback, and was working to merge Six Flags and Cedar Fair back in 2010. He showed me a picture of himself at Cedar Point with Dick Kinzel riding a coaster together from when they were in discussions and even asked what I thought of a merger between the two companies. 

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Under the agreement, Arik Ruchim, a Partner at H Partners, has joined Six Flags’ Board of Directors. Mr. Ruchim was also appointed to the Nominating and Corporate Governance Committee and to the Compensation Committee.

This makes it sound like they want to bring in some new executives and possibly cut Project 750.

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19 hours ago, Medusa42 said:

This makes it sound like they want to bring in some new executives and possibly cut Project 750.

Project 750?

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On 1/31/2020 at 3:58 PM, GAcoaster said:

I renamed and highjacked this thread to be more of a catch-all for Six Flags Corporate news.  

 

 

This is an interesting development. H-Partners was majority shareholder of Six Flags when they emerged from bankruptcy, but since then they sold off most of their interest. Apparently they see an opportunity here with the turmoil lately, and are coming back in with a seat on the Board. I have to wonder if they have a plan for an acquisition or merger to increase value. Rehan Jaffer, the head of H-Partners was very hands on with Six Flags comeback, and was working to merge Six Flags and Cedar Fair back in 2010. He showed me a picture of himself at Cedar Point with Dick Kinzel riding a coaster together from when they were in discussions and even asked what I thought of a merger between the two companies. 

SEC Filing

I just read the full SEC filing.  No one is reporting that this is a complete shake up of the Board of Directors.

 

Usman Nabi from H Partners resigned from the board on Jan. 30th, 2020.

Arik Ruchim from H Partners is appointed to the board on Jan 31st, 2020 as part of cooperation agreement with Six Flags.

Six Flags agreed to appoint three new independent directors to the board, H Partners will present a list of up to eight independent candidates to choose from.

An existing director must resign from the board on or before the appointment of the third independent director.

H Partners owns 6.5 % of the common stock and agreed not to acquire more than 14.9% as part of a standstill period that expires sometime in mid 2021.

 

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https://www.prnewswire.com/news-releases/shareholder-alert-bernstein-litowitz-berger--grossmann-announces-the-filing-of-securities-class-action-lawsuit-against-six-flags-entertainment-corporation-301004057.html

 

Quote

NEW YORK, Feb. 12, 2020 /PRNewswire/ -- Today, prominent investor rights law firm Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") filed a class action lawsuit for violations of the federal securities laws in the U.S. District Court for the Northern District of Texas against Six Flags Entertainment Corporation ("Six Flags" or the "Company") and certain of the Company's current and former senior executives (collectively, "Defendants"), on behalf of investors in Six Flags common stock between April 25, 2018 and January 9, 2020, inclusive (the "Class Period").  

BLB&G filed this action on behalf of its client, the Electrical Workers Pension Fund, Local 103, I.B.E.W., and the case is captioned Electrical Workers Pension Fund, Local 103, I.B.E.W. v. Six Flags Entertainment Corporation, No. 3:20-cv-00346 (N.D. Tex.). The complaint is based on an extensive proprietary investigation and a careful evaluation of the merits of this case. A copy of the complaint is available on BLB&G's website by clicking here.   

 

Six Flags' Alleged Fraud

 

Six Flags is the world's largest regional theme park operator. The claims alleged in this case arise from Defendants' misrepresentations and omissions relating to the Company's prospects of developing Six Flags-branded parks in China through licensing agreements with Chinese real estate developer, Riverside Investment Group Co. Ltd. ("Riverside"), and the financial problems at Riverside.

 

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and growth prospects related to its agreements with Riverside to develop parks in China. As development of those parks began to face delays, Defendants misled investors by downplaying the problems as "short-term" and "not material in the context of the long-term opportunity."  Defendants also assured investors that Riverside was "work[ing] through" the macroeconomic issues in China and that Riversidewas in "great shape" financially. In truth, Riverside was in severe financial distress and did not have the resources to timely complete its projects with Six Flags. As a result of Defendants' misrepresentations, shares of Six Flags' common stock traded at artificially inflated prices throughout the Class Period.  
 

The truth emerged through a series of disclosures, beginning on February 14, 2019, when Six Flags announced a negative $15 million revenue adjustment for the fourth quarter of 2018 due to delays in the expected opening dates of some of its China parks, which the Company falsely blamed on macroeconomic issues in China.

Then, on October 23, 2019, Six Flags again postponed the timing of its park openings in China, stating "it's unrealistic to think it's going to be exactly as we've outlined."

Finally, on January 10, 2020, the Company disclosed that the development of its Six Flags-branded parks in China continued to encounter challenges and had not progressed as expected, placing the future of its China parks in jeopardy. The Company also revealed that Riverside continued to face significant financial challenges, which caused Riverside to default on its payment obligations to Six Flags. As a result of these disclosures, the price of Six Flags common stock declined precipitously.

 

If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than April 13, 2020, which is the first business day on which the U.S. District Court for the Northern District of Texas is open that is 60 days after the publication date of February 12, 2020. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.

 

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https://investors.sixflags.com/news-and-events/press-releases/2020/02-20-2020-105903787


- New strategic plan will be announced on May 28th, 2020.

- Marshall Barber is out as CFO

- Dividend for the quarter was cut from 0.83 cents per share to 0.25 cents per share

- The company is facing challenges related to its base business. Soft organic revenue trends, and increasing operating cost headwinds, primarily related to higher minimum and market wages, will be difficult to overcome in 2020. Therefore, the board of directors and management team have concluded that the company needs to make incremental investments in the base business to enhance the guest experience.


“My first ninety days have only reinforced my belief that Six Flags is a beloved brand with loyal guests and dedicated employees. Our company has difficult to replicate assets that provide a unique experience in themed entertainment, and exciting potential for profitable growth,” said Mike Spanos, President and CEO. “I also believe that the company has the ability to improve its performance. We are working diligently to formulate a new strategic plan with the goal of restoring sustainable growth in attendance, revenue and profitability, and also to add directors with critical skills and experiences to our board. We will continue our consumer-centric approach, while focusing our organization on action, creativity, and relentless execution for the benefit of our guests, our employees, and our shareholders. I believe that Six Flags’ future is bright, and I am excited to take on this new chapter with our great team.”

 

 

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Stock has REALLY taken a hit today.

 

They starved the parks of needed capex for far too long. You have to spend money to make money...

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I wonder if the new CEO like shows?  Although not unique to Great Adventure, today's entertainment is a far cry from what it once was (1983 and 1993)?

 

1983 07 25.jpg

 

1993 07 15Back.jpg

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9 hours ago, Medusa42 said:

“Our company has difficult to replicate assets that provide a unique experience in themed entertainment, and exciting potential for profitable growth,” said Mike Spanos, President and CEO. 

 

What's he referring to here? Their cloned rides are difficult for others to clone?

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