Six Flags Statement Regarding New York Stock Exchange Listing Standards

[29yrswithaGApass]

Source - Market Watch

 

Six Flags Statement Regarding New York Stock Exchange Listing Standards

Last update: 5:30 p.m. EDT Oct. 2, 2008

 

NEW YORK, Oct 02, 2008 /PRNewswire-FirstCall via COMTEX/ -- Six Flags, Inc. announced today that it is not in compliance with the continued listing standards of the New York Stock Exchange ("NYSE") because the thirty-day average closing price of the Company's common stock was less than $1.00. Under applicable NYSE rules, the Company generally has six months to cure the deficiency. The Company's common stock will remain listed on the NYSE in the interim. If the trading average does not sufficiently improve, the Company intends to consider all available alternatives, including, among other things, a reverse stock split. If the Company decides to cure the deficiency by seeking stockholder approval of a reverse stock split, it must do so no later than the 2009 annual meeting, which is scheduled for May 2009. Failure to be listed on the NYSE does not constitute a default under any of the Company's debt instruments.

 

Mark Shapiro, President and Chief Executive Officer said: "Many companies are facing challenges in today's volatile economic climate and Six Flags is no exception. As we move closer to the redemption date of our preferred stock instruments in August of next year, uncertainty about the Company's ability to refinance these obligations in light of the overall market conditions has put negative pressure on our stock. We believe that our improved performance and cash flows will be key to repositioning the Company for long-term growth."

 

The Company reiterated the alternatives it has available to address the August 15, 2009 mandatory redemption of the Preferred Income Equity Redeemable Shares ("PIERS"). Subject to potential Delaware law restrictions on dividends and redemptions, these alternatives include a refinancing, exchange or extension of the PIERS, as well as the use of an uncommitted optional term loan, asset sale proceeds and New Orleans insurance claim proceeds. The Company continues to have discussions with PIERS holders regarding potential PIERS restructuring alternatives.

 

The Company previously announced that revenues for its third quarter through August 12, 2008 had increased approximately 7.6%, or $23.5 million, over the prior-year period on fewer park operating days. The revenue increase was attributable to attendance growth of 5.1%, or 407,000, to 8.43 million guests and a 2.4%, or $0.92, increase in total revenue per capita to $39.55. However, as also previously released, the Company's full third quarter results will reflect the loss of two full park operating days compared to the prior-year quarter. The Company expects to recover lost attendance from those days in the fourth quarter, including the benefit of a favorable Halloween season calendar with the holiday falling on a Friday this year compared to a Wednesday in 2007.

 

The Company also announced that, as of September 30, 2008, no amounts were drawn under its $275 million working capital revolving facility (excluding approximately $28.8 million in letters of credit). The Company believes that based on amounts available under this facility, together with available cash, it has ample liquidity to fund its off-season capital expenditures and operating expenses for the 2009 season.

 

The Company will host a teleconference for analysts at 9:00 EST on November 10, 2008 to announce the Company's third quarter results and performance through October 2008. Participants in the call will include President and Chief Executive Officer, Mark Shapiro, and Executive Vice President and Chief Financial Officer, Jeffrey R. Speed.

The teleconference will be broadcast live to all interested persons as a listen-only Web cast on http://investors.sixflags.com/. The Web cast will be archived for one year.

[JetsDevs4Lyf]

I think that most of us saw this coming when the stock began to slide earlier in the summer. And with everything just going haywire it's even worse right now. I hope the company can right the situation and bring the stock back up in the near term and not far term.

[29yrswithaGApass]

Source: AP

 

Six Flags' market cap falls below NYSE standards

Friday October 31, 6:04 pm ET

Six Flags fails to meet NYSE listing standards, will submit plan to regain compliance

 

NEW YORK (AP) -- Theme park operator Six Flags Inc. said Friday it has received notice that its market capitalization has fallen below the required threshold for continued listing on the New York Stock Exchange.

 

Six Flags said the thirty-day average market capitalization of its common stock has fallen below $75 million. Also, the stockholders' equity on the company's balance sheet has been less than $75 million.

 

Six Flags has 45 days to submit a proposal for regaining compliance within 18 months. The company said it plans to consider its options to regain compliance and submit a proposal by the deadline.

 

If the proposal is accepted and Six Flags remains compliant with other listing standards, the New York-based company's shares will remain listed for the 18-month period.

 

Six Flags noted that failure to be listed on the NYSE does not constitute a default under any of the company's debt agreements.

 

Six Flags shares gained 2 cents to 34 cents on Friday. The stock has traded between 25 cents and $3.29 during the past 52 weeks.