Q&A MARK SHAPIRO, SIX FLAGS CEO (at Six Flags Over Texas)

[GAcoaster]

From the Fort Worth Star Telegram:

 

Q&A MARK SHAPIRO, SIX FLAGS CEO

Six Flags has a strategy for season opening

By ANDREA AHLES

Star-Telegram Staff Writer

 

 

The coasters will be rolling at Six Flags Over Texas this weekend as the park opens for its 47th season.

 

But with rising gas prices and a slowing economy, the theme-park chain faces the challenge of convincing families that Six Flags is worth the price of admission.

 

Chief Executive Mark Shapiro spoke with the Star-Telegram on Thursday about what's new at the park, the status of Six Flags Over Texas' liquor-license application and how a recession might affect the company.

 

"We know the plight of Mom and Dad this summer, and we want to be the solution for the tighter wallet they might have," Shapiro said.

 

What can visitors expect at the Six Flags parks in 2008?

 

I'm really excited. We're on plan. We're on budget and on time. We're not just investing in the theme parks. We're also investing in the water parks which haven't had anything new for the past few years. At Six Flags Over Texas, really, it's a triple threat: Tony Hawk's Big Spin for thrill seekers, the upgrades on All American Cafe and then the Mega Wedgie at Hurricane Harbor. This was always a three-year turnaround plan. We are where we want to be and well-positioned as parents choose to be closer to home. We believe we're a hot ticket.

 

How do you think the economic downturn will affect your company?

 

First off, rising gas prices are not new. We almost touched $4 (a gallon) last year, and 2006 was almost worse because it was a sticker shock. When it comes to a recession, I can speak for myself and my family. For spring break this year, we're staying home. ... For families, it was the big trip getting on a plane, going somewhere, that was sacrificed. As long as Six Flags can offer a strong menu of entertainment at a value price, then we can be a first choice for many, many families as they look for something convenient, close to home and affordable.

 

The company's stock price hovers around $2, and there have been rumors on Wall Street that with $2.3 billion in debt, Six Flags management may consider filing for bankruptcy protection. Is bankruptcy a possibility? Or are you thinking about selling some of the company's theme parks?

 

None whatsoever. We have cash on hand. We just redid our bank deal. We've got the runway to execute the third year of our turnaround plan. ... And no, we're not in the market to sell anything at all. We're proud of our portfolio and proud of our turnaround.

 

Six Flags Over Texas had planned to apply for a liquor license but has yet to submit its application to the Texas Alcoholic Beverage Commission. What is the status of the application?

 

We're moving down the proper course and path to get this license. I think it's important to note that we've instituted a strict no-tolerance code of conduct policy that monitors guest behavior, language, no smoking and no graphic language on t-shirts and no bikini tops outside of the water park. We've been very strict. The last thing we want to do here is put in a policy where people can purchase alcoholic beverages for the sole purpose of getting rowdy or out-of-hand. We simply have an extraordinary amount of feedback from parents who work hard all week and come out to the park on the weekend and would like a beer.

 

This is your third year in charge of Six Flags. Is this the season that will demonstrate whether your turnaround plan is successful?

 

It's not a make-or-break year. We thought this would take a better part of three years. ... We never thought about this company as a short-term fix. But we've invested in the experience and the brand and in the levers we think need to be pulled to turn the company around long-term, and we've done that. Our guest-satisfaction numbers are through the roof. Our international strategy is hot and heavy, and our corporate alliance business is growing. ... We've cleaned the parks up. They look better. We've paved the roads, and we've brought real energy back to the midways. So improvement in experience was Step 1. You do that, and the families will come back, and I feel good about it.

[The Master]

I think years ago at GAdv two people who got drunk in the park started a fight with each other and one of the drunks stabbed the other drunk. After that GAdv didn't sell alcohol for years and this also when the park started to use metal detectors.

Edited February 29, 2008 by The Master