Six Flags Posts Wider-Than-Expected Loss

Six Flags Inc., operator of the Magic Mountain amusement park in Valencia, on Wednesday posted a bigger loss for the fourth quarter despite a 6% gain in revenue.

Oklahoma City-based Six Flags said it lost $144.5 million, or $1.55 a share, widening from $115 million, or $1.24, a year earlier. Revenue increased to $111.8 million from $105.4 million.

Counting only continuing operations, Six Flags said it had a loss of $116.7 million, or $1.31 a share, wider than the year-earlier loss from continuing operations of $106.1 million, or $1.20.

Analysts had expected Six Flags to post a loss of 73 cents a share for the quarter, according to Thomson Financial.

Operating costs and expenses totaled $170.9 million for the fourth quarter, up 12% from the previous year.

“The company finished 2005 on a strong note of recovery, and we are proceeding with several new initiatives intended to place Six Flags on a path to deliver sustainable growth, reduce debt and enhance shareholder value,” President and Chief Executive Mark Shapiro said in a statement.

Shapiro became CEO in December after a proxy fight led by investor Daniel Snyder resulted in the ouster of CEO Keirian Burke and other executives. Six Flags said costs related to the management changes contributed to the overall increase in expenses.

For the full year, Six Flags posted a smaller loss of $132.9 million, or $1.43 a share, compared with 2004’s loss of $486.8 million, or $5.23. Annual revenue increased 9% to $1.09 billion.

Looking ahead, Six Flags reaffirmed its 2006 outlook for adjusted earnings of $340 million before interest, taxes, depreciation and amortization, up nearly 14% from 2005’s performance. Six Flags also said it aimed to cut capital spending to about $100 million a year in the future, down from $140 million it expects to spend this year.

Shares of Six Flags fell 7 cents to $10.40.