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» Six Flags Entertainment's CEO Discusses Q1 2012 Results - Earnings Call Transcript
For those of you that have tracked the company it's had somewhat of a turbulent last decade and in fact two years ago went through and emerged from a bankruptcy, but I would tell you that there are several reasons why you should invest in Six Flags.First of all, from an industry perspective this is a tremendous industry. It is stable in turbulent economic times. The company and the industry itself has very high recurring revenue and I think ultimately there are tremendous barriers to entry for someone thinking about getting in and competing directly would have a very difficult time being able to break into this market, so the industry itself is a very solid industry. The company is also extremely strong. I think from a regional theme park perspective, there is no better brand. I think when you look at the line up of product, of animals, of shows that we have across our 19 parks, it really is unparalleled, and so the real opportunity is to take what we have and make it even stronger and deliver even stronger financial performance. As you look forward, what are the things that are really going to drive this company? I know it would be very easy for me to give you a list of a 100 items, and we do have long list of opportunities, but I would really try to bring them down into three major areas that I think will drive the long-term success of our company Six Flags. I think first and foremost there has been a lack of discipline on the pricing front at the company for at least a decade and this discipline is driven by competitors, it was driven internally, so focusing on pricing by market and being targeted in pricing increases and also being very targeted around discounts reducing discounts and made in periods when guests are going to come anyway is part of the key and that's been number one item on our list. Pricing and discount. In other words, yield management. We started that process and we have seen great success.
The second big element will be attendance growth, and I think this will come really through a series of actions that we have taken. First and foremost, we have a laser-like focus on season pass growth and season pass growth we believe will drive our attendance, our revenue and our profitability for multiple years.I would couple with that a new approach to innovation around arrived shows that we have to offer and this is radically different from the company's history. We have in place for the last 18 months a strategy that has used in every park, every single one of our 19 parks has to have something new for our guest every year and we combine that with our season pass launch last year, so that we are telling guests buy your season pass, we have got exciting new news for you and by the way we had a new marketing campaign which actually on the screen here Go Big, Go Six Flags, which focuses on each local park what's new at the park level. Most of our guests come within 100 or 150 miles of their local park, so they don't think on a national basis. They think on a local basis, so that's second big item, attendance growth driven primarily by our season pass strategy. The third item that I would talk to is in-park sales. We have been very successful at growing our in-park sales and we think we can continue to do that. There are many aspects to this. Pricing is one element, but we are being cautious around pricing, but there are initiatives or new programs that we are bringing in that will drive in-park sales. A good example would be our Flash Pass program, which is an electronic queuing system and we have seen tremendous demand for this program and its growing and we are adding new product as we go. Read the rest of this transcript for free on seekingalpha.com