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New CEO's Theme for Six Flags Is Change
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The Weinstein brothers, in particular, may restore a much-needed connection for Six Flags, which was once owned by Warner Bros. Ties to a major Hollywood movie studio would provide more opportunities for themed rides, which several industry experts said is critical for success.
"If Harvey Weinstein is going to be producing a family film, we will be knocking on the door to get Six Flags represented," Shapiro said.
One major impediment to executing these plans is the company's more than $2 billion in debt. Interest payments have been eating away at profit for several years.
Snyder, in a press release, acknowledged the "effect that such debt has on any transaction" and said reducing it would be a priority.
Theme park industry consultant Dennis Speigel estimated that if the company could get the debt down to around $1.6 billion, it would free up enough capital to work with and "things would start to look a lot better."
To raise some cash, Six Flags management is looking at selling some of its land. Last month, Snyder submitted a filing with the Securities and Exchange Commission that identified unused and underused land worth a combined total of at least $262.1 million, with land around the park in Largo valued at between $104.5 million to $118 million. For real estate advice, Snyder and Shapiro can turn to home builder Dwight C. Schar, who joined the board with them.
"It will be an uphill battle and a lot to do, but if it's well thought out, it's achievable," said Speigel.
"We want to restore family confidence in the brand," Shapiro said. "We want it to be less of a field trip and more of a destination."
Shapiro replaced longtime chief executive Kieran E. Burke, who Tuesday evening stepped down as a result of a "mutual decision" with the board of directors, the company said.
Shares of Six Flags closed at $7.20, up 5 cents.
