Six Flags Magic Mountain takes a $533 million hit – Orange County Register
Magic Mountain is price $533 million lower than Six Flags thought after the guardian firm recalibrated excessive expectations for the Valencia amusement park that noticed half a billion {dollars} in perceived worth evaporate in a single day.
Six Flags took a $1.5 billion write-down within the firm’s most up-to-date quarterly report following a formal accounting check triggered by decrease than anticipated income, earnings and money move.
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“Six Flags just admitted that a big chunk of what he thought he owned on paper wasn’t worth what he claimed,” International Theme Park Services CEO Dennis Speigel wrote on the corporate’s web site.
The accounting check requested a easy query: How a lot are Six Flags amusement parks price?
The reply: Rather a lot lower than Six Flags thought — a minimum of on paper.
The assessments checked out projected earnings, ticket gross sales, model power and different intangible property — often called “goodwill” in accounting phrases.
Goodwill is the premium paid above and past any tangible property — curler coasters, thrill rides, buildings and land within the case of the $8 billion merger that mixed Six Flags and Cedar Fair into a North American amusement park juggernaut in 2024.
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“On paper, it’s an asset, but it’s really just a bet on the future,” Speigel wrote on the ITPS web site. “And like all bets, it can go another way than originally anticipated.”
Magic Mountain noticed $533.7 million faraway from the Six Flags books.
Six Flags Great America ($192.8 million), Six Flags Over Georgia ($187.9 million), Six Flags Fiesta Texas ($103.8 million), Six Flag Great Adventure ($97.4 million), Six Flags Mexico ($89.3 million), Six Flags Over Texas ($86.8 million) and Schlitterbahn ($50.7 million) all took huge hits.
Even the Six Flags commerce identify, as soon as valued at $850 million, misplaced $169.3 million on paper — a almost 20% decline.
The $1.5 billion in write-downs by Six Flags had been all non-cash losses, in accordance with Speigel.
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“No money left the bank,” Speigel wrote on the ITPS web site. “This is purely an accounting adjustment. A reset to align the books with reality.”
