Six Flags Entertainment Corp. (SIX) Announces Disappointing Financial Results
In June 2014, Six Flags Entertainment Corp. (SIX) announced the signing of its agreement to build multiple Six Flags-branded theme parks in China with Riverside Investment Group Co. Ltd. (“Riverside”), touting the partnership as an opportunity to “supercharge revenue growth.” However, on February 14, 2019, Six Flags shocked investors with its negative revenue adjustment of $15 million, citing delays in expected opening dates. Then, on January 10, 2020, Six Flags revealed it continued to encounter macroeconomic challenges, resulting in no realized revenue for fourth quarter 2019. Finally, on February 20, 2020, the Company announced a net loss for Q4 2019, citing “charges of approximately $10 million related to the Company’s China development agreements and certain unrelated litigation matters.” On this news, the stock fell to $31.89 per share, representing a 52% decline from its class period high of $66.69 per share.
