That's bad news for two big Six Flags investors - Washington Redskins owner Daniel Snyder, who won a proxy fight for control of the company in 2005, and Microsoft's Bill Gates, whose investment fund backed Snyder. As of March 31, Snyder, now the company's chairman, owned about 5.4 percent of Six Flags, and Gate's investment fund, Cascade Investments, owned 11 percent, the most recent securities filings indicate.
"We aren't where we want to be, but I think we are heading in the right direction," said Snyder in an interview in late June. Cascade declined to comment on its Six Flags investment.
Shapiro, 38, said he wants to attract a family crowd with more modest roller coasters and kiddie rides. The new Dark Knight coaster at Six Flags Great Adventure in Jackson, N.J., tied to the latest Batman movie, cost about $7.5 million to build, compared with $20 million or so for giant coasters like the Goliath in Georgia. Its top speed is just 30 mph, less than half of Goliath's top speed. It's housed in a dark building, which makes it harder to notice how much smaller it is than its high-octane competitors.
"My strategy makes perfect sense," said Shapiro. "It's just whether we have enough money. So I need to make recognizable progress this year."
Previous Six Flags owners spent heavily on new rides, acquisitions and expansion causing the debt load to balloon.
Snyder, whose investment company was a large stockholder, began pushing in 2004 for Six Flags to bring in new management, sell off some parks, and begin going after families rather than thrill-seeking teenagers.
Six Flags used to spend $200 million or more a year on capital expenditures, mostly on new roller coasters and other rides. It has cut that figure to about $100 million a year, an amount Mr. Speed calls "sustainable."
Shapiro also has been trying to boost revenue from licensing deals and movie tie-ins. He also sees advertising and licensing possibilities all over the parks. Flat-screen TVs bombard people standing in lines with advertisements for everything from Chrysler cars to Pampers diapers.
Annual revenue from licensing deals is expected to jump to about $56 million this year, from $16 million in 2005.
Shapiro readily admits that this year is a critical one for Six Flags. Shortly before Memorial Day, in an effort to boost summer attendance, he cut ticket prices across the country by an average of about $10. He added a weekly concert series with performers intended to appeal to preteen girls, such as Vanessa Hudgens of Disney's High School Musical. Attendance this year, through June, is at year-ago levels.
