Six Flags has had a bumpy ride.

The company's management was unseated three years ago after a shareholder power play, placing former ESPN programming chief Mark Shapiro in the hot seat. Since then the amusement park chain has focused less on the blockbuster roller coasters it is famous for and more on attracting children, families, and licensing dollars.

Alexander Acosta/aacosta@ajc.com (ENLARGE)

Known for rides such as the roller coaster Goliath, Six Flags Over Georgia is looking to a strategy that includes concerts and a kid-friendly section themed around Thomas the Tank Engine to broaden its appeal.

ATTENDANCE AT THE PARKS Statistics are year-over-year. Second quarter 2008: declined 3% to 8.6 million First quarter 2008: increased 19% to 1.4 million Fourth quarter 2007: increased 4% to 2.8 million Full year 2007: increased .4% to 24.9 million BUSINESS Latest Headlines: One consolation for Atlanta: jobless woes worse elsewhere  Restaurants offering summer freebies  Weather Channel changing up 'On the 8s' tunes  AGL to pay $5M fine for violating gas pipeline policy  Financing renewed in Peachtree Hills Place project  • More business news • Business photo galleries

Six Flags Over Georgia in Austell, one of the company's 20 parks, has been moving lock-step in accordance with that strategy.

Twenty-five concerts were scheduled this year to broaden entertainment options. On May 17, the park opened a kid-friendly, $2.5 million section themed around the cartoon character Thomas the Tank Engine.

But Six Flags' strategy is up against soaring gas and food prices that have sapped consumers' fun money.

Last year, Six Flags lost $253.2 million. The company's stock has consistently underperformed amusement park competitors Disney and Cedar Fair. Shares plunged almost 44 percent in a single trading day in July.

On Monday morning, shares surged nearly 16 percent on news of an unexpected second-quarter profit. But by day's end the stock had lost ground, closing at $1.12, down 8 percent for the day.

Six Flags beat Wall Street's expectations by reporting a profit of $89.1 million, or 63 cents a share, up from a $50.9 million loss last year. Analyst consensus had predicted a loss of 19 cents a share. The company got a boost from a $107.7 million gain from a debt repayment. Revenue increased only slightly, rising .6 percent to $345.7 million.

Shapiro said in a conference call Monday that diversifying company operations allows it to increase revenue without increasing attendance, which has been flat.

"With today's current trends, we can do it without attendance," he said. "Just imagine what Six Flags is going to do when consumer start spending again."

Year-to-date attendance remained steady at 10.1 million, perhaps aided by sharply discounted gate fees. In late April, Six Flags Over Georgia slashed ticket prices by $10 to $39.99, the lowest price in eight years.

But the company is still at a $55.3 million loss for the first six months of 2008.

Six Flags also is saddled with almost $2.3 billion in debt, which IBISWorld senior analyst George Van Horn said makes the company vulnerable as credit gets tighter.

By licensing the Six Flags brand, he said, the company can expand revenue without making costly investments in roller coasters that can carry $20 million price tags.

Revenue from licensing and sponsorship increased 50 percent to $25.9 million in the first six months of 2008. On April 15, the company announced a partnership with Gulf Finance House in Bahrain to allow the bank to license the Six Flags brand for theme parks in China.

Six Flags also plans to break ground on its first theme park outside of North America in Dubai next year.

Van Horn said Six Flags has been taking the right steps by cutting costs and diversifying operations, but he said the company is still in for a rough stretch.

"They're not going to change their parks overnight," he said. "The cards for this year, to some degree, have already been dealt."

He predicted that amusement park revenue will drop 2.3 percent across the industry in 2008.

Six Flags plans to withhold dividend payments for the second quarter in a row.

Matrix USA Director of Research Roy Ophir said that's the right move.

"I think any company that pays a dividend with a performance like this would have to have their heads examined," he said. "They're going into a difficult economic environment, and their particular type of product is very discretionary."

Six Flags Over Georgia spokeswoman Hela Sheth said the company hopes fuel costs keep people closer to home, making them more likely to visit amusement parks than go on long drives.

Even if the economy improves, Van Horn, the IBISWorld analyst, forecasts another problem on the horizon for Six Flags — an aging U.S. population less interested in fast-paced thrills.

"To reposition an amusement and water park operation to an older population is really difficult," he said.