Shares of amusement park operator Six Flags Inc. (NYSE: SIX) dropped on Thursday, a day after the company reported a narrower quarterly loss on Thursday, with increased revenue coming from higher attendance and higher revenue per capita.

The New York-based company reported that in its first quarter ending March 31, the company lost $176.1 million, or $1.86 per share, compared to a loss of $246.5 million, or $2.63 per share a year ago.

Analysts surveyed by Thomson Financial expected, on average, a loss of $1.93 a share.

The first quarter of 2007 marked another period of progress for Six Flags. Attendance and revenue per guest both increased relative to a year ago, while corporate alliances continued to play an increasing part of our top-line mix, said Mark Shapiro, Six Flags President and Chief Executive Officer.

To improve its bottom line, the struggling company is in the process of refinancing its debt and has completed the sale of seven of its parks.

Contributing to the company’s improved performance was an attendance increase of 6 percent to 1.22 million. Higher visitor spending, sponsorships and other sources pushed per capita revenue up 13 percent to $41.51.

The company also cuts costs and expenses from continuing operations by 15 percent for the quarter, led by reduced costs on the disposal of certain rides and attractions.

The loss from continuing operations for the first quarter was $161.2 million, or $1.76 per share, compared to $195.3 million, or $2.14 per share in the year ago period.

The sale of 7 parks in April for a total of $275 million in cash, and $37 million receivable, will be used by the company to pay its debts, it said.

Shares of Six Flags dropped 28 cents, or 4.34 percent to $6.17 in early morning trading on the New York Stock Exchange.