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Cedar Fair Announces Q3 and 9 Month Results


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I would imagine KI will lead the pack next year seeing as it will have DB and Wonderland had Behemoth this year. Also Michicgans Adventure had a record breaking year attendance wise this year. The Northern region is very strong for CF and should continue to be next year as well.
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A few impressions from today's conference call, as seen from a KI fan's perspective:

* Capital Expenditures for the entire chain are only $62 million for next year (down from a more historical $80-90 million per year....the difference, a financial officer said, can largely be attributed to the deferring of a wooden coaster that had been slated for Great America, as there have been zoning issues with Santa Clara...and the difference will be dedicated to debt reduction). Of the $62 million, $22 million, or more than a third, is slated for Diamondback at Kings Island. Two other coasters are slated, Prowler at Worlds of Fun and Carolina Cobra at Carowinds. Valleyfair is to get a wave pool and poolside cabanas, there is to be a variety of new shows at the parks...Shows, it was noted, are not capital intensive but please guests, including ice shows. There also will be new signage, water fountains and landscaping at many parks.

* As to real property, the hotel at Geauga Lake has been sold, but the Canadian property sale has been put on the back burner.

* It is way too early to speculate about 2009 "season's pass" sales.

* In October, strong attendance was seen but people were spending less in the parks...people were taking advantage of their "season's passes."

* The Kings Island coaster was ordered two years ago, Prowler was ordered last year.

* As for Great America and the 49'rs, nothing new to report and no timetable in place. They want to put the stadium in Cedar Fair's parking lot. The ball is in their court. We are continuing to operate and put capital into the park.

* As for increased costs of commodities and utilities, the company has always tried to control costs with paramount goals of safety and service to customers, which will not be sacrificed. "We have nowhere to go but increase prices" as costs have been contained and the company has always been operated as if it were a "Mom & Pop" operation.

* The debt covenants ratchet down further at the end of the third quarter, but there is a cushion still there...one covenant, if not met, would require suspension of distributions, but that is not foreseen to occur.

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