The Interpreter Posted January 7, 2009 Share Posted January 7, 2009 http://community.investopedia.com/news/IA/...IS-SIX0106.aspx Quote Link to comment Share on other sites More sharing options...
BoddaH1994 Posted January 7, 2009 Share Posted January 7, 2009 He seemed to actually have nice things to say about FUN. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted January 7, 2009 Author Share Posted January 7, 2009 With that in mind, the last sentence bears* repeating: ...But the sustained economic downturn, the company's heavy debt load resulting from the purchase of Paramount Parks and the slumping rust belt economy indicate that investors should proceed with caution. *Bad pun not intended...honest! Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted January 7, 2009 Share Posted January 7, 2009 I think we will have a better idea of how things are going in July. Then when we get to fall it will be clear. I remember it was said they would be in good shape in 3-5 years. I don't see where they are in a better position in 2009 than they was in 2006. Quote Link to comment Share on other sites More sharing options...
74Gibson Posted January 7, 2009 Share Posted January 7, 2009 I think we should all do everything we can to get as many friends, family, collegues, etc... as we can to the parks this summer. It may end up only being a drop in the bucket but every bit helps. Think of groups trips like the company outing, youth group, sports team. I'm going to call up a bunch of my old friends and I'm sure a group will go and we'll have a blast. Quote Link to comment Share on other sites More sharing options...
RailRider Posted January 7, 2009 Share Posted January 7, 2009 Well regional parks, especially those ownded by Cedar Fair did quite well during the 2008 seasson and I think the same will be said about 2009. Folks will take more short regional trips rather than the big week long excursion to the beach or other tourist destination. I look for another strong year for regional parks and a strugle for parks like Disney. Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted January 7, 2009 Share Posted January 7, 2009 While that philosophy could greatly benefit parks like Kings Island, and other Cedar Fair parks located near large metropolitan areas. Cedar Point, which relies more on visitors from outside the Sandusky area for more of its visitors, could face a difficult year. Especially with no new major attractions headed into the Sandusky park and the continued troubles of the automakers in nearby Detroit. Quote Link to comment Share on other sites More sharing options...
CedarPointer Posted January 7, 2009 Share Posted January 7, 2009 Cedar Fair is known for its super roller coasters, especially at its home park, Cedar Point, in Ohio. From the American classic, Blue Streak, right on up to the recent Millennium Force... Evidently, they didn't feel that Top Thrill Dragster, Wicked Twister, Maverick were that important... (?) Quote Link to comment Share on other sites More sharing options...
Racerrider Posted January 7, 2009 Share Posted January 7, 2009 i think CF will be out of their outstanding debt by 2013. Their parks pull in a lot of people, and if gas prices go up again people would rather drive 30 miles than 500 to get to orlando Quote Link to comment Share on other sites More sharing options...
tigellinus Posted January 7, 2009 Share Posted January 7, 2009 ^^I don't know the specifics, but apparently a large portion of their debt is coming due in like 2010 or something, and obviously at the moment getting credit or refinancing is very hard (just ask Great Wolf Lodge in Mason), and Terpy has hinted that Cedar Fair simply "staying the course" will NOT be a legitimate option, and that indeed something will need to be done to address that situation, a la how Six Flags has a large debt due pretty much like NOW and Terpy seems to think they have no way to pay it either. Although, at last check SF is alive and kicking, so I don't know what's going on there? Quote Link to comment Share on other sites More sharing options...
pkimike Posted January 7, 2009 Share Posted January 7, 2009 ^^I don't know the specifics, but apparently a large portion of their debt is coming due in like 2010 or something, and obviously at the moment getting credit or refinancing is very hard (just ask Great Wolf Lodge in Mason), and Terpy has hinted that Cedar Fair simply "staying the course" will NOT be a legitimate option, and that indeed something will need to be done to address that situation, a la how Six Flags has a large debt due pretty much like NOW and Terpy seems to think they have no way to pay it either. Although, at last check SF is alive and kicking, so I don't know what's going on there? Two questions after reading this: 1. Are they really still 1.7B in debt? I thought I read it had lowered from there. 2. Didn't they finance an extra 500 Million when they bought the Paramount Parks? Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted January 7, 2009 Share Posted January 7, 2009 They purchased Paramount Parks for $1.46 billion. They already had some existing debt from prior park purchased (like the purchase of Geauga Lake from Six Flags). I believe, and don`t quote me on this number, that at one point in time, they had close to $1.9 or $2 billion in debt right after the transaction of the Paramount Park sale closed. And it should be noted, that this year`s capital expenditure plan is slightly smaller than last years. It was going to be a little larger (but not at last years numbers) had Great America`s GCI coaster not been postponed a year. The funds that they saved from the decreased cap ex. projects were likely going to be used for debt reduction. At least that is what Cedar Fair indicated in their last quarterly conference call. Quote Link to comment Share on other sites More sharing options...
Racerrider Posted January 7, 2009 Share Posted January 7, 2009 ^^I don't know the specifics, but apparently a large portion of their debt is coming due in like 2010 or something, and obviously at the moment getting credit or refinancing is very hard (just ask Great Wolf Lodge in Mason), and Terpy has hinted that Cedar Fair simply "staying the course" will NOT be a legitimate option, and that indeed something will need to be done to address that situation, a la how Six Flags has a large debt due pretty much like NOW and Terpy seems to think they have no way to pay it either. Although, at last check SF is alive and kicking, so I don't know what's going on there? Two questions after reading this: 1. Are they really still 1.7B in debt? I thought I read it had lowered from there. 2. Didn't they finance an extra 500 Million when they bought the Paramount Parks? 1.7b was their debt from the Paramont buyout, which some has depleted, and 6F is just under horrible managment and if you ask me, if they're in HUGE debt, they don't have to build the tallest and fastest roller coaster in the world evry time someone else (with money) does Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted January 7, 2009 Share Posted January 7, 2009 Check out my post Racerrider, which I posted just a moment before yours. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted January 7, 2009 Author Share Posted January 7, 2009 Actually, Paramount Parks cost Cedar Fair $1.24 billion. In addition to a then current small debt on their balance sheets, Cedar Fair rather famously borrowed additional moneys to pay out dividends in the future*...a strategy that was either very, very wise or very, very foolish. The jury is still out on that one. Also, Racerrider, current Six Flags management ousted prior Six Flags management of storied days...they of the world record breaking attractions... *FUN is currently yielding 14.4% in dividends alone: http://www.fool.com/investing/high-growth/...ng-excuses.aspx Quote Link to comment Share on other sites More sharing options...
pkimike Posted January 7, 2009 Share Posted January 7, 2009 Actually, Paramount Parks cost Cedar Fair $1.24 billion. In addition to a then current small debt on their balance sheets, Cedar Fair rather famously borrowed additional moneys to pay out dividends in the future...a strategy that was either very, very wise or very, very foolish. The jury is still out on that one. Also, Racerrider, current Six Flags management ousted prior Six Flags management of storied days...they of the world record breaking attractions... I thought I remembered they borrowed extra money. I remember reading that they also did this for capitol expenditures for the first couple of years after the purchase. If would probably be impossible to find that article now. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.