BoddaH1994 Posted May 5, 2009 Share Posted May 5, 2009 http://www.cedarfair.com/ir/press_releases...mp;story_id=193 SANDUSKY, OHIO, May 5, 2009 -- Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and active entertainment, today announced results for the first quarter ended March 29, 2009. Historically, first quarter results represent less than 5% of the Company’s full-year revenues. The operating loss for the first quarter of 2009 remained relatively unchanged at $56.3 million, despite the period having 31 fewer operating days when compared with the first quarter of 2008. Net revenues during this same period decreased to $26.5 million from $40.4 million a year ago as a result of the fewer operating days. In addition, last year’s first quarter revenues benefited from an early Easter/Spring Break season, which fell during the second quarter this year. Operating results for the first quarter include normal off-season operating, maintenance and administrative expenses at the Company’s seasonal amusement and water parks, and daily operations at Knott’s Berry Farm and Castaway Bay. “Only four of our 17 properties were in operation at the end of the first quarter,” said Dick Kinzel, Cedar Fair’s chairman, president and chief executive officer. “The other parks, including our largest seasonal parks: Cedar Point and Kings Island, located in Ohio, and Canada’s Wonderland in Toronto, were in the final stages of preparing to open for their operating seasons. These pre-season operating costs were in-line with our expectations for the quarter.” Interest expense for the first quarter decreased $3.9 million, or 12%, to $28.9 million compared with $32.8 million in 2008, primarily due to lower rates on the Company’s variable-rate debt. A net credit for taxes of $31.9 million was recorded to account for the tax attributes of the Company’s corporate subsidiaries and publicly traded partnership taxes during the first quarter of 2009 compared with a net credit for taxes of $44.8 million in the same period a year ago. After interest expense and credit for taxes, the net loss for the first quarter ended March 29, 2009, totaled $53.3 million, or $0.97 per diluted limited partner unit. For the first quarter ended March 30, 2008, the Company reported a net loss of $43.8 million, or $0.81 per diluted limited partner unit. Cash and Liquidity “In terms of both liquidity and cash flow, we ended the first quarter of 2009 in sound condition,” said Kinzel. “Our cash position, together with existing lines of credit, which do not expire until August 2011, provide sufficient financial flexibility to manage working capital needs and support growth through our capital expenditure program.” As of March 29, 2009, the Company had $1.688 billion of term debt and $148.7 million in borrowings under its revolving credit facilities. Of the total term debt, which does not mature until February and August of 2012, only $17.3 million is due within the next twelve months. “Reducing our debt and strengthening our balance sheet is a priority for us,” said Kinzel. “In the first quarter we retired an additional $13 million of term debt as a result of reducing our quarterly distribution. This is just the first step in making meaningful reductions in our debt over the next two years. We continue to pursue the sale of excess land in the Toronto and Cleveland markets, along with a potential sale of Worlds of Fun, in Kansas City, Missouri, and Valleyfair, in Shakopee, Minnesota. We have received interest regarding the two amusement parks since our announcement in March and have entered into discussions with the Vaughan Health Campus of Care in regards to the excess land in Toronto. At this point in time, it would be premature to speculate on either the price or timing of any potential transaction.” 2009 Operating Season Commenting on the upcoming season Kinzel said, “Given that the first quarter is not a meaningful part of our full-year financial performance, and the Easter/Spring Break season occurred in the month of April this year, it would be premature to comment on expectations for the season. We continue to look for new and creative advertising and promotional campaigns that will capture the attention of our guests in these tough economic times. We also have a strong capital program in place for 2009 that features a variety of new shows and attractions, including three roller coasters, a wave pool, family rides and more than 50 live shows across our parks.” To date the Company has seven of its ten seasonal amusement parks in operation. “The broader economy will continue to be a challenge for us this year, but one we are ready to face,” added Kinzel. “We have a long history of performing well during periods of recession and we are hopeful the 2009 operating season is no exception. We believe our high quality parks and resorts will continue to fulfill the need for entertainment with families that don’t want to travel long distances for vacation. Our employees have worked hard to prepare the parks for opening and the early-season feedback from customers has been very positive. We are hopeful the outstanding value we offer in a full day of entertainment will prove to be desirable this season and be a tradition for many years to come.” The company will host a conference call with analysts today, May 5, 2009, at 2:00 p.m. Eastern Time, which will be web cast live in “listen only” mode via the Cedar Fair web site (www.cedarfair.com). It will also be available for replay starting at approximately 5:00 p.m. ET, Tuesday, May 5, 2009, until 11:59 p.m. ET, Tuesday, May 19, 2009. In order to access the replay of the earnings call, please dial 1-800-406-7325 followed by the access code 4058095. Cedar Fair is a publicly traded partnership headquartered in Sandusky, Ohio, and one of the largest regional amusement-resort operators in the world. The Company owns and operates 11 amusement parks, six outdoor water parks, one indoor water park and five hotels. Amusement parks in the company’s northern region include two in Ohio: Cedar Point, consistently voted “Best Amusement Park in the World” in Amusement Today polls and Kings Island; as well as Canada’s Wonderland, near Toronto; Dorney Park, PA; Valleyfair, MN; and Michigan’s Adventure, MI. In the southern region are Kings Dominion, VA; Carowinds, NC; and Worlds of Fun, MO. Western parks in California include: Knott’s Berry Farm; California’s Great America; and Gilroy Gardens, which is managed under contract. Quote Link to comment Share on other sites More sharing options...
tigellinus Posted May 5, 2009 Share Posted May 5, 2009 Alright, Terpy...crack your knuckles, sit back, and read between the lines for us!! Quote Link to comment Share on other sites More sharing options...
goofywdw Posted May 5, 2009 Share Posted May 5, 2009 ^Haha That means almost nothing to me. I need help as well. It sounds bad but I can't really tell. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted May 6, 2009 Share Posted May 6, 2009 A short translation: a. We always lose money in the quarter just ended, nothing to see there... b. We cut our distribution and paid off $13 million of our debt...not much, but it sure did affect some of our unit holders....thanks for your help. c. Unlike a certain other company that numbers its flags, our credit doesn't run out until August 2011, if then. Watch over there, they are the ones in REAL trouble. d. We've built a lot of good stuff, planned some great shows and have other stuff up our sleeves that we hope and pray works...the economy is bad, we hope people come to our parks, enjoy themselves and spend money. Get back with us in three months and we will know how it is working...and we may have news to report on land sales. Terpy, who adds that no investment advice is to be implied herein...see your investment advisor if you have questions about investments, not some random poster on the Internets! Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted May 6, 2009 Share Posted May 6, 2009 Conference call verbatim transcript: http://seekingalpha.com/article/135508-ced...call-transcript Quote Link to comment Share on other sites More sharing options...
Diamondback FOF Posted May 6, 2009 Share Posted May 6, 2009 As of March 29, 2009, the Company had $1.688 billion of term debt and $148.7 million in borrowings under its revolving credit facilities. *whistles* That is a lot of money. c. Unlike a certain other company that numbers its flags, our credit doesn't run out until August 2011, if then. Watch over there, they are the ones in REAL trouble. Terpy, who adds that no investment advice is to be implied herein...see your investment advisor if you have questions about investments, not some random poster on the Internets! What is the difference between the credit line running out: “Our cash position, together with existing lines of credit, which do not expire until August 2011, provide sufficient financial flexibility to manage working capital needs and support growth through our capital expenditure program.” and when the debt matures Of the total term debt, which does not mature until February and August of 2012 Also, as to not coming to you for financial advice, I will if you are an investment advisor. Also, I probably would even if you aren't . Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted May 6, 2009 Share Posted May 6, 2009 When your line of credit runs out, you can't borrow any more without a new line. When your debt matures, it must be paid, in full (even if you have to borrow money to do it, sell stuff or go bankrupt to avoid it). Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted May 6, 2009 Share Posted May 6, 2009 Also of interest from the conference call: Games are soft, but according to Mr. Kinzel, people have to eat (but not necessarily in the park, sayeth the Terpy...Mr. Kinzel, meet this thing, it's called a cooler...and there's also those guests who leave the park to eat). Season pass sales are down. Group sales are down. Focus is on debt repayment right now. If it weren't, hotels could be developed at Carowinds and Kings Dominion. Geauga Lake land will not be sold for a song or given away for far less than it is worth. It's on a lake, it's pretty, it has potential. Some day it will be sold. Forty-niners deal is still being discussed.... Quote Link to comment Share on other sites More sharing options...
Diamondback FOF Posted May 6, 2009 Share Posted May 6, 2009 Mr. Kinzel, meet this thing, it's called a cooler. I'm sure he has. It's called a wine cooler. But seriously, if CF doesn't find a new line of credit after August 2011, then nothing new can be built if they don't have the cash, right? Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted May 6, 2009 Share Posted May 6, 2009 If they can't refinance by then, stuff would have to be financed from cash flow, and they'd have to do quite the nimble dance to avoid violating any of the debt covenants (wherein the company promises the lenders to meet certain criteria...or pay the money back immediately if they do not). Building new stuff would be the least of their problems at that point. You'd see them selling off parks and assets like mad in order to raise funds to pay off the debt. Or selling the company. Let's hope it doesn't come to that... Quote Link to comment Share on other sites More sharing options...
KIfan1980 Posted May 6, 2009 Share Posted May 6, 2009 My quick reaction to the above (I'm not an investment adviser so don't see this as advice), - Generic statements, but factual - CF is not in imminent danger like the company formerly known as SIX on the NYSE - Prepares investors for a weak year (this should not shock anyone) due to econcomy - Gives hope that choices made now plus an economic recovery will enable CF to be a good investment in the future Stock dropped 2% today while market was only slightly down and moved only after the conference call. This would likely mean that the institutional investors had misgivings. You may love the parks - I wouldn't recommend investing in the stock. Quote Link to comment Share on other sites More sharing options...
tigellinus Posted May 6, 2009 Share Posted May 6, 2009 The games has definitely seemed soft to me, but that's just anecdotal. Food has seemed similar to past seasons, however. I'm a little surprised to hear about season pass sales (not so much about group), but I'm guessing while passes at KI are up, everywhere else is really down! Quote Link to comment Share on other sites More sharing options...
HandsUp Posted May 6, 2009 Share Posted May 6, 2009 I'm a little surprised to hear about season pass sales (not so much about group), but I'm guessing while passes at KI are up, everywhere else is really down! Another anecdote-but I had more or less boycotted PKI because it wasn't the park where I grew up. With CF in charge, the ensuing awesome rides, and more of a sense of frugality this past Christmas-my parents got my wife and I platinum passes, as well as gold passes for my brothers' whole family. While these weren't cheap-it was still a better value than several smaller gifts that could be enjoyed by one of us or the other-not so much both of us. We are coaster freaks with no kids, and will go to KI a bunch, as well as CP and Carowinds...where we will no doubt spend at least some money on food. I have to think that there are more people like us out there. With the PPs, they really are catering to the ride enthusiast-and IMO, it's about time (I hope it pays off for them). I really doubt if we'd have gotten passes if not for DB. Quote Link to comment Share on other sites More sharing options...
IndyGuy4KI Posted May 6, 2009 Share Posted May 6, 2009 I really doubt if we'd have gotten passes if not for DB. I would have gotten the passes, but from the opening day line to get on DB, I think it was a good investment for the park. I know I would not have went opening day without it. Quote Link to comment Share on other sites More sharing options...
Diamondback FOF Posted May 6, 2009 Share Posted May 6, 2009 I normally do not go to opening day for KI (I go to the Reds' every year except this year) but I did go this year because of Diamondback. I wanted a First Rider shirt and I was REALLY excited to Diamondback. Normally, my family doesn't make it to KI until the beginning to middle of June. Just a quick off topic question about Platinum Passes, do they give you access to Soak City at Cedar Point? I didn't think I should start a topic for that. Quote Link to comment Share on other sites More sharing options...
PhantomTheater Posted May 6, 2009 Share Posted May 6, 2009 Yes, a platinum pass is good at all outdoor water parks owned by CF. Quote Link to comment Share on other sites More sharing options...
Diamondback FOF Posted May 6, 2009 Share Posted May 6, 2009 Ok, thanks. I will be going there next June (2010)... hopefully . Quote Link to comment Share on other sites More sharing options...
PhantomTheater Posted May 6, 2009 Share Posted May 6, 2009 That's a different scenario then, CF is known for changing there pass plans between seasons. Quote Link to comment Share on other sites More sharing options...
tigellinus Posted May 6, 2009 Share Posted May 6, 2009 Yes, a platinum pass is good at all outdoor water parks owned by CF. And Castaway Bay!! Quote Link to comment Share on other sites More sharing options...
PhantomTheater Posted May 6, 2009 Share Posted May 6, 2009 No they are not, only a discount is applied with a platinum pass. Thus the emphasis on outdoor. Quote Link to comment Share on other sites More sharing options...
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