The Interpreter Posted August 5, 2009 Share Posted August 5, 2009 http://seekingalpha.com/article/153712-ced...call-transcript Among other things: KI is a bright spot. Geauga Lake's Wildwater Kingdom is doing really well. Offers for properties for sale in the USA have been very low, and no fire sale will be entertained. More and more Paramount Parks style marketing can be anticipated, with events that draw people to the parks. A possible triggering of a debt covenant later this year cannot be ruled out. Attempts are underway to renegotiate certain provisions that otherwise might apply. See the later pages in the transcript for details. Capital spending will return to historical levels next year, with emphasis on Carowinds and Kings Dominion. Quote Link to comment Share on other sites More sharing options...
Rustbucket Posted August 5, 2009 Share Posted August 5, 2009 I found it interesting that Dick mentioned (TWICE) KI as the bright spot even during this market condition. It is also interesting that he outlined Dorney and Cedar Point as lower than expected results. Carowinds and Kings Dominion are getting new coasters next year with Great America not getting a coaster that was in the plan for this year. I assume this was due to 49ers stadium issue. I guess the plan was to put a hyper coasters in all of former Paramount Parks. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted August 5, 2009 Author Share Posted August 5, 2009 With all due respect, a $22 million addition had darn sure better improve admissions.... Quote Link to comment Share on other sites More sharing options...
KIfan1980 Posted August 5, 2009 Share Posted August 5, 2009 Quotes from link in post #1 (available in full at seekingalpha.com): "Richard L. Kinzel We've been pleased with the ablity of our individual parks to control their operating costs this year. With our industry continuing to face an uncertain economy and value-seeking consumers, we have made a concentrated effort to control costs while not sacrificing quality and guest service and of course safety would never be compromised under any circumstances." " Peter J. Crage No. All of our parks are operating profitably." Yet the company still lost ~$45,900,000 (when I actually put all the 0's there I realize it is a bigger number) in the first 6 months of the year while only paying down about a quarter ("Richard L. Kinzel I believe so. We're about $30 million to $35 million through the first half and then the remainder will be in the third and fourth quarter.") of the $129 million term debt reduction planned for this year My opinion: There is MAJOR work to do to make FUN an attractive investment and although KI was highlighted due to the addition of Diamondback which will be used as the basis for the soon to be announced work at other parks, I don't believe that CF can spend its way out of trouble and just hope for a better economy and better weather. Market results today: FUN closed at $10.92, down $1.02 (-8.54%) per http://finance.yahoo.com/q?s=FUN Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted August 5, 2009 Author Share Posted August 5, 2009 They can also raise the price of food again by a nickel or so, and then wonder why per caps went down again. They can close the park for an hour before Haunt, and then wonder why people are eating in the parking lot. Sometimes, you just have to scratch your head and say "What are they thinking? Or are they even thinking?" Quote Link to comment Share on other sites More sharing options...
Tomkatt7 Posted August 5, 2009 Share Posted August 5, 2009 Exactly!!! At this point they can raise the food and drink prices by a dollar or more. It's nor going to matter. Most people can not afford to eat there. As dumb as it sounds, if they want to make more money from food, they are going to have to lower prices in order to get people to buy it. Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted August 5, 2009 Share Posted August 5, 2009 If you think food and drink prices are high take a look at the prices in the shops. When you see retail stores have something thats not selling they lower the prices. There must be a lot of demand for the junk they are selling at the parks with the prices they have on it. Quote Link to comment Share on other sites More sharing options...
Dan Posted August 5, 2009 Share Posted August 5, 2009 I'm surprised at how much capital they are spending. However, I wouldn't be surprised if Cedar Fair goes into bankruptcy in the near future. Quote Link to comment Share on other sites More sharing options...
KI-ORIG-EMP Posted August 5, 2009 Share Posted August 5, 2009 With regards to the price of food in the park and people on KIC and other sites complaining about the high prices of the food reminds me of a story that my economics professor told us: A toll bridge in Chicago was constantly losing money due to drivers avoiding it and were willing to drive further just to avoid paying it. The officials tried everything they knew on how to raise revenues. They tried the following: 1. Raise the tolls on the bridge. This reasoning is based on the notion that by raising the tolls, commuters were paying more to cross the bridge and thus increase the revenues. They figured by having the same number of commuters crossing the bridge each day it would increase the revenues. But that was not the case. Less and less commuters crossed the bridge and were willing to drive further to avoid paying the increased tolls. The bridge officials were getting really worried and confused. The drop in revenues was cutting into the operation and maintenance of the bridge and they might have to cut back on personnel and cut back on repairs. They have tried everything they knew on how to increase the toll revenues and nothing worked. They were getting worried. Then someone said, "We have tried everything we knew on how to increase the revenues, but what about lowering the tolls?" There was no way that would work and they were dead set against it. But the fact facing them in the face forced them agree lower the tolls, even though they knew for sure it would not work. Reason being how can you increase revenues when you charge less for the product? Well what they in their tunnel vision failed to realize it by lowing prices would generate an increase in sales and revenues increased when compared to prior numbers. 2) Tolls were lowered on the bridge. After their objections over lowering the tolls, they reluctantly agreed, knowing there was no chance it would work. But how wrong they were. When it was announced, drivers crossing the bridge increased in numbers far above anything in the past. Revenues jumped and the increase was far more than they anything they ever thought of. This could apply to trying to increase food sales at the park. Rather than raise the prices by a nickel here and a dime here, what about lowering the price and also increase the variety and quality. This could apply to anything than just food sales. It could apply to admission prices, merchandise, games and others. More people might be willing to buy the product and increase the revenue, which is what the goal is. You just take a different road that will lead to the same destination. Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted August 5, 2009 Share Posted August 5, 2009 I could understand a raise of prices by a nickel or a dime but the things I looked at was dollars higher. I don't care about prices much till it gets stupid like it is now. Quote Link to comment Share on other sites More sharing options...
Diamondback FOF Posted August 5, 2009 Share Posted August 5, 2009 http://seekingalpha.com/article/153712-ced...call-transcript Among other things: KI is a bright spot. Geauga Lake's Wildwater Kingdom is doing really well. Offers for properties for sale in the USA have been very low, and no fire sale will be entertained. More and more Paramount Parks style marketing can be anticipated, with events that draw people to the parks. A possible triggering of a debt covenant later this year cannot be ruled out. Attempts are underway to renegotiate certain provisions that otherwise might apply. See the later pages in the transcript for details. Capital spending will return to historical levels next year, with emphasis on Carowinds and Kings Dominion. What is Paramount Parks style marketing? Quote Link to comment Share on other sites More sharing options...
CedarPointer Posted August 5, 2009 Share Posted August 5, 2009 with events that draw people to the parks. Quote Link to comment Share on other sites More sharing options...
Diamondback FOF Posted August 5, 2009 Share Posted August 5, 2009 I thought that just meant Paramount type of marketing, in addition to events that draw people to the park. Quote Link to comment Share on other sites More sharing options...
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