Hank Posted December 19, 2006 Share Posted December 19, 2006 This was in the Toledo Blade today... Article published Tuesday, December 19, 2006 By GARY T. PAKULSKI BLADE BUSINESS WRITER SANDUSKY -The chairman and chief executive officer of Cedar Point's parent company doesn't plan to jump off the merry-go-round any time soon. Richard Kinzel, who just last year indicated he planned to retire as early as January, 2008, has signed a new contract that could keep him at the helm of Cedar Fair LP until 2012. The publicly traded Sandusky partnership revealed the existence of the contract in a regulatory filing Dec. 15. It guarantees Mr. Kinzel, 66, a minimum of $1.2 million annually. "We just went through the Paramount Parks acquisition and since then he has expressed an interest in staying … and seeing that through," spokesman Stacy Frole said. The $1.2 billion cash deal with CBS Corp. included five amusement parks with $420 million in annual revenues and catapulted Cedar Fair from the world's fifth largest amusement park owner to third behind only Disney Co. and Six Flags Inc. Under Mr. Kinzel, Cedar Fair has grown from just two amusement parks with $96 million in revenues two decades ago to a dozen outdoor ride parks, six water parks, an indoor park, and hotels bringing in nearly $1 billion annually. In the three months ended Sept. 30, the company booked a profit of $133 million, or $2.42 per partnership unit. That was down from $171 million or, $3.11 a unit, a year earlier. Investors will welcome Mr. Kinzel's decision to stay, said Robert Routh, an analyst with Jef-feries & Co. Inc. "He has done a phenomenal job and everybody likes him," Mr. Routh said. "With the Paramount acquisition, that has likely reinvigorated him with the prospects for the business and the size of a company that has nearly doubled." Mr. Routh said it is possible that Mr. Kinzel doesn't plan to remain for the contract's duration but wants to signal that he plans to stay for the foreseeable future. Cedar Fair's spokesman said that although the contract gives Mr. Kinzel the option of retiring before the contract expires and becoming non-executive chairman, he intends to stay through 2012. She said he is eager to see through the financial turn-around of the Paramount Parks, some of which have struggled in the past. Ms. Frole said Mr. Kinzel's retirement plans were never firm, although in a 2005 interview with The Blade he discussed plans to spend more time with his children and grandchildren. Under the new deal, he will receive a base salary of at least $1.2 million a year plus compensation geared to performance. The company will also buy a $2 million life insurance policy for him that will run through 2018, whether he is employed by the company or not. The contract was finalized Dec. 12 for a term beginning Dec. 1 and concluding Jan. 2, 2012. The company also negotiated new contracts with two other top executives, regulatory filings show. Jacob Falfas, chief operating officer, got a three-year deal with a guaranteed $600,000 annually. Peter Crage, chief financial officer, got a two-year deal for at least $400,000 a year. Quote Link to comment Share on other sites More sharing options...
RailRider Posted December 19, 2006 Share Posted December 19, 2006 This is great news for Cedar Fair and Kings Island. This will also be looked upon favorable by investors because it will show stability within a company that has just doubled in size. Just think what Cedar Fairs stock would have done if you had the acquisition go throught and then 12 months or so later you have Kinzel retiring from the company. Thats a lot of change real fast and would have been dificult for Cedar Fair to overcome all of those negative. This will keep them in a favorable position on WallStreet and should have more investors willing to buy more Cedar Fair stock which is always a good thing. Quote Link to comment Share on other sites More sharing options...
HelixSpiral Posted December 22, 2006 Share Posted December 22, 2006 Jacob Falfas, chief operating officer, got a three-year deal with a guaranteed $600,000 annually. Oh yay. [/sarcasm] Quote Link to comment Share on other sites More sharing options...
Cody Posted December 22, 2006 Share Posted December 22, 2006 (edited) This might be plagiarism, you didnt supply link! Edited December 22, 2006 by Dane Quote Link to comment Share on other sites More sharing options...
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