Thursday, May 3, 2007

Heard On... Cedar Fair 1st Qtr '07 Call

Got a chance to listed to the Cedar Fair 1st quarter conference call just now. To keep it simple, I'll just list the things I heard that were interesting.

• The company has seen between $25-30 million in cost savings since June through the paramount purchase.
• They now do all online ticket sales in-house, on a system they obtained that Paramount already had in place.
• Season Pass sales are down at the former Paramount Parks so far this year. This is probably because Cedar Fair upped their prices and removed most of the amenities that Paramount gave out.
• 2007 outlook of total revenues of $950 million to $1 billion.
• 1st quarter revenues for 2007 on a same park (i.e. no paramount parks) basis were up 7%.
• Current debt is $1.88 billion. (and I'm scared by my credit card bill)
• One caller made a somewhat snide comment about needing a casino at Cedar Point to draw visitors, and Dick quickly replied "We tried that."
• Dividend increases for next few years will be a penny or two at most.
• In 4 or 5 years they might be in a position to once again look for another acquisition. So no rumors of Cedar Fair buying anything till then.

That's it!