NEWS: Cedar Fair Posts Losses

[robbalvey]

http://crainscleveland.com/news.cms?newsId=3340

 

First-quarter losses widened 20% for amusement park operator Cedar Fair LP (NYSE: FUN) on construction expenses at its Geauga Lake park in Aurora.

 

For the period ended March 27, the Sandusky-based company, which operates Cedar Point, posted a loss of $24.6 million, or 46 cents per share, compared with a loss of $20.5 million, or 40 cents per share, in the year-ago quarter.

 

The company beat the consensus analysts’ estimate of losses of 62 cents per share, according to a poll of five analysts by Thomson First Call.

 

Excluding Geauga Lake costs, the company would have lost 39 cents per share, according to a statement from Cedar Fair.

 

Of Cedar Fair’s seven amusement parks and five water parks, only two are open all year — Knott’s Berry Farm near Los Angeles and Castaway Bay, an indoor water park in Sandusky.

 

CEO Dick Kinzel said the company generates nearly all its revenue in a 130-day period beginning in early May.

 

First-quarter revenues were up 7% to $24.8 million. The company chalked up the revenue increase to Castaway Bay, which opened last year. Results from the Sandusky water park helped offset a $2 million revenue shortfall at Knott’s Berry Farm that the company blamed on “record” rainfall in southern California.

 

For the full year, Mr. Kinzel projected revenue growth of 6% to 8% from last year’s $542 million.

 

Geauga Lake’s new $24 million water park, once scheduled to open May 28, last month was pushed back to an unspecified date in mid-June.

 

A Geauga Lake spokeswoman did not immediately return a call seeking comment.

 

They are no better than Six Flags lately, IMO. If anything, possibly worse. At least Six Flags can say they are spread thin throughout something like 30 parks whereas Cedar Fair operates about 10.

 

Like I said before, while Cedar Point seems to be the exception, I haven't been to a Cedar Fair park lately that I've found to be better than your average Six Flags park.

 

Oh, yeah, and I found this entertaining:

 

Results from the Sandusky water park helped offset a $2 million revenue shortfall at Knott’s Berry Farm that the company blamed on “record” rainfall in southern California.

 

Well maybe if they wouldn't close the park when it starts to sprinkle outside, this wouldn't have been a problem!

 

--Robb "According to the Cedar Fair annual report, Silver Bullet is a 'new type of experience' for Southern California." Alvey

[Freefallin]

I should have known you would throw in that last bit.

 

Overall they say SF is on a rebound from what I read yesterday but CF seems to be doing quite the oppsite.

 

 

Matt - The Yeild on CF (FUN) really kicks ass. Might have to buy a few shares when it falls here.

[Sir Clinksalot]

I find it hilarious that Six Flags is posting gains and CF is posting losses. Deservedly so IMO.

 

I haven't been to Knott's since Haunt, haven't had the desire to go ride SB, and probably won't anytime soon. Yet we are going to our 3rd Six Flags park this year in a few weeks. And will hopefully hit at least 1 other Six Flags park at some point this year.

 

We may not get to Knott's this year until Haunt, if even then.

[SharkTums]

You know, Florida had record hurricanes last year and I didn't hear the Florida parks blaming mother nature!

 

It's important for you non-Californians to also realize that 'record rainfall' means something like 30inches over 6 months. And like 1'' a day is a storm watch!

 

Seriously, as much as we complain about Knotts the rain thing really is ridiculous. I've been to Cedar Point multiple times in MUCH more severe rain and weather, as well as most other amusement parks!

 

Elissa "stupid knotts!" Alvey

[Coasterlicious]

Well I guess you cant be the best forever..

[robbalvey]

When were they ever the best?

 

Seriously, aside from Cedar Point, I think ALL of the CF parks are lacking big time.

 

--Robb

[Coasterlicious]

When were they ever the best?

 

Seriously, aside from Cedar Point, I think ALL of the CF parks are lacking big time.

 

--Robb

 

It was just a general statement.. "you cant always be the best". I didnt mean they were the best..

[Freefallin]

Well in that regard referring back to the Original post (not the I hate Knotts thread) the CP stock was the best for a long time, "the gold standard" as they say. It will be interesting to see if they try and raise the yield like they do every year, with a profit/loss as they have posted I highly doubt they would. That would have to be the first time in over 10 years (I think this is what I have read) that they would have not raised their yield.

 

Matt - Not a very good sign, even a worse sign is when they blame weather which is EXACTLY was SF does on a regular quarterly basis.

[Sir Clinksalot]

I find it funny that Magic Mountain, Disneyland, USH, Sea World, LegoLand and every other SoCal park faced the same "weather" as Knott's did but didn't bother to use it as an excuse for poor attendance.

[Freefallin]

^lol I’m seriously going to track down SF company earnings reports for all of the last 5 years. Most of them use the exact same excuse for having low attendance, do you want to guess what that excuse was? Weather. Not to totally defend CF here but at least they can say they had record rainfall. Not like SF who blamed the weather when there was a drought.

 

 

Matt - As for SF they cant blame the weather anymore, We can thank Dan Snyder for that.