Cedar Fair Corporate Development Discussion Thread (FUN)

[jedimaster1227]

http://www.cedarfair.com/ir/press_releases/index.cfm?current_root=15&mode=story&story_id=241

 

Cedar Fair (NYSE: FUN), a leader in regional amusement parks, water parks and active entertainment, reports that its limited partners have re-elected Richard S. Ferreira, Richard L. Kinzel and C. Thomas Harvie to the Board of Directors of its general partner, Cedar Fair Management, Inc., to terms expiring in 2013.

 

The limited partners also confirmed the appointment of Deloitte & Touche LLP as the Company’s independent registered public accounting firm.

[jedimaster1227]

http://www.blooloop.com/PressReleases/Theme-Parks-Cedar-Fair-Appoints-Two-New-Members-to-Its-Board-of-Directors-/2289

 

"We are pleased to have Eric Affeldt and John Scott join our team," said Dick Kinzel, Cedar Fair's chairman, president and chief executive officer. "I believe they will provide valuable guidance and expertise for Cedar Fair in this challenging business environment."

 

Mr. Affeldt is president and chief executive officer of ClubCorp Inc., a position he has held since 2006. Prior to joining ClubCorp, he was a principal of KSL Capital Partners, the private equity firm that purchased ClubCorp in 2006. Mr. Affeldt also previously served as president and CEO of KSL's former golf division, KSL Fairways; vice president and general manager of Doral Golf Resort and Spa in Miami and the combined PGA West and La Quinta Resort and Club in California; and was a founding partner of KSL Recreation. In addition, he was president of General Aviation Holdings, Inc.

 

Mr. Scott is president and chief executive officer of Rosewood Hotels & Resorts, a position he has held since 2003. Prior to joining Rosewood Hotels & Resorts, he was the managing director of acquisitions and asset management for Maritz, Wolff & Co., a private equity real estate fund. Mr. Scott began his career with the Interpacific Group where he held senior hotel management positions and in 1994 joined the Walt Disney Company as manager of business development and strategic planning for both the Disney Development Company and Walt Disney Attractions groups.

 

"We look forward to gaining the benefits of their years of experience and are very fortunate to have them as members of our board of directors," continued Kinzel.

[Maverickrocks]

While at Kings Island today, I came across this sign, which I'm guessing is pretty recent.

 

 

There's a rumor that a major theme park chain is considering providing free beverages, much like Holiday World. Could this possibly be a hint at things to come for Cedar Fair parks? It could be just another in-park ad for overpriced sodas, but "refill station" and "fast" imply otherwise, and advertising soda refills (other than in the case of souvenir cups) seems a bit unusual...

[tatertot3710]

Maybe its the new vending machines like the ones at SFMM?

[chadster]

i found the picture of the refill stations interesting, so I did a little internet searching and found that alton towers and thorpe park use a "refill station" basically, for say 5.00 you buy a coca cola refillable bottle and can refill it at any of a number of places throughout the park. Maybe this is a similar concept. At KD you pay 5.00 for drinks all day in a souviner cup, don't remember if that holds true at KI or not, but sure someone else here does.

 

http://www.towerstimes.co.uk/parkinfo/food.htm

[KDCOASTERFAN]

^^^I saw the same thing at one of the food places at KD over the weekend as well.

[jedimaster1227]

http://www.cleveland.com/business/index.ssf/2010/06/cedar_fair_chief_operating_off.html

 

The second in command at Cedar Fair Entertainment Co. resigned last week, marking the latest in a series of twists for the Sandusky amusement park operator this year. Cedar Fair filed a notification with the Securities and Exchange Commission on Thursday that said Chief Operating Officer Jacob "Jack" Falfas resigned on June 12.

 

"I think it came as a complete shock to everybody in the industry," said Dennis Speigel, a former amusement park executive turned consultant. He noted that 58-year-old Falfas had worked for Cedar Fair for three decades. "The full story is yet to be told. I haven't talked to him personally, but it seems to have come at an odd time." His departure is especially surprising since Falfas was seen as the heir apparent and right hand man to Cedar Fair Chief Executive and Chairman Dick Kinzel, said Speigel who is now is president of International Theme Park Services in Cincinnati. Kinzel, 68, is expected to retire when his employment contract ends in 2012.

 

In the 1970's, Kinzel, who was operations manager at Cedar Point in Sandusky at the time, gave Falfas his first full-time job as an admissions manager. After that, Falfas was given several higher ranking management roles at Cedar Point. When Cedar Fair bought Knott's Berry Farm near Los Angeles, Kinzel named Falfas the vice president and general manager. Falfas returned to Sandusky in 2005 when the role of chief operating officer was created for him.

 

Cedar Fair spokeswoman Stacy Frole declined to provide any details on the reason behind Falfas' departure, and Falfas could not be reached for comment. His resignation came just three days after Cedar Fair appointed two new members to its board of directors at the request of Q Investments, the company's largest shareholder. Q Investments is a Texas-based hedge fund manager that has acquired 18 percent of Cedar Fair since December. The firm said Cedar Fair shareholders need new representation in light of board decisions that led to the company's failed proposed sale to private-equity firm Apollo Global Management. The deal was called off April 6 because of a lack of shareholder support, which cost the company a $6.5 million penalty. Q Investments had opposed the deal and rallied other shareholders against it.

 

In May, Cedar Fair outlined plans to refinance its debt on its own. The company said it plans to issue $500 million in so-called "junk" bonds, which would be due in 2020. The company also plans to take out a $1.05 billion term loan and a $300 million line of credit as part of a deal being arranged by JP Morgan Chase. Last month, analysts said the plan made the outlook for cedar fair "more stable."

[tkkyj]

We hvae all paroblby rceeveid an eiaml aobut bneig albe to raed samlerbcd wdros, so lnog as the frist and lsat lteter are in palce...

 

Did anyone else see "Toilette & Douche"? Yeah, I'm mature...

 

http://www.cedarfair.com/ir/press_releases/index.cfm?current_root=15&mode=story&story_id=241

 

The limited partners also confirmed the appointment of Deloitte & Touche LLP as the Company’s independent registered public accounting firm.

[jedimaster1227]

http://www.marketwatch.com/story/cedar-fair-entertainment-company-launches-mobile-visitor-initiatives-with-hipcricket-2010-07-01?reflink=MW_news_stmp

 

Cedar Fair Entertainment Company, a leader in regional amusement parks, water parks and active entertainment, has selected Hipcricket to further engage park visitors with discounts, promotions, event notifications, and more delivered via mobile devices. The solutions from Hipcricket, the one-stop mobile marketing and mobile advertising company that empowers brands, agencies and media properties to engage customers and drive sales and loyalty, are in place in eight of the Company's amusement parks across the country.

 

Cedar Fair has begun integrating mobile into its overall marketing initiatives including traditional and non-traditional channels. The parks, which include Kings Island, Kings Dominion and Dorney Park, among others, are promoting their mobile clubs via Facebook, radio, email newsletters, and in-park signage. These channels leverage the power of Hipcricket's hyperlocal 6.0 platform and prompt current and potential park visitors to opt-in and receive special offers from Cedar Fair and their local amusement parks. Cedar Point -- the flagship park in the Cedar Fair system -- will be rolling out its mobile strategy in July.

 

"We're always looking for new ways to further connect with visitors while they're in our parks and also in between visits," said Lee Alexakos, vice president & corporate division head of marketing & advertising at Cedar Fair Entertainment Company. "This is the first time that we've launched a cross-park mobile marketing initiative and we're pleased by how easy it is to deliver timely and relevant messages to our guests which offer special promotions, encourage repeat visits and ultimately enhance their in-park experience."

 

"Mobile marketing is proven to be the best channel to not just reach customers, but to fully engage them," said Eric Harber, president and COO at Hipcricket. "By using Hipcricket's hyperlocal mobile marketing solutions, Cedar Fair is able to connect one-on-one with its park visitors and offer them timely and relevant information, no matter where they are."

 

Hipcricket has conducted more than 65,000 mobile marketing campaigns for some of the world's biggest brands--including Macy's, Nestle, KFC, HBO and Clear Channel--as well as hundreds of radio and television stations nationwide. Hipcricket equips clients with superior technology and services that enable them to create mobile advertising and promotional campaigns in minutes.

[ajc47]

We hvae all paroblby rceeveid an eiaml aobut bneig albe to raed samlerbcd wdros, so lnog as the frist and lsat lteter are in palce...

 

Did anyone else see "Toilette & Douche"? Yeah, I'm mature...

 

http://www.cedarfair.com/ir/press_releases/index.cfm?current_root=15&mode=story&story_id=241

 

The limited partners also confirmed the appointment of Deloitte & Touche LLP as the Company’s independent registered public accounting firm.

 

lmao

Toilette and Douche, appropriate for CF and its owner

[jedimaster1227]

http://www.sanduskyregister.com/2010/nov/03/cedarfair110210tjxml

 

Cedar Fair says it has launched the hunt for a new CEO to replace Dick Kinzel, 70, who has run the company since 1986.

 

Tuesday, Kinzel said his employment agreement ends on Jan. 2, 2012, and Cedar Fair's board is working to find a successor. "As is the case with any public company, this is a confidential process that is expected to include both internal and external candidates," Kinzel said. "Out of fairness to all involved, we will have no further comment until we are ready to announce a new CEO."

 

Cedar Fair spokeswoman Stacy Frole said she can't offer a timetable on when a new CEO will be announced.

 

Also Tuesday, Cedar Fair announced its 2010 third-quarter and nine-month results, with attendance and revenues both up through October. Promotions were also awarded to four company executives. Net revenues for the first nine months of 2010 are up $37.4 million from the same months in 2009. Last year's revenue in that period was $810.5 million; this year, it's $847.9 million.

 

Through Sept. 25, Cedar Fair's amusement parks had 19.8 million visitors, up 6 percent -- about 1 million people -- from the same period last year, Kinzel said. Results through October appear even better. Based on preliminary results, attendance is up 8 percent -- about 1.6 million people -- through the first 10 months, with revenues going from $914 million to $974 million.

 

Cedar Fair officials also said they plan to resume quarterly cash distributions in 2011, beginning with 8 cents per limited partner unit in March 2011. A total of about 35 cents will likely be paid next year, they said.

 

The company had previously announced it would pay 25 cents per unit in December.

 

Cedar Fair also announced three new executive vice presidents Tuesday.

 

Those include Peter Crage, formerly corporate vice president and chief financial officer; H. Philip Bender, formerly regional vice president since June 2006 and, prior to that, vice president and general manager of Worlds of Fun in Kansas City, Mo.; and Richard A. Zimmerman, who had been regional vice president since June 2007.

 

Those employees will handle more of Kinzel's day-to-day duties, which Kinzel said will provide him more time to focus on growing the business and developing the company's executives.

 

David R. Hoffman, formerly vice president of corporate tax, is now vice president of corporate finance and tax.

 

Cedar Fair's biggest investor, Dallas area investment banker Geoffrey Raynor, has filed a request with the U.S. Securities and Exchange Commission, asking for a special meeting of investors to consider two proposals: Bring in a new chairman of the board and have Kinzel relinquish that post to concentrate on his CEO duties; and, secondly, make an increase in cash distributions a bigger priority than paying off the company's debt.

 

Raynor's company, Q Funding III, is still awaiting SEC approval of a proxy statement that would allow Raynor to begin his campaign for the changes, a spokesman said Tuesday.

[ragerunner]

Dick Kinzel reminds me a lot of Bobby Knight. During a period of time their philosophy and approach put them at the top of their industry, but they refused to adjusted as the industry changed. They finally were unable to produce a product that keep them and their 'team' at the top of the industry.

[themeparkman25]

post removed by author

Edited January 20, 2011 by themeparkman25

[coasternut]

Dick Kinzel reminds me a lot of Bobby Knight. During a period of time their philosophy and approach put them at the top of their industry, but they refused to adjusted as the industry changed. They finally were unable to produce a product that keep them and their 'team' at the top of the industry.

 

You're exactly correct Finally "Big Dick" is leaving. He was a leader / trendsetter in his day, but his day has long past! I wish his retirement was effective 2011. He's run Cedar Point and the entire Cedar Fair parks into the ground the past several years. Rest in peace -- Big Dick

[downunder]

I'm hoping with Dick disappearing, Cedar Fair might contemplate getting q-bots, a completely selfish wish but it works for me.

 

I know some people love Dick but I think he started to fall behind in the early noughties.

[ParkBark]

Prestigious public and investor relations firm Dix & Eaton has received a nomination recognizing Cedar Fair Entertainment. The prize, the ROBBIE Award, is presented as a hat-tip to notable occurrences in IR.

 

Investors are recognized for significant contributions toward advancing the field of corporate governance and investor relations. Following the failed sale of Cedar Fair to Apollo Management, capital investors have worked tirelessly to address deficiencies identified within the leadership team.

 

EDIT: Link removed. You must have at least 50 posts to post a link on TPR.---Joey

Edited November 16, 2010 by Jew

[ginzo]

They finally were unable to produce a product that keep them and their 'team' at the top of the industry.

 

I don't expect a chain of parks with limited resources and a short operating season to be at the top of the industry. Even though I'm not a big fan of Cedar Point or the way most CF parks are run these days, Dick outperformed Six Flags in financial metrics. They were paying dividends while Six Flags was teetering on the verge of bankruptcy. Dick's big mistake was trying to sell CF to Apollo at bargain basement pricing. And, unfortunately for Dick, the tolerance for mistakes from the C-suite is very low these days.

[larrygator]

I'm hoping with Dick disappearing, Cedar Fair might contemplate getting q-bots, a completely selfish wish but it works for me.

 

I know some people love Dick but I think he started to fall behind in the early noughties.

 

Does anyone have any quotes from Kinzel that he was personally responsible for no fast pass system being implemented. Cedar Point did have their awkward Freeway system years ago.

 

While I love the system when I'm using it, when it is an upcharge it does cause hard feelings to many who will not splurge for it.

 

My biggest problem with Kinzel was him trying to sell out to Apollo Group to make a quick buck at $11.50 per share/unit. Since that was halted and larger shareholders have stepped in the company is doing much better with the stock 20-30 percent higher and the dividend returning.

[ParkBark]

Following is the Nomination concerning Cedar Fair at the Dix & Eaton site (as mentioned in the above post for which the link was removed):

 

BEST INVESTOR REVOLT The Unitholders at Cedar Fair Entertainment beat back an ill advised, abusive to investor, sell out attempt. Management messages were effectively countered, often blockaded, and the capital investors reasoning prevailed.

 

Referred to in the financial press as "the shareholder sidewalk revolt which has changed merger and acquisition strategy" these Investor Relations with management have had far reaching consequences.

 

Investor Relations with management of Cedar Fair continue at a quick pace; now a special meeting of unitholders has been called to address the deafness with which senior management interacts with the capital community.

 

With two new, independent board members, unitholders have been unable to satisfactory address systemic management and corporate governance issues. Now bolder, more aggressive, action must be taken.

 

Managements now realize Investor Relations is a conversation conducted on a two way street. It is no longer "talking at investors" but rather "talking with investors."

 

This accomplishment is deserving of a ROBBIE Award.

 

If such progress is deemed undeserving of a ROBBIE, perhaps you should rethink handing them out. It would hardly seem worthy of your effort.

[coasternut]

I'm hoping with Dick disappearing, Cedar Fair might contemplate getting q-bots, a completely selfish wish but it works for me.

 

I know some people love Dick but I think he started to fall behind in the early noughties.

 

Does anyone have any quotes from Kinzel that he was personally responsible for no fast pass system being implemented. Cedar Point did have their awkward Freeway system years ago.

 

While I love the system when I'm using it, when it is an upcharge it does cause hard feelings to many who will not splurge for it.

 

My biggest problem with Kinzel was him trying to sell out to Apollo Group to make a quick buck at $11.50 per share/unit. Since that was halted and larger shareholders have stepped in the company is doing much better with the stock 20-30 percent higher and the dividend returning.

 

I loved the "freeway system" since it cost nothing and was a great advantage for 2 rides per day. Free is good

[Jew]

I'm hoping with Dick disappearing, Cedar Fair might contemplate getting q-bots, a completely selfish wish but it works for me.

 

I know some people love Dick but I think he started to fall behind in the early noughties.

 

Does anyone have any quotes from Kinzel that he was personally responsible for no fast pass system being implemented. Cedar Point did have their awkward Freeway system years ago.

 

While I love the system when I'm using it, when it is an upcharge it does cause hard feelings to many who will not splurge for it.

 

My biggest problem with Kinzel was him trying to sell out to Apollo Group to make a quick buck at $11.50 per share/unit. Since that was halted and larger shareholders have stepped in the company is doing much better with the stock 20-30 percent higher and the dividend returning.

 

While I don't think Kinzel ever said directly that he was opposed to an upcharge line-jumping system...Who else can you blame for leaving all that revenue on the table? Especially with the company struggling financially, it should have been a no-brainer to join the rest of the industry in that regard.

 

I actually posted on Westcoaster when the rumors of a buyout originally surfaced a few years before the Apollo thing actually came about that one of Cedar Fair's biggest failures was that they were so far behind the industry in up-charge items like valet/premium parking (finally got that within the last two years), more food options like an all you can eat option, more ticketing options like family packs/annual pass deals/etc (finally catching up in that regard), and a line jumping system.

 

To be so far behind the industry with all things upcharge, I think it's pretty obvious that direction comes from the top.

[larrygator]

While I don't think Kinzel ever said directly that he was opposed to an upcharge line-jumping system...Who else can you blame for leaving all that revenue on the table? Especially with the company struggling financially, it should have been a no-brainer to join the rest of the industry in that regard.

 

I actually posted on Westcoaster when the rumors of a buyout originally surfaced a few years before the Apollo thing actually came about that one of Cedar Fair's biggest failures was that they were so far behind the industry in up-charge items like valet/premium parking (finally got that within the last two years), more food options like an all you can eat option, more ticketing options like family packs/annual pass deals/etc (finally catching up in that regard), and a line jumping system.

 

To be so far behind the industry with all things upcharge, I think it's pretty obvious that direction comes from the top.

 

Good points joey, but then we also have to give CF credit for developing season park pricing across parks that is a better revenue model. Fairly priced but not exorbitant.

 

Also, one point about the QBot, I'm still not certain what percentage of profit goes to the parks, as past rumors stated that LoQ takes a pretty big cut, so it might not be a great revenue stream for the parks.

[Jew]

^It's still easy money because Q-bot is paying rent! Or they could have developed their own system, which has little initial/overhead costs compared to what they would take in (much like Universal did).

Edited November 19, 2010 by Jew

[chadster]

Or like SeaWorld - San Antonio, wristbands, cheap, very cheap to produce. Could take that a step further and utilize a system similar to Morey's with the barcoded wristbands thus eliminating any potential for lost/damaged products and the need to have people stationed at the point of purchase to accept returns. Utilizing existing infrastructure throughout the park, or, secure wireless, it would be a cash cow. The obvious downside to the bar codes would be in reservations which could be resolved by scanning your wristband and receiving a ride time at the ride or by having kiosks (basically a reader mounted to a poll or building like at walmart or target) where you can scan and select your ride. Less convenient, sure. Come to think of it, scarp most of the last idea, barcode readers would only be used to verify eligibility. SeaWorld wristbands work better in the cheap category.

 

Ahh, but here we go, they could pull a SFA and sell 5, 10, 15, 20, unlimited skip the lines with the barcoded wristband increasing their potential profit.

[chadster]

Cedar Fair vote planned on removing chairman

BLADE STAFF

 

SANDUSKY — Cedar Fair LP has acceded to the wishes of its largest shareholder and will call for a special shareholders meeting to vote on a proposal to relieve top executive Dick Kinzel of his duties as board chairman while staying on as chief executive.

 

In a regulatory filing Thursday, the amusement park company agreed to call the meeting that Texas-based Q Investments demanded in a Nov. 3 letter to the company. A date, time, and location has not been set but is expected to be added if the Securities and Exchange Commission approves the proxy statement.

 

In the filing with the commission, which will be sent to all shareholders after it is approved, Cedar Fair said it opposes all of Q Investments’ proposals and urges their defeat. The Texas funds have proposed hiring a new board chairman previously unaffiliated with the company, and having the company pay a higher dividend.

 

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