Cedar Fair 3rd Quarter Earnings and Conversion Coasters?

[TTD03]

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This past week Cedar Fair announced their 3rd quarter earnings, with a full press release available on the company's website.

The results were good, as Cedar Fair was able to report record revenues for the quarter of $595 million. The company had an extremely strong October, which has made revenues through November 2nd up 2% over last year, based on a 3% increase in per capita spending, offset by a 1% decrease in attendance.

The company also declared a $0.75 distribution per unit (up 7%), payable in December.

In the discussion call quarter, more juicy info was talked about! Here are the highlights...

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?????? There was "record demand" for Halloween events this year; though exactly what that means is not clear. Regardless, they're as popular as ever and won't be going away any time soon.

?????? California's Great America was closed a total of 7 season days this season due to the 49ers stadium, and each of those days the 49ers paid to "buy out" the park. Cedar Fair still operated their new banquet center those days, though, to make additional revenue. Smart.

?????? Knott's Berry Farm and Kings Island are expected to both produce record levels of individual profit this year. Cedar Point is expected to have its 2nd best year ever, behind last year when GateKeeper opened.

?????? The changes made at Knott's, mainly investing in atmosphere, refurbishments and improving the guest experience has been a home run success. Cedar Fair feels there is room to replicate this type of investment patterns at other parks to achieve the same results. I can't wait to see this!

?????? Next year the company will spend $170 million in capital expenditures, much higher than normal due to the Hotel Breakers renovation project. The hotel renovation has been the largest capital project in Cedar Fair's history. In the future, they expect to spend about $120 million a year on capital, which is up a bit from their older "9% of revenues" guidance.

?????? Fury 325 will be the anchor for the re-launch of the Carowinds brand into the Charlotte market. The company is also spending a large amount of capital on the park, as announced previously, in various smaller projects.

?????? When speaking of Rougarou, CEO Matt Ouimet stated that the ride represents a "new strategy" of taking a "less popular roller coaster and transforming it into an exciting experience through the introduction of new floorless trains." It costs a "fraction" of a new coaster, and is an efficient way to spend capital in order to get a new attraction.

?????? If Rougarou is a success, and they expect it will be, they've already identified two other coasters where they can "make similar investments." One would think this would be Vortex at Carowinds and Vortex at California's Great America, two other (but smaller) B&M Stand-Up rides. Or it could be another coaster... but that seems less likely. I would expect unique names and themes if the transformations take place.

Credit to newsplusnotes.com

I'm guessing there opening up to the idea for transformation old rides to new ones now maybe they will Introduce a rmc next for there woodies

If you think about it Cedar Point built Raptor 4 years after B&M's first coaster. RMC finished NTG in 2011/2012. So, if they wait to see how the company turns out, like with B&M, an RMC could be very likely for 2016.

^I'f I'm honest, that's a really flimsy theory on whether they would get an RMC in 2016.

Ya, well Mean Streak is a flimsy ride. lol I really want an RMC

These tranformations don't have to be just about stand ups to floorless or RMCs. B&M can also provide new trains for the Morgan hypers, if they wanted they could probably do it with the arrows too

^Keep the arrows the same

[TTD03]

^ yea, arrows need to be left alone, since they are not made anymore

man, you guys have so much hate for Mean Streak... Anyhoo, I personally doubt that it will get Iron Horsed ever. Especially, since they JUST RETRACKED IT. And especially especially, since Texas Giant played Plinko with that overweight mom so publicly.

I don't like where this guy is going with things at all. Linzel may have jumped the gun buying the Paramount Parks, but at least was a thrill leader. Matt is from Disney, the whole motto is to wring the coins with the least amount of effort. Especially if this coaster conversion is profitable. Which it will be, though I don't think the GP is as stupid as he hopes. And I really hope they aren't. I feel like this guy doesn't care about the park wars, legacies, records, or any of that. As long as it makes the most money the cheapest, and shareholders love that

I think an RMC is possible. I wont say likely or unlikely but it certainly could happen given their history of waiting instead of getting prototypes. Like someone stated above, they got Raptor 4 years after the first B&M was built. Also, they started building B&M hypers recently, when Six Flags has been installing them in the 90s and the early 00s. Also, their wingrider Gate Keeper was also a tad bit late, but not as much as with the hypers. Maybe they will bring in RMC in the next few years and convert some of their rides.

I've never been on mean streak so I cant comment or whether it should be RMCed or not, but I personally dont see a problem with re branding unpopular rides. theres really no lose to it. GP gets a "new attraction", park saves money, less resources are used so better environmentally. And I dont see why he would care about the coaster wars thing, thats the past, while it brought out some great stuff for us, there was also a lot of money and resources wasted, some parks that were involved dont even exist anymore.

LuckyK wrote:

And especially especially, since Texas Giant played Plinko with that overweight mom so publicly.

I'm dying right now

Whenever Six Flags stops building RMC's, Cedar Fair will start. They have exclusivity with them right now. That's the same reason Cedar Fair has built 7 B&M's in the last 6 years and Six Flags has only built 1. Mean Streak Iron Horse for 2016 probably isn't likely, but down the road they probably will.

CKidd wrote:

I've never been on mean streak

Good. I recommend that you keep it that way.

[Mr. Freeze]

Went to CP last year and instead of going on Mean Streak with the rest of my family, I went to go ride Millennium Force and then went to Top Thrill Dragster with a fron of the line pass thanks to a broken down Millennium Force.

[TTD03]

^ Cool story, tell it at parties.