The conference call will be available for replay on Cedar Fair's website beginning around 5pm Eastern today. Some highlights:
* Q1 is typically responsible for around 5% of yearly revenues, and is not a very good predictor of full year results.
* Cedar Point and Valleyfair open this weekend.
* 08 capex is apparently going to be both on time and within budget, overall.
* Chainwide, 50 live shows, 1/3 of them new, to greatly improve the overall guest experience (said by Mr. Kinzel with some apparent satisfaction---perhaps a slap in the face to that chain that numbers its flags...and thinks DVDs a grand show presentation). At the former Paramount Parks, four ice stages were re-installed and seven entertainment stages re-opened which former management had seen fit to close. Mr. Kinzel visited Kings Island a couple of weeks ago and visited "the shows." (That's what he said).
* Capex looks to be in the $80-90 mil range the next couple of years.
* Both the average price and the number of season's passes (Mr. Kinzel's term) are up.
* Hotel bookings are soft, especially at Cedar Point. Group business overall is up.
* 08 Projected revenue still at $990 million to $1.02 billion. EBITDA predicted to be $340 to $350 million.
* Partner's equity has decreased but this is due to non-cash adjustments....besides, debt covenants are tied to cash flow and to adjusted EBITDA, so there should be no concern about debt covenants in this regard.
* Average cost of debt right now is 6.8%.
* Cedar Point is looking at going green, including possible wind projects.
* Food costs have increased significantly and this will have to be passed along. Similar increases in merchandise and games are more difficult to pass along durnig tough times.
* There is more than enough breathing room in the debt convenants. They intend to pay down debt modestly.
* This year's capex should end up around $88-90 million.
* Knott's Berry Farm is doing exceptionally well, though they had to discount a little bit. Out of park revenues decreased somewhat, but not at the hotel.
* Cedar Fair sees California's Great America as an undervalued asset under former management. They have extended operating days and hours.
* No significant increase in admissions prices this year, but that's because they raised prices last August...approximately $1-$1.25 per park.
* Geauga Lake had lost money in the past, and they expect closing the amusement park side to positively affect EBITDA.
* The Paramount Parks acquisition is on target...they originally said it would take three to five years to integrate. "We learned a lot about different markets last year and are trying to get back the season's passholders we lost last year." Integration of the "two companies" will take another two to three years.
* Margins last year were 34.7%.
* Season's pass sales are amortized over the season and are up in the double digit range.
* A large percentage of groups that formerly went to Geauga Lake are now going to Cedar Point.
* They are working on a sponsorship program.
* Mr. Kinzel talked about increasing time spent in park (an old Paramount Parks measure, by the way) by extending park hours.
* Attendance numbers not released for this quarter and won't be as they are "so small ... not good information."
Topic: FUN Conference Call Notes (Read 693 times)