Two very good informative articles were recently published about Cedar Fair in the Sandusky Register this past Wednesday and Thursday -- some good news and some questionable news of business decisions.
As a stockholder in Cedar Fair (FUN) it was great news to hear of the greater than 15 percent increase in attendance over 2006 and the 5 percent increase in spending by visitors. And it was great to hear that they have decided to keep the corporate headquarters in our area.
However, it was mentioned that after the purchase of Paramount Parks in 2006 that 20 new corporate positions were created -- in only one year! That should certainly take care of some of the surplus funds as most corporate positions are in the 6 and 7 digit income level.
So if they hadn't purchased Paramount Parks, think of how much could have been saved on expenses.
Maybe next year when another park is added they can again increase the corporate staff by an additional 10 corporate positions or so.
No question they must remain current on new technology and support the operation with good management resources, but doesn't 20 corporate position additions in one year seem a bit extreme?
And especially when the value of the stock has dropped over 31 percent in just the last 10 months.