Cedar Fair could divvy out $1 per unit

Cedar Fair has cut a new deal with its lenders, allowing it to lower interest costs and increase its cash distributions to its investors.
Tom Jackson
Feb 25, 2011

Cedar Fair has cut a new deal with its lenders, allowing it to lower interest costs and increase its cash distributions to its investors.

The company said it expects to save $18 million a year under the new agreement, and hopes to be able to make cash distributions to investors this year that will total $1 per unit, assuming that the upcoming summer season goes well.

Check out the link for the announcement by clicking HERE.

Comments

lifetimeresident

I called this one, although I thought it would be 80 cents.

Cowboy

And again I say, thank you Q Funding.  This will raise the stock even more..  Just you watch.

lifetimeresident

At 3pm today someone or some company dropped a big load of this stock.  Price went from 19.80 to 19.08 in 5 minutes.  Hope it wasnt Q Funding.

Leland Wykoff

Cedar Fair made a good move today.  This move secures the proposed dividend for 2011 at a minimum of $1.00. It leaves the future dividends at some risk as the cash to fund them must come from the cash sweep provision.  

If performance continues to improve, and it should given proper management, growth may make it possible to pay historical level dividend.  

Cedar Fair has lots of room to grow on park spending.  Six Flags recently reported on park revenues of $40.18 per visitor a year over year increse.  Cedar Fair reported on park revenues declining .35 cents per visitor and in the range of $35.00 per visitor. 

To catch up to the Six Flags benchmark Cedar Fair must increase on park revenues approximately $5.00 per visitor.  This would increase CF revenues approximately $114 million, and drop in the neighborhood of $67 million to the bottom line.  The numbers are better if CF continues increasing visitors to the parks.

The large sale of stock LifeTimeResident reports could indicate folks are taking profits.  It will be interesting to see who the large seller is.   

 

 

 

lifetimeresident

To Leland

That 1.00 is not guaranted.  Lets just call it something to shut up Texas.  When this stock hits 22, I'm gone.  Cant go through this again in 18 months.  To OLD.  It could of been worse.  I guess we all owe Geoffrey a big THANK YOU.

6079 Smith W
@ lifetimeresident:   As you're well aware, you have absolutely no control over the direction of the price of the stock. You do however on the time that you exit the trade. Waiting could be a fool's errand.   I'm not heavily into technicals, but I do give them some credence and the trend line looks down to me.    The oil situation will more-than-likely have a negative impact on the price of gas and other consumer staples and therefore reducing the amount of consumer discretionary spending, helping to send (FUN) down even further.  

IMO, a smaller loaf taken now is better than the potential for crumbs later.

Interesting article on investor behavior in the weekend WSJ:

http://online.wsj.com/article/SB10001424052748704692904576166290382532296.html?mod=WSJ_PersonalFinance_PF5

 

lifetimeresident

@ 6079 smith

You are RIGHT!  This stock is not good for the Heart!  TOO much worrying on whats gonna happen next.