Cedar Fair announced that it will not pay cash distributions to its limited partner units next year, as it seeks to conserve cash to pay down its debt. (Cedar Fair paid $1.2 billion to buy Paramount Parks in 2006.)
Cash distributions to limited partner units are roughly the equivalent of a corporation paying dividends to its stockholders. Cedar Fair is a limited partnership (hence, "Cedar Fair, L.P."), and the holders of its limited partnership units are typically paid a proportionate share of the business's income each quarter.
That amount worked out to $1.10 per unit for the first nine months of 2009, compared with $1.12 per unit for the same period in 2008.
According to the company's press release (here is the version from the SEC, complete with spreadsheet for you number-crunchers), attendance at the company's parks was down from 20 million in the first nine months of 2008 to 18.8 million during the same period this year. (That's not counting the Star Trek Experience in Las Vegas, which the company closed late last year.) In-park guest spending was down from $40.28 to $39.73.
"The decrease in attendance was the result of a sharp decline in group sales business, which continues to be negatively affected by the poor economy and spending cuts at many businesses, schools and organizations," Cedar Fair CEO Dick Kinzel said in the statement. "Our attendance figures were also negatively impacted by a decrease in season pass visits resulting from a decline in total pass sales, and by poor weather, particularly cooler than normal temperatures throughout much of the season at our northern and southern region parks."
* Update: And here are the results for Six Flags:
Six Flags also blamed the drop in attendance to lower group sales and fewer free tickets, but did say that sales of single-day and individual season pass tickets were up from 2008. That's a good sign for the company, at least.
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Why not discount your food and beverage prices thus allowing guests to spend to eat while in the park. When they can leave the park and get fast food for much less then return to the park or go on home they usualy will. Also, merchandise prices are another point where the guests just aren't willing to fork out a bundle for items they don't need but might would like to have.
Maybe even try giving season pass holder discounts straight across the board for all Food and Merchandise purchases that would make a difference. Years ago Carowinds gave coupons to use in the park when you bought a season pass and now you get you admission and parking (LOVE the parking being included).
Oh and another thing, I am so glad I didn't renew my season pass yet. I will wait and see what other cuts they plan to make before I sink that kind of money into it. Carowinds customer service standards have improved greatly over the past 2 years, but does this mean now it will go down hill???
Note to Dick -- if you want to improve season pass sales, give the holders some benefits to engender loyalty. For a hint, take a look at the Busch Entertainment platinum pass.
It's good for 2 years, includes all the parks, parking, food and merchandise discounts, and some special events. When I had mine, I felt like I had something special, instead of just a cheap form of admission. I know I helped their bottom line, 'cause I always ate lunch in the parks and purchased more drinks owing to the passholder discount.
Also, standardize the passes and benefits across the enterprise. Different rules between KI and CP (two parks in the same state!) are confusing, unnecessary, and discouraging.
Consider how Holiday World can throw in free parking and free soft drinks all day long and still make money...?
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I guess what I am saying boils down to, give your park some character instead of destroying it for a quick buck. I know that over time I have spent less and less time in the park each year. Why, I lose interest in being there, and there is nothing to do, but pay money for extra attractions or leave. I choose to leave and in doing so, I spend no money in the park. I'm not excited to tell my friends I went to the park, and I do not try and talk them into going. CHARACTER!!!