Cedar Fair LP

Walt Disney’s (DIS) Theme Parks business posted strong performance results in the three months ending December 2017 (the company’s fiscal 1Q18).

Comcast’s (CMCSA) Theme Parks business was a star performer in 4Q17, with revenue growth accelerating over the previous quarter.

Disney wants to spread the success of Tron to Walt Disney World Resort as it seeks to boost business at one its key theme park locations.

The market does not yet appreciate the safety of modern rollercoasters or the defensive characteristics of the relatively small and underfollowed amusement park industry.

As of January 15, 2015, Six Flags’ ROIC and WACC stood at 9.2% and 5.9%, respectively. This shows that Six Flags is employing its debt capital effectively.

Six Flags Entertainment Corp. (SIX) is the world’s largest regional theme park company with $1.1 billion in revenue and 18 parks across North America.

Six Flags Entertainment’s (SIX) operating cash flows are largely driven by attendance and per capita spending levels.

Six Flags derived 55% of its revenues from theme park admissions for the last 12 months ended September 30, 2014.

Institutional shareholders hold ~86% of Six Flags Entertainment (SIX). The top 20 hedge funds own ~25% of Six Flags.

Let’s look at why Six Flags Entertainment is profitable. Adjusted EBITDA was $429 million for the LTM, growing at 19.7% over a four-year period since 2009.

Industry debt-to-equity ratio is about 5.5. Six Flags’ debt-to-equity ratio of 4.0 shows the company aggressively finances operations with debt capital.

Six Flags’ fall in liquidity ratios is mainly due to the ~$460 million fall in cash and cash equivalents because of share repurchases and dividend payments.

Cedar Fair (FUN) presented investors an attractive entry point to purchase shares, now yielding nearly 6%. This is a very good business.

Walt Disney (DIS) exited the tax incentive agreements that its Disneyland Resort arm had inked with its host city of Anaheim, California.

In fiscal 3Q17 (June quarter), Disney’s parks and resorts business brought in revenues of $4.9 billion, implying a 12% YoY (year-over-year) rise.

Comcast’s (CMCSA) NBCUniversal Cable Networks and Broadcast Television businesses are facing stiff competition.

On February 25, Cedar Fair Entertainment announced the declaration of a regular quarterly cash dividend of $0.75 per limited partner (or LP) unit.

Cedar Fair’s 200-day moving average share price is $49.73 with a 52-week high and low of $56.09 and $43.81, respectively.

Cedar Fair’s cash flows from operations and credit facilities are expected to be sufficient to meet its working capital needs, debt service, and planned capital expenditures.

Cedar Fair’s revenue increased by 15.6% year-over-year to $160.8 million in the fourth quarter of 2014.

Six Flags’ per capita guest spending increased $2.79, or 7%, to $42.97 in 2014, primarily due to improved admissions pricing and new offerings in the parks.

Six Flags’ (SIX) admissions revenue per capita increased by 9% in 2014, primarily driven by pricing improvements on multi- and single-use ticket offerings.

Six Flags has $1.2 billion in revenue and 18 parks across North America. It operates 16 parks in the United States, one in Mexico City, and one in Montreal.