CEDAR FAIR L.P. $15 - New York symbol FUN

CEDAR FAIR L.P. $15 (New York symbol FUN; Income Portfolio, Consumer sector; Units outstanding: 55.3 million; Market cap: $829.5 million; Price-to-sales ratio: 0.9; Dividend yield: 2.1%; TSINetwork Rating: Average; www.cedarfair.com) owns and operates 11 amusement parks, six outdoor water parks, one indoor water park and five hotels. Cedar Fair recently refinanced some of the loans it used to fund its $1.24-billion purchase of five theme parks in 2006. Its long-term debt of $1.6 billion is still a high 1.9 times its market cap, but the partnership now has up to six years to repay it. Thanks to the new financing, Cedar Fair will pay a $0.25-a-unit special distribution in December 2010. It will also resume regular quarterly payments of $0.08 a unit. The annual rate of $0.32 yields 2.1%. Meanwhile, Cedar Fair’s earnings fell 29.6% in the three months ended September 26, 2010, to $75.7 million, or $1.36 a unit. A year earlier, it earned $107.6 million, or $1.92 a unit. The drop was mainly due to a $35.3-million charge on the early retirement of debt. Revenue rose 4.8% in the latest quarter, to $545.0 million from $519.9 million. Park attendance rose 5%, but spending per guest was unchanged. The partnership’s hotel revenue rose 10%. Cedar Fair is a hold.

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