Cedar Fair Keeps Growing

Article Excerpt

CEDAR FAIR, L.P. $27.73 (New York symbol FUN; SI Rating: Average) now operates twelve amusement parks in the U.S. This includes the five Paramount amusement parks purchased last year from CBS Corp. for $1.24 billion. The new parks do not overlap with Cedar Fair’s seven other parks, and they also give it more parks that stay open year-round, as well as Canada’s Wonderland near Toronto, its first park outside the U.S. The new parks pushed Cedar Fair’s revenues in the three months ended September 24, 2006 up 71%, to $542.1 million from $317 million. Earnings per unit fell 22.2%, to $2.42 from $3.11, due to a one-time gain a year-earlier. Cedar Fair is a limited partnership, so it passes all of its pre-tax profits on to unitholders. It currently yields 6.8%. Limited partnerships like Cedar Fair are not eligible for RRSPs. So you’ll be subject to a 30% U.S. withholding tax, unless you file a W-8BEN form through your broker. That will cut the…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.