If you're like me, not only are you an amusement park and roller coaster enthusiast, and like hearing about the different parks as well as the latest and greatest rides, you also are interested in the financials of the major players in the amusement industry. Good financials tend to be an indicator of the willingness and ability of the parks to continue to improve our park experiences and add new attractions.
Back in October, Financial News Network Online (FNN) reported that Cedar Fair was listed at the top of the list in the Leisure Facilities Industry for their high debt to EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ratio. While I won't stray too far off topic and present a dissertation on exactly what that means in detail, it in and of itself isn't a serious concern, but it can be if they experience a drop in income preventing the organization from repaying their debt.
This week, FNN reported the good news that Cedar Fair is solidly listed at the top of the list for the highest operating margin in the Leisure Facilities Industry. In layman's terms, that means that they are making a healthy net profit margin after paying their overhead enabling them to easily repay their debt. For enthusiasts, that also is an indicator that they are more willing and able to continue to invest large capital investments at their parks and bring us new and exciting rides and attractions in the future.
To me, this adds a lot of validity to recent rumors we've heard about new coasters coming to Cedar Fair parks in the near future. What does it mean to you?
For additional information on this story, please see FNN Online.