Theme park stocks SeaWorld Entertainment Inc (NYSE: SEAS), Six Flags Entertainment Corp (NYSE: SIX), Cedar Fair, L.P. (NYSE: FUN) and Independent Film Development Corporation (OTCMKTS: IFLM) have been producing a steady floe of news this week along with some pretty good returns for investors (for the most part) since the start of the year or longer. Just consider the following news:
SeaWorld Entertainment Inc Reports Earnings and Battles Bad Publicity. Last Wednesday, SeaWorld Entertainment, which has a diversified portfolio of 11 destination and regional theme parks that are grouped in key markets across the United States, reported record revenue of $538.4 million for an increase of 3% for an increase of $16.1 million and record net income of $120.2 million for an increase of $27.9 million or 30%. The CEO noted that the third quarter is an extremely important period for SeaWorld Entertainment as the summer travel season accounts for a significant portion of full year revenue and earnings. Results also showed that SeaWorld Entertainment had made headway in efforts to stem falling attendance as admissions shrank 3.6% during the quarter verses a 9.5% drop for the previous three months. The company blamed bad weather in July and fewer discounts for the attendance drop. However, SeaWorld Entertainment has also been the subject of a critical documentary about the treatment of its killer whales with former SeaWorld Employee John Hargrove recently discussing the documentary and the company's legal battle with the OSHA. For retail investors, SeaWorld Entertainment Inc is down about 8.7% since its IPO earlier this year and the controversial documentary along with the company's response to it have not helped investors.
Six Flags Entertainment Approves a Big Stock Repurchase Plan. Last Wednesday, Six Flags Entertainment Corp, the world's largest regional theme park company with 18 parks across the United States, Mexico and Canada, approved a stock repurchase plan for the repurchase of $500 million of its stock. The press release noted that since February 2011, Six Flags Entertainment Corp has repurchased nearly $800 million worth of stock and has approximately $14 million available under its current plan. Otherwise, Six Flags Entertainment Corp has a market cap of $3.53 billion plus shares are up 21.3% since the start of the year and up 298% since May 2010.
Cedar Fair, L.P. is Upgrading Some of Its Theme Parks. Cedar Fair, L.P., one of the largest regional amusement-resort operators in the world that owns and operates 11 amusement parks, three outdoor water parks, one indoor water park and five hotels, has announced that its Knott's Berry Farm has two major projects for 2014, Camp Snoopy's area beautification and the revitalized Calico Mine Ride, which are slated to open early summer of 2014. Camp Snoopy celebrated its 30th anniversary this year while the Calico Mine Ride, which was designed by industry pioneer Bud Hurlbut, opened in Ghost Town in November 1960 and was quickly recognized as one of the world's most immersive "dark rides." In addition, Cedar Fair, L.P.'s CEO was on CNBC to say that King's Island will open the longest inverted coaster in the world ("Think of like a ski lift as a roller coaster, right, called banshee…") next spring. He also commented that while "staycations" came about due to the economy, they have allowed a whole new generation to discover how much fun a road trip can be plus consumers are still asking for the chance to have fun for just a few days. Cedar Fair, L.P. is up 40.4% since the start of the year and its up 291.1% over the past five years.
Independent Film Development Corporation Outlines Its Unique Theme Park Plans. Los Angeles based Independent Film Development Corporation, which intends to develop genre themed studio style resorts, is an up and coming small cap theme park stock that has recently announced an exclusive broker agreement with Beverly Hills based Camden Realty Group (CRG) for assistance in finding and acquiring suitable properties for development nationwide with the first project being the "Hilltop Manor Theme Resort and Production Studios."
This genre theme park and resort is planned for New York's Catskill Mountains and will be dedicated to the horror and science fiction genres of film and television. Current plans call for a luxurious 320 room 4 or 5 star hotel plus an old fashioned hedge maze; a lake with a "monster" living in it along with an island with castle ruins; and a number of rides having an "overall theme of the mysterious, the unexplained and the supernatural" with the overall park being a "place where people will be able to collectively celebrate things that go bump in the night." Independent Film Development Corporation's shares are up 425% since last January.
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