Thursday, November 30, 2023

Q Investments Sends Letter to Cedar Fair Unitholders Urging Them to Support Changes that Enhance Corporate Governance and Dividend Distributions

Largest Cedar Fair Unitholder Believes Separating Chairman and CEO Roles, Providing Meaningful Distribution are Critical to Reversing Underperformance

FORT WORTH, Texas — Q Investments, which owns approximately 18 percent of Cedar Fair, L.P.’s units, sent a letter to the Company’s unitholders today urging them to support two measures it believes will serve as meaningful steps toward reversing the Company’s prolonged financial and market underperformance.

The letter calls on Cedar Fair’s unitholders to vote FOR two proposals at the Company’s upcoming Special Meeting of Unitholders on January 11, 2011.  The first proposal would separate the roles of Chairman and CEO, and the second would reinstate what it terms a “meaningful” distribution to unitholders.  Q Investments made the following points in support of both proposals:

  • Cedar Fair’s stock price has underperformed both the broader market and, recently, Six Flags during Richard Kinzel‘s seven-year tenure as Chairman and CEO.
  • Mr. Kinzel openly professes to not being “a finance person.”  Q Funding believes installing an independent Chairman with financial expertise would help Cedar Fair avoid repeating its recent mistakes and benefit unitholders over the long term.
  • It also would infuse some much-needed new thinking into a Board whose members on average have served for more than a decade and who have overseen the Company’s underperformance in recent years.
  • In today’s environment, this is simply good corporate governance.
  • As stated in the letter, the Company’s Unit price falls when distributions are reduced.  Q Funding believes the Company can easily afford to pay a $1.00 per Unit distribution to unitholders, leaving it with about $50 million of annual free cash flow to pay down debt in a normalized environment.

[Cedar Fair’s board of directors responded by sending a letter to unitholders urging them to reject the proposals from Q Funding.]

    Full text of letter from Q Funding can be found here. 

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    Judith Rubin
    Judith Rubin
    Judith Rubin ([email protected]) is a leading journalist, content marketing specialist and connector in the international attractions industry. She reports on design and technical design, production and project management, industry trends and company culture. From 2005-2020 she ran communications and publications for the Themed Entertainment Association (TEA). In 2013, she was honored with the TEA Service Award. She was development director of IMERSA and publicist for the Large Format Cinema Association, and has contributed to the publications of PLASA, IAAPA and the International Planetarium Society. Judith joined World’s Fair magazine in 1987, which introduced her to the attractions industry. She joined InPark in 2010. Judith earned a BFA from Pratt Institute. She has lived in Detroit, New York, Oakland, and now Saint Louis, where she is active in the local arts community.

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