 So today we're going to talk about Cedar Fair's future CAPX long-term strategy. Cedar Fair released on their website a document slideshow right here presented in front of you. This is just one of the slides, specifically slide number 16. If you are very interested in Cedar Fair's future, they kind of do this every three months. They'll release a slide about their business strategies. And this one was actually fairly new, very interesting stuff. So definitely go check that out on Cedar Fair's website under investors and then events and presentations. And you'll find it there. Definitely check it out. Very interesting stuff. So this one slide I wanted to talk about it's packed with a lot of juicy information if you read it very carefully. So I'll read the blue line at first you may not get it and I'll explain it in detail. So capital investment in new attractions and infrastructure needs migrating toward 9% of revenues over the long term before investment in adjacent development. So what's going on with that sentence? So a lot of people are like, wait, do they mean they're only going to invest 9% of revenues moving forward? What is 9% of revenue? 9% of revenue is something extremely small. If you were to do it at this rate at this current second, that's like $132 million American. So $132 million. And then you look at their how they're going to split that up in terms of investments. 50% on new rides, events and attractions who take 50% of that. And you're only left with like 60 something million dollars American for new rides, events and attractions. So you would think, wow, that's that's scary. That's like the that's less than what six flags is spending on rides and attractions. No, so that's not what that sentence means. So capital investments in new attractions and infrastructure needs migrating towards 9% of revenues over the long term. So their goal is over time to move towards a 9% of revenue strategy, the long term strategy. So there's a couple of things that they mean that with the word migrating and what they have planned for long term strategy. So their plan is parks that are building up and the parks that are being upgraded because that seems to be the Cedar Fair model. Once you get a park up to a certain point, there's not much else you can do. The spending that they'll need to do to improve that park will greatly decrease. Not spray farm is a very good example of this. So not spray farm is in an excellent state that currently sorry, the slide just flipped on me there. But not spray farm is in a great state and investing in that park is actually going to require less and less as they advance. We know that not spray farm is most likely getting a roller coaster in 2021, especially if you look at the slides in this presentation, my team and I went through it. And there's a specific category where they're currently after the California Southern California market. And not spray farm is definitely one of those parks that are doing amazing. They had 149,000 increase in attendance in the early part of 2020 already before what happened with COVID happened. So very interesting numbers. That's a huge increase in attendance. So what they mean by this is they're obviously going to maintain their position as the leader in the world for world class thrill rides and attractions. They want to broaden their park offerings, improve guest service and eliminate transactional pain points. In the presentation, they actually had a conference call with Goldman Sachs as well. And they are looking to alleviate positions that can be automated with technology. So something like the toll booths as you enter the parking lot would be a classic example or scanners at front gate instead of a worker scanning you in. Obviously security is still going to be needed. Obviously ride ops are still going to be needed and ride checks are still going to be needed. But stuff like that or mobile ordering your food so you don't really need to have that person or four people standing taking orders at a food booth. Build off successes such as premium product offerings, limited time events of scale and resort accommodations, expand cadence of and reduce reliance on large scale investments to drive growth. Something new in every park every year. So this is something that we learned about actually two stockholder calls ago. I think that was actually Q3 of 2019 that we learned this so Cedar Fair has moved to something new in every park every year. And so basically if you take to take this information if you're and also to take the information that was in the June 2nd conference call and the June 1st presentation that you're looking at right now. Cedar Fair is looking to broaden the parks to a very entertainment environment park so they're not going to rely on roller coasters as much. They're still going to be extremely important to the chain and the parks that they operate, but they want to move towards an experience so they want the guests to come in and experience another world. So I'm going to talk about Canada's Wonderland as an example and it's going to sound really cheesy, but when it's explained in detail you'll get it. So Canada's Wonderland has these grass walls built around the parking lot and Canada's Wonderland used to be an extremely well themed theme park until Paramount took over. Wonderland is looking to bring back the old so you might see something like Action Zone changed back to its international vibe. You're going to see Med Fair upgraded, you're going to see Frontier Candidate expanded, Planet Snoopy emphasized in their new attractions. All the attractions are going to be themed and with each attraction you're going to see an upgrade to the area that attraction takes place. So Beagle's Brigade is going to come with a little bit of theming and oomph to the area that it operates in and the Mountain Bay Cliffs are also a themed addition to Splashworks again to give it that unique vibe in the area. Everything that Cedar Fair invests in their parks is going to upgrade them and as you keep doing that your parks are eventually going to get to a point where they're actually self-sufficient. And investing in them you're not going to need to build a roller coaster every two to three years in some of your bigger parks. You're going to need to only build them every five to seven years or even more. So that's the goal that they're looking for and when you get to that point investing 9% of your revenues is going to be a lot more impacting than it is now. But to invest 9% of your revenues into the parks right now they wouldn't be able to add something new in every park every year and still maintain those world-class thrill rides against their competition. They wouldn't be able to build those $30 million coasters, $20 to $30 million coasters at two of their parks every year. It would get a lot more complicated. Right now their revenue sits at about $1.47 billion. By the time that this will be in place with their investments in resorts and again the presentation, they are still looking to buy properties after what is going on currently ends. So they want to get back into a financial stability to be able to purchase parks as they emphasize the Texas area. They want to be able to get to a position where they can purchase parks again. So Cedar Fair is still looking to grow their portfolio with resorts and parks and with that your revenues will grow. Again, Cedar Fair is a chain that has very similar revenue with 11 to 15 parks to that of 6 flags which has almost double the amount of parks as Cedar Fair. And the reason is the resorts and accommodations make up a large portion of their revenue stream. So they have a lot of these outside of park revenues that 6 flags doesn't necessarily have. So it's a very smart investment model for a chain to look at outside of park revenue. And it looks like they're still looking to expand that as they move forward. I have no idea what's going on with the Canada's Wonderland Hotel so I can't speak to that. But they are growing their out of park revenue stream with sports and events venues and resorts and hotels. So it'll be very interesting to see how the revenue stream with Cedar Fair continues to grow. And again, those Schlitterbond parks in Texas are definitely going to boost the Cedar Fair portfolio as well. It'll be extremely interesting to see how quickly or how slowly they migrate towards that 9% of revenue. They're nowhere near being able to just suddenly swap over to the 9% of revenue. You have parks like Cedar Point that are still going to need those massive upgrades as they look to beautify the park. And parks like Canada's Wonderland that have aging attractions with very poor capacity that they need to upgrade. And parks like Kings Island and Kings Dominion is another example. Oh man, that park means a lot. Parks like Carol ones, they're not near the end, but they are definitely being developed very nicely. You know, they have their resort or their hotel now and they have their campground and they have their BNM Giga, their BNM Hyper. I feel like another one or two coasters in that park is set and Canada's Wonderland is in a very similar boat to that. They have a flat ride wise. They're good to go. I think that they just need to upgrade some of their existing coasters like remove them and upgrade them. I think two or three more coasters at Wonderland and that park is good to go. Nautz is like pretty much there. That again is the very good example of a park that is almost complete. And then you have smaller parks that are going to need some of these investments moving forward as well. So it'll be very interesting to see how Cedar Fair spends this 9% of revenues and then furthermore into the categories of in-park enhancements, assets, maintenance, adjacent development, new rides, events, and attractions split up into that pie chart that you see on the screen there. So it'll be very interesting to see what Cedar Fair does moving forward and how quickly they do it. Anyways, I wanted to present this information as it just came out yesterday and the day before. Hopefully you guys enjoyed this video. If you have any comments or questions, definitely hit comment down below and I'll try and answer them to the best of my ability. Again, thank you so much for watching this video and hopefully you have a great week and your parks are opening or opening soon. Thanks so much for watching guys. Have a good one. Bye.