CEDAR FAIR REPORTS ATTENDANCE AND REVENUES THROUGH LABOR DAY
http://www.cedarfair.com/ir/press_releases/index.cfm?current_root=15&mode=story&story_id=132SANDUSKY, OHIO, September 13, 2007 -- Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and active entertainment, today announced that combined 2007 revenues at its parks through September 3, 2007, were $828.4 million, on 18.5 million guest visits and average in-park per capita spending of $40.30. The 2007 results include the operations of the Paramount parks, which the company acquired from CBS on June 30, 2006.
On a same-park basis, excluding the effect of the newly acquired parks, total revenues through the Labor Day weekend were up 2%, or $7.8 million. The increase in same-park revenues is the result of a 5% increase in average in-park guest per capita spending to $39.54, offset somewhat by a 3% decrease in attendance, or approximately 319,000 visits. Out-of-park revenues on a same-park basis were up slightly through the Labor Day weekend.
Including results from the acquired parks, revenues for the month of August, including the Labor Day weekend, decreased 1%, or $2.6 million, from a year ago. The decrease in revenues for the month is attributable to a 5% decrease in attendance, or 315,000 visits, substantially offset by a 4% increase in average in-park per capita spending to $40.11. Out-of-park revenues during this same period increased 3%, or $573,000. The decrease in attendance and revenues during the month is primarily attributable to a significant decrease in complimentary tickets and season pass visits at the newly acquired parks.
?During the month of August we eliminated approximately 120,000 complimentary tickets that had been issued in prior years at the newly acquired parks,? said Dick Kinzel, Cedar Fair?s chairman, president and chief executive officer. ?We also experienced a decrease of 110,000 visits from season passholders at the same parks, which resulted from increasing season pass prices at the new parks to bring them in line with the Cedar Fair pricing strategy. The resulting decrease in season pass visits, combined with the elimination of complimentary tickets, accounts for more than 70% of the year-over-year decrease in August attendance.
?We are somewhat disappointed with our August results at the newly acquired parks,? said Kinzel. ?However, we believe that we are still on track with our integration plans for these parks. As I have mentioned in the past, the 2007 operating season is a transition year for the Company. We continue to build integrity into our pricing structure and have been able to reduce our operating costs at the same time. This is the long-term strategy of the Company and we believe we will see the benefits of this strategy over the next few years.?
Kinzel noted that based on the preliminary August results, the Company anticipates it will be at the lower end of its 2007 expectations of full-year revenues between $950-$980 million and full-year adjusted EBITDA between $320-$340 million.
The Company also reported that it will invest $21 million at Canada?s Wonderland for the 2008 operating season, highlighted by the addition of a new roller coaster. The new thrill ride, to be named Behemoth, will be the park?s biggest investment in its 27-year history and will be the longest, fastest and tallest roller coaster in Canada. Behemoth will climb to a height of 230 ft. or 70 m., followed by an 85-degree drop with speeds reaching 77 mph or 125km/h. Riders will experience high speed twists and turns while enjoying the roller coaster?s new open-air seating that will allow all riders to experience unobstructed views of all the thrills and excitement. ?Behemoth will be a great addition to our Canadian park and will bring a whole new type of thrill riding to the area, something we hope to introduce at the newly acquired parks over the next several years,? said Kinzel.
Kinzel concluded by explaining that additional capital expenditure and marketing plans at the Company?s other parks for next season are in the process of being finalized and will be announced at a later date.
Cedar Fair is a publicly traded partnership headquartered in Sandusky, Ohio. The Partnership, which owns and operates twelve amusement parks, five outdoor water parks, one indoor water park and six hotels, is one of the largest regional amusement park operators in the world. Amusement parks in the company?s northern region include three in Ohio: Cedar Point, Sandusky, consistently voted ?Best Amusement Park in the World? in Amusement Today polls; Kings Island, near Cincinnati; and Geauga Lake & Wildwater Kingdom, Aurora; as well as Canada?s Wonderland, near Toronto; Dorney Park, Allentown, Pa.; Valleyfair, Shakopee, Minn.; and Michigan?s Adventure, near Muskegon, Mich. In the southern region are Kings Dominion, Richmond, Va.; Carowinds, Charlotte, N.C.; and Worlds of Fun, Kansas City, Mo. Western parks in California include: Knott?s Berry Farm, Buena Park; and Great America, Santa Clara; as well as Star Trek: The Experience, an interactive adventure in Las Vegas.
Some of the statements contained in this news release constitute forward-looking statements. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although the Partnership believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including general economic conditions, competition for consumer leisure time and spending, adverse weather conditions, unanticipated construction delays and other factors could affect attendance at our parks and cause actual results to differ materially from the Partnership?s expectations. In addition, risks and uncertainties concerning the acquisition of the Paramount Parks include, but are not limited to the ability of the Partnership to combine the operations and take advantage of growth and synergy opportunities.
Topic: Cedar Fair Attendance And Revenues Through Labor Day (Read 720 times)