Cedar Fair reports attendance and revenues

Company reports 2008 revenues and attendance through Labor Day up 3% over last year.

Tuesday, 09 September 2008

Cedar Fair Entertainment Company Press Release

SANDUSKY, OHIO, September 9, 2008 -- Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and active entertainment, today reported that its 2008 revenues through Labor Day increased approximately $21 million, or 3%, to $852 million when compared with the same period a year ago.  During this time, attendance rose 3%, or 547,000 visits, while average in-park guest spending, at $40.24, and out-of-park revenues, at $87 million, were comparable to last year.

On a same-park basis, excluding Geauga Lake amusement park which closed at the end of 2007, revenues through Labor Day increased 5%, or $39 million.  This increase is attributable to a 6% increase in attendance, or 980,000 visits, and average in-park guest per capita spending and out-of-park revenues that were comparable to the same period a year ago.

“We are pleased with the performance of most of our parks through Labor Day,” said Dick Kinzel, chairman, president and chief executive officer.  “We have experienced solid performance in our northern and southern regions where there has been a strong guest response to the new rides and attractions, as well as our ‘value-added’ marketing initiatives.  These parks have also benefited from improving gas prices and favorable weather conditions throughout the peak vacation months of July and August.”

Kinzel mentioned that the northern region parks reported a 3%, or $13 million, increase in in-park revenues.  This increase was a result of a 3% increase in attendance, or 322,000 visits, and average in-park guest per capita spending that was comparable to last year.   “While the performance of Canada’s Wonderland continues to stand out across all of our properties, Cedar Point and Kings Island have also contributed nicely to the increase in attendance and revenues,” said Kinzel.

Through Labor Day, the southern and western region parks saw in-park revenues increase by 3%, or $4 million, each.  The increase in the southern region is a result of an 8% increase in attendance, or 289,000 visits, offset somewhat by a 5% decrease in average in-park guest per capita spending.  In contrast, the western region parks, experienced a 4% increase in average in-park guest per capita spending, offset slightly by a 1% decrease in attendance, or 64,000 visits.

“We are looking forward to the upcoming Fall operating season,” added Kinzel.  “With approximately 15% of our annual revenues still to come, we are cautiously optimistic that the momentum we have experienced during the peak vacation months of July and August will continue into our increasingly popular Fall season."  

Kinzel noted that based on the preliminary August results, the Company reaffirms its current guidance of full-year revenues between $990 million and $1.02 billion and full-year adjusted EBITDA between $340-$355 million.

The Company also reported it will invest $22 million at Kings Island for the 2009 operating season that will feature a new world-class roller coaster, to be named Diamondback.  This will be the park’s tallest and fastest coaster, and the highlight of the Company’s 2009 capital expenditure program.  “With its twists and turns through 10 acres of terrain, wooded hills and a splashdown ending, Diamondback is sure to give its riders the ultimate thrill,” said Kinzel.  “In 2009, we will also introduce PROWLER at Worlds of Fun in Kansas City, Missouri.  PROWLER is an $8 million wooden roller coaster that has endless amounts of high speed hills and sharply banked turns that hug the wooded land below it.  PROWLER is certain to be a major marketing draw for that park next year.”

Kinzel said 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 eleven amusement parks, six outdoor water parks, one indoor water park and five hotels, is one of the largest regional amusement park operators in the world.  Amusement parks in the company’s northern region include two in Ohio:  Cedar Point, Sandusky, consistently voted “Best Amusement Park in the World” in Amusement Today polls; and Kings Island, near Cincinnati; 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 California’s 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 Company 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 Company’s expectations.  In addition, risks and uncertainties concerning the acquisition of the Paramount Parks include, but are not limited to the ability of the Company to combine the operations and take advantage of growth and synergy opportunities.