Cedar Fair Announces Long-Term Financial Goals

Declares $0.25 per limited-partner unit distribution for 2010 – 24th consecutive year of distributions to unitholders

Wednesday, 06 October 2010

Cedar Fair Press Release

SANDUSKY, OHIO, October 5, 2010 – Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and active entertainment, today announced the declaration of a cash distribution of $0.25 per limited-partner unit. The Company also announced that it has established the following long-term financial goals upon the completion of its strategic planning process with management and its board of directors:

  • Grow revenues by 10% to 14% by 2015 (~2.3% CAGR)
  • Grow Adjusted EBITDA by 10% to 14% by 2015 (~2.3% CAGR)
  • Achieve free cash flows of $120 million to $140 million on an annual basis during 2012 to 2015
  • Reduce its Consolidated Leverage Ratio to 4.0x in 2013
  • Provide for a sustainable and growing distribution to unitholders – between $1.25 to $1.75 per limited partner unit by 2015

As part of this planning process, the Company also reaffirmed its previous 2010 outlook of revenues between $940 million and $965 million and Adjusted EBITDA, excluding one-time costs, between $320 million and $340 million. In 2010, the Company also expects cash interest of approximately $130 million, cash taxes between $20 million and $23 million, and capital expenditures of $85 million.

“Building on the positive value-creating momentum we have cultivated through the successful refinancing of our debt, coupled with our strong performance through the summer operating season, we have developed a comprehensive five-year plan to position us for consistent, steadily increasing growth going forward while returning an attractive income stream to our investors through a sustainable distribution policy,” said Dick Kinzel, chairman, president and chief executive officer.

The Company plans to achieve these goals by steadily growing its attendance and revenues through continued investment in trend-setting new rides and attractions along with new targeted marketing programs. The Company will also continue to maintain strict controls over operating costs while maintaining its “best-in-class” visitor experience. Finally, further opportunistic reduction of debt through the prudent use of free cash flows will position Cedar Fair with the balance sheet flexibility it needs to take advantage of future growth opportunities.

“Cedar Fair is a recognized leader in the regional amusement park industry with a business model that has generated healthy revenues and strong cash flows in all economic climates over many years,” added Kinzel. “I am confident that the expertise and proven success of our management team will keep us focused on executing our strategy, and delivering maximum long-term value creation for our unitholders.”

The $0.25 per limited partner unit distribution will be paid on December 15, 2010 to holders of record December 3, 2010. This is the 24th consecutive year in which Cedar Fair has paid a distribution to its unitholders.