Cedar Fair's net revenues increase

Saturday, 07 May 2005

Company posts bigger loss because of property acquisitions.

By BRANDI BARHITE
brandibarhite@sanduskyregister.com

SANDUSKY - With the help of its new year-round Castaway Bay indoor waterpark, Cedar Fair increased its net revenues for the first quarter of 2005 by 7 percent or $24.8 million compared to last year.

However, the Sandusky-based company posted a larger loss than last year's first quarter, $20.5 million to $24.6 million, because of the new operating costs of Geauga Lake and Castaway Bay, said Cedar Fair Treasurer Brian Witherow.

Witherow said Friday that Cedar Fair hadn't acquired Geauga Lake, Aurora, Ohio, by the first quarter of last year, and excluding the impact of Geauga Lake, the net loss would have been $20 million.

"That is what we expected," though, Witherow said of the added expenses of Geauga Lake and Castaway Bay.

Witherow also said record rainfall at Cedar Fair's only other year-round operation, Knott's Berry Farm near Los Angeles in Buena Park, lost $2 million for Cedar Fair, and also affected the first quarter results.

Witherow said if Castaway Bay has as strong of quarter as it did this year, and Knott's has better weather next year, revenues should increase.

Cedar Fair CEO and President Dick Kinzel on Friday said that he is pleased with the performance of Cedar Point's Castaway Bay, which opened in November, and when Knott's and Castaway both do well, first quarter results for the year-round properties will likely improve.

Kinzel said Castaway Bay, formerly a Radisson Hotel, used to lose money for Cedar Fair during the off-season, but now isn't.

Typically, Cedar Fair, which owns and operates seven amusement parks and five waterparks, realizes the majority of its revenues in a 130-day operating period. Cedar Point in Sandusky is Cedar Fair's flagship park.

For the full year, Kinzel predicts that revenue growth of 6-8 percent more than last year's $542 million level, according to a press release issued Thursday.

FunCoast.com is your online guide to summer fun for Cedar Point, the LakeErie Islands and Sandusky area. Our site offers up-to-date information on area attractions, restaurants, hotels, gasoline prices, ferry schedules, swimming, birding and fishing, along with a complete listing of events happening in the Sandusky/Cedar Point area. To use our Webcam and zoom in on Cedar Point's rollercoasters, go to http://funcam.funcoast.com

Copyright 2005 the Sandusky Register. All rights reserved.

All materials contained on this site are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of the Sandusky Register or FunCoast.com. You may not alter or remove any trademark, copyright or other notice from copies of the content.