Tuesday, 06 September 2005
Cedar Fair, L.P. Press Release
SANDUSKY, OHIO, September 6, 2005 -- Cedar Fair, L.P. (NYSE: FUN), a publicly traded partnership which owns and operates seven amusement parks and five water parks, today reported that combined attendance at its parks for the month of August, through the Labor Day weekend, increased 2% to 3.30 million guests from 3.24 million a year ago. Over the same period, average in-park guest per capita spending was up 2% and out-of-park revenues, including resort hotels, were up 12%, or approximately $2.1 million.
“During the month of August, combined attendance and in-park guest per capita spending were up slightly, and out-of-park revenues remained strong,” said Dick Kinzel, chairman, president and chief executive officer. “In August, attendance at our seasonal parks was led by a 7% increase at Dorney Park, a 23% increase at Michigan’s Adventure, and an 8% increase at our five seasonal water parks, two of which continued to benefit from the hot, dry weather in the Midwest. In addition, attendance at our newest park, Geauga Lake, was up approximately 19%, or 33,000 visits, from August 2004, as the park’s new water park continued to gain in popularity. At our two largest parks, Cedar Point and Knott’s Berry Farm, attendance for the month was down 2% and 5%, respectively.” Overall, combined revenues in August were up 5%, or $6.1 million, between years.
Kinzel noted that after the August results, combined attendance through the first eight months of the year was essentially flat with 2004. Over this same time, average in-park guest per capita spending was up 2% and out-of-park revenues were up 14%, or $9.6 million, driven primarily by the strong results of Cedar Point’s Castaway Bay Indoor Waterpark Resort. “While attendance trends improved slightly during August, it was not enough to overcome some of our shortfalls from earlier in the year,” he said. “Based on preliminary August results, we are lowering our guidance and now expect to generate full-year revenue of $555-$565 million and full-year adjusted EBITDA of $173-$180 million.”
Kinzel concluded by explaining that the Partnership plans to announce its 2006 capital plans for Worlds of Fun tomorrow, September 7. Capital expenditure plans at the Partnership’s other parks for next season are in the process of being finalized and will be announced over the next month or two.
Cedar Fair’s seven amusement parks are Cedar Point, located on Lake Erie between Cleveland and Toledo; Knott’s Berry Farm near Los Angeles in Buena Park, California; Dorney Park & Wildwater Kingdom near Allentown, Pennsylvania; Geauga Lake & Wildwater Kingdom near Cleveland, Ohio; Valleyfair near Minneapolis/St. Paul; Worlds of Fun, located in Kansas City, Missouri; and Michigan’s Adventure near Muskegon, Michigan. The Partnership’s water parks are located near San Diego and in Palm Springs, California, and adjacent to Cedar Point, Knott’s Berry Farm and Worlds of Fun. Cedar Fair also owns and operates the Castaway Bay Indoor Waterpark Resort in Sandusky, Ohio.
Some of the statements contained in this news release constitute forward-looking statements. These statements may involve risks and uncertainties that are difficult to predict, may be beyond the Partnership’s control, and 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’s leisure time and spending, adverse weather conditions, unanticipated construction delays, the absence of historical operating experience for Geauga Lake & Wildwater Kingdom, and other factors could affect attendance and in-park guest per capita spending at our parks and cause actual results to differ materially from the Partnership’s expectations.
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