Castaway has Cedar Fair down

Tuesday, 02 May 2006

By BRANDI BARHITE
brandibarhite@sanduskyregister.com

SANDUSKY - Castaway Bay is not attracting as many guests in its second year.

The opening of Kalahari Waterpark Resort in Huron Township, as well as Castaway Bay's successful inaugural year in 2005 -- which exceeded expectations -- are reasons, according to Cedar Fair.

The Sandusky-based partnership announced Monday its first quarter revenues.

Net revenues for the quarter decreased 4 percent to $23.9 million from $24.8 million in 2005, according to the press release.

Castaway Bay in Sandusky and Knott's Berry, near Los Angeles, are the partnership's only year-round operations.

Most of Cedar Fair's revenues come from a 130-140-day period, beginning in early May with the most realized in July and August. The partnership's flagship park, Cedar Point, opens for the season Saturday.

The decrease in revenue for the first quarter was the result of lower occupancy and average daily room rates at the resort, which were anticipated in light of increased competition in the Sandusky area and following a "very successful" inaugural year in 2005, according to the press release. Kalahari opened last May.

"We weren't surprised revenues were down for the first quarter. Castaway Bay had a fantastic year for its inaugural year -- it exceeded our expectations," said Stacy Frole, director of investor relations for Cedar Fair.

The opening of Kalahari added 600-800 rooms for those seeking an indoor waterpark vacation, she said. Great Wolf Lodge -- Erie County's first indoor waterpark -- opened in Perkins Township in 2001 so that wasn't a factor, Frole said.

First quarter results in 2005 also benefited from an earlier Easter and spring break, she said.

After depreciation and a small non-charge for unit options, operating costs and expenses decreased 1 percent to $51.6 million from $52.2 million in 2005.

Interest expense for the first quarter increased $700,000, or 11 percent, due in large part to higher short-term rates.

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