Lower prices have attendance up at Cedar Fair

Thursday, 29 June 2006

By BRANDI BARHITE
brandibarhite@sanduskyregister.com

SANDUSKY - Just as Cedar Fair had hoped, lower prices are starting to help attendance.

Combined attendance at its seven amusement parks and five waterparks through June 25 was up 1 percent, or about 41,000 visits, from one year ago.

During the same period, out-of-park revenues, including resort hotels, increased 1 percent, or $427,000, according to a press release Wednesday.

During the first 25 days of June, attendance at the 12 properties increased less than 1 percent from one year ago.

But with about 75 percent of the annual attendance at the seasonal parks still to come, the true impact of the lower prices has yet to be seen, Cedar Fair officials say.

"We believe that maintaining or lowering the prices at most of our parks was the right move for our company and we think that has helped attendance," said Stacy Frole, director of investor relations.

Only Cedar Point's Castaway Bay and Knott's Berry Farm, near Los Angeles, are open year-round.

Dick Kinzel, chairman, president and chief executive officer, said solid performances at Worlds of Fun and Oceans of Fun in Kansas City, Mo., where attendance increased 48,000 visits, helped offset an attendance shortfall of 43,000 visits at Dorney Park, near Allentown, Pa., which had nine more days of rain in June this year compared to last.

Frole said unless there are material differences, Cedar Fair doesn't break out attendance at its parks. No attendance was given for Cedar Point.

Also Wednesday, Cedar Fair announced its public debt ratings from Moody's Investors Services and Standard & Poor's -- the first time Cedar Fair has had ratings, which were in connection to its recent announcement of the $1.24 billion acquisition of the Paramount Parks, Frole said.

Cedar Fair received a corporate debt rating of Ba3 from Moody's and a BB- from Standards & Poor's.

Moody's also assigned a corporate family rating of Ba3 with a stable outlook, and Standards & Poor's assigned a corporate credit rating of B with a positive outlook.

Although the ratings are three notches below investment grade, they reflect stable cash flows and strong coverage ratios, Frole said. They are in line with the partnership's estimates and expectations, she said.

"It is a way for the banks to judge where we stand, but because of these ratings, we aren't guaranteed a certain (interest) rate," Frole said.

Cedar Fair has public debt now because it allowed more banks into its debt program, which will total $1.75-$1.85 billion.

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

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