Cedar Fair revenue up, attendance down in second quarter

SANDUSKY Although attendance numbers fell at parks owned by Cedar Fair Entertainment Co. in the seco
Janet
May 24, 2010

 

SANDUSKY

Although attendance numbers fell at parks owned by Cedar Fair Entertainment Co. in the second quarter, those who did visit spent more, company officials said.

"Attendance trends were soft, but it's due to pricing changes," said Stacy Frole, Cedar Fair's director of investor relations.

The company did not release specific figures for Cedar Point.

Attendance for the quarter was 6.3 million guests averaging $40.54 of in-park per capita spending and $27.9 million in out-of-park revenues. Pricing changes include eliminating the number of discounts and complimentary tickets that were offered at several of the acquired parks.

Cedar Fair also experienced a surge in revenue since the company acquired Paramount Parks last summer.

The company's operations, including the parks, generated $274 million in revenue and a net income of $5.5 million or 10 cents per share. The company reported a net income of $11.1 million or 20 cents per share in the second quarter last year.

On a same-park basis, excluding Paramount Parks, net revenues during the second quarter increased 1 percent or $1.2 million to $146.6 million compared to the previous year. Company officials said the increase is attributable to the 5 percent increase in per capita spending, primarily in the southern and western regions. Out-of-park revenues on same-park basis decreased 3 percent, or $757,000. Officials attribute the decrease to 15 fewer operating days at Geauga Lake and Wildwater Kingdom in Aurora.

The consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the second quarter were $85.8 million. The EBITDA during the second quarter last year were $38.1 million. On a same-park basis, the adjusted EBITDA increased 11 percent or $4.4 million to $44.3 million. Company officials said the adjusted EBITDA is a "meaningful measure of park-level operating profitability."

Results for the first six months of 2007 include consolidated net revenues of $304 million and a consolidated operating loss of $10.7 million. On a same-park basis, net revenues were 2 percent higher at $172.1 million compared to last year. The adjusted EBITDA for the first six months were $39.3 million. On a same-park basis, the adjusted EBITDA for the first six months of 2007 were $26.1 million compared to $7.4 million in 2006.

"In general, we are satisfied with our results through the first half of the year," said Cedar Fair President and CEO Dick Kinzel in a press release.

The first seven months of 2007 on a same-park basis increased 2 percent to $329.8 million compared to $324.6 million last year. The consolidated net revenues, which include the acquired parks, totaled $574.3 million compared to $426.6 million in 2006. Cedar Fair acquired Paramount Parks on June 30, 2006 from CBS Corp.

"We still have 40 percent of our season ahead of us," said Cedar Fair Director of Investor Relations Stacy Frole. "July and August are our peak vacation time."

Cedar Point's Castaway Bay, Knott's Berry Farm in Calif., and Star Trek: The Experience are the only properties open year-round. Cedar Fair is a publicly traded partnership that owns and operates 12 amusement parks, five outdoor water parks, one indoor water park and six hotels across the nation and Canada.