November 17, 1999
Sandusky, OH -- November 9, 1999 -- Cedar Fair, L.P. announced record third-quarter revenues, earnings before interest, taxes, depreciation and amortization, and net income.
Net revenues for the quarter ended September 26, 1999 increased 3% to $240.7 million from $234.2 million for the quarter ended September 27, 1998. EBITDA for the quarter increased 2% to $124.1 million from $121.5 million for the same period last year. Operating income for the period increased 3% to $108.3 million, and net income increased 2% to $96.2 million, or $1.83 per limited partner unit, from $94.3 million, or $1.79 per unit, in 1998.
"Although our attendance expectations for 1999 were higher than we achieved, we are pleased with the record third-quarter results, particularly following last year's very strong season," said Richard L. Kinzel, president and chief executive officer. "For the quarter, we achieved a 3% increase in in-park guest per capita spending and a 27% increase in out-of-park revenues, including our hotels. These gains were partially offset by a 4% decrease in combined third-quarter attendance."
Kinzel said the Partnership was ahead of last year's record results through the first nine months of the year. "We had less-than-ideal weather and no new thrill rides at several of our seasonal parks," he said, "but the new rides, attractions and resort facilities we did add for 1999 generated solid returns." Through the first nine months of 1999, net revenues were up 4% over last year on a 4% increase in in-park guest per capita spending and a 20% increase in out-of-park revenues. These gains were offset slightly by a 2% decrease in combined attendance from 1998's record level. Over the same period, EBITDA increased 5% between years.
Kinzel explained that virtually all of Cedar Fair's revenues from its four seasonal parks are realized during a 130-day operating season beginning in early May, with the major portion concentrated in the peak vacation months of July and August. Knott's Berry Farm is open year-round but also operates at its highest level of attendance during the third quarter of the year.
Kinzel concluded by reporting that the Partnership has announced plans for a total of $110 million in capital investments for next season at its five parks, including the world's tallest and fastest roller coaster Cedar Point, a multi-million-dollar water park at Knott's Berry Farm, and a 275- foot-tall thrill ride at Valleyfair. In addition, the Partnership previously announced an agreement in principle for the acquisition of a water park near San Diego, in Chula Vista, California.