February 8, 2008
Sandusky, OH -- Cedar Fair (NYSE: FUN) yesterday announced its fourth quarter and year-end results for 2007. Revenues and in-park per cap spending increased for the regional amusement park and water park operator in 2007, but attendance overall was down.
Revenues increased to $987 million up from $831.4 million a year ago. Income before taxes was $9.7 million and Cedar Fair reported a full-year loss of $4.5 million or $0.08 per LP unit.
The figures from 2006 include the results of the Paramount Parks since their acquisition from CBS Corporation on June 30, 2006.
The 2007 results include a non-cash impairment charge of $54.9 million related to the Geauga Lake restructuring.
"I am pleased to report that 2007 was another very successful year for the company," said Dick Kinzel, Cedar Fair's chairman, president and chief executive officer. "This was a year of transformation for Cedar Fair as we continued to integrate the newly acquired parks into our existing portfolio of assets."
Adjusted EBITDA, which Cedar Fair uses as measure of the company's park-level operating results, increased 9.8% to $340.7 million from $310.3 million in 2006.
Kinzel added, "In 2007, our combined parks entertained more than 22 million visitors and generated an average in-park guest per capita spending of $40.60, up 5% from 2006. The result of this solid operating performance was a record $341 million in adjusted EBITDA."
"The integration of our new parks continues to go well and we are where we expected to be on a combined basis at this point in the process. Although not all of the new parks performed to our expectations in 2007, we saw significant growth in guest per capita spending and we continued to meet our planned cost savings and synergies."
For the fourth quarter, net revenue decreased $4.4 million to $115.4 million. The combined operating loss for the same period was $19.6 million compared to an operating loss of $1.9 million in the fourth quarter a year ago.
Cedar Fair said the higher operating loss is largely attributable to a $15.7 million non-cash charge for impairment of assets relating to the Geauga Lake restructuring.
After interest expense, the net loss for the quarter was $9 million or $0.17 per LP unit in 2007 compared to a net loss of $30 million or $0.56 per LP unit a year ago.
Cedar Fair said the operating results for the fourth quarter were negatively impacted by fewer operating days compared to last year's fourth quarter.
"The additional operating days in the fourth quarter of 2006 provided a benefit to revenues in that period of approximately $14 million as well as an additional 304,000 guest visits," said Kinzel.
"In general, we are pleased with the performance of our parks in the fourth quarter," Kinzel continued. "In 2007, we continued to see growth in our fall season, something we're very excited about. Several of our legacy parks, including Cedar Point, performed very well in October, as did some of the new parks in the Northern Region. Our fall season has become increasingly more important to our overall operating results and we believe continued expansion of the events and operations around this part of the season will provide us with additional opportunities for growth."
For 2008, Cedar Fair is investing $88 million in capital improvements at its parks, including new roller coasters at Canada's Wonderland, Knott's Berry Farm, Kings Dominion, Dorney Park and Michigan's Adventure. The company is also expanding the water park at Carowinds and building a new children's area at Cedar Point.
"We will continue our long-term strategy of continually reinvesting in our parks to improve the guest experience," said Kinzel. "We remain in solid shape to invest capital in our parks as planned, while maintaining our regular quarterly cash distributions to our unit holders and managing our debt levels."
For more information, visit www.cedarfair.com.
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