Cedar Fair L.P. Announces Increased Revenues and Earnings

Sandusky, OH -- Cedar Fair, L.P., a publicly traded partnership which owns and operates five amusement parks and four water parks, today announced a 4% increase in revenues and a 1% increase in earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2000.

Net revenues for the quarter ended June 25, 2000, increased 4% to $129.5 million from $124.2 million in 1999, and EBITDA increased 1% to $40.6 million from $40.3 million for the same period last year. Operating income for the quarter increased slightly to $28.8 million from $28.3 million, and net income, after a significant rise in interest expense, decreased 3% to $18.6 million, or $.36 per limited partner unit, from $19.2 million, or $.37 per unit, in 1999.

Richard L. Kinzel, president and chief executive officer, explained that the increase in interest expense for the quarter was primarily the result of higher interest rates, as well as increased borrowings from the 1999 acquisitions of a hotel and water park in California and significant capital expenditures at several parks for the 2000 season. All other costs as a percent of revenues have remained relatively level between years.

"At our five amusement parks, we achieved a 5% increase in in-park guest per capita spending for the quarter, offset slightly by a 1% decrease in combined early-season attendance," said Kinzel. "Meanwhile, early-season water park attendance was up strongly due to our two new California water parks."

Kinzel continued by saying "guest response to the new rides and attractions we introduced for the 2000 season has been excellent, including Millennium Force at Cedar Point which has received the highest guest-satisfaction ratings of any new ride we have ever introduced."

"On a positive note," continued Kinzel, "guest per capita spending at each of our parks has been very strong, up 6% through the first six months of the year, and attendance at Knott's Berry Farm is meeting our expectations. In addition, we are pleased with our two new water parks in California, which are being received very well by their local markets."

Kinzel concluded by noting that virtually all of Cedar Fair's revenues from its four seasonal amusement parks, as well as its four water parks, are realized during a 130-day operating period beginning in early May, with the major portion concentrated in the peak vacation months of July and August. The Partnership's fifth park, Knott's Berry Farm, is open year-round but also operates at its highest level of attendance in the third quarter of the year.

Cedar Fair's five amusement parks are Worlds of Fun & Oceans of Fun in Kansas City, Missouri; Cedar Point, located on Lake Erie between Cleveland and Toledo; Knott's Berry Farm near Los Angeles in Buena Park, California; Dorney Park and Wildwater Kingdom near Allentown, Pennsylvania; and Valleyfair near Minneapolis/St. Paul. The Partnership's water parks are located in Kansas City, Missouri; Sandusky, Ohio; Chula Vista, California near San Diego; and Buena Park, California. Cedar Fair also operates Knott's Camp Snoopy at the Mall of America in Bloomington, Minnesota under a management contract.

The information contained in this news release, other than historical information, consists of forward-looking statements. These statements may involve risks and uncertainties that could cause actual results to differ from those described in such statements. Although the Partnership believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including general economic conditions, competition for consumer spending, adverse weather conditions, unanticipated construction delays, and other factors could cause actual results to differ materially from the Partnership's expectations.

News release source: Cedar Fair L.P.