Cedar Fair reports decrease in revenues, successful land sale

July 24, 2009

Sandusky Register

 Cedar Fair's news Thursday had about as many ups and downs as a roller coaster at Cedar Point.

As of July 19, visits to Cedar Fair's amusement parks fell 11 percent compared to a year ago, and revenue dropped $62.3 million, or 1 percent, compared to the same period in 2008. Separate results for Cedar Point were not announced.

But the parent company also said it sold 87 acres of land near Toronto -- earning what's expected to be a $50 million profit.

The profit will be applied to the company's long-term debt, officials said.

The company also declared a 25 cent quarterly cash distribution per limited partner unit, consistent with its annual distribution of $1 per unit.

Cedar Fair officials offered a variety of reasons for the revenue drop:

* The company had 39 fewer operating days the first half of 2009 compared to 2008, because of the way the calendar fell and because two amusement parks, including Cedar Point, opened a week later, said Stacy Frole, a Cedar Fair spokeswoman.

The parks are adding 70 operating days at the second half of the year, though, so there will be a net gain of 31 additional operating days by the end of 2009 among the company's 17 amusement parks and outdoor water parks.

* Star Trek: The Experience in Las Vegas shut down in late 2008.

* Weather was bad at many amusement parks during the early part of the season.

* The recession hurt many regional economies, including the area served by Cedar Point.

"Since the July 4 weekend, attendance and revenue trends have improved somewhat across the regions in which we operate, although overall results since then still remain slightly behind last year," said Dick Kinzel, Cedar Fair's chairman, president and CEO.

Special events and promotions are expected to lure more people to the amusement parks, Kinzel said.

"We have positioned ourselves to be the affordable alternative to a weeklong family vacation," he said.

Cedar Fair reported it is selling 87 acres of surplus land next to the Canada's Wonderland amusement park near Toronto to Vaughan Health Campus of Care, but it didn't provide other details, such as the sale price. Frole said Cedar Fair will gain about $50 million after paying taxes and commissions.

The company will host a conference call with analysts Aug. 4 to discuss its second-quarter results. Its latest financial news is posted at cedarfair.com.

Cedar Fair owns and operates 11 amusement parks, six outdoor water parks, one indoor waterpark and five hotels.