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Cedar Fair Reports Net Revenues of $145 Million
SANDUSKY, Ohio -- Cedar Fair L.P., a publicly traded partnership which owns and operates seven amusement parks and five water parks including Cedar Point and Geauga Lake, reports net revenues of $145 million for the quarter ended June 27. The results are down from $145.2 million for the 2003 quarter and represent a 1% decrease in combined attendance and a 2% increase in average in-park guest per capita spending.Over the year-to-year period, out-of-park revenues, including resort hotels, decreased 4%. .Dick Kinzel, chairman, president and chief executive officer, explains that results for the current quarter were negatively impacted by cool temperatures and frequent rainfall in the Midwest throughout much of May and June, as well as the timing of the 2004 operating calendar, which shifted several operating days from the second to the third quarter. Second quarter results also include operations from Geauga Lake, which was acquired in early AprilExcluding the acquisition, net revenues in the quarter decreased 5% to $138.1 million, on an 8% decrease in combined attendance and a 3% increase in average in-park guest per capita spending.Total operating costs and expenses for the quarter, excluding depreciation and other non-cash charges, increased 5% to $105 million from $100.4 million in 2003, due to the acquisition of Geauga Lake. Excluding operations at Geauga Lake, total cash operating costs and expenses for the quarter decreased 5% to $95.4 million, due in large part to fewer operating days in the period.After depreciation and a $1 million non-cash charge for unit options, operating income for the period decreased to $22.9 million from $27.6 million a year ago, due primarily to Geauga Lake's operating loss of $4.5 million. On a same-park basis, operating income in the quarter decreased only slightly to $27.4 million.In the 2004 second quarter, the partnership recognized a non-cash credit of $1.6 million for the change in fair value of two interest rate swap agreements during the period, compared with a credit of $469,000 in the same period a year ago. After this credit, and interest expense and provision for taxes, both of which were comparable between years, net income for the quarter was $13.2 million, or 25 cents per diluted limited partner unit, compared to net income of $16.7 million, or 33 cents per unit, a year ago. Excluding the impact of Geauga Lake, net income in the quarter would have increased $2.3 million over the prior year to $19 million, or 37 cents per unit."First half net revenues were up 1% from last year, on a 2% increase in average in-park guest per capita spending, offset somewhat by a slight decrease in combined attendance and a 2% decrease in out-of-park revenues, Kinzel notes. "Excluding the contribution of Geauga Lake, net revenues in the six-month period decreased 3% to $161.3 million, on a 6% decrease in combined attendance and a 3% increase in average in-park guest per capita spending. Over this same period, however, we've done a good job of controlling our cash operating costs and expenses, which decreased 3% from a year ago to $137.9 million on a same-park basis."Operating results have begun to improve in recent weeks, Kinzel adds. For the month of July, combined park attendance, including Geauga Lake, increased 5% over last year, average in-park guest per capita spending increased 4%, and out-of-park revenues increased 7%. Excluding the impact of Geauga Lake, combined attendance in July was down 2% between years, average in-park guest per capita spending was up 4%, and out-of-park revenues were up 5%.Through the end of July, combined attendance at the partnership's 12 properties was up 4% from 2003, average in-park guest per capita spending was up 3%, and out-of-park revenues were up 2%. Excluding results from Geauga Lake, combined attendance through the first seven months of the year was down 2%, while average in-park guest per capita spending and out-of-park revenues were up 3% and 1%, respectively."Although we have not met all of our park-level objectives, we remain encouraged by the positive trends in in-park guest per capita spending and out-of-park revenues across our properties," Kinzel says. "With almost half of our budgeted attendance still ahead of us, as well as the late timing of the 2004 operating schedule, which will provide additional operating days in the third quarter, we are hopeful that we can regain some of our attendance shortfalls. At this time, based on the slow start at Geauga Lake, as well as preliminary July results, we now expect to generate full-year revenues of $540 million to $560 million."Virtually all of Cedar Fair's revenues from its seasonal amusement parks, water parks, and other seasonal resort facilities 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. Only Knott's Berry Farm is open year-round, but it also operates at its highest level of attendance in the third quarter of the year.Cedar Fair's seven amusement parks are Cedar Point, Sandusky; Knott's Berry Farm, Buena Park, Calif.; Dorney Park & Wildwater Kingdom near Allentown, Pa.; Geauga Lake, near Cleveland; Valleyfair near Minneapolis/St. Paul; Worlds of Fun, Kansas City, Mo.; and Michigan's Adventure near Muskegon. The partnership's water parks are located near San Diego and in Palm Springs, Calif., and adjacent to Cedar Point, Knott's Berry Farm and Worlds of Fun. Cedar Fair also operates Camp Snoopy at the Mall of America in Bloomington, Minn., under a management contract.Visit Cedar Fair: www.cedarfair.com"