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Net Revenues at Cedar Fair Total $23.2 Million for First Quarter
SANDUSKY, Ohio -- Cedar Fair L.P., a publicly traded partnership that owns and operates seven amusement parks and five water parks including Cedar Point and Geauga Lake, today announced net revenues of $23.2 million for the first quarter of 2004, up from $21.5 million in the first quarter of last year.First quarter operations do not include any results from Geauga Lake, which was acquired April 8.Dick Kinzel, chairman, president and chief executive officer, notes that 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 the park operates at its lowest level of attendance in the first quarter of the year. Cedar Fair's other first quarter revenues have historically been minimal.The current year increase in net revenues was due primarily to higher early-season attendance at Knott's Berry Farm compared to last year's first quarter, which was negatively impacted by poor weather. Operations at Knott's in the first quarter of 2004 were impacted by only six days of rain compared to nine in 2003, including five days on which the park was forced to close early.Operating results for the first quarter include normal off-season operating, maintenance and administrative expenses at the Partnership's seasonal amusement and water parks, and daily operations at Knott's Berry Farm. Excluding depreciation and other non-cash charges, total operating costs and expenses for the period increased 3% to $42.5 million, due in large part to the timing of advertising programs at Knott's Berry Farm. After depreciation and a $1.3 million non-cash charge for unit options, operating costs and expenses totaled $47.3 million for the quarter, compared to $45.8 million in 2003.In the 2004 first quarter, the partnership recognized a non-cash credit of $863,000 for the change in fair value of two interest rate swap agreements during the period, compared with an expense of $185,000 in the same period a year ago. After this credit, and interest expense and provision for taxes, both of which were down slightly between years, the Partnership's net loss for the period was $29.9 million, or 59 cents per diluted limited partner unit, compared with a net loss of $31.5 million, or 62 cents per unit, a year ago. "With our 2004 summer season about to begin, we are confident that the $27 million in capital we have invested in our parks, along with continued momentum from last year's capital programs and the recent acquisition of Geauga Lake, will position the Partnership for another successful year," Kinzel says. "Reservations look good at Cedar Point's resort properties, including the newly expanded Lighthouse Point luxury camping complex, while the buzz surrounding the park's Top Thrill Dragster roller coaster continues to be tremendous even in its second year."While the first quarter is not a meaningful part of our full-year financial performance, we are pleased with the level of public interest in our new attractions and accommodation facilities thus far," he continues. "We are also very pleased with the initial reaction of guests to Geauga Lake during its grand opening this past weekend."Commenting on the Partnership's long-term capital projects, Kinzel says, "Construction is progressing well on Cedar Point's new $22 million indoor water park, Castaway Bay, and Knott's Berry Farm's new $16 million inverted roller coaster, Silver Bullet. Both projects are on budget and are on schedule to open late in 2004."Cedar Fair's seven amusement parks are Cedar Point, Sandusky, Ohio; 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, California, 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 LLP: www.cedarfair.com"