NEWS: Cedar Fair cites declines in 2009

[jedimaster1227]

http://www.tradingmarkets.com/news/stock-alert/fun_cedar-fair-has-profit-of-35-4m-in-down-year-operating-expenses-attendance-decline-774102.html

 

Cedar Fair LP, which was hurt by declining attendance and fewer people buying food and souvenirs, yesterday reported a drop in revenues last year but a profit of $35.4 million.

 

The company, which owns Cedar Point, 10 other amusement parks, and six water parks, said its 2009 revenues were $916 million, down 8 percent from $996 million a year earlier. Its profit of 63 cents a share compared with a profit of 10 cents a share, or $5.7 million, a year ago.

 

The Sandusky company said its profit was largely because operating costs decreased by $24 million and because the firm gained $23 million from the sale of 87 acres of land in Canada in August.

 

Cedar Fair, which depends heavily on the May-through- September sales, experienced a 1.6 million drop in visits, about a 7 percent decrease in attendance, to 21.1 million guests in 2009.

 

In a statement, the firm said: "The decrease in attendance was primarily the result of a sharp decline in group sales business, which was negatively affected by the poor economy; a decrease in season pass visits due to a de-cline in season pass sales during the year, and poor weather, particularly cooler-than-normal temperatures throughout much of the season in both our northern and southern regions."

 

Average in-park per capita spending decreased 1 percent. Out-of-park revenues, which represent sales of hotel rooms, food, merchandise, and paid attractions outside the gates, fell 7 percent primarily because of lower occupancy rates at Cedar Fair hotels, the firm said.

 

For the fourth quarter, the firm reported a loss of $26.3 million, or 47 cents a share, compared with a loss of $56.7 million, or $1.02 a share, for the same period a year earlier. Its fourth quarter revenues were $105.6 million, down 11.5 percent from $119.3 million a year ago.

 

The firm's balance sheet was hit with three one-time charges totaling $16.6 million: $5.6 million for costs relating to its proposed purchase by Apollo Global Management LLC, the settling of a class-action lawsuit in California for $9 million, and the settling of a licensing dispute with Paramount Pictures for $2 million.

 

Cedar Fair said its debt at the end of 2009 was $1.63 billion, but that it was in compliance with its loan covenants. However, those loan restrictions do not permit it at this time to pay a dividend, which it suspended last year.

[palmerleeberry]

So sorry to hear the news about Cedar Fairs because I know that I visited many of their parks in 2009. Not to be tooting my own horn, but I went to:

 

KINGS DOMINION - 3 x's

 

CAROWINDS - 3 x's

 

KINGS ISLAND - 2 x's (first time I brought a friend with me)

 

CEDAR POINT - 2 x's (first time I brought that same friend with me)

 

And only been to DORNEY PARK, WORLDS OF FUN, and VALLEYFAIR once.

 

All these parks I visited because I had a reliable vehicle and a Cedar Fair Platinum Pass.

 

"After a long trip like that, not to mention a busy season last year, I definately do need this pillow."

[Invertalon]

It just makes me wonder what changes could happen if Kinzel was out of the company... Along with his closest managment. The company needs a fresh, new approach to make it work. The parks are great, they just need a way to run it, well, better.

[Skycoastin Steve]

Not a big surprise, how many park chains actually made a profit last year? Come to think of it, how many tourist locales nationwide made a profit? It's just not a spending priority for a lot of people right now because of our wonderfully tanking economy.