Cedar Fair Announces Sale of Canadian Land
23 July 2009 - 10:43PM
PR Newswire (US)
-- Discusses attendance and revenue trends through first half of
the operating season SANDUSKY, Ohio, July 23 /PRNewswire-FirstCall/
-- Cedar Fair Entertainment Company (NYSE:FUN), a leader in
regional amusement parks, water parks and active entertainment,
today announced that it has finalized an agreement to sell its
undeveloped land adjacent to Canada's Wonderland near Toronto. "I
am pleased to say that all conditions have been met and we are now
moving forward to complete the sale of 87 acres of surplus land
near Toronto to the Vaughan Health Campus of Care," said Dick
Kinzel, Cedar Fair's chairman, president and chief executive
officer. "The sale of this land is another step in our commitment
to reduce our debt and strengthen our financial position for the
long term." The Company anticipates the transaction will close in
the third quarter and the net proceeds of approximately $50 million
will be used entirely to reduce its term debt. Further details
regarding this transaction were not disclosed. The Company also
updated results through Sunday, July 19, 2009, noting preliminary
revenues were $452.6 million, down approximately $62.3 million, or
12%, when compared with the same period a year ago. The lower
revenues were a result of a decrease in attendance of approximately
1.2 million visits, or 11%, to 10.2 million visits and a decrease
in average in-park guest per capita spending by approximately 2% to
$39.52. Out-of-park revenues, which includes resort hotels, through
July 19th decreased to $50.0 million from $56.2 million for the
same period a year ago. "The decrease in attendance and revenues is
due in part to fewer operating days year to date, and the closing
of Star Trek: The Experience in Las Vegas in late 2008, as well as
unusually poor weather conditions at several of our parks during
the months of May and June and softness in the regional economies
in which we operate," said Kinzel. "We anticipated this would be a
challenging year for our operations when compared with our
record-breaking results in 2008. Since the July 4th 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." It is important to note
the Company's 2009 operating calendar had 39 fewer operating days
during the first half of the season when compared with the same
period a year ago. This will reverse itself during the last half of
the operating season as the Company adds an additional 70 operating
days, for a total of 31 additional operating days in 2009 when
compared with 2008. "As we enter the second half of our operating
season, I am hopeful the special events and promotions we have in
place will continue to attract guests to our parks," continued
Kinzel. "These include special events honoring members of our armed
forces and public safety employees, 'Family 4-pack' ticket
promotions, 2-for-1 starlight admissions to Cedar Point if you stay
at one of our four hotels located on the property, and
all-you-can-eat buffets. We have positioned ourselves to be the
affordable alternative to a week-long family vacation and are
hopeful value-conscious families who are choosing to stay closer to
home this summer will take advantage of these great offerings. "We
continue to focus heavily on controlling our operating costs,"
added Kinzel. "In this economic environment we need to remain
vigilant in actively managing our costs to help offset the impact
of lower early-season revenues. I believe our management team and
employees have been successful in doing so and these cost savings
have helped to somewhat offset the early-season revenue
shortfalls." Kinzel concluded by noting that virtually all of Cedar
Fair's revenues from its seasonal amusement parks and water parks
are realized during a 130 to 140-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 and Castaway Bay
are open year-round, and each operates at its highest level of
attendance in the third quarter of the year. The Company will host
a conference call with analysts to discuss its second quarter
results on Tuesday, August 4, 2009 at 10:00 a.m. Eastern Time,
which will be web cast live in "listen only" mode via the Cedar
Fair web site (http://www.cedarfair.com/). It will also be
available for replay starting at approximately 1:00 p.m. ET,
Tuesday, August 4, 2009, until 11:59 p.m. ET, Tuesday, August 18,
2009. In order to access the replay of the earnings call, please
dial 1-800-406-7325 followed by the access code 4116678. Cedar Fair
is a publicly traded partnership headquartered in Sandusky, Ohio,
and one of the largest regional amusement-resort operators in the
world. The Company owns and operates 11 amusement parks, six
outdoor water parks, one indoor water park and five hotels.
Amusement parks in the company's northern region include two in
Ohio: Cedar Point, consistently voted "Best Amusement Park in the
World" in Amusement Today polls and Kings Island; as well as
Canada's Wonderland, near Toronto; Dorney Park, PA; Valleyfair, MN;
and Michigan's Adventure, MI. In the southern region are Kings
Dominion, VA; Carowinds, NC; and Worlds of Fun, MO. Western parks
in California include: Knott's Berry Farm; California's Great
America; and Gilroy Gardens, which is managed under contract. Some
of the statements contained in this news release constitute
forward-looking statements. These statements may involve risk and
uncertainties that could cause actual results to differ materially
from those described in such statements. Although the Company
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
leisure time and spending, adverse weather conditions,
unanticipated construction delays and other factors could affect
attendance at our parks and cause actual results to differ
materially from the Company's expectations. This press release and
prior press releases are available online at
http://www.cedarfair.com/. Contact: Stacy Frole (419) 627-2227
DATASOURCE: Cedar Fair Entertainment Company CONTACT: Stacy Frole
of Cedar Fair, +1-419-627-2227 Web Site: http://www.cedarfair.com/
Copyright