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Cedar Fair today announced results for its fourth quarter and year ended December 31, 2007. The 2006 comparable figures include the results of the Paramount Parks since their acquisition from CBS Corporation on June 30, 2006.
Cedar Fair’s combined operations generated full-year revenues of $987.0 million, with income before taxes of $9.7 million and a net loss of $4.5 million, or $0.08 per diluted limited-partner (LP) unit. In 2006, combined revenues for the company were $831.4 million, with income before taxes of $126.6 million and net income of $87.5 million, or $1.59 per diluted LP unit. Included in the 2007 results is a non-cash impairment charge of $54.9 million, or $1.00 per diluted LP unit, relating to the Geauga Lake restructuring.
Adjusted EBITDA, which management believes is a meaningful measure of the company’s park-level operating results, increased 9.8% to $340.7 million from $310.3 million a year ago. See the attached table for a reconciliation of adjusted EBITDA to net income.
For comparison, excluding the effects of the acquisition and corporate costs, Cedar Fair’s 2007 full-year results generated adjusted EBITDA of $224.1 million compared to $203.6 million in 2006, on a same-park basis. The increase in adjusted EBITDA is the result of a $19.1 million, or 3%, increase in revenues to $584.2 million, and a $1.5 million decrease in cash operating costs to $360.1 million.
The increase in revenues is the result of a 5% increase in average in-park guest per capita spending and a 1%, or $1.3 million, increase in out-of-park revenues. These gains were offset slightly by a 2% decrease in combined, same-park attendance. “Our Northern Region produced solid increases in guest per capita spending and out-of-park revenues, largely due to the successful introduction of world-class roller coasters at both Cedar Point and Valleyfair,” said Kinzel. “Attendance at these two parks, as well as Dorney Park, was also up between years, which more than offset attendance shortfalls at our other parks in the region. Revenues on a same-park basis in our Western Region were also up from a year ago, the result of solid increases in guest per capita spending levels at those parks.”
The decrease in cash operating costs between years was primarily attributable to reduced cash operating costs at Geauga Lake in 2007, offset somewhat by higher cash operating costs at Knott’s Berry Farm.
Read the press release from Cedar Fair.