Posted Thursday, November 6, 2008 9:25 AM | Contributed by Jeff
Net revenues for the nine months ended September 28, 2008, increased $5.5 million, to $877.0 million from $871.5 million a year ago. Net income for the first nine months of 2008 increased $58.0 million to $62.5 million, or $1.12 per diluted limited partner unit, versus net income of $4.5 million, or $0.08 per diluted limited partner unit, for the same period in 2007.
Adjusted EBITDA for the nine months ended September 28, 2008, which management believes is a meaningful measure of the company’s park-level operating results, increased $3.6 million to $334.6 million from $331.0 million for the same period a year ago. See the attached table for a reconciliation of adjusted EBITDA to net income.
“We are pleased with the performance of our parks during the peak vacation months of July and August,” said Dick Kinzel, Cedar Fair chairman, president and chief executive officer. “Through the end of the third quarter our parks entertained a record 20.0 million visitors, up 2% (402,000 visits) from this time last year. During this same period average in-park guest per capita spending was down less than one percent to $40.28 and out-of-park revenues were comparable to last year at $94.0 million.
Read the press release from Cedar Fair.
^And hurt business at the TGI Fridays, Famous Daves and Bayharbor that they own? I dont think so.
CP will always have reentry.
With theway things are going, I imagine CF will do something to increase it's bottom line.
Perhaps they should offer a "All you can eat by Yourself" pass. This pass, sold for the meager amount of $25.00, will allow the pass holder to bring food into the park for himself and up to 3 guests! Think of the savings!
Johnny Rockets, food for four, 48 plus tip.! With this new pass, you can save 23 bucks!!!!
well, maybe not...
Apparently Wall Street is as unimpressed as I am, because they're getting hammered relative to the rest of the market.
Well, a 5.5 million increase on over 800 million in revenue is less than 1 percent. OK, they didn't lose in an industry many thought would be hard hit by current economic conditions. But Wall Street doesn't like to hear flat revenues anytime.
Jeff, you would probably know this better than I-- what percentage of the company's revenue would you say is made up of in park food/drink concessions? I'd guess in the neighborhood of 15 percent, give or take a few percent. I'm thinking improving the quality/value of the food service would do more to increase revenues than relying on other gimmicks. Sure it would cost a few bucks, but so would anything else they'd try.
Well Im defiantly a part of that per cap drop this year. I visited as much, but instead of always hitting the TGI Fridays, and getting a snack (Ice Cream or Fries depending on my mood) virtually everytime I went there. For about 2/3rds of my trips I packed a lunch, and I was at a park 3 times and left without purchasing anything.
The way I see it, Im willing to spend $20-25 on food when I go, but if I cant buy one meal and one snack for that price Im going to start finding ways to limit my costs. Basically, because of the price increase this year the park went from getting $20-25 per trip off of me to about $10 on food from me.
No idea what percentage of revenue is food, but I absolutely have to figure it's very significant.
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