Posted Tuesday, July 31, 2007 9:40 AM | Contributed by Jeff
Operations, including the acquired parks, generated revenues of $274.0 million in the second quarter and net income of $5.5 million, or $0.10 per diluted limited partner unit. For the same period last year, which does not include the acquired parks, the company reported net income of $11.1 million, or $0.20 per diluted limited partner unit, on revenues of $145.4 million.
Consolidated adjusted EBITDA for the quarter, which management believes is a meaningful measure of the company’s park-level operating results increased $47.7 million to $85.8 million from $38.1 million for the same period a year ago. See the attached table for a reconciliation of adjusted EBITDA to net income.
Consolidated operating income for the second quarter was $40.2 million compared with $19.9 million in 2006. Operating costs were $188.2 million versus $107.3 million in the prior year, while interest expense was $36.2 million, up from $8.0 million last year. The increased interest expense primarily reflects increased borrowings to fund the Paramount Parks acquisition and the refinancing of existing debt at the time.
Excluding effects of the acquisition and corporate costs, Cedar Fair’s second-quarter results on a same-park basis improved from the same period a year ago. For the second quarter, same-park net revenues increased 1%, or $1.2 million, to $146.6 million. This increase was attributable to a 5% increase in per capita spending across all of the parks, offset by a 3% decrease, or 105,000 visits, in attendance primarily in the southern and western regions. Out-of-park revenues, including resort hotels, decreased 3%, or $757,000, during the second quarter. This decrease was due to 15 fewer operating days, including seven fewer operating days at Cedar Point and five fewer operating days at Geauga Lake.
On a same-park basis, second quarter adjusted EBITDA increased 11%, or $4.4 million, to $44.3 million. Operating costs and expenses were 3% lower at $102.3 million versus $105.5 million a year ago. The decrease in operating costs is attributable to the fewer operating days compared with the prior-year period as well as the continued focus on bringing costs in line with attendance trends at our northern region parks, particulary at Geauga Lake.
Read the entire press release from Cedar Fair.
“July is the first month we have internal year-over-year comparisons to operations at all of our parks,” Kinzel said. “For the past four weeks, consolidated revenues were down 1%, or $3.1 million. This is a result of a 7% decrease in attendance, or 363,000 visits, due to the changes in our pricing methodology including the elimination of many complimentary tickets.
*** This post was edited by Mark Small 7/31/2007 12:39:34 PM ***
When CF picked up Geauga, they greatly reduced the amount of comps. And they sold less season passes.
Six Flags Ohio/WOA had been a baby sitting service for years.
GL attendence may not be as high as it once was, but I'll bet they make more at the gate than they have in the past.
So it worked. They mode more money. That's Good right? I thought that was their objective. And if they could increase attendance next year, they'd be in even better shape. Am I wrong?
Attendance is good to keep parks in business and make profits from food and tickets but don't over raise prices then people won't come. Lesser operating days effect it too because people like a long nice season.
The consequences are dramatic but maybe true. they can't make profits if there is rarely any people around. so they can't afford to pay for the ride costs and repair bills and can signal that they have to get rid of rides or even roller coasters if its bad enough.
Yep it's that bad for any park. If they do the right decisions next time CF or any company that = great business,not BAD business.
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