Posted Thursday, February 11, 2010 5:29 PM | Contributed by Jeff
Cedar Fair’s operations generated full-year net revenues of $916.1 and net income of $35.4 million, or $0.63 per diluted limited partner (LP) unit. In 2008, the Company achieved net revenues of $996.2 million and reported net income of $5.7 million, or $0.10 per diluted LP unit. Adjusted EBITDA, which management believes is a meaningful measure of the Company’s park-level operating results, decreased 15.7% to $299.9 million from $355.9 million a year ago. See the attached table for a reconciliation of adjusted EBITDA to net income.
Included in the 2009 adjusted EBITDA of $299.9 million is approximately $5.6 million of cash costs related to the proposed merger with affiliates of Apollo Global Management. In addition, the 2009 results reflect a $9.0 million settlement of a California class-action lawsuit and a $2.0 million settlement of a licensing dispute with Paramount Pictures. Excluding these non-recurring charges, our adjusted EBITDA for 2009 would have totaled $316.5 million, down $39.4 million, or 11%, from 2008.
The decrease in revenues and adjusted EBITDA is a result of a 1.6 million-visit, or 7%, decrease in attendance to 21.1 million guests in 2009. “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 decline 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,” said Dick Kinzel, Cedar Fair’s chairman, president and chief executive officer. “During this same period average in-park guest per capita spending decreased 1%, or $0.57. Out-of-park revenues, which represent the sale of hotel rooms, food, merchandise and other complementary activities located outside the park gates, decreased 7%, or $7.3 million, between years, due primarily to lower occupancy rates at most of our hotel properties.”
Read the entire press release from Cedar Fair.