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.