Darkbeer
02-06-2003, 04:57 PM
Cedar Fair, L.P. Press Release
CEDAR FAIR, L.P. REPORTS IMPROVED RESULTS FOR 2002 AND OUTLOOK FOR 2003
SANDUSKY, OHIO, February 6, 2003-- Cedar Fair, L.P. (NYSE: FUN), a publicly traded partnership which owns and operates six amusement parks and five water parks, today announced results for its fourth quarter and full year ended December 31, 2002.
For the quarter, net revenues increased 20% to $57.8 million from $48.0 million, due to strong attendance and guest per capita spending at Knott’s Berry Farm during the period, as well as successful Halloween promotions at several seasonal parks. For the quarter, attendance and guest per capita spending at Knott’s were up 8% and 6%, respectively, while combined October weekend attendance at the seasonal parks improved significantly as well.
For the year, the Partnership’s consolidated net revenues increased 5% to a record $502.9 million from $477.3 million in 2001, on a 4% increase in combined attendance, a 9% increase in out-of-park revenues, including resort hotels, and a slight increase in combined in-park guest per capita spending.
Cash operating costs and expenses for the year increased 2.5% to $332.7 million, due in part to the acquisitions of Michigan’s Adventure and Knott’s Soak City-Palm Springs in May 2001. After non-cash accounting charges for depreciation, unit options and asset retirements, operating income increased 23% to $121.2 million from $98.6 million a year ago.
At yearend, the Partnership reclassified a $7.6 million non-cash item previously recorded in other comprehensive income into other expense in the income statement. This amount is related to the total change in fair value of two of its interest rate swap option agreements that could not be treated as effective hedges under the applicable accounting rules. The total amount recorded as other expense during the year will reverse into income in 2003 and 2004 as the hedges continue to serve the purpose of leveling cash interest costs as intended. Although the impact of the charge in the first three quarters was not classified in expense because it was not material, the Partnership has elected to adjust its 2002 quarterly results in order to more clearly reflect the timing of the change in fair value of the swap options in earnings during the year. As such, the Partnership recorded adjustments to other expense of $1.5 million in the first quarter, increasing the net loss for the period to $34.0 million, or $0.66 per diluted limited partner unit; $1.9 million in the second quarter, reducing net income for the period to $18.8 million, or $0.37 per unit; and $3.4 million in the third quarter, reducing net income for the period to $99.7 million, or $1.94 per unit. In the fourth quarter, the Partnership recorded an $800,000 charge related to the change in fair value of the two swap options during that period.
After the $7.6 million charge, and interest expense and provision for taxes, both of which were comparable between years, net income for the year increased to $71.4 million, or $1.39 per limited partner unit, from $57.9 million, or $1.13 per unit, in 2001.
The Partnership’s management believes adjusted EBITDA, which represents earnings before interest, taxes, depreciation and other non-cash charges, is a very meaningful measure of the company’s operating results and its ability to generate cash flow for distribution to unitholders. For the year, adjusted EBITDA increased 11% to $170.1 million from $152.7 million in 2001.
“We are very pleased with the record results achieved in 2002,” said Dick Kinzel, president and chief executive officer. “For the year, combined attendance at our 11 properties increased 4% from last year to a record 12.4 million guests, boosted by the successful capital programs at both Cedar Point and Knott’s Berry Farm and another record year at Dorney Park. Meanwhile, average in-park guest per capita spending increased to $34.50 from $34.41 a year ago.”
Looking ahead to the 2003 season, Kinzel reported that the Partnership is investing $48 million in capital improvements at its eleven properties. The major projects include the introduction of Cedar Point’s 420-foot-tall Top Thrill Dragster, which will be the world’s tallest and fastest roller coaster, and the addition of a double-impulse roller coaster, called Steel Venom, at Valleyfair. “Our capital projects are all proceeding on schedule and on budget, and should be ready for the 2003 season,” he said.
Commenting on expectations for the upcoming season, Kinzel added, “Given the continued uncertainties surrounding the economy over the next six to twelve months, we remain cautiously optimistic that our capital investments and business plans will position the Partnership for an exciting and successful year in 2003. For the year, we are planning for 3-5% internal growth in net revenues, driven primarily by increases in attendance at both Cedar Point and Valleyfair, and improvements in guest per capita spending across all eleven properties. Based on these revenue expectations and continued disciplined expense control, we anticipate being able to improve full-year EBITDA over last year’s level, which should allow us to generate continued growth in our cash distribution rate.”
Cedar Fair’s six amusement parks are Cedar Point, located on Lake Erie between Cleveland and Toledo; Knott’s Berry Farm near Los Angeles in Buena Park, California; Dorney Park & Wildwater Kingdom near Allentown, Pennsylvania; Valleyfair near Minneapolis/St. Paul; Worlds of Fun, located in Kansas City, Missouri; and Michigan’s Adventure near Muskegon, Michigan. The Partnership’s water parks are located near San Diego and in Palm Springs, California, and adjacent to Cedar Point, Knott’s Berry Farm and Worlds of Fun. Cedar Fair also operates Camp Snoopy at the Mall of America in Bloomington, Minnesota under a management contract.
The information contained in this news release, other than historical information, consists of forward-looking statements. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although the Partnership believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including general economic conditions, competition for consumer spending, adverse weather conditions, unanticipated construction delays, and other factors could cause actual results to differ materially from the Partnership’s expectations.
CEDAR FAIR, L.P. REPORTS IMPROVED RESULTS FOR 2002 AND OUTLOOK FOR 2003
SANDUSKY, OHIO, February 6, 2003-- Cedar Fair, L.P. (NYSE: FUN), a publicly traded partnership which owns and operates six amusement parks and five water parks, today announced results for its fourth quarter and full year ended December 31, 2002.
For the quarter, net revenues increased 20% to $57.8 million from $48.0 million, due to strong attendance and guest per capita spending at Knott’s Berry Farm during the period, as well as successful Halloween promotions at several seasonal parks. For the quarter, attendance and guest per capita spending at Knott’s were up 8% and 6%, respectively, while combined October weekend attendance at the seasonal parks improved significantly as well.
For the year, the Partnership’s consolidated net revenues increased 5% to a record $502.9 million from $477.3 million in 2001, on a 4% increase in combined attendance, a 9% increase in out-of-park revenues, including resort hotels, and a slight increase in combined in-park guest per capita spending.
Cash operating costs and expenses for the year increased 2.5% to $332.7 million, due in part to the acquisitions of Michigan’s Adventure and Knott’s Soak City-Palm Springs in May 2001. After non-cash accounting charges for depreciation, unit options and asset retirements, operating income increased 23% to $121.2 million from $98.6 million a year ago.
At yearend, the Partnership reclassified a $7.6 million non-cash item previously recorded in other comprehensive income into other expense in the income statement. This amount is related to the total change in fair value of two of its interest rate swap option agreements that could not be treated as effective hedges under the applicable accounting rules. The total amount recorded as other expense during the year will reverse into income in 2003 and 2004 as the hedges continue to serve the purpose of leveling cash interest costs as intended. Although the impact of the charge in the first three quarters was not classified in expense because it was not material, the Partnership has elected to adjust its 2002 quarterly results in order to more clearly reflect the timing of the change in fair value of the swap options in earnings during the year. As such, the Partnership recorded adjustments to other expense of $1.5 million in the first quarter, increasing the net loss for the period to $34.0 million, or $0.66 per diluted limited partner unit; $1.9 million in the second quarter, reducing net income for the period to $18.8 million, or $0.37 per unit; and $3.4 million in the third quarter, reducing net income for the period to $99.7 million, or $1.94 per unit. In the fourth quarter, the Partnership recorded an $800,000 charge related to the change in fair value of the two swap options during that period.
After the $7.6 million charge, and interest expense and provision for taxes, both of which were comparable between years, net income for the year increased to $71.4 million, or $1.39 per limited partner unit, from $57.9 million, or $1.13 per unit, in 2001.
The Partnership’s management believes adjusted EBITDA, which represents earnings before interest, taxes, depreciation and other non-cash charges, is a very meaningful measure of the company’s operating results and its ability to generate cash flow for distribution to unitholders. For the year, adjusted EBITDA increased 11% to $170.1 million from $152.7 million in 2001.
“We are very pleased with the record results achieved in 2002,” said Dick Kinzel, president and chief executive officer. “For the year, combined attendance at our 11 properties increased 4% from last year to a record 12.4 million guests, boosted by the successful capital programs at both Cedar Point and Knott’s Berry Farm and another record year at Dorney Park. Meanwhile, average in-park guest per capita spending increased to $34.50 from $34.41 a year ago.”
Looking ahead to the 2003 season, Kinzel reported that the Partnership is investing $48 million in capital improvements at its eleven properties. The major projects include the introduction of Cedar Point’s 420-foot-tall Top Thrill Dragster, which will be the world’s tallest and fastest roller coaster, and the addition of a double-impulse roller coaster, called Steel Venom, at Valleyfair. “Our capital projects are all proceeding on schedule and on budget, and should be ready for the 2003 season,” he said.
Commenting on expectations for the upcoming season, Kinzel added, “Given the continued uncertainties surrounding the economy over the next six to twelve months, we remain cautiously optimistic that our capital investments and business plans will position the Partnership for an exciting and successful year in 2003. For the year, we are planning for 3-5% internal growth in net revenues, driven primarily by increases in attendance at both Cedar Point and Valleyfair, and improvements in guest per capita spending across all eleven properties. Based on these revenue expectations and continued disciplined expense control, we anticipate being able to improve full-year EBITDA over last year’s level, which should allow us to generate continued growth in our cash distribution rate.”
Cedar Fair’s six amusement parks are Cedar Point, located on Lake Erie between Cleveland and Toledo; Knott’s Berry Farm near Los Angeles in Buena Park, California; Dorney Park & Wildwater Kingdom near Allentown, Pennsylvania; Valleyfair near Minneapolis/St. Paul; Worlds of Fun, located in Kansas City, Missouri; and Michigan’s Adventure near Muskegon, Michigan. The Partnership’s water parks are located near San Diego and in Palm Springs, California, and adjacent to Cedar Point, Knott’s Berry Farm and Worlds of Fun. Cedar Fair also operates Camp Snoopy at the Mall of America in Bloomington, Minnesota under a management contract.
The information contained in this news release, other than historical information, consists of forward-looking statements. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although the Partnership believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including general economic conditions, competition for consumer spending, adverse weather conditions, unanticipated construction delays, and other factors could cause actual results to differ materially from the Partnership’s expectations.