|Peanuts gang – Image: Cedar Fair
|SANDUSKY, Ohio, USA — Cedar Fair (NYSE: FUN), a leader in regional amusement parks, water parks and active entertainment, announced record results for its fourth quarter and year ended December 31, 2010.
Cedar Fair’s operations generated full-year net revenues of $977.6 million and a net loss of $31.6 million, or $0.57 per diluted limited partner (LP) unit. In 2009, the Company achieved net revenues of $916.1 million and reported net income of $35.4 million, or $0.63 per diluted LP unit. Included in the 2010 results are non-cash charges of $62.8 million for the impairment/retirement of fixed assets and $35.3 million for the early extinguishment of debt. The 2009 results include a $23.1 million gain on sale related to the sales of surplus land.
Adjusted EBITDA, which management believes is a meaningful measure of the Company’s park-level operating results, increased 13.5% to a record $359.2 million from $316.5 million a year ago. At the end of the third quarter of 2010, the Company had anticipated Adjusted EBITDA for the full year to be in the range of $345 million to $355 million.
The Adjusted EBITDA margin increased 210 basis points to 36.7% from 34.6% in 2009. The increase in margin in 2010 was largely due to increased attendance which led to strong operating results during the peak summer months of July and August, as well as the ever-growing fall season, and continued disciplined cost containment throughout the year. See the attached table for a reconciliation of net income (loss) to Adjusted EBITDA.
The improvement in revenues and Adjusted EBITDA resulted from the record attendance of 22.8 million guests in 2010, an increase of 1.7 million, or 7.8%, from 2009.
“The attendance improvement was largely due to our aggressive marketing efforts to increase the number of season passes sold which, in turn, increased the number of season-pass visits, particularly at our parks in the southern and western regions. In addition, attendance in 2010 benefited from our marketing efforts to raise group sales business, and many of our parks saw the return of a number of group bookings that were lost during the economic downturn in 2009. Favorable weather conditions also helped boost attendance throughout much of the operating season,” said Dick Kinzel, president and chief executive officer. “During this same period, we were pleased that average in-park guest per capita spending decreased less than 1%, or $0.35, despite the fact that season-pass visitors typically spend less per visit. Meanwhile, out-of-park revenues increased 6.1%, or $6.2 million, due primarily to an increase in occupancy and average daily room rates at most of our hotel properties.”
Kinzel added, “While the economic recovery continues to be slow, we demonstrated the inherent competitive strength of our properties and attractions with record attendance in 2010, exceeding our previous record in 2008. Our ability to continue to deliver the highest standards of customer service, our ongoing strategic investments to improve our parks, and our employees, who are the best in the industry, have been collectively responsible for our success and will continue to make us a strong company for many years to come.”