EX-20 2 0002.txt Cedar Fair, L.P. Press Release One Cedar Point Drive Sandusky, Ohio 44870-5259 To Our Unitholders: The following press release, which was distributed to the financial news media on August 4, 2000, is also being sent directly to our unitholders so that you may have the benefit of the complete text. Richard L. Kinzel, President and Chief Executive Officer Cedar Fair, L.P. Announces Increased Revenues and EBITDA for the Second Quarter of 2000 SANDUSKY, OHIO, August 4, 2000 -- Cedar Fair, L.P. (NYSE: FUN), a publicly traded partnership which owns and operates five amusement parks and four water parks, today announced a 4% increase in revenues and a 1% increase in earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2000. Net revenues for the quarter ended June 25, 2000, increased 4% to $129.5 million from $124.2 million in 1999, and EBITDA increased 1% to $40.6 million from $40.3 million for the same period last year. Operating income for the quarter increased slightly to $28.8 million from $28.3 million, and net income, after a significant rise in interest expense, decreased 3% to $18.6 million, or $.36 per limited partner unit, from $19.2 million, or $.37 per unit, in 1999. Richard L. Kinzel, president and chief executive officer, explained that the increase in interest expense for the quarter was primarily the result of higher interest rates, as well as increased borrowings from the 1999 acquisitions of a hotel and water park in California and significant capital expenditures at several parks for the 2000 season. All other costs as a percent of revenues have remained relatively level between years. "At our five amusement parks, we achieved a 5% increase in in-park guest per capita spending for the quarter, offset slightly by a 1% decrease in combined early-season attendance," said Kinzel. "Meanwhile, early-season water park attendance was up strongly due to our two new California water parks." Kinzel continued by explaining that early-season attendance at the Partnership's four seasonal amusement parks has been below expectations due in part to cool and rainy weather, and that attendance at these parks has generally remained below expected levels as the season has progressed. "Guest response to the new rides and attractions we introduced for the 2000 season has been excellent, including Millennium Force at Cedar Point which has received the highest guest-satisfaction ratings of any new ride we have ever introduced," he said. "However, we have not yet seen the expected impact on attendance." "On a positive note," continued Kinzel, "guest per capita spending at each of our parks has been very strong, up 6% through the first six months of the year, and attendance at Knott's Berry Farm is meeting our expectations. In addition, we are pleased with our two new water parks in California, which are being received very well by their local markets." Kinzel concluded by noting that virtually all of Cedar Fair's revenues from its four seasonal amusement parks, as well as its four water parks, are realized during a 130-day operating period beginning in early May, with the major portion concentrated in the peak vacation months of July and August. The Partnership's fifth park, Knott's Berry Farm, is open year-round but also operates at its highest level of attendance in the third quarter of the year. Cedar Fair's five 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; and Worlds of Fun/Oceans of Fun, located in Kansas City, Missouri. The Partnership's water parks are located in Sandusky, Ohio; Kansas City, Missouri; Chula Vista, California, near San Diego; and Buena Park, California. Cedar Fair also operates Knott's 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. SUMMARY STATEMENTS OF OPERATIONS (unaudited)
Three Months Six Months Ended Twelve Months Ended Ended (In thousands 06/25/00 06/27/99 06/25/00 06/27/99 06/25/00 06/27/99 except per unit) Net Revenues $129,504 $124,203 $150,052 $147,400 $440,653 $428,344 Operating costs 88,893 83,896 127,876 121,262 292,778 279,746 and expenses Depreciation and 11,831 12,048 15,080 15,337 34,825 34,373 amortization Operating income 28,780 28,259 7,096 10,801 113,050 114,225 Interest expense 5,710 4,486 9,810 8,019 17,162 14,597 Provision for taxe 4,427 4,534 5,195 5,374 15,401 15,065 Net income $18,643 $19,239 $(7,909) $(2,592) $80,487 $84,563 Per limited partner unit: Net income - $.36 $.37 $(.15) $(.05) $1.53 $1.61 diluted Cash $.375 $.35 $.75 $.70 $1.45 $1.35 distributions declared Weighted average units outstanding - 52,053 52,381 52,090 52,383 52,250 52,375 diluted
Mr. Kinzel will host a conference call with analysts at 11:00 a.m. Eastern Time on Friday, August 4, 2000, which will be webcast live in "listen-only" mode via the Cedar Fair web site (www.cedarfair.com). It will also be available for replay starting at 2:00 p.m. ET, Friday, August 4, 2000 until midnight ET, Friday, August 11, 2000. To access the replay of the earnings call please dial 888-266-2081 followed by the access code 4444301. This press release and prior releases are available on the Cedar Fair, L.P. website at www.cedarfair.com.