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Cedar Fair 3rd-qtr profit rises from year-ago period hurt by hefty write-downs but sales fall
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SANDUSKY, Ohio - Amusement park operator Cedar Fair Entertainment Co. said Tuesday that profit rose in the third quarter from a year-ago period hurt by charges, but weaker-than-expected revenue sent the company's shares tumbling 27 percent.
Cedar Fair, based in Sandusky, Ohio, said sales dropped as attendance fell, primarily because companies, schools and other groups cut back their visits to amusement parks amid the difficult economy.
The company's third-quarter profit rose 18 percent to $107.6 million, or $1.92 per share, in the quarter that ended Sept. 27. That compares with profit of $91.5 million, or $1.65 per share, a year earlier, when the results included $6 million in asset writedowns.
Revenue slipped 4 percent to $519.9 million from $540.3 million as amusement park attendance fell, fewer people bought season passes and hotel revenue declined.
Analysts polled by Thomson Reuters had expected higher profit of $1.94 per share and sales of $533.5 million.
Shares of Cedar Fair closed Tuesday at $6.99, down 27 percent on the day on heavier than usual trading volume.
"As anticipated, 2009 has been a challenging year for us," said Dick Kinzel, Cedar Fair chairman, president and CEO, in a statement. "In spite of 25 additional operating days during the first nine months of the year, our parks have entertained 1.2 million less visitors compared to this time last year."
The company, which owns the Knott's Berry Farm and Great America parks in California and Dorney Park in Pennsylvania, among others, said its attendance figures also were hurt by fewer visits from season pass holders and cooler than normal weather in its northern and southern region parks.
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