Article published November 04, 2009
Cedar Point's owner likely to suspend dividend in '10
The company's third-quarter earnings report said revenue at its 11 amusement parks and six water parks nationwide fell, but profit rose 18 percent from a year ago to $107.6 million.
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CEDAR POINT
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BLADE STAFF
SANDUSKY - Cedar Fair LP, which owns Cedar Point and 10 other amusement parks and six water parks nationwide, reported Tuesday that it probably will suspend its dividend next year.
The announcement was in the Sandusky firm's third-quarter earnings report, which showed lower attendance and per-customer spending at its parks.
It said profit was $107.6 million, or $1.92 a partnership unit, up 18 percent from the same quarter of 2008, when it had a profit of $91.5 million, or $1.65 a unit.
The company said the latest quarter had 64 more operating days at its parks nationwide compared to a year ago. Still, its third-quarter revenues fell 4 percent to $520 million.
Its figures show that through 10 months this year, attendance at its properties dropped 6 percent to 20.6 million, and average in-park per-customer spending was down 1 percent to $39.65. Out-of-park revenue fell by $8 million to $94.5 million because of declines in occupancy in its hotels.
Dick Kinzel, chairman, president, and chief executive officer, said in a statement: "The decrease in attendance was the result of a sharp decline in group sales business, which continues to be negatively affected by the poor economy, and spending cuts at many businesses, schools, and organizations."Poor weather and fewer season-pass sales contributed to lower attendance, he said.
Mr. Kinzel also said he expects the company to suspend its cash distributions, or dividends, beginning in 2010. Instead, the firm will use cash to decrease debt. Cedar Fair previously announced a cash distribution of 25 cents a unit to be paid Nov. 16 to holders of record as of today.
The firm's stock fell 27 percent or $2.53 yesterday to close at $6.99.
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