Cedar Fair Announces 2013 First-Quarter Results; Anticipates Record-Setting Performance In 2013

 Cedar Fair Announces 2013 First-Quarter Results; Anticipates Record-Setting
                             Performance In 2013

PR Newswire

SANDUSKY, Ohio, May 8, 2013

SANDUSKY, Ohio, May 8, 2013 /PRNewswire/ --Cedar Fair Entertainment Company
(NYSE: FUN), a leader in regional amusement parks, water parks and active
entertainment, today announced results for the first quarter ended March 31,
2013. Historically, first quarter results represent less than 5% of the
Company's full-year revenues as the vast majority of its world-renowned parks
and facilities are closed during this quarter. As a result, the Company
typically operates at a loss during this period.

Highlights

  oFirst quarter net revenues increased to $41.8 million, up $13.6 million
    from the first quarter ended March 25, 2012.
  oSeason pass sales and hotel and group bookings experienced positive
    early-season trends.
  oOperating costs are in line with the Company's expectations.
  oQuarterly cash distribution of $0.625 per limited partner ("LP") unit
    declared payable June 17, 2013, consistent with the Company's annualized
    distribution rate of $2.50 per LP unit.
  oCompany expects full-year 2013 net revenues in the range of $1.090 billion
    to $1.115 billion and Adjusted EBITDA in the range of $400 million to $410
    million.

Commenting on the Company's first quarter results, Matt Ouimet, Cedar Fair's
president and chief executive officer said, "We are pleased with our solid
first-quarter net revenues and encouraged by the positive momentum in season
pass sales and hotel and group business bookings. While it is too early to
see definitive trends at this point in the year, we anticipate that 2013 will
mark our fourth consecutive year of record results. We expect our strong
capital plan, combined with the benefit of our 'Thrills Connect' marketing
campaign and new e-commerce platform, to be among the primary drivers for a
strong 2013."

First Quarter Results

Cedar Fair's net revenues increased to $41.8 million for the first quarter
ended March 31, 2013, up $13.6 million compared with $28.2 million in the
first quarter ended March 25, 2012. The increase was primarily due to the
strong attendance and in-park guest per capita spending at Knott's Berry Farm,
the Company's only year-round property. The improved results at Knott's Berry
Farm are attributable to recent investments the park has made over the past
year to revitalize the park and enhance the overall guest experience.

The 2013 first-quarter results also were positively impacted by an additional
21 operating days due to a combination of the fiscal first quarter ending
later than in the previous year and a shift in the Easter and Spring Break
holidays which occurred in the first quarter of 2013 compared with the second
quarter of 2012.

Operating costs and expenses for the 2013 first quarter were $108.1 million,
an increase of $10.6 million from the prior-year quarter, and were in line
with Company expectations. The increased costs were largely attributable to
the additional operating days in the first quarter of 2013 when compared with
the first quarter of 2012.

The net loss for the quarter totaled $109.1 million, or $1.95 per diluted LP
unit, compared with a net loss of $65.4 million, or $1.18 per diluted LP unit,
for the first quarter a year ago. The larger net loss for the period is
primarily due to a $34.6 million non-cash charge related to the early
extinguishment of debt, a $10.2 million unfavorable change in the net effect
of swapsand a $17.2 million unfavorable change in the unrealized/realized
foreign currency exchange between years.These losses were offset somewhat by
the increased first-quarter revenues.

Cash Flow and Liquidity Remain Strong

As of March 31, 2013, the Company had $630.0 million of variable-rate term
debt (before giving consideration to fixed-rate interest rate swaps), $901.3
million of fixed-rate debt, $96.0 million borrowed under its revolving credit
facilities and $10.0 million in cash on hand. The Company believes its credit
facilities and cash flows are sufficient to meet working capital needs, debt
service, planned capital expenditures and distributions for the foreseeable
future.

"As previously announced, we successfully completed a refinancing of our
existing senior secured credit facilities in the first quarter of 2013 with
new senior secured credit facilities, along with new senior unsecured notes,"
said Brian Witherow, Cedar Fair's executive vice president and chief financial
officer. "This refinancing not only enables us to take advantage of
historically low rates, but also significantly improves our financial
flexibility so that we are better positioned to capitalize on opportunities in
the future."

Taking into consideration the first quarter refinancing of its senior secured
credit facilities, the Company expects to pay cash interest costs of
approximately $100 million for fiscal 2013.

Distribution Declaration

The Company also announced today the declaration of a cash distribution of
$0.625 per LP unit. The distribution will be paid on June 17, 2013, to
unitholders of record as of June 5, 2013. This distribution reflects the
Company's strong performance and growth strategy and is consistent with its
targeted record annualized distribution rate of $2.50 per LP unit for 2013.

2013 Operating Season and Outlook

"Following the record year of 2012, we remain confident in our 2013 operating
plan and our long-term 'FUNforward' growth strategy," Ouimet said. "We expect
another record year in 2013 as our growth strategy positions us to maximize
value this year and beyond."

The Company currently anticipates net revenues for the full-year 2013 to be in
the range of $1.090 billion to $1.115 billion, and Adjusted EBITDA is
anticipated to be in the range of $400 million to $410 million.

"Our investment in world-class rides, family entertainment and premium guest
experiences will continue to be key drivers of our success," added Ouimet.
"GateKeeper, a new world-record-breaking wing coaster at Cedar Point, is set
to open this weekend and has already received a tremendous amount of
publicity. I assure you it is every bit as exciting to ride as we hoped it
would be and will be a strong contributor this year. We will continue to make
investments in each of our parks to ensure a 'best-day-of-summer' experience
for all of our guests. We believe we are well-positioned to reach our target
for Adjusted EBITDA of $450 million or more by 2016."

Restatement of Depreciation Expense and Loss on Asset Retirements in Prior
Periods

In its 2012 Form 10-K, the Company announced plans to move off the composite
depreciation method of accounting beginning in 2013. In the process of
changing accounting methods and responding to an open SEC comment letter, the
Company determined that its accounting treatment under the composite
depreciation method for the retirement of a ride at one of its parks in 2011
was in error. In particular, the discrete charge related to that retirement
(totaling $8.8 million on a pre-tax basis) should have been recorded to the
income statement in 2011 rather than being deferred and recorded in the
composite pool as was disclosed in the 2011 Form 10-K as originally filed. The
correction of this error results in adjustments to the financial statements
that willdecrease pre-tax earnings in 2011 by $8.8 million, increase pre-tax
earnings in 2012 by $1.0 million, and have an immaterial impact on the
comparative balance sheets. The resulting adjustments do not affect the
ongoing park operations of the Company or its historical or future cash flows.

Conference Call

The Company will host a conference call with analysts today, May 8, 2013, at
10:00 a.m. Eastern Time, which will be web cast live in "listen only" mode via
the Cedar Fair web site (www.cedarfair.com). It will also be available for
replay starting at approximately 1:00 p.m. ET, Wednesday, May 8, 2013, until
11:59 p.m. ET,Wednesday, May 22, 2013. In order to access the replay of the
earnings call, please dial 1-877-870-5176 followed by the access code 4611439.

About Cedar Fair

Cedar Fair is a publicly traded partnership headquartered in Sandusky, Ohio,
and one of the largest regional amusement-resort operators in the world. The
Company owns and operates 11 amusement parks, four outdoor water parks, one
indoor water park and five hotels. Its parks are located in Ohio, California,
North Carolina, South Carolina, Virginia, Pennsylvania, Minnesota, Missouri,
Michigan, and Toronto, Ontario. Cedar Fair also operates the Gilroy Gardens
Family Theme Park in California under a management contract. Cedar Fair's
flagship park, Cedar Point, has been consistently voted the "Best Amusement
Park in the World" in a prestigious annual poll conducted by Amusement Today
newspaper.

Forward-Looking Statements

Some of the statements contained in this news release constitute
"forward-looking statements" within the meaning of the safe harbor provisions
of the United States Private Securities Litigation Reform Act of 1995,
including statements as to the Company's expectations, beliefs and strategies
regarding the future and statements regarding the Company's intent to restate
certain previously-issued financial statements and the anticipated nature and
scope of those adjustments. These statements may involve risk and
uncertainties that could cause actual results to differ materially from those
described in such statements. Although the Company 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, adverse weather
conditions, competition for consumer leisure time and spending, unanticipated
construction delays and other factors discussed from time to time by the
Company in reports filed with the Securities and Exchange Commission (the
"SEC") could affect attendance at our parks and cause actual results to differ
materially from the Company's expectations. In addition, if additional issues
arise in the course of the Company's review of its accounting treatment with
respect to certain asset retirements, the nature and scope of expected
adjustments to previously-issued financial statements may change.
Additional information on risk factors that may affect the business and
financial results of the Company can be found in the Company's Annual Report
on Form 10-K and in the filings of the Company made from time to time with the
SEC. The Company undertakes no obligation to correct or update any
forward-looking statements, whether as a result of new information, future
events or otherwise.

 Contacts: Stacy Frole    (419) 627-2227
           Lisa Broussard (419) 609-5929



CEDAR FAIR, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)

(In thousands, except per unit amounts)
                        Three months ended           Twelve months ended
                        3/31/2013     3/25/2012      3/31/2013   3/25/2012
Net revenues:                         (As restated)              (As restated)
Admissions              $ 20,023      $  11,670      $ 620,422   $  597,100
Food, merchandise and   16,692        12,532         346,374     350,186
games
Accommodations and      5,084         3,996          115,259     82,515
other
                        41,799        28,198         1,082,055   1,029,801
Costs and expenses:
Cost of food,
merchandise and games   5,037         4,087          95,998      92,032
revenues
Operating expenses      76,657        71,285         456,775     437,008
Selling, general and    21,039        17,984         141,366     137,495
administrative
Depreciation and        4,786         4,079          127,013     125,892
amortization
(Gain) on sale of other —             —              (6,625)     —
assets
Loss on impairment /
retirement of fixed     600           92             30,844      11,251
assets, net
                        108,119       97,527         845,371     803,678
Operating income (Loss) (66,320)      (69,329)       236,684     226,123
Interest expense        25,763        26,803         109,579     142,876
Net effect of swaps     9,211         (970)          8,689       (15,976)
Loss on early debt      34,573        —              34,573      —
extinguishment
Unrealized/realized
foreign currency (gain) 8,958         (8,192)        8,152       8,605
loss
Other (income) expense  (40)          (16)           (92)        (126)
Income (loss) before    (144,785)     (86,954)       75,783      90,744
taxes
Provision (benefit) for (35,659)      (21,539)       17,638      5,937
taxes
Net income (loss)       (109,126)     (65,415)       58,145      84,807
Net income (loss)
allocated to general    (1)           (1)            1           1
partner
Net income (loss)
allocated to limited    $ (109,125)   $  (65,414)    $ 58,144    $  84,806
partners
Net income (loss)       $ (109,126)   $  (65,415)    $ 58,145    $  84,807
Other comprehensive
income (loss), (net of
tax):
Cumulative foreign
currency translation    301           (1,169)        1,839       1,050
adjustment
Unrealized income
(loss) on cash flow     8,885         339            8,685       (7,958)
hedging derivatives
Other comprehensive
income (loss), (net of  9,186         (830)          10,524      (6,908)
tax)
Total comprehensive     $ (99,940)    $  (66,245)    $ 68,669    $  77,899
income (loss)
Basic earnings per
limited partner unit:
Weighted average
limited partner units   55,854        55,378         55,694      55,353
outstanding
Net income (loss) per   $ (1.95)      $  (1.18)      $ 1.04      $  1.53
limited partner unit
Diluted earnings per
limited partner unit:
Weighted average
limited partner units   55,854        55,378         56,056      55,847
outstanding
Net income (loss) per   $ (1.95)      $  (1.18)      $ 1.04      $  1.52
limited partner unit



CEDAR FAIR, L.P.
UNAUDITED BALANCE SHEET DATA
FIRST QUARTER
(In thousands)                  3/31/2013      3/25/2012
                                               (As restated)
Cash and cash equivalents       $  10,038      $  7,319
Total assets                    $  2,015,656   $  2,085,504
Long-Term Debt, including current maturities:
Revolving credit loans          $  96,000      $  155,004
Term debt                       630,000        1,156,100
Notes                           901,255        400,373
                                $  1,627,255   $  1,711,477
Total partners' equity          $  22,526      $  49,265

This news release and prior releases are available on the Cedar Fair website
at www.cedarfair.com

###

SOURCE Cedar Fair Entertainment Company

Website: http://www.cedarfair.com
 
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