From The Vault: Cedar Fair's 2008 Annual Report Letter From the President

© Cedar Fair

I came across Cedar Fair's 2008 annual report while cleaning, which contained this Letter From the President that recaps the year.  I don't think these letters were done after this year, as a recession raged on and Cedar Fair was trying to be acquired by Apollo Management.  Prior years, however, these annual reports were slick, colorful and nice collectors items.

Anyway, this one peaked my interested as the company was dealing with a recession and uncertain future at the time... feels familiar to today.  They actually ended up putting Valleyfair, Worlds of Fun and California's Great America up for sale, as they were saddled with the debt of the Paramount Park purchase in very tough economic, specifically banking, times.

© Cedar Fair

Still, during 2008 Cedar Fair managed to squeak out some increases in net revenues and adjusted EBITDA.  Technically the worst of the recession wasn't over at this point though and indeed, the company saw both those statistics decline in 2009.

© Cedar Fair

Back during this tough economic period Cedar Fair had to cut their distribution, almost by 50%, still less dramatic than having to stop it totally like they have currently.  In addition to listing the three aforementioned parks as for sale, they also were trying to sell excess land by Canada's Wonderland (which I think they did) and also Geauga Lake.

This section of the letter also mentions that despite bad economic conditions, people still visited the parks because they "offer a unique entertainment experience that has real value for people."  Let's pray that remains true once we get through this pandemic.

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The Letter from the President always touted the company's achievements in the season that had ended, and also the one that was ahead of them.  In 2008 they had seen great success with Behemoth at Canada's Wonderland, a strong year at Cedar Point, and a record year for Michigan's Adventure with the opening of Thunderhawk, a coaster moved from Geauga Lake.

The 2009 season was another exciting one for Cedar Fair - despite challenging times they were building three new coasters that year.  Diamondback at Kings Island, Prowler at Worlds of Fun, and the Carolina Cobra at Carowinds (another ride moved from Geauga Lake).  Those coasters and other additions at the various parks meant a $62 million investment for the year.

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The last part of the letter talked of the future of Cedar Fair.  At the time reducing their debt levels was key during the "unprecedented times" (isn't that also familiar?) they were in.  As we well know, the company did indeed weather the recession and continue to grow in the decade after it.  Sure, there were some steps backward, but those only led to greater steps forward in the end.  Hopefully history can repeat itself again in that regard.

© Cedar Fair

Finally, just for fun here is the 11-year financial data that was usually included in the annual report.  It's interesting to see how dramatically Cedar Fair changed from 2005 to 2006, when the Paramount Park purchase was completed!