Cedar Fair cuts costs

SANDUSKY — Cedar Fair, Cedar Point's parent company, outlined the cost-saving measures it took in response to the coronavirus pandemic. The new COVID-19 strain of coronavirus forced the Sandusky-based entertainment company to close its year-round amusement parks and delay the opening of its seasonal ones, including Cedar Point. "As we work to ensure the safety and well-being of our employees, guests and business partners from the effects of COVID-19, it's important to also embrace measures that will ensure our financial flexibility through this difficult time," company CEO and president Richard Zimmerman said. "After social distancing recommendations by the authorities are lifted, we look forward to opening our parks as soon as reasonably possible." But the uncertainty of when parks will open led Cedar Fair to make season passes for the 2020 season valid for the 2021 season as well. Cutting costs The company made the following actions to reduce operating expenses since it closed its parks: • Eliminated almost all of its seasonal and part-time labor costs until parks prepare to open • Suspended advertising and marketing expenses • Reduced general and administrative expenses • Reduced CEO's base salary by 40 percent and other executives' salaries by 25 percent, effective April 27 • Deferred base salaries for other employees by 25 percent • Reduced full-time hourly employees to 30 hours per week • Suspended cash retainer fees for its board of directors Zimmerman said these actions put Cedar Fair in a better position to navigate the complicated financial period and to open its parks when health officials lift restrictions. Cedar Fair has also reduced its capital spending for the year, including suspending at least $75 million to $100 million of non-essential capital projects planned for the 2020 and 2021 seasons. The company's board also decided to suspend quarterly distribution until the economy improves.