Cedar Fair Entertainment Company (NYSE: FUN), a leader in
regional amusement parks, water parks and immersive entertainment,
today announced its financial results for the third quarter ended
Sept. 24, 2023. In addition, the Company announced the declaration
of a cash distribution of $0.30 per limited partner (LP) unit
payable on Dec. 20, 2023, to unitholders of record as of Dec. 6,
2023, consistent with Cedar Fair’s current annualized distribution
rate of $1.20 per LP unit.
2023 Third Quarter
Highlights
- Net revenues totaled $842 million, a decrease of $1 million
from the third quarter of 2022.
- Net income was $215 million, a decrease of $118 million from
the third quarter of 2022, the result of a $155 million prior
period gain recognized on the sale of the land at California’s
Great America.
- Net income margin, calculated as net income divided by net
revenues, declined to 25.6% from 39.5% for the third quarter of
2022, and was also the result of the prior period gain on sale of
the land at California’s Great America.
- Adjusted EBITDA(1) totaled $388 million, an increase of $27
million, or 7%, from the third quarter of 2022.
- Adjusted EBITDA margin(1) improved 320 basis points to 46.1%
from 42.9% for the third quarter of 2022.
- Attendance totaled 12.4 million guests, an increase of 1%, or
129,000 guests, from the third quarter of 2022.
- In-park per capita spending(2) was $61.65, a 2% decrease from
the third quarter of 2022, the result of a reassessment of pricing
strategies and the recovery of lower priced attendance
channels.
- Out-of-park revenues(2) totaled $99 million, representing a $2
million, or 2%, increase from the third quarter of 2022.
October 2023 Highlights
- For the five-week period ended Oct. 29, 2023, preliminary net
revenues totaled $226 million, a decrease of $1 million, or less
than 1%, from the comparable five-week period in 2022.
- Attendance for the five-week period ended Oct. 29, 2023,
totaled 3.3 million guests, an increase of 2%, or 69,000 guests,
from October of 2022.
- In-park per capita spending(2) for the five-week period ended
Oct. 29, 2023, was $63.15, a 3% decrease from October of 2022.
- Out-of-park revenues(2) for the five-week period ended Oct. 29,
2023, totaled $21 million, consistent with the comparable period in
2022.
Balance Sheet and Capital Allocation
Highlights
- On Sept. 24, 2023, net debt(3) totaled $2.17 billion,
calculated as total debt before debt issuance costs of $2.3 billion
less cash and cash equivalents of $134 million.
- In the 2023 fourth quarter, Cedar Fair will pay to unitholders
a cash distribution of $0.30 per limited partner (LP) unit.
CEO Commentary
“The strength and resiliency of our business model was on full
display during our peak attendance and revenue months, as we
delivered another strong performance and positioned Cedar Fair for
a great finish to 2023,” said Cedar Fair President and CEO Richard
A. Zimmerman. “Our rapid recovery during the third quarter,
combined with our meaningful cost-saving measures, helped offset
attendance and revenue shortfalls experienced earlier in the year
and put us back on track to deliver another very strong performance
in 2023. The strong demand trends we’ve seen so far in the second
half of the year, including in the month of October, give us
confidence in our ability to carry our success into 2024.”
“Our efforts to drive more demand with increased advertising and
a reassessment of our pricing strategy in several key markets
resonated well with consumers, and our popular fall events are once
again producing some of our biggest attendance days of the year,”
added Zimmerman. “In addition to stimulating attendance levels and
topline revenue, our team has been optimizing our cost structure to
improve margins. By actively managing our variable operating costs
to better align with attendance levels and reassessing our overhead
needs, we reduced operating costs in the third quarter resulting in
a 300-basis-point improvement in Adjusted EBITDA margin over the
third quarter last year. I am grateful for our team’s perseverance
through such a challenging season.”
Zimmerman continued, “Today we also announced that we have
entered into a definitive agreement to merge with Six Flags to
create a leading amusement park operator in North America with the
largest portfolio of best-in-class parks and brands. With Six
Flags, we will expand our footprint, enhance the resilience of our
business model, and bolster our financial profile to drive in-park
investments. This transaction will allow us to build on our
strategy to transform our park operations and deliver the most
entertaining experiences to guests.”
Results for 2023 Third
Quarter
Operating days in the third quarter of 2023 totaled 1,091
compared to 1,088 in the third quarter of 2022.
For the third quarter ended Sept. 24, 2023, net revenues totaled
$842 million on attendance of 12.4 million guests, compared with
net revenues of $843 million on attendance of 12.3 million guests
for the third quarter of 2022. The decrease in net revenues
reflected the impact of a 2%, or $0.97, decrease in in-park per
capita spending, to $61.65, offset in part by a 1%, or 0.1
million-visit, increase in attendance and a 2%, or $2 million,
increase in out-of-park revenues. The decrease in in-park per
capita spending in the third quarter was primarily attributable to
lower guest spending on admissions, offset in part by higher levels
of guest spending on food and beverage. The decrease in admissions
spending reflects the reassessment of pricing strategies and the
recovery of lower priced attendance channels during the critical
third quarter. The increase in food and beverage spending was
driven by an increase in average transaction value, once again
underscoring the effectiveness of the Company’s initiatives and
ongoing investments in this area.
The Company reported 2023 third quarter operating income of $307
million compared with $442 million in the prior year’s third
quarter, which included a $155 million gain recognized on the sale
of the land at California’s Great America. Excluding the gain on
the land sale, operating income in the third quarter of 2023
increased $20 million, or 7%, compared to the third quarter of
2022. This year-over-year increase reflects the $1 million decrease
in net revenues and a $17 million, or 4%, decrease in operating
costs and expenses during the period. The decrease in operating
costs and expenses reflects a $22 million decrease in operating
expenses and a $3 million decrease in cost of goods sold, partially
offset by an $8 million increase in SG&A expense. The decrease
in operating expenses was driven largely by cost savings
initiatives, including meaningful reductions in seasonal labor
hours and in-park entertainment costs. The increase in SG&A
expense was attributable to higher advertising costs, as well as
initial costs associated with the proposed merger with Six
Flags.
Depreciation and amortization expense for the third quarter of
2023 totaled $66 million, a decrease of $2 million from the
comparable period in 2022. During the period, a loss on
impairment/retirement of fixed assets of approximately $2 million
was recorded compared with a $4 million loss in the prior-year
period.
Interest expense for the third quarter totaled $36 million, a
decrease of $1 million compared to the third quarter of 2022, the
result of the repayment of the Company’s senior secured term loan
facility and related termination of its interest rate swap
agreements during the third quarter of 2022. During the quarter,
the Company also recognized a $5 million net charge to earnings for
foreign currency gains and losses related to the remeasurement of
U.S. dollar-denominated notes to the Canadian entity’s functional
currency, compared with a $14 million net charge to earnings for
the comparable period in 2022.
Accounting for the items above and after a $10 million decrease
in provision for taxes driven by the sale of the land at
California’s Great America, net income for the 2023 third quarter
totaled $215 million, or $4.21 per diluted L.P. unit. This compares
with net income of $333 million, or $5.86 per diluted L.P. unit,
for the 2022 third quarter.
For the third quarter, Adjusted EBITDA, which management
believes is a meaningful measure of the Company’s park-level
operating results, totaled $388 million, compared to $362 million
for the third quarter of 2022. The $27 million, or 7%, increase in
Adjusted EBITDA was driven by a decrease in operating costs and
expenses, the outcome of cost saving initiatives designed to
maximize efficiencies in variable-operating costs and cost of goods
sold.
Preliminary Results for Five Weeks
Ended Oct. 29, 2023
Based on preliminary results, net revenues for the five-week
period ended Oct. 29, 2023, totaled approximately $226 million,
which was down less than 1% compared with net revenues for the same
five-week period last year. The October revenues reflect a 2%, or
69,000-visit, increase in attendance, consistent out-of-park
revenues, and a 3% decrease in in-park guest per capita spending.
In total, the Company entertained 3.3 million guests over the
five-week period. Operating days for the comparable five-week
periods in 2023 and 2022 totaled 183 days and 177 days,
respectively.
Balance Sheet and Liquidity
Highlights
As of Sept. 24, 2023, the Company’s deferred revenue balance,
including non-current deferred revenue, totaled $208 million. This
represents an increase of $20 million, or 11%, compared to deferred
revenue at the end of the third quarter last year. The increase in
the deferred revenue balance was primarily driven by a strong start
to fall sales of 2024 season passes and related all-season
products.
On Sept. 24, 2023, the Company had cash on hand of $134 million
and $280 million available under its revolving credit facility, for
total liquidity of $414 million. Net debt on Sept. 24, 2023, was
$2.17 billion, calculated as total debt before debt issuance costs
of $2.3 billion less cash and cash equivalents of $134 million.
Distribution
Today, the Company announced the Cedar Fair Board of Directors
approved a quarterly cash distribution of $0.30 per limited partner
(LP) unit, to be paid on Dec. 20, 2023, to unitholders of record on
Dec. 6, 2023.
Merger of Equals with Six
Flags
In a separate press release issued today, Cedar Fair and Six
Flags announced that they have entered into a definitive merger
agreement to combine in an all-stock merger of equals transaction.
The combined company, with a pro forma enterprise value of
approximately $8 billion, will be an industry leading regional
amusement park operator with an expanded and diversified footprint,
a best-in-class operating model and a strong revenue and cash flow
generation profile. The completion of the merger is subject to
receipt of the approval of the shareholders of Six Flags,
regulatory approvals, and satisfaction of other customary closing
conditions. The merger press release can be found on Cedar Fair’s
investor website at https://ir.cedarfair.com.
Conference Call
In light of the agreement announced in the separate merger press
release issued today, Cedar Fair, L.P. (NYSE: FUN) and Six Flags
Entertainment Corporation (NYSE: SIX) will host a conference call
from 8:30-9:30 a.m. ET today, Nov. 2, 2023, to further discuss
today’s merger release and review Cedar Fair and Six Flags’ third
quarter 2023 results. This is a change from the previously
scheduled call time of 10:00 a.m. ET. Participants on the call will
include Six Flags President and CEO Selim Bassoul, Cedar Fair
President and CEO Richard Zimmerman, Cedar Fair Executive Vice
President and CFO Brian Witherow, and Six Flags CFO Gary Mick.
Investors and all other interested parties can access a live,
listen-only audio webcast of the call on the Cedar Fair Investors
website at https://ir.cedarfair.com under the tabs Investor
Information / Events & Presentations / Upcoming Events or at
https://investors.sixflags.com under the tabs News & Events /
Events, Presentations & Company Announcements / Upcoming
Events. Those unable to listen to the live webcast can access a
recorded version of the call on either company’s investor website
Past Events, shortly after the live call’s conclusion.
A replay of the call is also available by phone starting at
approximately noon ET on Thursday, Nov. 2, 2023, until noon ET,
Thursday, Nov. 9, 2023. To access the phone replay, please dial
(929) 458-6194 or (866) 813-9403, followed by the Conference ID:
830378.
(1)
Adjusted EBITDA and Adjusted EBITDA margin
are not measurements computed in accordance with generally accepted
accounting principles (GAAP). For additional information regarding
Adjusted EBITDA and Adjusted EBITDA margin, including how the
Company defines and uses Adjusted EBITDA and Adjusted EBITDA
margin, see the attached reconciliation table and related
footnotes.
(2)
In-park per capita spending and
out-of-park revenues are non-GAAP financial measures. See the
attached reconciliation table and related footnote for the
calculation of in-park per capita spending and out-of-park
revenues. These metrics are used by management as major factors in
significant operational decisions as they are primary drivers of
our financial and operational performance, measuring demand,
pricing, and consumer behavior.
(3)
Net debt is a non-GAAP financial measure.
See the attached reconciliation table and related footnote for the
calculation of net debt. Management uses this measure to monitor
leverage and believes it is meaningful for this purpose.
About Cedar Fair
Cedar Fair Entertainment Company (NYSE: FUN), one of the largest
regional amusement-resort operators in the world, is a publicly
traded partnership headquartered in Sandusky, Ohio. Focused on its
mission to make people happy by providing fun, immersive, and
memorable experiences, the Company owns and operates 13 properties,
consisting of 11 amusement parks, four separately gated outdoor
water parks, and resort accommodations totaling more than 2,300
rooms and more than 600 luxury RV sites. Cedar Fair’s parks are
located in Ohio, California, North Carolina, South Carolina,
Virginia, Pennsylvania, Minnesota, Missouri, Michigan, Texas and
Toronto, Ontario.
Qualified Notice
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat
one hundred percent (100.0 percent) of Cedar Fair, L.P.’s
distributions to non-U.S. investors as being attributable to income
that is effectively connected with a United States trade or
business. Accordingly, Cedar Fair’s distributions to non-U.S.
investors are subject to federal income tax withholding at the
highest applicable effective tax rate.
Forward-Looking
Statements
Some of the statements contained in this news release that are
not historical in nature constitute “forward-looking statements”
within the meaning of the federal securities laws, including
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, including statements as to the
Company's expectations, beliefs, goals, and strategies regarding
the future. All statements, other than statements of historical
fact, included in this communication that address activities,
events or developments that we expect, believe or anticipate will
or may occur in the future are forward-looking statements. Words
such as “anticipate,” “believe,” “create,” “expect,” “future,”
“guidance,” “intend,” “plan,” “potential,” “seek,” “target,”
“synergies,” “will,” “would,” similar expressions, and variations
or negatives of these words identify forward-looking statements.
However, the absence of these words does not mean that the
statements are not forward-looking. Forward-looking statements by
their nature address matters that are, to different degrees,
uncertain, such as statements about performance expectations and
the consummation of the proposed transaction and the anticipated
benefits thereof. These forward-looking statements may involve
current plans, estimates, expectations and ambitions that are
subject to risks, uncertainties and assumptions that are difficult
to predict, may be beyond our control and 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 be correct,
that the Company's growth and operational strategies will achieve
the target results, that the proposed transaction will close or
that the Company will realize the anticipated benefits thereof.
Important risk factors that may cause such a difference and could
adversely affect attendance at our parks, our future financial
performance, our growth strategies and/or the proposed transaction,
and could cause actual results to differ materially from our
expectations or otherwise to fluctuate or decrease, include, but
are not limited to: general economic conditions; the impacts of
public health concerns; adverse weather conditions; competition for
consumer leisure time and spending; unanticipated construction
delays; changes in the Company’s capital investment plans and
projects; the expected timing and likelihood of completion of the
proposed transaction, including the timing, receipt and terms and
conditions of any required governmental and regulatory approvals of
the proposed transaction and Six Flags stockholder approval;
anticipated tax treatment, unforeseen liabilities, future capital
expenditures, revenues, expenses, earnings, synergies, economic
performance, indebtedness, financial condition, losses, future
prospects, business and management strategies for the management,
expansion and growth of the combined company’s operations and other
conditions to the completion of the proposed transaction, including
the possibility that any of the anticipated benefits of the
proposed transaction will not be realized or will not be realized
within the expected time period; the occurrence of any event,
change or other circumstances that could give rise to the
termination of the merger agreement; the outcome of any legal
proceedings that may be instituted against Cedar Fair, Six Flags or
their respective directors and others following announcement of the
merger agreement and proposed transaction; the inability to
consummate the transaction due to the failure to satisfy other
conditions to complete the transaction; risks that the proposed
transaction disrupts and/or harms current plans and operations of
Cedar Fair or Six Flags, including that management’s time and
attention will be diverted on transaction-related issues; the
amount of the costs, fees, expenses and charges related to the
transaction, including the possibility that the transaction may be
more expensive to complete than anticipated; the ability of Cedar
Fair and Six Flags to successfully integrate their businesses and
to achieve anticipated synergies and value creation; potential
adverse reactions or changes to business relationships resulting
from the announcement or completion of the proposed transaction;
legislative, regulatory and economic developments and changes in
laws, regulations, and policies affecting Cedar Fair and Six Flags;
potential business uncertainty, including the outcome of commercial
negotiations and changes to existing business relationships during
the pendency of the proposed transaction that could affect Cedar
Fair’s and/or Six Flags’ financial performance and operating
results; acts of terrorism or outbreak of war, hostilities, civil
unrest, and other political or security disturbances; the impacts
of pandemics or other public health crises, including the effects
of government responses on people and economies; risks related to
the potential impact of general economic, political and market
factors on the companies or the proposed transaction; other factors
discussed from time to time by the Company in its reports filed
with the Securities and Exchange Commission (the “SEC”); and those
risks that will be described in the registration statement on Form
S-4 and the accompanying proxy statement/prospectus. 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.
These risks, as well as other risks associated with the proposed
transaction, will be more fully discussed in the registration
statement on Form S-4 that will be filed by CopperSteel HoldCo,
Inc. (“HoldCo”) with the SEC in connection with the proposed
transaction, which will contain a prospectus relating to the
issuance of HoldCo securities in the proposed transaction and a
proxy statement relating to the special meeting of the stockholders
of Six Flags. While the list of factors presented here is, and the
list of factors to be presented in the registration statement on
Form S-4 will be, considered representative, no such list should be
considered to be a complete statement of all potential risks and
uncertainties. Unlisted factors may present significant additional
obstacles to the realization of forward-looking statements. The
ability of Cedar Fair or Six Flags to achieve the goals for the
proposed transaction may also be affected by our ability to manage
the factors identified above. We caution you not to place undue
reliance on any of these forward-looking statements as they are not
guarantees of future performance or outcomes and actual performance
and outcomes may differ materially from those made in or suggested
by the forward-looking statements contained in this press release.
The Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether a result of new
information, future events, information, circumstances or otherwise
that arise after the publication of this document.
Important Information about the
Transaction and Where to Find It
In connection with the proposed transaction, Cedar Fair and Six
Flags will cause HoldCo to file with the SEC a registration
statement on Form S-4 that will include a proxy statement of Six
Flags and a prospectus of HoldCo. After the registration statement
has been declared effective, a definitive proxy
statement/prospectus will be mailed to stockholders of Six Flags.
Cedar Fair, Six Flags and HoldCo may also file other documents with
the SEC regarding the proposed transaction. This communication is
not a substitute for the registration statement, proxy
statement/prospectus or any other document that Cedar Fair, Six
Flags or HoldCo (as applicable) may file with the SEC in connection
with the proposed transaction. BEFORE MAKING ANY VOTING AND/OR
INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS OF CEDAR FAIR
AND SIX FLAGS ARE URGED TO READ THE REGISTRATION STATEMENT, THE
PROXY STATEMENT/PROSPECTUS (WHEN THEY BECOME AVAILABLE) AND ANY
OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE
SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS,
CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE
THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security
holders may obtain free copies of the registration statement and
the proxy statement/prospectus (when they become available), as
each may be amended from time to time, as well as other filings
containing important information about Cedar Fair or Six Flags,
without charge at the SEC’s Internet website (http://www.sec.gov).
Investors and security holders may obtain free copies of the
registration statement and the proxy statement/prospectus (when
available) and other documents filed with the SEC by Cedar Fair,
Six Flags and HoldCo through the web site maintained by the SEC at
www.sec.gov or by contacting the investor relations department of
Cedar Fair or Six Flags at the following:
Cedar Fair Investor Contact: Michael Russell,
419.627.2233 Media Contact: Gary Rhodes, 704.249.6119 Alternate
Media Contact: Andrew Siegel / Lucas Pers, Joele Frank,
212.355.4449
Six Flags Evan Bertrand Vice President, Investor
Relations and Treasurer +1-972-595-5180
investorrelations@sftp.com
The information included on, or accessible through, Cedar Fair’s
or Six Flags’ website is not incorporated by reference into this
communication.
Participants in the Solicitation
Cedar Fair, Six Flags, HoldCo and their respective directors and
executive officers may be deemed to be participants in the
solicitation of proxies from Six Flags stockholders in respect of
the proposed transaction. Information regarding Cedar Fair’s
directors and executive officers, including a description of their
direct interests, by security holdings or otherwise, is contained
in Cedar Fair’s Form 10-K for the year ended December 31, 2022
filed with the SEC on February 17, 2023 and its proxy statement
filed with the SEC on April 13, 2023, and subsequent statements of
changes in beneficial ownership on file with the SEC. Information
regarding Six Flags’ directors and executive officers, including a
description of their direct interests, by security holdings or
otherwise, is contained in Six Flags’ Form 10-K for the year ended
January 1, 2023 filed with the SEC on March 7, 2023 and its proxy
statement filed with the SEC on March 28, 2023, and subsequent
statements of changes in beneficial ownership on file with the SEC.
Additional information regarding the participants in the proxy
solicitations and a description of their direct or indirect
interests, by security holdings or otherwise, will be contained in
the proxy statement/prospectus and other relevant materials filed
with the SEC when they become available.
No Offer or Solicitation
This communication is for informational purposes and is not
intended to, and shall not, constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval, nor shall there be any offer, solicitation or
sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offer of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.
This news release and prior releases are
available under the News tab at https://ir.cedarfair.com
- more -
(financial tables follow)
CEDAR FAIR, L.P.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
Three months ended
Nine months ended
September 24, 2023
September 25, 2022
September 24, 2023
September 25, 2022
Net revenues:
Admissions
$
417,923
$
425,616
$
700,001
$
728,546
Food, merchandise and games
281,546
272,940
493,274
486,808
Accommodations, extra-charge products and
other
142,540
144,507
234,270
236,035
842,009
843,063
1,427,545
1,451,389
Costs and expenses:
Cost of food, merchandise, and games
revenues
70,072
73,072
129,085
133,058
Operating expenses
301,473
323,441
671,223
675,712
Selling, general and administrative
95,885
88,160
209,398
194,547
Depreciation and amortization
65,936
67,805
127,711
126,441
Loss on impairment / retirement of fixed
assets, net
2,018
3,632
12,779
6,379
Gain on sale of land
—
(155,251
)
—
(155,251
)
535,384
400,859
1,150,196
980,886
Operating income
306,625
442,204
277,349
470,503
Interest expense
36,125
37,049
105,620
115,386
Net effect of swaps
—
(3,700
)
—
(25,641
)
Loss on early debt extinguishment
—
1,810
—
1,810
Loss (gain) on foreign currency
5,071
14,376
(1,613
)
24,236
Other income
(738
)
(1,532
)
(1,416
)
(1,975
)
Income before taxes
266,167
394,201
174,758
356,687
Provision for taxes
50,673
61,151
40,246
61,374
Net income
215,494
333,050
134,512
295,313
Net income allocated to general
partner
2
3
1
3
Net income allocated to limited
partners
$
215,492
$
333,047
$
134,511
$
295,310
Net income margin(1)
25.6
%
39.5
%
9.4
%
20.3
%
(1)
Net income margin is calculated as net
income divided by net revenues.
CEDAR FAIR, L.P.
UNAUDITED BALANCE SHEET
DATA
(In thousands)
September 24, 2023
September 25, 2022
Cash and cash equivalents
$
134,394
$
288,380
Total assets
$
2,318,603
$
2,414,456
Long-term debt, including current
maturities:
Notes
$
2,272,961
$
2,265,490
$
2,272,961
$
2,265,490
Total partners' deficit
$
(565,769
)
$
(470,787
)
CEDAR FAIR, L.P.
RECONCILIATION OF ADJUSTED
EBITDA AND ADJUSTED EBITDA MARGIN
(In thousands)
Three months ended
Nine months ended
September 24, 2023
September 25, 2022
September 24, 2023
September 25, 2022
Net income
$
215,494
$
333,050
$
134,512
$
295,313
Interest expense
36,125
37,049
105,620
115,386
Interest income
(829
)
(1,562
)
(1,521
)
(2,113
)
Provision for taxes
50,673
61,151
40,246
61,374
Depreciation and amortization
65,936
67,805
127,711
126,441
EBITDA
367,399
497,493
406,568
596,401
Loss on early debt extinguishment
—
1,810
—
1,810
Net effect of swaps
—
(3,700
)
—
(25,641
)
Non-cash foreign currency loss (gain)
5,460
14,369
(1,674
)
24,217
Non-cash equity compensation expense
8,221
3,204
15,841
15,087
Loss on impairment / retirement of fixed
assets, net
2,018
3,632
12,779
6,379
Gain on sale of land
—
(155,251
)
—
(155,251
)
Costs related to proposed merger (1)
5,012
—
5,012
—
Other (2)
385
428
284
1,120
Adjusted EBITDA (3)
$
388,495
$
361,985
$
438,810
$
464,122
Adjusted EBITDA margin (4)
46.1
%
42.9
%
30.7
%
32.0
%
(1)
Consists of third-party
consulting costs related to the proposed merger with Six Flags.
These costs are excluded from the calculation of Adjusted EBITDA as
defined in the Company's current and prior credit agreements.
(2)
Consists of certain costs as
defined in the Company's current and prior credit agreements. These
items are excluded from the calculation of Adjusted EBITDA and have
included certain legal expenses, severance and related benefits and
contract termination costs. This balance also includes unrealized
gains and losses on short-term investments.
(3)
Adjusted EBITDA represents
earnings before interest, taxes, depreciation, amortization, other
non-cash items, and adjustments as defined in the Company's current
and prior credit agreements. The Company believes Adjusted EBITDA
is a meaningful measure as it is widely used by analysts, investors
and comparable companies in the industry to evaluate operating
performance on a consistent basis, as well as more easily compare
the Company's results with those of other companies in the
industry. Further, management believes Adjusted EBITDA is a
meaningful measure of park-level operating profitability and uses
it for measuring returns on capital investments, evaluating
potential acquisitions, determining awards under incentive
compensation plans, and calculating compliance with certain loan
covenants. Adjusted EBITDA is provided as a supplemental measure of
our operating results and is not intended to be a substitute for
operating income, net income or cash flows from operating
activities as defined under generally accepted accounting
principles. In addition, Adjusted EBITDA may not be comparable to
similarly titled measures of other companies.
(4)
Adjusted EBITDA margin (Adjusted
EBITDA divided by net revenues) is not a measurement computed in
accordance with GAAP and may not be comparable to similarly titled
measures of other companies. The Company believes Adjusted EBITDA
margin is a meaningful metric of operating profitability.
CEDAR FAIR, L.P.
CALCULATION OF NET
DEBT
(In thousands)
September 24, 2023
Long-term debt, including current
maturities
$
2,272,961
Plus: Debt issuance costs and original
issue discount
27,039
Less: Cash and cash equivalents
(134,394
)
Net Debt (1)
$
2,165,606
(1)
Net Debt is a non-GAAP financial measure
used by the Company and investors to monitor leverage. The measure
may not be comparable to similarly titled measures of other
companies.
CEDAR FAIR, L.P.
KEY OPERATIONAL
MEASURES
(In thousands, except per capita
and operating day amounts)
Three months ended
Nine months ended
September 24, 2023
September 25, 2022
September 24, 2023
September 25, 2022
Attendance
12,433
12,304
20,889
21,603
In-park per capita spending (1)
$
61.65
$
62.62
$
61.73
$
61.24
Out-of-park revenues (1)
$
99,024
$
97,302
$
180,732
$
173,416
Operating days
1,091
1,088
1,988
1,926
(1)
In-park per capita spending is calculated
as revenues generated within our amusement parks and separately
gated outdoor water parks along with related parking revenues
(in-park revenues), divided by total attendance. Out-of-park
revenues are defined as revenues from resort, out-of-park food and
retail locations, online transaction fees charged to customers,
sponsorships and all other out-of-park operations. In-park
revenues, in-park per capita spending and out-of-park revenues are
non-GAAP measures. These metrics are used by management as major
factors in significant operational decisions as they are primary
drivers of our financial and operational performance, measuring
demand, pricing, and consumer behavior. A reconciliation of in-park
revenues and out-of-park revenues to net revenues for the periods
presented is as follows:
Three months ended
Nine months ended
(In thousands)
September 24, 2023
September 25, 2022
September 24, 2023
September 25, 2022
In-park revenues
$
766,503
$
770,428
$
1,289,357
$
1,322,950
Out-of-park revenues
99,024
97,302
180,732
173,416
Concessionaire remittance
(23,518
)
(24,667
)
(42,544
)
(44,977
)
Net revenues
$
842,009
$
843,063
$
1,427,545
$
1,451,389
For the five week periods ended October
29, 2023 and October 30, 2022, preliminary concessionaire
remittance totaled approximately $5 million in each period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231102297178/en/
Investor Contact: Michael Russell, 419.627.2233 Media
Contact: Gary Rhodes, 704.249.6119
Cedar Fair (NYSE:FUN)
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