SANDUSKY, Ohio, July 11, 2018 /PRNewswire/ -- Cedar Fair
Entertainment Company (NYSE: FUN), a leader in regional amusement
parks, water parks and immersive entertainment, today reported
preliminary net revenues through July 8,
2018, of approximately $563
million, on 11.1 million guest visits, average in-park per
capita spending of $45.87 and
out-of-park revenues of $70
million. This period represents approximately 40% of
the Company's total operating days for 2018.
When compared with the same period a year ago, net revenues were
down 2%, or $10 million, the result
of a 3%, or 314,000-visit, decrease in attendance. This was
partially offset by a 3%, or $2
million, increase in out-of-park revenues, including resort
accommodations, and a slight increase in average in-park per capita
spending when compared with the same period last year.
Cedar Fair's President and CEO Richard
Zimmerman said, "We came into this year with a clear focus
on enhancing the guest experience and a business plan designed to
drive additional attendance, especially in the second half of the
year which includes the peak vacation months of July and August and
the expansion of our WinterFest events in November and
December. Although early-season attendance at our seasonal
parks through this past weekend has not met our expectations, we
are encouraged by the positive guest response to our new rides and
attractions, in particular our new coasters Steel Vengeance at
Cedar Point and Hang Time at
Knott's Berry Farm. We are
also pleased with the growth of in-park guest spending where we are
seeing year-over-year increases in food, merchandise and extra
charge attractions."
Zimmerman noted that the strong attendance and revenue trends
that Knott's Berry Farm produced in
the first quarter have continued through the July 4th holiday weekend. He
also added that Cedar Fair's out-of-park revenues have continued to
perform well. "Demand within our resort properties has been
very strong, particularly at Cedar
Point, where we recently opened a new 158-room tower at the
historic Hotel Breakers located on the park's mile-long beach," he
said. "We believe this demand will continue as advanced
reservations at our resort accommodations for the second half of
the year are up when compared with the same period in 2017.
The expansion of our resort facilities will be a key driver of
increased revenues over the long-term as we open additional hotels
adjacent to Carowinds in Charlotte, North
Carolina, in late 2019, and Canada's Wonderland, near Toronto, in 2020."
Virtually all of Cedar Fair's revenues from its seasonal
amusement parks and water parks are realized during a 130- to
140-day operating period beginning in early May, with the major
portion concentrated in the peak vacation months of July and
August. In addition, fourth-quarter revenues have grown in
recent years with the introduction and expansion of popular events
and activities such as Halloween-related attractions and WinterFest
celebrations. Only Knott's Berry
Farm is open year-round and it operates at its highest level
of attendance in the fiscal third quarter.
"We believe the positive guest response to our new attractions
and offerings, as emphasized by this year's high guest satisfaction
ratings, combined with the continued growth in advance purchases
and lengthened seasons at many of our parks, will provide the
momentum needed to increase attendance and drive additional guest
spending in the second half of the year," added Zimmerman. He
also noted that the Company anticipates 2018 full-year net revenues
to be in the range of $1.34 billion
and $1.38 billion, and full-year
Adjusted EBITDA1 to be in the range of $475 million to $495
million.
"Although we've seen some early-season margin compression as a
result of the attendance shortfalls and previously discussed labor
cost pressure, our long-term strategy continues to produce a
significant amount of free cash flow. As such, we remain
committed to a steady 4% increase in our annual distribution rate
going forward," concluded Zimmerman.
The Company will provide additional information regarding net
revenues, operating costs and cash flows when it announces
second-quarter results on Wednesday, August
1, 2018.
1 Adjusted EBITDA represents earnings before
interest, taxes, depreciation, amortization, other non-cash items,
and adjustments as defined in the Amended 2017 Credit Agreement and
the 2013 Credit Agreement. The Company believes Adjusted
EBITDA is a meaningful measure as it is widely used by analysts,
investors, and comparable companies in our industry to evaluate our
operating performance on a consistent basis, as well as more easily
compare our results with those of other companies in our
industry. Further, management believes Adjusted EBITDA is
a meaningful measure of park-level operating profitability and we
use 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 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.
The Company is not reconciling Adjusted EBITDA guidance to Net
Income, in reliance on the unreasonable efforts exception provided
under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is
unable, without unreasonable efforts, to forecast certain
individual items required to reconcile Adjusted EBITDA guidance
with the most directly comparable GAAP financial measure (Net
Income). These items include the net effect of swaps,
non-cash foreign currency (gain) loss, as well as other non-cash
and unusual items and other adjustments as defined under the
Company's debt agreements, which are difficult to predict in
advance in order to include in a GAAP estimate.
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 become "THE place to be for FUN," the Company owns and operates
11 amusement parks, including its flagship park, Cedar Point, along with two outdoor water
parks, one indoor water park and four hotels. It also
operates an additional theme park under a management
contract. Its parks are located in Ohio, California, North
Carolina, South Carolina,
Virginia, Pennsylvania, Minnesota, Missouri, Michigan and Toronto, Ontario.
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.
These statements may involve risks 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, changes in the Company's capital investment
plans and projects 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 the Company's
parks and cause actual results to differ materially from the
Company's expectations. 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.
Contact: Investor Relations
419.627.2233
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SOURCE Cedar Fair Entertainment Company