- Strong performance over the second half of the year,
including record fourth quarter attendance, validates the strength
and resiliency of the Company’s business model
- Robust trends in long-lead indicators, including 2024 season
pass sales, underscore the Company’s bright prospects for continued
growth and value creation
- Board declares quarterly cash distribution of $0.30 per LP
unit, payable March 20, 2024
Cedar Fair Entertainment Company (NYSE: FUN), a leader in
regional amusement parks, water parks and immersive entertainment,
today announced its 2023 fourth-quarter and full-year results,
ended Dec. 31, 2023.
2023 Fourth-Quarter
Highlights
- Net revenues totaled a record $371 million, an increase of 1%,
or $5 million, compared with Q4-2022.
- The Company recorded a net loss of $10 million compared with
net income of $12 million in Q4-2022. The decrease was due
primarily to $17 million of transaction costs related to the
proposed merger with Six Flags.
- Adjusted EBITDA(1) totaled $89 million, an increase of 1%, or
$1 million, compared with Q4-2022.
- Attendance totaled a record 5.8 million guests, an increase of
9%, or 466,000 guests compared with Q4-2022. The increase in
attendance was primarily attributable to increased season pass
visits resulting from the strong start to the 2024 sales
program.
- In-park per capita spending(2) was $58.61, a decrease of 7%
compared with Q4-2022. The decrease was primarily due to a shift in
attendance mix to lower-priced ticketing channels and higher
attendance levels.
- Out-of-park revenues(2) were a record $43 million, an increase
of 7%, or $3 million, compared with Q4-2022.
2023 Full-Year
Highlights
- Net revenues totaled $1.80 billion compared with $1.82 billion
in 2022.
- Net income was $125 million, a decrease of $183 million from
2022, primarily the result of a $155 million prior year gain
recognized on the sale of the land at California’s Great America
and $22 million of transaction costs in 2023 related to the
proposed merger with Six Flags.
- Adjusted EBITDA was $528 million compared with $552 million in
2022.
- Attendance totaled 26.7 million guests compared with 26.9
million guests in 2022.
- In-park per capita spending was $61.05, a decline of 1%
compared with 2022.
- Out-of-park revenues were a record $223 million, an increase of
$10 million, or 5% compared with 2022.
Balance Sheet and Capital Allocation
Highlights
- On Dec. 31, 2023, net debt(3) totaled $2.2 billion, calculated
as total debt before debt issuance costs of $2.3 billion less cash
and cash equivalents of $65 million.
- Cedar Fair’s Board of Directors today declared a cash
distribution of $0.30 per limited partner (LP) unit, payable on
March 20, 2024, to unitholders of record on March 6, 2024.
CEO Commentary
“With the return to more normal operating conditions in the back
half of 2023, the strength and resiliency of Cedar Fair’s business
model was on full display,” said Cedar Fair CEO Richard Zimmerman.
“We remained nimble and successfully adapted to an evolving
marketplace to offset the effects of anomalous macro-factors,
including weather, on demand during the first half of the year. In
the second half of the year, in addition to more normalized
operating conditions, we made mid-year adjustments to our marketing
and pricing strategies that successfully drove increased demand
while our park teams effectively implemented cost-saving measures
to expand operating margins.”
“In addition to our outstanding performance over the second half
of the year and record fourth quarter results, I’m encouraged by
the pace of our long-lead indicators heading into the 2024 season,
particularly sales of season passes and related all-season, add-on
products,” added Zimmerman. “With unit sales of season passes
through January up approximately 20% versus last year, we expect
season pass sales to serve as a tailwind for attendance and
revenues all season long.”
Commenting on the proposed merger with Six Flags, Zimmerman
concluded, “Since announcing the proposed merger transaction in
early November, we have been pleased by the strong support we have
heard from unitholders and others in the investor community. We
look forward to completing our combination with Six Flags and
delivering on the compelling value creation opportunities ahead,
which we believe are greater than what either company can achieve
independently. Cedar Fair and Six Flags continue to work
constructively with the DOJ in its review of the merger and
continue to expect it will be completed in the first half of 2024.
We look forward to capitalizing on the opportunities ahead for the
combined company.”
2023 Full-Year Results
Operating days in 2023 totaled 2,365 compared to 2,302 in
2022.
For the year ended Dec. 31, 2023, net revenues totaled $1.80
billion on attendance of 26.7 million guests, compared with net
revenues of $1.82 billion on attendance of 26.9 million guests in
2022. The decrease in net revenues reflects the impact of a 1%, or
247,000, decline in attendance and a 1%, or $0.60, decrease in
in-park per capita spending, offset in part by a 5%, or $10
million, increase in out-of-park revenues. The decline in
attendance was attributable to a year-over-year decrease in season
pass sales and lower demand during the first half of the year due
to inclement weather. The decrease in in-park per capita spending
was attributable to a decrease in admissions spending, reflecting a
mid-year reassessment of pricing strategy at several key parks, as
well as the recovery of lower-priced attendance channels over the
second half of the year. The decrease in admission spending was
partially offset by higher levels of guest spending on food and
beverage, as continued investments in food and beverage offerings
led to increases in both the number of transactions per guest and
the average transaction value. The increase in out-of-park revenues
reflects the strong performance of the Company’s resort properties,
highlighted by full-year operations of Castaway Bay Resort and
Sawmill Creek Resort at Cedar Point following temporary closures
for renovations during 2022.
Operating costs and expenses for 2023 totaled $1.32 billion
compared with $1.29 billion for 2022. The approximate $27 million
year-over-year increase was primarily attributable to $22 million
of transaction costs related to the proposed merger with Six Flags,
which are classified as SG&A expenses. Excluding the
merger-related costs, operating costs and expenses for the year
increased $5 million, or less than 1%, the result of a $14 million
increase in SG&A expenses partially offset by a $4 million
decrease in cost of goods sold and a $4 million decrease in
operating expenses. The decrease in operating expenses was
primarily due to cost savings initiatives resulting in a reduction
in seasonal labor hours and less in-park entertainment costs. These
cost-savings were somewhat offset by six incremental months of land
lease costs at California's Great America, higher early-season
maintenance wage costs at several parks, and increased insurance
claims and related costs. Excluding the merger-related costs, the
increase in SG&A expenses was primarily attributable to higher
planned advertising costs in 2023.
Depreciation and amortization expense in 2023 totaled $158
million, up $5 million over the prior year, due to the reduction of
the estimated useful lives of the long-lived assets at California's
Great America following the sale-leaseback of the land at
California's Great America. During 2023, the Company also reported
a loss on impairment/retirement of fixed assets of approximately
$18 million, compared with a $10 million loss in the prior
year.
After the items noted above and a $155 million gain on the sale
of the land at California's Great America in 2022, operating income
for 2023 totaled $306 million, compared to operating income of $520
million for 2022.
Interest expense for 2023 totaled $142 million, a decrease of
$10 million compared with 2022, the result of the repayment of the
Company’s senior secured term loan facility and related termination
of interest rate swap agreements during 2022. The reduction in
interest expense was partially offset by interest on additional
borrowings on the Company’s revolving credit facility in 2023.
Prior to the termination of the Company’s interest rate swaps, the
net effect of the swaps resulted in a $26 million net benefit to
earnings for 2022. Finally, during 2023, Cedar Fair recognized a $6
million net benefit to earnings for foreign currency gains and
losses compared with a $24 million net charge to earnings for 2022.
Both amounts primarily represented the remeasurement of U.S.-dollar
denominated notes to the functional currency of the Company’s
Canadian entity.
Accounting for the items above, and after a $16 million decrease
in the provision for taxes driven by the sale of the land at
California’s Great America, net income for 2023 totaled $125
million, or $2.42 per diluted L.P. unit. This compares with net
income of $308 million, or $5.45 per diluted LP unit, for 2022.
Adjusted EBITDA, which management believes is a meaningful
measure of the Company’s park-level operating results, totaled $528
million in 2023, compared to Adjusted EBITDA of $552 million for
2022. The $24 million decrease in Adjusted EBITDA was primarily
attributable to a decrease in net revenues driven by a decline in
attendance caused by extreme weather during the first six months of
2023, and to a lesser extent by higher advertising, land lease and
insurance related costs.
See the attached table for a reconciliation of net income to
Adjusted EBITDA.
Balance Sheet and Liquidity
Highlights
Deferred revenues on Dec. 31, 2023, including non-current
deferred revenue, totaled $192 million, compared with $173 million
of deferred revenues on Dec. 31, 2022. The $19 million increase was
due to strong sales of advance purchase products, including season
passes and related all-season add-on products.
As of Dec. 31, 2023, the Company had cash on hand of $65 million
and $280 million available under its revolving credit facility, for
total liquidity of $345 million. This compares to $381 million of
total liquidity at the end of 2022. Net debt on Dec. 31, 2023,
calculated as total debt of $2.3 billion (before debt issuance
costs) less cash and cash equivalents of $65 million, was $2.2
billion.
Distribution and Unit
Repurchases
Today the Company announced the Cedar Fair Board of Directors
has approved a quarterly cash distribution of $0.30 per LP unit, to
be paid on March 20, 2024, to unitholders of record on March 6,
2024.
During 2023, the Company repurchased approximately 1.7 million
limited partnership units at a total cost of approximately $75
million – representing approximately 3% of its total units
outstanding at the beginning of 2023.
Conference Call
As previously announced, the Company will host a conference call
with analysts starting at 10 a.m. ET today, Feb. 15, 2024, to
further discuss its recent financial performance. Participants on
the call will include Cedar Fair President and CEO Richard
Zimmerman, Executive Vice President and CFO Brian Witherow and
Corporate Director of Investor Relations Michael Russell.
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. Those
unable to listen to the live webcast can access a recorded version
of the call on the Cedar Fair Investors website at
https://ir.cedarfair.com under Investor Information / Events and
Presentations / Past Events, shortly after the live call’s
conclusion.
A digital recording of the conference call will be available for
replay by phone starting at approximately 1 p.m. ET on Thursday,
Feb. 15, 2024, until 11:59 p.m. ET, Thursday, Feb. 22, 2024. To
access the phone replay, please dial (800) 770-2030 or (609)
800-9909, followed by Conference ID 3720518.
(1)
Adjusted EBITDA is not a
measurement computed in accordance with generally accepted
accounting principles (GAAP). For additional information regarding
Adjusted EBITDA, including how the Company defines and uses
Adjusted EBITDA, 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
calculations 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
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. Net debt is a meaningful measure
used by the Company and investors to monitor leverage, and
management 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 are 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, are more fully discussed in the registration statement
on Form S-4 that was filed by CopperSteel HoldCo, Inc. (“HoldCo”)
and subsequently declared effective by the SEC on January 31, 2024,
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 are, 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 mergers, Cedar Fair and Six Flags have
caused HoldCo to file with the SEC a registration statement on Form
S-4 that includes a proxy statement of Six Flags and a prospectus
of HoldCo. The registration statement on Form S-4 has been declared
effective by the SEC. The definitive proxy statement included in
the registration statement on Form S-4 was mailed to stockholders
of Six Flags on or about February 1, 2024. Cedar Fair, Six Flags
and HoldCo may also file other documents with the SEC regarding the
mergers. 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) has
filed or 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 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, 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 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 Contacts:
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 Contact:
Evan Bertrand, 972.595.5180 Vice President, Investor Relations
and Treasurer 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 (Form 4s filed
on February 22, 2023, March 1, 2023, March 22, 2023, and January 4,
2024). 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 (Form 4s filed on April 4, 2023, May 11, 2023,
May 12, May 16, May 30, 2023, June 2, 2023, June 12, 2023, June 14,
2023, August 15, 2023, September 11, 2023, September 21, 2023,
December 22, 2023 and December 26, 2023). Additional information
regarding the participants in the proxy solicitations and a
description of their direct or indirect interests, by security
holdings or otherwise, are 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 http://ir.cedarfair.com
(financial tables follow)
CEDAR FAIR, L.P.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
Three months ended
Twelve months ended
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Net revenues:
Admissions
$
194,727
$
197,357
$
894,728
$
925,903
Food, merchandise and games
120,695
115,795
613,969
602,603
Accommodations, extra-charge products and
other
55,701
52,842
289,971
288,877
371,123
365,994
1,798,668
1,817,383
Costs and expenses:
Cost of food, merchandise and games
revenues
30,745
31,188
159,830
164,246
Operating expenses
188,931
188,592
860,154
864,304
Selling, general and administrative
87,060
66,045
296,458
260,592
Depreciation and amortization
30,284
26,833
157,995
153,274
Loss on impairment / retirement of fixed
assets, net
5,288
3,896
18,067
10,275
Gain on sale of land
—
1
—
(155,250
)
342,308
316,555
1,492,504
1,297,441
Operating income
28,815
49,439
306,164
519,942
Interest expense
36,150
36,554
141,770
151,940
Net effect of swaps
—
—
—
(25,641
)
Loss on early debt extinguishment
—
—
—
1,810
(Gain) loss on foreign currency
(3,912
)
(452
)
(5,525
)
23,784
Other income
(1,267
)
(1,633
)
(2,683
)
(3,608
)
(Loss) income before taxes
(2,156
)
14,970
172,602
371,657
Provision for taxes
7,797
2,615
48,043
63,989
Net (loss) income
(9,953
)
12,355
124,559
307,668
Net (loss) income allocated to general
partner
—
—
1
3
Net (loss) income allocated to limited
partners
$
(9,953
)
$
12,355
$
124,558
$
307,665
CEDAR FAIR, L.P.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEET DATA
(In thousands)
December 31, 2023
December 31, 2022
Cash and cash equivalents
$
65,488
$
101,189
Total assets
$
2,240,533
$
2,235,897
Long-term debt, including current
maturities:
Notes
$
2,275,451
$
2,268,155
$
2,275,451
$
2,268,155
Total partners' deficit
$
(582,962
)
$
(591,602
)
CEDAR FAIR, L.P.
RECONCILIATION OF ADJUSTED
EBITDA
(In thousands)
Three months ended
Twelve months ended
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Net (loss) income
$
(9,953
)
$
12,355
$
124,559
$
307,668
Interest expense
36,150
36,554
141,770
151,940
Interest income
(1,297
)
(1,508
)
(2,818
)
(3,621
)
Provision for taxes
7,797
2,615
48,043
63,989
Depreciation and amortization
30,284
26,833
157,995
153,274
EBITDA
62,981
76,849
469,549
673,250
Loss on early debt extinguishment
—
—
—
1,810
Net effect of swaps
—
—
—
(25,641
)
Non-cash foreign currency (gain) loss
(3,920
)
(361
)
(5,594
)
23,856
Non-cash equity compensation expense
6,770
5,502
22,611
20,589
Loss on impairment/retirement of fixed
assets, net
5,288
3,896
18,067
10,275
Gain on sale of land
—
1
—
(155,250
)
Costs related to proposed merger (1)
17,275
—
22,287
—
Other (2)
468
1,944
752
3,064
Adjusted EBITDA (3)
$
88,862
$
87,831
$
527,672
$
551,953
(1)
Consists of third-party
investment banking, consulting and legal costs related to the
proposed merger with Six Flags. These costs are added back to net
(loss) income to calculate 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
costs are added back to net (loss) income to calculate 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.
CEDAR FAIR, L.P.
CALCULATION OF NET
DEBT
(In thousands)
December 31, 2023
Long-term debt, including current
maturities
$
2,275,451
Plus: Debt issuance costs
24,549
Less: Cash and cash equivalents
(65,488
)
Net Debt (1)
$
2,234,512
(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
Twelve months ended
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Attendance
5,776
5,309
26,665
26,912
In-park per capita spending (1)
$
58.61
$
63.33
$
61.05
$
61.65
Out-of-park revenues (1)
$
42,531
$
39,921
$
223,263
$
213,337
Operating days
377
376
2,365
2,302
(1)
In-park per capita spending is
calculated as revenues generated within the Company's 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 the Company's 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
Twelve months ended
(In thousands)
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
In-park revenues
$
338,549
$
336,233
$
1,627,906
$
1,659,183
Out-of-park revenues
42,531
39,921
223,263
213,337
Concessionaire remittance
(9,957
)
(10,160
)
(52,501
)
(55,137
)
Net revenues
$
371,123
$
365,994
$
1,798,668
$
1,817,383
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240215844049/en/
Investor Contact: Michael Russell, 419.627.2233 Media Contact:
Gary Rhodes, 704.249.6119
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