New records for in-park per capita spending, sales of season passes and other all-season products set the stage for a strong second half and record full-year performance
SANDUSKY, Ohio, July 07, 2022--(BUSINESS WIRE)--Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and immersive entertainment, today reported preliminary net revenues year-to-date through Monday, July 4, 2022, totaled a record $704 million, up 20%, or $117 million, versus the comparable fiscal period ended Monday, July 8, 20191.
"Through the July 4th holiday weekend, we have continued to generate new highs for in-park per capita spending, as well as drive growth in our out-of-park revenue channels, most notably through our resort properties," said President and Chief Executive Officer Richard A. Zimmerman. "We are seeing attendance in line with expectations, driven largely by our season passes, which represent more than 60% of our year-to-date attendance, and average attendance per operating day at our legacy parks is pacing ahead of comparable 2019 levels. Our commitment to enhancing and evolving the guest experience continues to produce strong guest spending levels and solid underlying consumer demand, positive indicators as we approach the busiest and most profitable weeks of the season. We are well positioned to continue to drive record performance through the balance of the 2022 season as we expect to pick up a meaningful number of operating days during the second half of the year."
Given the material impact the coronavirus pandemic had on park operations in 2020 and 2021, year-to-date results through July 4, 2022 are not directly comparable to results for the same periods of the last two years. Total operating days through the July 4th weekend represented approximately 40% of the Company’s projected 2022 full-year operating days of approximately 2,315, which compare to 2,224 operating days in 2019, including approximately 80 additional operating days over the balance of 2022, versus the comparable period in 2019. The Company may adjust future park operating calendars in response to changes in weather, guest demand, labor availability, or other macro factors outside of the Company’s control.
The year-over-year increase in net revenues was driven by a 26%, or $12.13, increase in in-park per capita spending to a record $59.52, and a 20%, or $15 million, increase in out-of-park revenues to $88 million. These gains were offset in part by an attendance variance resulting from a slower recovery within the group sales channel, as well as the impact of 94 fewer operating days at the Company’s legacy parks due to a natural calendar shift and changes in early-season park operating schedules. The calendar shift and impact of group business contributed to a 507,000-visit, or 5%, attendance variance versus the comparable fiscal period in 2019. Overall, year-to-date attendance through the July 4th weekend totaled 10.7 million guests. Despite the recovery shortfall in group business, attendance per operating day at the Company’s legacy parks is up 2% year to date, reflecting the impact of strong demand trends within the season pass channel.
Sales of all-season products, as well as bookings at resort properties, remain strong. Through July 4th, sales of 2022 season passes surpassed three million units for the first time in the Company’s history, representing an increase of $80 million, or 31%, compared to the same period in 2019. Sales of all-season "add-on" products, such as all-season dining and all-season beverage, increased by $26 million, or 55%. Reservations at resort properties continue to pace well ahead of 2019 levels, reflecting the success of strategic investments made over the past several years.
Zimmerman added, "Our strong early-season trends indicate that consumer demand remains healthy and that guests are responding well to the quality and breadth of the entertainment experience we offer. This gives us confidence to push forward with our strategic priorities of investing in our properties to generate continued long-term growth, paying down debt, and reinstating a sustainable and growing distribution for unitholders. We are confident that a strong second half will position us well to make significant progress on these priorities and allow us to continue to enhance our guest experience while strengthening our financial structure and returning capital to unitholders."
The Company will provide investors with a performance update through the end of July when it announces 2022 second quarter financial results in early August.
1 Interim-period comparisons between 2019 and 2022 are impacted by a four-day calendar shift, which won’t completely reverse itself until later this year. To aid analysis, the table below (Exhibit 1) illustrates the comparison of year-to-date operating days through Monday, July 4, 2022, and Monday, July 8, 2019.
About Cedar Fair
Cedar Fair, L.P. (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.
Some of the statements contained in this news release that are not historical in nature constitute "forward-looking statements" within the meaning of 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. These forward-looking statements may involve risks and uncertainties 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 or that the Company's growth strategies will achieve the target results. Important factors, including the impacts of the COVID-19 pandemic, 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 its reports filed with the Securities and Exchange Commission (the "SEC") could affect attendance at the Company’s parks and the Company's growth strategies, and cause actual results to differ materially from the Company's expectations or otherwise to fluctuate or decrease. 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 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.
This news release and prior releases are available under the News tab at http://ir.cedarfair.com
Cedar Fair Legacy Parks'
First Quarter, As Reported
Fiscal April and May through Memorial Day (2)
Fiscal June and July through July 4th Holiday (3)
Cedar Fair Legacy Parks' Operating Days exclude the results from Schlitterbahn Waterpark and Resort New Braunfels and Schlitterbahn Waterpark Galveston (collectively, the "Schlitterbahn parks"), which were acquired on July 1, 2019. Of the total operating days, 120 operating days and 16 operating days were included for the Schlitterbahn parks for 2022 and 2019, respectively.
Fiscal April and May through Memorial Day represents results from March 28, 2022 through May 30, 2022 and results from April 1, 2019 through June 3, 2019 for 2022 and 2019, respectively.
Fiscal June and July through July 4th Holiday represents results from May 31, 2022 through July 4, 2022 and results from June 4, 2019 through July 8, 2019 for 2022 and 2019, respectively.
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Michael Russell, 419.627.2233
Gary Rhodes, 704.249.6119