The business of Cedar Fair Entertainment Company, owner of Dorney Park and Wild Water Kingdom, typically begins gearing up for the second fiscal quarter and this year was no exception. Of course, 2021 was an exception – negatively – but the pandemic ruined many companies’ financial reports that year.
In the first quarter of 2022, Cedar Fair’s liquidity posed a potential problem, but the company recovered well this quarter, increasing liquidity from $284 million to $319 million, thanks to a $75 million increase available cash.
The company recorded a record 3.2 million season tickets sold for the 2022 season and, combined with strong bookings at its resort properties, these metrics support a strong outlook for Cedar Fair’s busiest time.
Separately on Wednesday, the company announced its updated capital allocation strategy, including the declaration of a cash distribution of $0.30 per limited partner (LP) unit payable on September 15, 2022 to registered unitholders. as of August 31, 2022, and the board’s decision to repurchase up to $250 million of Cedar Fair units.
Cedar Fair President and CEO Richard Zimmerman said in a statement, “The strength and pace of our post-pandemic recovery, supported by our strong first-half operating performance, allowed us to generate strong financial results and advance our key strategic priorities. Since resuming full-fleet operations, we have generated strong free cash flow that has allowed us to repay the equivalent of 75% of the debt we incurred during the pandemic, continue to reinvesting in our parks and resort properties to further enhance the guest experience, and implemented a capital allocation strategy focused on returning capital to unitholders.
Second Quarter 2022 Highlights
Because 2021 and 2020 were such unusual years, Cedar Fair compares the results with 2019, its last normal year, in addition to the previous year’s results in 2021. Compared to 2021, this year Cedar Fair has crushed, but results are more mixed compared to 2019 Also, the 2022 results compared to 2019 show the effects of inflation.
Attendance totaled 7.8 million guests, an increase of 4.4 million guests compared to the second quarter of 2021. Compared to the second quarter of 2019, attendance fell by 654,000 guests, or 8%. Per capita spending in the park in 2022 reached a record $59.52, a 6% increase from the second quarter of 2021. Compared to the second quarter of 2019, per capita spending in the park increased 26%, due to double-digit percentage increases across all major revenue categories.
Non-fleet revenue for the second quarter of 2022 reached a record $60 million, an increase of $19 million from the second quarter of 2021. Compared to the second quarter of 2019, non-fleet revenue increased by $10 million, or 21%.
Net revenue for the second quarter ended June 26 totaled a record $509 million, an increase of $285 million from the second quarter of 2021. Compared to the second quarter of 2019, net revenue increased by $73 million, or 17%.
Net income was $51 million, an increase of $110 million from the second quarter of 2021. Compared to the second quarter of 2019, net income decreased by $13 million. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) totaled $171 million, an increase of $169 million compared to the second quarter of 2021. Compared to the second quarter of 2019, adjusted EBITDA increased by $7 million. dollars, or 5%.
Highlights of the first seven months of 2022
“While demand for our parks is the foundation of our success, one of our primary goals is to drive revenue growth by optimizing both visitor attendance and spending levels,” Zimmerman said. “By strategically investing in our business and vastly improving the customer experience, we achieved new highs for in-fleet per capita spending and out-of-fleet revenue, resulting in record net revenues in the first seven months. of the year.”
Attendance for the first seven months of the year totaled 15.4 million guests, an increase of 6.8 million guests compared to the comparable period of 2021. Compared to the same seven-month period in 2019, attendance decreased by 1.0 million guests, or 6%.
Per capita spending in the park for the seven months reached a record $60.76, an increase of 2% over the comparable seven-month period in 2021. Compared to the first seven months of 2019, spending per capita in the park increased by 25%.
Non-fleet revenue for the seven-month period reached a record $125 million, an increase of $33 million over the comparable period in 2021. Compared to the same seven-month period in 2019, Non-fleet revenue increased by $20 million. , or 19%. Through the end of July, sales of all-season products, including all-season meals and all-season beverages, continued to grow well ahead of the previous record set for the sale of complementary products for season passes .
For the seven-month period ended July 31, 2022, preliminary net revenue totaled a record $1.03 billion, an increase of $441 million over the comparable seven-month period in 2021. for the seven-month period ended August 4, 2019, net revenues increased $152 million, or 17%.
Zimmerman concluded, “With the momentum we’ve built in the first half of the year, combined with over three million season tickets in the hands of our customers for the very first time and strong trends in occupancy at our resort properties, we are well positioned for a strong year-end. Our solid performance over the past 12 months gives us the financial strength and flexibility to accelerate our strategic priorities and significantly strengthen the core of our company.
Cedar Fair Entertainment Company (NYSE: FUN), one of the world’s largest regional entertainment center operators, is a publicly traded partnership based in Sandusky, Ohio. The company owns and operates 13 amusement parks, as well as two outdoor water parks, one indoor water park and five 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, Texas and Toronto, Ontario.