- 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, payableMarch 20, 2024
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 onMarch 20, 2024 , to unitholders of record onMarch 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
“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.
2023 Full-Year Results
Operating days in 2023 totaled 2,365 compared to 2,302 in 2022.
For the year ended
Operating costs and expenses for 2023 totaled
Depreciation and amortization expense in 2023 totaled
After the items noted above and a
Interest expense for 2023 totaled
Accounting for the items above, and after a
Adjusted EBITDA, which management believes is a meaningful measure of the Company’s park-level operating results, totaled
See the attached table for a reconciliation of net income to Adjusted EBITDA.
Balance Sheet and Liquidity Highlights
Deferred revenues on
As of
Distribution and Unit Repurchases
Today the Company announced the
During 2023, the Company repurchased approximately 1.7 million limited partnership units at a total cost of approximately
Conference Call
As previously announced, the Company will host a conference call with analysts starting at
Investors and all other interested parties can access a live, listen-only audio webcast of the call on the
A digital recording of the conference call will be available for replay by phone starting at approximately
(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
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
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
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
Important Information about the Transaction and Where to Find It
In connection with the mergers,
Cedar Fair Contacts:
Investor Contact:
Media Contact:
Alternate Media Contact:
Six Flags Contact:
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
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)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) |
|||||||||||||||
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
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 |
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET DATA (In thousands) |
|||||||
|
|
|
|
||||
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 |
) |
RECONCILIATION OF ADJUSTED EBITDA (In thousands) |
|||||||||||||||
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
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. |
CALCULATION OF NET DEBT (In thousands) |
|||
|
|
||
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. |
KEY OPERATIONAL MEASURES (In thousands, except per capita and operating day amounts) |
|||||||||||||||
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
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) |
|
|
|
|
|
|
|
||||||||
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:
Media Contact:
Source: