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Cedar Fair Reports Record Net Revenues for 3rd Qtr 2021


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https://finance-yahoo-com.cdn.ampproject.org/v/s/finance.yahoo.com/amphtml/news/cedar-fair-reports-record-net-080000587.html?amp_gsa=1&amp_js_v=a6&usqp=mq331AQIKAGwASCAAgM%3D#amp_tf=From %1%24s&aoh=16360256321536&csi=1&referrer=https%3A%2F%2Fwww.google.com&ampshare=https%3A%2F%2Ffinance.yahoo.com%2Fnews%2Fcedar-fair-reports-record-net-080000587.html

  • Demand remains strong through October Halloween events
  • Record in-park per capita spending driven by sustained guest spending levels
  • Record pace set for early sales of 2022 season passes and related all-season products
  • With strong results, positive momentum and bright outlook, Cedar Fair expects to pay down debt in the near future and resume quarterly cash distributions longer-term
  • Net revenues for the third quarter ended Sept. 26, 2021, totaled a record $753 million, up 5% from the third quarter of 2019, driven by:
  • Attendance that approximated 82% of 2019 third-quarter levels;
  • Record in-park per capita spending of $64.26, representing a 29% increase over 2019 third quarter spending levels, with double-digit increases across all key revenue categories; and
  • A 9%, or $7 million, increase in out-of-park revenues versus the comparable period in 2019.
  • Net income and Adjusted EBITDA(1) for the 2021 third quarter totaled $148 million and $333 million, respectively, compared with $190 million and $355 million, respectively, for the 2019 third quarter.
  • For the five-week period ended Oct. 31, 2021, net revenues totaled approximately $219 million, an increase of $65 million, or 42%, from the comparable period in 2019.
  • Early sales of 2022 season passes and all-season products are pacing ahead of the then-record pace set in the Fall of 2019 for the sale of 2020 season pass products.

 

Cedar Fair President and CEO Richard A. Zimmerman, said, "The strong demand and consumer spending trends we previously reported through Labor Day weekend continued in September and October, as our parks hosted their very popular Halloween events. Since the end of the second quarter, revenues have outpaced the record revenues of the comparable 18-week period in 2019 by 12%, or more than $104 million, driven primarily by record levels of guest spending.

"Cedar Fair’s outstanding results clearly reflect the dedication of our incredible team. I couldn’t be prouder of how the team delivered, especially considering the very unique and difficult challenges we’ve overcome. Our talented people are the primary reason our parks and resort properties continue to set the standard for regional, family-focused entertainment."

Zimmerman continued, "We are also pleased with the early sales of our 2022 season passes and all-season products, which continue to outpace the comparable record sales period in 2019. Early season pass sales have been a reliable leading indicator of the following year’s demand, which bodes well for the 2022 season. Our parks’ quick recovery from the COVID-19 disruption underscores the resiliency of our business model and has unlocked additional strategic options we are evaluating from a position of strength. Based on our positive momentum and outlook, we believe Cedar Fair is well positioned to begin paying down debt in the near future and to reinstate quarterly cash distributions to unitholders by no later than the first quarter of 2023."

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They are coming out of the pandemic much stronger than most expected.

Record pace for 2022 season pass sales and add-ons will mean that the crowds seen this year will continue.  Good thing for CF, but bad for those that liked a typical slow Tuesday.  Demand will continue to increase everyday of the week.

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Per the conference call, daily ticket prices increased and discounts were discontinued.  Average in park spending is up.  No discounted Kroger tickets.  Attendance up, spending up.

 

Giving away the gate takes place with pass sales.  I would gladly welcome a price increase for gold and platinum for a better experience, but their financial performance in the quarter shows they are on the right path.

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I remember when passes for just CP were expensive to get into and it was a great experience and they cracked the 300' and 400' barriers in a few years.  They were making plenty of money with that business model and not having fights, not waiting in long food lines, etc.

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16 minutes ago, BeeastFarmer said:

Per the conference call, daily ticket prices increased and discounts were discontinued.  Average in park spending is up.  No discounted Kroger tickets.  Attendance up, spending up.

 

Giving away the gate takes place with pass sales.  I would gladly welcome a price increase for gold and platinum for a better experience, but their financial performance in the quarter shows they are on the right path.

$100 Gold April - August

$200 Platinum April - December 

Also throw in some perks like Dolly does for their Gold on our Platinum and it’s a fair trade.

It’s a little late in the game for KI to do this, but hindsight is 20/20.

 

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55 minutes ago, BoddaH1994 said:

$100 Gold April - August

$200 Platinum April - December 

Also throw in some perks like Dolly does for their Gold on our Platinum and it’s a fair trade.

It’s a little late in the game for KI to do this, but hindsight is 20/20.

 

As much as i dislike how Disney has been profit mongering with this new lunacy they are pulling now, I would like to see a more Mouse-esque method in regards to passes.  My ideal would be:

Gold passes discontinued, notably at Cedar Point

$400-600 Platinum Passes

Same or slightly increased pricing for all season FL+

The perks you mentioned I do agree with, and taking these steps will make the increased Platinum prices (which we all know are obscenely low currently) worth it, and will most definitely improve the guest experience with the same level of income (fewer people in the park, with the same or higher revenue).

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