Cedar Fair (NYSE: FUN) reported first-quarter results earlier this week. As is typically the case, the amusement park master limited partnership operated at a loss with the majority of its parks closed during the cold weather season. Yet early second-quarter results point toward a strong year ahead.
Continue Reading Below
Cedar Fair results: The raw numbers
Data source: Cedar Fair Q1 2017 earnings press release.
Image source: Cedar Fair.
What happened with Cedar Fair this quarter?
Net revenue fell 17% year over year to $48 million, primarily due to the shift in timing of the Easter and spring-break holidays, which occurred in the second quarter of this year compared to mostly the first quarter of 2016. Cedar Fair's revenue was also negatively impacted by a decline in first-quarter attendance due to heavy rains in California.
Operating costs and expenses were $117 million, comparable with the year-ago quarter and in line with management's expectations.
In turn, the net loss increased to $65 million, or $1.16 per limited-partner unit, compared with a net loss of $48 million, or $0.87 per unit, for the prior-year quarter.
To normalize for the calendar shift, CEO Matthew Ouimet shared early-season attendance and revenue trends through the end of April during a conference call with analysts:
Ouimet also highlighted some of the strong performances of several of Cedar Fair's early opening seasonal parks:
Moreover, Ouimet noted that season pass revenue is up 10%, driven by both higher unit prices and unit sales.
Based on these results, Cedar Fair reiterated its goal of achieving $500 million of adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) by the end of 2017. Said Ouimet in a press release:
10 stocks we like better than Cedar FairWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Cedar Fair wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of May 1, 2017