Cedar Fair (NYSE: FUN) reported second-quarter results on Aug. 2.
The amusement park master limited partnership saw it's early season attendance figures hampered by poor weather, but management remains hopeful that a strong second-half performance will put Cedar Fair back on track.
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Cedar Fair results: The raw numbers
What happened with Cedar Fair this quarter?
- Net revenue rose 1.2% year over year to $393 million, mainly due to a 2% increase in attendance and a 3% increase in out-of-park revenues.
- Average in-park guest per capita spending was flat compared to the second quarter of 2016.
- Operating costs and expenses came in 1% higher at $246 million. In turn, operating income inched up 0.5% to $95 million.
- Net income -- which was impacted by a $23 million loss on the early extinguishment of debt -- fell to $31 million, or $0.55 per limited partner unit, compared to $58 million, or $1.03 per unit, in the year ago quarter.
- EBITDA -- adjusted to exclude the impact of debt extinguishment, interest rate swaps, foreign exchange, stock-based compensation, and certain other charges -- improved 1.7% to $150 million.
What management has to say
In a press release, CEO Matt Ouimet highlighted some of the key factors helping to fuel Cedar Fair's growth:
However, Ouimet said during a conference call with analysts that achieving $500 million in adjusted EBITDA this year "has gotten more difficult" as unfavorable weather negatively impacted early season attendance at several of Cedar Fair's parks.
Still, Ouimet is optimistic that Cedar Fair remains on track to deliver strong results in 2017:
Ouimet went on to note that Cedar Fair has roughly 40% of its anticipated full-year attendance still to come, so it's possible that the amusement park operator can make up for its early season shortfalls.
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