Posted Wednesday, April 29, 2015 8:11 AM | Contributed by Jeff
[Ed. note: The following is an excerpt of a press release. -J]
Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and active entertainment, reported record revenues for the first quarter ended March 29, 2015 and announced new long-term growth goals.
"While still early in the season, we are pleased with the record performance from our parks and the positive trends we have experienced through this past weekend," said Matt Ouimet, Cedar Fair's president and chief executive officer. "We have seen early-season strength across all aspects of our business, including season pass sales, hotel accommodations and group bookings. Additionally, our parks that are currently in operation have produced higher attendance and guest spending levels when compared with this same time last year.
"We are particularly pleased with the early-season performance at Carowinds and the introduction of Fury 325, a world-record-breaking roller coaster," added Ouimet. "At the same time, we're also very excited about the other new rides and attractions for 2015 that have yet to open, including Rougarou, our newest coaster experience at our flagship park, Cedar Point, and the latest addition to our 'Amusement Dark' ride portfolio, Voyage to the Iron Reef, at Knott's Berry Farm."
Along with Cedar Fair's regular investment in marketable new rides and attractions, several transformative long-term capital projects are also coming on line in 2015. At Cedar Point, guests will enjoy a multi-day visit to the park by staying in its newly renovated, 500-room historic Hotel Breakers on its mile-long, sandy beach. Also at Cedar Point, large groups will enjoy panoramic views of Lake Erie in the new 1,800-seat catering pavilion located adjacent to the hotel. Finally, a new modernized front gate and toll plaza at Carowinds allows for a more efficient way to enter the park and creates a powerful sense of arrival for its guests, who will experience the sting of Fury 325 before they ever walk through the front gate.
"We expect 2015 to be another record year for Cedar Fair," said Ouimet. "More importantly, we are confident the transformative long-term capital investments we have made, and continue to make, will provide a solid foundation for us to build upon for many years to come."
For the first quarter ended March 29, 2015, Cedar Fair's net revenues were $47 million, an increase of $6 million, or 16%, when compared with the first quarter ended March 30, 2014. Strong revenue trends were driven by the continued solid performance of Knott's Berry Farm, the Company's only year-round park, and strong opening weekends at Carowinds, Kings Dominion and Great America. In the quarter, the Company generated record attendance, along with increases in all revenue categories, including admissions, food and beverage, merchandise and games, and accommodations.
Operating costs and expenses for the first quarter of 2015 were $110 million, an increase of $3 million from the first quarter of 2014. The modest increase was primarily related to the strong unit price performance in the quarter and its impact on the reporting of non-cash equity-based compensation. The Company also saw a nominal increase in cost of goods sold due to the increase in attendance. Partially offsetting these increases, was a decrease in operating costs during the quarter, primarily related to the timing of maintenance projects and planned operating expenditures on 2015 initiatives.
The net loss for the quarter totaled $84 million, or $1.50 per diluted LP unit, comparable with the first quarter a year ago.
The Company also announced the declaration of a cash distribution of $0.75 per LP unit. The distribution will be paid on June 15, 2015, to unitholders of record as of June 3, 2015. The distribution is a result of the Company's strong performance and expectations for continued future growth and is consistent with its targeted record annualized distribution rate of $3.00 per LP unit for 2015.
"In early 2012, our management team presented our FUNforward strategic plan, targeting $450 million, or more, in Adjusted EBITDA by 2016. Fast forward to today and I am pleased to say that the solid execution of this plan has produced results ahead of our original expectations," said Ouimet. "Over the last year, we have worked actively to establish the next generation of FUNforward, which we believe will elevate Cedar Fair to the next level with Adjusted EBITDA targeted to grow to at least $500 million by 2018."
Ouimet continued, "To achieve that goal, our strategy remains hinged upon offering our guests the 'best day' experience on every visit, which manifests itself in every decision our team makes. We believe our dedication to the guest experience results in even greater free cash flow generation providing ample resources to increase our distribution annually while also meeting our current investment needs."
The Company has identified five themes that will drive growth going forward. In many cases, these themes represent the evolution of the themes and initiatives that have driven the Company's success over the past three years. They include:
"We expect our focus on these growth drivers will enable us to reach our new target Adjusted EBITDA of at least $500 million by 2018, which implies an average growth rate of 4% over the next four years and is consistent with our original FUNforward growth rates," Ouimet concluded. "Our sustainable and growing distribution remains a top priority as we strive to maximize value for our unitholders in both the near and long term."
Read the entire press release from Cedar Fair.
I regret selling my units when the company was circling the drain toward private equity. Thanks, Dick. At least you still got rich.
It makes me smile when I read about how well the company is doing. Then I remember we could've shared in this success had we not sold our shares.Last edited by ShaneDenmark, Wednesday, April 29, 2015 10:15 AM
Buy low, sell high.
That's true for people who bowed out of the stock market about that same time when the market crashed. A lot of those folks did just the opposite of what you want to do in investing: They bought high and sold low.Last edited by GoBucks89, Wednesday, April 29, 2015 10:42 AM
And generally speaking, that's exactly what I did, and really ramped up on the 401k contributions. But I really didn't see CF coming back. I'm glad that I was wrong, but still.
We bought pretty low, before the distributions stopped for a while there. We sold when it was in the toilet.
I hung in there and I'm glad I did. It paid for my new roof and will likely pay for most if not all of my wedding/honeymoon as well.
It makes me smile when I read about how well the company is doing. Then I remember we could've shared in this success had we not sold our shares.
At least you only sold stock shares. That guy above you who sold his unit lost something far more valuable.
(I'd vote my own post down if I could here...)
I didn't buy shares at any point high or low, nor did I sell any (by virtue of the fact that I never bought any).
Apathy wins again!Last edited by Lord Gonchar, Thursday, April 30, 2015 2:02 PM
My 401k's make me very glad I'm not apathetic.
Gonch's wife being a baller makes him very happy he can be apathetic.
OT but related to that image...
Sounds like my high school athletic teams...hey, at least they are undefeated since 1979...
(Columbus Alternative is prohibited from fielding teams because their population is city-wide and by application/lottery which could potentially lead to unfair recruitment. But the absence of such teams also inoculates the school against the inevitable failure...)
--Dave Althoff, Jr.
Siiigggghh, sadly no mention of Michigan's Adventure, the park right by my house; It is always the unmentioned, forgotten child of Cedar Fair. Looks really nice this year though!
TR-fixed that for you.
Yeah. Gold Striker, anyone? I missed it by a couple of weeks. I'm desperate to get back out there and experience that thing.
Well, that and more Flight Deck. What an unexpectedly great ride.
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