The Cedar Fair theme parks reported a record $193 million in first-quarter revenue this year, as the industry continues its recovery from the pandemic. However, since most of the company's parks operate seasonally and were not open during the first three months of the year, Cedar Fair posted an operating loss of nearly $84 million for the quarter. That's still an improvement over the $92 million operating loss from the first quarter of 2021.
The company said that its first-quarter revenue typically represents less than 5% of the full-year revenue for Cedar Fair. However, attendance at Cedar Fair's parks that were open during the quarter rose 24% to 1.45 million over the comparable three-month period at the start of 2019, driven by a 28% increase in the number of operating days. In-park spending per capita rose 28% to $58.86. As a result, net revenues were up 33% from the same quarter in 2019.
"Due to our outstanding recent performance, we have accelerated our post-pandemic recovery and are on pace to outperform our 2019 operating results," Cedar Fair President and CEO Richard A. Zimmerman said. "We are emerging from the pandemic stronger than ever, and the strategic decisions made over the past year position us well to renew Cedar Fair’s long-term track record of growth and value creation for our unitholders."
Cedar Fair also reported that its season pass sales were up $59 million at the end of April versus comparable 2019 levels, while sales of all-season "add-on" products were up $17 million.
"We expect compelling revenue growth in 2022 as we build on our previously announced initiatives to drive strong attendance and in-park purchases, price into demand, and create a more flexible, resilient Cedar Fair," Zimmerman said. "We expect to continue increasing margins with revenue growth outpacing operating costs and expenses, even as we further improve our parks and maintain staffing levels."
Cedar Fair's theme parks include Knott's Berry Farm, Cedar Point, and Kings Island.
* * *
We wanted you to read this article before we make our newsletter pitch, unlike so many other websites. If you appreciate that - and our approach to covering theme park, travel, and entertainment news - please sign up for our free, three-times-a-week email newsletter. Thank you.
I think there's quite a bit of spin on these numbers. While some parks were not open during the first quarter 2022, some did expand their operational calendars into March for the first time in history. That means those parks were generating revenue that had never been accrued before, especially following a year in 2021 where parks significantly curtailed their operational calendars and imposed attendance limits or required reservations.
As formeryogi has noted, this news seems rosy, but the reckoning will come on the back of the 2Q22 results where Cedar Fair will need to show significant gains over 2021 and the return of capital investments across the chain for 2023.
In the investors call, Zimmerman boasted that CF was able to retain a higher percentage of employees this summer due to the company's high pay rates last year. That's saved them on acquisition costs and gives CF a more experienced workforce coming into the summer, which management believes will lead to better efficiency and per cap numbers.
CF's Q1 reports and calls are typically the least relevant of the year, but it's better to start the season with some positive momentum, I guess.
Great post! Thank you for sharing this information about Cedar Fair and their financial ups and downs. We know that Cedar Fair is a world famous theme park built from humble beginnings. In addition, it is a high traffic park with millions of visitors a year. So I was interested to know about their financial condition. Actually, I am a professional online gamer, so I visit this https://jennycasino.com/ website constantly and regularly to find the latest game deals and game bonuses. They also shared the best casino that accepts Google Pay as a payment method. I believe that online games are one of the easiest ways to make money online.
This article has been archived and is no longer accepting comments.
This is the spring/summer of assessments.
We will really know in another couple months how well Cedar Fair is really doing when we start to hear rumblings about capital spending plans on new attractions for 2023.