Ohio-based entertainment company Cedar Fair has announced record revenues for the second quarter of 2017.
Cedar Fair reported net revenues of $393 million for the second quarter ended June 25, 2017. That figure equates to $5 million higher than the previous period last year.
Attendance for the month of July was up 2 percent, an extra 106,000 visits.
Cedar Fair remains confident with regard to its long-term business strategy. 2017 is on target to become another successful year, the eighth consecutive year of record results.
“We continue to see the resilience of our business model and the underlying demand for our products remains strong,” said Matt Ouimet, CEO of Cedar Fair. He explains that the company’s investment in new rides and attractions, alongside special events and high-quality group catering facilities set Cedar Fair apart.
“We have also enhanced our water park business model by improving the overall guest amenities and increasing the quality and capacity of our food and beverage offerings within these venues,” he says. The expansion of the operating season into November and December, the popularity of Halloween events and the introduction of WinterFest at three more parks in 2017 have also contributed.
“Our confidence is supported by several data points, including our strong performance over the last five weeks, record advance purchase commitments including sales of season passes and our all-season dining and beverage programs, and second-quarter deferred revenues which are up $20 million (12 percent), from the prior year,” says Ouimet. “We are coming off of one of our best Julys in the company’s history.”
By maintaining these trends, he expects the company will be able to achieve its long-term Adjusted EBITDA goal of $500 million “a year earlier than originally planned.”
The company announced a quarterly cash distribution of $0.855 per Limited Partner (LP) unit which will be payable September 15, 2017. This is consistent with its annualized rate of $3.42 per LP unit.
“We remain focused on delivering strong returns and will continue to prudently manage our cash flows to maximize value for our unitholders through a combination of cash distributions and organic growth opportunities,” says Ouimet.
Cedar Fair Entertainment Company is one of the largest regional amusement-resort operators in the world. The Company owns and operates 11 amusement parks including its flagship park, Cedar Point, alongside two outdoor water parks, one indoor water park and five hotels. Its parks are located in Ohio, California, North Carolina, South Carolina, Virginia, Pennsylvania, Minnesota, Missouri, Michigan and Toronto, Ontario.