Cedar Fair has reported its financial results for the first quarter of 2023, revealing declines in revenue and attendance due largely to unusually rainy weather in California.
“During the first quarter, rainy and cool weather impacted our California parks, resulting in a slower start to the season,” said Cedar Fair president and CEO Richard Zimmerman.
“Despite this, Cedar Fair is poised to capture the full potential of our upcoming busiest and most profitable days of the year, as the remaining three quarters typically account for 95 percent of full-year attendance and net revenues.”
As above, first quarter results typically represent around five percent of Cedar Fair’s full-year attendance and net revenues.
This is because most parks in the company’s portfolio are closed during the period, meaning Cedar Fair usually operates at a loss during the quarter.
Operating days in the first quarter of this year ending 26 March were 161, compared with 130 in the first quarter of 2022.
However, net revenues came to $85 million on attendance of 1.1 million guests for the first quarter of this year, compared with net revenues of $99m on attendance of 1.5 million guests for Q1 2022.
This drop was attributed to a decline in attendance at the company’s theme parks in California due to bad weather.
Cedar Fair has also reported an operating loss of $123m in Q1 2023 compared with an operating loss of $84m in the same period last year.
Inclement weather in California
Again, this was put down to the impact of the inclement weather on net revenues in Q1, as well as a $19m increase in operating costs and expenses compared with Q1 2022.
For the first quarter of 2023, Cedar Fair reported a net loss of $135m, compared to a net loss of $89m in the first quarter of 2022.
As for adjusted EBITDA, the company reported a loss of $101m in Q1 2023, compared with an adjusted EBITDA loss of $68m for the first quarter of 2022.
“As we fully reopen all our parks between now and Memorial Day, we are confident we will continue to build on the momentum we achieved last year,” Zimmerman added.
Images: Cedar Fair
