Net Income Drops by $118 M

On November 2, 2023, Cedar Fair LP (FUN, Financial) released its financial results for the third quarter ended September 24, 2023. Despite a decrease in net income, the company saw a 7% increase in Adjusted EBITDA.

Financial Performance

Net revenues for the third quarter totaled $842 million, a slight decrease of $1 million from the third quarter of 2022. Net income was $215 million, a significant decrease of $118 million from the third quarter of 2022, primarily due to a $155 million prior period gain recognized on the sale of the land at California’s Great America. Adjusted EBITDA, however, totaled $388 million, an increase of $27 million, or 7%, from the third quarter of 2022.

Attendance and Spending

Attendance for the third quarter totaled 12.4 million guests, an increase of 1%, or 129,000 guests, from the third quarter of 2022. In-park per capita spending was $61.65, a 2% decrease from the third quarter of 2022, due to a reassessment of pricing strategies and the recovery of lower priced attendance channels. Out-of-park revenues totaled $99 million, representing a $2 million, or 2%, increase from the third quarter of 2022.

October 2023 Performance

For the five-week period ended October 29, 2023, preliminary net revenues totaled $226 million, a decrease of $1 million, or less than 1%, from the comparable five-week period in 2022. Attendance for the five-week period totaled 3.3 million guests, an increase of 2%, or 69,000 guests, from October of 2022.

Merger with Six Flags

In addition to its earnings report, Cedar Fair LP (FUN, Financial) announced a definitive agreement to merge with Six Flags to create a leading amusement park operator in North America. The combined company will expand its footprint, enhance the resilience of its business model, and bolster its financial profile to drive in-park investments.

CEO Commentary

“The strength and resiliency of our business model was on full display during our peak attendance and revenue months, as we delivered another strong performance and positioned Cedar Fair for a great finish to 2023,” said Cedar Fair President and CEO Richard A. Zimmerman. “Our rapid recovery during the third quarter, combined with our meaningful cost-saving measures, helped offset attendance and revenue shortfalls experienced earlier in the year and put us back on track to deliver another very strong performance in 2023.”

Explore the complete 8-K earnings release (here) from Cedar Fair LP for further details.