Cedar Fair Q2 Earnings Miss Estimates As Low Attendance Affects Revenue

Cedar Fair LP FUN reported a second-quarter FY23 sales decline of 2% year-on-year to $500.98 million, missing the analyst consensus of $512.74 million.

The decrease in net revenues reflected the impact of a 6%, or 0.4 million-visit, decrease in attendance totaling 7.4 million guests in the quarter.

During Q2, the parks had 736 operating days compared to 708 in 2Q22.

In-park per capita spending was $61.46, representing a 3% increase over 2Q22 driven by higher levels of guest spending on admissions and food and beverage. 

The operating margin was 18.8%, and operating income for the quarter was $94 million. Adjusted EBITDA was $151 million.

The company held $49.2 million in cash and equivalents as of June 25, 2023.

Earnings per unit of $1.04 missed the analyst consensus of $1.10.

On May 4, 2023, the Board authorized additional unit repurchases of up to $250 million.

"Unfortunately, anomalous weather patterns – including unprecedented rainfall in California and wildfires in Canada – have significantly disrupted year-to-date attendance, as well as sales of 2023 season passes, creating a headwind on demand," said President and CEO Richard Zimmerman.

For the five weeks ended July 30, 2023, preliminary net revenues declined 2% to $414 million.

The July revenues reflect a 2% increase in in-park guest per capita spending, flat out-of-park revenues, and a 4%, or 219,000-visit, decrease in attendance.

Price Action: FUN shares closed lower by 2.86% at $37.69 on Wednesday.