The third quarter for big US amusement parks operator Cedar Fair was positive despite the pandemic, CEO Richard Zimmerman reports.
“Despite the challenges, we continue to take positive steps to bridge the crisis and position the company for a return to historical performance levels as quickly as possible.”
He said that demand trends had continued to improve at the parks that had reopened and he was encouraged by the momentum gained heading into 2021. Attendance had progressed from a range of 20-25 per cent of comparable prior year levels upon the initial reopening of parks in late June and early July to 35-40 per cent over the past three months.
The company had suspended operations in March and this had made a significant impact upon the financial performance, but resumed operations at seven of its parks on a staggered basis from mid-June. Only two parks, Cedar Pointy and Kings Island, remained open after the Labor Day weekend, operating on weekends through to the beginning of November. In the third quarter, Knott’s Berry Farm reopened partially.
Six of the company’s 13 parks remain closed, reducing the operating days across the company to just 314 days, compared with 1,035 in the previous year period. Revenues to September 27 totalled $87m against $715m, reflecting an 11.9m visit decrease in attendance and a $47m decrease in out-of-park revenues.
In-park per capita spending went down by five per cent to $47.29 compared with $49.94, but there was an increase in per capita spend on food, merchandise and games, up 18 per cent.
Overall, the group showed an operating loss of $137m compared with an operating income of $275m through the 88 per cent decline in net revenues. The net loss was $136m compared with an income of $190m.
Zimmerman concluded by adding, “Our teams are fully committed to executing upon a strategy for 2021 that taps into what we believe will be meaningful pent-up consumer demand to visit our parks and experience what’s new and improved since their last visit.
"At the same time, we remain focused on maintaining a disciplined approach around cash outflows, identifying and driving incremental system-wide operating efficiencies, and investing in new capabilities aimed at capitalising on emerging shifts in consumer behaviour and preferences.”
