Cedar Fair today reported dismal financial results for the most recent quarter, as expected. The report comes one day after Cedar Fair announced substantial cuts in operating hours across its theme parks, including news that four of its parks would not open in 2020.
In the three months ending June 28, Cedar Fair reported $6.586 million in revenue, down over 98 percent from $436.19 million in the same period in 2019. The company reported an operating loss of more than $142 million for the quarter.
With almost all of its parks closed during the period due to the pandemic, Cedar Fair reported attendance of just 38,000 visitors for the quarter, compared with 8.5 million during the second quarter of 2019. The only Cedar Fair parks open for any part of June were Worlds of Fun and the Schlitterbahn water parks. Several other Cedar Fair parks - including flagship Cedar Point in Sandusky, Ohio - reopened in July.
"I am proud and inspired by the way our team has risen to the challenge of this season and confident we will emerge on the other side better positioned for future success," Cedar Fair President and CEO Richard A. Zimmerman said. "In very uncertain market conditions, we are pleased to have opened to date seven of our 13 properties, all following the recommended protocols designed to provide our guests and associates with the safest entertainment environment possible. Upon reopening these parks, we have managed to generate modest positive cash flow by adjusting operating calendars to better meet demand, consolidating seasonal labor hours into fewer operating days, implementing effective cost saving measures, and creatively generating incremental revenues within our parks and adjacent facilities.
"Where possible, we will continue to actively work with authorities in an attempt to get additional parks open yet this season, while at the same time building operating plans and programming for the 2021 season that will meet evolving consumer tastes and needs," said Zimmerman.
Yesterday, Cedar Fair announced that:
That leaves the fates of Knott’s Berry Farm and Canada’s Wonderland to be determined. The Toronto-area park has not opened yet for the 2020 season, and the Knott's has not reopened fully since closing due to the pandemic in March. However, Knott's recently opened its gates for several weekend outdoor food festivals, taking advantage of California's approval for outdoor dining in the state.
“New programming like this reflects our ability to adapt to a changing market, giving us a chance to reinforce our brand positioning and stay connected with our guests,” Zimmerman said of the Knott's events. "We will continue to evaluate other opportunities to introduce similar experiences at other parks in our portfolio going forward."
Cedar Point previously announced it will extend all 2020 Season Passes and add-on products through the end of the 2021 season. At parks not opening in 2020, passholders will also receive a Pass Perks Loyalty Reward valid for in-park purchases next year.
Cedar Fair said that it anticipates having sufficient liquidity to meet its cash obligations through the end of 2021, even if all its parks are forced to close.
"Regardless of the park operating model, we will continue to explore ways to enhance our liquidity position and reduce cash outflows," Zimmerman said.Tweet
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