Published Thu, 08 Nov 2018 13:13:44 -0500 on Seeking Alpha
Late last month Cedar Fair LP (FUN) released third quarter results, held its conference call, and announced that its annual distribution was increasing from $3.56 to $3.70. The increase was not too surprising, especially when one considers that CEO Richard Zimmerman reiterated the company's commitment to continue growing that annual distribution by 4% in a press release issued by Cedar Fair in early September (emphasis added by author):
"Strong performance in August driven by increases in attendance (+5%), guest spending (+1%) and out-of-park revenues (+7%).
Company reiterates its commitment to 4% distribution growth.
Cedar Fair... announced that preliminary results for the five weeks ended Monday, September 3, 2018, represented record revenues for the fiscal month of August.
For the five weeks, preliminary net revenues were $288 million, up 6%, or $17 million, when compared with the same period in 2017. This was the result of a 5%, or 255,000-visit, increase in attendance, a 1%, or $0.52, increase in average in-park per capita spending and a 7%, or $2 million, increase in out-of-park revenues, including resort accommodations."
Historical Perspective That early September press release, and the more recent press release, both included 2018 full year Adjusted EBITDA guidance of $460-$470 million. The guidance falls short of the company's initial long term target of $500 million used in a presentation made in early 2015. The 2015 presentation (see... Read more