Cedar Fair(US:FUN)2025-05-08 15:02Financial Data and Key Metrics Changes - The first quarter operating loss was greater than the combined loss of legacy companies in 2024, but only slightly above expectations in the operating plan [9] - First quarter attendance represented approximately 5.5% of full year attendance, and revenues were closer to 6% of full year revenues, which is below the historical expectation of 7% [16][17][50] - The company maintains its full year 2025 adjusted EBITDA guidance of $1,080 million to $1,120 million [24] Business Line Data and Key Metrics Changes - Attendance in April was up slightly more than 1% year-over-year, with an estimated impact of weather accounting for approximately 175,000 visits [18] - Per capita spending improved in April, consistent with higher attendance levels, and is expected to continue increasing as the season progresses [19][66] - Season pass sales showed positive momentum, narrowing the sales gap to prior year to approximately 2% in units sold and 3% in total sales [20] Market Data and Key Metrics Changes - Bookings at resort properties trended higher, up more than 10% compared to the same week last year, indicating strong consumer engagement [11] - The company expects to add 36 additional operating days in the second quarter compared to the previous year, which should enhance attendance and revenue opportunities [20] Company Strategy and Development Direction - The company is focused on executing its merger integration plan, optimizing cost structure, and enhancing guest experience to drive demand [12] - Plans to close the Maryland parks after the 2025 season align with the strategy to simplify operations and focus on high-margin parks [28] - The capital strategy remains disciplined, with expectations to invest approximately $1 billion in capital projects for 2025 and 2026 [31] Management's Comments on Operating Environment and Future Outlook - Management remains confident in achieving the 2025 performance goals despite macroeconomic uncertainties, supported by strong demand indicators [10][66] - The company is actively monitoring consumer behavior and has seen resilience in demand for its entertainment offerings [11][66] - Management highlighted the importance of cost management and anticipates operating costs and expenses to be down more than 3% this year [24][66] Other Important Information - The company ended the quarter with $62 million in cash and $179 million available under its revolving credit facility, with a gross debt of $5.3 billion [25] - The company incurred $15 million in non-recurring merger-related integration costs during the first quarter [21] Q&A Session Summary Question: How do you expect attendance and sales growth in the second quarter to compare to the additional operating days? - Management believes the second and third quarters present higher margin opportunities and expects strong demand during these periods [36][38] Question: Can you quantify the attendance impact from the Easter and Boysenberry Festival shifts? - Management noted that weather impacted attendance in April, but they expect to recover lost opportunities in May and June [39][40] Question: Can you clarify the first quarter attendance and revenue expectations? - The first quarter is not indicative of full year performance, with attendance tracking at 5.5% and revenue at 6% of full year expectations [50][51] Question: What are the expectations for asset sales and deleveraging? - Management anticipates significant proceeds from land sales, potentially exceeding a couple of hundred million dollars [70] Question: How is the company balancing price versus volume amid economic uncertainty? - Management is focused on maintaining a balance between pricing strategies and volume growth, with confidence in consumer demand [102]