Cedar Fair(US:FUN)2025-11-07 14:00Financial Data and Key Metrics Changes - In Q3 2025, the company reported modified EBITDA of approximately $580 million and adjusted EBITDA of approximately $550 million, with attendance of 21.1 million guests and revenues of $1.32 billion [7][8] - Adjusted EBITDA was essentially flat year-over-year, with attendance up 1% and revenues down 2% [7][8] - The company expects full-year adjusted EBITDA to be in the range of $780 million to $805 million, reflecting a significant downward revision from earlier guidance [19][20] Business Line Data and Key Metrics Changes - Certain parks representing approximately 70% of property-level EBITDA have continued to outperform, while those representing roughly 30% have underperformed [9][10] - The outperforming parks saw a double-digit increase in modified EBITDA during Q3, driven by a 5% increase in combined attendance [12][13] - Underperforming parks experienced a 5% decline in attendance, which negatively impacted their EBITDA [12][13] Market Data and Key Metrics Changes - Attendance in September declined approximately 5%, or roughly 160,000 visits from the previous year, leading to a 5% decline in net revenues for that month [8][12] - Preliminary results for October indicated an 11% decline in attendance compared to the previous year, but a 7% increase when compared to October 2022 [17][18] Company Strategy and Development Direction - The company is focusing on optimizing revenues, operating costs, and capital expenditures, particularly in underperforming parks [10][12] - There is an ongoing evaluation of underperforming parks to determine if they should be classified as non-core and potentially monetized [10][16] - The company plans to reassess its marketing approach and improve the allocation of marketing spend by park and channel [22][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 has been a challenging year, but expressed confidence in the underlying strength of the business and the potential for future success [4][5] - The company is committed to making decisions that strengthen its long-term health, even if those decisions are difficult [16][24] - Management emphasized the importance of learning from 2025 to inform strategic initiatives for 2026 [22][56] Other Important Information - The company has standardized core safety, security, and operational protocols across its portfolio as part of its integration efforts [23][24] - A new unified digital platform has been launched to enhance customer experience and operational efficiency [23][24] Q&A Session Summary Question: How many parks are considered outperforming versus underperforming? - The outperforming parks represent 70% of EBITDA year-to-date, while the underperforming parks contain the majority of smaller properties [29] Question: What factors contributed to the $300 million difference in guidance? - The majority of the miss is attributed to attendance-driven factors, with significant volatility throughout the year [30][32] Question: What criteria determine when a park becomes non-core? - The evaluation process is ongoing, focusing on demand ramp-up potential and market-specific conditions [32][33] Question: What is the timeline for decisions on underperforming parks? - The company has a good idea of which parks may be classified as non-core and is moving with urgency on this process [36] Question: How does the company gather customer feedback? - The company relies on continuous research and feedback from customers to inform operational decisions and improvements [50][51]