Pandemic shutdowns have cost Cedar Fair a great deal but investors are expecting a continued rebound to show in its next earnings report.
Cedar Fair (NYSE: FUN) was hit pretty hard by the pandemic, recording net revenues of $182 million for FY2020, down a staggering 88% year-over-year (YoY); all after having a great year with record attendance in 2019. This was the result of a 25.3 million visitor decrease and a 60% decline in out-of-park revenues. All parks were closed in March of last year and only re-opened on a sporadic basis in June 2021, with limited hours and attendance, and this resulted in a 4% decrease in in-park per capita spending.
On the bright side, it also helped Cedar Fair lower its operating costs and expenses by 51%. Even so, the company recorded an operating loss of $572 million, as opposed to an operating income of $309 million in the previous year. All of this trouble translated to only a 27% decrease in the stock price in 2020 as investors never lost confidence in the company’s ability to bounce back. In the last quarter (Q1 2021), the company reported an 81% decrease in revenue that can be attributed to the fact that Cedar Fair is honoring park passes that couldn’t be used during the pandemic.
Still, the company’s stock price is up 10% year-to-date (YTD), further demonstrating investor confidence as Cedar Fair plans to report earnings at the beginning of August.
When is Cedar Fair’s Q2 Earnings Date?
Cedar Fair reports earnings for the second quarter of 2021 on Wednesday, 4 August, at 10:00 AM Eastern Time.
How can I listen to Cedar Fair’s earnings call?
You can access the call as well as the shareholder’s letter and financial statement at Cedar Fair’s investor relations page.
What to expect from Cedar Fair’s earnings
Analysts are expecting the company to operate at a loss all this year but are expecting a bump in both EPS and sales. For EPS, the projected figure is -$1.43, up 27% from the last quarter and 40% YoY; and the expected sales number is $220 million, up over 2,100% from last quarter and over 3,200% YoY. The pandemic had an impact on company salaries costing the CEO, Richard Zimmerman, a 40% reduction in pay.
Cedar Fair’s long-time legal chief announced his resignation when his salary was reduced by nearly 60%. As for employees, Cedar Fair recently doubled its starting pay to $20 per hour to fully staff its parks for the vital summer season and hoping to convert seasonal workers to year-round employees. Outside of amusement parks, the company also owns 2,300 resort hotel rooms and 600 luxury RV sites which are all booking up quickly at premium rates.
With 17 different amusement parks operating all around the U.S., Cedar Fair expects huge crowds as a reaction to the world reopening. To facilitate business, health checks have been discontinued and mask mandates have been lifted for vaccinated guests.
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