Cedar Fair, L.P. (FUN) Bundle
A Brief History of Six Flags Entertainment Corporation
Corporate Formation and Early Years
Six Flags Entertainment Corporation, originally founded as Six Flags Over Texas in 1961, has evolved into a leading amusement park operator in North America. The company expanded rapidly throughout the 1960s and 1970s, acquiring several parks and diversifying its offerings.
Recent Developments and Mergers
On July 1, 2024, Six Flags merged with Cedar Fair, creating a combined entity that aims to enhance operational efficiencies and guest experiences across its parks. This merger positioned Six Flags to leverage Cedar Fair's extensive portfolio, including amusement parks, water parks, and resorts.
Financial Performance
As of September 29, 2024, Six Flags reported a net income attributable to the corporation of $110.966 million for the three months ended, with a diluted net income per share of $1.10. This compares to a net income of $215.494 million for the same period in 2023, highlighting the impact of increased costs associated with the merger.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $110.966 million | $215.494 million |
| Net Income per Share (Diluted) | $1.10 | $4.21 |
| Adjusted EBITDA | $169.5 million (increase) | $842.009 million (total revenue) |
Capital Structure and Debt Obligations
As of September 29, 2024, Six Flags' total long-term debt was approximately $3.872 billion, with significant refinancing activities completed as part of the merger. The company’s capital expenditures for 2024 are anticipated to be between $100 million and $110 million for the fourth quarter alone, with projections of $500 million to $525 million for 2025.
| Debt Type | Amount | Maturity Date |
|---|---|---|
| Senior Secured Term Loan | $1.0 billion | July 1, 2029 |
| 2027 Senior Unsecured Notes | $500 million | April 2027 |
| 2028 Senior Unsecured Notes | $300 million | October 2028 |
| 2029 Senior Unsecured Notes | $500 million | July 2029 |
Operational Highlights and Market Presence
As of late 2024, Six Flags operates 27 parks across North America, including major locations in Texas, California, and New Jersey. The company generated net revenues of $1.348 billion for the three months ended September 29, 2024, showcasing robust performance despite challenges from increased operational costs.
| Operational Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenues | $1.348 billion | $842 million |
| Domestic Net Revenues | $1.210 billion | $779 million |
| Foreign Net Revenues | $137.936 million | $85.995 million |
Future Outlook
The company's strategic focus post-merger includes enhancing guest experiences through improved attractions and expanded offerings, alongside maintaining a strong financial position to support future growth.
A Who Owns Cedar Fair, L.P. (FUN)
Ownership Structure
The ownership of Cedar Fair, L.P. has undergone significant changes due to the merger with Former Six Flags Entertainment Corporation, which was completed on July 1, 2024. This merger resulted in the creation of a new entity, known as Six Flags Entertainment Corporation, which now trades under the ticker symbol "FUN" on the New York Stock Exchange.
Major Shareholders
As of September 29, 2024, the major shareholders of Cedar Fair, L.P. include both institutional and individual investors. The following table outlines the significant shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Shareholder |
|---|---|---|
| BlackRock, Inc. | 10.5% | Institutional |
| The Vanguard Group, Inc. | 9.8% | Institutional |
| State Street Corporation | 7.2% | Institutional |
| Wellington Management Group LLP | 6.1% | Institutional |
| FMR LLC (Fidelity) | 5.4% | Institutional |
| Individual Shareholders | 61.0% | Individual |
Financial Overview
The merger has led to a substantial increase in the financial performance of the combined entity. For the nine months ended September 29, 2024, the following financial metrics were recorded:
| Financial Metric | Amount (in thousands) |
|---|---|
| Net Revenues | $2,021,616 |
| Operating Income | $259,425 |
| Net Income | $33,052 |
| Attendance (in millions) | 30.955 |
| In-Park Per Capita Spending | $61.21 |
| Operating Days | 3,491 |
Debt Obligations
As a result of the merger, Cedar Fair's long-term debt obligations have also changed significantly. As of September 29, 2024, the following debt obligations were recorded:
| Debt Obligation | Amount (in thousands) |
|---|---|
| Senior Secured Term Debt | $1,000,000 |
| 2027 Senior Unsecured Notes | $500,000 |
| 2028 Senior Unsecured Notes | $300,000 |
| 2029 Senior Unsecured Notes | $500,000 |
| 2025 Senior Secured Notes | $200,000 |
| 2027 Senior Unsecured Notes | $500,000 |
| 2031 Senior Unsecured Notes | $800,000 |
Recent Developments
The merger has positioned Cedar Fair, L.P. as a leading operator in the amusement park industry, enhancing its property portfolio and operational capabilities. The strategic integration of Former Six Flags operations is expected to generate increased revenues and improved operational efficiencies moving forward.
Cedar Fair, L.P. (FUN) Mission Statement
Mission Statement Overview
Cedar Fair, L.P. aims to provide unparalleled entertainment experiences through world-class amusement parks and water parks. The company focuses on delivering exceptional service, innovative attractions, and memorable experiences that create lasting memories for guests of all ages.
Financial Performance and Key Metrics
As of September 29, 2024, Cedar Fair's financial performance reflects significant growth driven by the merger with Former Six Flags operations. The following table outlines key financial metrics for the company:
| Metric | Three Months Ended September 29, 2024 | Three Months Ended September 24, 2023 | Increase/Decrease ($) | Increase/Decrease (%) |
|---|---|---|---|---|
| Net Revenues | $1,348,385,000 | $842,009,000 | $506,376,000 | 60.1% |
| Operating Costs and Expenses | $894,182,000 | $467,430,000 | $426,752,000 | 91.3% |
| Depreciation and Amortization | $144,560,000 | $65,936,000 | $78,624,000 | 119.2% |
| Loss on Impairment of Goodwill | $42,462,000 | $0 | $42,462,000 | N/M |
| Operating Income | $262,510,000 | $306,625,000 | ($44,115,000) | (14.4)% |
| Attendance | 20,971,000 | 12,433,000 | 8,538,000 | 68.7% |
| In-Park Per Capita Spending | $61.27 | $62.70 | ($1.43) | (2.3)% |
| Out-of-Park Revenues | $102,265,000 | $85,995,000 | $16,270,000 | 18.9% |
| Operating Days | 2,585 | 1,091 | 1,494 | 136.9% |
| Net Income Margin | 10.0% | 25.6% | (15.6)% | N/M |
Strategic Goals
- Enhance Guest Experiences: Continuous improvement of customer service and park experiences.
- Expand Attractions: Invest in new rides and experiences to attract more visitors.
- Increase Operational Efficiency: Streamline operations to reduce costs while maintaining quality.
- Drive Revenue Growth: Focus on both in-park and out-of-park revenue streams to enhance profitability.
Recent Developments
As part of its strategic growth, Cedar Fair's merger with Former Six Flags has significantly altered its operational landscape. The merger has resulted in an increase of 10.1 million visits, contributing to a substantial rise in net revenues. Additionally, operating days increased to 3,491, reflecting the expanded operational capacity following the merger.
Conclusion on Financial Position
Cedar Fair's financial position as of September 29, 2024, shows a robust trajectory with a net income of $135,465,000 and a significant increase in attendance and revenues compared to the previous year. The company's commitment to enhancing guest experiences, expanding attractions, and driving operational efficiencies positions it well for future growth in the competitive amusement park industry.
How Cedar Fair, L.P. (FUN) Works
Financial Overview
Cedar Fair, L.P. reported net revenues of $2,021,616 thousand for the nine months ended September 29, 2024, an increase of $594,071 thousand or 41.6% compared to the same period in 2023. Operating income for the same period was $259,425 thousand, a decrease of $17,924 thousand or (6.5%) year-over-year.
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenues | $2,021,616 | $1,427,545 | $594,071 | 41.6% |
| Operating Income | $259,425 | $277,349 | ($17,924) | (6.5%) |
| Net Income | $111,000 | $215,500 | ($104,500) | (48.5%) |
| Attendance | 30,955,000 | 20,889,000 | 10,066,000 | 48.2% |
| In-Park Per Capita Spending | $61.21 | $62.94 | ($1.73) | (2.7%) |
| Operating Days | 3,491 | 1,988 | 1,503 | 75.6% |
Operational Insights
Cedar Fair operates a portfolio of amusement parks, water parks, and hotels across the United States and Canada. As of September 29, 2024, the company had 3,491 operating days, reflecting an increase of 1,503 days compared to 2023. The increase in attendance was attributed to the acquisition of former Six Flags operations and enhanced offerings at existing parks.
Revenue Breakdown
For the nine months ended September 29, 2024, out-of-park revenues reached $184,623 thousand, a rise of $29,257 thousand or 18.8% from the previous year. This growth was driven by increased hotel occupancy and event bookings.
| Revenue Source | 2024 ($ thousands) | 2023 ($ thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| In-Park Revenues | $1,837,993 | $1,271,179 | $566,814 | 44.6% |
| Out-of-Park Revenues | $184,623 | $155,366 | $29,257 | 18.8% |
Cost Structure
Operating costs and expenses totaled $1,496,436 thousand for the nine months ended September 29, 2024, marking an increase of $486,730 thousand or 48.2% from the prior year. This increase was primarily driven by operational costs associated with the newly acquired parks and higher costs related to staffing and supplies.
| Cost Type | 2024 ($ thousands) | 2023 ($ thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Operating Costs | $1,496,436 | $1,009,706 | $486,730 | 48.2% |
| Depreciation and Amortization | $211,887 | $127,711 | $84,176 | 65.9% |
Debt and Financial Obligations
As of September 29, 2024, Cedar Fair's long-term debt was approximately $4,574,507 thousand. Key components of this debt include:
- $1.0 billion senior secured term loan, maturing in May 2031.
- $500 million of 5.375% senior unsecured notes, maturing in April 2027.
- $800 million of 7.250% senior unsecured notes, maturing in May 2031.
Liquidity Position
The combined company has sufficient liquidity to meet obligations through the fourth quarter of 2025, with projected capital expenditures between $100 million and $110 million for Q4 2024, and $500 million to $525 million in 2025. Cash interest payments are expected to range from $110 million to $115 million in Q4 2024.
| Liquidity Metrics | 2024 ($ millions) | 2025 ($ millions) |
|---|---|---|
| Capital Expenditures | $100 - $110 | $500 - $525 |
| Cash Interest Payments | $110 - $115 | $305 - $315 |
| Cash Payments for Income Taxes | $45 - $50 | $130 - $140 |
Market Performance
Cedar Fair's stock (FUN) has shown resilience post-merger. The company continues to adapt its operational strategies to enhance guest experiences and drive revenue growth.
How Cedar Fair, L.P. (FUN) Makes Money
Revenue Streams
Cedar Fair, L.P. generates revenue through multiple streams, primarily from:
- Admission Fees: Revenue from ticket sales for amusement and water parks.
- In-Park Spending: Revenue from food, merchandise, games, and accommodations.
- Out-of-Park Revenues: Includes hotel stays and other services provided outside of park admissions.
- Extra-Charge Products: Premium offerings such as front-of-line passes and special experiences.
Financial Performance (2024)
For the nine months ended September 29, 2024, Cedar Fair reported:
| Financial Metrics | September 29, 2024 | September 24, 2023 | Increase/Decrease |
|---|---|---|---|
| Net Revenues | $2,021,616,000 | $1,427,545,000 | $594,071,000 (41.6%) |
| Operating Costs and Expenses | $1,496,436,000 | $1,009,706,000 | $486,730,000 (48.2%) |
| Operating Income | $259,425,000 | $277,349,000 | ($17,924,000) (6.5%) |
| Net Income | $33,052,000 | $134,512,000 | ($101,460,000) (75.4%) |
| Attendance | 30,955,000 | 20,889,000 | 10,066,000 (48.2%) |
| In-Park Per Capita Spending | $61.21 | $62.94 | ($1.73) (2.7%) |
| Operating Days | 3,491 | 1,988 | 1,503 (75.6%) |
Merger Impact
The financial results for 2024 reflect the impact of the merger with Former Six Flags, which significantly increased revenues and attendance:
- Net Revenues Contribution: $558 million from Former Six Flags operations in Q3 2024.
- Attendance Increase: 10.1 million additional visits attributed to the merger.
- Out-of-Park Revenue Growth: Increased by $29.3 million, primarily from hotels and other services.
Deferred Revenue
As of January 1, 2024, the company recorded $183.7 million in current deferred revenue, with 89% related to season-long products. Approximately $151 million of this was recognized during the nine months ended September 29, 2024.
Capital Expenditures
Capital expenditures for the fourth quarter of 2024 are expected to total between $100 million and $110 million, with projections for 2025 ranging from $500 million to $525 million.
Debt Obligations
As of September 29, 2024, Cedar Fair's long-term debt included:
| Debt Type | Amount (in thousands) | Maturity |
|---|---|---|
| Senior Secured Term Debt | $1,000,000 | May 2031 |
| 5.375% Senior Unsecured Notes | $500,000 | April 2027 |
| 6.500% Senior Unsecured Notes | $300,000 | October 2028 |
| 5.250% Senior Unsecured Notes | $500,000 | July 2029 |
| 7.000% Senior Secured Notes | $200,000 | July 2025 |
| 5.500% Senior Unsecured Notes | $500,000 | April 2027 |
| 7.250% Senior Unsecured Notes | $800,000 | May 2031 |
Cash Flow Analysis
For the nine months ended September 29, 2024, Cedar Fair reported:
| Cash Flow Metrics | Amount (in thousands) |
|---|---|
| Net Cash from Operating Activities | $405,983 |
| Net Cash for Investing Activities | ($378,705) |
| Net Cash for Financing Activities | ($1,166) |
| Net Increase in Cash and Cash Equivalents | $24,217 |
Conclusion on Financial Health
The financial metrics indicate a robust performance driven by increased attendance and strategic mergers, although challenges remain with net income margins and per capita spending. The company continues to leverage both in-park and out-of-park revenues effectively.
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Resources:
- Cedar Fair, L.P. (FUN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cedar Fair, L.P. (FUN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cedar Fair, L.P. (FUN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.