Slide 1: Investor Presentation August 2021
Investor Presentation August 2021
Slide 2: Forward-Looking Statements
Some of the information in this presentation that is not historical in nature constitutes “forward‐looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements as to the Company's expectations, belief
Slide 3: FUN Overview
FUN Overview 3
Slide 4: Cedar Fair Executive Team
Cedar Fair Executive Team Richard Zimmerman CEO Tim Fisher COO Brian Witherow CFO Kelley Ford CMO Craig Heckman HRO Dave Hoffman CAO 4
Slide 5: Our Purpose: To Make People Happy
5 Our Purpose “To Make People Happy” 5
Slide 6: Key Statistics and Parks Portfolio
KEY STATISTICS Entertained 28M visitors in 2019 841 rides and attractions 124 roller coasters 2,300+ hotel rooms PARKS PORTFOLIO Own and operate 11 amusement parks 9 outdoor water parks (in‐park) 4 outdoor water parks (unique gates) 1 indoor water park resort 6
Slide 7: Compelling Investment Rationale
Compelling Investment Rationale 1 2 Best‐in‐class parks and brands with loyal, high‐repeat customer base 3 High barriers to entry 4 Resilient operating performance through economic cycles 6 Industry‐experienced management with history of delivering results High quality assets and significant real es
Slide 8: Record 2019 Followed by COVID-19 Disrupted 2020
Record 2019 Followed by COVID‐19 Disrupted 2020 2019 Results Record net revenues of $1.47 billion, up 9%; same park up 6% Record attendance of 27.9 million visits, up 8%; same park up 5% Record in‐park per capita spending of $48.32, up 1%; same park up 1% Record out‐of‐park revenues of $169
Slide 9: 2019 Operating Results
3% 4% 2019 Operating Results 1% Net Revenues $1.47B Ended 12/31/19 Lift from prior year Adjusted EBITDA 8%$505M 9% Attendance 8%27.9M In‐Park Per Capita Spending 1%$48.32 Out‐of‐Park Revenues 11%$169M 9
Slide 10: July 2021 Update
July 2021 Update 5‐Week Period Ended 8/1/2021 5‐Week Period Ended 8/4/2019 Operating Days 525471 Attendance(1) 6.8M5.2M In‐Park Per Capita Spending $50.65$62.00 Out‐of‐Park Revenues $40M$40M 10 (1) Attendance for the current 5-week period represented approximately 85% of comparable same-day 2019 att
Slide 11: Strong Long-Term Growth and Recession Resilient
Strong Long‐Term Growth and Recession Resilient Acquisitions: 1992 – Dorney Park 1995 – World of Fun 1997 – Knott’s Berry Farm 2001 – Michigan’s Adventure 2004 – Geauga Lake 2006 – Paramount Parks (five parks) 2019 – Schlitterbahn (two water parks) – Sawmill Creek Resort & Conference Center $0 $100
Slide 12: 2021 Outlook
2021 Outlook 12
Slide 13: Balance Sheet and Liquidity Update
Balance Sheet and Liquidity Update • Company expects to be cash flow positive for the balance of 2021 • Generated $21 million in positive cash flow in the 2021 second quarter, which was meaningfully better that the Company’s original guidance of approximately $180 million of net cash burn for the qu
Slide 14: Business Optimization Program
Business Optimization Program • Enterprise‐wide initiative designed to drive growth in the business, improve profitability, rationalize cost structure and produce a better guest experience • Capture cost efficiencies and drive incremental revenues through more data‐driven decision making • Deploy ne
Slide 15: Business Optimization Initiative - Revenue
Business Optimization Initiative ‐ Areas of Opportunity Revenue • Expand business intelligence capabilities to drive more data‐driven decisions • Improved pricing practices to drive revenue lift • Optimization of in‐park revenue streams, such as Food & Beverage and Merch & Games • Greater focus and
Slide 16: Business Optimization Initiative - Procurement
Business Optimization Initiative ‐ Areas of Opportunity Procurement • Represents the optimization initiative’s highest cost‐savings category ‐ could take several years to fully mature • Named Chief Procurement Officer in March 2021 • Responsible for building a centralized capability across our 13 pr
Slide 17: Business Optimization Initiative - Seasonal Labor
Business Optimization Initiative ‐ Areas of Opportunity Seasonal Labor • Seasonal/part‐time labor has historically represented approximately one‐third of operating expenses • New Workforce Management System implemented in 2021 across all but Texas water parks • Tailored Kronos‐based software providi
Slide 18: Business Optimization Initiative - Marketing
Business Optimization Initiative ‐ Areas of Opportunity Marketing • Offers near‐term cost savings opportunity • Shift weighting to more cost‐efficient and flexible digital advertising platforms • Look to reduce the use of traditional, higher‐cost options such as broadcast or print media • Increase u
Slide 19: Business Optimization Program – Target Benefits
$0 $10 $20 $30 $40 $50 Jan '21 Jul '21 Jan '22 Jul '22 Jan '23 Jul '23 Jan '24 Jul '24 Business Optimization Program – Target Benefits M illions 19 Fixed Cost Reductions Variable Cost Savings & Revenue Enhancements Revenue enhancements 1/3 • Centralized Procurement • Seasonal Labor • Marketing/Adver
Slide 20: Long-Range Plan
Long‐Range Plan 20
Slide 21: Long-Range Plan: Core Strategies
Long‐Range Plan: Core Strategies • Broaden the Guest Experience • Aimed at driving more visits from existing guests and incremental visits from new, unique guests • Traditional rides, such as roller coasters and water attractions, still play an important role • Expanded use of limited‐duration event
Slide 22: Consumer Insights Research
Consumer Insights Research We’ve held numerous Focus Groups to explore which types of entertainment experiences are most likely to motivate visitation. Key Findings: • Something for everyone ‐ consumers are seeking entertainment options that can accommodate all types of people, ages and interests •
Slide 23: Consumer Insights Research: Top Reasons to Visit
Consumer Insights Research Rides and events remain top reasons for visiting our parks, with high-park-interest guests driven by water parks and family coasters. Top Reasons to Visit Parks: • Family Rides • Thrill Coasters • Water Rides • Seasonal Events/Festivals • Anniversary Celebrations 23
Slide 24: "Seasons of FUN" Model: Creates Urgency to Visit
24 “Seasons of FUN” Model: Creates Urgency to Visit
Slide 25: Offer Guests Immersive Experiences
Offer Guests Immersive Experiences 25
Slide 26: Food & Beverage Playing A Key Role
Food & Beverage Playing A Key Role • Our research confirms food and beverage today play a critical role in the guest experience • Consumers want unique experiences, offerings they can’t get at home • We have enhanced existing F&B facilities, added more immersive dining experiences • Executive chefs
Slide 27: The Changing Landscape of Food & Beverage
The Changing Landscape of Food & Beverage 27
Slide 28: Popular 4th Quarter Events Extend Calendar, Add Growth
Popular 4th Quarter Events Extend Calendar, Add Growth • 2016 – first year for WinterFest (one park with approximately 140,600 guests in attendance) • 2019 – six WinterFest events (parks) with a combined attendance of approximately 1.2 million • Canada’s Wonderland – extraordinary 1st year in 2019 •
Slide 29: Season Pass Channel Growth Strong
Season Pass Channel Growth Strong • Company sold an additional 1 million season passes from March 29, 2021, through August 1, 2021 • As of August 1, 2021, approximately 2.9 million season passes are outstanding and valid through for 2021 season(1), exceeding the 2.6 million season passes sold for th
Slide 30: Loyalty Program: Evolution of the Season Pass
Loyalty Program: Evolution of the Season Pass Objectives: • Address affordability concerns for value‐oriented guests while maintaining admissions price integrity • Drive higher unit sales through “stickier” retention • Increase the average visitation of our season passholder base Goal: Transition pr
Slide 31: PassPerks Loyalty Program – Mutually Beneficial
PASSPERKS Loyalty Program – Mutually Beneficial Good for the Passholder Surprise our most highly engaged guests with unexpected discounts, offers and chances for exclusive prizes and experiences • Earn rewards with each park visit • Create anticipation among passholders to expect the unexpected • In
Slide 32: SP Payment Plan + Loyalty Program Meet Objectives
SP Payment Plan + Loyalty Program Meet Objectives CEDAR FAIR SEASON PASS PROGRAM Key Objectives Payment Plan Loyalty Program Subscription Model Affordability YES NO YES Retention NO YES YES Visitation NO YES NO Pricing Power YES YES NO Purchase Urgency YES NO NO + 32
Slide 33: Market Sizing Study
Market Sizing Study Study performed to better measure the current penetration of markets feeding our parks and gain a better understanding of the consumer segments within those markets Key Findings: • Strong attendance penetration among demographic groups in decline • Lowest penetration among groups
Slide 34: Evolution of the Accommodations Channel
Evolution of the Accommodations Channel • Substantial growth of accommodations portfolio last 8 years: • Total hotel rooms grew to more than 2,300 from 1,900 (includes Schlitterbahn and Sawmill Creek Resort) • Total luxury RV sites increased to more than 600 • Accommodations Revenue: • > $80 million
Slide 35: Adjacent Development – Accommodations
• Waterfront property at Cedar Point entrance • 237 rooms and suites with tropically themed indoor waterpark paradise • Resort property minutes from Cedar Point • 236‐room hotel and conference center, restaurants, Tom Fazio‐designed golf course Adjacent Development – Accommodations Property renovati
Slide 36: Cedar Point Sports Center
36 Cedar Point Sports Center Indoor Center • Opened January 2020 • 145,000 square feet • Court space accommodates 10 basketball courts and 20 volleyball courts • AAU basketball, JO volleyball, wrestling, cheer, gymnastics Outdoor Facility • Opened March 2017 • 10 multi‐use fields with clubhouse • Ba
Slide 37: Strategies for 2H-2021 and 2022
Focus on reestablishing growth in the core business Responsibly invest capital resources in three primary areas: Essential compliance and infrastructure needs Select projects that were paused in 2020 due to the pandemic, and Investments identified for the 2022 season that can start in 4Q‐2
Slide 38: Key Takeaways – Business Optimization Program
Objectives: 1) Enhance the guest experience 2) Realize cost savings across the enterprise 3) Create incremental revenue streams Focus: Pursue cost efficiencies in the big‐ticket areas of marketing, labor and procurement, and broaden the use of consumer technologies to increase throughput and cre
Slide 39: Appendix
Appendix 39
Slide 40: Capital Structure – Debt Maturities
Capital Structure – Debt Maturities Amounts in Millions Total debt outstanding of ~$3.0B at 6/27/21 Cash on hand totaled $293M at 6/27/21 2020 cash interest payments totaled $130M Full‐year cash interest costs projected to be approximately $175M in 2021‐2023 $75 $300 $264 $450 $1,000 $500 $3
Slide 41: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 41