SANDUSKY, Ohio--(BUSINESS WIRE)--Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and immersive entertainment, today announced its Board of Directors has approved an updated capital allocation strategy, highlighted by the declaration of a cash distribution of $0.30 per limited partner (LP) unit and the authorization of a $250 million unit repurchase program.
- The distribution is payable on September 15, 2022, to unitholders of record as of August 31, 2022.
- The repurchase program authorizes the Company to make unit purchases in the open market, or through privately negotiated transactions, up to $250 million.
“Having weathered the worst of the pandemic, we are pleased that Cedar Fair has emerged with the capital structure and free cash flow generation to support the return of capital to unitholders once again,” said Cedar Fair President and CEO Richard Zimmerman. “Our strong performance this year, combined with the recent monetization of real estate in Santa Clara, California, has strengthened our balance sheet and enabled us to strategically accelerate our capital allocation priorities, including reducing leverage and reinstating a cash distribution. In addition to reinstating the distribution, our Board has determined that units of Cedar Fair represent a very attractive investment opportunity, particularly at current price levels, and authorized a $250 million unit repurchase program. Both strategic actions underscore the Board’s confidence in our business model and optimism regarding the Company’s near- and long-term prospects. We remain committed to driving sustainable value creation through a balanced approach of investing in our business while maintaining a strong balance sheet and returning capital to unitholders.”
The objectives of Cedar Fair’s capital allocation strategy are to maintain a strong balance sheet, provide adequate liquidity for investing in growth opportunities, and return excess capital to unitholders. Management plans to repurchase units of Cedar Fair opportunistically, using a combination of existing cash balances and free cash flow. Repurchases may be made at management’s discretion from time to time in accordance with all applicable securities and other laws and regulations. The extent and timing to which the Company repurchases its units will depend upon a variety of factors, including liquidity, capital needs of the business, market conditions, regulatory requirements, and other corporate considerations. No limit was placed on the duration of the repurchase program. The repurchase program does not obligate the Company to repurchase any minimum dollar amount or number of units, and the program may be modified, suspended, or discontinued at any time.
About Cedar Fair
Cedar Fair, L.P. (NYSE: FUN), one of the largest regional amusement-resort operators in the world, is a publicly traded partnership headquartered in Sandusky, Ohio. Focused on its mission to make people happy by providing fun, immersive, and memorable experiences, the Company owns and operates 13 properties, consisting of 11 amusement parks, four separately gated outdoor water parks, and resort accommodations totaling more than 2,300 rooms and more than 600 luxury RV sites. Cedar Fair’s parks are located in Ohio, California, North Carolina, South Carolina, Virginia, Pennsylvania, Minnesota, Missouri, Michigan, Texas and Toronto, Ontario.
Some of the statements contained in this news release that are not historical in nature constitute “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, beliefs, goals, and strategies regarding the future. These forward-looking statements may involve risks and uncertainties that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct, including the timing of any debt paydown or payment of partnership distributions, or that the Company's growth strategies will achieve the target results. Important factors, including the impacts of the COVID-19 pandemic, general economic conditions, adverse weather conditions, competition for consumer leisure time and spending, unanticipated construction delays, changes in the Company’s capital investment plans and projects and other factors discussed from time to time by the Company in its reports filed with the Securities and Exchange Commission (the “SEC”) could affect attendance at the Company’s parks, as well as the timing of any debt paydown or payment of partnership distributions, and the Company's growth strategies, and cause actual results to differ materially from the Company's expectations or otherwise to fluctuate or decrease. Additional information on risk factors that may affect the business and financial results of the Company can be found in the Company's Annual Report on Form 10-K and in the filings of the Company made from time to time with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether a result of new information, future events, information, circumstances or otherwise that arise after the publication of this document.
This news release and prior releases are available under the News tab at http://ir.cedarfair.com