Staff and wire report
Shares of Cedar Fair LP hit an all-time high Thursday after the theme park operator said its third-quarter net income rose 35 percent as more people visited its parks and spent more money there. The company also raised its outlook for the full year above what Wall Street was expecting.
The company owns 11 amusement parks, including Kings Island in Mason and Cedar Point in Sandusky, Ohio, where the company is also headquartered. Cedar Fair also owns four water parks and five hotels around the country.
Revenue from admissions to the parks rose 6.3 percent to $339.7 million in its third quarter. Revenue from food and merchandise bought at the parks rose 5.3 percent to $180.4 million.
Net income rose to $190.4 million, or $3.41 per unit, in the quarter ending Sept. 29. That compares with $141 million, or $2.52 per unit, in the same quarter a year ago.
Revenue rose to 7 percent to $592.1 million from $553.4 million.
Analysts expected earnings of $2.87 per unit and revenue of $581.7 million, according to FactSet.
The company now expects full-year revenue between $1.125 billion and $1.135 billion, up from its previous forecast between $1.09 billion and $1.115 billion. Analysts had expected revenue of $1.119 billion.
Cedar Fair’s shares (NYSE: FUN) rose as high as $47.48, an all-time high for the stock. The stock closed Thursday at $46.72, up $1.25 or 2.6 percent.
“This year, the majority of our FUNforward initiatives exceeded our expectations by meeting our targets sooner than planned, and in some cases, surpassing our targets,” said Matt Ouimet, Cedar Fair’s president and chief executive officer, in a statement.
“We had great response to our capital plans, strong momentum in season pass sales, continued success in premium product offerings and broad improvements in our food and beverage offerings this past year,” Ouimet added. “We look forward to maintaining this momentum and building on these initiatives as we head into 2014.”
Kings Island, which is owned by Cedar Fair, is a major tourist attraction and employer in southwest Ohio. Count on us for complete, in-depth coverage of the amusement park and the company throughout the year.