Securities registered pursuant to Section 12(b) of the Act: | | | | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | Depositary Units Representing(Representing Limited Partner InterestsInterests) | FUN | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒x No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒x No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. | | | | | | | | Large accelerated filer | | ☒x | | Accelerated filer | | ☐ | Non-accelerated filer | | ☐ | | Smaller reporting company | | ☐ | | | | | Emerging growth company | | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o ☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒x Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
| | | | Title of Class | | Units Outstanding as of August 2, 2019May 1, 2020 | Depositary Units Representing (Representing Limited Partner InterestsInterests) | | 56,597,35456,703,355 |
Page 1 of 4946 pages
CEDAR FAIR, L.P. FORM 10-Q CONTENTS
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | | | | June 30, 2019 | | December 31, 2018 | | June 24, 2018 | | March 29, 2020 | | December 31, 2019 | | March 31, 2019 | ASSETS | | | | | | | | | | | | | Current Assets: | | | | | | | | | | | | | Cash and cash equivalents | | $ | 324,742 |
| | $ | 105,349 |
| | $ | 60,119 |
| | $ | 26,295 |
| | $ | 182,252 |
| | $ | 60,272 |
| Receivables | | 89,546 |
| | 51,518 |
| | 85,379 |
| | 25,652 |
| | 63,106 |
| | 44,331 |
| Inventories | | 46,860 |
| | 30,753 |
| | 47,000 |
| | 7,394 |
| | 32,902 |
| | 42,629 |
| Prepaid advertising | | 20,719 |
| | 2,215 |
| | 22,210 |
| | 17,435 |
| | 4,095 |
| | 24,487 |
| Other current assets | | 17,715 |
| | 10,374 |
| | 18,434 |
| | 16,183 |
| | 11,826 |
| | 13,826 |
| | | 499,582 |
| | 200,209 |
| | 233,142 |
| | 92,959 |
| | 294,181 |
| | 185,545 |
| Property and Equipment: | | | | | | | | | | | | | Land | | 422,764 |
| | 268,411 |
| | 266,849 |
| | 435,677 |
| | 441,038 |
| | 269,813 |
| Land improvements | | 443,282 |
| | 434,501 |
| | 433,505 |
| | 457,922 |
| | 460,534 |
| | 437,241 |
| Buildings | | 768,050 |
| | 732,666 |
| | 728,243 |
| | 811,048 |
| | 816,780 |
| | 735,286 |
| Rides and equipment | | 1,874,085 |
| | 1,813,489 |
| | 1,804,512 |
| | 1,893,596 |
| | 1,907,544 |
| | 1,837,270 |
| Construction in progress | | 59,257 |
| | 77,716 |
| | 36,569 |
| | 114,740 |
| | 70,731 |
| | 102,072 |
| | | 3,567,438 |
| | 3,326,783 |
| | 3,269,678 |
| | 3,712,983 |
| | 3,696,627 |
| | 3,381,682 |
| Less accumulated depreciation | | (1,767,972 | ) | | (1,727,345 | ) | | (1,650,680 | ) | | (1,836,870 | ) | | (1,855,019 | ) | | (1,734,928 | ) | | | 1,799,466 |
| | 1,599,438 |
| | 1,618,998 |
| | 1,876,113 |
| | 1,841,608 |
| | 1,646,754 |
| Goodwill | | 181,199 |
| | 178,719 |
| | 180,186 |
| | 274,659 |
| | 359,654 |
| | 179,939 |
| Other Intangibles, net | | 36,696 |
| | 36,376 |
| | 36,991 |
| | 51,658 |
| | 59,899 |
| | 36,642 |
| Right-of-Use Asset | | 4,354 |
| | — |
| | — |
| | 13,688 |
| | 14,324 |
| | 72,594 |
| Other Assets | | 11,509 |
| | 9,441 |
| | 9,899 |
| | | | | 80,406 |
| | 11,479 |
| | 10,996 |
| | | $ | 2,532,806 |
| | $ | 2,024,183 |
| | $ | 2,079,216 |
| | $ | 2,389,483 |
| | $ | 2,581,145 |
| | $ | 2,132,470 |
| LIABILITIES AND PARTNERS’ EQUITY | | | | | | | | | | | | | Current Liabilities: | | | | | | | | | | | | | Current maturities of long-term debt | | $ | 7,500 |
| | $ | 5,625 |
| | $ | 1,875 |
| | $ | 7,500 |
| | $ | 7,500 |
| | $ | 7,500 |
| Accounts payable | | 49,284 |
| | 23,314 |
| | 49,551 |
| | 39,000 |
| | 29,344 |
| | 47,254 |
| Deferred revenue | | 217,242 |
| | 107,074 |
| | 211,173 |
| | 30,381 |
| | 151,377 |
| | 151,336 |
| Accrued interest | | 8,176 |
| | 7,927 |
| | 9,265 |
| | 28,617 |
| | 21,442 |
| | 20,886 |
| Accrued taxes | | 16,276 |
| | 29,591 |
| | 12,740 |
| | 6,656 |
| | 39,237 |
| | 9,883 |
| Accrued salaries, wages and benefits | | 21,706 |
| | 18,786 |
| | 26,228 |
| | 16,866 |
| | 29,549 |
| | 13,996 |
| Self-insurance reserves | | 21,427 |
| | 24,021 |
| | 25,272 |
| | 25,127 |
| | 24,665 |
| | 23,579 |
| Other accrued liabilities | | 18,137 |
| | 18,381 |
| | 24,395 |
| | 23,692 |
| | 21,024 |
| | 19,745 |
| | | 359,748 |
| | 234,719 |
| | 360,499 |
| | 177,839 |
| | 324,138 |
| | 294,179 |
| Deferred Tax Liability | | 88,854 |
| | 81,717 |
| | 93,474 |
| | 59,021 |
| | 82,046 |
| | 82,518 |
| Derivative Liability | | 23,862 |
| | 6,705 |
| | — |
| | 34,298 |
| | 18,108 |
| | 13,083 |
| Lease Liability | | 2,365 |
| | — |
| | — |
| | 10,310 |
| | 10,600 |
| | 65,399 |
| Non-Current Deferred Revenue (See Note 1) | | | 164,137 |
| | 9,401 |
| | 9,767 |
| Other Liabilities | | 10,302 |
| | 11,058 |
| | 10,982 |
| | 806 |
| | 935 |
| | 547 |
| Long-Term Debt: | | | | | | | | | | | | | Revolving credit loans | | — |
| | — |
| | 25,000 |
| | 70,000 |
| | — |
| | 120,000 |
| Term debt | | 716,828 |
| | 719,507 |
| | 722,186 |
| | 714,685 |
| | 714,150 |
| | 718,168 |
| Notes | | 1,431,047 |
| | 938,061 |
| | 937,146 |
| | 1,432,601 |
| | 1,431,733 |
| | 938,407 |
| | | 2,147,875 |
| | 1,657,568 |
| | 1,684,332 |
| | 2,217,286 |
| | 2,145,883 |
| | 1,776,575 |
| Partners’ Equity: | | | | | | | | | | | | | Special L.P. interests | | 5,290 |
| | 5,290 |
| | 5,290 |
| | 5,290 |
| | 5,290 |
| | 5,290 |
| General partner | | (2 | ) | | (1 | ) | | (2 | ) | | (3 | ) | | (1 | ) | | (2 | ) | Limited partners, 56,597, 56,564 and 56,441 units outstanding as of June 30, 2019, December 31, 2018 and June 24, 2018, respectively | | (119,088 | ) | | 5,845 |
| | (86,435 | ) | | Accumulated other comprehensive income (loss) | | 13,600 |
| | 21,282 |
| | 11,076 |
| | Limited partners, 56,703, 56,666 and 56,587 units outstanding as of March 29, 2020, December 31, 2019 and March 31, 2019, respectively | | | (305,152 | ) | | (25,001 | ) | | (133,118 | ) | Accumulated other comprehensive income | | | 25,651 |
| | 9,746 |
| | 18,232 |
| | | (100,200 | ) | | 32,416 |
| | (70,071 | ) | | (274,214 | ) | | (9,966 | ) | | (109,598 | ) | | | $ | 2,532,806 |
| | $ | 2,024,183 |
| | $ | 2,079,216 |
| | $ | 2,389,483 |
| | $ | 2,581,145 |
| | $ | 2,132,470 |
|
The accompanying Notes to Unaudited Condensed Consolidated Financial Statements are an integral part of these statements.
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In thousands, except per unit amounts) | | | Three months ended | | Six months ended | Three months ended | | June 30, 2019 | | June 24, 2018 | | June 30, 2019 | | June 24, 2018 | March 29, 2020 | | March 31, 2019 | Net revenues: | | | | | | | | | | | Admissions | $ | 229,722 |
| | $ | 204,447 |
| | $ | 262,939 |
| | $ | 231,168 |
| $ | 26,649 |
| | $ | 33,217 |
| Food, merchandise and games | 150,377 |
| | 129,947 |
| | 175,081 |
| | 151,002 |
| 19,947 |
| | 24,704 |
| Accommodations, extra-charge products and other | 56,091 |
| | 45,922 |
| | 65,147 |
| | 52,873 |
| 7,039 |
| | 9,056 |
|
| 436,190 |
| | 380,316 |
| | 503,167 |
| | 435,043 |
| 53,635 |
| | 66,977 |
| Costs and expenses: |
| | | | | | | | | | Cost of food, merchandise, and games revenues | 39,808 |
| | 35,018 |
| | 47,457 |
| | 41,021 |
| 6,385 |
| | 7,649 |
| Operating expenses | 177,771 |
| | 167,417 |
| | 275,976 |
| | 256,245 |
| 106,368 |
| | 98,205 |
| Selling, general and administrative | 59,781 |
| | 54,041 |
| | 91,447 |
| | 82,723 |
| 24,809 |
| | 31,666 |
| Depreciation and amortization | 55,904 |
| | 52,219 |
| | 69,493 |
| | 57,740 |
| 5,088 |
| | 13,589 |
| Loss on impairment / retirement of fixed assets, net | 682 |
| | 3,372 |
| | 2,106 |
| | 4,712 |
| 6,767 |
| | 1,424 |
| Loss on impairment of goodwill and other intangibles | | 88,181 |
| | — |
| Gain on sale of investment | — |
| | — |
| | (617 | ) | | — |
| — |
| | (617 | ) |
| 333,946 |
| | 312,067 |
| | 485,862 |
| | 442,441 |
| 237,598 |
| | 151,916 |
| Operating income (loss) | 102,244 |
| | 68,249 |
| | 17,305 |
| | (7,398 | ) | | Operating loss | | (183,963 | ) | | (84,939 | ) | Interest expense | 22,927 |
| | 21,337 |
| | 43,847 |
| | 41,099 |
| 27,219 |
| | 20,920 |
| Net effect of swaps | 10,779 |
| | (906 | ) | | 17,158 |
| | (4,534 | ) | 19,779 |
| | 6,379 |
| Loss on early debt extinguishment | — |
| | — |
| | — |
| | 1,073 |
| | (Gain) loss on foreign currency | (9,472 | ) | | 14,984 |
| | (18,141 | ) | | 25,078 |
| | Other expense (income) | 36 |
| | (139 | ) | | 125 |
| | (488 | ) | | Income (loss) before taxes | 77,974 |
| | 32,973 |
| | (25,684 | ) | | (69,626 | ) | | Provision (benefit) for taxes | 14,676 |
| | 13,730 |
| | (5,309 | ) | | (5,469 | ) | | Net income (loss) | 63,298 |
| | 19,243 |
| | (20,375 | ) | | (64,157 | ) | | Net income (loss) allocated to general partner | 1 |
| | — |
| | — |
| | (1 | ) | | Net income (loss) allocated to limited partners | $ | 63,297 |
| | $ | 19,243 |
| | $ | (20,375 | ) | | $ | (64,156 | ) | | Loss (gain) on foreign currency | | 34,202 |
| | (8,669 | ) | Other (income) expense | | (179 | ) | | 89 |
| Loss before taxes | | (264,984 | ) | | (103,658 | ) | Benefit for taxes | | (49,007 | ) | | (19,985 | ) | Net loss | | (215,977 | ) | | (83,673 | ) | Net loss allocated to general partner | | (2 | ) | | (1 | ) | Net loss allocated to limited partners | | $ | (215,975 | ) | | $ | (83,672 | ) | | | | | | | | | | | | Net income (loss) | $ | 63,298 |
| | $ | 19,243 |
| | $ | (20,375 | ) | | $ | (64,157 | ) | | Net loss | | $ | (215,977 | ) | | $ | (83,673 | ) | Other comprehensive income (loss), (net of tax): | | | | | | | | | | | Foreign currency translation adjustment | (4,632 | ) | | 6,662 |
| | (7,682 | ) | | 11,266 |
| 15,905 |
| | (3,050 | ) | Cash flow hedging derivative activity | — |
| | 2,116 |
| | — |
| | 4,134 |
| | Other comprehensive income (loss), (net of tax) | (4,632 | ) | | 8,778 |
| | (7,682 | ) | | 15,400 |
| 15,905 |
| | (3,050 | ) | Total comprehensive income (loss) | $ | 58,666 |
| | $ | 28,021 |
| | $ | (28,057 | ) | | $ | (48,757 | ) | | Basic income (loss) per limited partner unit: | | | | | | | | | Total comprehensive loss | | $ | (200,072 | ) | | $ | (86,723 | ) | Basic loss per limited partner unit: | | | | | Weighted average limited partner units outstanding | 56,474 |
| | 56,231 |
| | 56,334 |
| | 56,192 |
| 56,414 |
| | 56,310 |
| Net income (loss) per limited partner unit | $ | 1.12 |
| | $ | 0.34 |
| | $ | (0.36 | ) | | $ | (1.14 | ) | | Diluted income (loss) per limited partner unit: | | | | | | | | | Net loss per limited partner unit | | $ | (3.83 | ) | | $ | (1.49 | ) | Diluted loss per limited partner unit: | | | | | Weighted average limited partner units outstanding | 56,886 |
| | 56,727 |
| | 56,334 |
| | 56,192 |
| 56,414 |
| | 56,310 |
| Net income (loss) per limited partner unit | $ | 1.11 |
| | $ | 0.34 |
| | $ | (0.36 | ) | | $ | (1.14 | ) | | Net loss per limited partner unit | | $ | (3.83 | ) | | $ | (1.49 | ) |
The accompanying Notes to Unaudited Condensed Consolidated Financial Statements are an integral part of these statements.
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY (In thousands) | | | | | | | | | | | | | | | | | | | | | | | | For the three months ended | Limited Partnership Units Outstanding | | Limited Partners’ Equity | | General Partner’s Equity | | Special L.P. Interests | | Accumulated Other Comprehensive Income (Loss) | | Total Partners’ Equity | Balance as of March 25, 2018 | 56,416 |
| | $ | (58,550 | ) | | $ | (1 | ) | | $ | 5,290 |
| | $ | 2,298 |
| | $ | (50,963 | ) | Net income | — |
| | 19,243 |
| | — |
| | — |
| | — |
| | 19,243 |
| Partnership distribution declared ($0.890 per unit) | — |
| | (50,291 | ) | | (1 | ) | | — |
| | — |
| | (50,292 | ) | Issuance of limited partnership units related to compensation | 25 |
| | 3,169 |
| | — |
| | — |
| | — |
| | 3,169 |
| Tax effect of units involved in treasury unit transactions | — |
| | (6 | ) | | — |
| | — |
| | — |
| | (6 | ) | Foreign currency translation adjustment, net of tax $1,157 | — |
| | — |
| | — |
| | — |
| | 6,662 |
| | 6,662 |
| Cash flow hedging derivative activity, net of tax ($249) | — |
| | — |
| | — |
| | — |
| | 2,116 |
| | 2,116 |
| Balance as of June 24, 2018 | 56,441 |
| | $ | (86,435 | ) | | $ | (2 | ) | | $ | 5,290 |
| | $ | 11,076 |
| | $ | (70,071 | ) | | | | | | | | | | | | | Balance as of March 31, 2019 | 56,587 |
| | $ | (133,118 | ) | | $ | (2 | ) | | $ | 5,290 |
| | $ | 18,232 |
| | $ | (109,598 | ) | Net income | — |
| | 63,297 |
| | 1 |
| | — |
| | — |
| | 63,298 |
| Partnership distribution declared ($0.925 per unit) | — |
| | (52,351 | ) | | (1 | ) | | — |
| | — |
| | (52,352 | ) | Issuance of limited partnership units related to compensation | 10 |
| | 3,224 |
| | — |
| | — |
| | — |
| | 3,224 |
| Tax effect of units involved in treasury unit transactions | — |
| | (140 | ) | | — |
| | — |
| | — |
| | (140 | ) | Foreign currency translation adjustment, net of tax ($746) | — |
| | — |
| | — |
| | — |
| | (4,632 | ) | | (4,632 | ) | Balance as of June 30, 2019 | 56,597 |
| | $ | (119,088 | ) | | $ | (2 | ) | | $ | 5,290 |
| | $ | 13,600 |
| | $ | (100,200 | ) | | | | | | | | | | | | | For the six months ended | Limited Partnership Units Outstanding | | Limited Partners’ Equity | | General Partner’s Equity | | Special L.P. Interests | | Accumulated Other Comprehensive Income (Loss) | | Total Partners’ Equity | Balance as of December 31, 2017 | 56,359 |
| | $ | 81,589 |
| | $ | — |
| | $ | 5,290 |
| | $ | (3,933 | ) | | $ | 82,946 |
| Net loss | — |
| | (64,156 | ) | | (1 | ) | | — |
| | — |
| | (64,157 | ) | Partnership distribution declared ($1.780 per unit) | — |
| | (100,557 | ) | | (1 | ) | | — |
| | — |
| | (100,558 | ) | Issuance of limited partnership units related to compensation | 82 |
| | (657 | ) | | — |
| | — |
| | — |
| | (657 | ) | Tax effect of units involved in treasury unit transactions | — |
| | (3,045 | ) | | — |
| | — |
| | — |
| | (3,045 | ) | Foreign currency translation adjustment, net of tax $2,302 | — |
| | — |
| | — |
| | — |
| | 11,266 |
| | 11,266 |
| Cash flow hedging derivative activity, net of tax ($596) | — |
| | — |
| | — |
| | — |
| | 4,134 |
| | 4,134 |
| Reclassification of stranded tax effect | — |
| | 391 |
| | — |
| | — |
| | (391 | ) | | — |
| Balance as of June 24, 2018 | 56,441 |
| | $ | (86,435 | ) | | $ | (2 | ) | | $ | 5,290 |
| | $ | 11,076 |
| | $ | (70,071 | ) | | | | | | | | | | | | | Balance as of December 31, 2018 | 56,564 |
| | $ | 5,845 |
| | $ | (1 | ) | | $ | 5,290 |
| | $ | 21,282 |
| | $ | 32,416 |
| Net loss | — |
| | (20,375 | ) | | — |
| | — |
| | — |
| | (20,375 | ) | Partnership distribution declared ($1.850 per unit) | — |
| | (104,685 | ) | | (1 | ) | | — |
| | — |
| | (104,686 | ) | Issuance of limited partnership units related to compensation | 33 |
| | 1,688 |
| | — |
| | — |
| | — |
| | 1,688 |
| Tax effect of units involved in treasury unit transactions | — |
| | (1,561 | ) | | — |
| | — |
| | — |
| | (1,561 | ) | Foreign currency translation adjustment, net of tax ($1,620) | — |
| | — |
| | — |
| | — |
| | (7,682 | ) | | (7,682 | ) | Balance as of June 30, 2019 | 56,597 |
| | $ | (119,088 | ) | | $ | (2 | ) | | $ | 5,290 |
| | $ | 13,600 |
| | $ | (100,200 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | For the three months ended | Limited Partnership Units Outstanding | | Limited Partners’ Equity | | General Partner’s Equity | | Special L.P. Interests | | Accumulated Other Comprehensive Income (Loss) | | Total Partners’ Equity | Balance as of December 31, 2018 | 56,564 |
| | $ | 5,845 |
| | $ | (1 | ) | | $ | 5,290 |
| | $ | 21,282 |
| | $ | 32,416 |
| Net loss | — |
| | (83,672 | ) | | (1 | ) | | — |
| | — |
| | (83,673 | ) | Partnership distribution declared ($0.925 per unit) | — |
| | (52,334 | ) | | — |
| | — |
| | — |
| | (52,334 | ) | Issuance of limited partnership units related to compensation | 23 |
| | (1,536 | ) | | — |
| | — |
| | — |
| | (1,536 | ) | Tax effect of units involved in treasury unit transactions | — |
| | (1,421 | ) | | — |
| | — |
| | — |
| | (1,421 | ) | Foreign currency translation adjustment, net of tax ($874) | — |
| | — |
| | — |
| | — |
| | (3,050 | ) | | (3,050 | ) | Balance as of March 31, 2019 | 56,587 |
| | $ | (133,118 | ) | | $ | (2 | ) | | $ | 5,290 |
| | $ | 18,232 |
| | $ | (109,598 | ) | | | | | | | | | | | | | Balance as of December 31, 2019 | 56,666 |
| | $ | (25,001 | ) | | $ | (1 | ) | | $ | 5,290 |
| | $ | 9,746 |
| | $ | (9,966 | ) | Net loss | — |
| | (215,975 | ) | | (2 | ) | | — |
| | — |
| | (215,977 | ) | Partnership distribution declared ($0.935 per unit) | — |
| | (53,022 | ) | | — |
| | — |
| | — |
| | (53,022 | ) | Issuance of limited partnership units related to compensation | 37 |
| | (9,413 | ) | | — |
| | — |
| | — |
| | (9,413 | ) | Tax effect of units involved in treasury unit transactions | — |
| | (1,741 | ) | | — |
| | — |
| | — |
| | (1,741 | ) | Foreign currency translation adjustment, net of tax $2,851 | — |
| | — |
| | — |
| | — |
| | 15,905 |
| | 15,905 |
| Balance as of March 29, 2020 | 56,703 |
| | $ | (305,152 | ) | | $ | (3 | ) | | $ | 5,290 |
| | $ | 25,651 |
| | $ | (274,214 | ) |
The accompanying Notes to Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) | | | Six months ended | Three months ended | | June 30, 2019 | | June 24, 2018 | March 29, 2020 | | March 31, 2019 | CASH FLOWS FROM OPERATING ACTIVITIES | | | | | CASH FLOWS FOR OPERATING ACTIVITIES | | | | | Net loss | $ | (20,375 | ) | | $ | (64,157 | ) | $ | (215,977 | ) | | $ | (83,673 | ) | Adjustments to reconcile net loss to net cash from operating activities: | | | | | Adjustments to reconcile net loss to net cash for operating activities: | | | | | Depreciation and amortization | 69,493 |
| | 57,740 |
| 5,088 |
| | 13,589 |
| Loss on early debt extinguishment | — |
| | 1,073 |
| | Non-cash foreign currency (gain) loss on debt | (18,926 | ) | | 26,541 |
| | Loss on impairment of goodwill and other intangibles | | 88,181 |
| | — |
| Non-cash foreign currency loss (gain) on debt | | 35,332 |
| | (9,438 | ) | Non-cash equity based compensation expense | | (4,827 | ) | | 2,543 |
| Non-cash deferred income tax benefit | | (27,727 | ) | | (2,530 | ) | Net effect of swaps | | 19,779 |
| | 6,379 |
| Other non-cash expenses | 30,938 |
| | 24,123 |
| 5,995 |
| | 1,883 |
| Net change in working capital | 40,377 |
| | 40,996 |
| | Net change in other assets/liabilities | (2,823 | ) | | (551 | ) | | Net cash from operating activities | 98,684 |
| | 85,765 |
| | Changes in assets and liabilities: | | | | | (Increase) decrease in receivables | | 13,233 |
| | 7,240 |
| (Increase) decrease in inventories | | (14,098 | ) | | (11,827 | ) | (increase) decrease in other assets | | (23,052 | ) | | (27,395 | ) | Increase (decrease) in accounts payable | | 8,640 |
| | 18,829 |
| Increase (decrease) in deferred revenue | | 34,602 |
| | 43,938 |
| Increase (decrease) in accrued interest | | 7,580 |
| | 12,856 |
| Increase (decrease) in accrued taxes | | (25,093 | ) | | (17,235 | ) | Increase (decrease) in other liabilities | | (12,795 | ) | | (11,901 | ) | Net cash for operating activities | | (105,139 | ) | | (56,742 | ) | CASH FLOWS FOR INVESTING ACTIVITIES | | | | | | | Capital expenditures | (262,853 | ) | | (100,637 | ) | (58,032 | ) | | (53,397 | ) | Proceeds from sale of investment | 617 |
| | — |
| — |
| | 617 |
| Net cash for investing activities | (262,236 | ) | | (100,637 | ) | (58,032 | ) | | (52,780 | ) | CASH FLOWS FROM (FOR) FINANCING ACTIVITIES | | | | | CASH FLOWS FROM FINANCING ACTIVITIES | | | | | Net borrowings on revolving credit loans | — |
| | 25,000 |
| 70,000 |
| | 120,000 |
| Note borrowings | 500,000 |
| | — |
| | Term debt payments | (1,875 | ) | | — |
| | Distributions paid to partners | (104,686 | ) | | (100,558 | ) | (53,022 | ) | | (52,334 | ) | Payment of debt issuance costs and original issue discount | (7,712 | ) | | (2,512 | ) | | Exercise of limited partnership unit options | — |
| | 125 |
| | Tax effect of units involved in treasury unit transactions | (1,561 | ) | | (3,045 | ) | (1,741 | ) | | (1,421 | ) | Payments related to tax withholding for equity compensation | (4,142 | ) | | (6,930 | ) | (4,618 | ) | | (4,079 | ) | Net cash from (for) financing activities | 380,024 |
| | (87,920 | ) | | Net cash from financing activities | | 10,619 |
| | 62,166 |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 2,921 |
| | (3,334 | ) | (3,405 | ) | | 2,279 |
| CASH AND CASH EQUIVALENTS | | | | | | | Net increase (decrease) for the period | 219,393 |
| | (106,126 | ) | | Net decrease for the period | | (155,957 | ) | | (45,077 | ) | Balance, beginning of period | 105,349 |
| | 166,245 |
| 182,252 |
| | 105,349 |
| Balance, end of period | $ | 324,742 |
| | $ | 60,119 |
| $ | 26,295 |
| | $ | 60,272 |
| SUPPLEMENTAL INFORMATION | | | | | | | Cash payments for interest expense | $ | 43,498 |
| | $ | 39,854 |
| $ | 19,342 |
| | $ | 8,117 |
| Interest capitalized | 1,824 |
| | 1,771 |
| 465 |
| | 1,118 |
| Cash payments for income taxes, net of refunds | 7,204 |
| | 11,101 |
| 4,000 |
| | 176 |
| Capital expenditures in accounts payable | 4,830 |
| | 7,859 |
| 11,365 |
| | 9,382 |
|
The accompanying Notes to Unaudited Condensed Consolidated Financial Statements are an integral part of these statements.
CEDAR FAIR, L.P. INDEX FOR NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
CEDAR FAIR, L.P. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The accompanying unaudited condensed consolidated financial statements have been prepared from the financial records of Cedar Fair, L.P. (the Partnership)"Partnership," "we," "us," or "our") without audit and reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary to fairly present the results of the interim periods covered in this report. Due to the seasonal nature of the Partnership'sour amusement and water park operations, the results for any interim period may not be indicative of the results expected for the full fiscal year.
(1) Significant Accounting and Reporting Policies: Impact of COVID-19 Pandemic Due to the coronavirus (COVID-19) pandemic, on March 13, 2020, we announced the closure of certain parks and the decision to delay the opening of other parks in response to the federal and local recommendations and restrictions to mitigate the spread of COVID-19. As of May 6, 2020, all our parks remain closed. Even after our parks are able to reopen, there may be longer-term negative impacts to our business, results of operations and financial condition as a result of the COVID-19 pandemic, including changes in consumer behavior and preferences causing significant volatility or reductions in demand for or interest in our parks, damage to our brand and reputation, increases in operating expenses to comply with additional hygiene-related protocols, limitations on our ability to recruit and train sufficient employees to staff our parks, limitations on our employees' ability to work and travel, and significant changes in the economic or political conditions in areas in which we operate. Despite our efforts to manage these impacts, their ultimate impact may be material, and will depend on factors beyond our knowledge or control, including the duration and severity of the COVID-19 pandemic and actions taken to contain its spread and mitigate its public health effects.
We have taken steps to secure additional liquidity and address any potential debt covenant issues, in the event that the effects of the COVID-19 pandemic continue. These steps include reducing operating expenses, including labor costs; suspending $75 million to $100 million of non-essential capital expenditures planned for both the 2020 and 2021 operating seasons; and suspending quarterly distribution payments. In addition, subsequent to March 29, 2020, we issued senior secured notes and further amended the Amended 2017 Credit Agreement, including expanding our senior secured revolving credit facility capacity and revising certain financial covenants. See the Subsequent Event footnote at Note 15 for further details.
Management has made significant estimates and assumptions to determine our liquidity requirements and estimate the impact of the COVID-19 pandemic on our business, including financial results in the near and long-term. Actual results could materially differ from these estimates.
Prior to the COVID-19 pandemic, we had been preparing for our 2020 operating season. As of March 29, 2020, our working capital accounts were at normal seasonal levels, in particular receivables for our installment purchase plans, inventories and deferred revenue for season-long products. For purposes of preparing our financial statements, as of March 29, 2020, we estimated that some or all of our parks may remain closed throughout 2020 due to the imposition of external operating restrictions or due to the time it may take to implement additional hygiene protocols and prepare our parks for operation. As a result, we estimated that the following working capital amounts would be realized greater than 12 months from the balance sheet date and they have been classified as non-current as of March 29, 2020. These amounts represent our best estimate and include material assumptions, including the time frame to reopen our parks, which may differ materially as the COVID-19 pandemic and the related actions taken to contain its spread progress. | | | | | | | (In thousands) | Balance Sheet Location | | March 29, 2020 | Receivables | Other Assets | | $ | 23,968 |
| Inventories | Other Assets | | 39,364 |
| Prepaid advertising and other current assets | Other Assets | | 5,177 |
| | | | $ | 68,509 |
| | | | | | Non-Current Deferred Revenue | | $ | 154,946 |
|
Significant Accounting and Reporting Policies Except for the changes described below, the Partnership’sour unaudited condensed consolidated financial statements included in this Form 10-Q report have been prepared in accordance with the accounting policies described in the Notes to Consolidated Financial Statements for the year ended December 31, 2018,2019, which were included in the Form 10-K filed on February 22, 2019.21, 2020. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the Commission)"Commission"). These financial statements should be read in conjunction with the financial statements and the notes thereto included in the Form 10-K referred to above.
Adopted Accounting Pronouncements The Partnership adoptedIn June 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases2016-13, Measurement of Credit Losses on Financial Instruments ("ASC 2016-13"). ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for fiscal years after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. We adopted ASU 2016-13 as of January 1, 2020. The standard did not have an effect on the unaudited condensed consolidated financial statements.
New Accounting Pronouncements In December 2019, the FASB issued Accounting Standards Update No. 2019-12, Simplifying the Accounting for Income Taxes ("ASU 2016-02"2019-12"). ASU 2019-12 simplifies the accounting for income taxes by removing specific exceptions and clarifying and amending existing guidance under Topic 740, Income Taxes. ASU 2019-12 is effective January 1, 2019 usingfor fiscal years after December 15, 2020 and interim periods within those years. Early adoption is permitted, including adoption in any interim period, but all amendments must be adopted in the comparative reporting approach, which requires applicationsame period. The allowable adoption methods differ under the various amendments. We are in the process of evaluating the neweffect this standard atwill have on the adoption date. The ASU requires the recognition of lease assets and lease liabilities within the balance sheet by lessees for operating leases, as well as requires additional disclosures in theunaudited condensed consolidated financial statements regardingand related disclosures.
In March 2020, the amount, timing, and uncertainty of cash flows arising from leases. The ASU does not significantly change the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee, nor does the ASU significantly change the accounting applied by a lessor. The adoptionFASB issued Accounting Standards Update No. 2020-04, Facilitation of the standard resultedEffects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). ASU 2020-04 provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on contracts, hedging relationships, and other transactions that reference London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. We are in the recognitionprocess of right-of-use assets and corresponding lease liabilities forevaluating the Partnership's Santa Clara land lease, as well as its other operating leases, of $73.5 million andeffect this standard will have on the addition of required disclosures (see Note 11). The Partnership elected not to reassess: whether any expired or existing contracts are or contain leases; the lease classification of any expired or existing leases; and the initial direct costs for any existing leases. On June 28, 2019, the Partnership purchased the land at California's Great America from the lessor, the City of Santa Clara, for $150.3 million. Following the purchase, the Partnership's remaining lease commitments were immaterial to theunaudited condensed consolidated financial statements at June 30, 2019. However, the Partnership assumed a material lease commitment when it completed its subsequent event acquisition on July 1, 2019 (see Note 15). The material lease commitment is for the land on which one of the acquired properties is located. This land lease is expected to result in the recognition of an additional right-of-use asset between $6 million and $8 million and an additional corresponding lease liability between $4 million and $6 million in the third quarter of 2019.related disclosures.
(2) Interim Reporting: AsWe are one of June 30, 2019, the Partnership owned and operated elevenlargest regional amusement park operators in the world with 13 properties in our portfolio consisting of amusement parks, two separately gated outdoor water parks one indoor water park and four hotels. The Partnership'scomplementary resort facilities. Our parks operate seasonally except for Knott's Berry Farm. Our seasonal amusement parks are generally open during weekends beginning in April or May, and then daily from Memorial Day until Labor Day. After Labor Day, after which theyour seasonal parks are open during select weekends in September and, in most cases, Octoberin the fourth quarter for Halloween events. The two separately gated outdoor water parks also operate seasonally, generally from Memorial Day to Labor Day, plus some additional weekends before and after this period.winter events. As a result, a substantial portion of the Partnership’sour revenues from these seasonal parks are generated during an approximate 130-130- to 140-day140-day operating season with the major portion concentrated in the third quarter during the peak vacation months of July and August. In 2019, six of the seasonal properties will each be open an additional 20 to 25 days to include WinterFest, a holiday event operating during November and December showcasing holiday shows and festivities. Knott's Berry Farm continues to beis open daily on a year-round basis. Castaway Bay is generally open daily from Memorial Day to Labor Day with an additional limited daily schedule for the balance of the year.
To assure that these highly seasonal operations will not result in misleading comparisons of current and subsequent interim periods, the Partnership haswe have adopted the following accounting and reporting procedures for its seasonal parks:procedures: (a) revenues from multi-use products are recognized over the estimated number of uses expected for each type of product; and the estimated number of uses is reviewed and may be updated periodically during the operating season prior to the ticket or product expiration, which generally occurs no later than the close of the operating season; (b) depreciation, certain advertising and certain seasonal operating costs are expensed over each park’s operating season, including some costs incurred prior to the season, which are deferred and amortized over the season; and (c) all other costs are expensed as incurred or ratably over the entire year. If the COVID-19 pandemic prevents us from opening our parks during the second quarter of 2020, we anticipate recognizing depreciation and certain other operating costs, which are typically expensed over each park's operating season and which will still be incurred, over the calendar year instead of over each park's operating season. This change in accounting procedure would more accurately reflect incurred expense during this unprecedented shutdown.
(3) Acquisitions: On July 1, 2019, we completed the acquisition of 2 water parks and 1 resort in Texas, the Schlitterbahn Waterpark & Resort New Braunfels and the Schlitterbahn Waterpark Galveston ("Schlitterbahn parks"), for a cash purchase price of $257.7 million. The acquisition increased our presence in growing and attractive markets and further diversified our portfolio of properties. The Schlitterbahn parks are included within our single reportable segment of amusement/water parks with accompanying resort facilities.
The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon management's estimated fair values at the date of acquisition. To the extent the purchase price exceeded the estimated fair value of the net identifiable tangible and intangible assets acquired, such excess was allocated to goodwill. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $178.0 million, property and equipment of $58.1 million, an indefinite-lived trade name of $23.2 million, covenants not to compete of $0.2 million and a net working capital deficit of $3.3 million were recorded. We also assumed a lease commitment for the land on which Schlitterbahn Waterpark Galveston is located. This land lease resulted in the recognition of an additional right-of-use asset totaling $6.8 million and an additional corresponding lease liability totaling $5.3 million. All goodwill is expected to be deductible for income tax purposes.
Due to the negative impact of the COVID-19 pandemic on our expected future operating results, we tested the long-lived assets, goodwill and indefinite-lived intangible assets of the Schlitterbahn parks for impairment as of March 29, 2020. This resulted in impairment charges at the Schlitterbahn parks of $2.7 million for long-lived assets, $73.6 million for goodwill and $7.9 million for the Schlitterbahn trade name (see Note 5 and Note 6).
The results of the Schlitterbahn parks' operations, including $0.9 million of net revenues and $91.3 million of net loss, are included within the unaudited condensed consolidated statement of operations and comprehensive income for the three months ended March 29, 2020. If we had acquired the Schlitterbahn parks on January 1, 2019, our results for the three months ended March 31, 2019 would have included net revenues and net loss of approximately $2 million and $6 million, respectively. Related acquisition transaction costs totaled $7.0 million for the third and fourth quarter of 2019 and were included within Selling, general and administrative expenses.
(4) Revenue Recognition: As disclosed within the unaudited condensed consolidated statements of operations and comprehensive income, revenues are generated from sales of (1) admission to the Partnership'sour amusement parks and water parks, (2) food, merchandise and games both inside and outside the parks, and (3) accommodations, extra-charge products, and other revenue sources. Admission revenues include amounts paid to gain admission into the Partnership'sour parks, including parking fees. Revenues related to extra-charge products, including premium benefit offerings such as front-of-line products, and online transaction fees charged to customers are included in "Accommodations, extra-charge products and other".
The following table presents the Partnership'snet revenues disaggregated by revenues generated within the parks and revenues generated from out-of-park operations less amounts remitted to outside parties under concessionaire arrangements described below, for the periods presented: | | | | Three months ended | | Six months ended | Three months ended | (In thousands) | | June 30, 2019 | | June 24, 2018 | | June 30, 2019 | | June 24, 2018 | March 29, 2020 | | March 31, 2019 | In-park revenues | | $ | 401,383 |
| | $ | 349,525 |
| | $ | 455,596 |
| | $ | 393,135 |
| $ | 43,027 |
| | $ | 54,213 |
| Out-of-park revenues | | 49,344 |
| | 43,491 |
| | 64,105 |
| | 56,177 |
| 12,091 |
| | 14,761 |
| Concessionaire remittance | | (14,537 | ) | | (12,700 | ) | | (16,534 | ) | | (14,269 | ) | (1,483 | ) | | (1,997 | ) | Net revenues | | $ | 436,190 |
| | $ | 380,316 |
| | $ | 503,167 |
| | $ | 435,043 |
| $ | 53,635 |
| | $ | 66,977 |
|
Due to the Partnership'sour highly seasonal operations, a substantial portion of the Partnership'sour revenues are generated during an approximate 130- to 140-day140-day operating season. Most revenues are recognized on a daily basis based on actual guest spend at theour properties. Revenues from multi-use products, including season-long products for admission, dining, beverage and other products, are recognized over the estimated number of uses expected for each type of product. The estimated number of uses is reviewed and may be updated periodically during the operating season prior to the ticket or product expiration, which generally occurs no later than the close of the operating season. The number of uses is estimated based on historical usage adjusted for expected usage. For any bundled products that include multiple performance obligations, revenue is allocated using the retail price of each distinct performance obligation and any inherent discounts are allocated based on the gross margin and expected redemption of each performance obligation. The Partnership doesWe do not typically provide for refunds or returns.
In some instances, the Partnership arrangeswe arrange with outside parties ("concessionaires") to provide goods to guests, typically food and merchandise, and the Partnership actswe act as an agent, resulting in net revenuerevenues recorded within the condensed consolidated statementstatements of operations and comprehensive income. Concessionaire arrangement revenues are recognized over the operating season and are variable. Sponsorship revenues and marina revenues, which are classified as "Accommodations, extra-charge products and other" within the condensed consolidated statement of operations and comprehensive income,other," are recognized over the park operating season which represents the period in which the performance obligations are satisfied. Sponsorship revenues are typically fixed. However, some sponsorship revenues are variable based on achievement of specified operating metrics. The Partnership estimatesWe estimate variable revenues and performsperform a constraint analysis using both historical information and current trends to determine the amount of revenue that is not probable of a significant reversal.
Many products, including season-long products, are sold to customers in advance, resulting in a contract liability ("deferred revenue"). Deferred revenue is at its highest immediately prior to the peak summer season, and at its lowest inat the fallbeginning of the calendar year following the close of our parks' operating seasons, as well as at the end of the third quarter after the peak summer season and at the beginning of the selling season for the next year's products. Season-long products represent the majoritymost of the deferred revenue balance in any given period.
Of the $107.1$151.4 million of deferred revenue recorded as of January 1, 2019, 88%2020, 91% was related to season-long products. The remainder was related to deferred online transaction fees charged to customers, advanced ticket sales, marina deposits, advanced resort reservations, and other deferred revenue. During the sixthree months ended June 30, 2019,March 29, 2020, approximately $41.9$6.3 million of the deferred revenue balance as of January 1, 20192020 was recognized. The remaining difference
Due to the COVID-19 pandemic, we have estimated that some or all of our parks may remain closed throughout 2020. We have announced our intention to extend the validity of our season pass products through the 2021 operating season to compensate for lost days in the opening and closing balances2020. As a result, we have classified a portion of the Partnership'sour deferred revenue balance in the current period was attributableas non-current as of March 29, 2020. The following table discloses when we expect to additional season-long product sales during the first six months of 2019.recognize our outstanding deferred revenue: | | | | | | (In thousands) | March 29, 2020 | Balance Sheet Location | Estimated to be recognized in 2020 | $ | 30,381 |
| Deferred revenue | | | | Estimated to be recognized in 2021 | 155,435 |
| Other Non-Current Deferred Revenue | Estimated to be recognized from 2022 through 2039 (1) | 8,702 |
| Other Non-Current Deferred Revenue | | 164,137 |
| | | | | Total Deferred Revenue | $ | 194,518 |
| |
| | (1) | We lease a portion of the California's Great America parking lot to the Santa Clara Stadium Authority during Levi's Stadium events. The lease is effective through the life of the stadium, or approximately 25 years, from the opening of the stadium through 2039. The lease payments were prepaid, and the corresponding revenue is being recognized over the life of the stadium. |
Payment is due immediately on the transaction date for most products. The Partnership'sOur receivable balance includes outstanding amounts on installment purchase plans which are offered for season-long products (and other select products for specific time periods), and includes sales to retailers, group sales and catering activities which are billed. Installment purchase plans vary in length from three3 monthly installments to twelve12 monthly installments. Payment terms for billings are typically net 30 days. Receivables are highest in the peak summer months and the lowest in the winter months. The Partnership isWe are not exposed to a significant concentration of customer credit risk. As of June 30, 2019,March 29, 2020, December 31, 20182019 and June 24, 2018, the PartnershipMarch 31, 2019, we recorded an $8.2a $6.0 million, $2.6$3.4 million and $7.3$3.9 million allowance for doubtful accounts, respectively, representing estimated
defaults on installment purchase plans. The default estimate is calculated using the historical default rate adjusted for current period trends.trends, including an adjustment for the impact of COVID-19 on our customers' ability to pay based on March 2020 collection rates. The allowance for doubtful accounts is recorded as a reduction of deferred revenue to the extent revenue has not been recognized on the corresponding season-long products.
Most deferred revenue from contracts with customers is classified as current withinAs mentioned above, due to the balance sheet. However,COVID-19 pandemic, we have estimated that some or all of our parks may remain closed throughout 2020. We have announced a portionsuspension of deferred revenue from contracts with customers is classified as non-current during the third quarter related to season-long products sold in the current season for use in the subsequent season. Season-long products are sold beginning in August of the year preceding the operating season. Season-long products may be recognized 12 to 16 months after purchase dependingcollections on the date of sale. The Partnership estimates the number of uses expected outside of the next twelve months for each type of product and classifies the related deferred revenue as non-current.
With the exception of the non-current deferred revenue described above, the Partnership's contracts with customers have an original duration of one year or less. For these short-term contracts, the Partnership uses the practical expedient, a relief provided in the accounting standard to simplify compliance, applicable to such contracts and has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize this revenue. Further, the Partnership has elected to recognize incremental costs of obtaining a contract as an expense when incurred as the amortization period of the asset would be less than one year. Lastly, the Partnership has elected not to adjust consideration for the effects of significant financing components in the form ofour installment purchase plans until our parks re-open. As a result, we have classified $24.0 million of our installment purchase plan receivables as the period between when the entity transfers the promised service to the customer and when the customer pays for that service does not exceed one year.non-current as of March 29, 2020.
(4)(5) Long-Lived Assets:
Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that would indicate that the carrying value of the assets may not be recoverable. In order to determine if an asset has been impaired, assets are grouped and tested at the lowest level for which identifiable, independent cash flows are available. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in expected future cash flows; a sustained, significant decline in equity price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; and slower growth rates. Any adverse change in these factors could have a significant impact on the recoverability of these assets and could have a material impact on the Partnership's condensed consolidated financial statements.
Non-operating assets are evaluated for impairment based on changes in market conditions. When changes in market conditions are observed, impairment is estimated using a market-based approach. If the estimated fair value of the non-operating assets is less than their carrying value, an impairment charge is recorded for the difference.
Due to the negative impact of the COVID-19 pandemic on our expected future operating results, we tested our long-lived assets for impairment as of March 29, 2020. We concluded the estimated undiscounted future cash flows expected to result from the use of the long-lived assets at the Schlitterbahn parks no longer exceeded the related carrying values. Therefore, we recorded a $2.7 million impairment charge equal to the difference between the fair value and the carrying amounts of the assets in "Loss on impairment / retirement of fixed assets" within the unaudited condensed consolidated statement of operations and comprehensive income as of March 29, 2020. The fair value of our long-lived assets was determined using a real and personal property appraisal which was performed in accordance with ASC 820 - Fair Value Measurement.
During the third quarter of 2016, the Partnershipwe ceased operations of one1 of itsour separately gated outdoor water parks, Wildwater Kingdom, located near Cleveland in Aurora, Ohio. At the date that Wildwater Kingdom ceased operations, the only remaining long-lived asset was approximately 670 acres of land. The Wildwater Kingdom acreage, reduced by acreage sold, is recorded within "Other Assets" in the unaudited condensed consolidated balance sheet ($9.0 million as of June 30, 2019,March 29, 2020, December 31, 20182019 and June 24, 2018)March 31, 2019).
(6) Goodwill and Other Intangible Assets: Goodwill and other indefinite-lived intangible assets, including trade-names,trade names, are reviewed for impairment annually, or more frequently if indicators of impairment exist. AsDue to the negative impact of June 30, 2019, there werethe COVID-19 pandemic on our expected future operating results, we tested our goodwill and indefinite-lived intangible assets for impairment as of March 29, 2020. We concluded the estimated fair value of goodwill at the Schlitterbahn parks and Dorney Park reporting units, and the estimated fair value of the Schlitterbahn trade name no indicatorslonger exceeded their carrying values. Therefore, we recorded a $73.6 million, $6.8 million and $7.9 million impairment of impairment. The Partnership's annual testing date isgoodwill at the Schlitterbahn parks, goodwill at Dorney Park, and the Schlitterbahn trade name, respectively, during the first dayquarter of 2020. The impairment charges were equal to the amount by which the carrying amounts exceeded the assets' fair value and were recorded in "Loss on impairment of goodwill and other intangibles" within the unaudited condensed consolidated statement of operations and comprehensive income.
The fair value of our reporting units was established using a combination of an income (discounted cash flow) approach and market approach. The income approach used each reporting unit's projection of estimated operating results and discounted cash flows using a weighted-average cost of capital that reflected current market conditions. Estimated operating results were established using our best estimates of economic and market conditions over the projected period including growth rates in revenues and costs, estimates of future expected changes in operating margins and cash expenditures, the anticipated time frame to re-open our parks following the COVID-19 pandemic, and the related demand upon re-opening our parks following the COVID-19 pandemic. Other significant estimates and assumptions included terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. The market approach estimated fair value by applying cash flow multiples to each reporting unit's operating performance. The multiples were derived from comparable publicly traded companies with similar operating and investment characteristics of the fourth quarter. There were no impairmentsreporting units. The impairment charge recognized was for any period presented.the amount by which the reporting unit's carrying amount exceeded its fair value.
A summaryOur indefinite-lived intangible assets consist of changestrade names. The fair value of our trade names was calculated using a relief-from-royalty model. The impairment charge recognized was for the amount by which the trade name's carrying amount exceeded its fair value.
Management made significant estimates in calculating the Partnership’sfair value of our reporting units and trade names. Actual results could materially differ from these estimates.
Changes in the carrying value of goodwill for the sixthree months ended June 30,March 29, 2020 and March 31, 2019 and June 24, 2018 is as follows:were: | | (In thousands) | Goodwill (gross) | | Accumulated Impairment Losses | | Goodwill (net) | | Goodwill | Balance as of December 31, 2019 | | | $ | 359,654 |
| Impairment | | | (80,331 | ) | Foreign currency translation | | | (4,664 | ) | Balance as of March 29, 2020 | | | $ | 274,659 |
| | | | | Balance as of December 31, 2018 | $ | 258,587 |
| | $ | (79,868 | ) | | $ | 178,719 |
| | $ | 178,719 |
| Foreign currency translation | 2,480 |
| | — |
| | 2,480 |
| | 1,220 |
| Balance as of June 30, 2019 | $ | 261,067 |
| | $ | (79,868 | ) | | $ | 181,199 |
| | | | | | | | | Balance as of December 31, 2017 | $ | 263,698 |
| | $ | (79,868 | ) | | $ | 183,830 |
| | Foreign currency translation | (3,644 | ) | | — |
| | (3,644 | ) | | Balance as of June 24, 2018 | $ | 260,054 |
| | $ | (79,868 | ) | | $ | 180,186 |
| | Balance as of March 31, 2019 | | | $ | 179,939 |
|
Goodwill included $104.4 million and $178.0 million as of March 29, 2020 and December 31, 2019, respectively, of goodwill related to the Schlitterbahn parks which were acquired on July 1, 2019, see Note 3.
As of June 30, 2019,March 29, 2020, December 31, 2018,2019, and June 24, 2018, the Partnership’sMarch 31, 2019, other intangible assets consisted of the following: | | (In thousands) | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Value | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Value | June 30, 2019 | | | | | | | March 29, 2020 | | | | | | | Other intangible assets: | | | | | | | | | | | Trade names | $ | 35,945 |
| | $ | — |
| | $ | 35,945 |
| $ | 50,361 |
| | $ | — |
| | $ | 50,361 |
| License / franchise agreements | 3,390 |
| | (2,639 | ) | | 751 |
| 4,255 |
| | (2,958 | ) | | 1,297 |
| Total other intangible assets | $ | 39,335 |
| | $ | (2,639 | ) | | $ | 36,696 |
| $ | 54,616 |
| | $ | (2,958 | ) | | $ | 51,658 |
| | | | | | | | | | | | December 31, 2018 | | | | | | | December 31, 2019 | | | | | | | Other intangible assets: | | | | | | | | | | | Trade names | $ | 35,394 |
| | $ | — |
| | $ | 35,394 |
| $ | 59,249 |
| | $ | — |
| | $ | 59,249 |
| License / franchise agreements | 3,379 |
| | (2,397 | ) | | 982 |
| 3,583 |
| | (2,933 | ) | | 650 |
| Total other intangible assets | $ | 38,773 |
| | $ | (2,397 | ) | | $ | 36,376 |
| $ | 62,832 |
| | $ | (2,933 | ) | | $ | 59,899 |
| | | | | | | | | | | | June 24, 2018 | | | | | | | March 31, 2019 | | | | | | | Other intangible assets: | | | | | | | | | | | Trade names | $ | 35,720 |
| | $ | — |
| | $ | 35,720 |
| $ | 35,665 |
| | $ | — |
| | $ | 35,665 |
| License / franchise agreements | 3,357 |
| | (2,086 | ) | | 1,271 |
| 3,389 |
| | (2,412 | ) | | 977 |
| Total other intangible assets | $ | 39,077 |
| | $ | (2,086 | ) | | $ | 36,991 |
| $ | 39,054 |
| | $ | (2,412 | ) | | $ | 36,642 |
|
Other intangible assets included $15.4 million and $23.2 million as of March 29, 2020 and December 31, 2019, respectively, for the Schlitterbahn trade name acquired on July 1, 2019, see Note 3. The Schlitterbahn trade name is an indefinite-lived intangible asset. Amortization expense of finite-lived other intangible assets is expected to continue to be immaterial going forward.
(6)(7) Long-Term Debt:
Long-term debt as of June 30, 2019,March 29, 2020, December 31, 2018,2019, and June 24, 2018March 31, 2019 consisted of the following: | | (In thousands) | June 30, 2019 | | December 31, 2018 | | June 24, 2018 | March 29, 2020 | | December 31, 2019 | | March 31, 2019 | | | | | | | | | | | | Revolving credit facility (due 2022) | $ | — |
| | $ | — |
| | $ | 25,000 |
| $ | 70,000 |
| | $ | — |
| | $ | 120,000 |
| U.S. term loan averaging 4.24% YTD 2019; 3.83% in 2018; 3.71% YTD 2018 (due 2017-2024) (1) | 733,125 |
| | 735,000 |
| | 735,000 |
| | U.S. term loan averaging 3.43% YTD 2020; 4.01% in 2019; 4.25% YTD 2019 (due 2017-2024) (1) | | 729,375 |
| | 729,375 |
| | 735,000 |
| Notes | | | | | | | | | | | 2024 U.S. fixed rate notes at 5.375% | 450,000 |
| | 450,000 |
| | 450,000 |
| 450,000 |
| | 450,000 |
| | 450,000 |
| 2027 U.S. fixed rate notes at 5.375% | 500,000 |
| | 500,000 |
| | 500,000 |
| 500,000 |
| | 500,000 |
| | 500,000 |
| 2029 U.S. fixed rate notes at 5.250% | 500,000 |
| | — |
| | — |
| 500,000 |
| | 500,000 |
| | — |
| | 2,183,125 |
| | 1,685,000 |
| | 1,710,000 |
| 2,249,375 |
| | 2,179,375 |
| | 1,805,000 |
| Less current portion | (7,500 | ) | | (5,625 | ) | | (1,875 | ) | (7,500 | ) | | (7,500 | ) | | (7,500 | ) | | 2,175,625 |
| | 1,679,375 |
| | 1,708,125 |
| 2,241,875 |
| | 2,171,875 |
| | 1,797,500 |
| Less debt issuance costs and original issue discount | (27,750 | ) | | (21,807 | ) | | (23,793 | ) | (24,589 | ) | | (25,992 | ) | | (20,925 | ) | | $ | 2,147,875 |
| | $ | 1,657,568 |
| | $ | 1,684,332 |
| $ | 2,217,286 |
| | $ | 2,145,883 |
| | $ | 1,776,575 |
|
| | (1) | The average interest rates do not reflect the effect of interest rate swap agreements (see Note 78). |
Term Debt and Revolving Credit Facilities In April 2017, the Partnershipwe amended and restated itsour existing credit agreement. The $1,025 million amended and restated credit agreement (the "2017 Credit Agreement") includes. As of March 29, 2020, the 2017 Credit Agreement included a $750 million senior secured term loan facility and a $275 million senior secured revolving credit facility. The 2017 Credit Agreement was amended on March 14, 2018 (subsequently referred to as the "Amended 2017 Credit Agreement"). Specifically, the interest rate for the senior secured term loan facility was amended to London InterBank Offered Rate ("LIBOR") plus 175 basis points (bps). The pricing terms for the 2018 amendment reflected $0.9 million of Original Issue Discount ("OID") and resulted in the write-off of debt issuance costs of $1.1 million which was recorded as a loss on early debt extinguishment during the first quarter of 2018.. The senior secured term loan facility matures April 15, 2024 and, as of March 29, 2020, $7.5 million iswas payable annually. The facilities provided under the Amended 2017 Credit Agreement are collateralized by substantially all of the assets of the Partnership.
TheAs of March 29, 2020, the senior secured revolving credit facility under the Amended 2017 Credit Agreement hashad a combined limit of $275 million with a Canadian sub-limit of $15 million. Borrowings under the senior secured revolving credit facility bearbore interest at LIBOR or Canadian Dollar Offered Rate ("CDOR") plus 200 bps.bps during the financial statement periods presented. The revolving credit facility is scheduled to mature in April 2022 and also provides for the issuance of documentary and standby letters of credit. As of June 30, 2019, no amounts wereMarch 29, 2020, $70.0 million was outstanding under the revolving credit facility. The Amended 2017 Credit Agreement requires the payment of a 37.5 bps commitment fee per annum on the unused portion of the credit facilities.
Subsequent to March 29, 2020, we further amended the Amended 2017 Credit Agreement in response to the COVID-19 pandemic. See the Subsequent Event footnote at Note 15 for further details.
Notes In June 2014, the Partnershipwe issued $450 million of 5.375% senior unsecured notes ("2024 senior notes"). The 2024 senior notes pay interest semi-annually in June and December, with the principal due in full on June 1, 2024. The notes may be redeemed, in whole or in part, at various prices depending on the date redeemed.
In April 2017, concurrently with amending and restating its credit facilities, the Partnershipwe issued $500 million of 5.375% senior unsecured notes maturing in 2027 ("2027 senior notes"). The net proceeds from the offering of the 2027 senior notes, together with borrowings under the 2017 Credit Agreement, were used to redeem all of the Partnership's 5.25% senior unsecured notes due 2021 ("2021 senior notes"), and pay accrued interest and transaction fees and expenses, to repay in full all amounts outstanding under its existing credit facilities and for general corporate purposes. The redemption of the 2021 senior notes and repayments of the amounts outstanding under the existing credit facilities resulted in the write-off of debt issuance costs of $7.7 million and debt premium payments of $15.5 million. Accordingly, the Partnership recorded a loss on early debt extinguishment of $23.1 million during 2017.
The 2027 senior notes pay interest semi-annually in April and October, with the principal due in full on April 15, 2027. Prior to April 15, 2020, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at a price equal to 105.375% of the principal amount thereof, together with accrued and unpaid interest and additional interest, if any. The notes may be redeemed, in whole or in part, at any time prior to April 15, 2022 at a price equal to 100% of the principal amount of the
notes redeemed plus a "make-whole" premium together with accrued and unpaid interest and additional interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed.
In June 2019, in conjunction with its subsequent eventthe acquisition of the Schlitterbahn parks (see Note 153), the Partnershipwe issued $500 million of 5.250% senior unsecured notes maturing in 2029 ("2029 senior notes"). The net proceeds from the offering of the 2029 senior notes were used to complete the acquisition, complete the purchase of land at California's Great America (see Note 1112), to pay transaction fees and expenses, and for general corporate purposes and repayment of the revolving credit facility.
The 2029 senior notes pay interest semi-annually in January and July, with the principal due in full on July 15, 2029. Prior to July 15, 2022, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at a price equal to 105.250% of the principal amount thereof, together with accrued and unpaid interest and additional interest, if any. The notes may be redeemed, in whole or in part, at any time prior to July 15, 2024 at a price equal to 100% of the principal amount of the notes redeemed plus a "make-whole" premium together with accrued and unpaid interest and additional interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed.
As market conditions warrant, the Partnershipwe may from time to time repurchase debt securities issued by the Partnership, in privately negotiated or open market transactions, by tender offer, exchange offer or otherwise.
Subsequent to March 29, 2020, we issued $1.0 billion of 5.500% senior secured notes in response to the COVID-19 pandemic. See the Subsequent Event footnote at Note 15 for further details.
Covenants TheAs of March 29, 2020, the Amended 2017 Credit Agreement includesincluded a Consolidated Leverage Ratio, which if breached for any reason and not cured could result in an event of default. The ratio iswas set at a maximum of 5.50x Consolidated Total Debt-to-Consolidated EBITDA. As of June 30, 2019, the Partnership wasMarch 29, 2020, we were in compliance with this financial condition covenant and all other financial covenants under the Amended 2017 Credit Agreement.
The Partnership'sOur long-term debt agreements include Restricted Payment provisions.provisions, which could limit our ability to pay partnership distributions. Pursuant to the terms of the indenture governing the Partnership's 2024 senior notes, which includesincluded the most restrictive of these Restricted Payments provisions the Partnership canas of March 29, 2020, if our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio was greater than 5.00x, we could still make Restricted Payments of $60 million annually so long as no default or event of default hashad occurred and is continuing; and the Partnership can make additional Restricted Payments if the Partnership'swas continuing. If our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio iswas less than or equal to 5.00x.5.00x, we could make Restricted Payments up to our Restricted Payment pool. Our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio was less than or equal to 5.00x as of March 29, 2020.
See the Subsequent Event footnote at Note 15 for a discussion of changes to our financial covenants made in connection with our April 2020 financing events.
(7)(8) Derivative Financial Instruments:
Derivative financial instruments are used within the Partnership’sour overall risk management program to manage certain interest rate and foreign currency risks. By utilizing a derivative instrument to hedge exposure to LIBOR rate changes, the Partnership iswe are exposed to counterparty credit risk, in particular the failure of the counterparty to perform under the terms of the derivative contract. To mitigate this risk, hedging instruments are placed with a counterparty that the Partnership believeswe believe poses minimal credit risk. The Partnership doesWe do not use derivative financial instruments for trading purposes.
The Partnership has fourWe have 4 interest rate swap agreements that mature on December 31, 2020 and convert $500 million of variable-rate debt to a rate of 4.39%. The PartnershipWe also has fourhave 4 additional interest rate swap agreements that convert the same notional amount to a rate of 4.63% for the period December 31, 2020 through December 31, 2023. None of the interest rate swap agreements are designated as hedging instruments. The fair market value of theour swap portfolio, was recorded inincluding the location within the unaudited condensed consolidated balance sheets, within "Derivative Liability" as of June 30, 2019 and December 31, 2018 and within "Other Assets" as of June 24, 2018for the periods presented were as follows:
| | (In thousands) | | June 30, 2019 | | December 31, 2018 | | June 24, 2018 | Balance Sheet Location | | March 29, 2020 | | December 31, 2019 | | March 31, 2019 | Derivatives not designated as hedging instruments: | | | | | | | Derivatives not designated as hedging instruments: | | | | | | | Interest rate swaps | | $ | (23,862 | ) | | $ | (6,705 | ) | | $ | 542 |
| | Interest Rate Swaps | | Other accrued liabilities | | $ | (8,718 | ) | | $ | (5,129 | ) | | $ | — |
| | | Derivative Liability | | (34,298 | ) | | (18,108 | ) | | (13,083 | ) | | | | $ | (43,016 | ) | | $ | (23,237 | ) | | $ | (13,083 | ) |
Instruments that do not qualify for hedge accounting or were de-designated are prospectively adjusted to fair value each reporting period through "Net effect of swaps" within the unaudited condensed consolidated statements of operations and comprehensive income. The amounts that were previously recorded as a component of AOCI prior to the de-designation are reclassified to earnings, and a corresponding realized gain or loss is recognized when the forecasted cash flow occurs. As a result of the first quarter 2016 amendments, the previously existing interest rate swap agreements were de-designated, and the amounts previously recorded in AOCI were amortized into earnings through the original December 31, 2018 maturity. Therefore, all losses in AOCI related to the effective cash flow hedge contracts prior to de-designation have been reclassified into earnings as of December 31, 2018.
The (gains) losses recognized in income on derivatives not designated as cash flow hedges were recorded in "Net effect of swaps" within the unaudited condensed consolidated statements of operations and comprehensive income for the periods presented as follows:
| | | | | | | | | | | | | | | | | | | | Three months ended | | Six months ended | (In thousands) | | June 30, 2019 | | June 24, 2018 | | June 30, 2019 | | June 24, 2018 | Change in fair market value | | $ | 10,779 |
| | $ | (3,271 | ) | | $ | 17,158 |
| | $ | (9,264 | ) | Amortization of amounts in AOCI | | — |
| | 2,365 |
| | — |
| | 4,730 |
| Net effect of swaps | | $ | 10,779 |
| | $ | (906 | ) | | $ | 17,158 |
| | $ | (4,534 | ) |
(8)(9) Fair Value Measurements:
The FASB's Accounting Standards Codification (ASC) 820 - Fair Value Measurements and Disclosures emphasizes that fair value is a market-based measurement that should be determined based on assumptions (inputs) that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable, and valuation techniques used to measure fair value should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Accordingly, the standard establishes a hierarchal disclosure framework that ranks the quality and reliability of information used to determine fair values. The hierarchy is associated with the level of pricing observability utilized in measuring fair value and defines three levels of inputs to the fair value measurement process. Quoted prices are the most reliable valuation inputs, whereas model values that include inputs based on unobservable data are the least reliable. Each fair value measurement must be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety.
The three broad levels of inputs defined by the fair value hierarchy are as follows:
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The table below presents the balances of assets and liabilities measured at fair value as of June 30, 2019,March 29, 2020, December 31, 2018,2019, and June 24, 2018March 31, 2019 on a recurring basis as well as the fair values of other financial instruments:instruments, including their locations within the unaudited condensed consolidated balance sheets:
| | (In thousands) | Unaudited Condensed Consolidated Balance Sheet Location | Fair Value Hierarchy Level | | June 30, 2019 | | December 31, 2018 | | June 24, 2018 | Balance Sheet Location | Fair Value Hierarchy Level | | March 29, 2020 | | December 31, 2019 | | March 31, 2019 | | Carrying Value | Fair Value | | Carrying Value | Fair Value | | Carrying Value | Fair Value | | Carrying Value | Fair Value | | Carrying Value | Fair Value | | Carrying Value | Fair Value | Financial assets (liabilities) measured on a recurring basis: | Short-term investments | Other current assets | Level 1 | | $ | 362 |
| $ | 362 |
| | $ | 511 |
| $ | 511 |
| | $ | 932 |
| $ | 932 |
| Other current assets | Level 1 | | $ | 99 |
| $ | 99 |
| | $ | 275 |
| $ | 275 |
| | $ | 492 |
| $ | 492 |
| Interest rate swaps | Other Assets (Derivative Liability) | Level 2 | | $ | (23,862 | ) | $ | (23,862 | ) | | $ | (6,705 | ) | $ | (6,705 | ) | | $ | 542 |
| $ | 542 |
| Derivative Liability (1) | Level 2 | | $ | (43,016 | ) | $ | (43,016 | ) | | $ | (23,237 | ) | $ | (23,237 | ) | | $ | (13,083 | ) | $ | (13,083 | ) | Other financial assets (liabilities): | Term debt | Long-Term Debt (1) | Level 2 | | $ | (725,625 | ) | $ | (725,625 | ) | | $ | (729,375 | ) | $ | (707,494 | ) | | $ | (733,125 | ) | $ | (736,791 | ) | Long-Term Debt (2) | Level 2 | | $ | (721,875 | ) | $ | (620,813 | ) | | $ | (721,875 | ) | $ | (725,484 | ) | | $ | (727,500 | ) | $ | (723,863 | ) | 2024 senior notes | Long-Term Debt (1) | Level 1 | | $ | (450,000 | ) | $ | (461,250 | ) | | $ | (450,000 | ) | $ | (441,000 | ) | | $ | (450,000 | ) | $ | (451,125 | ) | Long-Term Debt (2) | Level 1 | | $ | (450,000 | ) | $ | (382,500 | ) | | $ | (450,000 | ) | $ | (462,375 | ) | | $ | (450,000 | ) | $ | (457,875 | ) | 2027 senior notes | Long-Term Debt (1) | Level 1 | | $ | (500,000 | ) | $ | (516,250 | ) | | $ | (500,000 | ) | $ | (475,000 | ) | | $ | (500,000 | ) | $ | (496,250 | ) | Long-Term Debt (2) | Level 1 | | $ | (500,000 | ) | $ | (410,000 | ) | | $ | (500,000 | ) | $ | (535,000 | ) | | $ | (500,000 | ) | $ | (505,000 | ) | 2029 senior notes | Long-Term Debt (1) | Level 2 | | $ | (500,000 | ) | $ | (510,000 | ) | | — |
| — |
| | — |
| — |
| Long-Term Debt (2) | Level 2 | | $ | (500,000 | ) | $ | (417,500 | ) | | $ | (500,000 | ) | $ | (539,375 | ) | | — |
| — |
|
| | (1) | As of March 29, 2020 and December 31, 2019, $8.7 million and $5.1 million of the fair value of our swap portfolio, respectively, was classified as current and recorded in "Other accrued liabilities". |
| | (2) | Carrying values of long-term debt balances are before reductions for debt issuance costs and original issue discount of $27.8$24.6 million, $21.8$26.0 million, and $23.8$20.9 million as of June 30, 2019,March 29, 2020, December 31, 2018,2019, and June 24, 2018,March 31, 2019, respectively. |
Fair values of the interest rate swap agreements are determined using significant inputs, including the LIBOR forward curves, which are considered Level 2 observable market inputs.
Due to the negative impact of the COVID-19 pandemic on our expected future operating results, we tested our long-lived assets, goodwill, and indefinite-lived intangible assets for impairment as of March 29, 2020. We concluded the estimated fair value of the Schlitterbahn parks reporting unit and its related long-lived assets and trade name, and of the Dorney Park reporting unit no longer exceeded their carrying values. Therefore, as of March 29, 2020, these assets were measured at fair value. We recorded a $2.7 million, $73.6 million and $7.9 million impairment charge to long-lived assets, goodwill and the trade name at the Schlitterbahn parks, respectively, and an $6.8 million impairment charge to goodwill at Dorney Park during the first quarter of 2020. The long-lived asset impairment charge was recorded in "Loss on impairment / retirement of fixed assets", and the goodwill and intangible asset impairment charges were recorded in "Loss on impairment of goodwill and other intangibles" within the unaudited condensed consolidated statement of operations and comprehensive income as of March 29, 2020.
The fair value determination for our long-lived assets, reporting units and indefinite-lived intangible assets included numerous assumptions based on Level 3 inputs. The fair value of our long-lived assets was determined using a real and personal property appraisal of which the principal assumptions included the principal market and market participants upon sale. The primary assumptions used to determine the fair value of our reporting units included growth rates in revenues and costs, estimates of future expected changes in operating margins and cash expenditures, the anticipated time frame to re-open our parks following the COVID-19 pandemic, the related demand upon re-opening our parks following the COVID-19 pandemic, terminal value growth rates, future estimates of capital expenditures, changes in future capital requirements, and a weighted-average cost of capital that reflected current market conditions. The fair value of our indefinite-lived intangible assets was determined using a relief-from-royalty method of which the principal assumptions included royalty rates, growth rates in revenues, estimates of future expected changes in operating margins, the anticipated time frame to re-open our parks following the COVID-19 pandemic, the related demand upon re-opening our parks following the COVID-19 pandemic, terminal value growth rates, and a discount rate based on a weighted-average cost of capital that reflected current market conditions.
The carrying value of cash and cash equivalents, revolving credit loans, accounts receivable, current portion of term debt, accounts payable, and accrued liabilities approximates fair value because of the short maturity of these instruments. There were no other assets measured at fair value on a non-recurring basis as of June 30, 2019,March 29, 2020, December 31, 20182019 or June 24, 2018.March 31, 2019.
(10) Earnings per Unit: Net income (loss)loss per limited partner unit iswas calculated based on the following unit amounts: | | | | | | | | | | | | | | | | | | Three months ended | | Six months ended | | June 30, 2019 | | June 24, 2018 | | June 30, 2019 | | June 24, 2018 | | (In thousands, except per unit amounts) | Basic weighted average units outstanding | 56,474 |
| | 56,231 |
| | 56,334 |
| | 56,192 |
| Effect of dilutive units: | | | | | | | | Deferred units | 47 |
| | 46 |
| | — |
| | — |
| Restricted units | 243 |
| | 277 |
| | — |
| | — |
| Unit options | 122 |
| | 173 |
| | — |
| | — |
| Diluted weighted average units outstanding | 56,886 |
| | 56,727 |
| | 56,334 |
| | 56,192 |
| Net income (loss) per unit - basic | $ | 1.12 |
| | $ | 0.34 |
| | $ | (0.36 | ) | | $ | (1.14 | ) | Net income (loss) per unit - diluted | $ | 1.11 |
| | $ | 0.34 |
| | $ | (0.36 | ) | | $ | (1.14 | ) |
| | | | | | | | | | Three months ended | (In thousands, except per unit amounts) | March 29, 2020 | | March 31, 2019 | Basic weighted average units outstanding | 56,414 |
| | 56,310 |
| Diluted weighted average units outstanding | 56,414 |
| | 56,310 |
| Net loss per unit - basic | $ | (3.83 | ) | | $ | (1.49 | ) | Net loss per unit - diluted | $ | (3.83 | ) | | $ | (1.49 | ) |
(10)(11) Income and Partnership Taxes:
We are subject to publicly traded partnership tax (PTP tax) on certain partnership level gross income (net revenues less cost of food, merchandise, and games revenues), state and local income taxes on partnership income, U.S. federal, state and local income taxes on income from our corporate subsidiaries and foreign income taxes on our foreign subsidiary. As such, the total provision (benefit) for taxes includes amounts for the PTP gross income tax and federal, state, local and foreign income taxes. Under the applicable accounting rules, the total provision (benefit) for income taxes are recognized forincludes the amount of taxes payable by the Partnership’s corporate subsidiaries for the current year and for the impact of deferred tax assets and liabilities, which representrepresents future tax consequences of events that have beenare recognized differentlyin different periods in the financial statements than for tax purposes.
The incometotal tax provision (benefit) for interim periods is determined by applying an estimated annual effective tax rate to the applicable quarterly income (loss) of. Our consolidated estimated annual effective tax rate differs from the Partnership’s corporate subsidiaries. In additionstatutory federal income tax rate primarily due to state, local and foreign income taxes, on its corporate subsidiaries, the Partnership iscertain partnership level income not being subject to a publicly traded partnership tax (PTP tax) on partnership-level gross income (net revenues less cost of food, merchandise, and games revenues). As such, the Partnership’s total provision (benefit) for taxes includes amounts for both the PTPfederal tax and for income taxesbeneficial rate differences on its subsidiaries.loss carrybacks enacted by the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") on March 27, 2020.
The Partnership's unrecognizedUnrecognized tax benefits, including accrued interest and penalties, were not material in any period presented. The Partnership recognizesWe recognize interest and penalties related to unrecognized tax benefits as income tax expense.
(11)(12) Lease Commitments and Contingencies:
Lease Commitments
The Partnership has commitments under various operating leases at its parks. ThePrior to the second quarter of 2019, our most significant lease commitment was for the land on which California's Great America is located in the City of Santa Clara, which had an initial term through 2039 with renewal options through 2074. On June 28, 2019, the Partnershipwe purchased the land at California's Great America from the lessor, the City of Santa Clara, for $150.3 million. Following the purchase, the Partnership's remaining lease commitments were immaterial to the condensed consolidated financial statements at June 30, 2019. However, the Partnership assumed a material lease commitment when it completed its subsequent event acquisition on July 1, 2019 (see Note 15). The material lease commitment is for the land on which one of the acquired properties is located. This land lease is expected to result in the recognition of an additional right-of-use asset between $6 million and $8 million and an additional corresponding lease liability between $4 million and $6 million in the third quarter of 2019.The Partnership leases a portion of the California's Great America parking lot to the Santa Clara Stadium Authority during Levi's Stadium events. The lease is effective through the life of the stadium, or approximately 25 years, from the opening of the stadium through 2039. The lease payments were prepaid and the corresponding income is being recognized over the life of the stadium.
The Partnership has also entered into various operating leases at its parks for office space, office equipment, vehicles, and revenue-generating assets. These lease commitments are immaterial to the condensed consolidated financial statements. As a practical expedient, the Partnership recognizes lease payments for short-term leases in the condensed consolidated statement of operations and comprehensive income on a straight-line basis over the lease term and has elected to not separate lease components from non-lease components.
The Partnership's total lease cost and related supplemental information as of June 30, 2019 is listed below:
| | | | | | (In thousands, except for lease term and discount rate) | | June 30, 2019 | Operating lease expense | | $ | 3,935 |
| Variable lease expense | | 803 |
| Short-term lease expense | | 1,808 |
| Sublease income | | (244 | ) | Total lease cost | | $ | 6,302 |
| | | | Weighted-average remaining lease term | | 6.2 years |
| Weighted-average discount rate | | 4.9 | % | Operating cash flows for operating leases | | $ | 4,113 |
| Leased assets obtained in exchange for new operating lease liabilities (non-cash activity) | | $ | 1,131 |
|
Lease expense, which includes short-term rentals for equipment and machinery, for the six months ended June 24, 2018 totaled $7.1 million.
Future undiscounted cash flows under the Partnership's operating leases and a reconciliation to the operating lease liabilities recognized as of June 30, 2019 is included below:
| | | | | | (In thousands) | | June 30, 2019 | Undiscounted cash flows | | | Remainder of 2019 | | $ | 1,049 |
| 2020 | | 1,608 |
| 2021 | | 777 |
| 2022 | | 323 |
| 2023 | | 159 |
| Thereafter | | 931 |
| Total | | $ | 4,847 |
| | | | Present value of cash flows | | | Current lease liability | | $ | 1,768 |
| Lease Liability | | 2,365 |
| Total | | $ | 4,133 |
| | | | Difference between undiscounted cash flows and discounted cash flows | | $ | 714 |
|
Contingencies
The Partnership is a party to a number of lawsuits arising in the normal course of business. In the opinion of management, none of these matters are expected to have a material effect in the aggregate on the Partnership's condensed consolidated financial statements.
(12) Changes in Accumulated Other Comprehensive Income by Component:
The following tables reflect the changes in accumulated other comprehensive income (loss) related to limited partners' equity for the three- and six-month periods ended June 30, 2019 and June 24, 2018:
| | | | | | | | | | | | | | (In thousands) | | Foreign Currency Translation | | Cash Flow Hedging Derivative Activity | | Total | For the three months ended | | | | Balance as of March 25, 2018 | | $ | 8,646 |
| | $ | (6,348 | ) | | $ | 2,298 |
| Other comprehensive income before reclassifications, net of tax $1,157 | | 6,662 |
| | — |
| | 6,662 |
| Amounts reclassified from accumulated other comprehensive income, net of tax ($249) | | — |
| | 2,116 |
| | 2,116 |
| Balance as of June 24, 2018 | | $ | 15,308 |
| | $ | (4,232 | ) | | $ | 11,076 |
| | | | | | | | Balance as of March 31, 2019 | | $ | 18,232 |
| | $ | — |
| | $ | 18,232 |
| Other comprehensive income before reclassifications, net of tax ($746) | | (4,632 | ) | | — |
| | (4,632 | ) | Balance as of June 30, 2019 | | $ | 13,600 |
| | $ | — |
| | $ | 13,600 |
| | | | | | | | For the six months ended | | Foreign Currency Translation | | Cash Flow Hedging Derivative Activity | | Total | Balance as of December 31, 2017 | | $ | 4,042 |
| | $ | (7,975 | ) | | $ | (3,933 | ) | Other comprehensive income before reclassifications, net of tax $2,302 | | 11,266 |
| | — |
| | 11,266 |
| Amounts reclassified from accumulated other comprehensive income, net of tax ($596) | | — |
| | 4,134 |
| | 4,134 |
| Reclassification of stranded tax effect | | — |
| | (391 | ) | | (391 | ) | Balance as of June 24, 2018 | | $ | 15,308 |
| | $ | (4,232 | ) | | $ | 11,076 |
| | | | | | | | Balance as of December 31, 2018 | | $ | 21,282 |
| | $ | — |
| | $ | 21,282 |
| Other comprehensive income before reclassifications, net of tax ($1,620) | | (7,682 | ) | | — |
| | (7,682 | ) | Balance as of June 30, 2019 | | $ | 13,600 |
| | $ | — |
| | $ | 13,600 |
|
| | | | | | | | | | | | | | | | | | Reclassifications Out of Accumulated Other Comprehensive Income | (In thousands) | Affected Income Statement Location | Three months ended | | Six months ended | AOCI Component | June 30, 2019 | | June 24, 2018 | | June 30, 2019 | | June 24, 2018 | Interest rate contracts | Net effect of swaps | $ | — |
| | $ | 2,365 |
| | $ | — |
| | $ | 4,730 |
| Provision for taxes | Provision for taxes | — |
| | (249 | ) | | — |
| | (596 | ) | Losses on cash flow hedges | Net of tax | $ | — |
| | $ | 2,116 |
| | $ | — |
| | $ | 4,134 |
|
(13) Consolidating Financial Information of Guarantors and Issuers of 2024 Senior Notes: Cedar Fair, L.P., Canada's Wonderland Company ("Cedar Canada"), and Magnum Management Corporation ("Magnum") are the co-issuers of the Partnership's 2024 senior notes (see Note 67). The notes have been fully and unconditionally guaranteed, on a joint and several basis, by each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum) that guarantees the Partnership's senior secured credit facilities.. There are no non-guarantor subsidiaries.
The following consolidating schedules present condensed financial information for Cedar Fair, L.P., Cedar Canada, and Magnum, the co-issuers, and each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum), the guarantors (on a combined basis), as of June 30, 2019,March 29, 2020, December 31, 2018,2019, and June 24, 2018March 31, 2019 and for the three- and six-monththree month periods ended June 30, 2019March 29, 2020 and June 24, 2018.March 31, 2019. In lieu of providing separate unaudited financial statements for the guarantor subsidiaries, the accompanying unaudited condensed consolidating financial statements have been included.
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET June 30, 2019March 29, 2020
(In thousands) | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | — |
| | $ | — |
| | $ | 34,520 |
| | $ | 292,717 |
| | $ | (2,495 | ) | | $ | 324,742 |
| | $ | — |
| | $ | — |
| | $ | 22,316 |
| | $ | 6,097 |
| | $ | (2,118 | ) | | $ | 26,295 |
| Receivables | | — |
| | 1,214 |
| | 37,121 |
| | 1,018,249 |
| | (967,038 | ) | | 89,546 |
| | — |
| | 1,383 |
| | 40,143 |
| | 1,038,924 |
| | (1,054,798 | ) | | 25,652 |
| Inventories | | — |
| | — |
| | 3,804 |
| | 43,056 |
| | — |
| | 46,860 |
| | — |
| | — |
| | 498 |
| | 6,896 |
| | — |
| | 7,394 |
| Other current assets | | 400 |
| | 14,347 |
| | 9,710 |
| | 34,453 |
| | (20,476 | ) | | 38,434 |
| | 74 |
| | 18,577 |
| | 5,279 |
| | 30,988 |
| | (21,300 | ) | | 33,618 |
| | | 400 |
| | 15,561 |
| | 85,155 |
| | 1,388,475 |
| | (990,009 | ) | | 499,582 |
| | 74 |
| | 19,960 |
| | 68,236 |
| | 1,082,905 |
| | (1,078,216 | ) | | 92,959 |
| Property and Equipment, net | | — |
| | 785 |
| | 186,578 |
| | 1,612,103 |
| | — |
| | 1,799,466 |
| | — |
| | 690 |
| | 169,548 |
| | 1,705,875 |
| | — |
| | 1,876,113 |
| Investment in Park | | 524,449 |
| | 1,160,193 |
| | 269,259 |
| | 203,690 |
| | (2,157,591 | ) | | — |
| | 397,743 |
| | 1,159,177 |
| | 289,440 |
| | 174,148 |
| | (2,020,508 | ) | | — |
| Goodwill | | 674 |
| | — |
| | 60,919 |
| | 119,606 |
| | — |
| | 181,199 |
| | 674 |
| | — |
| | 56,718 |
| | 217,267 |
| | — |
| | 274,659 |
| Other Intangibles, net | | — |
| | — |
| | 13,582 |
| | 23,114 |
| | — |
| | 36,696 |
| | — |
| | — |
| | 12,643 |
| | 39,015 |
| | — |
| | 51,658 |
| Deferred Tax Asset | | — |
| | 12,733 |
| | — |
| | — |
| | (12,733 | ) | | — |
| | — |
| | 43,179 |
| | — |
| | — |
| | (43,179 | ) | | — |
| Right-of-Use Asset | | — |
| | — |
| | 92 |
| | 4,262 |
| | — |
| | 4,354 |
| | — |
| | — |
| | 128 |
| | 13,560 |
| | — |
| | 13,688 |
| Other Assets | | — |
| | — |
| | 38 |
| | 11,471 |
| | — |
| | 11,509 |
| | — |
| | — |
| | 4,411 |
| | 75,995 |
| | — |
| | 80,406 |
| | | $ | 525,523 |
| | $ | 1,189,272 |
| | $ | 615,623 |
| | $ | 3,362,721 |
| | $ | (3,160,333 | ) | | $ | 2,532,806 |
| | $ | 398,491 |
| | $ | 1,223,006 |
| | $ | 601,124 |
| | $ | 3,308,765 |
| | $ | (3,141,903 | ) | | $ | 2,389,483 |
| LIABILITIES AND PARTNERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | Current maturities of long-term debt | | $ | — |
| | $ | 1,313 |
| | $ | — |
| | $ | 6,187 |
| | $ | — |
| | $ | 7,500 |
| | $ | — |
| | $ | 1,313 |
| | $ | — |
| | $ | 6,187 |
| | $ | — |
| | $ | 7,500 |
| Accounts payable | | 616,886 |
| | 356,792 |
| | 4,867 |
| | 40,272 |
| | (969,533 | ) | | 49,284 |
| | 664,545 |
| | 393,124 |
| | 1,660 |
| | 36,587 |
| | (1,056,916 | ) | | 39,000 |
| Deferred revenue | | — |
| | — |
| | 25,057 |
| | 192,185 |
| | — |
| | 217,242 |
| | — |
| | — |
| | 3,430 |
| | 26,951 |
| | — |
| | 30,381 |
| Accrued interest | | 6 |
| | 4 |
| | 1,955 |
| | 6,211 |
| | — |
| | 8,176 |
| | 268 |
| | 179 |
| | 7,966 |
| | 20,204 |
| | — |
| | 28,617 |
| Accrued taxes | | 2,176 |
| | — |
| | — |
| | 34,576 |
| | (20,476 | ) | | 16,276 |
| | 1,071 |
| | — |
| | — |
| | 26,885 |
| | (21,300 | ) | | 6,656 |
| Accrued salaries, wages and benefits | | — |
| | 19,642 |
| | 2,064 |
| | — |
| | — |
| | 21,706 |
| | — |
| | 15,682 |
| | 1,184 |
| | — |
| | — |
| | 16,866 |
| Self-insurance reserves | | — |
| | 9,541 |
| | 1,459 |
| | 10,427 |
| | — |
| | 21,427 |
| | — |
| | 10,345 |
| | 1,476 |
| | 13,306 |
| | — |
| | 25,127 |
| Other accrued liabilities | | 2,629 |
| | 5,959 |
| | 650 |
| | 8,899 |
| | — |
| | 18,137 |
| | 6,821 |
| | 9,404 |
| | 136 |
| | 7,331 |
| | — |
| | 23,692 |
| | | 621,697 |
| | 393,251 |
| | 36,052 |
| | 298,757 |
| | (990,009 | ) | | 359,748 |
| | 672,705 |
| | 430,047 |
| | 15,852 |
| | 137,451 |
| | (1,078,216 | ) | | 177,839 |
| Deferred Tax Liability | | — |
| | — |
| | 14,071 |
| | 87,516 |
| | (12,733 | ) | | 88,854 |
| | — |
| | — |
| | 13,711 |
| | 88,489 |
| | (43,179 | ) | | 59,021 |
| Derivative Liability | | 4,026 |
| | 19,836 |
| | — |
| | — |
| | — |
| | 23,862 |
| | — |
| | 34,298 |
| | — |
| | — |
| | — |
| | 34,298 |
| Lease Liability | | — |
| | — |
| | 73 |
| | 2,292 |
| | — |
| | 2,365 |
| | — |
| | — |
| | 100 |
| | 10,210 |
| | — |
| | 10,310 |
| Other Liabilities | | — |
| | 657 |
| | — |
| | 9,645 |
| | — |
| | 10,302 |
| | — |
| | 546 |
| | 7,447 |
| | 156,950 |
| | — |
| | 164,943 |
| Long-Term Debt: | | | | | | | | | | | | | | | | | | | | | | | | | Revolving credit loans | | | — |
| | — |
| | — |
| | 70,000 |
| | — |
| | 70,000 |
| Term debt | | — |
| | 125,975 |
| | — |
| | 590,853 |
| | — |
| | 716,828 |
| | — |
| | 125,478 |
| | — |
| | 589,207 |
| | — |
| | 714,685 |
| Notes | | — |
| | — |
| | 446,443 |
| | 984,604 |
| | — |
| | 1,431,047 |
| | — |
| | — |
| | 447,194 |
| | 985,407 |
| | — |
| | 1,432,601 |
| | | — |
| | 125,975 |
| | 446,443 |
| | 1,575,457 |
| | — |
| | 2,147,875 |
| | — |
| | 125,478 |
| | 447,194 |
| | 1,644,614 |
| | — |
| | 2,217,286 |
| | | | | | | | | | | | | | | | | | | | | | | | | | Equity | | (100,200 | ) | | 649,553 |
| | 118,984 |
| | 1,389,054 |
| | (2,157,591 | ) | | (100,200 | ) | | Partners' (Deficit) Equity | | | (274,214 | ) | | 632,637 |
| | 116,820 |
| | 1,271,051 |
| | (2,020,508 | ) | | (274,214 | ) | | | $ | 525,523 |
| | $ | 1,189,272 |
| | $ | 615,623 |
| | $ | 3,362,721 |
| | $ | (3,160,333 | ) | | $ | 2,532,806 |
| | $ | 398,491 |
| | $ | 1,223,006 |
| | $ | 601,124 |
| | $ | 3,308,765 |
| | $ | (3,141,903 | ) | | $ | 2,389,483 |
|
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET December 31, 20182019 (In thousands) | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | — |
| | $ | — |
| | $ | 73,326 |
| | $ | 32,715 |
| | $ | (692 | ) | | $ | 105,349 |
| | $ | — |
| | $ | — |
| | $ | 66,357 |
| | $ | 116,428 |
| | $ | (533 | ) | | $ | 182,252 |
| Receivables | | — |
| | 1,093 |
| | 34,497 |
| | 938,397 |
| | (922,469 | ) | | 51,518 |
| | — |
| | 1,299 |
| | 35,309 |
| | 1,077,688 |
| | (1,051,190 | ) | | 63,106 |
| Inventories | | — |
| | — |
| | 2,135 |
| | 28,618 |
| | — |
| | 30,753 |
| | — |
| | — |
| | 2,786 |
| | 30,116 |
| | — |
| | 32,902 |
| Other current assets | | 179 |
| | 1,411 |
| | 5,462 |
| | 10,544 |
| | (5,007 | ) | | 12,589 |
| | 182 |
| | 1,269 |
| | 541 |
| | 13,929 |
| | — |
| | 15,921 |
| | | 179 |
| | 2,504 |
| | 115,420 |
| | 1,010,274 |
| | (928,168 | ) | | 200,209 |
| | 182 |
| | 2,568 |
| | 104,993 |
| | 1,238,161 |
| | (1,051,723 | ) | | 294,181 |
| Property and Equipment, net | | — |
| | 802 |
| | 172,344 |
| | 1,426,292 |
| | — |
| | 1,599,438 |
| | — |
| | 769 |
| | 183,468 |
| | 1,657,371 |
| | — |
| | 1,841,608 |
| Investment in Park | | 601,706 |
| | 1,182,345 |
| | 262,462 |
| | 218,575 |
| | (2,265,088 | ) | | — |
| | 641,068 |
| | 1,356,149 |
| | 292,744 |
| | 246,629 |
| | (2,536,590 | ) | | — |
| Goodwill | | 674 |
| | — |
| | 58,440 |
| | 119,605 |
| | — |
| | 178,719 |
| | 674 |
| | — |
| | 61,382 |
| | 297,598 |
| | — |
| | 359,654 |
| Other Intangibles, net | | — |
| | — |
| | 13,030 |
| | 23,346 |
| | — |
| | 36,376 |
| | — |
| | — |
| | 13,682 |
| | 46,217 |
| | — |
| | 59,899 |
| Deferred Tax Asset | | — |
| | 18,224 |
| | — |
| | — |
| | (18,224 | ) | | — |
| | — |
| | 24,308 |
| | — |
| | — |
| | (24,308 | ) | | — |
| Right-of-Use Asset | | | — |
| | — |
| | 157 |
| | 14,167 |
| | — |
| | 14,324 |
| Other Assets | | — |
| | — |
| | 36 |
| | 9,405 |
| | — |
| | 9,441 |
| | — |
| | — |
| | 38 |
| | 11,441 |
| | — |
| | 11,479 |
| | | $ | 602,559 |
| | $ | 1,203,875 |
| | $ | 621,732 |
| | $ | 2,807,497 |
| | $ | (3,211,480 | ) | | $ | 2,024,183 |
| | $ | 641,924 |
| | $ | 1,383,794 |
| | $ | 656,464 |
| | $ | 3,511,584 |
| | $ | (3,612,621 | ) | | $ | 2,581,145 |
| LIABILITIES AND PARTNERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | Current maturities of long-term debt | | $ | — |
| | $ | 984 |
| | $ | — |
| | $ | 4,641 |
| | $ | — |
| | $ | 5,625 |
| | $ | — |
| | $ | 1,313 |
| | $ | — |
| | $ | 6,187 |
| | $ | — |
| | $ | 7,500 |
| Accounts payable | | 565,472 |
| | 359,953 |
| | 2,430 |
| | 18,620 |
| | (923,161 | ) | | 23,314 |
| | 644,839 |
| | 407,384 |
| | 2,799 |
| | 26,045 |
| | (1,051,723 | ) | | 29,344 |
| Deferred revenue | | — |
| | — |
| | 8,460 |
| | 98,614 |
| | — |
| | 107,074 |
| | — |
| | — |
| | 10,930 |
| | 140,447 |
| | — |
| | 151,377 |
| Accrued interest | | 1 |
| | 1 |
| | 2,054 |
| | 5,871 |
| | — |
| | 7,927 |
| | 7 |
| | 5 |
| | 2,054 |
| | 19,376 |
| | — |
| | 21,442 |
| Accrued taxes | | 443 |
| | 6,668 |
| | — |
| | 27,487 |
| | (5,007 | ) | | 29,591 |
| | 448 |
| | 1,656 |
| | 2,819 |
| | 34,314 |
| | — |
| | 39,237 |
| Accrued salaries, wages and benefits | | — |
| | 17,552 |
| | 1,234 |
| | — |
| | — |
| | 18,786 |
| | — |
| | 27,080 |
| | 2,469 |
| | — |
| | — |
| | 29,549 |
| Self-insurance reserves | | — |
| | 10,214 |
| | 1,433 |
| | 12,374 |
| |
|
| | 24,021 |
| | — |
| | 10,549 |
| | 1,624 |
| | 12,492 |
| | — |
| | 24,665 |
| Other accrued liabilities | | 3,318 |
| | 4,903 |
| | 136 |
| | 10,024 |
| | — |
| | 18,381 |
| | 6,596 |
| | 6,389 |
| | 279 |
| | 7,760 |
| | — |
| | 21,024 |
| | | 569,234 |
| | 400,275 |
| | 15,747 |
| | 177,631 |
| | (928,168 | ) | | 234,719 |
| | 651,890 |
| | 454,376 |
| | 22,974 |
| | 246,621 |
| | (1,051,723 | ) | | 324,138 |
| Deferred Tax Liability | | — |
| | — |
| | 12,425 |
| | 87,516 |
| | (18,224 | ) | | 81,717 |
| | — |
| | — |
| | 16,621 |
| | 89,733 |
| | (24,308 | ) | | 82,046 |
| Derivative Liability | | 909 |
| | 5,796 |
| | — |
| | — |
| | — |
| | 6,705 |
| | — |
| | 18,108 |
| | — |
| | — |
| | — |
| | 18,108 |
| Lease Liability | | | — |
| | — |
| | 125 |
| | 10,475 |
| | — |
| | 10,600 |
| Other Liabilities | | — |
| | 1,169 |
| | — |
| | 9,889 |
| | — |
| | 11,058 |
| | — |
| | 935 |
| | — |
| | 9,401 |
| | — |
| | 10,336 |
| Long-Term Debt: | | | | | | | | | | | | | | | | | | | | | | | | | Term debt | | — |
| | 126,525 |
| | — |
| | 592,982 |
| | — |
| | 719,507 |
| | — |
| | 125,425 |
| | — |
| | 588,725 |
| | — |
| | 714,150 |
| Notes | | — |
| | — |
| | 446,241 |
| | 491,820 |
| | — |
| | 938,061 |
| | — |
| | — |
| | 446,781 |
| | 984,952 |
| | — |
| | 1,431,733 |
| | | — |
| | 126,525 |
| | 446,241 |
| | 1,084,802 |
| | — |
| | 1,657,568 |
| | — |
| | 125,425 |
| | 446,781 |
| | 1,573,677 |
| | — |
| | 2,145,883 |
| | | | | | | | | | | | | | | | | | | | | | | | | | Equity | | 32,416 |
| | 670,110 |
| | 147,319 |
| | 1,447,659 |
| | (2,265,088 | ) | | 32,416 |
| | Partners' (Deficit) Equity | | | (9,966 | ) | | 784,950 |
| | 169,963 |
| | 1,581,677 |
| | (2,536,590 | ) | | (9,966 | ) | | | $ | 602,559 |
| | $ | 1,203,875 |
| | $ | 621,732 |
| | $ | 2,807,497 |
| | $ | (3,211,480 | ) | | $ | 2,024,183 |
| | $ | 641,924 |
| | $ | 1,383,794 |
| | $ | 656,464 |
| | $ | 3,511,584 |
| | $ | (3,612,621 | ) | | $ | 2,581,145 |
|
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET June 24, 2018March 31, 2019
(In thousands) | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | — |
| | $ | — |
| | $ | 38,934 |
| | $ | 21,874 |
| | $ | (689 | ) | | $ | 60,119 |
| | $ | — |
| | $ | — |
| | $ | 24,305 |
| | $ | 36,437 |
| | $ | (470 | ) | | $ | 60,272 |
| Receivables | | — |
| | 1,198 |
| | 66,120 |
| | 869,175 |
| | (851,114 | ) | | 85,379 |
| | — |
| | 1,765 |
| | 33,390 |
| | 931,790 |
| | (922,614 | ) | | 44,331 |
| Inventories | | — |
| | — |
| | 3,821 |
| | 43,179 |
| | — |
| | 47,000 |
| | — |
| | — |
| | 2,553 |
| | 40,076 |
| | — |
| | 42,629 |
| Other current assets | | 398 |
| | 3,293 |
| | 2,429 |
| | 36,476 |
| | (1,952 | ) | | 40,644 |
| | 73 |
| | 7,158 |
| | 10,382 |
| | 34,569 |
| | (13,869 | ) | | 38,313 |
| | | 398 |
| | 4,491 |
| | 111,304 |
| | 970,704 |
| | (853,755 | ) | | 233,142 |
| | 73 |
| | 8,923 |
| | 70,630 |
| | 1,042,872 |
| | (936,953 | ) | | 185,545 |
| Property and Equipment, net | | — |
| | 819 |
| | 174,962 |
| | 1,443,217 |
| | — |
| | 1,618,998 |
| | — |
| | 794 |
| | 182,520 |
| | 1,463,440 |
| | — |
| | 1,646,754 |
| Investment in Park | | 476,659 |
| | 1,009,725 |
| | 243,201 |
| | 186,540 |
| | (1,916,125 | ) | | — |
| | 489,463 |
| | 1,076,487 |
| | 257,859 |
| | 188,484 |
| | (2,012,293 | ) | | — |
| Goodwill | | 674 |
| | — |
| | 59,907 |
| | 119,605 |
| | — |
| | 180,186 |
| | 674 |
| | — |
| | 59,660 |
| | 119,605 |
| | — |
| | 179,939 |
| Other Intangibles, net | | — |
| | — |
| | 13,362 |
| | 23,629 |
| | — |
| | 36,991 |
| | — |
| | — |
| | 13,302 |
| | 23,340 |
| | — |
| | 36,642 |
| Deferred Tax Asset | | | — |
| | 18,310 |
| | — |
| | — |
| | (18,310 | ) | | — |
| Right-of-Use Asset | | | — |
| | — |
| | 31 |
| | 72,563 |
| | — |
| | 72,594 |
| Other Assets | | 74 |
| | 467 |
| | 38 |
| | 9,320 |
| | — |
| | 9,899 |
| | — |
| | — |
| | 37 |
| | 10,959 |
| | — |
| | 10,996 |
| | | $ | 477,805 |
| | $ | 1,015,502 |
| | $ | 602,774 |
| | $ | 2,753,015 |
| | $ | (2,769,880 | ) | | $ | 2,079,216 |
| | $ | 490,210 |
| | $ | 1,104,514 |
| | $ | 584,039 |
| | $ | 2,921,263 |
| | $ | (2,967,556 | ) | | $ | 2,132,470 |
| LIABILITIES AND PARTNERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | Current maturities of long-term debt | | $ | — |
| | $ | 328 |
| | $ | — |
| | $ | 1,547 |
| | $ | — |
| | $ | 1,875 |
| | $ | — |
| | $ | 1,313 |
| | $ | — |
| | $ | 6,187 |
| | $ | — |
| | $ | 7,500 |
| Accounts payable | | 542,730 |
| | 313,605 |
| | 5,069 |
| | 39,950 |
| | (851,803 | ) | | 49,551 |
| | 593,593 |
| | 331,881 |
| | 2,779 |
| | 42,085 |
| | (923,084 | ) | | 47,254 |
| Deferred revenue | | — |
| | — |
| | 20,950 |
| | 190,223 |
| | — |
| | 211,173 |
| | — |
| | 500 |
| | 11,009 |
| | 139,827 |
| | — |
| | 151,336 |
| Accrued interest | | 137 |
| | 92 |
| | 1,571 |
| | 7,465 |
| | — |
| | 9,265 |
| | 4 |
| | 2 |
| | 8,033 |
| | 12,847 |
| | — |
| | 20,886 |
| Accrued taxes | | 1,453 |
| | — |
| | 3,668 |
| | 9,571 |
| | (1,952 | ) | | 12,740 |
| | 1,111 |
| | — |
| | — |
| | 22,641 |
| | (13,869 | ) | | 9,883 |
| Accrued salaries, wages and benefits | | — |
| | 23,837 |
| | 2,391 |
| | — |
| | — |
| | 26,228 |
| | — |
| | 13,087 |
| | 909 |
| | — |
| | — |
| | 13,996 |
| Self-insurance reserves | | — |
| | 10,355 |
| | 1,482 |
| | 13,435 |
| | — |
| | 25,272 |
| | — |
| | 9,602 |
| | 1,441 |
| | 12,536 |
| | — |
| | 23,579 |
| Other accrued liabilities | | 3,556 |
| | 7,014 |
| | 670 |
| | 13,155 |
| | — |
| | 24,395 |
| | 3,201 |
| | 4,297 |
| | 148 |
| | 12,099 |
| | — |
| | 19,745 |
| | | 547,876 |
| | 355,231 |
| | 35,801 |
| | 275,346 |
| | (853,755 | ) | | 360,499 |
| | 597,909 |
| | 360,682 |
| | 24,319 |
| | 248,222 |
| | (936,953 | ) | | 294,179 |
| Deferred Tax Liability | | — |
| | 22 |
| | 11,507 |
| | 81,945 |
| | — |
| | 93,474 |
| | — |
| | — |
| | 13,312 |
| | 87,516 |
| | (18,310 | ) | | 82,518 |
| Derivative Liability | | | 1,899 |
| | 11,184 |
| | — |
| | — |
| | — |
| | 13,083 |
| Lease Liability | | | — |
| | — |
| | 20 |
| | 65,379 |
| | — |
| | 65,399 |
| Other Liabilities | | — |
| | 839 |
| | — |
| | 10,143 |
| | — |
| | 10,982 |
| | — |
| | 547 |
| | — |
| | 9,767 |
| | — |
| | 10,314 |
| Long-Term Debt: | | | | | | | | | | | | | | | | | | | | | | | | | Revolving credit loans | | — |
| | — |
| | — |
| | 25,000 |
| | — |
| | 25,000 |
| | — |
| | — |
| | — |
| | 120,000 |
| | — |
| | 120,000 |
| Term debt | | — |
| | 127,075 |
| | — |
| | 595,111 |
| | — |
| | 722,186 |
| | — |
| | 126,250 |
| | — |
| | 591,918 |
| | — |
| | 718,168 |
| Notes | | — |
| | — |
| | 445,790 |
| | 491,356 |
| | — |
| | 937,146 |
| | — |
| | — |
| | 446,339 |
| | 492,068 |
| | — |
| | 938,407 |
| | | — |
| | 127,075 |
| | 445,790 |
| | 1,111,467 |
| | — |
| | 1,684,332 |
| | — |
| | 126,250 |
| | 446,339 |
| | 1,203,986 |
| | — |
| | 1,776,575 |
| | | | | | | | | | | | | | | | | | | | | | | | | | Equity | | (70,071 | ) | | 532,335 |
| | 109,676 |
| | 1,274,114 |
| | (1,916,125 | ) | | (70,071 | ) | | Partners' (Deficit) Equity | | | (109,598 | ) | | 605,851 |
| | 100,049 |
| | 1,306,393 |
| | (2,012,293 | ) | | (109,598 | ) | | | $ | 477,805 |
| | $ | 1,015,502 |
| | $ | 602,774 |
| | $ | 2,753,015 |
| | $ | (2,769,880 | ) | | $ | 2,079,216 |
| | $ | 490,210 |
| | $ | 1,104,514 |
| | $ | 584,039 |
| | $ | 2,921,263 |
| | $ | (2,967,556 | ) | | $ | 2,132,470 |
|
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Three Months Ended March 29, 2020 (In thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | | | | | | | | | | | | | | Net revenues | | $ | (50,355 | ) | | $ | (49,885 | ) | | $ | 100 |
| | $ | 33,309 |
| | $ | 120,466 |
| | $ | 53,635 |
| Costs and expenses: | | | | | | | | | | | | | Cost of food, merchandise, and games revenues | | — |
| | — |
| | 3 |
| | 6,382 |
| | — |
| | 6,385 |
| Operating expenses | | 1 |
| | 53,895 |
| | 6,046 |
| | (74,040 | ) | | 120,466 |
| | 106,368 |
| Selling, general and administrative | | (362 | ) | | 8,851 |
| | 1,017 |
| | 15,303 |
| | — |
| | 24,809 |
| Depreciation and amortization | | — |
| | 8 |
| | 35 |
| | 5,045 |
| | — |
| | 5,088 |
| Loss on impairment / retirement of fixed assets, net | | — |
| | — |
| | 1,536 |
| | 5,231 |
| | — |
| | 6,767 |
| Loss on impairment of goodwill and other intangibles | | — |
| | — |
| | — |
| | 88,181 |
| | — |
| | 88,181 |
| | | (361 | ) | | 62,754 |
| | 8,637 |
| | 46,102 |
| | 120,466 |
| | 237,598 |
| Operating loss | | (49,994 | ) | | (112,639 | ) | | (8,537 | ) | | (12,793 | ) | | — |
| | (183,963 | ) | Interest expense, net | | 6,030 |
| | 4,769 |
| | 5,897 |
| | 10,175 |
| | — |
| | 26,871 |
| Net effect of swaps | | 2,154 |
| | 17,625 |
| | — |
| | — |
| | — |
| | 19,779 |
| Loss on foreign currency | | — |
| | 7 |
| | 34,195 |
| | — |
| | — |
| | 34,202 |
| Other expense (income) | | 59 |
| | (8,200 | ) | | (152 | ) | | 8,462 |
| | — |
| | 169 |
| Loss from investment in affiliates | | 157,190 |
| | 69,205 |
| | 3,304 |
| | 49,048 |
| | (278,747 | ) | | — |
| Loss before taxes | | (215,427 | ) | | (196,045 | ) | | (51,781 | ) | | (80,478 | ) | | 278,747 |
| | (264,984 | ) | Provision (benefit) for taxes | | 550 |
| | (38,857 | ) | | (2,730 | ) | | (7,970 | ) | | — |
| | (49,007 | ) | Net loss | | $ | (215,977 | ) | | $ | (157,188 | ) | | $ | (49,051 | ) | | $ | (72,508 | ) | | $ | 278,747 |
| | $ | (215,977 | ) | Other comprehensive income, (net of tax): | | | | | | | | | | | | | Foreign currency translation adjustment | | 15,905 |
| | — |
| | 15,905 |
| | — |
| | (15,905 | ) | | 15,905 |
| Other comprehensive income, (net of tax) | | 15,905 |
| | — |
| | 15,905 |
| | — |
| | (15,905 | ) | | 15,905 |
| Total comprehensive loss | | $ | (200,072 | ) | | $ | (157,188 | ) | | $ | (33,146 | ) | | $ | (72,508 | ) | | $ | 262,842 |
| | $ | (200,072 | ) |
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Three Months Ended June 30,March 31, 2019 (In thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | | | | | | | | | | | | | | Net revenues | | $ | 30,240 |
| | $ | 107,811 |
| | $ | 38,374 |
| | $ | 410,780 |
| | $ | (151,015 | ) | | $ | 436,190 |
| Costs and expenses: | | | | | | | | | | | | | Cost of food, merchandise, and games revenues | | — |
| | 51 |
| | 3,874 |
| | 35,883 |
| | — |
| | 39,808 |
| Operating expenses | | 2 |
| | 102,173 |
| | 15,034 |
| | 211,577 |
| | (151,015 | ) | | 177,771 |
| Selling, general and administrative | | 186 |
| | 16,000 |
| | 3,847 |
| | 39,748 |
| | — |
| | 59,781 |
| Depreciation and amortization | | — |
| | 8 |
| | 5,682 |
| | 50,214 |
| | — |
| | 55,904 |
| Loss on impairment / retirement of fixed assets, net | | — |
| | — |
| | 25 |
| | 657 |
| | — |
| | 682 |
| | | 188 |
| | 118,232 |
| | 28,462 |
| | 338,079 |
| | (151,015 | ) | | 333,946 |
| Operating income (loss) | | 30,052 |
| | (10,421 | ) | | 9,912 |
| | 72,701 |
| | — |
| | 102,244 |
| Interest expense, net | | 6,673 |
| | 4,996 |
| | 6,045 |
| | 5,132 |
| | — |
| | 22,846 |
| Net effect of swaps | | 2,126 |
| | 8,653 |
| | — |
| | — |
| | — |
| | 10,779 |
| (Gain) loss on foreign currency | | — |
| | 12 |
| | (9,484 | ) | | — |
| | — |
| | (9,472 | ) | Other (income) expense | | 64 |
| | (24,465 | ) | | 926 |
| | 23,592 |
| | — |
| | 117 |
| Income from investment in affiliates | | (45,594 | ) | | (45,111 | ) | | (11,401 | ) | | (23,567 | ) | | 125,673 |
| | — |
| Income before taxes | | 66,783 |
| | 45,494 |
| | 23,826 |
| | 67,544 |
| | (125,673 | ) | | 77,974 |
| Provision (benefit) for taxes | | 3,485 |
| | (102 | ) | | 256 |
| | 11,037 |
| | — |
| | 14,676 |
| Net income | | $ | 63,298 |
| | $ | 45,596 |
| | $ | 23,570 |
| | $ | 56,507 |
| | $ | (125,673 | ) | | $ | 63,298 |
| Other comprehensive income (loss), (net of tax): | | | | | | | | | | | | | Foreign currency translation adjustment | | (4,632 | ) | | — |
| | (4,632 | ) | | — |
| | 4,632 |
| | (4,632 | ) | Other comprehensive income (loss), (net of tax) | | (4,632 | ) | | — |
| | (4,632 | ) | | — |
| | 4,632 |
| | (4,632 | ) | Total comprehensive income | | $ | 58,666 |
| | $ | 45,596 |
| | $ | 18,938 |
| | $ | 56,507 |
| | $ | (121,041 | ) | | $ | 58,666 |
|
CEDAR FAIR, L.P.
UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
For the Three Months Ended June 24, 2018
(In thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | | | | | | | | | | | | | | Net revenues | | $ | 23,937 |
| | $ | 91,527 |
| | $ | 29,648 |
| | $ | 360,832 |
| | $ | (125,628 | ) | | $ | 380,316 |
| Costs and expenses: | | | | | | | | | | | | | Cost of food, merchandise, and games revenues | | — |
| | — |
| | 3,184 |
| | 31,834 |
| | — |
| | 35,018 |
| Operating expenses | | — |
| | 93,036 |
| | 14,254 |
| | 185,755 |
| | (125,628 | ) | | 167,417 |
| Selling, general and administrative | | 926 |
| | 15,638 |
| | 3,556 |
| | 33,921 |
| | — |
| | 54,041 |
| Depreciation and amortization | | — |
| | 8 |
| | 5,940 |
| | 46,271 |
| | — |
| | 52,219 |
| Loss on impairment / retirement of fixed assets, net | | — |
| | — |
| | 27 |
| | 3,345 |
| | — |
| | 3,372 |
| | | 926 |
| | 108,682 |
| | 26,961 |
| | 301,126 |
| | (125,628 | ) | | 312,067 |
| Operating income (loss) | | 23,011 |
| | (17,155 | ) | | 2,687 |
| | 59,706 |
| | — |
| | 68,249 |
| Interest expense, net | | 5,736 |
| | 4,592 |
| | 6,068 |
| | 4,886 |
| | — |
| | 21,282 |
| Net effect of swaps | | (324 | ) | | (582 | ) | | — |
| | — |
| | — |
| | (906 | ) | Loss on foreign currency | | — |
| | 62 |
| | 14,922 |
| | — |
| | — |
| | 14,984 |
| Other (income) expense | | 64 |
| | (22,751 | ) | | 932 |
| | 21,671 |
| | — |
| | (84 | ) | (Income) loss from investment in affiliates | | (4,198 | ) | | (2,531 | ) | | (8,982 | ) | | 13,602 |
| | 2,109 |
| | — |
| Income (loss) before taxes | | 21,733 |
| | 4,055 |
| | (10,253 | ) | | 19,547 |
| | (2,109 | ) | | 32,973 |
| Provision (benefit) for taxes | | 2,490 |
| | (143 | ) | | 3,346 |
| | 8,037 |
| | — |
| | 13,730 |
| Net income (loss) | | $ | 19,243 |
| | $ | 4,198 |
| | $ | (13,599 | ) | | $ | 11,510 |
| | $ | (2,109 | ) | | $ | 19,243 |
| Other comprehensive income (loss), (net of tax): | | | | | | | | | | | | | Foreign currency translation adjustment | | 6,662 |
| | — |
| | 6,662 |
| | — |
| | (6,662 | ) | | 6,662 |
| Cash flow hedging derivative activity | | 2,116 |
| | 727 |
| | — |
| | — |
| | (727 | ) | | 2,116 |
| Other comprehensive income (loss), (net of tax) | | 8,778 |
| | 727 |
| | 6,662 |
| | — |
| | (7,389 | ) | | 8,778 |
| Total comprehensive income (loss) | | $ | 28,021 |
| | $ | 4,925 |
| | $ | (6,937 | ) | | $ | 11,510 |
| | $ | (9,498 | ) | | $ | 28,021 |
|
CEDAR FAIR, L.P.
UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
For the Six Months Ended June 30, 2019
(In thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | | | | | | | | | | | | | | Net revenues | | $ | 14,598 |
| | $ | 111,096 |
| | $ | 38,670 |
| | $ | 470,685 |
| | $ | (131,882 | ) | | $ | 503,167 |
| Costs and expenses: | | | | | | | | | | | | | Cost of food, merchandise, and games revenues | | — |
| | 51 |
| | 3,926 |
| | 43,480 |
| | — |
| | 47,457 |
| Operating expenses | | 2 |
| | 150,345 |
| | 20,745 |
| | 236,766 |
| | (131,882 | ) | | 275,976 |
| Selling, general and administrative | | 1,625 |
| | 30,552 |
| | 4,865 |
| | 54,405 |
| | — |
| | 91,447 |
| Depreciation and amortization | | — |
| | 16 |
| | 5,682 |
| | 63,795 |
| | — |
| | 69,493 |
| Loss on impairment / retirement of fixed assets, net | | — |
| | — |
| | 35 |
| | 2,071 |
| | — |
| | 2,106 |
| Gain on sale of investment | | — |
| | (617 | ) | | — |
| | — |
| | — |
| | (617 | ) | | | 1,627 |
| | 180,347 |
| | 35,253 |
| | 400,517 |
| | (131,882 | ) | | 485,862 |
| Operating income (loss) | | 12,971 |
| | (69,251 | ) | | 3,417 |
| | 70,168 |
| | — |
| | 17,305 |
| Interest expense, net | | 13,064 |
| | 10,026 |
| | 11,758 |
| | 8,685 |
| | — |
| | 43,533 |
| Net effect of swaps | | 3,117 |
| | 14,041 |
| | — |
| | — |
| | — |
| | 17,158 |
| (Gain) loss on foreign currency | | — |
| | 1 |
| | (18,142 | ) | | — |
| | — |
| | (18,141 | ) | Other (income) expense | | 123 |
| | (35,971 | ) | | 2,025 |
| | 34,262 |
| | — |
| | 439 |
| (Income) loss from investment in affiliates | | 12,855 |
| | (30,452 | ) | | (6,798 | ) | | (17,377 | ) | | 41,772 |
| | — |
| Income (loss) before taxes | | (16,188 | ) | | (26,896 | ) | | 14,574 |
| | 44,598 |
| | (41,772 | ) | | (25,684 | ) | Provision (benefit) for taxes | | 4,187 |
| | (14,041 | ) | | (2,803 | ) | | 7,348 |
| | — |
| | (5,309 | ) | Net income (loss) | | $ | (20,375 | ) | | $ | (12,855 | ) | | $ | 17,377 |
| | $ | 37,250 |
| | $ | (41,772 | ) | | $ | (20,375 | ) | Other comprehensive income (loss), (net of tax): | | | | | | | | | | | | | Foreign currency translation adjustment | | (7,682 | ) | | — |
| | (7,682 | ) | | — |
| | 7,682 |
| | (7,682 | ) | Other comprehensive income (loss), (net of tax) | | (7,682 | ) | | — |
| | (7,682 | ) | | — |
| | 7,682 |
| | (7,682 | ) | Total comprehensive income (loss) | | $ | (28,057 | ) | | $ | (12,855 | ) | | $ | 9,695 |
| | $ | 37,250 |
| | $ | (34,090 | ) | | $ | (28,057 | ) |
CEDAR FAIR, L.P.
UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
For the Six Months Ended June 24, 2018
(In thousands)
| | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | Net revenues | | $ | 13,170 |
| | $ | 92,381 |
| | $ | 29,919 |
| | $ | 410,619 |
| | $ | (111,046 | ) | | $ | 435,043 |
| | $ | (15,642 | ) | | $ | 3,285 |
| | $ | 296 |
| | $ | 59,905 |
| | $ | 19,133 |
| | $ | 66,977 |
| Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | Cost of food, merchandise, and games revenues | | — |
| | — |
| | 3,184 |
| | 37,837 |
| | — |
| | 41,021 |
| | — |
| | — |
| | 52 |
| | 7,597 |
| | — |
| | 7,649 |
| Operating expenses | | — |
| | 135,707 |
| | 19,970 |
| | 211,614 |
| | (111,046 | ) | | 256,245 |
| | — |
| | 48,172 |
| | 5,711 |
| | 25,189 |
| | 19,133 |
| | 98,205 |
| Selling, general and administrative | | 1,685 |
| | 30,088 |
| | 4,236 |
| | 46,714 |
| | — |
| | 82,723 |
| | 1,439 |
| | 14,552 |
| | 1,018 |
| | 14,657 |
| | — |
| | 31,666 |
| Depreciation and amortization | | — |
| | 16 |
| | 5,940 |
| | 51,784 |
| | — |
| | 57,740 |
| | — |
| | 8 |
| | — |
| | 13,581 |
| | — |
| | 13,589 |
| Loss on impairment / retirement of fixed assets, net | | — |
| | — |
| | 67 |
| | 4,645 |
| | — |
| | 4,712 |
| | — |
| | — |
| | 10 |
| | 1,414 |
| | — |
| | 1,424 |
| Gain on sale of investment | | | — |
| | (617 | ) | | — |
| | — |
| | — |
| | (617 | ) | | | 1,685 |
| | 165,811 |
| | 33,397 |
| | 352,594 |
| | (111,046 | ) | | 442,441 |
| | 1,439 |
| | 62,115 |
| | 6,791 |
| | 62,438 |
| | 19,133 |
| | 151,916 |
| Operating income (loss) | | 11,485 |
| | (73,430 | ) | | (3,478 | ) | | 58,025 |
| | — |
| | (7,398 | ) | | Operating loss | | | (17,081 | ) | | (58,830 | ) | | (6,495 | ) | | (2,533 | ) | | — |
| | (84,939 | ) | Interest expense, net | | 10,640 |
| | 8,959 |
| | 11,651 |
| | 9,568 |
| | — |
| | 40,818 |
| | 6,391 |
| | 5,030 |
| | 5,713 |
| | 3,553 |
| | — |
| | 20,687 |
| Net effect of swaps | | (2,531 | ) | | (2,003 | ) | | — |
| | — |
| | — |
| | (4,534 | ) | | 991 |
| | 5,388 |
| | — |
| | — |
| | — |
| | 6,379 |
| Loss on early debt extinguishment | | — |
| | 187 |
| | — |
| | 886 |
| | — |
| | 1,073 |
| | Loss on foreign currency | | — |
| | 21 |
| | 25,057 |
| | — |
| | — |
| | 25,078 |
| | Other (income) expense | | 123 |
| | (32,555 | ) | | 1,786 |
| | 30,439 |
| | — |
| | (207 | ) | | (Income) loss from investment in affiliates | | 64,330 |
| | 26,284 |
| | (5,069 | ) | | 34,187 |
| | (119,732 | ) | | — |
| | Gain on foreign currency | | | — |
| | (11 | ) | | (8,658 | ) | | — |
| | — |
| | (8,669 | ) | Other expense (income) | | | 59 |
| | (11,506 | ) | | 1,099 |
| | 10,670 |
| | — |
| | 322 |
| Loss from investment in affiliates | | | 58,449 |
| | 14,659 |
| | 4,603 |
| | 6,190 |
| | (83,901 | ) | | — |
| Loss before taxes | | (61,077 | ) | | (74,323 | ) | | (36,903 | ) | | (17,055 | ) | | 119,732 |
| | (69,626 | ) | | (82,971 | ) | | (72,390 | ) | | (9,252 | ) | | (22,946 | ) | | 83,901 |
| | (103,658 | ) | Provision (benefit) for taxes | | 3,080 |
| | (9,994 | ) | | (2,716 | ) | | 4,161 |
| | — |
| | (5,469 | ) | | 702 |
| | (13,939 | ) | | (3,059 | ) | | (3,689 | ) | | — |
| | (19,985 | ) | Net loss | | $ | (64,157 | ) | | $ | (64,329 | ) | | $ | (34,187 | ) | | $ | (21,216 | ) | | $ | 119,732 |
| | $ | (64,157 | ) | | $ | (83,673 | ) | | $ | (58,451 | ) | | $ | (6,193 | ) | | $ | (19,257 | ) | | $ | 83,901 |
| | $ | (83,673 | ) | Other comprehensive income (loss), (net of tax): | | | | | | | | | | | | | | Other comprehensive loss, (net of tax): | | | | | | | | | | | | | | Foreign currency translation adjustment | | 11,266 |
| | — |
| | 11,266 |
| | — |
| | (11,266 | ) | | 11,266 |
| | (3,050 | ) | | — |
| | (3,050 | ) | | — |
| | 3,050 |
| | (3,050 | ) | Cash flow hedging derivative activity | | 4,134 |
| | 1,357 |
| | — |
| | — |
| | (1,357 | ) | | 4,134 |
| | Other comprehensive income (loss), (net of tax) | | 15,400 |
| | 1,357 |
| | 11,266 |
| | — |
| | (12,623 | ) | | 15,400 |
| | Other comprehensive loss, (net of tax) | | | (3,050 | ) | | — |
| | (3,050 | ) | | — |
| | 3,050 |
| | (3,050 | ) | Total comprehensive loss | | $ | (48,757 | ) | | $ | (62,972 | ) | | $ | (22,921 | ) | | $ | (21,216 | ) | | $ | 107,109 |
| | $ | (48,757 | ) | | $ | (86,723 | ) | | $ | (58,451 | ) | | $ | (9,243 | ) | | $ | (19,257 | ) | | $ | 86,951 |
| | $ | (86,723 | ) |
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the SixThree Months Ended June 30, 2019March 29, 2020 (In thousands) | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | NET CASH FROM (FOR) OPERATING ACTIVITIES | | $ | 53,711 |
| | $ | (28,342 | ) | | $ | 9,120 |
| | $ | 66,441 |
| | $ | (2,246 | ) | | $ | 98,684 |
| | $ | 33,452 |
| | $ | 9,386 |
| | $ | (19,350 | ) | | $ | (126,885 | ) | | $ | (1,742 | ) | | $ | (105,139 | ) | CASH FLOWS FROM (FOR) INVESTING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | | | | Intercompany receivables (payments) receipts | | — |
| | — |
| | — |
| | (47,144 | ) | | 47,144 |
| | — |
| | — |
| | — |
| | — |
| | 3,370 |
| | (3,370 | ) | | — |
| Proceeds from returns on investments | | — |
| | 38,030 |
| | — |
| | — |
| | (38,030 | ) | | — |
| | — |
| | 20,000 |
| | — |
| | — |
| | (20,000 | ) | | — |
| Proceeds from sale of investment | | — |
| | 617 |
| | — |
| | — |
| | — |
| | 617 |
| | Capital expenditures | | — |
| | — |
| | (12,817 | ) | | (250,036 | ) | | — |
| | (262,853 | ) | | — |
| | 70 |
| | (1,286 | ) | | (56,816 | ) | | — |
| | (58,032 | ) | Net cash from (for) investing activities | | — |
| | 38,647 |
| | (12,817 | ) | | (297,180 | ) | | 9,114 |
| | (262,236 | ) | | — |
| | 20,070 |
| | (1,286 | ) | | (53,446 | ) | | (23,370 | ) | | (58,032 | ) | CASH FLOWS FROM (FOR) FINANCING ACTIVITIES | | | | | | | | | | | | | | CASH FLOWS (FOR) FROM FINANCING ACTIVITIES | | | | | | | | | | | | | | Intercompany payables (payments) receipts | | 51,418 |
| | (4,274 | ) | | — |
| | — |
| | (47,144 | ) | | — |
| | 19,727 |
| | (23,097 | ) | | — |
| | — |
| | 3,370 |
| | — |
| Payments for returns of capital | | — |
| | — |
| | (38,030 | ) | | — |
| | 38,030 |
| | — |
| | — |
| | — |
| | (20,000 | ) | | — |
| | 20,000 |
| | — |
| Note borrowings | | — |
| | — |
| | — |
| | 500,000 |
| | — |
| | 500,000 |
| | Term debt payments | | — |
| | (328 | ) | | — |
| | (1,547 | ) | | — |
| | (1,875 | ) | | Net borrowings on revolving credit loans | | | — |
| | — |
| | — |
| | 70,000 |
| | — |
| | 70,000 |
| Distributions paid to partners | | (105,129 | ) | | — |
| | — |
| | — |
| | 443 |
| | (104,686 | ) | | (53,179 | ) | | — |
| | — |
| | — |
| | 157 |
| | (53,022 | ) | Payment of debt issuance costs and original issue discount | | — |
| | — |
| | — |
| | (7,712 | ) | | — |
| | (7,712 | ) | | Tax effect of units involved in treasury unit transactions | | — |
| | (1,561 | ) | | — |
| | — |
| | — |
| | (1,561 | ) | | — |
| | (1,741 | ) | | — |
| | — |
| | — |
| | (1,741 | ) | Payments related to tax withholding for equity compensation | | — |
| | (4,142 | ) | | — |
| | — |
| | — |
| | (4,142 | ) | | — |
| | (4,618 | ) | | — |
| | — |
| | — |
| | (4,618 | ) | Net cash from (for) financing activities | | (53,711 | ) | | (10,305 | ) | | (38,030 | ) | | 490,741 |
| | (8,671 | ) | | 380,024 |
| | Net cash (for) from financing activities | | | (33,452 | ) | | (29,456 | ) | | (20,000 | ) | | 70,000 |
| | 23,527 |
| | 10,619 |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | | — |
| | — |
| | 2,921 |
| | — |
| | — |
| | 2,921 |
| | — |
| | — |
| | (3,405 | ) | | — |
| | — |
| | (3,405 | ) | CASH AND CASH EQUIVALENTS | | | | | | | | | | | | | | | | | | | | | | | | | Net increase (decrease) for the period | | — |
| | — |
| | (38,806 | ) | | 260,002 |
| | (1,803 | ) | | 219,393 |
| | Net decrease for the period | | | — |
| | — |
| | (44,041 | ) | | (110,331 | ) | | (1,585 | ) | | (155,957 | ) | Balance, beginning of period | | — |
| | — |
| | 73,326 |
| | 32,715 |
| | (692 | ) | | 105,349 |
| | — |
| | — |
| | 66,357 |
| | 116,428 |
| | (533 | ) | | 182,252 |
| Balance, end of period | | $ | — |
| | $ | — |
| | $ | 34,520 |
| | $ | 292,717 |
| | $ | (2,495 | ) | | $ | 324,742 |
| | $ | — |
| | $ | — |
| | $ | 22,316 |
| | $ | 6,097 |
| | $ | (2,118 | ) | | $ | 26,295 |
|
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the SixThree Months Ended June 24, 2018March 31, 2019 (In thousands) | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Guarantor Subsidiaries | | Eliminations | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | NET CASH FROM (FOR) OPERATING ACTIVITIES | | $ | 56,049 |
| | $ | 48,573 |
| | $ | 2,897 |
| | $ | (21,498 | ) | | $ | (256 | ) | | $ | 85,765 |
| | $ | 24,410 |
| | $ | (6,580 | ) | | $ | (6,077 | ) | | $ | (68,489 | ) | | $ | (6 | ) | | $ | (56,742 | ) | CASH FLOWS FOR INVESTING ACTIVITIES | | | | | | | | | | | | | | CASH FLOWS FROM (FOR) INVESTING ACTIVITIES | | | | | | | | | | | | | | Intercompany receivables (payments) receipts | | — |
| | — |
| | (37,892 | ) | | 31,123 |
| | 6,769 |
| | — |
| | — |
| | — |
| | — |
| | (1,585 | ) | | 1,585 |
| | — |
| Proceeds from returns on investments | | | — |
| | 38,030 |
| | — |
| | — |
| | (38,030 | ) | | — |
| Capital expenditures | | — |
| | — |
| | (8,495 | ) | | (92,142 | ) | | — |
| | (100,637 | ) | | — |
| | — |
| | (7,193 | ) | | (46,204 | ) | | — |
| | (53,397 | ) | Net cash for investing activities | | — |
| | — |
| | (46,387 | ) | | (61,019 | ) | | 6,769 |
| | (100,637 | ) | | CASH FLOWS FROM (FOR) FINANCING ACTIVITIES | | | | | | | | | | | | | | Proceeds from sale of investment | | | — |
| | 617 |
| | — |
| | — |
| | — |
| | 617 |
| Net cash from (for) investing activities | | | — |
| | 38,647 |
| | (7,193 | ) | | (47,789 | ) | | (36,445 | ) | | (52,780 | ) | CASH FLOWS (FOR) FROM FINANCING ACTIVITIES | | | | | | | | | | | | | | Intercompany payables (payments) receipts | | 45,171 |
| | (38,402 | ) | | — |
| | — |
| | (6,769 | ) | | — |
| | 28,152 |
| | (26,567 | ) | | — |
| | — |
| | (1,585 | ) | | — |
| Payments for returns of capital | | | — |
| | — |
| | (38,030 | ) | | — |
| | 38,030 |
| | — |
| Net borrowings on revolving credit loans | | — |
| | — |
| | — |
| | 25,000 |
| | — |
| | 25,000 |
| | — |
| | — |
| | — |
| | 120,000 |
| | — |
| | 120,000 |
| Distributions paid to partners | | (101,220 | ) | | — |
| | — |
| | — |
| | 662 |
| | (100,558 | ) | | (52,562 | ) | | — |
| | — |
| | — |
| | 228 |
| | (52,334 | ) | Payment of debt issuance costs and original issue discount | | — |
| | (321 | ) | | — |
| | (2,191 | ) | | — |
| | (2,512 | ) | | Exercise of limited partnership unit options | | — |
| | 125 |
| | — |
| | — |
| | — |
| | 125 |
| | Tax effect of units involved in treasury unit transactions | | — |
| | (3,045 | ) | | — |
| | — |
| | — |
| | (3,045 | ) | | — |
| | (1,421 | ) | | — |
| | — |
| | — |
| | (1,421 | ) | Payments related to tax withholding for equity compensation | | — |
| | (6,930 | ) | | — |
| | — |
| | — |
| | (6,930 | ) | | — |
| | (4,079 | ) | | — |
| | — |
| | — |
| | (4,079 | ) | Net cash from (for) financing activities | | (56,049 | ) | | (48,573 | ) | | — |
| | 22,809 |
| | (6,107 | ) | | (87,920 | ) | | Net cash (for) from financing activities | | | (24,410 | ) | | (32,067 | ) | | (38,030 | ) | | 120,000 |
| | 36,673 |
| | 62,166 |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | | — |
| | — |
| | (3,334 | ) | | — |
| | — |
| | (3,334 | ) | | — |
| | — |
| | 2,279 |
| | — |
| | — |
| | 2,279 |
| CASH AND CASH EQUIVALENTS | | | | | | | | | | | | | | | | | | | | | | | | | Net decrease for the period | | — |
| | — |
| | (46,824 | ) | | (59,708 | ) | | 406 |
| | (106,126 | ) | | Net (decrease) increase for the period | | | — |
| | — |
| | (49,021 | ) | | 3,722 |
| | 222 |
| | (45,077 | ) | Balance, beginning of period | | — |
| | — |
| | 85,758 |
| | 81,582 |
| | (1,095 | ) | | 166,245 |
| | — |
| | — |
| | 73,326 |
| | 32,715 |
| | (692 | ) | | 105,349 |
| Balance, end of period | | $ | — |
| | $ | — |
| | $ | 38,934 |
| | $ | 21,874 |
| | $ | (689 | ) | | $ | 60,119 |
| | $ | — |
| | $ | — |
| | $ | 24,305 |
| | $ | 36,437 |
| | $ | (470 | ) | | $ | 60,272 |
|
(14) Consolidating Financial Information of Guarantors and Issuers of 2027 and 2029 Senior Notes: Cedar Fair, L.P., Canada's Wonderland Company ("Cedar Canada"), Magnum Management Corporation ("Magnum"), and Millennium Operations LLC ("Millennium") are the co-issuers of the Partnership's 2027 and 2029 senior notes (see Note 67). The notes have been fully and unconditionally guaranteed, on a joint and several basis, by each 100% owned subsidiary of Cedar Fair (other than Cedar Canada, Magnum and Millennium) that guarantees the Partnership's senior secured credit facilities. There are no non-guarantor subsidiaries.
The following consolidating schedules present condensed financial information for Cedar Fair, L.P., Cedar Canada, Magnum, and Millennium, the co-issuers, and each 100% owned subsidiary of Cedar Fair (other than Cedar Canada, Magnum and Millennium), the guarantors (on a combined basis), as of June 30, 2019,March 29, 2020, December 31, 2018,2019, and June 24, 2018March 31, 2019 and for the three- and six-monththree month periods ended June 30, 2019March 29, 2020 and June 24, 2018.March 31, 2019. In lieu of providing separate unaudited financial statements for the guarantor subsidiaries, the accompanying unaudited condensed consolidating financial statements have been included.
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET June 30, 2019March 29, 2020
(In thousands) | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | — |
| | $ | — |
| | $ | 34,520 |
| | $ | 287,935 |
| | $ | 4,782 |
| | $ | (2,495 | ) | | $ | 324,742 |
| | $ | — |
| | $ | — |
| | $ | 22,316 |
| | $ | 5,962 |
| | $ | 135 |
| | $ | (2,118 | ) | | $ | 26,295 |
| Receivables | | — |
| | 1,214 |
| | 37,121 |
| | 60,487 |
| | 957,762 |
| | (967,038 | ) | | 89,546 |
| | — |
| | 1,383 |
| | 40,143 |
| | 20,670 |
| | 1,018,254 |
| | (1,054,798 | ) | | 25,652 |
| Inventories | | — |
| | — |
| | 3,804 |
| | 35,627 |
| | 7,429 |
| | — |
| | 46,860 |
| | — |
| | — |
| | 498 |
| | 6,235 |
| | 661 |
| | — |
| | 7,394 |
| Other current assets | | 400 |
| | 14,347 |
| | 9,710 |
| | 29,374 |
| | 5,079 |
| | (20,476 | ) | | 38,434 |
| | 74 |
| | 18,577 |
| | 5,279 |
| | 25,958 |
| | 5,030 |
| | (21,300 | ) | | 33,618 |
| | | 400 |
| | 15,561 |
| | 85,155 |
| | 413,423 |
| | 975,052 |
| | (990,009 | ) | | 499,582 |
| | 74 |
| | 19,960 |
| | 68,236 |
| | 58,825 |
| | 1,024,080 |
| | (1,078,216 | ) | | 92,959 |
| Property and Equipment, net | | — |
| | 785 |
| | 186,578 |
| | — |
| | 1,612,103 |
| | — |
| | 1,799,466 |
| | — |
| | 690 |
| | 169,548 |
| | — |
| | 1,705,875 |
| | — |
| | 1,876,113 |
| Investment in Park | | 524,449 |
| | 1,160,193 |
| | 269,259 |
| | 1,747,364 |
| | 203,690 |
| | (3,904,955 | ) | | — |
| | 397,743 |
| | 1,159,177 |
| | 289,440 |
| | 2,177,030 |
| | 174,148 |
| | (4,197,538 | ) | | — |
| Goodwill | | 674 |
| | — |
| | 60,919 |
| | 8,388 |
| | 111,218 |
| | — |
| | 181,199 |
| | 674 |
| | — |
| | 56,718 |
| | 106,050 |
| | 111,217 |
| | — |
| | 274,659 |
| Other Intangibles, net | | — |
| | — |
| | 13,582 |
| | — |
| | 23,114 |
| | — |
| | 36,696 |
| | — |
| | — |
| | 12,643 |
| | — |
| | 39,015 |
| | — |
| | 51,658 |
| Deferred Tax Asset | | — |
| | 12,733 |
| | — |
| | — |
| | — |
| | (12,733 | ) | | — |
| | — |
| | 43,179 |
| | — |
| | — |
| | — |
| | (43,179 | ) | | — |
| Right-of-Use Asset | | — |
| | — |
| | 92 |
| | 3,771 |
| | 491 |
| | — |
| | 4,354 |
| | — |
| | — |
| | 128 |
| | 12,988 |
| | 572 |
| | — |
| | 13,688 |
| Other Assets | | — |
| | — |
| | 38 |
| | 2,483 |
| | 8,988 |
| | — |
| | 11,509 |
| | — |
| | — |
| | 4,411 |
| | 54,864 |
| | 21,131 |
| | — |
| | 80,406 |
| | | $ | 525,523 |
| | $ | 1,189,272 |
| | $ | 615,623 |
| | $ | 2,175,429 |
| | $ | 2,934,656 |
| | $ | (4,907,697 | ) | | $ | 2,532,806 |
| | $ | 398,491 |
| | $ | 1,223,006 |
| | $ | 601,124 |
| | $ | 2,409,757 |
| | $ | 3,076,038 |
| | $ | (5,318,933 | ) | | $ | 2,389,483 |
| LIABILITIES AND PARTNERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current maturities of long-term debt | | $ | — |
| | $ | 1,313 |
| | $ | — |
| | $ | 6,187 |
| | $ | — |
| | $ | — |
| | $ | 7,500 |
| | $ | — |
| | $ | 1,313 |
| | $ | — |
| | $ | 6,187 |
| | $ | — |
| | $ | — |
| | $ | 7,500 |
| Accounts payable | | 616,886 |
| | 356,792 |
| | 4,867 |
| | 32,468 |
| | 7,804 |
| | (969,533 | ) | | 49,284 |
| | 664,545 |
| | 393,124 |
| | 1,660 |
| | 30,086 |
| | 6,501 |
| | (1,056,916 | ) | | 39,000 |
| Deferred revenue | | — |
| | — |
| | 25,057 |
| | 147,756 |
| | 44,429 |
| | — |
| | 217,242 |
| | — |
| | — |
| | 3,430 |
| | 25,015 |
| | 1,936 |
| | — |
| | 30,381 |
| Accrued interest | | 6 |
| | 4 |
| | 1,955 |
| | 6,211 |
| | — |
| | — |
| | 8,176 |
| | 268 |
| | 179 |
| | 7,966 |
| | 20,204 |
| | — |
| | — |
| | 28,617 |
| Accrued taxes | | 2,176 |
| | — |
| | — |
| | 8,873 |
| | 25,703 |
| | (20,476 | ) | | 16,276 |
| | 1,071 |
| | — |
| | — |
| | 7,888 |
| | 18,997 |
| | (21,300 | ) | | 6,656 |
| Accrued salaries, wages and benefits | | — |
| | 19,642 |
| | 2,064 |
| | — |
| | — |
| | — |
| | 21,706 |
| | — |
| | 15,682 |
| | 1,184 |
| | — |
| | — |
| | — |
| | 16,866 |
| Self-insurance reserves | | — |
| | 9,541 |
| | 1,459 |
| | 8,703 |
| | 1,724 |
| | — |
| | 21,427 |
| | — |
| | 10,345 |
| | 1,476 |
| | 11,618 |
| | 1,688 |
| | — |
| | 25,127 |
| Other accrued liabilities | | 2,629 |
| | 5,959 |
| | 650 |
| | 6,871 |
| | 2,028 |
| | — |
| | 18,137 |
| | 6,821 |
| | 9,404 |
| | 136 |
| | 5,696 |
| | 1,635 |
| | — |
| | 23,692 |
| | | 621,697 |
| | 393,251 |
| | 36,052 |
| | 217,069 |
| | 81,688 |
| | (990,009 | ) | | 359,748 |
| | 672,705 |
| | 430,047 |
| | 15,852 |
| | 106,694 |
| | 30,757 |
| | (1,078,216 | ) | | 177,839 |
| Deferred Tax Liability | | — |
| | — |
| | 14,071 |
| | — |
| | 87,516 |
| | (12,733 | ) | | 88,854 |
| | — |
| | — |
| | 13,711 |
| | — |
| | 88,489 |
| | (43,179 | ) | | 59,021 |
| Derivative Liability | | 4,026 |
| | 19,836 |
| | — |
| | — |
| | — |
| | — |
| | 23,862 |
| | — |
| | 34,298 |
| | — |
| | — |
| | — |
| | — |
| | 34,298 |
| Lease Liability | | — |
| | — |
| | 73 |
| | 1,992 |
| | 300 |
| | — |
| | 2,365 |
| | — |
| | — |
| | 100 |
| | 9,802 |
| | 408 |
| | — |
| | 10,310 |
| Other Liabilities | | — |
| | 657 |
| | — |
| | 87 |
| | 9,558 |
| | — |
| | 10,302 |
| | — |
| | 546 |
| | 7,447 |
| | 117,309 |
| | 39,641 |
| | — |
| | 164,943 |
| Long-Term Debt: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving credit loans | | | — |
| | — |
| | — |
| | 70,000 |
| | — |
| | — |
| | 70,000 |
| Term debt | | — |
| | 125,975 |
| | — |
| | 590,853 |
| | — |
| | — |
| | 716,828 |
| | — |
| | 125,478 |
| | — |
| | 589,207 |
| | — |
| | — |
| | 714,685 |
| Notes | | — |
| | — |
| | 446,443 |
| | 984,604 |
| | — |
| | — |
| | 1,431,047 |
| | — |
| | — |
| | 447,194 |
| | 985,407 |
| | — |
| | — |
| | 1,432,601 |
| | | — |
| | 125,975 |
| | 446,443 |
| | 1,575,457 |
| | — |
| | — |
| | 2,147,875 |
| | — |
| | 125,478 |
| | 447,194 |
| | 1,644,614 |
| | — |
| | — |
| | 2,217,286 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Equity | | (100,200 | ) | | 649,553 |
| | 118,984 |
| | 380,824 |
| | 2,755,594 |
| | (3,904,955 | ) | | (100,200 | ) | | Partners' (Deficit) Equity | | | (274,214 | ) | | 632,637 |
| | 116,820 |
| | 531,338 |
| | 2,916,743 |
| | (4,197,538 | ) | | (274,214 | ) | | | $ | 525,523 |
| | $ | 1,189,272 |
| | $ | 615,623 |
| | $ | 2,175,429 |
| | $ | 2,934,656 |
| | $ | (4,907,697 | ) | | $ | 2,532,806 |
| | $ | 398,491 |
| | $ | 1,223,006 |
| | $ | 601,124 |
| | $ | 2,409,757 |
| | $ | 3,076,038 |
| | $ | (5,318,933 | ) | | $ | 2,389,483 |
|
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET December 31, 20182019 (In thousands) | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | — |
| | $ | — |
| | $ | 73,326 |
| | $ | 30,663 |
| | $ | 2,052 |
| | $ | (692 | ) | | $ | 105,349 |
| | $ | — |
| | $ | — |
| | $ | 66,357 |
| | $ | 115,437 |
| | $ | 991 |
| | $ | (533 | ) | | $ | 182,252 |
| Receivables | | — |
| | 1,093 |
| | 34,497 |
| | 36,242 |
| | 902,155 |
| | (922,469 | ) | | 51,518 |
| | — |
| | 1,299 |
| | 35,309 |
| | 45,349 |
| | 1,032,339 |
| | (1,051,190 | ) | | 63,106 |
| Inventories | | — |
| | — |
| | 2,135 |
| | 23,402 |
| | 5,216 |
| | — |
| | 30,753 |
| | — |
| | — |
| | 2,786 |
| | 25,413 |
| | 4,703 |
| | — |
| | 32,902 |
| Other current assets | | 179 |
| | 1,411 |
| | 5,462 |
| | 8,980 |
| | 1,564 |
| | (5,007 | ) | | 12,589 |
| | 182 |
| | 1,269 |
| | 541 |
| | 12,617 |
| | 1,312 |
| | — |
| | 15,921 |
| | | 179 |
| | 2,504 |
| | 115,420 |
| | 99,287 |
| | 910,987 |
| | (928,168 | ) | | 200,209 |
| | 182 |
| | 2,568 |
| | 104,993 |
| | 198,816 |
| | 1,039,345 |
| | (1,051,723 | ) | | 294,181 |
| Property and Equipment, net | | — |
| | 802 |
| | 172,344 |
| | — |
| | 1,426,292 |
| | — |
| | 1,599,438 |
| | — |
| | 769 |
| | 183,468 |
| | — |
| | 1,657,371 |
| | — |
| | 1,841,608 |
| Investment in Park | | 601,706 |
| | 1,182,345 |
| | 262,462 |
| | 1,517,897 |
| | 218,574 |
| | (3,782,984 | ) | | — |
| | 641,068 |
| | 1,356,149 |
| | 292,744 |
| | 2,141,806 |
| | 246,629 |
| | (4,678,396 | ) | | — |
| Goodwill | | 674 |
| | — |
| | 58,440 |
| | 8,388 |
| | 111,217 |
| | — |
| | 178,719 |
| | 674 |
| | — |
| | 61,382 |
| | 186,381 |
| | 111,217 |
| | — |
| | 359,654 |
| Other Intangibles, net | | — |
| | — |
| | 13,030 |
| | — |
| | 23,346 |
| | — |
| | 36,376 |
| | — |
| | — |
| | 13,682 |
| | — |
| | 46,217 |
| | — |
| | 59,899 |
| Deferred Tax Asset | | — |
| | 18,224 |
| | — |
| | — |
| | — |
| | (18,224 | ) | | — |
| | — |
| | 24,308 |
| | — |
| | — |
| | — |
| | (24,308 | ) | | — |
| Right-of-Use Asset | | | — |
| | — |
| | 157 |
| | 13,460 |
| | 707 |
| | — |
| | 14,324 |
| Other Assets | | — |
| | — |
| | 36 |
| | 417 |
| | 8,988 |
| | — |
| | 9,441 |
| | — |
| | — |
| | 38 |
| | 2,470 |
| | 8,971 |
| | — |
| | 11,479 |
| | | $ | 602,559 |
| | $ | 1,203,875 |
| | $ | 621,732 |
| | $ | 1,625,989 |
| | $ | 2,699,404 |
| | $ | (4,729,376 | ) | | $ | 2,024,183 |
| | $ | 641,924 |
| | $ | 1,383,794 |
| | $ | 656,464 |
| | $ | 2,542,933 |
| | $ | 3,110,457 |
| | $ | (5,754,427 | ) | | $ | 2,581,145 |
| LIABILITIES AND PARTNERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current maturities of long-term debt | | $ | — |
| | $ | 984 |
| | $ | — |
| | $ | 4,641 |
| | $ | — |
| | $ | — |
| | $ | 5,625 |
| | $ | — |
| | $ | 1,313 |
| | $ | — |
| | $ | 6,187 |
| | $ | — |
| | $ | — |
| | $ | 7,500 |
| Accounts payable | | 565,472 |
| | 359,953 |
| | 2,430 |
| | 14,995 |
| | 3,625 |
| | (923,161 | ) | | 23,314 |
| | 644,839 |
| | 407,384 |
| | 2,799 |
| | 19,553 |
| | 6,492 |
| | (1,051,723 | ) | | 29,344 |
| Deferred revenue | | — |
| | — |
| | 8,460 |
| | 74,062 |
| | 24,552 |
| | — |
| | 107,074 |
| | — |
| | — |
| | 10,930 |
| | 112,544 |
| | 27,903 |
| | — |
| | 151,377 |
| Accrued interest | | 1 |
| | 1 |
| | 2,054 |
| | 5,871 |
| | — |
| | — |
| | 7,927 |
| | 7 |
| | 5 |
| | 2,054 |
| | 19,376 |
| | — |
| | — |
| | 21,442 |
| Accrued taxes | | 443 |
| | 6,668 |
| | — |
| | 8,087 |
| | 19,400 |
| | (5,007 | ) | | 29,591 |
| | 448 |
| | 1,656 |
| | 2,819 |
| | 8,791 |
| | 25,523 |
| | — |
| | 39,237 |
| Accrued salaries, wages and benefits | | — |
| | 17,552 |
| | 1,234 |
| | — |
| | — |
| | — |
| | 18,786 |
| | — |
| | 27,080 |
| | 2,469 |
| | — |
| | — |
| | — |
| | 29,549 |
| Self-insurance reserves | | — |
| | 10,214 |
| | 1,433 |
| | 10,308 |
| | 2,066 |
| | — |
| | 24,021 |
| | — |
| | 10,549 |
| | 1,624 |
| | 10,797 |
| | 1,695 |
| | — |
| | 24,665 |
| Other accrued liabilities | | 3,318 |
| | 4,903 |
| | 136 |
| | 5,471 |
| | 4,553 |
| | — |
| | 18,381 |
| | 6,596 |
| | 6,389 |
| | 279 |
| | 5,853 |
| | 1,907 |
| | — |
| | 21,024 |
| | | 569,234 |
| | 400,275 |
| | 15,747 |
| | 123,435 |
| | 54,196 |
| | (928,168 | ) | | 234,719 |
| | 651,890 |
| | 454,376 |
| | 22,974 |
| | 183,101 |
| | 63,520 |
| | (1,051,723 | ) | | 324,138 |
| Deferred Tax Liability | | — |
| | — |
| | 12,425 |
| | — |
| | 87,516 |
| | (18,224 | ) | | 81,717 |
| | — |
| | — |
| | 16,621 |
| | — |
| | 89,733 |
| | (24,308 | ) | | 82,046 |
| Derivative Liability | | 909 |
| | 5,796 |
| | — |
| | — |
| | — |
| | — |
| | 6,705 |
| | — |
| | 18,108 |
| | — |
| | — |
| | — |
| | — |
| | 18,108 |
| Lease Liability | | | — |
| | — |
| | 125 |
| | 10,018 |
| | 457 |
| | — |
| | 10,600 |
| Other Liabilities | | — |
| | 1,169 |
| | — |
| | 87 |
| | 9,802 |
| | — |
| | 11,058 |
| | — |
| | 935 |
| | — |
| | 87 |
| | 9,314 |
| | — |
| | 10,336 |
| Long-Term Debt: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term debt | | — |
| | 126,525 |
| | — |
| | 592,982 |
| | — |
| | — |
| | 719,507 |
| | — |
| | 125,425 |
| | — |
| | 588,725 |
| | — |
| | — |
| | 714,150 |
| Notes | | — |
| | — |
| | 446,241 |
| | 491,820 |
| | — |
| | — |
| | 938,061 |
| | — |
| | — |
| | 446,781 |
| | 984,952 |
| | — |
| | — |
| | 1,431,733 |
| | | — |
| | 126,525 |
| | 446,241 |
| | 1,084,802 |
| | — |
| | — |
| | 1,657,568 |
| | — |
| | 125,425 |
| | 446,781 |
| | 1,573,677 |
| | — |
| | — |
| | 2,145,883 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Equity | | 32,416 |
| | 670,110 |
| | 147,319 |
| | 417,665 |
| | 2,547,890 |
| | (3,782,984 | ) | | 32,416 |
| | Partners' (Deficit) Equity | | | (9,966 | ) | | 784,950 |
| | 169,963 |
| | 776,050 |
| | 2,947,433 |
| | (4,678,396 | ) | | (9,966 | ) | | | $ | 602,559 |
| | $ | 1,203,875 |
| | $ | 621,732 |
| | $ | 1,625,989 |
| | $ | 2,699,404 |
| | $ | (4,729,376 | ) | | $ | 2,024,183 |
| | $ | 641,924 |
| | $ | 1,383,794 |
| | $ | 656,464 |
| | $ | 2,542,933 |
| | $ | 3,110,457 |
| | $ | (5,754,427 | ) | | $ | 2,581,145 |
|
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET June 24, 2018March 31, 2019
(In thousands) | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | — |
| | $ | — |
| | $ | 38,934 |
| | $ | 19,014 |
| | $ | 2,860 |
| | $ | (689 | ) | | $ | 60,119 |
| | $ | — |
| | $ | — |
| | $ | 24,305 |
| | $ | 36,256 |
| | $ | 181 |
| | $ | (470 | ) | | $ | 60,272 |
| Receivables | | — |
| | 1,198 |
| | 66,120 |
| | 55,433 |
| | 813,742 |
| | (851,114 | ) | | 85,379 |
| | — |
| | 1,765 |
| | 33,390 |
| | 32,871 |
| | 898,919 |
| | (922,614 | ) | | 44,331 |
| Inventories | | — |
| | — |
| | 3,821 |
| | 35,343 |
| | 7,836 |
| | — |
| | 47,000 |
| | — |
| | — |
| | 2,553 |
| | 32,774 |
| | 7,302 |
| | — |
| | 42,629 |
| Other current assets | | 398 |
| | 3,293 |
| | 2,429 |
| | 30,599 |
| | 5,877 |
| | (1,952 | ) | | 40,644 |
| | 73 |
| | 7,158 |
| | 10,382 |
| | 28,086 |
| | 6,483 |
| | (13,869 | ) | | 38,313 |
| | | 398 |
| | 4,491 |
| | 111,304 |
| | 140,389 |
| | 830,315 |
| | (853,755 | ) | | 233,142 |
| | 73 |
| | 8,923 |
| | 70,630 |
| | 129,987 |
| | 912,885 |
| | (936,953 | ) | | 185,545 |
| Property and Equipment, net | | — |
| | 819 |
| | 174,962 |
| | — |
| | 1,443,217 |
| | — |
| | 1,618,998 |
| | — |
| | 794 |
| | 182,520 |
| | — |
| | 1,463,440 |
| | — |
| | 1,646,754 |
| Investment in Park | | 476,659 |
| | 1,009,725 |
| | 243,201 |
| | 1,464,956 |
| | 186,539 |
| | (3,381,080 | ) | | — |
| | 489,463 |
| | 1,076,487 |
| | 257,859 |
| | 1,559,883 |
| | 188,484 |
| | (3,572,176 | ) | | — |
| Goodwill | | 674 |
| | — |
| | 59,907 |
| | 8,388 |
| | 111,217 |
| | — |
| | 180,186 |
| | 674 |
| | — |
| | 59,660 |
| | 8,388 |
| | 111,217 |
| | — |
| | 179,939 |
| Other Intangibles, net | | — |
| | — |
| | 13,362 |
| | — |
| | 23,629 |
| | — |
| | 36,991 |
| | — |
| | — |
| | 13,302 |
| | — |
| | 23,340 |
| | — |
| | 36,642 |
| Deferred Tax Asset | | | — |
| | 18,310 |
| | — |
| | — |
| | — |
| | (18,310 | ) | | — |
| Right-of-Use Asset | | | — |
| | — |
| | 31 |
| | 3,479 |
| | 69,084 |
| | — |
| | 72,594 |
| Other Assets | | 74 |
| | 467 |
| | 38 |
| | 251 |
| | 9,069 |
| | — |
| | 9,899 |
| | — |
| | — |
| | 37 |
| | 1,976 |
| | 8,983 |
| | — |
| | 10,996 |
| | | $ | 477,805 |
| | $ | 1,015,502 |
| | $ | 602,774 |
| | $ | 1,613,984 |
| | $ | 2,603,986 |
| | $ | (4,234,835 | ) | | $ | 2,079,216 |
| | $ | 490,210 |
| | $ | 1,104,514 |
| | $ | 584,039 |
| | $ | 1,703,713 |
| | $ | 2,777,433 |
| | $ | (4,527,439 | ) | | $ | 2,132,470 |
| LIABILITIES AND PARTNERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current maturities of long-term debt | | $ | — |
| | $ | 328 |
| | $ | — |
| | $ | 1,547 |
| | $ | — |
| | $ | — |
| | $ | 1,875 |
| | $ | — |
| | $ | 1,313 |
| | $ | — |
| | $ | 6,187 |
| | $ | — |
| | $ | — |
| | $ | 7,500 |
| Accounts payable | | 542,730 |
| | 313,605 |
| | 5,069 |
| | 33,393 |
| | 6,557 |
| | (851,803 | ) | | 49,551 |
| | 593,593 |
| | 331,881 |
| | 2,779 |
| | 33,811 |
| | 8,274 |
| | (923,084 | ) | | 47,254 |
| Deferred revenue | | — |
| | — |
| | 20,950 |
| | 141,272 |
| | 48,951 |
| | — |
| | 211,173 |
| | — |
| | 500 |
| | 11,009 |
| | 109,806 |
| | 30,021 |
| | — |
| | 151,336 |
| Accrued interest | | 137 |
| | 92 |
| | 1,571 |
| | 7,465 |
| | — |
| | — |
| | 9,265 |
| | 4 |
| | 2 |
| | 8,033 |
| | 12,847 |
| | — |
| | — |
| | 20,886 |
| Accrued taxes | | 1,453 |
| | — |
| | 3,668 |
| | 7,515 |
| | 2,056 |
| | (1,952 | ) | | 12,740 |
| | 1,111 |
| | — |
| | — |
| | 8,231 |
| | 14,410 |
| | (13,869 | ) | | 9,883 |
| Accrued salaries, wages and benefits | | — |
| | 23,837 |
| | 2,391 |
| | — |
| | — |
| | — |
| | 26,228 |
| | — |
| | 13,087 |
| | 909 |
| | — |
| | — |
| | — |
| | 13,996 |
| Self-insurance reserves | | — |
| | 10,355 |
| | 1,482 |
| | 11,348 |
| | 2,087 |
| | — |
| | 25,272 |
| | — |
| | 9,602 |
| | 1,441 |
| | 10,640 |
| | 1,896 |
| | — |
| | 23,579 |
| Other accrued liabilities | | 3,556 |
| | 7,014 |
| | 670 |
| | 8,991 |
| | 4,164 |
| | — |
| | 24,395 |
| | 3,201 |
| | 4,297 |
| | 148 |
| | 4,236 |
| | 7,863 |
| | — |
| | 19,745 |
| | | 547,876 |
| | 355,231 |
| | 35,801 |
| | 211,531 |
| | 63,815 |
| | (853,755 | ) | | 360,499 |
| | 597,909 |
| | 360,682 |
| | 24,319 |
| | 185,758 |
| | 62,464 |
| | (936,953 | ) | | 294,179 |
| Deferred Tax Liability | | — |
| | 22 |
| | 11,507 |
| | — |
| | 81,945 |
| | — |
| | 93,474 |
| | — |
| | — |
| | 13,312 |
| | — |
| | 87,516 |
| | (18,310 | ) | | 82,518 |
| Derivative Liability | | | 1,899 |
| | 11,184 |
| | — |
| | — |
| | — |
| | — |
| | 13,083 |
| Lease Liability | | | — |
| | — |
| | 20 |
| | 1,769 |
| | 63,610 |
| | — |
| | 65,399 |
| Other Liabilities | | — |
| | 839 |
| | — |
| | 87 |
| | 10,056 |
| | — |
| | 10,982 |
| | — |
| | 547 |
| | — |
| | 87 |
| | 9,680 |
| | — |
| | 10,314 |
| Long-Term Debt: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving credit loans | | — |
| | — |
| | — |
| | 25,000 |
| | — |
| | — |
| | 25,000 |
| | — |
| | — |
| | — |
| | 120,000 |
| | — |
| | — |
| | 120,000 |
| Term debt | | — |
| | 127,075 |
| | — |
| | 595,111 |
| | — |
| | — |
| | 722,186 |
| | — |
| | 126,250 |
| | — |
| | 591,918 |
| | — |
| | — |
| | 718,168 |
| Notes | | — |
| | — |
| | 445,790 |
| | 491,356 |
| | — |
| | — |
| | 937,146 |
| | — |
| | — |
| | 446,339 |
| | 492,068 |
| | — |
| | — |
| | 938,407 |
| | | — |
| | 127,075 |
| | 445,790 |
| | 1,111,467 |
| | — |
| | — |
| | 1,684,332 |
| | — |
| | 126,250 |
| | 446,339 |
| | 1,203,986 |
| | — |
| | — |
| | 1,776,575 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Equity | | (70,071 | ) | | 532,335 |
| | 109,676 |
| | 290,899 |
| | 2,448,170 |
| | (3,381,080 | ) | | (70,071 | ) | | Partners' (Deficit) Equity | | | (109,598 | ) | | 605,851 |
| | 100,049 |
| | 312,113 |
| | 2,554,163 |
| | (3,572,176 | ) | | (109,598 | ) | | | $ | 477,805 |
| | $ | 1,015,502 |
| | $ | 602,774 |
| | $ | 1,613,984 |
| | $ | 2,603,986 |
| | $ | (4,234,835 | ) | | $ | 2,079,216 |
| | $ | 490,210 |
| | $ | 1,104,514 |
| | $ | 584,039 |
| | $ | 1,703,713 |
| | $ | 2,777,433 |
| | $ | (4,527,439 | ) | | $ | 2,132,470 |
|
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2019March 29, 2020 (In thousands) | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net revenues | | $ | 30,240 |
| | $ | 107,811 |
| | $ | 38,374 |
| | $ | 316,198 |
| | $ | 132,511 |
| | $ | (188,944 | ) | | $ | 436,190 |
| | $ | (50,355 | ) | | $ | (49,885 | ) | | $ | 100 |
| | $ | 46,355 |
| | $ | (10,356 | ) | | $ | 117,776 |
| | $ | 53,635 |
| Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cost of food, merchandise and games revenues | | — |
| | 51 |
| | 3,874 |
| | 29,089 |
| | 6,794 |
| | — |
| | 39,808 |
| | — |
| | — |
| | 3 |
| | 6,259 |
| | 123 |
| | — |
| | 6,385 |
| Operating expenses | | 2 |
| | 102,173 |
| | 15,034 |
| | 238,566 |
| | 10,940 |
| | (188,944 | ) | | 177,771 |
| | 1 |
| | 53,895 |
| | 6,046 |
| | (74,016 | ) | | 2,666 |
| | 117,776 |
| | 106,368 |
| Selling, general and administrative | | 186 |
| | 16,000 |
| | 3,847 |
| | 32,499 |
| | 7,249 |
| | — |
| | 59,781 |
| | (362 | ) | | 8,851 |
| | 1,017 |
| | 14,664 |
| | 639 |
| | — |
| | 24,809 |
| Depreciation and amortization | | — |
| | 8 |
| | 5,682 |
| | — |
| | 50,214 |
| | — |
| | 55,904 |
| | — |
| | 8 |
| | 35 |
| | — |
| | 5,045 |
| | — |
| | 5,088 |
| Loss on impairment / retirement of fixed assets, net | | — |
| | — |
| | 25 |
| | 407 |
| | 250 |
| | — |
| | 682 |
| | — |
| | — |
| | 1,536 |
| | 441 |
| | 4,790 |
| | — |
| | 6,767 |
| Loss on impairment of goodwill and other intangibles | | | — |
| | — |
| | — |
| | 80,331 |
| | 7,850 |
| | — |
| | 88,181 |
| | | 188 |
| | 118,232 |
| | 28,462 |
| | 300,561 |
| | 75,447 |
| | (188,944 | ) | | 333,946 |
| | (361 | ) | | 62,754 |
| | 8,637 |
| | 27,679 |
| | 21,113 |
| | 117,776 |
| | 237,598 |
| Operating income (loss) | | 30,052 |
| | (10,421 | ) | | 9,912 |
| | 15,637 |
| | 57,064 |
| | — |
| | 102,244 |
| | Interest (income) expense, net | | 6,673 |
| | 4,996 |
| | 6,045 |
| | 15,165 |
| | (10,033 | ) | | — |
| | 22,846 |
| | Operating (loss) income | | | (49,994 | ) | | (112,639 | ) | | (8,537 | ) | | 18,676 |
| | (31,469 | ) | | — |
| | (183,963 | ) | Interest expense (income), net | | | 6,030 |
| | 4,769 |
| | 5,897 |
| | 18,676 |
| | (8,501 | ) | | — |
| | 26,871 |
| Net effect of swaps | | 2,126 |
| | 8,653 |
| | — |
| | — |
| | — |
| | — |
| | 10,779 |
| | 2,154 |
| | 17,625 |
| | — |
| | — |
| | — |
| | — |
| | 19,779 |
| (Gain) loss on foreign currency | | — |
| | 12 |
| | (9,484 | ) | | — |
| | — |
| | — |
| | (9,472 | ) | | Other (income) expense | | 64 |
| | (24,465 | ) | | 926 |
| | — |
| | 23,592 |
| | — |
| | 117 |
| | Income from investment in affiliates | | (45,594 | ) | | (45,111 | ) | | (11,401 | ) | | — |
| | (23,567 | ) | | 125,673 |
| | — |
| | Income before taxes | | 66,783 |
| | 45,494 |
| | 23,826 |
| | 472 |
| | 67,072 |
| | (125,673 | ) | | 77,974 |
| | Loss on foreign currency | | | — |
| | 7 |
| | 34,195 |
| | — |
| | — |
| | — |
| | 34,202 |
| Other expense (income) | | | 59 |
| | (8,200 | ) | | (152 | ) | | — |
| | 8,462 |
| | — |
| | 169 |
| Loss from investment in affiliates | | | 157,190 |
| | 69,205 |
| | 3,304 |
| | — |
| | 49,048 |
| | (278,747 | ) | | — |
| Loss before taxes | | | (215,427 | ) | | (196,045 | ) | | (51,781 | ) | | — |
| | (80,478 | ) | | 278,747 |
| | (264,984 | ) | Provision (benefit) for taxes | | 3,485 |
| | (102 | ) | | 256 |
| | 472 |
| | 10,565 |
| | — |
| | 14,676 |
| | 550 |
| | (38,857 | ) | | (2,730 | ) | | — |
| | (7,970 | ) | | — |
| | (49,007 | ) | Net income | | $ | 63,298 |
| | $ | 45,596 |
| | $ | 23,570 |
| | $ | — |
| | $ | 56,507 |
| | $ | (125,673 | ) | | $ | 63,298 |
| | Other comprehensive income (loss), (net of tax): | | | | | | | | | | | | | | | | Net loss | | | $ | (215,977 | ) | | $ | (157,188 | ) | | $ | (49,051 | ) | | $ | — |
| | $ | (72,508 | ) | | $ | 278,747 |
| | $ | (215,977 | ) | Other comprehensive income, (net of tax): | | | | | | | | | | | | | | | | Foreign currency translation adjustment | | (4,632 | ) | | — |
| | (4,632 | ) | | — |
| | — |
| | 4,632 |
| | (4,632 | ) | | 15,905 |
| | — |
| | 15,905 |
| | — |
| | — |
| | (15,905 | ) | | 15,905 |
| Other comprehensive income (loss), (net of tax) | | (4,632 | ) | | — |
| | (4,632 | ) | | — |
| | — |
| | 4,632 |
| | (4,632 | ) | | Total comprehensive income | | $ | 58,666 |
| | $ | 45,596 |
| | $ | 18,938 |
| | $ | — |
| | $ | 56,507 |
| | $ | (121,041 | ) | | $ | 58,666 |
| | Other comprehensive income, (net of tax) | | | 15,905 |
| | — |
| | 15,905 |
| | — |
| | — |
| | (15,905 | ) | | 15,905 |
| Total comprehensive loss | | | $ | (200,072 | ) | | $ | (157,188 | ) | | $ | (33,146 | ) | | $ | — |
| | $ | (72,508 | ) | | $ | 262,842 |
| | $ | (200,072 | ) |
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Three Months Ended June 24, 2018March 31, 2019 (In thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | | | | | | | | | | | | | | | | Net revenues | | $ | 23,937 |
| | $ | 91,527 |
| | $ | 29,648 |
| | $ | 279,133 |
| | $ | 118,781 |
| | $ | (162,710 | ) | | $ | 380,316 |
| Costs and expenses: | | | | | | | | | | | | | | | Cost of food, merchandise and games revenues | | — |
| | — |
| | 3,184 |
| | 25,595 |
| | 6,239 |
| | — |
| | 35,018 |
| Operating expenses | | — |
| | 93,036 |
| | 14,254 |
| | 211,865 |
| | 10,972 |
| | (162,710 | ) | | 167,417 |
| Selling, general and administrative | | 926 |
| | 15,638 |
| | 3,556 |
| | 27,351 |
| | 6,570 |
| | — |
| | 54,041 |
| Depreciation and amortization | | — |
| | 8 |
| | 5,940 |
| | — |
| | 46,271 |
| | — |
| | 52,219 |
| Loss on impairment / retirement of fixed assets, net | | — |
| | — |
| | 27 |
| | 795 |
| | 2,550 |
| | — |
| | 3,372 |
| | | 926 |
| | 108,682 |
| | 26,961 |
| | 265,606 |
| | 72,602 |
| | (162,710 | ) | | 312,067 |
| Operating income (loss) | | 23,011 |
| | (17,155 | ) | | 2,687 |
| | 13,527 |
| | 46,179 |
| | — |
| | 68,249 |
| Interest (income) expense, net | | 5,736 |
| | 4,592 |
| | 6,068 |
| | 13,046 |
| | (8,160 | ) | | — |
| | 21,282 |
| Net effect of swaps | | (324 | ) | | (582 | ) | | — |
| | — |
| | — |
| | — |
| | (906 | ) | Loss on foreign currency | | — |
| | 62 |
| | 14,922 |
| | — |
| | — |
| | — |
| | 14,984 |
| Other (income) expense | | 64 |
| | (22,751 | ) | | 932 |
| | — |
| | 21,671 |
| | — |
| | (84 | ) | (Income) loss from investment in affiliates | | (4,198 | ) | | (2,531 | ) | | (8,982 | ) | | — |
| | 13,602 |
| | 2,109 |
| | — |
| Income (loss) before taxes | | 21,733 |
| | 4,055 |
| | (10,253 | ) | | 481 |
| | 19,066 |
| | (2,109 | ) | | 32,973 |
| Provision (benefit) for taxes | | 2,490 |
| | (143 | ) | | 3,346 |
| | 481 |
| | 7,556 |
| | — |
| | 13,730 |
| Net income (loss) | | $ | 19,243 |
| | $ | 4,198 |
| | $ | (13,599 | ) | | $ | — |
| | $ | 11,510 |
| | $ | (2,109 | ) | | $ | 19,243 |
| Other comprehensive income (loss), (net of tax): | | | | | | | | | | | | | | | Foreign currency translation adjustment | | 6,662 |
| | — |
| | 6,662 |
| | — |
| | — |
| | (6,662 | ) | | 6,662 |
| Cash flow hedging derivative activity | | 2,116 |
| | 727 |
| | — |
| | — |
| | — |
| | (727 | ) | | 2,116 |
| Other comprehensive income (loss), (net of tax) | | 8,778 |
| | 727 |
| | 6,662 |
| | — |
| | — |
| | (7,389 | ) | | 8,778 |
| Total comprehensive income (loss) | | $ | 28,021 |
| | $ | 4,925 |
| | $ | (6,937 | ) | | $ | — |
| | $ | 11,510 |
| | $ | (9,498 | ) | | $ | 28,021 |
|
CEDAR FAIR, L.P.
UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
For the Six Months Ended June 30, 2019
(In thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | | | | | | | | | | | | | | | | Net revenues | | $ | 14,598 |
| | $ | 111,096 |
| | $ | 38,670 |
| | $ | 380,785 |
| | $ | 141,228 |
| | $ | (183,210 | ) | | $ | 503,167 |
| Costs and expenses: | | | | | | | | | | | | | | | Cost of food, merchandise and games revenues | | — |
| | 51 |
| | 3,926 |
| | 36,330 |
| | 7,150 |
| | — |
| | 47,457 |
| Operating expenses | | 2 |
| | 150,345 |
| | 20,745 |
| | 268,117 |
| | 19,977 |
| | (183,210 | ) | | 275,976 |
| Selling, general and administrative | | 1,625 |
| | 30,552 |
| | 4,865 |
| | 46,061 |
| | 8,344 |
| | — |
| | 91,447 |
| Depreciation and amortization | | — |
| | 16 |
| | 5,682 |
| | — |
| | 63,795 |
| | — |
| | 69,493 |
| Loss on impairment / retirement of fixed assets, net | | — |
| | — |
| | 35 |
| | 793 |
| | 1,278 |
| | — |
| | 2,106 |
| Gain on sale of investment | | — |
| | (617 | ) | | — |
| | — |
| | — |
| | — |
| | (617 | ) | | | 1,627 |
| | 180,347 |
| | 35,253 |
| | 351,301 |
| | 100,544 |
| | (183,210 | ) | | 485,862 |
| Operating income (loss) | | 12,971 |
| | (69,251 | ) | | 3,417 |
| | 29,484 |
| | 40,684 |
| | — |
| | 17,305 |
| Interest (income) expense, net | | 13,064 |
| | 10,026 |
| | 11,758 |
| | 28,549 |
| | (19,864 | ) | | — |
| | 43,533 |
| Net effect of swaps | | 3,117 |
| | 14,041 |
| | — |
| | — |
| | — |
| | — |
| | 17,158 |
| (Gain) loss on foreign currency | | — |
| | 1 |
| | (18,142 | ) | | — |
| | — |
| | — |
| | (18,141 | ) | Other (income) expense | | 123 |
| | (35,971 | ) | | 2,025 |
| | — |
| | 34,262 |
| | — |
| | 439 |
| (Income) loss from investment in affiliates | | 12,855 |
| | (30,452 | ) | | (6,798 | ) | | — |
| | (17,377 | ) | | 41,772 |
| | — |
| Income (loss) before taxes | | (16,188 | ) | | (26,896 | ) | | 14,574 |
| | 935 |
| | 43,663 |
| | (41,772 | ) | | (25,684 | ) | Provision (benefit) for taxes | | 4,187 |
| | (14,041 | ) | | (2,803 | ) | | 935 |
| | 6,413 |
| | — |
| | (5,309 | ) | Net income (loss) | | $ | (20,375 | ) | | $ | (12,855 | ) | | $ | 17,377 |
| | $ | — |
| | $ | 37,250 |
| | $ | (41,772 | ) | | $ | (20,375 | ) | Other comprehensive income (loss), (net of tax): | | | | | | | | | | | | | | | Foreign currency translation adjustment | | (7,682 | ) | | — |
| | (7,682 | ) | | — |
| | — |
| | 7,682 |
| | (7,682 | ) | Other comprehensive income (loss), (net of tax) | | (7,682 | ) | | — |
| | (7,682 | ) | | — |
| | — |
| | 7,682 |
| | (7,682 | ) | Total comprehensive income (loss) | | $ | (28,057 | ) | | $ | (12,855 | ) | | $ | 9,695 |
| | $ | — |
| | $ | 37,250 |
| | $ | (34,090 | ) | | $ | (28,057 | ) |
CEDAR FAIR, L.P.
UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
For the Six Months Ended June 24, 2018
(In thousands)
| | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net revenues | | $ | 13,170 |
| | $ | 92,381 |
| | $ | 29,919 |
| | $ | 332,864 |
| | $ | 120,487 |
| | $ | (153,778 | ) | | $ | 435,043 |
| | $ | (15,642 | ) | | $ | 3,285 |
| | $ | 296 |
| | $ | 64,587 |
| | $ | 8,717 |
| | $ | 5,734 |
| | $ | 66,977 |
| Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cost of food, merchandise and games revenues | | — |
| | — |
| | 3,184 |
| | 31,494 |
| | 6,343 |
| | — |
| | 41,021 |
| | — |
| | — |
| | 52 |
| | 7,241 |
| | 356 |
| | — |
| | 7,649 |
| Operating expenses | | — |
| | 135,707 |
| | 19,970 |
| | 234,485 |
| | 19,861 |
| | (153,778 | ) | | 256,245 |
| | — |
| | 48,172 |
| | 5,711 |
| | 29,551 |
| | 9,037 |
| | 5,734 |
| | 98,205 |
| Selling, general and administrative | | 1,685 |
| | 30,088 |
| | 4,236 |
| | 38,994 |
| | 7,720 |
| | — |
| | 82,723 |
| | 1,439 |
| | 14,552 |
| | 1,018 |
| | 13,562 |
| | 1,095 |
| | — |
| | 31,666 |
| Depreciation and amortization | | — |
| | 16 |
| | 5,940 |
| | — |
| | 51,784 |
| | — |
| | 57,740 |
| | — |
| | 8 |
| | — |
| | — |
| | 13,581 |
| | — |
| | 13,589 |
| Loss on impairment / retirement of fixed assets, net | | — |
| | — |
| | 67 |
| | 1,446 |
| | 3,199 |
| | — |
| | 4,712 |
| | — |
| | — |
| | 10 |
| | 386 |
| | 1,028 |
| | — |
| | 1,424 |
| Gain on sale of investment | | | — |
| | (617 | ) | | — |
| | — |
| | — |
| | — |
| | (617 | ) | | | 1,685 |
| | 165,811 |
| | 33,397 |
| | 306,419 |
| | 88,907 |
| | (153,778 | ) | | 442,441 |
| | 1,439 |
| | 62,115 |
| | 6,791 |
| | 50,740 |
| | 25,097 |
| | 5,734 |
| | 151,916 |
| Operating income (loss) | | 11,485 |
| | (73,430 | ) | | (3,478 | ) | | 26,445 |
| | 31,580 |
| | — |
| | (7,398 | ) | | Interest (income) expense, net | | 10,640 |
| | 8,959 |
| | 11,651 |
| | 24,599 |
| | (15,031 | ) | | — |
| | 40,818 |
| | Operating (loss) income | | | (17,081 | ) | | (58,830 | ) | | (6,495 | ) | | 13,847 |
| | (16,380 | ) | | — |
| | (84,939 | ) | Interest expense (income), net | | | 6,391 |
| | 5,030 |
| | 5,713 |
| | 13,384 |
| | (9,831 | ) | | — |
| | 20,687 |
| Net effect of swaps | | (2,531 | ) | | (2,003 | ) | | — |
| | — |
| | — |
| | — |
| | (4,534 | ) | | 991 |
| | 5,388 |
| | — |
| | — |
| | — |
| | — |
| | 6,379 |
| Loss on early debt extinguishment | | — |
| | 187 |
| | — |
| | 886 |
| | — |
| | — |
| | 1,073 |
| | Loss on foreign currency | | — |
| | 21 |
| | 25,057 |
| | — |
| | — |
| | — |
| | 25,078 |
| | Other (income) expense | | 123 |
| | (32,555 | ) | | 1,786 |
| | — |
| | 30,439 |
| | — |
| | (207 | ) | | (Income) loss from investment in affiliates | | 64,330 |
| | 26,284 |
| | (5,069 | ) | | — |
| | 34,187 |
| | (119,732 | ) | | — |
| | Income (loss) before taxes | | (61,077 | ) | | (74,323 | ) | | (36,903 | ) | | 960 |
| | (18,015 | ) | | 119,732 |
| | (69,626 | ) | | Gain on foreign currency | | | — |
| | (11 | ) | | (8,658 | ) | | — |
| | — |
| | — |
| | (8,669 | ) | Other expense (income) | | | 59 |
| | (11,506 | ) | | 1,099 |
| | — |
| | 10,670 |
| | — |
| | 322 |
| Loss from investment in affiliates | | | 58,449 |
| | 14,659 |
| | 4,603 |
| | — |
| | 6,190 |
| | (83,901 | ) | | — |
| (Loss) income before taxes | | | (82,971 | ) | | (72,390 | ) | | (9,252 | ) | | 463 |
| | (23,409 | ) | | 83,901 |
| | (103,658 | ) | Provision (benefit) for taxes | | 3,080 |
| | (9,994 | ) | | (2,716 | ) | | 960 |
| | 3,201 |
| | — |
| | (5,469 | ) | | 702 |
| | (13,939 | ) | | (3,059 | ) | | 463 |
| | (4,152 | ) | | — |
| | (19,985 | ) | Net loss | | $ | (64,157 | ) | | $ | (64,329 | ) | | $ | (34,187 | ) | | $ | — |
| | $ | (21,216 | ) | | $ | 119,732 |
| | $ | (64,157 | ) | | $ | (83,673 | ) | | $ | (58,451 | ) | | $ | (6,193 | ) | | $ | — |
| | $ | (19,257 | ) | | $ | 83,901 |
| | $ | (83,673 | ) | Other comprehensive income (loss), (net of tax): | | | | | | | | | | | | | | | | Other comprehensive loss, (net of tax): | | | | | | | | | | | | | | | | Foreign currency translation adjustment | | 11,266 |
| | — |
| | 11,266 |
| | — |
| | — |
| | (11,266 | ) | | 11,266 |
| | (3,050 | ) | | — |
| | (3,050 | ) | | — |
| | — |
| | 3,050 |
| | (3,050 | ) | Cash flow hedging derivative activity | | 4,134 |
| | 1,357 |
| | — |
| | — |
| | — |
| | (1,357 | ) | | 4,134 |
| | Other comprehensive income (loss), (net of tax) | | 15,400 |
| | 1,357 |
| | 11,266 |
| | — |
| | — |
| | (12,623 | ) | | 15,400 |
| | Other comprehensive loss, (net of tax) | | | (3,050 | ) | | — |
| | (3,050 | ) | | — |
| | — |
| | 3,050 |
| | (3,050 | ) | Total comprehensive loss | | $ | (48,757 | ) | | $ | (62,972 | ) | | $ | (22,921 | ) | | $ | — |
| | $ | (21,216 | ) | | $ | 107,109 |
| | $ | (48,757 | ) | | $ | (86,723 | ) | | $ | (58,451 | ) | | $ | (9,243 | ) | | $ | — |
| | $ | (19,257 | ) | | $ | 86,951 |
| | $ | (86,723 | ) |
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the SixThree Months Ended June 30, 2019March 29, 2020 (In thousands) | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | NET CASH FROM (FOR) OPERATING ACTIVITIES | | $ | 53,711 |
| | $ | (28,342 | ) | | $ | 9,120 |
| | $ | (2,965 | ) | | $ | 69,406 |
| | $ | (2,246 | ) | | $ | 98,684 |
| | $ | 33,452 |
| | $ | 9,386 |
| | $ | (19,350 | ) | | $ | (140,331 | ) | | $ | 13,446 |
| | $ | (1,742 | ) | | $ | (105,139 | ) | CASH FLOWS FROM (FOR) INVESTING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Intercompany receivables (payments) receipts | | — |
| | — |
| | — |
| | — |
| | (47,144 | ) | | 47,144 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 3,370 |
| | (3,370 | ) | | — |
| Proceeds from returns on investments | | — |
| | 38,030 |
| | — |
| | — |
| | — |
| | (38,030 | ) | | — |
| | — |
| | 20,000 |
| | — |
| | — |
| | — |
| | (20,000 | ) | | — |
| Proceeds from sale of investment | | — |
| | 617 |
| | — |
| | — |
| | — |
| | — |
| | 617 |
| | Capital expenditures | | — |
| | — |
| | (12,817 | ) | | (230,504 | ) | | (19,532 | ) | | — |
| | (262,853 | ) | | — |
| | 70 |
| | (1,286 | ) | | (39,144 | ) | | (17,672 | ) | | — |
| | (58,032 | ) | Net cash from (for) investing activities | | — |
| | 38,647 |
| | (12,817 | ) | | (230,504 | ) | | (66,676 | ) | | 9,114 |
| | (262,236 | ) | | — |
| | 20,070 |
| | (1,286 | ) | | (39,144 | ) | | (14,302 | ) | | (23,370 | ) | | (58,032 | ) | CASH FLOWS FROM (FOR) FINANCING ACTIVITIES | | | | | | | | | | | | | | | | CASH FLOWS (FOR) FROM FINANCING ACTIVITIES | | | | | | | | | | | | | | | | Intercompany payables (payments) receipts | | 51,418 |
| | (4,274 | ) | | — |
| | — |
| | — |
| | (47,144 | ) | | — |
| | 19,727 |
| | (23,097 | ) | | — |
| | — |
| | — |
| | 3,370 |
| | — |
| Payments for returns of capital | | — |
| | — |
| | (38,030 | ) | | — |
| | — |
| | 38,030 |
| | — |
| | — |
| | — |
| | (20,000 | ) | | — |
| | — |
| | 20,000 |
| | — |
| Note borrowings | | — |
| | — |
| | — |
| | 500,000 |
| | — |
| | — |
| | 500,000 |
| | Term debt payments | | — |
| | (328 | ) | | — |
| | (1,547 | ) | | — |
| | — |
| | (1,875 | ) | | Net borrowings on revolving credit loans | | | — |
| | — |
| | — |
| | 70,000 |
| | — |
| | — |
| | 70,000 |
| Distributions paid to partners | | (105,129 | ) | | — |
| | — |
| | — |
| | — |
| | 443 |
| | (104,686 | ) | | (53,179 | ) | | — |
| | — |
| | — |
| | — |
| | 157 |
| | (53,022 | ) | Payment of debt issuance costs and original issue discount | | — |
| | — |
| | — |
| | (7,712 | ) | | — |
| | — |
| | (7,712 | ) | | Tax effect of units involved in treasury unit transactions | | — |
| | (1,561 | ) | | — |
| | — |
| | — |
| | — |
| | (1,561 | ) | | — |
| | (1,741 | ) | | — |
| | — |
| | — |
| | — |
| | (1,741 | ) | Payments related to tax withholding for equity compensation | | — |
| | (4,142 | ) | | — |
| | — |
| | — |
| | — |
| | (4,142 | ) | | — |
| | (4,618 | ) | | — |
| | — |
| | — |
| | — |
| | (4,618 | ) | Net cash from (for) financing activities | | (53,711 | ) | | (10,305 | ) | | (38,030 | ) | | 490,741 |
| | — |
| | (8,671 | ) | | 380,024 |
| | Net cash (for) from financing activities | | | (33,452 | ) | | (29,456 | ) | | (20,000 | ) | | 70,000 |
| | — |
| | 23,527 |
| | 10,619 |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | | — |
| | — |
| | 2,921 |
| | — |
| | — |
| | — |
| | 2,921 |
| | — |
| | — |
| | (3,405 | ) | | — |
| | — |
| | — |
| | (3,405 | ) | CASH AND CASH EQUIVALENTS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net increase (decrease) for the period | | — |
| | — |
| | (38,806 | ) | | 257,272 |
| | 2,730 |
| | (1,803 | ) | | 219,393 |
| | Net decrease for the period | | | — |
| | — |
| | (44,041 | ) | | (109,475 | ) | | (856 | ) | | (1,585 | ) | | (155,957 | ) | Balance, beginning of period | | — |
| | — |
| | 73,326 |
| | 30,663 |
| | 2,052 |
| | (692 | ) | | 105,349 |
| | — |
| | — |
| | 66,357 |
| | 115,437 |
| | 991 |
| | (533 | ) | | 182,252 |
| Balance, end of period | | $ | — |
| | $ | — |
| | $ | 34,520 |
| | $ | 287,935 |
| | $ | 4,782 |
| | $ | (2,495 | ) | | $ | 324,742 |
| | $ | — |
| | $ | — |
| | $ | 22,316 |
| | $ | 5,962 |
| | $ | 135 |
| | $ | (2,118 | ) | | $ | 26,295 |
|
CEDAR FAIR, L.P. UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the SixThree Months Ended June 24, 2018March 31, 2019 (In thousands) | | | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | | Cedar Fair L.P. (Parent) | | Co-Issuer Subsidiary (Magnum) | | Co-Issuer Subsidiary (Cedar Canada) | | Co-Issuer Subsidiary (Millennium) | | Guarantor Subsidiaries | | Eliminations | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | NET CASH FROM (FOR) OPERATING ACTIVITIES | | $ | 56,049 |
| | $ | 48,573 |
| | $ | 2,897 |
| | $ | (13,826 | ) | | $ | (7,672 | ) | | $ | (256 | ) | | $ | 85,765 |
| | $ | 24,410 |
| | $ | (6,580 | ) | | $ | (6,077 | ) | | $ | (76,937 | ) | | $ | 8,448 |
| | $ | (6 | ) | | $ | (56,742 | ) | CASH FLOWS FROM (FOR) INVESTING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Intercompany receivables (payments) receipts | | — |
| | — |
| | (37,892 | ) | | — |
| | 31,123 |
| | 6,769 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (1,585 | ) | | 1,585 |
| | — |
| Proceeds from returns on investments | | | — |
| | 38,030 |
| | — |
| | — |
| | — |
| | (38,030 | ) | | — |
| Capital expenditures | | — |
| | — |
| | (8,495 | ) | | (70,399 | ) | | (21,743 | ) | | — |
| | (100,637 | ) | | — |
| | — |
| | (7,193 | ) | | (37,470 | ) | | (8,734 | ) | | — |
| | (53,397 | ) | Proceeds from sale of investment | | | — |
| | 617 |
| | — |
| | — |
| | — |
| | — |
| | 617 |
| Net cash from (for) investing activities | �� | — |
| | — |
| | (46,387 | ) | | (70,399 | ) | | 9,380 |
| | 6,769 |
| | (100,637 | ) | | — |
| | 38,647 |
| | (7,193 | ) | | (37,470 | ) | | (10,319 | ) | | (36,445 | ) | | (52,780 | ) | CASH FLOWS FROM (FOR) FINANCING ACTIVITIES | | | | | | | | | | | | | | | | CASH FLOWS (FOR) FROM FINANCING ACTIVITIES | | | | | | | | | | | | | | | | Intercompany payables (payments) receipts | | 45,171 |
| | (38,402 | ) | | — |
| | — |
| | — |
| | (6,769 | ) | | — |
| | 28,152 |
| | (26,567 | ) | | — |
| | — |
| | — |
| | (1,585 | ) | | — |
| Payments for returns of capital | | | — |
| | — |
| | (38,030 | ) | | — |
| | — |
| | 38,030 |
| | — |
| Net borrowings on revolving credit loans | | — |
| | — |
| | — |
| | 25,000 |
| | — |
| | — |
| | 25,000 |
| | — |
| | — |
| | — |
| | 120,000 |
| | — |
| | — |
| | 120,000 |
| Distributions paid to partners | | (101,220 | ) | | — |
| | — |
| | — |
| | — |
| | 662 |
| | (100,558 | ) | | (52,562 | ) | | — |
| | — |
| | — |
| | — |
| | 228 |
| | (52,334 | ) | Payment of debt issuance costs and original issue discount | | — |
| | (321 | ) | | — |
| | (2,191 | ) | | — |
| | — |
| | (2,512 | ) | | Exercise of limited partnership unit options | | — |
| | 125 |
| | — |
| | — |
| | — |
| | — |
| | 125 |
| | Tax effect of units involved in treasury unit transactions | | — |
| | (3,045 | ) | | — |
| | — |
| | — |
| | — |
| | (3,045 | ) | | — |
| | (1,421 | ) | | — |
| | — |
| | — |
| | — |
| | (1,421 | ) | Payments related to tax withholding for equity compensation | | — |
| | (6,930 | ) | | — |
| | — |
| | — |
| | — |
| | (6,930 | ) | | — |
| | (4,079 | ) | | — |
| | — |
| | — |
| | — |
| | (4,079 | ) | Net cash from (for) financing activities | | (56,049 | ) | | (48,573 | ) | | — |
| | 22,809 |
| | — |
| | (6,107 | ) | | (87,920 | ) | | Net cash (for) from financing activities | | | (24,410 | ) | | (32,067 | ) | | (38,030 | ) | | 120,000 |
| | — |
| | 36,673 |
| | 62,166 |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | | — |
| | — |
| | (3,334 | ) | | — |
| | — |
| | — |
| | (3,334 | ) | | — |
| | — |
| | 2,279 |
| | — |
| | — |
| | — |
| | 2,279 |
| CASH AND CASH EQUIVALENTS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net increase (decrease) for the period | | — |
| | — |
| | (46,824 | ) | | (61,416 | ) | | 1,708 |
| | 406 |
| | (106,126 | ) | | Net (decrease) increase for the period | | | — |
| | — |
| | (49,021 | ) | | 5,593 |
| | (1,871 | ) | | 222 |
| | (45,077 | ) | Balance, beginning of period | | — |
| | — |
| | 85,758 |
| | 80,430 |
| | 1,152 |
| | (1,095 | ) | | 166,245 |
| | — |
| | — |
| | 73,326 |
| | 30,663 |
| | 2,052 |
| | (692 | ) | | 105,349 |
| Balance, end of period | | $ | — |
| | $ | — |
| | $ | 38,934 |
| | $ | 19,014 |
| | $ | 2,860 |
| | $ | (689 | ) | | $ | 60,119 |
| | $ | — |
| | $ | — |
| | $ | 24,305 |
| | $ | 36,256 |
| | $ | 181 |
| | $ | (470 | ) | | $ | 60,272 |
|
(15) Acquisition Subsequent Events:Event: On July 1, 2019,April 27, 2020, we issued $1.0 billion of 5.500% senior secured notes due 2025 ("2025 senior notes") in a private placement. Cedar Fair, L.P., Canada's Wonderland Company ("Cedar Canada"), Magnum Management Corporation ("Magnum"), and Millennium Operations LLC ("Millennium") are the Partnership completedco-issuers of the acquisition2025 senior notes. The notes have been fully and unconditionally guaranteed, on a joint and several basis, by each 100% owned subsidiary of two water parksCedar Fair (other than Cedar Canada, Magnum and one resort in Texas, the Schlitterbahn Waterpark & Resort New BraunfelsMillennium). The 2025 senior notes and the Schlitterbahn Waterpark Galveston ("Schlitterbahn"), for a cash purchase price of $258.9 million, subject to certain working capital adjustments. Schlitterbahn will be included withinrelated guarantees are secured by first-priority liens on the Partnership's single reportable segment of amusement/water parks with accompanying resortissuers' and the guarantors' assets that secure all the obligations under our credit facilities. The purchase price allocation remains preliminary as management completes the valuation assessment of property acquired and finalizes the working capital adjustment. Acquisition related transaction costs totaled $0.9 million for the six months ended June 30, 2019 and are included in Selling, general and administrative expenses within the unaudited condensed consolidated statement of operations and comprehensive income.
In conjunction with the acquisition, the Partnership issued $500 million of 5.250% senior unsecured notes maturing in 2029 (see Note 6). The net proceeds from the offering of the 2025 senior notes were used to completerepay $463.3 million of our outstanding senior secured term loan facility under the Schlitterbahn acquisition, completeAmended 2017 Credit Agreement, and the purchase of land at California's Great America (see Note 11), to pay transactionremaining amount will be used for general corporate and working capital purposes, including fees and expenses related to the transaction. Following the prepayment of our senior secured term loan facility, the outstanding balance on our senior secured term loan facility was $264.3 million as of April 27, 2020, and for general corporate purposeswe do not have any required remaining scheduled quarterly payments on our senior secured term loan facility.
In connection with the 2025 senior notes offering and repaymentthe prepayment of a portion of our outstanding senior secured term loan facility, we further amended the Amended 2017 Credit Agreement (subsequently referred to as the "Second Amended 2017 Credit Agreement" or the "Second Amendment") to, among other things, suspend and revise certain of the financial covenants, in part, in response to the COVID-19 pandemic. Financial covenant revisions included: (i) suspended testing of the Consolidated Leverage Ratio (which was previously set at a maximum of 5.50x Consolidated Total Debt-to-Consolidated EBITDA under the Amended 2017 Credit Agreement) after the first quarter of the fiscal year ended December 31, 2020, (ii) replaced such Consolidated Leverage Ratio testing with a Senior Secured Leverage Ratio of 4.00x Total First Lien Senior Secured Debt-to-Consolidated EBITDA to be tested quarterly starting with the first quarter of the fiscal year ended December 31, 2021, which will step down to 3.75x in the fourth quarter of the fiscal year ended December 31, 2021, with the covenant calculation to include Consolidated EBITDA from the first quarter of the fiscal year ended December 31, 2021 and the second, third and fourth quarters of the fiscal year ended December 31, 2019 (the "Deemed EBITDA Quarters") until the fourth quarter of the fiscal year ended December 31, 2021, from and after which time the then current Consolidated EBITDA calculations will be used, (iii) added a requirement that we maintain a minimum liquidity level of at least $125.0 million, tested at all times, until the earlier of December 31, 2021 or the termination of the Additional Restrictions Period (which generally includes the period from the effective date of the Second Amendment until December 31, 2021), (iv) suspended certain restricted payments, including partnership distributions, certain payments in respect of senior unsecured debt, cash mergers and/or acquisition investments and the incurrence of incremental loans and commitments under the Second Amended 2017 Credit Agreement until the earlier of the delivery of the compliance certificate for the fourth quarter of the fiscal year ended December 31, 2021 or the termination of the Additional Restrictions Period, and (v) permitted the incurrence of the portion of the 2025 senior notes that were issued, the proceeds of which were not applied to repay a portion of the senior secured term loan facility. We may terminate the Additional Restrictions Period prior to December 31, 2021 by achieving compliance with the Senior Secured Leverage Ratio covenant as of the end of a fiscal quarter without giving effect to Deemed EBITDA Quarters for any fiscal quarter.
Additionally, the Second Amendment increased the interest rate for the senior secured revolving credit facility. In additionPreviously, borrowings under the senior secured revolving credit facility bore interest at LIBOR or CDOR plus 200 bps. Under the Second Amendment, borrowings under the senior secured revolving credit facility will bear interest at LIBOR plus 300 bps or CDOR plus 200 bps. Lastly, immediately after giving effect to the water parks and resort acquired on July 1, 2019,Second Amendment, we received additional commitments under the Partnership has the rightU.S. senior secured revolving credit facility of $100.0 million bringing our total senior secured revolving credit facility capacity to acquire an additional property located in Kansas City, Kansas for$375.0 million with a cash paymentCanadian sub-limit of $6.0$15.0 million.
The Partnership completed an immaterial acquisition2025 senior notes pay interest semi-annually in May and November, beginning November 1, 2020, with the principal due in full on May 1, 2025. Prior to May 1, 2022, up to 35% of Sawmill Creek Resort locatedthe notes may be redeemed with the net cash proceeds of certain equity offerings at a price equal to 105.500% of the principal amount thereof, together with accrued and unpaid interest and additional interest, if any. The notes may be redeemed, in Huron, Ohiowhole or in part, at any time prior to May 1, 2022 at a price equal to 100% of the principal amount of the notes redeemed plus a "make-whole" premium together with accrued and unpaid interest and additional interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on July 3, 2019. Sawmill Creek Resort is a 236-room resort lodge located on 235 acres with a marina, a half-mile beach and 50 acres of undeveloped land.the date redeemed.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Business Overview: We generate our revenues from sales of (1) admission to our amusement parks and water parks, (2) food, merchandise and games both inside and outside our parks, and (3) accommodations, extra-charge products, and other revenue sources. Our principal costs and expenses, which include salaries and wages, operating supplies, maintenance, advertising, utilities and insurance, are relatively fixed for an operating season and do not vary significantly with attendance.
Each of our properties is overseen by a park general manager and operates autonomously. Management reviews operating results, evaluates performance and makes operating decisions, including allocating resources, on a property-by-property basis.
Along with attendance and in-park per capita spending statistics, discrete financial information and operating results are prepared at the individual park level for use by the CEO, who is the Chief Operating Decision Maker (CODM), as well as by the Chief Financial Officer, the Chief Operating Officer, the Executive Vice President of Operations, Regional Vice Presidents and the park general managers.
Impact of COVID-19 Pandemic Due to the coronavirus (COVID-19) pandemic, on March 13, 2020, we announced the closure of certain parks and the decision to delay the opening of other parks in response to the federal and local recommendations and restrictions to mitigate the spread of COVID-19. As of May 6, 2020, all our parks remain closed. Even after our parks are able to reopen, there may be longer-term negative impacts to our business, results of operations and financial condition as a result of the COVID-19 pandemic, including changes in consumer behavior and preferences causing significant volatility or reductions in demand for or interest in our parks, damage to our brand and reputation, increases in operating expenses to comply with additional hygiene-related protocols, limitations on our ability to recruit and train sufficient employees to staff our parks, limitations on our employees' ability to work and travel, and significant changes in the economic or political conditions in areas in which we operate. Despite our efforts to manage these impacts, their ultimate impact may be material, and will depend on factors beyond our knowledge or control, including the duration and severity of the COVID-19 pandemic and actions taken to contain its spread and mitigate its public health effects. See Risk Factors within Part II for additional detail.
Since closing our parks, we have taken the following proactive measures to reduce operating expenses and cash outflows: Eliminated nearly all of our seasonal and part-time labor costs until our parks prepare to reopen, Suspended all advertising and marketing expenses, and reduced general and administrative expenses and other park-level operating expenses to better align with the disruption in operations while still remaining in readiness position to reopen parks, Reduced the CEO’s base salary by 40% and the base salaries of all other executives by 25%, effective April 27, 2020, Deferred base salaries for all other salaried employees by 25%, subject to minimum thresholds or other statutory limitations, Reduced scheduled hours for full-time hourly employees by 25% to 30 hours per week, and Suspended cash retainer fees for our Board of Directors until business conditions improve.
To provide incremental liquidity and enhanced financial flexibility, we have taken proactive steps to reduce our capital spending for calendar year 2020, including the suspension of at least $75-100 million of non-essential capital projects planned for the 2020 and 2021 operating seasons. As of the date of this Form 10-Q, we anticipate spending $85-100 million on capital improvements in calendar year 2020.
In addition, the Board of Directors has determined that it is in the best interests of unitholders for us to preserve liquidity by suspending the quarterly distribution.
Given the uncertainty around the timing of the parks reopening, and in order to ensure our season pass holders receive a full season of value, we also recently announced we have paused collections of guest payments on installment purchase products, and that we have extended the usage privileges of 2020 season passes through the 2021 season to compensate for lost access to the parks in the current year.
In addition, we have taken steps to secure additional liquidity and address any potential debt covenant issues in the event that the effects of the COVID-19 pandemic continue. On April 27, 2020, we issued $1.0 billion of 5.500% senior secured notes due 2025 and further amended the Amended 2017 Credit Agreement to suspend and revise certain financial covenants, and to adjust the interest rate on and reflect additional commitments and capacity for our revolving credit facility. See the Subsequent Event footnote at Note 15 for further details.
As a result of these steps, we have concluded that we will have sufficient liquidity to satisfy our obligations and remain in compliance with our debt covenants for the next twelve months.
Critical Accounting Policies: Management’s discussionDiscussion and analysisAnalysis of financial conditionFinancial Condition and resultsResults of operationsOperations is based upon our unaudited condensed consolidated financial statements, which were prepared in accordance with accounting principles generally accepted in the United States of America. These principles require us to make judgments, estimates and assumptions during the normal course of business that affect the amounts reported in the unaudited condensed consolidated financial statements. Beyond estimates in the normal course of business, management has also made significant estimates and assumptions related to the COVID-19 pandemic to determine our liquidity requirements and estimate the impact on our business, including financial results in the near and long-term. Actual results could differ significantly from those estimates under different assumptions and conditions.
Management believes that judgment and estimates related to the following critical accounting policies could materially affect our unaudited condensed consolidated financial statements: •Impairment of Long-Lived Assets •Accounting for Business Combinations •Goodwill and Other Intangible Assets •Self-Insurance Reserves •Revenue Recognition Income Taxes In the secondfirst quarter of 2019,2020, there were no changes in the above critical accounting policies from those previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2018.2019.
Adjusted EBITDA: We believe that Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other non-cash items, and adjustments as defined in the Amended 2017 Credit Agreement and prior credit agreements) is a meaningful measure as it is widely used by analysts, investors and comparable companies in our industry to evaluate our operating performance on a consistent basis,
as well as more easily compare our results with those of other companies in our industry. Further, management believes Adjusted EBITDA is a meaningful measure of park-level operating profitability and we use it for measuring returns on capital investments, evaluating potential acquisitions, determining awards under incentive compensation plans, and calculating compliance with certain loan covenants. Adjusted EBITDA is provided in the discussion of results of operations that follows as a supplemental measure of our operating results and is not intended to be a substitute for operating income, net income or cash flows from operating activities as defined under generally accepted accounting principles. In addition, Adjusted EBITDA may not be comparable to similarly titled measures of other companies.
The table below sets forth a reconciliation of Adjusted EBITDA to net income (loss)loss for the three- and six-monththree-month periods ended June 30, 2019March 29, 2020 and June 24, 2018.March 31, 2019. | | | Three months ended | | Six months ended | | Three months ended | (In thousands) | June 30, 2019 | | June 24, 2018 | | June 30, 2019 | | June 24, 2018 | | March 29, 2020 | | March 31, 2019 | Net income (loss) | $ | 63,298 |
| | $ | 19,243 |
| | $ | (20,375 | ) | | $ | (64,157 | ) | | Net loss | | | $ | (215,977 | ) | | $ | (83,673 | ) | Interest expense | 22,927 |
| | 21,337 |
| | 43,847 |
| | 41,099 |
| | 27,219 |
| | 20,920 |
| Interest income | (81 | ) | | (55 | ) | | (314 | ) | | (281 | ) | | (348 | ) | | (233 | ) | Provision (benefit) for taxes | 14,676 |
| | 13,730 |
| | (5,309 | ) | | (5,469 | ) | | Benefit for taxes | | | (49,007 | ) | | (19,985 | ) | Depreciation and amortization | 55,904 |
| | 52,219 |
| | 69,493 |
| | 57,740 |
| | 5,088 |
| | 13,589 |
| EBITDA | 156,724 |
| | 106,474 |
| | 87,342 |
| | 28,932 |
| | (233,025 | ) | | (69,382 | ) | Loss on early debt extinguishment | — |
| | — |
| | — |
| | 1,073 |
| | Net effect of swaps | 10,779 |
| | (906 | ) | | 17,158 |
| | (4,534 | ) | | 19,779 |
| | 6,379 |
| Non-cash foreign currency (gain) loss | (9,481 | ) | | 14,992 |
| | (18,145 | ) | | 25,090 |
| | Non-cash foreign currency loss (gain) | | | 34,203 |
| | (8,664 | ) | Non-cash equity compensation expense | 3,287 |
| | 3,180 |
| | 5,830 |
| | 6,148 |
| | (4,794 | ) | | 2,543 |
| Loss on impairment / retirement of fixed assets, net | 682 |
| | 3,372 |
| | 2,106 |
| | 4,712 |
| | 6,767 |
| | 1,424 |
| Loss on impairment of goodwill and other intangibles | | | 88,181 |
| | — |
| Gain on sale of investment | — |
| | — |
| | (617 | ) | | — |
| | — |
| | (617 | ) | Acquisition-related costs | 946 |
| | — |
| | 946 |
| | — |
| | Other (1) | 124 |
| | (76 | ) | | 283 |
| | 93 |
| | 224 |
| | 159 |
| Adjusted EBITDA | $ | 163,061 |
| | $ | 127,036 |
| | $ | 94,903 |
| | $ | 61,514 |
| | $ | (88,665 | ) | | $ | (68,158 | ) |
| | (1) | Consists of certain costs as defined in the Partnership'sour Amended 2017 Credit Agreement and prior credit agreements. These items are excluded from the calculation of Adjusted EBITDA and have included certain legal expenses and severance expenses. This balance also includes unrealized gains and losses on short-term investments. |
Results of Operations: We believe the following are key operational measures in our managementmanagerial and operational reporting, and they are used as major factors in significant operational decisions:decisions as they are primary drivers of our financial and operational performance: Attendance is defined as the number of guest visits to our amusement parks and separately gated outdoor water parks. In-park per capita spending is calculated as revenues generated within our amusement parks and separately gated outdoor water parks along with related tolls and parking revenues (in-park revenues), divided by total attendance. Out-of-park revenues are defined as revenues from resort, marina, sponsorship, online transaction fees charged to customers and all other out-of-park operations. Net revenues consist of in-park revenues and out-of-park revenues less amounts remitted to outside parties under concessionaire arrangements. Seearrangements (see Note 34 for further information.). Results
Three months ended March 29, 2020 Operating results for the first six monthsquarter are historically less than 5% of 2019 doour full-year revenues and attendance. First quarter results typically include normal off-season operating, maintenance and administrative expenses at our ten seasonal amusement parks and two of our separately gated outdoor water parks, daily operations at Knott's Berry Farm which is open year-round, limited operations at the recently acquired Schlitterbahn parks which are open during portions of March, and Castaway Bay, which is generally open daily from Memorial Day to Labor Day plus a limited daily schedule for the balance of the year.
The results for the fiscal three-month period ended March 29, 2020 are not includedirectly comparable with the results of Schlitterbahn, which we acquired on July 1, 2019. See Note 15.
Six months ended June 30, 2019
Thefor the fiscal six-monththree-month period ended June 30, 2019 consistedMarch 31, 2019. The current period included results from the operations of the recently acquired Schlitterbahn parks. In addition, the three-month period ended March 29, 2020 included two weeks of disrupted operations as a 26-weekresult of the COVID-19 pandemic resulting in 39 lost scheduled operating days, including the closure of Knott's Berry Farm and the Schlitterbahn parks, and the postponed opening of California's Great America, Carowinds and Kings Dominion (the "COVID-19 closure"). Therefore, the fiscal three-month period andended March 29, 2020 included a total of 82790 operating days (including 16 of the 26 scheduled operating days at the Schlitterbahn parks) compared with 25 weeks and 754101 operating days for the fiscal six-month period ended June 24, 2018. The results for these periods are not directly comparable as the current period includes an additional week of operations due to the timing of the fiscal second quarter close. Since many differences in our operating results relate to the additional week in the current period, we have also included a discussion of operating results through July 1, 2018 on a 26-week basis.prior period.
The following table presents key financial information for the sixthree months ended June 30, 2019March 29, 2020 and June 24, 2018:March 31, 2019: | | | | (26 weeks) | | (25 weeks) | | | | | | | | | | | | | | | | Six months ended | | Six months ended | | Increase (Decrease) | | Three months ended | | Increase (Decrease) | | | June 30, 2019 | | June 24, 2018 | | $ | | % | | March 29, 2020 | | March 31, 2019 | | $ | | % | | | (Amounts in thousands, except for per capita spending) | | (Amounts in thousands) | Net revenues | | $ | 503,167 |
| | $ | 435,043 |
| | $ | 68,124 |
| | 15.7 | % | | $ | 53,635 |
| | $ | 66,977 |
| | $ | (13,342 | ) | | (19.9 | )% | Operating costs and expenses | | 414,880 |
| | 379,989 |
| | 34,891 |
| | 9.2 | % | | 137,562 |
| | 137,520 |
| | 42 |
| | — | % | Depreciation and amortization | | 69,493 |
| | 57,740 |
| | 11,753 |
| | 20.4 | % | | 5,088 |
| | 13,589 |
| | (8,501 | ) | | (62.6 | )% | Loss on impairment / retirement of fixed assets, net | | 2,106 |
| | 4,712 |
| | (2,606 | ) | | N/M |
| | 6,767 |
| | 1,424 |
| | 5,343 |
| | N/M |
| Loss on impairment of goodwill and other intangibles | | | 88,181 |
| | — |
| | 88,181 |
| | N/M |
| Gain on sale of investment | | (617 | ) | | — |
| | (617 | ) | | N/M |
| | — |
| | (617 | ) | | 617 |
| | N/M |
| Operating income (loss) | | $ | 17,305 |
| | $ | (7,398 | ) | | $ | 24,703 |
| | N/M |
| | Operating loss | | | $ | (183,963 | ) | | $ | (84,939 | ) | | $ | (99,024 | ) | | (116.6 | )% | N/M - Not meaningful | | | | | | | | | | | | | | | | | Other Data: | | | | | | | | | | | | | | | | | Adjusted EBITDA (1) | | $ | 94,903 |
| | $ | 61,514 |
| | $ | 33,389 |
| | 54.3 | % | | $ | (88,665 | ) | | $ | (68,158 | ) | | $ | (20,507 | ) | | 30.1 | % | Attendance | | 9,675 |
| | 8,655 |
| | 1,020 |
| | 11.8 | % | | In-park per capita spending | | $ | 47.09 |
| | $ | 45.42 |
| | $ | 1.67 |
| | 3.7 | % | | Out-of-park revenues | | $ | 64,105 |
| | $ | 56,177 |
| | $ | 7,928 |
| | 14.1 | % | |
| | (1) | For additional information regarding Adjusted EBITDA, including how we define and use Adjusted EBITDA, as well as a reconciliation to net income (loss),loss, see page 39.36. |
For the sixthree months ended June 30, 2019,March 29, 2020, net revenues increased 15.7%decreased 19.9%, or $68.1$13.3 million, to $503.2$53.6 million, from $435.0$67.0 million for the sixthree months ended June 24, 2018. This reflectsMarch 31, 2019 due to the impact of a 1.0 million-visit increasethe COVID-19 closure. Prior to the COVID-19 closure, Knott's Berry Farm was producing net revenues in excess of the prior year by greater than 15%, reflecting the impact of increases in attendance, and a $1.67 increase in in-park per capita spending. Out-of-parkspending and out-of-park revenues. The Schlitterbahn parks contributed $0.9 million of net revenues increased $7.9 million compared withduring the sixthree months ended June 24, 2018. The increase inMarch 29, 2020. Currency exchange rates had an immaterial impact on net revenues was net of a $4.0 million unfavorable impact of foreign currency exchange related tofor the quarter as our Canadian park.park was not operating during the period.
Operating costs and expenses for the sixthree months ended June 30, 2019 increased 9.2%, or $34.9 million,March 29, 2020 were comparable to $414.9 million from $380.0 million for the sixthree months ended June 24, 2018. The increaseMarch 31, 2019. This was the result of a $6.4$1.3 million increasedecrease in cost of goods sold, a $19.7an $8.2 million increase in operating expenses and an $8.7a $6.9 million decrease in SG&A expense. The decrease in cost of goods sold was due to the decline in sales volume from the COVID-19 closure. The $8.2 million increase in operating expenses was attributable to the inclusion of $6.0 million of operating expenses for the Schlitterbahn parks, as well as a planned increase in full-time head count at a few of our parks. Seasonal wages did not fluctuate materially due to rate increases at Knott's Berry Farm offset by a decrease in labor hours from the COVID-19 closure. The $6.9 million decrease in SG&A expense.expense was attributable to a decline in the anticipated payout of outstanding
performance units and the value of outstanding deferred units, both of which are part of our equity-based compensation plans. The increase in operating costs and expenses was net of a $2.1 million favorable impact ofnot materially impacted by foreign currency exchange related to our Canadian park.rates during the first quarter.
Depreciation and amortization expense for the sixthree months ended June 30, 2019 increased $11.8March 29, 2020 decreased $8.5 million compared with the sixthree months ended June 24, 2018March 31, 2019 due to the prior period change in the estimated useful life of a long-lived asset at Kings Dominion, as well as the additional weekless depreciation expense recognized in the current period. For bothperiod due to the six months ended June 30, 2019 and the six months ended June 24, 2018, theCOVID-19 closure. The loss on impairment / retirement of fixed assets for the three months ended March 29, 2020 was attributable$6.8 million compared with $1.4 million for the three months ended March 31, 2019. The current period included a $2.7 million impairment charge with respect to the retirementsSchlitterbahn parks' long-lived assets triggered by the anticipated impacts of the COVID-19 pandemic (see Note 5), as well as the impairment of two specific assets induring the normal course of business at several of our properties, including the retirement of a specific asset in the secondfirst quarter of 2018.2020. Similarly, the loss on impairment of goodwill and other intangibles for the three months ended March 29, 2020 included a $73.6 million, $6.8 million and $7.9 million impairment of goodwill at the Schlitterbahn parks, goodwill at Dorney Park, and the Schlitterbahn trade name, respectively, triggered by the anticipated impacts of the COVID-19 pandemic (see Note 6). During the first quarter of 2019, a $0.6 million gain on sale of investment was recognized for additional proceeds from the liquidation of a preferred equity investment.
After the items above, the operating incomeloss for the sixthree months ended June 30, 2019March 29, 2020 increased $24.7$99.0 million to $17.3$184.0 million compared with an $84.9 million operating loss of $7.4 million for the sixthree months ended June 24, 2018.March 31, 2019.
Interest expense for the sixthree months ended June 30, 2019March 29, 2020 increased $2.7$6.3 million due to incremental revolving credit facility borrowingsinterest incurred on the 2029 senior notes issued in the current period. We recognized a $1.1 million loss on early debt extinguishment during the first quarter of 2018 in connection with amending our 2017 Credit Agreement, as described in Note 6.June 2019. The net effect of our swaps resulted in a charge to earnings of $17.2$19.8 million for the sixthree months ended June 30, 2019March 29, 2020 compared with a $4.5$6.4 million benefitcharge to earnings for the sixthree months ended June 24, 2018.March 31, 2019. The difference reflectswas attributable to the change in fair market value movements in our swap portfolio offset by
the prior period amortization of amounts in OCI for our de-designated swaps.portfolio. During the current period, we also recognized an $18.1a $34.2 million net benefitcharge to earnings for foreign currency gains and losses compared with a $25.1an $8.7 million net chargebenefit to earnings for the sixthree months ended June 24, 2018.March 31, 2019. Both amounts primarily represent remeasurement of the U.S.-dollar denominated debt recorded at our Canadian entity from the applicable currencyU.S.-dollar to the legal entity's functional currency.
During the sixthree months ended June 30, 2019,March 29, 2020, a benefit for taxes of $5.3$49.0 million was recorded to account for PTP taxes and federal, state, local and foreign income taxes compared with a benefit for taxes of $20.0 million for the three months ended March 31, 2019. The increase in benefit for taxes was attributable to an increase in pretax loss from our taxable subsidiaries, as well as expected benefits from the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), which was signed into law on March 27, 2020. The CARES Act resulted in various changes to the U.S. tax law, including, among other things, allowing net operating losses arising in tax years 2018 through 2020 to be carried back to the preceding five taxable years and removing the limitation that such losses only offset 80% of taxable income. As a result of this change, we expect to recognize two benefits. First, we expect to carryback the 2020 losses incurred by our corporate subsidiaries, which will result in the refund of a portion of federal income taxes paid during the carryback period of approximately $78.9 million. Second, as of March 29, 2020, the annual effective tax rate included a net benefit of $29.0 million from carrying back the projected 2020 losses of the corporate subsidiaries. This tax benefit represents an estimated $45.3 million incremental benefit of tax loss carrybacks for periods when the federal income tax rate was comparablegreater than 21% resulting in an additional tax benefit if such losses are used to offset income at the current 21% corporate income tax rate. The estimated $45.3 million benefit was decreased by $16.3 million for taxes recorded fora projected valuation allowance on foreign tax credits originally utilized during the six months ended June 24, 2018carryback period which would be released as a result of $5.5 million.the loss carryback but which are not expected to be utilized.
After the items above, the net loss for the sixthree months ended June 30, 2019March 29, 2020 totaled $20.4$216.0 million, or $0.36$3.83 per diluted limited partner unit, compared with a net loss of $64.2$83.7 million, or $1.14 per diluted limited partner unit, for the six months ended June 24, 2018.
The results for the six months ended June 30, 2019 included an additional week of operations as compared with the six months ended June 24, 2018 due to the timing of the second quarter close. Comparing both 2019 and 2018 on a 26-week basis, net revenues increased by $10.7 million, or 2%. The increase reflects the impact of a $1.48 increase in in-park per capita spending offset by the impact of a 97,000-visit decrease in attendance on a 26-week basis. The increase in in-park per capita spending was attributable to higher guest spending in food and beverage, and to a lesser extent, admission, extra-charge and merchandise. The decrease in attendance, particularly season pass visitation, was driven by unfavorable weather conditions through early June. Out-of-park revenues increased $1.4 million on a 26-week basis largely due to an increase in online transaction fees charged to customers. Amounts remitted to outside parties under concessionaire arrangements increased $0.6 million on a 26-week basis.
Operating costs and expenses on a comparable 26-week basis increased by $10.7 million, or 3%. The increase was the result of a $1.7 million increase in cost of goods sold, a $3.6 million increase in operating expenses and a $5.4 million increase in SG&A expense for the comparable 26-week periods. Cost of goods sold as a percentage of food, merchandise, and games net revenue was comparable. Operating expenses grew by $3.6 million primarily due to increased labor costs for seasonal, full-time and maintenance labor largely driven by planned wage and rate increases, as well as, incremental operating costs associated with new immersive events. These increases in operating expenses were somewhat offset by a decrease in maintenance expense attributable to the timing of repairs. The seasonal rate increase was partially offset by a decrease in labor hours during the comparable periods. The $5.4 million increase in SG&A expense was primarily attributable to increased legal and consulting fees for our subsequent event acquisition and other current management initiatives, and higher technology related costs. Depreciation and amortization expense on a comparable 26-week basis increased $5.2 million due to the change in the estimated useful life of a long-lived asset at Kings Dominion.
After the 26-week basis fluctuations described above, and the fluctuations of loss on impairment / retirement of fixed assets and gain on sale of investment, which were not materially impacted by the additional week of activity, operating income on a comparable 26-week basis decreased $1.9 million. The fluctuations in interest expense, loss on early debt extinguishment, net effect of swaps, foreign currency (gain) loss, and benefit for taxes on a 26-week basis were not materially impacted by the additional week of activity. After these items, net loss on a comparable 26-week basis decreased $17.3 million from $37.7 million for the six months ended July 1, 2018 to $20.4 million for the six months ended June 30, 2019.
For the six months ended June 30, 2019, Adjusted EBITDA increased $33.4 million to $94.9 million from $61.5 million for the six months ended June 24, 2018. Adjusted EBITDA on a 26-week basis was comparable year-over-year due to increased net revenues attributable to higher in-park per capita spending offset by increased operating costs, particularly related to labor, legal and technology-related costs. Adjusted EBITDA was computed in the same manner for both 26-week periods(3).
| | (3) | Adjusted EBITDA for the six months ended July 1, 2018 was calculated as net loss of $37.7 million plus interest expense of $41.1 million, benefit for taxes of $5.4 million, depreciation and amortization expense of $64.4 million, loss on early debt extinguishment of $1.1 million, net effect of swaps benefit of $4.5 million, non-cash foreign currency loss of $25.1 million, non-cash equity compensation expense of $6.1 million, and loss on impairment / retirement of fixed assets of $4.7 million. |
Three months ended June 30, 2019
The fiscal three-month period ended June 30, 2019 included a total of 726 operating days compared with 662 operating days for the fiscal three-month period ended June 24, 2018. The results for these periods are not directly comparable as the current period includes 64 additional operating days due to the timing of the fiscal second quarter close. Since many differences in our operating results relate to the additional operating days in the current period, we have also included a discussion of operating results through July 1, 2018 on a same-week basis (the 13-week period ended June 30, 2019 compared with the 13-week period ended July 1, 2018).
The following table presents key financial information for the three months ended June 30, 2019 and June 24, 2018:
| | | | | | | | | | | | | | | | | | | (726 operating days) | | (662 operating days) | | | | | | | Three months ended | | Three months ended | | Increase (Decrease) | | | June 30, 2019 | | June 24, 2018 | | $ | | % | | | (Amounts in thousands, except for per capita spending) | Net revenues | | $ | 436,190 |
| | $ | 380,316 |
| | $ | 55,874 |
| | 14.7 | % | Operating costs and expenses | | 277,360 |
| | 256,476 |
| | 20,884 |
| | 8.1 | % | Depreciation and amortization | | 55,904 |
| | 52,219 |
| | 3,685 |
| | 7.1 | % | Loss on impairment / retirement of fixed assets, net | | 682 |
| | 3,372 |
| | (2,690 | ) | | N/M |
| Operating income | | $ | 102,244 |
| | $ | 68,249 |
| | $ | 33,995 |
| | 49.8 | % | N/M - Not meaningful | | | | | | | | | Other Data: | | | | | | | | | Adjusted EBITDA (1) | | $ | 163,061 |
| | $ | 127,036 |
| | $ | 36,025 |
| | 28.4 | % | Attendance | | 8,500 |
| | 7,698 |
| | 802 |
| | 10.4 | % | In-park per capita spending | | $ | 47.22 |
| | $ | 45.40 |
| | $ | 1.82 |
| | 4.0 | % | Out-of-park revenues | | $ | 49,344 |
| | $ | 43,491 |
| | $ | 5,853 |
| | 13.5 | % |
| | (1) | For additional information regarding Adjusted EBITDA, including how we define and use Adjusted EBITDA, as well as a reconciliation to net income (loss), see page 39. |
For the three months ended June 30, 2019, net revenues increased 14.7%, or $55.9 million, to $436.2 million, from $380.3 million for the three months ended June 24, 2018. This reflects the impact of an 0.8 million visit increase in attendance and a $1.82 increase in in-park per capita spending. Out-of-park revenues increased $5.9 million compared with the three months ended June 24, 2018. Currency exchange rates had an immaterial impact on net revenues for the quarter.
Operating costs and expenses for the three months ended June 30, 2019 increased 8.1%, or $20.9 million, to $277.4 million from $256.5 million for the three months ended June 24, 2018. The increase was the result of a $4.8 million increase in cost of goods sold, a $10.4 million increase in operating expenses and a $5.7 million increase in SG&A expense. The increase in operating costs and expenses was not materially impacted by foreign currency exchange rates during the second quarter.
Depreciation and amortization expense for the three months ended June 30, 2019 increased $3.7 million compared with the three months ended June 24, 2018 due to the additional week in the current period. For both the three months ended June 30, 2019 and the three months ended June 24, 2018, the loss on impairment / retirement of fixed assets was attributable to the retirements of assets in the normal course of business at several of our properties, including a specific asset in the second quarter of 2018.
After the items above, operating income for the three months ended June 30, 2019 increased $34.0 million to $102.2 million compared with $68.2 million for the three months ended June 24, 2018.
Interest expense for the three months ended June 30, 2019 increased $1.6 million due to incremental revolving credit facility borrowings in the current period. The net effect of our swaps resulted in a charge to earnings of $10.8 million for the three months ended June 30, 2019 compared with a $0.9 million benefit to earnings for the three months ended June 24, 2018. The difference reflects the change in fair market value movements in our swap portfolio offset by the prior period amortization of amounts in OCI for our de-designated swaps. During the current period, we also recognized a $9.5 million net benefit to earnings for foreign currency gains and losses compared with a $15.0 million net charge to earnings for the three months ended June 24, 2018. Both amounts primarily represent remeasurement of the U.S.-dollar denominated debt recorded at our Canadian entity from the applicable currency to the legal entity's functional currency.
During the three months ended June 30, 2019, a provision for taxes of $14.7 million was recorded to account for PTP taxes and income taxes on our corporate subsidiaries. This was comparable to the provision for taxes recorded for the three months ended June 24, 2018 of $13.7 million.
After the items above, net income for the three months ended June 30, 2019 totaled $63.3 million, or $1.11 per diluted limited partner unit, compared with $19.2 million, or $0.34$1.49 per diluted limited partner unit, for the three months ended June 24, 2018.March 31, 2019.
The results forFor the three months ended June 30, 2019 included 64 additional operating days compared with the three months ended June 24, 2018 dueMarch 29, 2020, Adjusted EBITDA loss increased $20.5 million to the timing of the second quarter close. Comparing both 2019 and 2018 on a same-week basis, net revenues increased by $14.1 million, or 3%. The increase reflects the impact of a $1.81 increase in in-park per capita spending offset by the impact of a 47,000-visit decrease in attendance on a same-week basis. The increase in in-park per capita spending was attributable to higher guest spending in food and beverage, and to a lesser extent, admission, extra-charge and merchandise. The decrease in attendance, particularly season pass visitation, was driven by unfavorable weather conditions through early June. Out-of-park revenues increased $1.7 million on a same-week basis due to an increase in online transaction fees charged to customers. Amounts remitted to outside parties under concessionaire arrangements increased $0.8 million on a same-week basis.
Operating costs and expenses on a comparable same-week basis increased by $7.8 million, or 3%. The increase was the result of a $1.7 million increase in cost of goods sold, a $2.4 million increase in operating expenses and a $3.7 million increase in SG&A expense for the comparable same-week periods. Cost of goods sold as a percentage of food, merchandise, and games net revenue was comparable. Operating expenses grew by $2.4 million primarily due to increased labor costs for seasonal, full-time and maintenance labor largely driven by planned wage and rate increases, as well as, incremental operating costs associated with new immersive events. These increases in operating expenses were somewhat offset by a decrease in maintenance expense attributable to the timing of repairs. The seasonal rate increase was partially offset by a decrease in labor hours during the comparable periods. The $3.7 million increase in SG&A expense was primarily attributable to increased legal and consulting fees for our subsequent event acquisition and higher technology-related costs. Depreciation and amortization expense on a comparable same-week basis decreased $1.5 million.
After the same-week basis fluctuations described above, and the loss on impairment / retirement of fixed assets fluctuation, which was not materially impacted by the additional week of activity, operating income on a comparable same-week basis increased $10.5 million. The fluctuations in interest expense, net effect of swaps, foreign currency (gain) loss, and provision for taxes on a same-week basis were not materially impacted by the additional week of activity. After these items, net income on a comparable same-week basis increased $21.2$88.7 million from $42.1$68.2 million for the three months ended July 1, 2018 to $63.3 million for the three months ended June 30,March 31, 2019.
For the three months ended June 30, 2019, The increase in Adjusted EBITDA increased $36.0 million to $163.1 million from $127.0 million for the three months ended June 24, 2018. Adjusted EBITDA on a comparable same-week basis increased $7.4 million, or 5%,loss was due to increaseddecreased net revenues attributable to higher in-park per capita spending somewhat offset by increased operating costs, particularly related to labor, legal and technology-related costs. Adjusted EBITDA was computed in the same manner for both same-week periods(3).
| | (3) | Adjusted EBITDA for the three months ended July 1, 2018 was calculated as net income of $42.1 million plus interest expense of $21.3 million, provision for taxes of $13.7 million, depreciation and amortization expense of $57.4 million, net effect of swaps benefit of $0.9 million, non-cash foreign currency loss of $15.7 million, non-cash equity compensation expense of $3.2 million, and loss on impairment / retirement of fixed assets of $3.2 million. |
Seven Month Results
These preliminary results include results from the Schlitterbahn parks which we acquired on July 1, 2019 (see Note 15). Net revenues for the seven months ended August 4, 2019 were approximately $877 million. Attendance totaled 16.5 million guests, in-park per capita spending was $48.59 and out-of-park revenues totaled $104 million.
On a same-park basis (excluding results from the Schlitterbahn parks), net revenues for the seven months ended August 4, 2019 were approximately $850 million, up $31 million, or 4%, compared with the seven months ended August 5, 2018. The increase reflects the impact of a 1%, or 213,000- visit, increase in attendance, a 3% increase in in-park per capita spending and a 4%, or $4 million, increase in out-of-park revenues compared with the prior period.COVID-19 closure.
Liquidity and Capital Resources: The working capital ratio (current assets divided by current liabilities) was 1.40.5 as of June 30, 2019March 29, 2020 and 0.6 as of June 24, 2018. There was a $264.6 million increaseMarch 31, 2019. As of March 29, 2020, our working capital accounts were at normal seasonal levels, in cashparticular receivables for our installment purchase plans, inventories and cash equivalentsdeferred revenue for season-long products. For purposes of preparing our financial statements, as of June 30, 2019 compared with the balance asMarch 29, 2020, we estimated that some or all of June 24, 2018our parks may remain closed throughout 2020 due to the net cash proceedsimposition of external operating restrictions or due to the time it may take to implement additional hygiene protocols and prepare our parks for operation. As a result, we estimated that the following working capital amounts would be realized greater than 12 months from the 2029 senior notes issuance. This cash was usedbalance sheet date and have been classified as non-current as of March 29, 2020. These amounts represent our best estimate and include material assumptions, including the time frame to completereopen our subsequent event acquisition on July 1, 2019 (see Note 15).parks, which may differ materially as the COVID-19 pandemic and the related actions taken to contain its spread progress. | | | | | | | (In thousands) | Balance Sheet Location | | March 29, 2020 | Receivables | Other Assets | | $ | 23,968 |
| Inventories | Other Assets | | 39,364 |
| Prepaid advertising and other current assets | Other Assets | | 5,177 |
| | | | $ | 68,509 |
| | | | | Deferred revenue | Non-Current Deferred Revenue | | $ | 154,946 |
|
Operating Activities During the six-monththree-month period ended June 30, 2019,March 29, 2020, net cash fromfor operating activities was $98.7$105.1 million, an increase of $12.9$48.4 million compared with the same period a year ago. The increase was largely attributable to lower earnings as a result of the additional week of operationsCOVID-19 closure and an increase in the current period duecash payments for interest attributable to the timing of the fiscal second quarter close.2029 senior notes issued in June 2019. Investing Activities Net cash for investing activities for the first sixthree months of 20192020 was $262.2$58.0 million, an increase of $161.6$5.3 million compared with the same period in the prior year, due to the timing of cash spent on capital expenditures. As mentioned above, due to the impact of the COVID-19 pandemic, we have taken proactive steps to reduce our capital spending for calendar year 2020, including the suspension of at least $75-100 million of non-essential capital projects planned for the 2020 and 2021 operating seasons. As of the date of this Form 10-Q, we anticipate spending $85-100 million on capital improvements in calendar year 2020. Financing Activities Net cash from financing activities for the first three months of 2020 was $10.6 million, a decrease of $51.5 million compared with the same period in the prior year. The increasedecrease was largelyprimarily attributable to the purchase of the land at California's Great America from the City of Santa Clara for $150.3 million (see Note 11). Financing Activities
Net cash from financing activities forless borrowings on our revolving credit facility during the first six monthsquarter of 2019 was $380.0 million, an increase of $467.9 million compared with net cash for financing activities during the same period in the prior year. The increase was primarily due to the net cash proceeds from the 2029 senior notes issuance (see Note 6).2020.
As of June 30, 2019,March 29, 2020, our outstanding debt, before reduction for debt issuance costs and original issue discount, consisted of the following:
$733729 million of senior secured term debt, maturing in April 2024 under our Amended 2017 Credit Agreement. The term debt bears interest at the London InterBank Offering Rate ("LIBOR") plus 175 basis points (bps), under amendments we entered into on March 14, 2018. The pricing terms for the 2018 amendment reflected $0.9 million of Original Issue Discount ("OID"). The term loan iswas payable $7.5 million annually. We havehad $7.5 million of current maturities as of June 30, 2019.March 29, 2020.
$450 million of 5.375% senior unsecured notes, maturing in June 2024, issued at par. The notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. The notes pay interest semi-annually in June and December.
$500 million of 5.375% senior unsecured notes, maturing in April 2027, issued at par. Prior to April 15, 2020, up to 35% of the notes may be redeemed with net cash proceeds of certain equity offerings at a price equal to 105.375% of the principal amount thereof, together with accrued and unpaid interest and additional interest, if any. The notes may be redeemed, in whole or in part, at any time prior to April 15, 2022 at a price equal to 100% of the principal amount of the notes redeemed plus a "make-whole" premium, together with accrued and unpaid interest and additional interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. The notes pay interest semi-annually in April and October.
$500 million of 5.250% senior unsecured notes, maturing in July 2029, issued at par. Prior to July 15, 2022, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at a price equal to 105.250% of the principal amount thereof, together with accrued and unpaid interest and additional interest, if any. The notes may be redeemed, in whole or in part, at any time prior to July 15, 2024 at a price equal to 100% of the principal amount of the notes redeemed plus a "make-whole" premium together with accrued and unpaid interest and additional interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. The notes pay interest semi-annually in January and July.
No
$70.0 million of borrowings under the $275 million senior secured revolving credit facility under our Amended 2017 Credit Agreement with a Canadian sub-limit of $15 million. BorrowingsAs of March 29, 2020, borrowings under the senior secured revolving credit facility bearbore interest at LIBOR or Canadian Dollar Offered Rate ("CDOR") plus 200 bps. The revolving credit facility is scheduled to mature in April 2022 and also provides for the issuance of documentary and standby letters of credit. The Amended 2017 Credit Agreement requires the payment of a 37.5 bps commitment fee per annum on the unused portion of the credit facilities. After letters of credit, which totaled $15.4$15.3 million as of June 30, 2019,March 29, 2020, we had $259.6$189.7 million of available borrowings under the revolving credit facility and cash on hand of $324.7$26.3 million.
On April 27, 2020, we issued $1.0 billion of 5.500% senior secured notes due 2025 and further amended the Amended 2017 Credit Agreement in response to the COVID-19 pandemic. The Second Amended 2017 Credit Agreement increased the revolving credit facility capacity to $375.0 million with a Canadian sub-limit of $15.0 million, and increased the interest rate on the revolving credit facility to LIBOR plus 300 bps or CDOR plus 200 bps, among other things. We used a portion of the proceeds from the 2025 senior notes offering to repay $463.3 million of our outstanding senior secured term loan facility and will use the remaining proceeds for general corporate and working capital purposes. Following the April 2020 financing events and prepayment of our senior secured term loan facility, we had $264.3 million of senior secured term debt outstanding under the Second Amended 2017 Credit Agreement as of April 27, 2020. See the Subsequent Event footnote at Note 15 for further details.
As of June 30, 2019,March 29, 2020, we have eight interest rate swap agreements that convert $500 million of variable-rate debt to a fixed rate. Four of these agreements fix ourthat variable-rate debt at 4.39% and mature on December 31, 2020. The other four fix ourthe same notional amount of variable-rate debt at 4.63% for the period December 31, 2020 through December 31, 2023. None of our interest rate swap agreements were designated as cash flow hedges in the periods presented. As of June 30, 2019,March 29, 2020, $8.7 million of the fair market value of our derivativesswap portfolio was a liability of $23.9classified as current and recorded in "Other accrued liabilities", and $34.3 million was classified as long-term and recorded in "Derivative Liability" within the unaudited condensed consolidated balance sheet.
TheAs of March 29, 2020, the Amended 2017 Credit Agreement includesincluded a Consolidated Leverage Ratio, which if breached for any reason and not cured could result in an event of default. The ratio iswas set at a maximum of 5.50x Consolidated Total Debt-to-Consolidated EBITDA. As of June 30, 2019,March 29, 2020, we were in compliance with this financial condition covenant and all other financial covenants under the Amended 2017 Credit Agreement.
Our long-term debt agreements include Restricted Payment provisions.provisions which limit our ability to pay partnership distributions. Pursuant to the terms of the indenture governing our 2024 senior notes, which includesincluded the most restrictive of these Restricted Payments provisions as of March 29, 2020, if our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio was greater than 5.00x, we cancould still make Restricted Payments of $60 million annually so long as no default or event of default hashad occurred and is continuing; and we can make additional Restricted Payments ifwas continuing. If our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio iswas less than or equal to 5.00x.5.00x, we could make Restricted Payments up to our Restricted Payment pool. Our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio was less than or equal to 5.00x as of March 29, 2020.
The Second Amendment to the Amended 2017 Credit Agreement in April 2020 suspended the Consolidated Leverage Ratio test after the first quarter of 2020, added a Senior Secured Leverage Ratio test to replace the Consolidated Leverage Ratio test starting with the first quarter of 2021, added a minimum liquidity level requirement until the earlier of December 31, 2021 or the termination of the Additional Restrictions Period, and suspended the ability to make certain restricted payments, including partnership distributions, until the earlier of the delivery of the compliance certificate for the fourth quarter of 2021 or the termination of the Additional Restrictions Period. See the Subsequent Event footnote at Note 15 for further details.
In accordance with the Amended 2017 Credit Agreement debt provisions, on May 8, 2019,February 19, 2020, we announced the declaration of a distribution of $0.925$0.935 per limited partner unit, which was paid on JuneMarch 17, 2019. Also,2020. The Board of Directors has determined that it is in the best interests of unitholders for us to preserve liquidity by suspending the quarterly distribution until operating visibility improves due to the COVID-19 pandemic. The Board is committed to reinstituting a quarterly distribution when it is appropriate to do so and it is permissible under the Second Amended 2017 Credit Agreement and our other debt covenants.
Based on August 7, 2019,the cost-cutting and cash-savings measures taken to date, we announcedanticipate our average cash burn rate going forward, including operating expenses while our parks remain closed, capital expenditures and debt facility costs, after consideration for the declaration of a distribution of $0.925 per limited partner unit, whichrecently completed April 2020 refinancing events, will be payable on September 17, 2019.
Existing credit facilities and cash flows from operations are expected to be sufficient to meet working capital needs, debt service, partnership distributions and planned capital expenditures for the foreseeable future.approximately $30-40 million per month.
Off Balance Sheet Arrangements: We had $15.4$15.3 million in letters of credit, which are primarily in place to backstop insurance arrangements, outstanding on our revolving credit facility as of June 30, 2019.March 29, 2020. We have no other significant off-balance sheet financing arrangements.
Forward Looking Statements Some of the statements contained in this report (including the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section) that are not historical in nature are 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 our expectations, beliefs 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 we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors, including those listed under Item 1Athe impacts of the COVID-19 pandemic, general economic conditions, adverse weather conditions, competition for consumer leisure time and spending, unanticipated construction delays, changes in our capital investment plans and projects and other factors we discuss from time to time in our reports filed with the Company’s Annual Report on Form 10-K,Securities and Exchange Commission (the "SEC") could adversely affect attendance at our future financial performanceparks and could cause actual results to differ materially from our expectations.expectations or otherwise to fluctuate or decrease. Additional information on risk factors that may affect our business and financial results can be found in our Annual Report on Form 10-K and in the filings we make from time to time with the SEC, including this Form 10-Q. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the filing date of this document.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are exposed to market risks from fluctuations in interest rates, and to a lesser extent on currency exchange rates on our operations in Canada, and from time to time, on imported rides and equipment. The objective of our financial risk management is to reduce the potential negative impact of interest rate and foreign currency exchange rate fluctuations to acceptable levels. We do not acquire market risk sensitive instruments for trading purposes.
We manage interest rate risk through the use of a combination of fixed-rate long-term debt, interest rate swaps that fix a portion of our variable-rate long-term debt, and variable-rate borrowings under our revolving credit facility. Translation exposures with regard to our Canadian operations are not hedged.
None of our interest rate swap agreements are designated as hedging instruments. Changes in fair value of derivative instruments that do not qualify for hedge accounting or were de-designated are reported as "Net effect of swaps" in the unaudited condensed consolidated statements of operations and comprehensive income. Additionally, the "Other comprehensive income (loss)" related to interest rate swaps that have been de-designated was amortized through the original maturity of the interest rate swap and reported as a component of "Net effect of swaps" in the unaudited condensed consolidated statements of operations and comprehensive income.
As of June 30, 2019,March 29, 2020, on an adjusted basis after giving affecteffect to the impact of interest rate swap agreements and before reduction for debt issuance costs and original issue discount, $1,950 million$1.95 billion of our outstanding long-term debt represented fixed-rate debt and $233$229.4 million represented variable-rate debt.debt before revolving credit borrowings. Assuming an average balance on our revolving credit borrowings of approximately $34.7$33.7 million, a hypothetical 100 bps increase in 30-day LIBOR on our variable-rate debt (not considering the impact of our interest rate swaps) would lead to an increase of approximately $7.7$7.6 million in annual cash interest costs.
Assuming a hypothetical 100 bps increase in 30-day LIBOR, the amount of net cash interest paid on our derivative portfolio would decrease by $5.0 million over the next twelve months.
A uniform 10% strengthening of the U.S. dollar relative to the Canadian dollar would result in a $3.0$3.9 million decrease in annual operating income.
ITEM 4. CONTROLS AND PROCEDURES
(a)Evaluation of Disclosure Controls and Procedures - We maintain a system of controls and procedures designed to ensure that information required to be disclosed by us in our reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Commission and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. As of June 30, 2019,March 29, 2020, management, with the participation of the Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2019.March 29, 2020.
(b)Changes in Internal Control Over Financial Reporting - There were no changes in our internal control over financial reporting that occurred during the fiscal quarter ended June 30, 2019March 29, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. In response to the COVID-19 pandemic, many of our employees began working from home during the fiscal quarter ended March 29, 2020. We are monitoring and assessing the changing business environment resulting from the COVID-19 pandemic and the related effect on our internal control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1A. RISK FACTORS ThereExcept as set forth below, there have been no material changes tofrom the risk factors previously disclosed in the Partnership'sour Annual Report on Form 10-K for the year ended December 31, 2018.2019.
The spread of the novel coronavirus, or COVID-19, intensifies certain risks we face, including those discussed in our Form 10-K, has adversely impacted our business and is expected to continue to adversely impact our business. The ultimate extent to which COVID-19 and measures taken in response will impact our business, including our results of operations and financial condition, cannot be predicted due to the ongoing development and fluidity of the COVID-19 situation and its effects. On March 13, 2020, we announced the closure of certain parks and the decision to delay the opening of other parks in response to the federal and local recommendations and restrictions to mitigate the spread of COVID-19. Because our parks are our primary sources of net income and operating cash flows, our business and financial results and condition have been, and will continue to be, adversely impacted by these closures, delayed openings and other actions taken to contain or reduce the spread of COVID-19. In addition, we are likely to experience other negative impacts to our business, results of operations and financial condition as a result of COVID-19 that may include: changes in consumer behavior and preferences causing significant volatility or reductions in demand for or interest in our parks, damage to our brand and reputation, increases in operating expenses as we sanitize our parks and implement additional hygiene-related protocols, limitations on our ability to recruit and train employees in sufficient numbers to fully staff our parks, limitations on our employees' ability to work and travel, and significant changes in the economic or political conditions in areas in which we operate. Despite our efforts to manage these impacts, their ultimate effect may be material, and will depend on factors beyond our knowledge or control, including the duration and severity of any such outbreak and actions taken to contain the pandemic spread and mitigate public health effects.
A prolonged closure of our parks and resort properties could materially impact our results, operations and financial condition, which would negatively impact our ability to remain in compliance with our debt covenants. Our parks are the primary sources of net income and operating cash flows which we rely upon to remain in compliance with debt covenants under our senior secured credit agreement and under our senior notes due in 2024, 2025, 2027 and 2029 and to meet our obligations when due. As noted above, due to the COVID-19 pandemic, operations at our parks and resort properties have been temporarily closed and there is uncertainty as to when we will be able to reopen them. Because we operate in several different jurisdictions, we may be able to reopen some, but not all, of our parks within a certain time frame. Although we believe we have sufficient resources to fund our temporarily idled operations for a period of time that lasts beyond the currently mandated closure periods, we have no control over and cannot predict the length of the closure of our parks due to the pandemic. If we are unable to generate revenues from our parks due to a prolonged period of closure or experience significant declines in business volumes upon reopening, this would negatively impact our ability to remain in compliance with our debt covenants and meet our payment obligations.
Our debt agreements contain restrictions that could limit our flexibility in operating our business. Our credit agreement and the indentures governing our notes contain, and any future indebtedness of ours will likely contain, a number of covenants that could impose significant operating and financial restrictions on us, including restrictions on our and our subsidiaries' ability to, among other things: pay distributions on or make distributions in respect of our capital stock or units or make other Restricted Payments; incur additional debt or issue certain preferred equity; make certain investments; sell certain assets; create restrictions on distributions from restricted subsidiaries; create liens on certain assets to secure debt; consolidate, merge, amalgamate, sell or otherwise dispose of all or substantially all our assets; enter into certain transactions with our affiliates; and designate our subsidiaries as unrestricted subsidiaries.
As of March 29, 2020, the Amended 2017 Credit Agreement included a Consolidated Leverage Ratio, which if breached for any reason and not cured could result in an event of default, and which was set at a maximum of 5.50x Consolidated Total Debt-to-Consolidated EBITDA. The Second Amendment to the Amended 2017 Credit Agreement suspended the Consolidated Leverage Ratio test after the first quarter of 2020, added a Senior Secured Leverage Ratio test to replace the Consolidated Leverage Ratio test starting with the first quarter of 2021 and added a minimum liquidity level requirement through 2021 or the earlier termination of an additional restrictions period.
Our long-term debt agreements include Restricted Payment provisions which limit our ability to pay partnership distributions. Pursuant to the terms of the indenture governing our 2024 senior notes, which included the most restrictive of these Restricted Payments provisions as of March 29, 2020, if our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio was greater than
5.00x, we could still make Restricted Payments of $60 million annually so long as no default or event of default has occurred and was continuing. If our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio was less than or equal to 5.00x, we could make Restricted Payments up to our Restricted Payment pool. Our Second Amendment to the Amended 2017 Credit Agreement suspended our ability to make certain restricted payments, including partnership distributions, until the earlier of the delivery of the compliance certificate for the fourth quarter of 2021 or the termination of an additional restrictions period. ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Issuer Purchases of Equity Securities: The following table summarizes repurchases of Cedar Fair, L.P. Depositary Units representing limited partner interests by the Partnership during the three months ended June 30, 2019:March 29, 2020: | | | | | | | | | | | | | | | | | | (a) | | (b) | | (c) | | (d) |
Period | | Total Number of Units Purchased (1) | | Average Price Paid per Unit | | Total Number of Units Purchased as Part of Publicly Announced Plans or Programs | | Maximum Number (or Approximate Dollar Value) of Units that May Yet Be Purchased Under the Plans or Programs | April 1 - April 30 | | — |
| | — |
| | — |
| | $ | — |
| May 1 - May 31 | | 93 |
| | $ | 50.69 |
| | — |
| | — |
| June 1 - June 30 | | — |
| | — |
| | — |
| | — |
| Total | | 93 |
| | $ | 50.69 |
| | — |
| | $ | — |
|
| | | | | | | | | | | | | | | | | | (a) | | (b) | | (c) | | (d) |
Period | | Total Number of Units Purchased (1) | | Average Price Paid per Unit | | Total Number of Units Purchased as Part of Publicly Announced Plans or Programs | | Maximum Number (or Approximate Dollar Value) of Units that May Yet Be Purchased Under the Plans or Programs | January 1 - January 31 | | — |
| | — |
| | — |
| | $ | — |
| February 1 - February 29 | | 47,902 |
| | $ | 52.76 |
| | — |
| | — |
| March 1 - March 29 | | — |
| | — |
| | — |
| | — |
| Total | | 47,902 |
| | $ | 52.76 |
| | — |
| | $ | — |
|
| | (1) | All repurchased units were reacquired by the Partnership in satisfaction of tax obligations related to the vesting of restricted units which were granted under the Partnership's Omnibus Incentive Plan. |
ITEM 5. OTHER INFORMATION
Amendment to the Sixth Amended and Restated Agreement of Limited Partnership of Cedar Fair, L.P., as amended
On August 2, 2019, Cedar Fair Management, Inc., the general partner of the Partnership, entered into the Second Amendment (the "Amendment") to its Sixth Amended and Restated Agreement of Limited Partnership, as amended (the "Partnership Agreement"), in response to changes to the Internal Revenue Code of 1986, as amended, enacted by the Bipartisan Budget Act of 2015 relating to partnership audit and adjustment procedures.
The foregoing description of the Amendment does not purport to be complete and is qualified by the text of the Amendment. A complete copy of the Partnership's Partnership Agreement, including the text of the Amendment, is filed as Exhibit 3.1 to this Quarterly Report on Form 10-Q.
ITEM 6. EXHIBITS | | | | | | Asset Purchase Agreement by and among Millennium Operations LLC, Waterpark Management, Inc., Golden Seal Investments, Inc., Bad-Schloss, Inc., Liberty Partnership, Ltd., Henry Condo 1, Ltd., Henry-Walnut, Ltd., SVV I, LLC, KC Waterpark Management, LLC, Galveston Island Water Park, LP, Galveston Waterpark Management, Inc., Schlitterbahn Seller Rep, LLC, and Gary Henry and Jana Faber, dated as of June 12, 2019. | | | | | | Sixth Amended and Restated Agreement of Limited Partnership of Cedar Fair, L.P., as amended by that First Amendment, to Sixth Amended and Restated Agreement of Limited Partnership of Cedar Fair, L.P., dated June 1, 2017, and that Second Amendment, to Sixth Amended and Restated Agreement of Limited Partnership of Cedar Fair, L.P., dated August 2, 2019.2019, and that Third Amendment, dated April 1, 2020. | | | | | | | | Indenture, dated as of JuneApril 27, 2019,2020, by and among Cedar Fair, L.P., Canada's Wonderland Company, Magnum Management Corporation and Millennium Operations LLC, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee and notes US collateral agent and BNY Trust Company of Canada, as notes Canadian collateral agent (including Form of 5.250%5.500% Senior NotesSecured Note due 2029)2025). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K (File No. 001-09444) filed on June 27, 2019.April 29, 2020. | | | | | | Registration RightsAmendment No. 2, dated April 27, 2020, to the Amended and Restated Credit Agreement, dated June 27, 2019, by andApril 13, 2017, among Cedar Fair, L.P., Magnum Management Corporation, Canada's Wonderland Company Magnum Management Corporation and Millennium Operations LLC, as issuers,borrowers, the guarantors named thereinlenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent and J.P. Morgan Securities LLC, on behalf of itselfcollateral agent and as representative of the initial purchasers named therein.other parties thereto. Incorporated herein by reference to Exhibit 4.310.1 to the Registrant's Form 8-K (File No. 001-09444) filed on June 27, 2019.April 29, 2020. | | | | | | | | | | | | | | | | | | | Exhibit (101) | | The following materials from the Partnership's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019March 29, 2020 formatted in Inline XBRL: (i) the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income, (ii) the Unaudited Condensed Consolidated Balance Sheets, (iii) the Unaudited Condensed Consolidated Statements of Cash Flow, (iv) the Unaudited Condensed Consolidated StatementStatements of Equity, and (v) related notes.notes, tagged as blocks of text and including detailed tags. | | | | Exhibit (104) | | The cover page from the Partnership's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019,March 29, 2020 formatted in Inline XBRL.XBRL (included as Exhibit 101). |
| | * | Exhibits and schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. Cedar Fair hereby undertakes to furnish supplemental copies of any of the omitted exhibits and schedules upon request by the SEC; provided, however, that Cedar Fair may request confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934 for any exhibits or schedules so furnished. A list identifying the contents of all omitted exhibits and schedules can be found in Exhibit 2.1. |
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. | | | | | | | CEDAR FAIR, L.P. | | | | (Registrant) | | | | | | | | By Cedar Fair Management, Inc. | | | General Partner | | | | | Date: | August 7, 2019May 6, 2020 | /s/ Richard A. Zimmerman | | | Richard A. Zimmerman | | | President and Chief Executive Officer | | | | | Date: | August 7, 2019May 6, 2020 | /s/ Brian C. Witherow | | | Brian C. Witherow | | | Executive Vice President and | | | Chief Financial Officer |
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