Cedar’s cash burn still a concern

Article Excerpt

CEDAR FAIR L.P. $25 is still a hold. The partnership (New York symbol FUN; Income Portfolio, Consumer sector; Units outstanding: 56.7 million; Market cap: $1.4 billion; Price-to-sales ratio: 1.4; Dividend suspended in June 2020; TSINetwork Rating: Average; www.cedarfair.com) owns 11 amusement parks and four water parks. It also operates hotels (2,300 rooms) and 600 luxury RV sites. Due to COVID-19, just six of the Cedar Fair’s parks remained open during the third quarter of 2020. As a result, investors should now expect the partnership to report revenue of between $85 million and $90 million for the quarter—down from $715 million a year earlier. Cedar Fair is also burning through cash at a rate of $30 million a month; it ended the quarter with cash of $215 million. However, it has enough liquidity to meet its cash obligations through the end of 2021. Cedar Fair is a hold. hold…

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