Great Wolf Reports 2006 Q4 and Full Year Results
FEBRUARY 28, 2007. Great Wolf Resorts, Inc. (NASDAQ:WOLF) , North America's leading family of indoor waterpark resorts, today reported results for the quarter and year ended December 31, 2006.
Fourth Quarter 2006 Highlights
o Reported Adjusted EBITDA of $8.5 million, achieving the high end of earnings guidance range, which was upwardly revised on February 9, 2007, resulting in full year 2006 Adjusted EBITDA of $38.0 million.
o Generated total revenues of $34.2 million, Adjusted net income of $0.1 million, and Adjusted net income per share of $0.00.
o Increased same store RevPAR by 8.0 percent and same store Total RevPAR by 6.2 percent compared to the 2005 fourth quarter.
o Opened the 401-suite Great Wolf Lodge(R) resort adjacent to Kings Island in Mason, Ohio.
o Broke ground on construction of a 394-suite Great Wolf Lodge resort in Grand Mound, Wash.
o Closed on a $97 million, 10-year, 6.1 percent fixed rate loan secured by the Pocono Mountains resort.
In the 2006 fourth quarter, Great Wolf Resorts reported a net loss of $(49.0) million, or $(1.61) per diluted share, compared to a net loss of $(26.4) million, or $(0.88) per diluted share in the 2005 fourth quarter. Fourth quarter 2006 operating results include the impact of a previously announced pre-tax, non-cash $51.0 million goodwill impairment charge and the related effect on income taxes of the non-deductibility of a majority of the goodwill impairment charge for income tax purposes.
Operating Results
"We had a strong fourth quarter, completing an excellent year for Great Wolf Resorts," said John Emery, chief executive officer. "Our fourth quarter includes several notable seasonal events at our properties, including Howl-O-Ween and our month-long Snowland celebration. We were pleased with the consumer awareness and recognition these types of events continue to bring to our resorts. These events help us to build year-round awareness and generate significant demand for our properties as we continue to strengthen our national footprint of resorts."
The company reported Adjusted EBITDA of $8.5 million and Adjusted net income per share of $0.00. Fourth quarter same store revenue per available room (RevPAR) grew 8.0 percent, and RevPAR for all properties that were open at any point during the fourth quarter of 2006 rose 9.6 percent compared to the prior year's fourth quarter.
"As we expand into new markets like Niagara Falls and Mason, Ohio, we believe we continue to build brand awareness that further separates us from local competition," Emery noted. "Overall, our properties continued to perform well in the fourth quarter. Leisure demand has been stable in our Midwest properties and strong in our Eastern markets. We are focused on continuing to grow our group business, as evidenced by our plans to expand the meeting space facilities at several of our resorts."
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