Great Wolf Resorts, Inc. (NASDAQ: WOLF), North America’s leading family
of indoor waterpark resorts, today announced that the Company has filed
its Annual Report on Form 10-K for the year ended December 31, 2009. In
its Form 10-K for 2009, the Company reported a net loss for 2009 of
$(58.5) million, or $(1.90) per diluted share. In its press release on
February 24, 2010, the Company previously had reported a net loss for
2009 of $(53.2) million, or $(1.73) per diluted share. Also, in its Form
10-K for 2009, the Company reported a net loss of $(10.2) million, or
$(0.33) per diluted share, for the three months ended December 31, 2009,
as compared to a net loss of $(11.7) million, or $(0.38) per diluted
share, in its press release on February 24, 2010.
The Company’s final financial results presented in the Form 10-K filing
differ from the financial results presented in the Company’s press
release dated February 24, 2010 due solely to adjustments in the
computation of the valuation allowance on certain deferred tax assets
recorded as of December 31, 2009. The change in the reported results for
2009 has no impact on the Company’s revenues, Adjusted EBITDA or
operating statistics (such as RevPAR, ADR or RevPOR) for any current or
previously reported fiscal period or on its liquidity or cash measures
for any fiscal period.
Non-GAAP Financial Measure
This press release mentions Adjusted EBITDA, which is a "non-GAAP
financial measure” (a measure of the Company’s historical or future
performance that is different from measures calculated and presented in
accordance with GAAP, within the meaning of applicable SEC rules) that
the Company believes is useful to investors. The Company defines
Adjusted EBITDA as net income (loss) plus (a) interest expense, net, (b)
income taxes, (c) depreciation and amortization, (d) non-cash employee
and director compensation, (e) costs associated with early
extinguishment of debt or postponement of capital markets offerings, (f)
opening costs of resorts under development, (g) equity in earnings
(loss) of unconsolidated related parties, (h) gain or loss on
disposition of property or investments, (i) separation payments to
senior executives, (j) environmental liability costs, (k) asset
impairment charges, (l) other unusual or non-recurring items, and (m)
non-controlling interests. Adjusted EBITDA as calculated by the Company
is not necessarily comparable to similarly titled measures by other
companies. In addition, Adjusted EBITDA (a) does not represent net
income or cash flows from operations as defined by GAAP, (b) is not
necessarily indicative of cash available to fund the Company’s cash flow
needs, and (c) should not be considered as an alternative to net income,
operating income, cash flows from operating activities or the Company’s
other financial information as determined under GAAP.
Management believes Adjusted EBITDA is useful to an investor in
evaluating the Company’s operating performance because a significant
portion of its assets consists of property and equipment that are
depreciated over their remaining useful lives in accordance with GAAP.
Because depreciation and amortization are non-cash items, management
believes that presentation of Adjusted EBITDA is a useful measure of the
Company’s operating performance. Also, management believes measures such
as Adjusted EBITDA are widely used in the hospitality and entertainment
industries to measure operating performance.
Therefore, the Company presents Adjusted EBITDA because it may help
investors to compare the Company’s ongoing performance before the effect
of various items that do not directly affect the Company’s ongoing
operating performance.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act of 1934, as amended, and are subject to the safe
harbor created by the Private Securities Litigation Act of 1995. All
statements, other than statements of historical facts, including, among
others, statements regarding the Company’s future financial position,
business strategy, projected levels of growth, projected costs and
projected performance and financing needs, are forward-looking
statements. Those statements include statements regarding the intent,
belief or current expectations of Great Wolf Resorts, Inc. and members
of its management team, as well as the assumptions on which such
statements are based, and generally are identified by the use of words
such as "may,” "might,” "will,” "could,” "plan,” "objective,” "predict,”
"project,” "potential,” "continue,” "ongoing,” "seeks,” "anticipates,”
"believes,” "estimates,” "expects,” "plans,” "intends,” "should” or
similar expressions. Forward-looking statements are not guarantees of
future performance and involve risks and uncertainties that actual
results may differ materially from those contemplated by such
forward-looking statements. Many of these factors are beyond the
Company's ability to control or predict. Such factors include, but are
not limited to, competition in the Company’s markets, changes in family
vacation patterns and consumer spending habits, regional or national
economic downturns, the Company’s ability to attract a significant
number of guests from its target markets, economic conditions in its
target markets, the impact of fuel costs and other operating costs, the
Company’s ability to develop new resorts in desirable markets or further
develop existing resorts on a timely and cost efficient basis, the
Company's ability to manage growth, including the expansion of the
Company’s infrastructure and systems necessary to support growth, the
Company’s ability to manage cash and obtain additional cash required for
growth, the general tightening in the U.S. lending markets, potential
accidents or injuries at its resorts, decreases in travel due to
pandemic or other widespread illness, its ability to achieve or sustain
profitability, downturns in its industry segment and extreme weather
conditions, increases in operating costs and other expense items and
costs, uninsured losses or losses in excess of the Company's insurance
coverage, the Company's ability to protect its intellectual property,
trade secrets and the value of its brands, current and possible future
legal restrictions and requirements. A further description of these
risks, uncertainties and other matters can be found in the Company’s
annual report and other reports filed from time to time with the
Securities and Exchange Commission, including but not limited to the
Company’s Annual Report on Form 10-K for the year ended December 31,
2009. Great Wolf Resorts cautions that the foregoing list of important
factors is not complete and assumes no obligation to update any
forward-looking statement that it may make.
Management believes these forward-looking statements are reasonable;
however, undue reliance should not be placed on any forward-looking
statements, which are based on current expectations. All written and
oral forward-looking statements attributable to the Company or persons
acting on its behalf are qualified in their entirety by these cautionary
statements. Further, forward-looking statements speak only as of the
date they are made, and the Company undertakes no obligation to update
or revise forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating
results over time unless otherwise required by law.
About Great Wolf Resorts, Inc.
Great Wolf Resorts, Inc.® (NASDAQ: WOLF), Madison, Wis., is
North America’s largest family of indoor waterpark resorts, and, through
its subsidiaries and affiliates, owns, licenses and/or operates its
family resorts under the Great Wolf Lodge® and Blue Harbor
Resort™ brands. Great Wolf Resorts is a fully integrated
resort company with Great Wolf Lodge locations in: Wisconsin Dells,
Wis.; Sandusky, Ohio; Traverse City, Mich.; Kansas City, Kan.;
Williamsburg, Va.; the Pocono Mountains, Pa.; Niagara Falls, Ontario;
Mason, Ohio; Grapevine, Texas; Grand Mound, Wash.; and Concord, N.C.;
and Blue Harbor Resort & Conference Center in Sheboygan, Wis. Through
Great Wolf Resorts’ environmental sustainability program, Project Green
Wolf™, the Company is the first and only national hotel chain
to have all US properties Green Seal™ Certified – Silver.
The Company’s resorts are family-oriented destination facilities that
generally feature 300 – 600 rooms and a large indoor entertainment area
measuring 40,000 – 100,000 square feet. The all-suite properties offer a
variety of room styles, arcade/game rooms, fitness rooms, themed
restaurants, spas, supervised children’s activities and other amenities.
Additional information may be found on the Company’s Web site at www.greatwolf.com.
