EX-99.1 2 c52185exv99w1.htm EX-99.1 EX-99.1
Exhibit 99.1
GREAT WOLF RESORTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
(dollars in thousands, except per share data)
                         
    Year Ended December 31,  
    2008     2007 (1)     2006 (1)  
Revenues:
                        
Rooms
   $ 143,395     $ 112,261     $ 87,775  
Food and beverage
     38,808       29,588       21,930  
Other hotel operations
     35,365       27,085       21,207  
Management and other fees
     2,798       2,855       2,087  
Management and other fees — affiliates
     5,346       4,314       3,729  
 
                  
 
     225,712       176,103       136,728  
Other revenue from managed properties-affiliates
     19,826       11,477       11,920  
 
                  
Total revenues
     245,538       187,580       148,648  
 
                  
Operating expenses by department:
                        
Rooms
     20,134       15,716       11,914  
Food and beverage
     30,990       25,196       18,806  
Other
     28,959       23,104       17,117  
Other operating expenses:
                        
Selling, general and administrative
     51,902       47,915       41,421  
Property operating costs
     37,086       30,555       23,217  
Depreciation and amortization
     46,081       36,372       25,903  
Impairment loss on investment in affiliates
     18,777       —       —  
Goodwill impairment
     17,430       —       50,975  
Loss on disposition of property
     19       128       1,066  
 
                  
 
     251,378       178,986       190,419  
Other expenses from managed properties-affiliates
     19,826       11,477       11,920  
 
                  
Total operating expenses
     271,204       190,463       202,339  
 
                  
Net operating loss
     (25,666 )     (2,883 )     (53,691 )
Investment income — affiliates
     (2,187 )     (667 )     —  
Interest income
     (1,424 )     (2,758 )     (3,105 )
Interest expense
     27,277       14,887       7,169  
 
                  
Loss before income taxes, noncontrolling interest, and equity in unconsolidated affiliates
     (49,332 )     (14,345 )     (57,755 )
Income tax benefit
     (11,956 )     (5,859 )     (8,764 )
Equity in unconsolidated affiliates, net of tax
     3,349       1,547       761  
 
                  
Net loss
     (40,725 )     (10,033 )     (49,752 )
Net loss attributable to the noncontrolling interest
     —       (452 )     (502 )
 
                  
Net loss attributable to Great Wolf Resorts, Inc.
   $ (40,725 )   $ (9,581 )   $ (49,250 )
 
                  
 
                        
Basic and diluted loss per share:
                        
Basic loss per share
   $ (1.32 )   $ (0.31 )   $ (1.63 )
 
                  
Diluted loss per share
   $ (1.32 )   $ (0.31 )   $ (1.63 )
 
                  
Weighted average common shares outstanding:
                        
Basic
     30,827,860       30,533,249       30,299,647  
 
                  
Diluted
     30,827,860       30,533,249       30,299,647  
 
                  
 
                        
Comprehensive loss, net of tax:
                        
Net loss
     (40,725 )     (10,033 )     (49,752 )
Unrealized (gain) loss on interest rate swap
     (387 )     387       —  
 
                  
Comprehensive loss
     (40,338 )     (10,420 )     (49,752 )
Comprehensive loss attributable to the noncontrolling interest
     —       (452 )     (502 )
 
                  
Comprehensive loss attributable to Great Wolf Resorts, Inc.
   $ (40,338 )   $ (9,968 )   $ (49,250 )
 
                  
 
(1) As adjusted, see accompanying note regarding adoption of SFAS 160.

 

 

GREAT WOLF RESORTS, INC. AND SUBSIDIARIES
NOTE TO FINANCIAL INFORMATION REGARDING ADOPTION OF SFAS 160
(dollars in thousands)
     As previously disclosed in Great Wolf Resorts, Inc.’s (the “Company”) Quarterly Report on Form 10-Q for the quarter ended March 31, 2009 (the “Form 10-Q”), the Company adopted the provisions of Statement of Financial Accounting Standards (SFAS) No. 160, “Noncontrolling Interests in Consolidated Financial Statements — an Amendment of ARB No. 51,” effective as of January 1, 2009. SFAS 160 requires the Company to reclassify retrospectively for all periods presented, noncontrolling ownership interests (formerly called minority interests) from the mezzanine section of the balance sheet between liabilities and equity to the equity section of the balance sheet. In addition, SFAS 160 changes our presentation of net income (loss) in the condensed consolidated statements of Operations and and Comprehensive Loss.
     We had no noncontrolling interests as of December 31, 2008 or December 31, 2007. As a result, the adoption of SFAS 160 has no effect on our prior years’ consolidated balance sheets.
     Prior to the adoption of SFAS 160, net income (loss) excluded net income attributable to non-controlling interests. SFAS 160 now requires that net income include net income attributable to non-controlling interests. SFAS 160 also requires a new separate caption for net income attributable to the Company be presented in the consolidated statement of operations and comprehensive loss which is equal to net income (loss) as previously reported prior to the adoption of SFAS 160. Thus, the retrospective application of SFAS 160 increases net loss, due to the inclusion of the amount of net loss attributable to non-controlling interests, by $500 in each of the fiscal years 2007 and 2006, and net loss attributable to the Company will be equal to net loss as previously reported prior to the adoption of SFAS 160. As we had no noncontrolling interests in 2008, the adoption of SFAS 160 has no effect on our statement of operations and comprehensive loss for 2008.
     The accompanying consolidated statements of operations and comprehensive loss for the years ended December 31, 2008, 2007 and 2006 originally filed as part of Item 8 — Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10-K for the year ended December 31, 2008 has been updated to reflect the above described effects of the retrospective application of SFAS 160.