MADISON, Wis., Feb. 20 /PRNewswire-FirstCall/ -- As previously announced, Great Wolf Resorts, Inc. , North America's leading family of indoor waterpark resorts, will release fourth-quarter 2008 financial results on Wednesday, February 25, 2009, before the market opens. The company will hold a conference call at 10 a.m. ET on that day to discuss its results. The company continues to affirm its previously announced Adjusted EBITDA guidance range for the fourth quarter.
In addition, the company advised that it has completed its annual goodwill impairment assessment, and announced that it expects to record a non-cash, pre-tax charge of approximately $17 million for fourth quarter 2008 related to two of its resorts. The impairment charge does not affect the historical cost carrying basis of the impacted resorts' fixed assets. The company conducted its goodwill analysis and assessment in accordance with the provisions of Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets," which requires goodwill to be assessed for potential impairment at least annually. In light of current and expected market and economic conditions for the company's resorts located in Kansas City, Kansas and Mason, Ohio, the company determined that an impairment charge for goodwill associated with these resorts was required. The impairment charge will not have any impact on the company's cash flows or cash position.
The company also advised that it has completed its impairment assessment on its investment in affiliates, and announced that it expects to record a non-cash, pre-tax charge of approximately $19 million for fourth quarter 2008 related to one of its joint ventures. The company conducted its investment in affiliates analysis and assessment in accordance with the provisions of Accounting Principles Board Opinion No. 18, "The Equity Method of Accounting for Investments in Common Stock," which requires that a loss in value of an investment which is other than a temporary decline should be recognized. In light of current and expected market and economic conditions for the company's joint venture that owns resorts located in Wisconsin Dells, Wisconsin and Sandusky, Ohio, the company determined that an impairment charge for the carrying value of its investment in this joint venture was required. The impairment charge will not have any impact on the company's cash flows or cash position.
The company has not completed its estimate of the after-tax impact of the goodwill and investment in affiliate impairment charges on earnings per share; as a result, the company is unable to provide updated guidance on net income (loss) and net income (loss) per share for the fourth quarter and full year 2008. The effect of the goodwill and investment in affiliate impairment charges is not reflected in the company's previously issued net income (loss) guidance for the fourth quarter of 2008. In conformance with the company's practices, these non-cash impairment charges will be excluded from the company's fourth quarter 2008 Adjusted EBITDA and Adjusted net income (loss) calculations.
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical facts, including, among others, statements regarding Great Wolf Resorts' 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," "will," "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 as a result of the subprime loan crisis, potential accidents or injuries at its resorts, 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, and other factors discussed under Item IA (Risk Factors) in Great Wolf Resorts' 2007 Form 10-K. We assume no duty to update these statements.
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 Great Wolf Resorts 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.(R) , Madison, Wis., is North America's largest family of indoor waterpark resorts, and, through its subsidiaries and affiliates, owns and operates its family resorts under the Great Wolf Lodge(R) and Blue Harbor Resort(TM) brands. Great Wolf Resorts is a fully integrated resort company and owns and/or manages 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; and Grand Mound, Wash.; and Blue Harbor Resort & Conference Center in Sheboygan, Wis. A Great Wolf Lodge in Concord, N.C. is currently under construction.
The company's resorts are family-oriented destination facilities that generally feature 300-400 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 http://www.greatwolf.com/.
Contact: Alex Lombardo Steve Shattuck Investors Media (703) 573-9317 (608) 661-4731
