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Great Wolf Resorts of Madison, Wis., which jointly operates the Grand Mound resort with the Confederated Tribes of the Chehalis, reported a $14.4 million net loss in the fourth quarter of 2011.
Although the operator of water park resorts lost money, it reduced that loss by half after losing $29.2 million in the fourth quarter of 2010. For the quarter, Great Wolf Resorts reported a $14.4 million loss, or 46 cents a share, compared to a loss of $29.2 million, or 94 cents a share, in the year-ago quarter.
Still, total revenue rose nearly 5 percent in the year-over-year period to $65.5 million from $62.6 million. Total operating expenses, including resort expenses and property operating costs, were cut 22 percent to $65.8 million from $84.4 million.
The resort in Grand Mound is a 398-room hotel, indoor water park and convention center that opened in 2008. As part of its agreement with the Chehalis tribe, the company owns 49 percent of the resort, while the tribe owns the rest.
Great Wolf Lodge also is one of the company's “Generation II” resorts, which tend to be 400-room or larger properties. As part of Great Wolf’s earnings release, the company also discloses how the “Generation II” resorts performed in the quarter. Occupancy rates rose to 56.7 percent from 54 percent in the fourth quarter of 2010, while the average daily room rate increased to $271.51 from $266.50 in the same year-over-year period.
During a short conference call with analysts Wednesday, one analyst asked Chief Executive Kim Schaefer about the effect higher gasoline prices might have on the business.
Schaefer acknowledged that consumers still remain somewhat cautious about their spending coming out of the recession, giving the example that a mother might sacrifice going to one of the resort spas so that her children can, she said. Higher gasoline prices or not, Schaefer still touted the company’s “value proposition” in this economy.
Gasoline prices have spiked in recent weeks, both nationally and here, because of Middle East tensions. In Puget Sound, prices, too, are higher because of a fire-damaged refinery.
The average price for regular unleaded in the Olympia area was $3.76 Wednesday, up 15 cents from last week and up 35 cents from the same period a year ago, according to AAA Washington.
Great Wolf Resorts’ stock, which trades under the ticker symbol, WOLF, rose 10 cents to close at a new 52-week high of $3.87 a share Wednesday. In the past 52 weeks, the stock has traded between $2.02 a share and $3.79 a share.
