Posted Wednesday, August 2, 2006 11:06 AM | Contributed by Jeff
In the 2006 second quarter, Great Wolf Resorts reported a net loss of $(1.4) million, or $(0.05) per diluted share, compared to a net loss of $(2.7) million, or $(0.09) per share, in the second quarter of 2005.
Read the press release from PR Newswire via Yahoo.
The Sandusky, Ohio Great Wolf Lodge continued to reflect the difficult regional economic conditions and increased competition in the market. "In the face of marketplace challenges, this property's team also performed well, with an excellent focus on cost control. Sandusky remains a highly competitive market, but we believe that our high brand acceptance and superior attention to guest experience will enhance our position," Emery said.
This does not bode well for Cedar Fair. While I'm sure "the weather" had some to do with the recent results, there is more going on here than weather. The fact that Cedar Fair has recently took on a lot of debt to buy 2 other Ohio parks and also is in the Michigan market...does not look good.
What is happening in my home state? Are they still clinging to blue collar hopes as a future? I see where the tax burden has become one of the highest in the country. Combine this with a poor outlook for industrial jobs, and it is hard to see a scenerio where this part of the country can get to a level where it enjoys the economic prosperity in The South and West!
I usually have been one who has always believed that Cedar Fair can pull it off...in terms of sustainable growth. To do so, I would have to guess they may need to concentrate on their California, Canada, and Carolina parks in the short term (The three C's). There may not be enough expendible income in Ohio/Michigan to obtain a reasonable return on investment.
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