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Altman Z-Score, Trailing 12 Months: -0.34Altman Z-Score, Last Fiscal Year: -0.33Great Wolf Resorts(WOLF)
Great Wolf saw its troublesome Z-Score edge even lower to -0.34 in the trailing 12 months, signaling the family entertainment resort company has much work to do in securing its financial stability.
Great Wolf operates family resorts with indoor waterparks and other family-oriented activities.
Great Wolf has taken steps to improve its financial flexibility in recent months. In March it completed the sale of its Blue Harbor Resort in Sheboygan, Wis. for $4.2 million, making a payment of $2.5 million to the city of Sheboygan to relieve it from all debt obligations there.
The sale also demonstrated Great Wolf's strategy of expanding through management and licensing arrangements rather than through the direct ownership of real estate properties.
In May, Great Wolf booked a 19.6% increase in adjusted quarterly EBITDA (earnings before interest, taxes, depreciation and amortization) to $18.5 million. RevPAR increased 5.2% year-over-year and average daily room rates increased by 1.7%. Occupancy improved by 210 basis points.
Great Wolf narrowed its net losses to $6 million, or 19 cents loss per share, compared with a year-earlier loss of $8.1 million, or 26 cents loss per share. Total revenue increased 4.4% to $71.9 million, which the company attributed to strengthened demand.