Turismo
Thunderbird Resorts Inc.: Third Quarter 2015 Interim Management Statement
PANAMA, REPUBLIC OF PANAMA--(Marketwired - Nov 17, 2015) - ("Thunderbird" or "Group") (EURONEXT:TBIRD)(FRANKFURT:4TR) announces its interim results for the first quarter and three months ended September 30, 2015.
Group Overview for Third Quarter 2015
In the Group's Half-year Report 2015, our CEO stated certain goals to achieving profitability and building a healthy, growing company. Here is a snapshot of our performance under these stated goals in Q3 2015:
Below is our consolidated profit / (loss) summary for the nine months ended September 30, 2015, as compared with the same period of 2014. In summary, Group revenue decreased by $1.4 million or 4.3% on a USD basis (see "Forex" note below below where it shows revenue on a currency neutral basis has grown), while adjusted EBITDA increased by $696 thousand or 35.8% because of aggressive efficiency.
: The strengthening of the US dollar versus our operating currencies continues to have a material impact on our as reported profit / (loss) as compared to the same period in 2014. Under a currency neutral analysis (in which the same exchange rate would be applied to both periods as to remove Forex swings from the analysis), Group revenue would have grown by $1.5 million or 4.9% and adjusted EBITDA would have increased by $1.1 million or 77.0%.
: The increase in financing costs, net was due to the fact that in 2014 the Group benefitted from material interest income from the financed portion of its sale of Philippines assets, which loan has since been repaid by the purchaser. Our average weighted borrowing cost as of September 30, 2015, was just 8.60% as we have continued to pay down our highest interest debt.
Below is the Group's Gross debt and Net Debt on September 30, 2015.
Note : Gross debt above is presented net of debt issuance costs (costs of debt at time of issuance, which are currently non-cash and amortize over time) which is why there is an approximate $0.3 million variance with the total Principal balance below.
The increase in Obligations under leases as of September 2015 was due to the addition of $1.9 million of gaming machines debt in Peru as detail below:
The Group estimates its debt schedule as follows starting in October 2015:
Peru Update
Our Peru profit / (loss) summary for the nine months ended September 30, 2015, as compared with the same period of 2014 is set out below. In summary, Peru revenue has reduced by $1.9 million or 8.4% on a USD basis (see "Forex" note below for information on currency neutral revenue), while property EBITDA has increased by $840 thousand or 23.9% due to aggressive efficiency programs.
: Under a currency neutral basis (in which the same exchange rate would be applied to both periods), Peru revenue would have grown by $491 thousand or 2.4% and property EBITDA would have increased by $1.2 million or 38.6%.
in Peru is $371 thousand (an improvement of $590 thousand as compared to 2014), which primarily is the result of efficiency programs the Group has implemented that have led to the reduction of $2.8 million in property, marketing and administration expense.
: a) During Q3 and Q4 2014, the Group opened 24 electronic roulette and 56 new table positions, and 2015 is the first full year of operation of these positions; b) The consolidation of our Peru administrative offices to free up space and increase space for third party rentals is expected to have an impact in Q1 2016; c) Effective April 30, 2015, the Group's contract to manage the El Pueblo Resort expired, thus reducing revenue on an annualized basis by approximately $730 thousand; and d) The Group announced in its 2014 Annual Report that it has reduced payroll by approximately $1.5 million (annualized) between September 2014 and approximately April 2015. The year-to-date impact of these reductions as of September 30, 2015 has been $1.6 million, which is materially higher than forecasted.
Nicaragua Update
Below is our Nicaragua profit / (loss) summary for the nine months ended September 30, 2015, as compared with the same period of 2014. In summary, Nicaragua revenue has increased by $567 thousand or 5.6% on a USD basis (see "Forex" note below) and property EBITDA has decreased by $251 thousand or 14.5% partially due to: a) The growth of lower margin food and beverage revenue; and b) A one-time increase in marketing expense related to the opening of our new casino property (described below).
: On a currency neutral basis (in which the same exchange rate would be applied to both periods), Nicaragua revenue would have grown by $1.0 million or 10.9% and property EBITDA would have decreased by $169 thousand or 10.3%.
in Nicaragua is $380 thousand (a reduction of $443 thousand), which is primarily the result of the increased property, marketing and administration expense as described above. The profit for the period was also impacted by higher depreciation (non-cash item) and by project development costs of $91 thousand. Both items were directly related to the opening of the new Pharaoh's Bolonia casino.
: On April 22, 2015, the Group opened a 1,200 square meters entertainment venue with 111 slot machines, 21 gaming table positions and 110 F&B positions. This property is located in a premium area in the heart of Managua in which the government is investing heavily to promote tourism. The Group has moved its Pharaoh's Holiday Inn property to this new location which is owned by the Company and which has far superior market visibility, parking and space distribution for our business. The facility also has 29 additional gaming positions as compared to the old casino it replaced. Based on Q3 results (first full quarter of operation), the annualized revenue and EBITDA of the Casino Bolivar would be $2.3 million and $252 thousand, respectively.
Other Group Updates
Below are the material events in our business since filing our 2015 Half-year Report on August 30, 2015.
Over the course of several weeks beginning September 9, 2015, the Company announced that various directors and officers purchased 846,184 of its issued and outstanding common shares through the market as well as from a shareholder in a private transaction. In addition, Thunderbird itself purchased 660,000 shares through the facilities of the Euronext Amsterdam in accordance with the applicable rules of the exchange concerning private transactions. The shares were purchased at an average share price of $0.50 per share.
In September 2015, the Company announced the reduction of debt balance owed to a single lender from approximately $3.4 million to $600 thousand, for a gross debt reduction of $2.8 million and one-time gain to the Group of $2.9 million. Gross debt balances forecast for the end of October 2015, are preliminarily estimated at $33 million.
Below is the Group's preliminary revenue report for October 2015 as compared with October 2014:
: On a currency neutral basis, our October 2015 revenues would have improved as follows:
For more detail on these developments, please visit www.thunderbirdresorts.com to find our press releases dated January to October 2015.
Capital Resources and Liquidity
The Group measures its liquidity needs by:
The Group has the capacity to manage liquidity with different tools at its disposal, including:
Based upon our current expectations for the third quarter of 2015, we anticipate that our available cash balances, our cash flow from operations and available borrowing capacity under our existing credit arrangements will be sufficient to fund our liquidity requirements for at least the next 18 months.
: Copies of the Third Quarter Interim Management Statement in the English language will be available at no cost at the Group's website at www.thunderbirdresorts.com . Copies in the English language are available at no cost at the Group's operational office in Panama and at the offices of our local paying agent ING Commercial Banking, Paying Agency Services, Location Code TRC 01.013, Foppingadreef 7, 1102 BD Amsterdam, the Netherlands (tel: +31 20 563 6619, fax: +31 20 563 6959, email: iss.pas@ing.nl ). Copies are also available on SEDAR at www.SEDAR.com .
www.thunderbirdresorts.com
: This release contains certain forward-looking statements within the meaning of the securities laws and regulations of various international, federal, and state jurisdictions. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential revenue and future plans and objectives of the Group are forward-looking statements that involve risk and uncertainties. There can be no assurances that such statements will prove to be accurate and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Group's forward-looking statements include competitive pressures, unfavorable changes in regulatory structures, and general risks associated with business, all of which are disclosed under the heading "Risk Factors" and elsewhere in the Group's documents filed from time-to-time with the AFM and other regulatory authorities.
Thunderbird Resorts Inc.
Peter LeSar
Chief Financial Officer
Phone: (507) 223-1234
Email: plesar@thunderbirdresorts.com
www.thunderbirdresorts.com
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