PANAMA, REPUBLIC OF
PANAMA--(Marketwired - April 23, 2015) - Thunderbird Resorts Inc. ("Thunderbird")
(EURONEXT:TBIRD)(FRANKFURT:4TR) is pleased to announce
that its 2014 Annual Report and Audited Consolidated Financial
Statements have been filed with the Euronext ("Euronext Amsterdam")
and the Netherlands Authority for Financial Markets ("AFM"). As a
Designated Foreign Issuer with respect to Canadian securities
regulations, the Annual Report is intended to comply with the rules
and regulations set forth by the AFM and the Euronext
Amsterdam.
Copies of the Annual Report 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.
Below are certain material excerpts from the full
2014 Annual Report the entirety of which can be found on our
website at www.thunderbirdresorts.com.
LETTER FROM
CEO
Over the past two years, both in practice and as
expressed in my CEO Letter to Shareholders, we have steadfastly
focused on building a profitable company through the following
three areas of work:
-
Development in our existing markets where new
revenues should most efficiently grow our bottom line by leveraging
existing management overhead.
-
Continue efforts to control and reduce
country-level and corporate expenses.
-
Continue efforts to reduce debt and to refinance
remaining debt under more favorable terms.
As described below and in this 2014 Annual Report,
we have made progress in all three areas. At the same time, certain
challenges have made it difficult to achieve the level of progress
we have strived for. Below, please see our progress on these three
areas of work followed by adjustments that we believe will
accelerate our goal of building a profitable company. We are also
pleased announce a "Global Settlement" of previous published
financial risks related to the Daman, India project.
DEVELOPMENT IN OUR EXISTING
MARKETS
Progress: The purpose of pursuing development
in our existing markets is to increase cash flow where we can
leverage our existing management overhead. We have made the
following progress:
-
New casino in Nicaragua: On April 22, 2015, the Group opened a 1,200
square meters casino with 111 slot machines, 21 gaming table
positions and 110 F&B positions. See page 23 for more
information.
-
New casino in Costa Rica: In June 2014, the
Group opened a 570 square meters casino in Costa Rica with 122 slot
machines, 27 gaming table positions (non-poker), 3 poker tables,
and 36 food and beverage seats. See press releases dated July 11,
2014 for more information.
-
New gaming positions in Peru: In July and August
2014, the Group opened 24 electronic roulette positions. In
December 2014, we opened 56 table positions and a 40-seat
restaurant at our Luxor Lima operation. See press releases of
August 26, 2014 and December 4, 2014 for more information.
Challenge: The Group recognizes the need to
increase liquidity in order to invest in our core gaming business.
In last year's CEO Letter to Shareholders, we announced the
potential sale of our non-producing Costa Rican real estate
(commonly known as "Tres Rios" and "Escazu"). The number of
potential buyers for large, premium parcels in a small market like
Costa Rica is limited and interest shown by potential buyers has
not yet resulted in a successful sale.
Response to
Challenge: During 2014, the Group was approached by
several parties who hoped to acquire our Costa Rica casino
operations. Over the past several years, both revenues and cash
flow have decreased in these operations. To meet our development
goal of increasing liquidity, given the slow progress of the Costa
Rica real estate sales, on February 25, 2015, the Group sold its
Costa Rica casino operations and achieved net cash in excess of $8
million. See page 23 and press release dated February 27, 2015 for
more information.
CONTROL AND REDUCE COUNTRY-LEVEL
AND CORPORATE EXPENSES
Progress: We have made the following progress
in reducing expenses:
-
Country-level consolidated operating, general
and administrative expenses were reduced by $1.7 million or by
4% as compared to December 31, 2013 (despite inflation in our
markets). Between September 2014 and the date of publication of
this report, the Group has reduced approximately $1.5 million in
payroll that should result in improved EBITDA in 2015.
-
Corporate expense was reduced by $400
thousand or 8% from $4.9 million as of December 31, 2013 to $4.5
million as of December 31, 2014 (despite inflation in our
markets).
Challenges: Despite the continued progress in
the reduction of expenses and our positive property
EBITDA1 ($9.8
million in 2014) and adjusted EBITDA ($5.3 million in 2014), our
bottom line results are challenged by: a) High corporate expense
required to manage a publicly-traded company given the downsizing
of the organization (approximately 8.0% of revenue in 2014); b)
High non-cash expenses ($8.5 million between depreciation and
amortization, forex and other non-cash items in 2014); and c) High
financing costs, net ($4.5 million in 2014).
Response to
Challenges: For our response to these more entrenched
challenges, please see "Evaluation of Strategic Alternatives"
below.
REDUCE DEBT AND REFINANCE
REMAINING DEBT UNDER FAVORABLE TERMS
Progress: Group gross debt2 as
of December 31, 2014 was $46.2 million and net debt3 was
$41.3 million. After the sale of our Costa Rica gaming operations,
the Group's gross debt (preliminary, unaudited) has been reduced to
approximately $37.8 million and net debt to $27.2 million as of the
date of this report.
Challenge: The Group continues to work on
refinancing its Peru and Peru-related debt (approximately $29.2
million of gross debt as of December 31, 2014) and, if the
opportunity arises, to pay down a significant portion or all of
this debt.
Response to
Challenge: We continue to work on different
refinancing alternatives. The Fiesta Hotel & Casino real estate
in Lima, Peru has an updated appraisal of approximately $53 million
(April 2015), which we believe will help in a refinancing. Please
also see "Evaluation of Strategic Alternatives" below.
EVALUATION OF STRATEGIC
ALTERNATIVES
The Group's primary stated goal is to achieve
profitability and to build a healthy, growing company. Certain
entrenched challenges (as described above) have made achieving this
goal difficult. The solutions to these challenges require us to
rethink how to accelerate revenue growth, accelerate debt reduction
and materially reduce non-cash items that are largely responsible
for the variances between our positive EBITDA and our negative
income.
We believe the lack of profitability is a key
factor that has resulted in low demand for our shares and a reason
why our market capitalization (approximately $10.4 million as of
the date of publication of this report) falls materially short of
what Management believes is the intrinsic value of its real estate
(appraised value of our interests of $76.3 million based on
appraisals performed since 2013) and adjusted EBITDA of $5.3
million (as of December 31, 2014).
The Group's plan continues to be as summarized at
the beginning of this letter, but with one or more of the following
possible adjustments, all of which are now under active
analysis:
-
Liquidate additional
non-producing and producing real estate (total appraised
value of the Group's interests in all of our real estate exceeds
$76 million) in order to: a) Pay down virtually all debt; b)
Significantly reduce depreciation and amortization; c) Retool our
asset mix away from real estate and invest proceeds in new high
cash flowing gaming operations in our existing markets to increase
revenues and improve bottom line results; and / or
-
Raise new equity to pay down virtually all debt
and invest in new high cash flowing gaming operations in our
existing markets with the goal of increasing revenues and bottom
line results.
At this time, these strategic alternatives are
under analysis, should be considered speculative in nature and any
outcomes will depend both on our analysis and on the demands of the
market place.
"GLOBAL SETTLEMENT" RELATED TO
THE DAMAN, INDIA PROJECT
Finally, I am pleased to inform that, effective
April 8, 2015, in order to avoid litigation costs and obtain
certainty as to obligations, the Group has:
-
Settled a possible $6 million or greater
exposure arising from a guarantee it provided in 2009 to a
mezzanine lender (Maravege Holding Limited) to the Daman, India
project. The total consideration for settlement is $2.425 million
consisting of a cash payment of $1.325 million to be paid over 23
months and an offsetting credit for the $1.1 million to be paid by
Maravege for the remaining 5.5% of shares the Group has in DHPL.
The Share transfer is subject to a certain first right process with
an existing DHPL shareholder as described on page 24.
-
Obtained full release from DHPL and from its
controlling shareholder Delta Corp Limited ("Delta") for any
potential liabilities and claims.
-
Received from Delta and DHPL proof that all
senior lenders, whose loans totalled approximately $25 million and
had been guaranteed by the Group, have been paid in full by
DHPL/Delta.
-
Obtained a full release from Madison India Real
Estate Fund Limited ("MIREF"), whose mezzanine loan to DHPL of
approximately $7.2 million had been guaranteed by
Thunderbird.
In effect, the Group believes it has achieved a
"Global Settlement" of its remaining financial exposure in India.
The background on the Daman, India project and the Global
Settlement is fully described in Note 21 of our Financial Statement
which accompanies this 2014 Annual Report.
We look forward to communicating with shareholders
as material events unfold.
Sincerely,
Salomon Guggenheim, President & CEO
1 EBITDA is
not an accounting term under IFRS, and refers to earnings before
net interest expense, income taxes, depreciation and amortization,
equity in earnings of affiliates, minority interests, development
costs, other gains and losses, and discontinued operations.
"Property EBITDA" is equal to EBITDA at the country level(s).
"Adjusted EBITDA" is equal to property EBITDA consolidated from all
operations less "corporate expenses", which are the expenses of
operating the parent company and its non-operating subsidiaries and
affiliates.
2 Gross
debt equals total borrowings and finance lease obligations
inclusive of the Group's proportional share of debt held by its
Costa Rican joint venture as of year-end 2014.
3 Net
debt equals gross debt less cash and cash equivalents
(excludes restricted cash).
GROUP
OVERVIEW
The strengthening of the US dollar throughout the
year versus our operating currencies has had a material impact on
our business as compared to 2013. Thus, for the convenience of the
reader, below we present: a) Summary of our consolidated results
without adjustments for forex; and b) The same summary, but
adjusted to apply our 2014 average exchange rates to the same
period in 2013 to compare results under a currency neutral
scenario.
a) Summary 2014 consolidated
P&L:
(In thousands, proportional
consolidation) |
|
|
|
|
|
|
|
|
|
Twelve months
ended |
|
|
|
|
|
|
December 31 |
|
|
|
% |
|
|
2014 |
|
2013 |
|
Variance |
|
change |
|
Net
gaming wins |
$ |
45,615 |
|
$ |
48,791 |
|
$ |
(3,176 |
) |
-6.5 |
% |
Food
and beverage sales |
|
4,518 |
|
|
4,521 |
|
|
(3 |
) |
-0.1 |
% |
Hospitality and other sales |
|
6,097 |
|
|
5,941 |
|
|
156 |
|
2.6 |
% |
Total revenues |
|
56,230 |
|
|
59,253 |
|
|
(3,023 |
) |
-5.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Promotional allowances |
|
5,020 |
|
|
5,032 |
|
|
(12 |
) |
-0.2 |
% |
Property, marketing and administration |
|
41,457 |
|
|
43,244 |
|
|
(1,787 |
) |
-4.1 |
% |
Property EBITDA |
|
9,753 |
|
|
10,977 |
|
|
(1,224 |
) |
-11.2 |
% |
Corporate Expenses |
|
4,501 |
|
|
4,884 |
|
|
(383 |
) |
-7.8 |
% |
Adjusted EBITDA |
|
5,252 |
|
|
6,093 |
|
|
(841 |
) |
-13.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Property EBITDA as a percentage of revenues |
|
9.3 |
% |
|
10.3 |
% |
|
|
|
|
|
Depreciation and amortization |
|
5,438 |
|
|
6,699 |
|
|
(1,261 |
) |
-18.8 |
% |
Interest and financing costs, net |
|
4,522 |
|
|
5,887 |
|
|
(1,365 |
) |
-23.2 |
% |
Management fee attributable to non-controlling interest |
|
(43 |
) |
|
43 |
|
|
(86 |
) |
-200.0 |
% |
Project development |
|
85 |
|
|
71 |
|
|
14 |
|
19.7 |
% |
Foreign exchange loss |
|
891 |
|
|
1,091 |
|
|
(200 |
) |
-18.3 |
% |
Other
(gains) / losses |
|
2,227 |
|
|
1,632 |
|
|
595 |
|
36.5 |
% |
Derivative financial instrument |
|
- |
|
|
(21 |
) |
|
21 |
|
-100.0 |
% |
Income
taxes |
|
1,206 |
|
|
1,817 |
|
|
(611 |
) |
-33.6 |
% |
Loss for the period from continuing
operations |
$ |
(9,074 |
) |
$ |
(11,126 |
) |
$ |
2,052 |
|
-18.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
b) Summary 2014 consolidated
P&L adjusted for forex (currency neutral):
(In thousands, proportional consolidation
under currency neutral) |
|
|
|
|
|
|
|
|
|
Twelve months
ended |
|
|
|
|
|
|
December 31 |
|
|
|
% |
|
|
2014 |
|
2013 |
|
Variance |
|
change |
|
Net
gaming wins |
$ |
45,615 |
|
$ |
46,148 |
|
$ |
(533 |
) |
-1.2 |
% |
Food
and beverage sales |
|
4,518 |
|
|
4,272 |
|
|
246 |
|
5.8 |
% |
Hospitality and other sales |
|
6,097 |
|
|
5,662 |
|
|
435 |
|
7.7 |
% |
Total revenues |
|
56,230 |
|
|
56,082 |
|
|
148 |
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Promotional allowances |
|
5,020 |
|
|
4,782 |
|
|
238 |
|
5.0 |
% |
Property, marketing and administration |
|
41,457 |
|
|
40,932 |
|
|
525 |
|
1.3 |
% |
Property EBITDA |
|
9,753 |
|
|
10,368 |
|
|
(615 |
) |
-5.9 |
% |
Corporate Expenses |
|
4,501 |
|
|
4,884 |
|
|
(383 |
) |
-7.8 |
% |
Adjusted EBITDA |
|
5,252 |
|
|
5,484 |
|
|
(232 |
) |
-4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Property EBITDA as a percentage of revenues |
|
9.3 |
% |
|
9.8 |
% |
|
|
|
|
|
Depreciation and amortization |
|
5,438 |
|
|
6,335 |
|
|
(897 |
) |
-14.2 |
% |
Interest and financing costs, net |
|
4,522 |
|
|
5,758 |
|
|
(1,236 |
) |
-21.5 |
% |
Management fee attributable to non-controlling interest |
|
(43 |
) |
|
(16 |
) |
|
(27 |
) |
168.8 |
% |
Project development |
|
85 |
|
|
68 |
|
|
17 |
|
25.0 |
% |
Foreign exchange (gain) / loss |
|
891 |
|
|
1,016 |
|
|
(125 |
) |
-12.3 |
% |
Other
(gains) / losses |
|
2,227 |
|
|
1,626 |
|
|
601 |
|
37.0 |
% |
Derivative financial instrument |
|
- |
|
|
(21 |
) |
|
21 |
|
-100.0 |
% |
Income
taxes |
|
1,206 |
|
|
1,730 |
|
|
(524 |
) |
-30.3 |
% |
Loss for the period from continuing
operations |
$ |
(9,074 |
) |
$ |
(11,012 |
) |
$ |
1,938 |
|
-17.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Group Debt: Below is the
Group's Gross debt and Net debt on December 31, 2014.
(In thousands; proportional
consolidation) |
|
|
|
|
Dec-14 |
Sep-14 |
Jun-14 |
Borrowings |
$ |
43,485 |
$ |
43,848 |
$ |
44,474 |
Borrowings associated with assets held for sale |
|
1,890 |
|
1,817 |
|
1,918 |
Obligations under leases and hire purchase contracts |
|
780 |
|
829 |
|
953 |
Gross Debt |
$ |
46,155 |
$ |
46,494 |
$ |
47,345 |
Less:
cash and cash equivalents (excludes restricted cash) |
|
4,885 |
|
7,148 |
|
4,684 |
Net Debt |
$ |
41,270 |
$ |
39,346 |
$ |
42,661 |
|
|
|
|
|
|
|
Note: Gross debt above is presented net of debt
issuance costs which is why there is an approximate $0.8 million
variance with the total principal balance below. Borrowings under
assets held for sale are related to two undeveloped real
estateparcels owned by the Group's joint venture in Costa Rica.
Post the sale of our interests in our Costa Rican gaming operations
as of February 25, 2015, the Group's Gross debt has since been
lowered to approximately $37.8 million.
The Group estimates its gross debt schedule
effective as of December 31, 2014 (our debt schedule will be
updated in future reports that will reflect the reduced gross debt
post the sale of our interests in Costa Rica gaming operations,
which were sold effective February 25, 2015):
|
|
|
|
|
|
|
|
Principal Balance |
2015 |
2016 |
2017 |
2018 |
2019 |
Thereafter |
Total |
|
Corporate |
$ |
8,334,631 |
$ |
5,286,216 |
$ |
4,910,903 |
$ |
1,563,506 |
$ |
1,375,026 |
$ |
3,397,095 |
$ |
24,867,377 |
|
|
Corporate |
|
7,441,818 |
|
5,286,216 |
|
4,910,903 |
|
1,563,506 |
|
1,375,026 |
|
3,397,095 |
|
23,974,563 |
|
|
Guatemala |
|
892,813 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
892,813 |
|
Costa Rica |
|
2,479,780 |
|
735,563 |
|
960,883 |
|
1,398,174 |
|
385,031 |
|
1,791,923 |
|
7,751,355 |
|
Peru |
|
1,555,755 |
|
1,500,331 |
|
1,288,777 |
|
1,395,824 |
|
6,810,756 |
|
- |
|
12,551,443 |
|
Nicaragua |
|
219,065 |
|
239,849 |
|
237,403 |
|
221,384 |
|
680,744 |
|
164,235 |
|
1,762,681 |
Total |
$ |
12,589,232 |
$ |
7,761,959 |
$ |
7,397,966 |
$ |
4,578,889 |
$ |
9,251,557 |
$ |
5,353,254 |
$ |
46,932,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Payment |
2015 |
2016 |
2017 |
2018 |
2019 |
Thereafter |
Total |
|
Corporate |
$ |
2,177,139 |
$ |
1,584,419 |
$ |
822,549 |
$ |
602,022 |
$ |
456,979 |
$ |
419,584 |
$ |
6,062,692 |
|
|
Corporate |
|
2,177,139 |
|
1,584,419 |
|
822,549 |
|
602,022 |
|
456,979 |
|
419,584 |
|
6,062,692 |
|
|
Guatemala |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Costa Rica |
|
691,433 |
|
459,112 |
|
358,026 |
|
235,484 |
|
149,517 |
|
518,533 |
|
2,412,104 |
|
Peru |
|
984,830 |
|
842,589 |
|
729,553 |
|
620,176 |
|
223,950 |
|
- |
|
3,401,098 |
|
Nicaragua |
|
168,634 |
|
135,885 |
|
112,699 |
|
92,834 |
|
72,780 |
|
15,540 |
|
598,372 |
Total |
$ |
4,022,035 |
$ |
3,022,005 |
$ |
2,022,827 |
$ |
1,550,515 |
$ |
903,227 |
$ |
953,657 |
$ |
12,474,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management continues to be focused on developing
inthe markets in which we currently operate. We continue to analyze
our businesses, countries and structure regularly. We will announce
any strategy changes if and when there are material changes.
RISK MANAGEMENT
For more detail on Risk Factors, see Chapter 8 of
the Annual Report.
MANAGEMENT STATEMENT ON "GOING
CONCERN"
Management routinely plans future activities
including forecasting future cash flows. Management has reviewed
their plan with the Directors and has collectively formed a
judgment that the Group has adequate resources to continue as a
going concern for the foreseeable future, which Management and the
Directors have defined as being at least the next 18 months from
December 31, 2014. In arriving at this judgment, Management has
prepared the cash flow projections of the Group, which incorporates
a 5-year rolling forecast and detailed cash flow modeling through
the current financial year. Directors have reviewed this
information provided by Management and have considered the
information in relation to the financing uncertainties in the
current economic climate, the Group's existing commitments and the
financial resources available to the Group. The expected cash flows
have been modeled based on anticipated revenue and profit streams
with debt funding programmed into the model and reducing over time.
The model assumes no new construction projects during the forecast
period, with the exception of one business that was in development
in 2014 and has since opened as of April 22, 2015. The model
assumes a stable regulatory environment in all countries with
existing operations. Sensitivities have been applied to this model
in relation to revenues not achieving anticipated levels.
The Directors have considered the: (i) base of
investors and debt lenders historically available to Thunderbird
Resorts, Inc.; (ii) global capital markets; (iii) limited trading
exposures to our local suppliers and retail customers; (iv) other
risks to which the Group is exposed, the most significant of which
is considered to be regulatory risk; (v) sources of Group income,
including management fees charged to and income distributed from
its various operations; (vi) cash generation, debt amortization
levels and key debt service coverage ratios; (vii) fundamental
trends of the Group's businesses; (viii) extraordinary cash inflows
and outflows from one-time events forecasted to occur in the
18-month period following December 31, 2014; (ix) refinancing of
Peru and Peru-related debt; and (x) liquidation of undeveloped and
therefore non-performing real estate assets that have been held for
sale.
Considering the above, Management and Directors
are satisfied that the consolidated Group has adequate resources to
continue as a going concern for at least 18 months following
December 31, 2014. For these reasons, Management and Directors
continue to adopt the going concern basis in preparing the
consolidated financial statements.
FINANCIAL
STATEMENTS
THUNDERBIRD RESORTS, INC. |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
(Expressed in thousands of United States dollars) |
For the year ended December 31, 2014 |
|
|
2014 |
|
2013 |
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
Property, plant and equipment (Note 10) |
$ |
28,720 |
|
$ |
33,708 |
Investment accounted for using the equity method (Note
26) |
|
6,403 |
|
|
3,954 |
Intangible assets (Note 9) |
|
7,783 |
|
|
7,939 |
Deferred tax assets (Note 8) |
|
566 |
|
|
352 |
Trade and other receivables (Note 11) |
|
1,543 |
|
|
5,321 |
Due from related parties (Note 19) |
|
5,651 |
|
|
120 |
Total non-current assets |
|
50,666 |
|
|
51,394 |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
Trade and other receivables (Note 11) |
|
2,766 |
|
|
8,662 |
Due from related parties (Note 19) |
|
1,019 |
|
|
11,477 |
Inventories (Note 12) |
|
738 |
|
|
886 |
Restricted cash (Note 13) |
|
1,802 |
|
|
1,724 |
Cash and cash equivalents (Note 13) |
|
4,749 |
|
|
5,491 |
Total current assets |
|
11,074 |
|
|
28,240 |
|
|
|
|
|
|
Total assets |
$ |
61,740 |
|
$ |
79,634 |
|
|
|
|
|
|
|
|
THUNDERBIRD RESORTS, INC. |
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) |
|
(Expressed in thousands of United States dollars) |
|
For the year ended December 31, 2014 |
|
|
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
Equity and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
|
|
Share
capital (Note 17) |
|
110,144 |
|
|
|
109,926 |
|
Share
option reserve |
|
289 |
|
|
|
467 |
|
Retained earnings |
|
(106,552 |
) |
|
|
(95,666 |
) |
Translation reserve |
|
(1,725 |
) |
|
|
734 |
|
Equity
attributable to equity holders of the parent |
|
2,156 |
|
|
|
15,461 |
|
Non-controlling interest |
|
6,404 |
|
|
|
6,117 |
|
Total
equity |
|
8,560 |
|
|
|
21,578 |
|
|
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
|
Borrowings (Note 15) |
|
28.532 |
|
|
|
37,612 |
|
Obligations under leases and hire purchase contracts (Note 20) |
|
317 |
|
|
|
275 |
|
Deferred tax liabilities (Note 8) |
|
77 |
|
|
|
54 |
|
Provisions (Note 16) |
|
1,475 |
|
|
|
2,100 |
|
Trade
and other payables (Note 14) |
|
1,318 |
|
|
|
999 |
|
Total
non-current liabilities |
|
31,719 |
|
|
|
41,040 |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Trade
and other payables (Note 14) |
|
6,203 |
|
|
|
6,785 |
|
Due to
related parties (Note 19) |
|
2,368 |
|
|
|
2,429 |
|
Borrowings (Note 15) |
|
9,763 |
|
|
|
3,778 |
|
Obligations under leases and hire purchase contracts (Note 20) |
|
463 |
|
|
|
833 |
|
Other
financial liabilities (Note 23) |
|
615 |
|
|
|
666 |
|
Current tax liabilities |
|
821 |
|
|
|
513 |
|
Provisions (Note 16) |
|
1,228 |
|
|
|
2,012 |
|
Total
current liabilities |
|
21,461 |
|
|
|
17,016 |
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
53,180 |
|
|
|
58,056 |
|
|
|
|
|
|
|
|
|
Total equity and liabilities |
$ |
61,740 |
|
|
$ |
79,634 |
|
|
|
|
|
|
|
|
|
|
|
THUNDERBIRD RESORTS, INC. |
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
|
(Expressed in thousands of United States dollars) |
|
For the year ended December 31, 2014 |
|
|
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
Net gaming wins |
$ |
40,323 |
|
|
$ |
42,825 |
|
Food, beverage and hospitality sales |
|
10,230 |
|
|
|
10,097 |
|
Total revenue |
|
50,553 |
|
|
|
52,922 |
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
(18,456 |
) |
|
|
(18,360 |
) |
Gross profit |
|
32,097 |
|
|
|
34,562 |
|
|
|
|
|
|
|
|
|
Other operating costs |
|
|
|
|
|
|
|
|
Operating, general and administrative |
|
(28,439 |
) |
|
|
(30,593 |
) |
Project development |
|
- |
|
|
|
(27 |
) |
|
Depreciation and amortization |
|
(4,306 |
) |
|
|
(5,114 |
) |
|
Other gains and (losses) (Note 5) |
|
(1,601 |
) |
|
|
(1,605 |
) |
Operating loss |
|
(2,249 |
) |
|
|
(2,777 |
) |
|
|
|
|
|
|
|
|
Share of loss from equity accounted investments |
|
(2,867 |
) |
|
|
(97 |
) |
|
|
|
|
|
|
|
|
Financing |
|
|
|
|
|
|
|
|
Foreign exchange (loss) / gain |
|
(510 |
) |
|
|
(1,164 |
) |
|
Financing costs (Note 7) |
|
(4,591 |
) |
|
|
(5,907 |
) |
|
Financing income (Note 7) |
|
652 |
|
|
|
838 |
|
|
Other interest (Note 7) |
|
(37 |
) |
|
|
(206 |
) |
|
Finance costs, net |
|
(4,486 |
) |
|
|
(6,439 |
) |
|
|
|
|
|
|
|
|
Loss before tax |
|
(9,602 |
) |
|
|
(9,313 |
) |
|
|
|
|
|
|
|
|
Income taxes expense (Note 8) |
|
|
|
|
|
|
|
|
Current |
|
(1,392 |
) |
|
|
(1,353 |
) |
|
Deferred |
|
221 |
|
|
|
(354 |
) |
Income tax expense |
|
(1,171 |
) |
|
|
(1,707 |
) |
|
|
|
|
|
|
|
|
Loss for the year from continuing
operations |
$ |
(10,773 |
) |
|
$ |
(11,020 |
) |
|
|
|
|
|
|
|
|
Loss for the year from discontinued operations |
|
- |
|
|
|
(2,380 |
) |
|
|
|
|
|
|
|
|
Loss for the year |
$ |
(10,773 |
) |
|
$ |
(13,400 |
) |
|
|
|
|
|
|
|
|
|
|
THUNDERBIRD RESORTS, INC. |
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(continued) |
|
(Expressed in thousands of United States dollars) |
|
For the year ended December 31, 2014 |
|
|
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
Other comprehensive income (amounts,
which will be recycled) |
|
|
|
|
|
|
|
Exchange differences arising on the translation of foreign
operations |
$ |
(2,459 |
) |
|
$ |
(2,729 |
) |
Other comprehensive income for the
year |
|
(2,459 |
) |
|
|
(2,729 |
) |
|
|
|
|
|
|
|
|
Total comprehensive income for the
year |
$ |
(13,232 |
) |
|
$ |
(16,129 |
) |
|
|
|
|
|
|
|
|
Loss for the year attributable
to: |
|
|
|
|
|
|
|
Owners of the parent |
|
(11,084 |
) |
|
|
(14,334 |
) |
Non-controlling interest |
|
311 |
|
|
|
934 |
|
|
$ |
(10,773 |
) |
|
$ |
(13,400 |
) |
|
|
|
|
|
|
|
|
Total comprehensive income attributable
to: |
|
|
|
|
|
|
|
Owners of the parent |
|
(13,543 |
) |
|
|
(17,063 |
) |
Non-controlling interest |
|
311 |
|
|
|
934 |
|
|
$ |
(13,232 |
) |
|
$ |
(16,129 |
) |
|
|
|
|
|
|
|
|
Basic and diluted loss per share (in $):
(Note 18) |
|
|
|
|
|
|
|
Loss from continuing operations |
|
(0.49 |
) |
|
|
(0.52 |
) |
Loss from discountinued operations |
|
- |
|
|
|
(0.10 |
) |
Total |
|
(0.49 |
) |
|
|
(0.62 |
) |
|
|
|
|
|
|
|
|
|
|
THUNDERBIRD RESORTS, INC. |
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
|
(Expressed in thousands of United States dollars) |
|
For the year ended December 31, 2014 |
|
|
|
|
Attributable to equity holders of parent |
|
|
Share
capital |
|
Share
options
reserve |
|
Currency
translation
reserve |
|
Retained
earnings |
|
Total |
|
Non-
controlling
interest |
|
Total
equity |
|
Balance at January 1, 2013 |
$ |
109,969 |
|
$ |
783 |
|
$ |
4,523 |
|
$ |
(81,648 |
) |
$ |
33,627 |
|
$ |
8,218 |
|
$ |
41,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of new shares |
|
240 |
|
|
- |
|
|
- |
|
|
- |
|
|
240 |
|
|
- |
|
|
240 |
|
Shares buy-back |
|
(272 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(272 |
) |
|
- |
|
|
(272 |
) |
Shares returned to treasury |
|
(11 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(11 |
) |
|
- |
|
|
(11 |
) |
Options cancellation and expiration |
|
- |
|
|
(316 |
) |
|
- |
|
|
316 |
|
|
- |
|
|
- |
|
|
- |
|
Philippines disposal |
|
- |
|
|
- |
|
|
(1,060 |
) |
|
- |
|
|
(1,060 |
) |
|
(3,035 |
) |
|
(4,095 |
) |
|
$ |
(43 |
) |
$ |
(316 |
) |
$ |
(1,060 |
) |
$ |
316 |
|
$ |
(1,103 |
) |
$ |
(3,035 |
) |
$ |
(4,138 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the year |
|
- |
|
|
- |
|
|
- |
|
|
(14,334 |
) |
|
(14,334 |
) |
|
934 |
|
|
(13,400 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences arising on |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
translation of foreign operations |
|
- |
|
|
- |
|
|
(2,729 |
) |
|
- |
|
|
(2,729 |
) |
|
- |
|
|
(2,729 |
) |
Total comprehensive income for the year |
|
|
|
|
|
|
|
(2,729 |
) |
|
(14,334 |
) |
|
(17,063 |
) |
|
934 |
|
|
(16,129 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2013 |
$ |
109,926 |
|
$ |
467 |
|
$ |
734 |
|
$ |
(95,666 |
) |
$ |
15,461 |
|
$ |
6,117 |
|
$ |
21,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital |
|
|
Share
options
reserve |
|
|
Currency
translation
reserve |
|
|
Retained
earnings |
|
|
Total |
|
|
Non-
controlling
interest |
|
|
Total
equity |
|
Balance at January 1, 2014 |
$ |
109,926 |
|
$ |
467 |
|
$ |
734 |
|
$ |
(95,666 |
) |
$ |
15,461 |
|
$ |
6,117 |
|
$ |
21,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of new shares |
|
218 |
|
|
- |
|
|
- |
|
|
- |
|
|
218 |
|
|
- |
|
|
218 |
|
Buy-back of subsidiary shares |
|
- |
|
|
- |
|
|
- |
|
|
20 |
|
|
20 |
|
|
(24 |
) |
|
(4 |
) |
Options cancellation and expiration |
|
- |
|
|
(178 |
) |
|
- |
|
|
178 |
|
|
- |
|
|
- |
|
|
- |
|
|
$ |
218 |
|
$ |
(178 |
) |
$ |
- |
|
$ |
198 |
|
$ |
238 |
|
$ |
(24 |
) |
$ |
214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the year |
|
|
|
|
- |
|
|
- |
|
|
(11,084 |
) |
|
(11,084 |
) |
|
311 |
|
|
(10,773 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences arising on |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
translation of foreign operations |
|
- |
|
|
- |
|
|
(2,459 |
) |
|
- |
|
|
(2,459 |
) |
|
- |
|
|
(2,459 |
) |
Total comprehensive income for the year |
|
- |
|
|
- |
|
|
(2,459 |
) |
|
(11,084 |
) |
|
(13,543 |
) |
|
311 |
|
|
(13,232 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2014 |
$ |
110,144 |
|
$ |
289 |
|
$ |
(1,725 |
) |
$ |
(106,552 |
) |
$ |
2,156 |
|
$ |
6,404 |
|
$ |
8,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THUNDERBIRD RESORTS, INC. |
|
CONSOLIDATED STATEMENT OF CASH FLOWS |
|
(Expressed in thousands of United States dollars) |
|
For the year ended December 31, 2014 |
|
|
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
Cash flow from operating
activities |
|
|
|
|
|
|
|
Loss for the year |
$ |
(10,773 |
) |
|
$ |
(11,020 |
) |
Items not involving cash: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
4,306 |
|
|
|
5,209 |
|
|
Loss on disposal of property, plant and equipment |
|
(107 |
) |
|
|
131 |
|
Unrealized foreign exchange |
|
510 |
|
|
|
1,487 |
|
|
Increase / (decrease) in provision |
|
(1,364 |
) |
|
|
1,246 |
|
Bad debt expense |
|
401 |
|
|
|
- |
|
|
Other losses / (gains) |
|
1,307 |
|
|
|
- |
|
|
Share based payments |
|
219 |
|
|
|
240 |
|
Finance income |
|
(652 |
) |
|
|
(838 |
) |
Finance cost |
|
4,591 |
|
|
|
5,907 |
|
|
Other interests |
|
37 |
|
|
|
206 |
|
Results from equity accounted investments |
|
2,867 |
|
|
|
97 |
|
|
Tax expenses |
|
1,171 |
|
|
|
1,707 |
|
Net change in non-cash working capital
items |
|
|
|
|
|
|
|
|
Decrease in trade, prepaid and other receivables |
|
5,676 |
|
|
|
4,726 |
|
|
Decrease in inventory |
|
102 |
|
|
|
7 |
|
|
(Decrease) / increase in trade payables and accrued |
|
(236 |
) |
|
|
(1,751 |
) |
Cash (used) from operations |
|
8,055 |
|
|
|
7,354 |
|
Total tax paid |
|
(1,066 |
) |
|
|
(1,434 |
) |
Net cash generated by continuing operations |
|
6,989 |
|
|
|
5,920 |
|
|
|
|
|
|
|
|
|
Net cash (used) from discontinued operations |
|
- |
|
|
|
(1,322 |
) |
|
|
|
|
|
|
|
|
Net cash (used) from operating
activities |
$ |
6,989 |
|
|
$ |
4,598 |
|
|
|
|
|
|
|
|
|
Cash flow from investing
activities |
|
|
|
|
|
|
|
Expenditure on property, plant and equipment |
|
(2,598 |
) |
|
|
(3,422 |
) |
Proceeds on sale of property, plant and equipment |
|
1,622 |
|
|
|
59 |
|
Proceeds on sale of Philippines operation, net of cash
disposed |
|
- |
|
|
|
17,265 |
|
Cost of sale of Philippines operation |
|
(259 |
) |
|
|
(522 |
) |
Interest received |
|
652 |
|
|
|
317 |
|
Net cash used from investing
activities |
$ |
(583 |
) |
|
$ |
13,697 |
|
|
|
|
|
|
|
|
|
Cash flow from financing
activities |
|
|
|
|
|
|
|
Shares buy-back |
|
- |
|
|
|
(283 |
) |
Proceeds from issue of new loans |
|
534 |
|
|
|
1,550 |
|
Repayment of loans and leases payable |
|
(3,546 |
) |
|
|
(15,884 |
) |
Interest paid |
|
(3,883 |
) |
|
|
(5,188 |
) |
Net cash used from financing
activities |
$ |
(6,895 |
) |
|
$ |
(19,805 |
) |
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
during the year |
|
(489 |
) |
|
|
(1,510 |
) |
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of
the year |
|
7,215 |
|
|
|
8,506 |
|
|
|
|
|
|
|
|
|
Effect of foreign exchange adjustment |
|
(175 |
) |
|
|
219 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of the
year |
$ |
6,551 |
|
|
$ |
7,215 |
|
|
|
|
|
|
|
|
|
ABOUT THE COMPANY
We are an international provider
of branded casino and hospitality services, focused on markets in
Latin America. Our mission is to "create extraordinary experiences
for our guests."Additional information about the Group is available
at www.thunderbirdresorts.com.
Cautionary Notice: Cautionary
Notice: The Annual Report referred to in 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 in the Annual Report, including without
limitation, statements regarding potential revenue and future plans
and objectives of Thunderbird 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 Thunderbird'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 Thunderbird's documents filed from time-to-time with the
Euronext Amsterdam and other regulatory authorities. Included in
the Annual Report are certain "non-IFRS financial measures," which
are measures of Thunderbird's historical or estimated future
performance that are different from measures calculated and
presented in accordance with IFRS, within the meaning of applicable
Euronext Amsterdam rules, that are useful to investors. These
measures include (i) Property EBITDA consists of income from
operations before depreciation and amortization, write-downs,
reserves and recoveries, project development costs, corporate
expenses, corporate management fees, merger and integration costs,
income/(losses) on interests in non-consolidated affiliates and
amortization of intangible assets. Property EBITDA is a
supplemental financial measure we use to evaluate our country-level
operations. (ii) Adjusted EBITDA represents net earnings before
interest expense, income taxes, depreciation and amortization,
equity in earnings of affiliates, minority interests, development
costs, and gain on refinancing and discontinued operations.
Adjusted EBITDA is a supplemental financial measure we use to
evaluate our overall operations. Property EBITDA and Adjusted
EBITDA are supplemental financial measures used by management, as
well as industry analysts, to evaluate our operations. However,
Property and Adjusted EBITDA should not be construed as an
alternative to income from operations (as an indicator of our
operating performance) or to cash flows from operating activities
(as a measure of liquidity) as determined in accordance with
generally accepted accounting principles.
Contacts:
Thunderbird Resorts Inc.
Peter LeSar
Chief Financial Officer
(507) 223-1234
plesar@thunderbirdresorts.com