ZURICH, Switzerland, April 29, 2018 (GLOBE
NEWSWIRE) -- Thunderbird Resorts Inc.
("Thunderbird") (FSE:4TR) and (Euronext:TBIRD) is pleased to announce
that its 2017 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 2017 Annual Report is intended to comply with the
rules and regulations set forth by the AFM and the Euronext
Amsterdam.
Copies of the 2017 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 upon request 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
2017 Annual Report the entirety of which can be found on our
website at www.thunderbirdresorts.com.
LETTER FROM
CEO
Dear Shareholders and
Investors:
Below is an update summarizing the Group's
performance and progress through December 31, 2017:
1. PERFORMANCE UNDER our
previously-stated goals
A. Increase in our
EBITDA1: Adjusted
EBITDA (after deducting Corporate-level expenses) was $3.82 million
in 2017 as compared to $3.14 million in 2016, or an improvement of
$682 thousand or 21.7%.
B. Improve our Profit /
(Loss): Our Loss was -$4.65 million in 2017 as compared to
-$6.52 million in 2016, or an improvement of $1.87 million or
28.6%.
C. Increase in our Net
Debt: Net debt was $30.2 million as of December 31, 2017, as
compared to $29.3 million at the end of the previous quarter
September 30, 2017, or an increase of $895 thousand or 3.1%. During
2017, the Group: a) Added secured debt to complete 2 new gaming
venues in Nicaragua that started operations in Q4 2017; b)
Refinanced and added working capital debt at the Corporate level;
and c) Refinanced Peru debt, which enabled the Group to improve
cash flow at the Peru level.
2. PERFORMANCE ON ASSET
SALES
In our September 21, 2016, Annual General and
Special Shareholders' Meeting, shareholders approved Special
Resolutions that, among other items, authorized the Board of
Directors to sell "any or all remaining assets of the Corporation
in such amounts and at such times as determined by the Board of
Directors."
The Group has made progress on this goal with the
sale of our Peruvian gaming operations in April 2018 to Sun Dreams
S.A. of Chile for $26 million.
Group gross debt by the end of Q2 2018 is expected
to reduce from approximately $32 million as of December 31, 2017,
to approximately $15 million based on debt pay down from the recent
asset sale in Peru announced in April 2018.
The Group continues to evaluate opportunities for
improving financial results and for providing liquidity to
shareholders via asset sales. We will keep you informed as
there are material events and progress.
Salomon Guggenheim
Chief Executive Officer and President
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 less "Corporate
expenses", which are the expenses of operating the parent company
and its non-operating subsidiaries and affiliates.
GROUP OVERVIEW
Below consolidated profit / (loss) summary for the
twelve months ended December 31, 2017, as compared with the same
period of 2016. In summary, Group revenue decreased by $2.4
million or 6.3%, while adjusted EBITDA increased by $682 thousand
or 21.7% as a result of aggressive cost efficiency at the country
and corporate levels.
Consolidated Loss for the
period is $4.5 million, an improvement of $2 million
compared to 2016 results.
(In thousands) |
|
|
|
|
|
Twelve months
ended |
|
|
|
December 31 |
|
% |
|
|
2017 |
|
|
2016 |
|
Variance |
change |
Net
gaming wins |
$ |
30,211 |
|
$ |
31,788 |
|
$ |
(1,577 |
) |
-5.0 |
% |
Food
and beverage sales |
|
2,552 |
|
|
2,850 |
|
|
(298 |
) |
-10.5 |
% |
Hospitality and other sales |
|
3,186 |
|
|
3,725 |
|
|
(539 |
) |
-14.5 |
% |
Total revenues |
|
35,949 |
|
|
38,363 |
|
|
(2,414 |
) |
-6.3 |
% |
|
|
|
|
|
Promotional allowances |
|
4,881 |
|
|
4,949 |
|
|
(68 |
) |
-1.4 |
% |
Property, marketing and administration |
|
25,045 |
|
|
27,279 |
|
|
(2,234 |
) |
-8.2 |
% |
Property EBITDA |
|
6,023 |
|
|
6,135 |
|
|
(112 |
) |
-1.8 |
% |
Corporate Expenses |
|
2,201 |
|
|
2,994 |
|
|
(793 |
) |
-26.5 |
% |
Adjusted EBITDA |
|
3,822 |
|
|
3,141 |
|
|
681 |
|
21.7 |
% |
|
|
|
|
|
Property EBITDA as a percentage of revenues |
|
10.6 |
% |
|
8.2 |
% |
|
|
Depreciation and amortization |
|
3,175 |
|
|
2,982 |
|
|
193 |
|
6.5 |
% |
Interest and financing costs, net |
|
3,847 |
|
|
3,262 |
|
|
585 |
|
17.9 |
% |
Management fee attributable to non-controlling interest |
|
3 |
|
|
20 |
|
|
(17 |
) |
-85.0 |
% |
Project development |
|
98 |
|
|
- |
|
|
98 |
|
0.0 |
% |
Foreign exchange loss |
|
254 |
|
|
179 |
|
|
75 |
|
41.9 |
% |
Other
losses |
|
126 |
|
|
493 |
|
|
(367 |
) |
-74.4 |
% |
Loss
from equity investee |
|
81 |
|
|
1,560 |
|
|
(1,479 |
) |
-94.8 |
% |
Income
taxes |
|
888 |
|
|
1,161 |
|
|
(273 |
) |
-23.5 |
% |
Loss for the period from continuing
operations |
$ |
(4,650 |
) |
$ |
(6,516 |
) |
$ |
1,866 |
|
-28.6 |
% |
|
|
|
|
|
|
|
|
|
|
Group debt: Below is the
Group's Gross debt and Net debt on December 31, 2017.
(In thousands) |
|
|
|
Dec-17 |
Sep-17 |
Borrowings |
$ |
31,749 |
$ |
31,919 |
Obligations under leases and hire purchase contracts |
|
378 |
|
468 |
|
|
|
Gross Debt |
$ |
32,127 |
$ |
32,387 |
Less:
cash and cash equivalents (excludes restricted cash) |
|
1,937 |
|
3,092 |
Net Debt |
$ |
30,190 |
$ |
29,295 |
|
|
|
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 a
$327 thousand variance with the total principal balance below.
Below, the Group estimates its gross debt schedule
effective as of December 31, 2017. Group gross debt by
the end of Q2 2018 is expected to reduce to the range of $15
million based on debt pay down from the recent asset sale in Peru
announced in April 2018.
|
|
|
|
|
|
|
|
Principal Balance |
|
2018 |
|
2019 |
|
2020 |
|
2021 |
|
2022 |
Thereafter |
Total |
Corporate |
$ |
14,982,700 |
$ |
1,375,026 |
$ |
1,534,143 |
$ |
1,711,672 |
$ |
151,280 |
$ |
- |
$ |
19,754,821 |
Peru |
|
1,459,765 |
|
1,179,143 |
|
1,272,725 |
|
1,376,783 |
|
1,488,544 |
|
4,130,384 |
|
10,907,344 |
Nicaragua |
|
491,171 |
|
561,158 |
|
204,761 |
|
61,085 |
|
67,067 |
|
407,510 |
|
1,792,752 |
Total |
$ |
16,933,636 |
$ |
3,115,327 |
$ |
3,011,629 |
$ |
3,149,540 |
$ |
1,706,891 |
$ |
4,537,894 |
$ |
32,454,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Payment |
|
2018 |
|
2019 |
|
2020 |
|
2021 |
|
2022 |
Thereafter |
Total |
Corporate |
$ |
1,537,620 |
$ |
456,979 |
$ |
297,863 |
$ |
120,334 |
$ |
1,387 |
$ |
- |
$ |
2,414,183 |
Peru |
|
802.951 |
|
708,963 |
|
613,530 |
|
506,938 |
|
395,177 |
|
421,943 |
|
3,449,502 |
Nicaragua |
|
162,870 |
|
110,815 |
|
65,308 |
|
47,649 |
|
41,668 |
|
54,596 |
|
482,906 |
Total |
$ |
2,503,441 |
$ |
1,276,757 |
$ |
976,701 |
$ |
674,921 |
$ |
438,232 |
$ |
476,539 |
$ |
6,346,591 |
|
|
|
|
|
|
|
|
RISK MANAGEMENT
For more detail on Risk Factors, see Chapter 8 of
the 2017 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 12 months from
the filing of this 2017 Annual Report. 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. 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
12-month period following the filing date of this 2017 Annual
Report; (ix) ability to re-amortize and unsecured lenders; (x)
level of probability of refinancing of secured debt; (xi)
liquidation of undeveloped and therefore non-performing real estate
assets that have been held for sale; and (xii) level of interest of
third parties in the acquisition of certain operating assets, and
status of genuine progress and probability of closing within the
Going Concern period. The Directors have also considered
certain critical factors that might affect continuing operations,
as follows:
- Special Resolution: On September 21, 2016,
the Group's shareholders approved a special resolution that, among
other items, authorized the Board of Directors of the Corporate to
sell "any or all remaining assets of the Corporation in such
amounts and at such times as determined by the Board of
Directors." This resolution facilitates the sale of any one
or any combination of assets required to support maintaining of a
going concern by the Group.
- Sellable Pricing of Assets; Asset Sale Schedules
and Re-financing Scenarios: The Group now has sufficient
market feedback, including offers for certain key assets, which
have enabled the Group to incorporate market-determined pricing
into its models; The Group has evaluated the progress of each
transaction that it is working on and has looked at all reasonable
scenarios for the combination and timing of different transactions
in conjunction with sellable pricing.
- Secured debt Refinancing and Cash Flow: Debt
service obligations continue to be a significant part of the
Group's outflow.
- Corporate Expense and Cash Flow: Corporate
expense has decreased materially in recent years, and continues to
decrease, but still must accommodate for compliance as a public
company.
- Liquidity and Working Capital: As of the date of
publication of this 2017 Annual Report, the Group forecasts
operating with higher levels of reserves and working capital
through the end of 2018 as compared to the previous year.
Certain scenarios in relation to asset sales will not create
working capital, while others will. Selling all or virtually
all Group real estate and reverting cash flow will be critical to
creating a healthy level of working capital reserves for periods
beyond the Going Concern period.
Considering the above, Management and Directors
are satisfied that the consolidated Group has adequate resources to
continue as a going concern for at least the 12 months following
the filing date of this report. 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, 2017
|
|
2017 |
|
|
2016 |
|
|
|
|
Assets |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment (Note 10) |
$ |
20,690 |
|
$ |
21,456 |
Investment accounted for using the equity method (Note 27) |
|
2,623 |
|
|
2,758 |
Intangible assets (Note 9) |
|
5,930 |
|
|
5,912 |
Deferred tax assets (Note 8) |
|
218 |
|
|
185 |
Trade
and other receivables (Note 12) |
|
1,441 |
|
|
1,566 |
Due
from related parties (Note 20) |
|
42 |
|
|
42 |
Total
non-current assets |
|
30,944 |
|
|
31,919 |
|
|
|
|
Current assets |
|
|
|
Trade
and other receivables (Note 12) |
|
901 |
|
|
792 |
Due
from related parties (Note 20) |
|
1,849 |
|
|
1,804 |
Inventories (Note 13) |
|
396 |
|
|
480 |
Restricted cash (Note 14) |
|
1,973 |
|
|
1,348 |
Cash
and cash equivalents (Note 14) |
|
1,937 |
|
|
1,519 |
Total
current assets |
|
7,056 |
|
|
5,943 |
|
|
|
|
Total assets |
$ |
38,000 |
|
$ |
37,862 |
|
|
|
|
|
|
|
|
Reference to certain accompanying notes in this
Press Release are contained n the 2017 Annual Report and are an
integral part of the consolidated financial statements as presented
therein.
THUNDERBIRD RESORTS,
INC.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
(Expressed in thousands of United States dollars)
For the year ended December 31, 2017
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
Equity and liabilities |
|
|
|
|
|
|
|
Capital and reserves |
|
|
|
Share
capital (Note 18) |
|
111,721 |
|
|
|
110,563 |
|
Retained earnings |
|
(117,188 |
) |
|
|
(117,676 |
) |
Translation reserve |
|
(5,384 |
) |
|
|
(5,429 |
) |
Equity
attributable to equity holders of the parent |
|
(10,851 |
) |
|
|
(6,542 |
) |
Non-controlling interest |
|
2,735 |
|
|
|
2,266 |
|
Total
equity |
|
(8,116 |
) |
|
|
(4,276 |
) |
|
|
|
|
Non-current
liabilities |
|
|
|
Borrowings (Note 16) |
|
15,272 |
|
|
|
16,005 |
|
Obligations under leases and hire purchase contracts (Note 21) |
|
6 |
|
|
|
10 |
|
Deferred tax liabilities (Note 8) |
|
115 |
|
|
|
21 |
|
Provisions (Note 17) |
|
1,756 |
|
|
|
1,688 |
|
Trade
and other payables (Note 15) |
|
349 |
|
|
|
356 |
|
Total
non-current liabilities |
|
17,498 |
|
|
|
18,080 |
|
|
|
|
|
Current liabilities |
|
|
|
Trade
and other payables (Note 15) |
|
8,394 |
|
|
|
7,633 |
|
Due to
related parties (Note 20) |
|
895 |
|
|
|
1,301 |
|
Borrowings (Note 16) |
|
16,477 |
|
|
|
12,499 |
|
Obligations under leases and hire purchase contracts (Note 21) |
|
372 |
|
|
|
802 |
|
Other
financial liabilities (Note 24) |
|
1,205 |
|
|
|
419 |
|
Current tax liabilities |
|
365 |
|
|
|
442 |
|
Provisions (Note 17) |
|
910 |
|
|
|
962 |
|
Total
current liabilities |
|
28,618 |
|
|
|
24,058 |
|
|
|
|
|
Total
liabilities |
|
46,116 |
|
|
|
42,138 |
|
|
|
|
|
Total equity and liabilities |
$ |
38,000 |
|
|
$ |
37,862 |
|
|
|
|
|
The consolidated financial statements were
approved by the Board of Directors on April 26, 2018.
THUNDERBIRD RESORTS,
INC.
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
(Expressed in thousands of United States dollars)
For the year ended December 31, 2017
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
Net
gaming wins |
$ |
30,211 |
|
|
$ |
31,788 |
|
Food,
beverage and hospitality sales |
|
5,738 |
|
|
|
6,575 |
|
Total revenue |
|
35,949 |
|
|
|
38,363 |
|
|
|
|
|
Cost
of goods sold |
|
(14,243 |
) |
|
|
(15,565 |
) |
Gross profit |
|
21,706 |
|
|
|
22,798 |
|
|
|
|
|
Other operating costs |
|
|
|
Operating, general and administrative |
|
(17,887 |
) |
|
|
(19,677 |
) |
Project development |
|
(98 |
) |
|
|
- |
|
Depreciation and amortization |
|
(3,175 |
) |
|
|
(2,982 |
) |
Other gains and (losses) (Note 5) |
|
(126 |
) |
|
|
(493 |
) |
Operating loss |
|
420 |
|
|
|
(354 |
) |
|
|
|
|
Share
of loss from equity accounted investments |
|
(81 |
) |
|
|
(1,560 |
) |
|
|
|
|
Financing |
|
|
|
Foreign exchange loss |
|
(254 |
) |
|
|
(179 |
) |
Financing costs (Note 7) |
|
(3,980 |
) |
|
|
(3,410 |
) |
Financing income (Note 7) |
|
143 |
|
|
|
164 |
|
Other interest (Note 7) |
|
(10 |
) |
|
|
(16 |
) |
Finance costs, net |
|
(4,101 |
) |
|
|
(3,441 |
) |
|
|
|
|
Loss before tax |
|
(3,762 |
) |
|
|
(5,355 |
) |
|
|
|
|
Income taxes expense (Note 8) |
|
|
|
Current |
|
(820 |
) |
|
|
(918 |
) |
Deferred |
|
(68 |
) |
|
|
(243 |
) |
Income
tax expense |
|
(888 |
) |
|
|
(1,161 |
) |
|
|
|
|
Loss for the year from continuing
operations |
$ |
(4,650 |
) |
|
$ |
(6,516 |
) |
|
|
|
|
(Loss)
/ gain for the year from discontinued operations (Note 11) |
|
- |
|
|
|
(261 |
) |
|
|
|
|
(Loss) / Profit for the year |
$ |
(4,650 |
) |
|
$ |
(6,777 |
) |
|
|
|
|
|
|
|
|
Reference to certain accompanying notes in this
Press Release are contained n the 2017 Annual Report and are an
integral part of the consolidated financial statements as presented
therein
THUNDERBIRD RESORTS,
INC.
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (continued)
(Expressed in thousands of United States dollars)
For the year ended December 31, 2017
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
Other comprehensive income (amounts,
which will be recycled) |
|
|
Exchange differences arising on the translation of foreign
operations |
$ |
45 |
|
|
$ |
(220 |
) |
Other comprehensive income for the year |
|
45 |
|
|
|
(220 |
) |
|
|
|
|
Total comprehensive income for the year |
$ |
(4,605 |
) |
|
$ |
(6,997 |
) |
|
|
|
|
Loss for the year attributable to: |
|
|
|
Owners
of the parent |
|
(5,119 |
) |
|
|
(7,132 |
) |
Non-controlling interest |
|
469 |
|
|
|
355 |
|
|
$ |
(4,650 |
) |
|
$ |
(6,777 |
) |
|
|
|
|
Total comprehensive income attributable
to: |
|
|
|
Owners
of the parent |
|
(5,074 |
) |
|
|
(7,352 |
) |
Non-controlling interest |
|
469 |
|
|
|
355 |
|
|
$ |
(4,605 |
) |
|
$ |
(6,997 |
) |
|
|
|
|
Basic loss per share (in $): (Note 18) |
|
|
|
Loss
from continuing operations |
|
(0.21 |
) |
|
|
(0.29 |
) |
(Loss)
/ gain from discontinued operations |
|
- |
|
|
|
(0.01 |
) |
Total |
|
(0.21 |
) |
|
|
(0.30 |
) |
|
|
|
|
Diluted loss per share (in $): (Note 18) |
|
|
|
Loss
from continuing operations |
|
(0.21 |
) |
|
|
(0.29 |
) |
(Loss)
/ gain from discontinued operations |
|
- |
|
|
|
(0.01 |
) |
Total |
|
(0.21 |
) |
|
|
(0.30 |
) |
|
|
|
|
Reference to certain accompanying notes in this
Press Release are contained n the 2017 Annual Report and are an
integral part of the consolidated financial statements as presented
therein.
THUNDERBIRD RESORTS,
INC.
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
(Expressed in thousands of United States dollars)
For the year ended December 31, 2017
|
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, 2016 |
$ |
110,456 |
$ |
89 |
|
$ |
(5,209 |
) |
$ |
(104,633 |
) |
$ |
703 |
|
$ |
1,911 |
$ |
2,614 |
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners: |
|
|
|
|
|
|
|
|
Issue
of new shares |
|
107 |
|
- |
|
|
- |
|
|
- |
|
|
107 |
|
|
- |
|
107 |
|
|
Options cancellation and expiration |
|
- |
|
(89 |
) |
|
- |
|
|
89 |
|
|
- |
|
|
- |
|
- |
|
|
|
$ |
107 |
$ |
(89 |
) |
$ |
- |
|
$ |
89 |
|
$ |
107 |
|
$ |
- |
$ |
107 |
|
|
|
|
|
|
|
|
|
|
|
Profit
for the year |
|
- |
|
- |
|
|
- |
|
|
(7,132 |
) |
|
(7,132 |
) |
|
355 |
|
(6,777 |
) |
|
|
|
|
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
Exchange differences arising on |
|
|
|
|
|
|
|
|
translation of foreign operations |
|
- |
|
- |
|
|
(220 |
) |
|
- |
|
|
(220 |
) |
|
- |
|
(220 |
) |
|
Total
comprehensive income for the year |
|
- |
|
- |
|
|
(220 |
) |
|
(7,132 |
) |
|
(7,352 |
) |
|
355 |
|
(6,997 |
) |
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2016 |
$ |
110,563 |
$ |
- |
|
$ |
(5,429 |
) |
$ |
(111,676 |
) |
$ |
(6,542 |
) |
$ |
2,266 |
$ |
(4,276 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
Share options reserve |
Currency translation reserve |
Retained earnings |
Total |
Non-controlling interest |
Total equity |
|
Balance at January 1, 2017 |
$ |
110,563 |
$ |
- |
|
$ |
(5,429 |
) |
$ |
(111,676 |
) |
$ |
(6,542 |
) |
$ |
2,266 |
$ |
(4,276 |
) |
|
|
|
|
|
|
|
|
|
|
Transactions with owners: |
|
|
|
|
|
|
|
|
Issue
of new shares |
|
566 |
|
- |
|
|
- |
|
|
- |
|
|
566 |
|
|
- |
|
566 |
|
|
Shares
buy-back |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
|
Treasury shares issued as payment |
|
592 |
|
- |
|
|
- |
|
|
- |
|
|
199 |
|
|
- |
|
199 |
|
|
Options cancellation and expiration |
|
- |
|
- |
|
|
- |
|
|
(393 |
) |
|
- |
|
|
- |
|
- |
|
|
|
$ |
1,158 |
$ |
- |
|
$ |
- |
|
$ |
(393 |
) |
$ |
765 |
|
$ |
- |
$ |
765 |
|
|
|
|
|
|
|
|
|
|
|
Profit
for the year |
|
- |
|
- |
|
|
- |
|
|
(5,119 |
) |
|
(5,119 |
) |
|
469 |
|
(4,650 |
) |
|
|
|
|
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
Exchange differences arising on |
|
|
|
|
|
|
|
|
translation of foreign operations |
|
- |
|
- |
|
|
45 |
|
|
- |
|
|
45 |
|
|
- |
|
45 |
|
|
Total
comprehensive income for the year |
|
- |
|
- |
|
|
45 |
|
|
(5,119 |
) |
|
(5,074 |
) |
|
469 |
|
(4,605 |
) |
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2017 |
$ |
111,721 |
$ |
- |
|
$ |
(5,384 |
) |
$ |
(117,188 |
) |
$ |
(10,851 |
) |
$ |
2,735 |
$ |
(8,116 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reference to certain accompanying notes in this
Press Release are contained n the 2017 Annual Report and are an
integral part of the consolidated financial statements as presented
therein.
THUNDERBIRD RESORTS,
INC.
CONSOLIDATED STATEMENT OF CASH
FLOWS
(Expressed in thousands of United States dollars)
For the year ended December 31, 2017
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
Cash flow from operating activities |
|
|
|
Loss
for the year |
$ |
(4,650 |
) |
|
$ |
(6,516 |
) |
Adjustments for: |
|
|
|
Depreciation and amortization |
|
3,175 |
|
|
|
2,982 |
|
Unrealized foreign exchange |
|
(20 |
) |
|
|
(334 |
) |
Increase / (decrease) in provision |
|
(14 |
) |
|
|
133 |
|
Bad debt expense |
|
45 |
|
|
|
76 |
|
Other losses / (gains) |
|
20 |
|
|
|
205 |
|
Gain on derivative financial instruments |
|
2 |
|
|
|
4 |
|
Share based payments |
|
1,158 |
|
|
|
107 |
|
Finance income |
|
(143 |
) |
|
|
(164 |
) |
Finance cost |
|
3,980 |
|
|
|
3,410 |
|
Other interests |
|
10 |
|
|
|
16 |
|
Disposal of equity accounted investments |
|
- |
|
|
|
(1,454 |
) |
Results from equity accounted investments |
|
81 |
|
|
|
1,560 |
|
Tax expenses |
|
888 |
|
|
|
1,161 |
|
Net change in non-cash working capital
items |
|
|
|
Decrease in trade, prepaid and other receivables |
|
54 |
|
|
|
973 |
|
Decrease in inventory |
|
88 |
|
|
|
(7 |
) |
Decrease in trade payables and accrued liabilities |
|
215 |
|
|
|
1,161 |
|
Cash (used) from operations |
|
4,889 |
|
|
|
3,313 |
|
Total tax paid |
|
(884 |
) |
|
|
(328 |
) |
Net
cash generated by continuing operations |
|
4,005 |
|
|
|
2,985 |
|
Net
cash generated by discontinued operations |
|
- |
|
|
|
- |
|
Net cash from operating activities |
$ |
4,005 |
|
|
$ |
2,985 |
|
|
|
|
|
Reference to certain accompanying notes in this
Press Release are contained n the 2017 Annual Report and are an
integral part of the consolidated financial statements as presented
therein.
THUNDERBIRD RESORTS,
INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(continued)
(Expressed in thousands of United States dollars)
For the year ended December 31, 2017
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
Cash flow from investing activities |
|
|
|
Expenditure on property, plant and equipment |
|
(2,296 |
) |
|
|
(1,082 |
) |
Proceeds on sale of property, plant and equipment |
|
37 |
|
|
|
1,367 |
|
Proceeds on sale of Costa Rica Joint Venture |
|
- |
|
|
|
1,527 |
|
Interest received |
|
143 |
|
|
|
164 |
|
Net cash used from (used) investing
activities |
$ |
(2,116 |
) |
|
$ |
1,976 |
|
|
|
|
|
Cash flow from financing activities |
|
|
|
Proceeds from issue of new loans |
|
14,649 |
|
|
|
150 |
|
Repayment of loans and leases payable |
|
(12,297 |
) |
|
|
(4,396 |
) |
Interest paid |
|
(2,921 |
) |
|
|
(2,170 |
) |
Net cash used from financing activities |
$ |
(569 |
) |
|
$ |
(6,416 |
) |
|
|
|
|
Net change in cash and cash equivalents during the
year |
|
1,320 |
|
|
|
(1,455 |
) |
|
|
|
|
Cash and cash equivalents, beginning of the
year |
|
2,867 |
|
|
|
4,403 |
|
|
|
|
|
Effect
of foreign exchange adjustment |
|
(277 |
) |
|
|
(80 |
) |
|
|
|
|
Cash and cash equivalents, end of the
year |
$ |
3,910 |
|
|
$ |
2,867 |
|
|
|
|
|
Reference to certain accompanying notes in this
Press Release are contained in the 2017 Annual Report and are an
integral part of the consolidated financial statements as presented
therein.
SUBSEQUENT EVENTS
Sale of Peru Gaming Operations: On April 11,
2018, the Group sold its entire economic interest and management
rights in its four gaming operations plus the commercial real
estate locale for its Fiesta Casino in Peru to Sun Dreams S.A. of
Chile. The enterprise valuation for these gaming operations
including real estate was $26 million. From the gross proceeds of
the sale, the Group expects to reduce its gross debt from
approximately $32 million as of December 31, 2017, to approximately
$15 million by the end of May 2018 (considers the new loan entered
into as described in the next paragraph). The remaining gross
proceeds have been allocated to taxes from the transaction,
settlement of a tax case, hold backs and reserves. The Group
continues to own a mixed-use, 19-story tower in Lima, Peru,
comprised of a 66 all-suite hotel, approximately 5,400 m2 of
leasable offices and 158 of underground parking spaces.
Debt Reduction and Ongoing Refinancing of Existing
Unsecured Lenders: As stated above, as of the date of publication
of this 2017 Annual Report, the Group is in the process of paying
down a significant portion of its gross debt comprised primarily of
secured lenders. Also, at the date of close of this 2017 Annual
Report, the Group is negotiating with unsecured lenders to defer
payments against liquidity events. By the end of Q2 2018, the Group
expects the debt balances of these unsecured lenders to total
approximately $8.3 million of the approximate $15 million in total
gross debt of the Group.
New Financing with BBVA: Simultaneous to the close
with Sun Dreams S.A., on April 11, 2018, the Group also entered
into a new loan agreement in the amount of $4.8 million with BBVA
in Peru. The loan is guaranteed by the Group's remaining real
estate in Peru. The purpose of the loan is to increase the amount
of available funds for debt pay down at the Corporate level, which
have higher interest rates and shorter amortization periods as
compared to the secured BBVA loan. The new BBVA loan is also
secured by the ongoing cash flows generated from our 66 all-suite
hotel, approximately 5,400 m2 of leasable offices and 158 of
underground parking spaces.
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.
Contact: Peter Lesar, Chief Financial
Officer . Phone: (507) 223-1234
. Email: plesar@thunderbirdresorts.com
Cautionary Notice:
Cautionary Notice: The 2017 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 2017
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 2017 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.