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 GuggenheimChief 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.
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