PANAMA, REPUBLIC OF
PANAMA--(Marketwired - Aug. 30, 2015) - Thunderbird Resorts Inc. ("Thunderbird")
(FRANKFURT:4TR)(EURONEXT:TBIRD) is pleased to announce
that its 2015 Half-year report has 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 Half-year report is intended
to comply with the rules and regulations set forth by the AFM and
the Euronext Amsterdam.
Copies of the Half-year 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
2015 Half-year Report the entirety of which can be found on our
website at www.thunderbirdresorts.com.
LETTER FROM
CEO
In the CEO Letter to Shareholders published in the
2014 Annual Report, the Group stated certain goals to achieve
profitability and build growing and sustainable cash flows. Below
is an update on our progress.
PERFORMANCE UNDER OUR FOUR STATED
GOALS1
1. Development: We committed to "exit"
under-performing businesses and invest proceeds to increase cash
flow by either paying down high-amortizing debt or investing into
our remaining markets. Below are development initiatives from the
first half of 2015.
A. On February 25, 2015, the Group sold its
economic interest and management rights in its seven casinos in
Costa Rica. We made a strategic decision to exit a mature operation
in which we only owned an approximate 50% stake. The net cash
received for the Group's approximate 50% share was approximately
$8.1 million. The gain from the sale was approximately $6.7
million. We continue to own real estate in Costa Rica with an
appraised value to our 50% of approximately $14.9 million, which
real estate is free and clear of debt and is being held for sale.
See page 14 of the full 2015 Half-year Report for more information
on the sale of our Costa Rica operations.
B. On April 22, 2015, the Group opened a 1,200
square meters entertainment venue in Managua, Nicaragua with 111
slot machines, 21 gaming table positions and 110 F&B positions.
Based on the first three full months of operation, this property is
generating on an annualized basis $150 thousand in property EBITDA
as compared to -$23 thousand of property EBITDA in all of 2014 for
the Pharaoh's Holiday Inn that it replaced. See page 12 of the full
2015 Half-year Report for more information on Nicaragua.
2. Grow EBITDA2 in
Continuing Operations: Property EBITDA increased by 29% and
adjusted EBITDA increased by 98.6% in Half-year 2015 as compared to
Half-year 2014. The bullets below describe how these results were
achieved as well as the process underway to continue to improve
both property and adjusted EBITDA in the coming periods.
A. Group revenue decreased by $0.3 million or
1.5% on a USD basis. Under a currency neutral analysis (in which
the exchange rate for Half-year 2015 would be applied to both
periods and thus the impact of Forex swings is removed from the
analysis), Group revenue would actually have grown by $1.4 million
(7.2% growth). The US dollar has gained value against currencies
around the globe, including against our operating currencies.
Regardless, based on currency neutral analysis, it is clear that
our underlying fundamentals continue to improve.
B. Country-level promotional allowances and
property, marketing and administration expense were reduced by
$1.2 million through Half-year 2015 as compared to the same period
in 2014. A significant portion of the reduction was accomplished
through personnel restructuring that added approximately $300
thousand in severance expense, meaning that our net reduction of
promotional allowances and property, marketing and administration
expense was actually closer to $1.5 million.
C. Corporate expenses remained flat in
Half-year 2015 as compared to Half-year 2014. The Group has,
however, started implementation of a plan to reduce Corporate
expense from the $4.4 million annual run rate at Half-year 2015 to
an approximate $3.0 million run rate by Q1 2016 and to an
approximate $2.5 million run rate by Q4 2016. The first steps we
have undertaken, which should achieve approximately $935 thousand
in Corporate expense savings annually, are as follows:
i. Through Half-year 2015 the Group
eliminated certain Corporate employee positions, which should
reduce ongoing Corporate expense by approximately $290 thousand
annually.
ii. Subsequent to Half-year 2015 the Group: a) Restructured
and bought out certain officer contracts; and b) Notified certain
other employees that their positions would be eliminated between
the periods Q4 2015 and Q1 2016. Collectively, these efforts should
further reduce Corporate expense by approximate $645K annually as
described more fully on page 15 of the full 2015 Half-year
Report.
3. Reduce Debt and / or Refinance Remaining
Debt: We have committed to reduce debt and / or refinance our
remaining debt under more favorable terms. The goal is to improve
cash flow. Below are the results through Half-year 2015.
A. Gross debt has been reduced to $35.5 million on
June 30, 2015 as compared to $46.2 million on December 31, 2014.
Net debt (gross debt less cash and cash equivalents) has been
reduced to $27.8 million on June 30, 2015 as compared to $41.3
million on December 31, 2014.
B. As of this date, we continue to seek
refinancing of our secured Peru-related debt.
4. Increase Shareholder Value: We continue to
believe that our share price still does not reflect the intrinsic
value of the company. We continue to evaluate our capital
structure, the sale of part or all of our approximately $75 million
in real estate (based on appraised values) and other strategic
alternatives to optimize value for shareholders. The goal of any
material transaction would be to "right size" cash flow and to
build shareholder value by investing in growth.
We will keep you informed as there are material
events and progress.
Salomon Guggenheim
Chief Executive Officer and President
August 30, 2015
1. Unless
otherwise stated, all figures reported herein are in USD and report
the results of those businesses that were continuing as of June 30,
2015 as compared to those same businesses through the six months
ended June 30, 2014 or through year-end 2014. Our stated goals have
evolved slightly over the last year, but are materially the same as
set forth in previous reports.
2. "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 is our consolidated profit / (loss) summary
for our continuing operations for the six months ended June 30,
2015 as compared with the same period of 2014. In summary, Group
revenue decreased by $0.3 million or 1.5% on a USD basis (see
"Forex" note below), but adjusted EBITDA increased by $0.9 million
or 98.6% due to aggressive efficiency programs that have led to a
material ongoing reduction of country-level and Corporate expenses.
See notes on certain key items below.
It should be noted that, when including our $6.7
million gain from discontinued operations, which in this case
refers to our sold Costa Rica operations as described on page 14,
our gain through Half-year 2015 was approximately $4.3 million. See
Chapter 4, 2015 Interim Condensed Consolidated Financial Statements
and Notes, for more information.
|
(In thousands, proportional
consolidation) |
|
|
Six months
ended |
|
|
|
|
|
|
|
|
|
June 30 |
|
|
|
|
|
% |
|
|
|
2015 |
|
|
2014 |
|
|
Variance |
|
|
change |
|
Net
gaming wins |
|
$ |
17,209 |
|
|
$ |
16,786 |
|
|
$ |
423 |
|
|
2.5 |
% |
Food
and beverage sales |
|
|
1,501 |
|
|
|
1,644 |
|
|
|
(143 |
) |
|
-8.7 |
% |
Hospitality and other sales |
|
|
2,313 |
|
|
|
2,909 |
|
|
|
(596 |
) |
|
-20.3 |
% |
Total revenues |
|
|
21,023 |
|
|
|
21,339 |
|
|
|
(316 |
) |
|
-1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Promotional allowances |
|
|
2,282 |
|
|
|
2,226 |
|
|
|
(82 |
) |
|
2.5 |
% |
Property, marketing and administration |
|
|
14,724 |
|
|
|
15,998 |
|
|
|
(1,274 |
) |
|
-8.0 |
% |
Property EBITDA |
|
|
4,017 |
|
|
|
3,115 |
|
|
|
902 |
|
|
29.0 |
% |
Corporate Expenses |
|
|
2,182 |
|
|
|
2,191 |
|
|
|
(9 |
) |
|
-0.4 |
% |
Adjusted EBITDA |
|
|
1,835 |
|
|
|
924 |
|
|
|
911 |
|
|
98.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property EBITDA as a percentage of revenues |
|
|
8.7 |
% |
|
|
4.3 |
% |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,836 |
|
|
|
1,918 |
|
|
|
(82 |
) |
|
-4.3 |
% |
Interest and financing costs, net |
|
|
2,124 |
|
|
|
2,027 |
|
|
|
97 |
|
|
4.8 |
% |
Management fee attributable to non-controlling interest |
|
|
- |
|
|
|
(253 |
) |
|
|
253 |
|
|
-100.0 |
% |
Project development |
|
|
48 |
|
|
|
- |
|
|
|
48 |
|
|
0.0 |
% |
Foreign exchange (gain) / loss |
|
|
466 |
|
|
|
(32 |
) |
|
|
498 |
|
|
-1556.3 |
% |
Share
of loss from equity accounted investments |
|
|
10 |
|
|
|
300 |
|
|
|
(290 |
) |
|
-96.7 |
% |
Other
(gains) / losses |
|
|
(470 |
) |
|
|
(288 |
) |
|
|
(182 |
) |
|
63.2 |
% |
Income
taxes |
|
|
169 |
|
|
|
164 |
|
|
|
5 |
|
|
3.0 |
% |
Loss for the period from continuing
operations |
|
|
(2,348 |
) |
|
|
(2,912 |
) |
|
|
564 |
|
|
-19.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
for the period from continuing operations |
|
|
6,690 |
|
|
|
(201 |
) |
|
|
6,891 |
|
|
-3428.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period from continuing
operations |
|
$ |
4,342 |
|
|
$ |
(3,313 |
) |
|
$ |
7,455 |
|
|
-239.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forex: The strengthening of the US dollar versus
our operating currencies continues to have a material impact on our
as reported profit / (loss) as compared to the same period in 2014.
Under a currency neutral analysis (in which the Half-year 2015
exchange rate would be applied to both periods so as to remove
Forex swings from the analysis), Group revenue would have grown by
$1.4 million (7.2% growth) and adjusted EBITDA would have increased
by approximately $1.2 million (170.6% growth).
|
Group Debt: Below is the
Group's Gross debt and Net debt on June 30, 2015. |
(In thousands; proportional
consolidation) |
|
|
|
|
|
|
|
|
Jun-15 |
|
Mar-15 |
|
Dec-14 |
Borrowings |
|
$ |
34,947 |
|
$ |
37,088 |
|
$ |
43,485 |
Borrowings associated with assets held for sale |
|
|
- |
|
|
- |
|
|
1,890 |
Obligations under leases and hire purchase contracts |
|
|
564 |
|
|
684 |
|
|
780 |
Gross Debt |
|
$ |
36,511 |
|
$ |
37,773 |
|
$ |
46,155 |
|
|
|
|
|
|
|
|
|
|
Less:
cash and cash equivalents (excludes restricted cash) |
|
|
7,755 |
|
|
10,525 |
|
|
4,885 |
Net Debt |
|
$ |
27,756 |
|
$ |
27,248 |
|
$ |
41,270 |
|
|
|
|
|
|
|
|
|
|
Note: Gross debt above is presented net of debt
issuance costs (costs of debt at time of issuance, which are
currently non-cash and amortize over time) which is why there is an
approximate $0.4 million variance as compared to the total
principal balance below. Our reduction in gross debt of
approximately $10.6 million since December 2014 is the result of
the deconsolidation of our sold Costa Rica operations, of
extraordinary debt pay down made with the proceeds from the sale of
those assets and of our scheduled amortization of debt at country
and Group levels.
|
The Group estimates its debt as follows starting in July
2015: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Payment |
|
2015 |
|
2016 |
|
2017 |
|
2018 |
|
2019 |
|
Thereafter |
|
Total |
|
Corporate |
|
$ |
4,046,001 |
|
$ |
5,833,599 |
|
$ |
4,909,213 |
|
$ |
2,513,506 |
|
$ |
1,375,026 |
|
$ |
3,397,095 |
|
$ |
22,074,440 |
|
|
Peru-Related Debt |
|
|
357,968 |
|
|
5,252,363 |
|
|
4,657,041 |
|
|
1,232,413 |
|
|
1,375,026 |
|
|
3,397,095 |
|
|
16,271,905 |
|
|
Dead
Debt |
|
|
3,310,959 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
3,310,959 |
|
|
Others |
|
|
377,074 |
|
|
581,236 |
|
|
252,172 |
|
|
1,281,093 |
|
|
- |
|
|
- |
|
|
2,491,575 |
|
Peru |
|
|
805,648 |
|
|
1,499,542 |
|
|
1,288,639 |
|
|
1,395,824 |
|
|
6,810,756 |
|
|
- |
|
|
11,800,409 |
|
Nicaragua |
|
|
140,007 |
|
|
268,715 |
|
|
269,563 |
|
|
294,887 |
|
|
757,341 |
|
|
329,593 |
|
|
2,060,106 |
Total |
|
$ |
4,991,656 |
|
$ |
7,601,856 |
|
$ |
6,467,415 |
|
$ |
4,204,217 |
|
$ |
8,943,123 |
|
$ |
3,726,687 |
|
$ |
35,934,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Payment |
|
|
2015 |
|
|
2016 |
|
|
2017 |
|
|
2018 |
|
|
2019 |
|
|
Thereafter |
|
|
Total |
Corporate |
|
$ |
1,157,853 |
|
$ |
1,676,919 |
|
$ |
908,049 |
|
$ |
619,272 |
|
$ |
456,979 |
|
$ |
419,584 |
|
$ |
5,238,656 |
|
|
Peru-Related Debt |
|
|
800,706 |
|
|
1,523,014 |
|
|
782,080 |
|
|
599,593 |
|
|
456,979 |
|
|
419,584 |
|
|
4,581,955 |
|
|
Dead
Debt |
|
|
185,274 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
185,274 |
|
|
Others |
|
|
171,873 |
|
|
153,906 |
|
|
125,969 |
|
|
19,679 |
|
|
- |
|
|
- |
|
|
471,426 |
|
Peru |
|
|
475,179 |
|
|
842,535 |
|
|
729,552 |
|
|
620,176 |
|
|
223,950 |
|
|
- |
|
|
2,891,392 |
|
Nicaragua |
|
|
112,525 |
|
|
179,435 |
|
|
147,028 |
|
|
120,439 |
|
|
92,985 |
|
|
30,880 |
|
|
683,292 |
Total |
|
$ |
1,745,557 |
|
$ |
2,698,890 |
|
$ |
1,784,629 |
|
$ |
1,359,886 |
|
$ |
773,914 |
|
$ |
450,464 |
|
$ |
8,813,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RISK MANAGEMENT
For more detail on Risk Factors, see Chapter 5 of
the 2015 Half-year 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
June 30, 2015. 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., including existing unsecured lenders that have
demonstrated willingness to renegotiate debt terms if and as
required; (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 June 30, 2015; (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 Group has adequate resources to continue as
a going concern for at least 18 months following June 30, 2015. For
these reasons, Management and Directors continue to adopt the going
concern basis in preparing the financial statements.
FINANCIAL
STATEMENTS
THUNDERBIRD RESORTS, INC. |
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL
POSITION |
(Expressed in thousands of United States dollars) |
As of June 30, 2015 and December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015 |
|
December 31, 2014 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
Property, plant and equipment (Note 7) |
|
$ |
25,572 |
|
$ |
28,720 |
Investment accounted for using the equity method
(Note16) |
|
|
6,040 |
|
|
6,403 |
Intangible assets |
|
|
6,064 |
|
|
7,783 |
Deferred tax asset |
|
|
491 |
|
|
566 |
Trade and other receivables |
|
|
1,663 |
|
|
1,543 |
Due from related parties (Note 13) |
|
|
64 |
|
|
5,651 |
Total non-current assets |
|
|
39,894 |
|
|
50,666 |
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Trade and other receivables |
|
|
2,170 |
|
|
2,766 |
Due from related parties (Note 13) |
|
|
2,038 |
|
|
1,019 |
Inventories |
|
|
761 |
|
|
738 |
Restricted cash |
|
|
1,561 |
|
|
1,802 |
Cash and cash equivalents |
|
|
7,755 |
|
|
4,749 |
Total current assets |
|
|
14,285 |
|
|
11,074 |
|
|
|
|
|
|
|
Total assets |
|
$ |
54,179 |
|
$ |
61,740 |
|
|
|
|
|
|
|
|
|
THUNDERBIRD RESORTS, INC. |
|
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
(continued) |
|
(Expressed in thousands of United States dollars) |
|
As of June 30, 2015 and December 31, 2014 |
|
|
|
June 30, 2015 |
|
|
December 31, 2014 |
|
|
|
|
|
|
|
|
Equity and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
|
|
|
Share
capital (Note 11) |
|
|
110,240 |
|
|
|
110,144 |
|
Share
option reserve |
|
|
269 |
|
|
|
289 |
|
Retained earnings |
|
|
(102,159 |
) |
|
|
(106,552 |
) |
Translation reserve |
|
|
(3,448 |
) |
|
|
(1,725 |
) |
Equity
attributable to equity holders of the parent |
|
|
4,902 |
|
|
|
2,156 |
|
Non-controlling interest |
|
|
1,740 |
|
|
|
6,404 |
|
Total
equity |
|
|
6,642 |
|
|
|
8,560 |
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
|
|
Borrowings (Note 9) |
|
|
28,714 |
|
|
|
28,532 |
|
Obligations under leases and hire purchase contracts (Note 10) |
|
|
58 |
|
|
|
317 |
|
Deferred tax liabilities |
|
|
73 |
|
|
|
77 |
|
Provisions |
|
|
502 |
|
|
|
1,475 |
|
Trade
and other payables |
|
|
1,603 |
|
|
|
1,318 |
|
Total
non-current liabilities |
|
|
30,950 |
|
|
|
31,719 |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Trade
and other payables |
|
|
6,663 |
|
|
|
6,203 |
|
Due to
related parties (Note 13) |
|
|
1,041 |
|
|
|
2,368 |
|
Borrowings (Note 9) |
|
|
6,234 |
|
|
|
9,763 |
|
Obligations under leases and hire purchase contracts (Note 10) |
|
|
506 |
|
|
|
463 |
|
Other
financial liabilities |
|
|
599 |
|
|
|
615 |
|
Current tax liabilities |
|
|
788 |
|
|
|
821 |
|
Provisions |
|
|
756 |
|
|
|
1,228 |
|
Total
current liabilities |
|
|
16,587 |
|
|
|
21,461 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
|
47,537 |
|
|
|
53,180 |
|
|
|
|
|
|
|
|
|
|
Total equity and liabilities |
|
$ |
54,179 |
|
|
$ |
61,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THUNDERBIRD RESORTS, INC. |
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE
INCOME |
(Expressed in thousands of United States dollars) |
For the six months ended June 30, 2015 |
|
|
Six months
ended |
|
|
|
June 30 (unaudited) |
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
Net gaming wins |
|
$ |
17,209 |
|
|
$ |
16,786 |
|
Food, beverage and hospitality sales |
|
|
3,814 |
|
|
|
4,553 |
|
Total revenue |
|
|
21,023 |
|
|
|
21,339 |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
(7,945 |
) |
|
|
(8,056 |
) |
Gross profit |
|
|
13,078 |
|
|
|
13,283 |
|
|
|
|
|
|
|
|
|
|
Other operating costs |
|
|
|
|
|
|
|
|
|
Operating, general and administrative |
|
|
(11,243 |
) |
|
|
(12,106 |
) |
|
Project development |
|
|
(48 |
) |
|
|
- |
|
|
Depreciation and amortization |
|
|
(1,836 |
) |
|
|
(1,918 |
) |
|
Other
gains and (losses) (Note 5) |
|
|
470 |
|
|
|
288 |
|
Operating profit / (loss) |
|
|
421 |
|
|
|
(453 |
) |
|
|
|
|
|
|
|
|
|
Share of loss from equity accounted investments (Note
16) |
|
|
(10 |
) |
|
|
(300 |
) |
Financing |
|
|
|
|
|
|
|
|
|
Foreign exchange (loss) / gain |
|
|
(466 |
) |
|
|
32 |
|
|
Financing costs (Note 6) |
|
|
(2,217 |
) |
|
|
(2,308 |
) |
|
Financing income (Note 6) |
|
|
106 |
|
|
|
297 |
|
|
Other
interest (Note 6) |
|
|
(13 |
) |
|
|
(16 |
) |
Finance costs, net |
|
|
(2,590 |
) |
|
|
(1,995 |
) |
|
|
|
|
|
|
|
|
|
Loss before tax |
|
|
(2,179 |
) |
|
|
(2,748 |
) |
|
|
|
|
|
|
|
|
|
Income taxes expense |
|
|
|
|
|
|
|
|
|
Current |
|
|
(169 |
) |
|
|
(164 |
) |
|
Deferred |
|
|
- |
|
|
|
- |
|
Income taxes expense |
|
|
(169 |
) |
|
|
(164 |
) |
Loss for the year from continuing
operations |
|
$ |
(2,348 |
) |
|
$ |
(2,912 |
) |
Gain / (loss) for the year from discontinued operations
(Note 8) |
|
|
6,690 |
|
|
|
(201 |
) |
|
|
|
|
|
|
|
|
|
Gain / (loss) for the year |
|
$ |
4,342 |
|
|
$ |
(3,113 |
) |
|
|
|
|
|
|
|
|
|
THUNDERBIRD RESORTS, INC. |
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(continued) |
(Expressed in thousands of United States dollars) |
For the six months ended June 30, 2015 |
|
Six months
ended |
|
|
June 30 (unaudited) |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (amounts, which will be
recycled) |
$ |
(1,723 |
) |
|
$ |
(973 |
) |
|
|
|
|
|
|
|
|
Exchange differences arising on the translation of foreign
operations |
|
|
|
|
|
|
|
Other comprehensive income for the year |
|
(1,723 |
) |
|
|
(973 |
) |
|
|
|
|
|
|
|
|
Total comprehensive income for the year |
$ |
2,619 |
|
|
$ |
(4,086 |
) |
|
|
|
|
|
|
|
|
Gain / (loss) for the year attributable
to: |
|
|
|
|
|
|
|
Owners
of the parent |
|
4,372 |
|
|
|
(3,395 |
) |
Non-controlling interest |
|
(30 |
) |
|
|
282 |
|
|
$ |
4,342 |
|
|
$ |
(3,113 |
) |
|
|
|
|
|
|
|
|
Total comprehensive income attributable
to: |
|
|
|
|
|
|
|
Owners
of the parent |
|
2,649 |
|
|
|
(4,368 |
) |
Non-controlling interest |
|
(30 |
) |
|
|
282 |
|
|
$ |
2,619 |
|
|
$ |
(4,086 |
) |
|
|
|
|
|
|
|
|
Basic loss per share (in $) : (Note 12) |
|
|
|
|
|
|
|
Loss
from continuing operations |
|
(0.10 |
) |
|
|
(0.14 |
) |
Gain /
(loss) from discontinued operations |
|
0.29 |
|
|
|
(0.01 |
) |
Total |
|
0.19 |
|
|
|
(0.15 |
) |
|
|
|
|
|
|
|
|
Diluted loss per share (in $) : (Note 12) |
|
|
|
|
|
|
|
Loss
from continuing operations |
|
(0.10 |
) |
|
|
(0.14 |
) |
Gain /
(loss) from discontinued operations |
|
0.29 |
|
|
|
(0.01 |
) |
Total |
|
0.19 |
|
|
|
(0.15 |
) |
|
|
|
|
|
|
|
|
THUNDERBIRD RESORTS, INC. |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
(Expressed in thousands of United States dollars) |
For the six months ended June 30, 2015 |
|
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, 2014 |
$ |
109,926 |
$ |
467 |
|
$ |
734 |
|
$ |
(95,666 |
) |
$ |
15,461 |
|
$ |
6,117 |
|
$ |
21,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue
of new shares |
|
120 |
|
- |
|
|
- |
|
|
- |
|
|
120 |
|
|
- |
|
|
120 |
|
Options cancellation and expiration |
|
- |
|
(34 |
) |
|
- |
|
|
34 |
|
|
- |
|
|
- |
|
|
- |
|
|
$ |
120 |
$ |
(34 |
) |
$ |
- |
|
$ |
34 |
|
$ |
120 |
|
$ |
- |
|
$ |
120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
for the year |
|
- |
|
- |
|
|
- |
|
|
(3,395 |
) |
|
(3,395 |
) |
|
282 |
|
|
(3,113 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences arising on translation of foreign
operations |
|
- |
|
- |
|
|
(973 |
) |
|
- |
|
|
(973 |
) |
|
- |
|
|
(973 |
) |
Total
comprehensive income for the year |
|
|
|
|
|
|
(973 |
) |
|
(3.395 |
) |
|
(4,368 |
) |
|
282 |
|
|
(4,086 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2014 |
$ |
110,046 |
$ |
433 |
|
$ |
(239 |
) |
$ |
(99,027 |
) |
$ |
11,213 |
|
$ |
6,399 |
|
$ |
17,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue
of new shares |
|
98 |
|
- |
|
|
- |
|
|
- |
|
|
98 |
|
|
- |
|
|
98 |
|
Buy-back of subsidiary shares |
|
- |
|
- |
|
|
- |
|
|
20 |
|
|
20 |
|
|
(24 |
) |
|
(4 |
) |
Options cancellation and expiration |
|
- |
|
(144 |
) |
|
- |
|
|
144 |
|
|
- |
|
|
- |
|
|
- |
|
|
$ |
98 |
$ |
(144 |
) |
$ |
- |
|
$ |
164 |
|
$ |
118 |
|
$ |
(24 |
) |
$ |
94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
for the year |
|
|
|
- |
|
|
- |
|
|
(7,689 |
) |
|
(7,689 |
) |
|
29 |
|
|
(7,660 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences arising on translation of foreign
operations |
|
- |
|
- |
|
|
(1,486 |
) |
|
- |
|
|
(1,486 |
) |
|
- |
|
|
(1,486 |
) |
Total
comprehensive income for the year |
|
- |
|
- |
|
|
(1,486 |
) |
|
(7,689 |
) |
|
(9,175 |
) |
|
29 |
|
|
(9,146 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2014 |
$ |
110,144 |
$ |
289 |
|
$ |
(1,725 |
) |
$ |
(106,552 |
) |
$ |
2,156 |
|
$ |
6,404 |
|
$ |
8,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital |
|
Share
options
reserve |
|
|
Currency
translation
reserve |
|
|
Retained
earnings |
|
|
Total |
|
|
Non-
controlling
interest |
|
|
Total
equity |
|
Balance at January 1, 2015 |
$ |
110,144 |
$ |
289 |
|
$ |
(1,725 |
) |
$ |
(106,552 |
) |
$ |
2,156 |
|
$ |
6,404 |
|
$ |
8,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue
of new shares |
|
96 |
|
- |
|
|
- |
|
|
- |
|
|
96 |
|
|
- |
|
|
96 |
|
Buy-back of subsidiary shares |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
56 |
|
|
56 |
|
Options cancellation and expiration |
|
- |
|
(20 |
) |
|
- |
|
|
20 |
|
|
- |
|
|
- |
|
|
- |
|
Costa
Rica disposal |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(4,690 |
) |
|
(4,690 |
) |
|
$ |
96 |
$ |
(20 |
) |
$ |
- |
|
$ |
20 |
|
$ |
96 |
|
$ |
(4,634 |
) |
$ |
(4,538 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
for the year |
|
|
|
- |
|
|
- |
|
|
4,373 |
|
|
4,373 |
|
|
(30 |
) |
|
4,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences arising on translation of foreign
operations |
|
- |
|
- |
|
|
(1,723 |
) |
|
- |
|
|
(1,723 |
) |
|
- |
|
|
(1,723 |
) |
Total
comprehensive income for the year |
|
- |
|
- |
|
|
(1,723 |
) |
|
4,373 |
|
|
2,650 |
|
|
(30 |
) |
|
2,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2015 |
$ |
110,144 |
$ |
269 |
|
$ |
(3,448 |
) |
$ |
(102,159 |
) |
$ |
4,902 |
|
$ |
1,740 |
|
$ |
6,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THUNDERBIRD RESORTS, INC. |
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS |
(Expressed in thousands of United States dollars) |
For the six months ended June 30, 2015 |
|
Six months
ended |
|
|
June 30 (unaudited) |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
Cash flow from operating
activities |
|
|
|
|
|
Loss for the year |
$ |
(2,348 |
) |
|
$ |
(2,912 |
) |
Items not involving cash: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
1,826 |
|
|
|
1,918 |
|
|
Loss
on disposal of property, plant and equipment |
|
|
|
|
|
|
|
Unrealized foreign exchange |
|
466 |
|
|
|
(32 |
) |
|
Increase / (decrease) in provision |
|
(1,284 |
) |
|
|
(1,404 |
) |
|
Other
losses / (gains) |
|
(470 |
) |
|
|
(288 |
) |
|
Share
based payments |
|
96 |
|
|
|
(81 |
) |
Finance income |
|
2,217 |
|
|
|
2,308 |
|
Finance cost |
|
(106 |
) |
|
|
(297 |
) |
|
Other
interests |
|
13 |
|
|
|
16 |
|
Results from equity accounted investments |
|
10 |
|
|
|
300 |
|
|
Tax
expenses |
|
169 |
|
|
|
164 |
|
Net change in non-cash working capital
items |
|
|
|
|
|
|
|
|
Decrease in trade, prepaid and other receivables |
|
(1,605 |
) |
|
|
3,548 |
|
|
Decrease in inventory |
|
(48 |
) |
|
|
184 |
|
|
(Decrease) / increase in trade payables and accrued |
|
642 |
|
|
|
1,010 |
|
Cash (used) from operations |
|
(412 |
) |
|
|
4,434 |
|
|
Total
tax paid |
|
(199 |
) |
|
|
(639 |
) |
Net cash generated by continuing operations |
|
(611 |
) |
|
|
3,795 |
|
|
|
|
|
|
|
|
|
Net cash (used) from discontinued operations |
|
77 |
|
|
|
(158 |
) |
|
|
|
|
|
|
|
|
Net cash (used) from operating
activities |
$ |
(534 |
) |
|
$ |
3,637 |
|
|
|
|
|
|
|
|
|
Cash flow from investing
activities |
|
|
|
|
|
|
|
Expenditure on property, plant and equipment |
|
(2,754 |
) |
|
|
(1,685 |
) |
Proceeds on sale of property, plant and equipment |
|
44 |
|
|
|
1,883 |
|
Proceeds on sale of Costa Rica operation |
|
8,077 |
|
|
|
- |
|
Cost of sale of Costa Rica operation |
|
(165 |
) |
|
|
- |
|
Interest received |
|
106 |
|
|
|
297 |
|
Net cash used from investing
activities |
$ |
5,308 |
|
|
$ |
495 |
|
|
|
|
|
|
|
|
|
Cash flow from financing
activities |
|
|
|
|
|
|
|
Proceeds from issue of new loans |
|
870 |
|
|
|
34 |
|
Repayment of loans and leases payable |
|
(4,955 |
) |
|
|
(2,698 |
) |
Interest paid |
|
(1,791 |
) |
|
|
(1,962 |
) |
Net cash used from financing
activities |
$ |
(5,876 |
) |
|
$ |
(4,626 |
) |
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
during the year |
|
(1,102 |
) |
|
|
(494 |
) |
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of
the year |
|
6,551 |
|
|
|
7,215 |
|
|
|
|
|
|
|
|
|
Effect of foreign exchange adjustments |
|
3,867 |
|
|
|
(351 |
) |
|
|
9,316 |
|
|
|
6,370 |
|
Included in disposal group (Note 11) |
|
- |
|
|
|
(213 |
) |
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of the
year |
$ |
9,316 |
|
|
$ |
6,157 |
|
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 2015 Half-year 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 2015 Half-year
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 2015 Half-year 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.
CONTACT INFORMATION
Thunderbird Resorts Inc.
Peter LeSar
Chief Financial Officer
(507) 223-1234
plesar@thunderbirdresorts.com