MIAMI, Jan. 26, 2022 /PRNewswire/ -- 26 Capital
Acquisition Corp. (NASDAQ: ADER), a Nasdaq-listed special
purpose acquisition company ("SPAC"), today announced the fourth
quarter and full-year 2021 financial performance of Okada Manila,
the property operated by Tiger Resort, Leisure and Entertainment, a
wholly owned subsidiary of UE Resorts International, Inc. 26
Capital Acquisition Corp. previously announced its plans to merge
with UE Resorts International, Inc. later this year.
Okada Manila, one of the premier destination casino resorts in
Asia and the largest integrated
resort in the Philippines,
surpassed its total revenue and adjusted EBITDA guidance previously
disclosed to 26 Capital stockholders in October at the time of the
merger announcement.
Fiscal year 2021 total revenue of $399.6
million1 exceeded prior forecasts by $82 million1 and increased 24% over
2020. Adjusted EBITDA for FY2021 topped projections by 122%, coming
in at $46.8 million1, or
$72 million more than 2020, primarily
due to a very strong performance in gaming in Q4 and as a result of
significant cost reductions implemented by management.
Additionally, non-gaming revenue increased by over 30% from 2020
to 2021, indicating a strong rebound in demand for the property's
numerous non-gaming offerings, including its Retail Boulevard,
luxury spa, dining options and the Cove Manila beach club.
The resort had over 761,000 visitors in Q4, compared to 304,250
visitors in Q3, and its total revenue increased by 74% over the
same period, from $85
million2 in Q3 to $148
million3 in Q4.
Okada Manila ended the fourth quarter as the clear market leader
with a market share of 36.5% in Entertainment City for the month of
December according to analysts' research. This result
illustrates the quality of the Okada Manila property and indicates
its post-construction completion potential.
It's anticipated that Okada Manila's strong market position will
be aided by the absence of additional competition in Entertainment
City in the foreseeable future due to the scarcity of land
available for development. Furthermore, when the Philippines fully re-opens, Okada Manila's
margins are expected to continue to benefit from substantial
long-term cost reductions achieved during the pandemic. As such,
EBITDA is projected to exceed $500
million by 2025.
"Most companies acquired by SPACs are missing their guidance by
a significant amount, but Okada Manila crushed it with the highest
market share in December 2021," said
Jason Ader, Chairman and Chief
Executive Officer of 26 Capital Acquisition Corp. "This impressive
performance validates what I saw in Okada Manila when searching for
a target for 26 Capital. I wanted a strong, progressive brand with
a unique offering that would provide investors with a lucrative
ROI, and it looks like my vision is on track to deliver. I expect
that this positive momentum will continue throughout 2022, and
Okada Manila will maintain its position as the market share leader
in Entertainment City."
"Covid-19 restrictions meant that there was no international
tourism in Q4, and the property operated with various restrictions,
so it's incredibly impressive to see such outstanding results. I'm
proud that the team has delivered an exceptional year, far
exceeding our expectations, and I'm excited to see the numbers when
things completely open up," Ader added.
At over 50 acres, Okada Manila includes approximately 35,000
square meters of gaming space with licensed capacity to operate 599
gaming tables and 4,263 electronic gaming machines. When the
current construction is complete this year, the resort will have
licensed capacity to operate 974 gaming tables and 6,890 electronic
gaming machines. The property also includes two hotel towers with
993 luxury rooms, a retail boulevard with space for 50 shops, Cove
Manila night club and indoor beach club, over 25 dining options,
and one of the world's largest multicolor dancing and musical
fountains.
"The performance seen in Q4 underscores people's desire to get
out and spend money on leisure activities," said Byron Yip, President of Okada Manila. "We have
ended the year on a high note, with Q4 demonstrating our continued
strong execution and ability to bring best operating practices that
maximize productivity across the full spectrum of gaming,
hospitality, retail, and entertainment offerings. The fact that
this significant improvement in our performance, when compared to
the other casinos in Entertainment City, was achieved in one of the
most difficult periods that gaming has faced in decades, is a
testament to the team's hard work and the positive impact of a
series of comprehensive initiatives implemented under my
management."
"With the upcoming merger and our continued optimization or our
gaming business and diversification of our non-gaming revenue
streams to further differentiate the property, I'm more confident
than ever that we will deliver sustained growth and strong returns
for shareholders in 2022 and beyond," Yip added.
All information in this press release regarding the financial
results of Okada Manila are derived from the preliminary financial
statements prepared by UE Resorts International, Inc.
Notes
1 Utilizes 2021 average exchange rate of
49.29 Philippine pesos/USD
2 Utilizes Q3 2021 average exchange rate of
50.15 Philippine pesos/USD
3 Utilizes Q4 2021 average exchange rate of
50.45 Philippine pesos/USD
About 26 Capital Acquisition Corp.
26 Capital Acquisition Corp. (NASDAQ: ADER) is a Nasdaq-listed
blank check company formed for the purpose of creating stockholder
value by identifying an acquisition target with significant growth
opportunities that the 26 Capital team can enhance by utilizing its
experience and track record of creating and unlocking value, with
particular focus in gaming, gaming technology, lodging, and
entertainment. 26 Capital is led by Jason
Ader of SpringOwl Asset Management. Mr. Ader has over
26 years of experience as an institutional investor, asset manager,
and research analyst, with particular expertise in the gaming and
hospitality industries. SpringOwl Asset Management has raised more
than $1 billion in capital since it
was founded in 2013.
About UE Resorts International, Inc.
UE Resorts International, Inc. is the holding company of Okada
Manila, the premier casino and integrated resort in Entertainment
City, Manila. Okada Manila is the
largest integrated resort in the
Philippines and amongst the largest in the world. Located in
one of the fastest-growing gaming markets in Asia, Okada Manila sits on over 50 acres of
land, and upon final completion will have licensed capacity to
operate 974 gaming tables and 6,890 electronic gaming machines and
have 993 luxury hotel rooms.
Participants in the Solicitation
26 Capital Acquisition Corp. and certain of its directors and
executive officers may be deemed participants in the solicitation
of proxies from 26 Capital Acquisition Corp.'s stockholders with
respect to the proposed business combination transaction. A list of
the names of those directors and executive officers and a
description of their interests in 26 Capital Acquisition Corp. is
set forth in 26 Capital Acquisition Corp.'s filings with the SEC
(including 26 Capital Acquisition Corp.'s final prospectus related
to its initial public offering (File No. 333-251682) dated as of
January 14, 2021), and are available
free of charge at the SEC's web site at www.sec.gov, or by
directing a request to 26 Capital Acquisition Corp., 701 Brickell
Avenue, Miami, Florida 33131,
attention: Jason Ader. Additional
information regarding the interests of such participants will be
contained in the prospectus/proxy statement for the proposed
business combination transaction when available.
Okada Manila and certain of its directors and executive officers
may also be deemed to be participants in the solicitation of
proxies from the stockholders of 26 Capital Acquisition Corp. in
connection with the proposed business combination transaction. A
list of the names of such directors and executive officers and
information regarding their interests in the proposed business
combination transaction will be included in the registration/proxy
statement for the proposed business combination transaction when
available.
No Offer or Solicitation
This press release shall not constitute a solicitation of a
proxy, consent or authorization with respect to any securities or
in respect of the proposed business combination transaction. This
press release shall also not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any states or jurisdictions in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such
jurisdiction.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as, and must not be relied on by
any investor as, a guarantee, an assurance, a prediction or a
definitive statement of fact or probability. Okada Manila's actual
results may differ from their expectations, estimates, and
projections and, consequently, you should not rely on these
forward-looking statements as predictions of future events. Words
such as "expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," and similar
expressions (or the negative versions of such words or expressions)
are intended to identify such forward-looking statements. These
forward-looking statements include, without limitation, 26 Capital
Acquisition Corp.'s and Okada Manila's expectations with respect to
future performance and anticipated financial impacts of the
business combination transaction.
These forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially, and potentially adversely, from those expressed or
implied in the forward-looking statements. Most of these factors
are outside 26 Capital Acquisition Corp.'s and Okada Manila's
control and are difficult to predict. Factors that may cause such
differences include, but are not limited to: (1) the outcome of any
legal proceedings that may be instituted against 26 Capital
Acquisition Corp. and/or Okada Manila following the consummation of
the business combination transaction; (2) the impact of COVID-19
and related regulatory responses (such as local community
quarantine and international travel restrictions) on Okada Manila's
business; (3) the dependence of Okada Manila's business on its
casino gaming license; (4) the inability to maintain the listing of
Okada Manila's common shares on the Nasdaq following the
consummation of the business combination transaction; (5) the risk
that the business combination transaction disrupts current plans
and operations; (6) the ability to recognize the anticipated
benefits of the business combination transaction, which may be
affected by, among other things, competition, the ability of Okada
Manila to grow and manage growth profitably, and retain its key
employees; (7) costs related to the business combination
transaction; (8) changes in applicable laws or regulations; and (9)
the possibility that Okada Manila may be adversely affected by
other economic, business, and/or competitive factors. The foregoing
list of factors is not exclusive. All subsequent written and oral
forward-looking statements concerning 26 Capital Acquisition Corp.
or Okada Manila, the transactions described herein or other matters
and attributable to 26 Capital Acquisition Corp., Okada Manila or
any person acting on their behalf are expressly qualified in their
entirety by the cautionary statements above. Readers are cautioned
not to place undue reliance upon any forward-looking statements,
which speak only as of the date made. Each of 26 Capital
Acquisition Corp. and Okada Manila expressly disclaims any
obligations or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in their expectations with respect thereto or
any change in events, conditions, or circumstances on which any
statement is based, except as required by law.
Non-IFRS Measures
This press release contains non-IFRS measures, namely Adjusted
EBITDA (defined as operating profit / (loss) before depreciation
and other adjustments). Okada Manila's management believes Adjusted
EBITDA facilitates operating performance comparisons from period to
period and company to company by eliminating potential differences
caused by currency fluctuations (affecting exchange gains and
losses), variations in capital structures (affecting interest
income and expense), tax positions (such as the impact on periods
or companies of change in effective tax rates or net operating
losses) and the age and book value of tangible and intangible
assets (affecting related depreciation and amortization
expense).
While Okada Manila believes that presentation of this non-IFRS
measure is helpful to investors because similar measures are widely
used by certain investors, security analysts and other interested
parties as supplemental measures of performance and liquidity,
investors should not construe this non-IFRS measure as an
alternative to profit or to cash flows from operations. In
addition, Adjusted EBITDA of Okada Manila may not be comparable to
similarly titled measures used by other companies.
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SOURCE 26 Capital