Revenues increase 24 percent from 2007 third quarter to record $44.5
million
Property EBITDA rises to $12.5 million
PANAMA CITY, REPUBLIC OF PANAMA--(Marketwire - November 24, 2008) -
Thunderbird Resorts Inc. (CNQ: TBI.U)(FRANKFURT: 4TR)(EURONEXT:
TBIRD) today reported the following financial results for the 2008
third quarter and first nine months:
Thunderbird Resorts Inc. - Company-wide results
For the quarter ended 2008 2007 % 2007 %
September 30, As
(in thousands, except As Adjusted
per share) Reported Chg (1) Chg
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Total Revenues(1) $ 44,547 $ 27,152 64% $ 35,898 24%
Net Loss (8,973) (548) 1,537% (401) 2,138%
Earnings (loss) per share
- basic & fully diluted (2) (0.46) (0.06) 667% (0.05) 896%
Property EBITDA 12,484 9,018 38% 12,195 2%
Property EBITDA as a
percentage of sales 28% 33% - 34% -
Adjusted EBITDA 8,584 7,449 15% 10,626 -19%
Adjusted EBITDA as a
percentage of sales 19% 27% - 30% -
Company-wide results
For the nine months 2008 2007 % 2007 %
ended September 30, As
(in thousands, except As Adjusted
per share) Reported Chg (1) Chg
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Total Revenues(1) $ 124,175 $ 69,988 77% $ 91,845 35%
Net (Loss) Income (16,912) (313) 5,303% 226 -7,583%
Earnings (loss) per share
- basic & fully diluted (2) (0.86) (0.04) 2,050% 0.03 -3,415%
Property EBITDA 37,376 21,321 75% 28,653 30%
Property EBITDA as a
percentage of sales 30% 30% - 31% -
Adjusted EBITDA 27,470 17,309 59% 24,641 11%
Adjusted EBITDA as a
percentage of sales 22% 25% - 27% -
(1) During the first quarter 2008, Thunderbird completed the acquisition
of a controlling interest in its Panama operation resulting in the
ability to record 100% of revenues and Property EBITDA while recording
a minority interest for partner's holdings. Also, during the third
quarter of 2008, the Company acquired a controlling interest in the
entity that holds the Fiesta Casino Holiday Inn Express (formerly
Garden Court) operation, and as a result began consolidating that
operation at 100% beginning September 1, 2008. Prior period results
have been adjusted for the consolidation of 100% of the Panama and the
Fiesta Casino Holiday Inn Express operations as compared to the
proportional consolidation of 50% of the operations previously
reported.
(2) "Basic earnings (loss) per share" is the earnings (loss) based on
the weighted average number of shares outstanding for the year as
of September 30, 2008.
Property EBITDA and Adjusted EBITDA are not Generally Accepted
Accounting Principles (GAAP) measurements but are commonly used in
the gaming industry as measures of performance and as a basis for
valuation of gaming companies. The reconciliation of Property EBITDA
to net income (loss) and Adjusted EBITDA to net income (loss) is at
the end of this release. Revenues for the third quarter 2008 were
$44.5 million, compared with the as reported $27.2 million in the
2007 third quarter, a 64 percent increase. Property EBITDA was $12.5
million for the third quarter 2008 as compared to $9.0 million in the
2007 third quarter. The net loss for the third quarter 2008 was $9.0
million compared to a net loss in the 2007 third quarter of $0.5
million.
Revenues for the first nine months of 2008 increased 77 percent to
$124.2 million as compared to the as reported $70.0 million for the
same period in 2007. Property EBITDA was $37.4 million for the first
nine months 2008 as compared to $21.3 million in the prior-year
period. The net loss for the first nine months of 2008 increased to
$16.9 million from a net loss of $0.3 million for the same period in
2007.
Contributing to the net loss for both the third quarter and first
nine months of 2008, when compared with the same periods in the prior
year, were unrealized foreign exchange losses, one-time costs
associated with the NYSE Euronext listing application process, higher
financing costs, project development costs, significant pre-opening
costs for the new Peru flagship casino and non-cash costs such as
stock based compensation and non-controlling interests.
The third quarter 2008 results compared to the preceding second
quarter of 2008 reflect revenues increasing to $44.5 million from
$40.6 million while Property EBITDA decreased from $13.0 million to
$12.5 million. The decrease in Property EBITDA was primarily the
result of losses in the Guatemala operation as it continues to ramp
up, losses incurred in the new hotel and golf course operation in the
Philippines, the low margins associated with the start-up of Poland
operations and a decrease in Panama results caused by increased
competition that were partially offset by improved results in the
gaming operations in the Philippines, Costa Rica and the inclusion of
the new slot parlors in Peru.
"During the third quarter, our existing operations continued to
produce solid property-level financial performance during a quarter
when new properties opened. However, in light of the current economic
environment which in some cases has negatively impacted our ability
to secure project financing; we are taking a conservative approach
regarding new project development," said Jack Mitchell, Thunderbird's
Chairman, President and Chief Executive Officer.
"Additionally, as a result, we have recently downsized our
development organization due to a change in this environment and will
focus on projects that meet our strategic and return on investment
criteria requiring less capital, such as slot parlors, until such
time that longer term financing is available. We have undertaken a
comprehensive cost reduction study that includes all areas of our
business, including organizational restructurings at our corporate
and property operations and reduction of travel and entertainment
expenses. We expect to implement most of the program directives by
December 31, 2008 and will report on the cost savings in our 2008
annual report," stated Mr. Mitchell.
Summary of results by country follow: (table information in
thousands)
Panama(1)
The third quarter 2008 results for the Company's Panama operations
slightly decreased over the same period in the previous year on an as
adjusted basis driven by the effects of increased competition.
Nine-month results on an as adjusted basis were slightly higher due
to the increase in gaming positions completed in 2008.
First
Third Quarter % nine months of %
2008 2007(1) Chg 2008 2007(1) Chg
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Gaming Revenues $ 13,691 $ 6,983 96% $ 42,450 $ 19,366 119%
Food & Beverage
Revenues 1,073 471 128% 2,956 1,198 147%
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Revenues 14,764 7,454 98% 45,406 20,565 121%
Promotional
Allowances 410 128 220% 1,040 632 65%
Property, Marketing
and Administration 10,145 4,754 113% 30,418 13,206 130%
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Property EBITDA $ 4,209 $ 2,572 64% $ 13,948 $ 6,727 107%
Property EBITDA as
a % of Revenues 29% 35% - 31% 33% -
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(1) As reported
(2) During the first quarter of 2008, we acquired an additional 11.36% and
during the third quarter of 2008 another 2.273% of the total
outstanding shares in this operation resulting in Thunderbird ownership
of 63.63%. This purchase has resulted in the Company effectively having
controlling interest in the operation; therefore the Company now
consolidates the operation at 100% versus the proportional
consolidation of 50% reported in periods prior to the first quarter of
2008. The third quarter 2008 results and first nine months results as
presented herein represent 100% of the operations and the third
quarter 2007 numbers represent 50% of the operations.
Panama properties include: Fiesta Casino - Hotel El Panama, Panama
City; Fiesta Casino - Hotel El Soloy, Panama City; Fiesta Casino -
Hotel Nacional, David; Fiesta Casino - Hotel Washington, Colon;
Fiesta Casino - Hotel Guayacanes, Chitre; Fiesta Casino - Hotel &
Resort Decameron, Fallaron. Guatemala
Third quarter 2008 results for the Company's Guatemala operation
reflect slightly higher revenues and lower Property EBITDA than in
the year-ago quarter due to losses incurred in all of the properties.
During this quarter, the Company replaced the management team,
implemented a new cost control program and is in the process of
rebuilding its market presence.
Nine-month revenues were higher while the losses were driven by the
start-up costs related to the new Gran Plaza property that opened in
June 2008.
First
Third Quarter % nine months of %
2008 2007 Chg 2008 2007 Chg
--------------------------------------------------------------------------
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Gaming Revenues $ 1,041 $ 778 34% $ 2,795 $ 2,109 33%
Food & Beverage
Revenues 147 105 41% 374 311 20%
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Revenues 1,188 883 35% 3,169 2,420 31%
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Promotional
Allowances - - - - - -
Property, Marketing
and Administration 1,656 665 149% 3,646 2,478 47%
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Property EBITDA $ (468) $ 218 315% $ (477) $ (58) 722%
Property EBITDA as
a % of Revenues -39% 25% - -15% -2% -
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Guatemala properties include: Video Loteria Fiesta - Hotel
Intercontinental, Guatemala City; Video Loteria Mazatenango -
Mazatenango; Fiesta Video Loteria - Coatepeque; Fiesta Video Loteria
- Gran Plaza Shopping Center, Guatemala City. Nicaragua(1)
Third quarter 2008 revenues increased 21 percent in Nicaragua
compared to the same period last year driven by the new Zona
Pharoah's Casino that opened during the quarter. The nine month
results also were higher due to improved margins in Pharoah's Managua
and the Holiday Inn property attributed to cost savings initiatives.
First
Third Quarter % nine months of %
2008 2007 Chg 2008 2007 Chg
--------------------------------------------------------------------------
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Gaming Revenues $ 3,750 $ 3,123 20% $ 10,318 $ 9,648 7%
Food & Beverage
Revenues 47 24 100% 403 66 280%
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Revenues 3,797 3,147 21% 10,721 9,714 10%
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Promotional Allowances 336 232 45% 819 653 25%
Property, Marketing and
Administration 2,385 2,012 19% 6,494 6,423 1%
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Property EBITDA $ 1,076 $ 903 19% $ 3,408 $ 2,638 29%
Property EBITDA as a %
of Revenues 28% 29% - 32% 27% -
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(1) The Company indirectly owns 55% of the Nicaraguan operation. 100% of
the operation is consolidated within the Company's financial
statements and non-controlling interest is calculated to reflect the
portion of net assets attributable to the minority shareholders.
Nicaragua properties include: Pharaoh's Managua - Managua; Pharaoh's
at Hotel Camino Real - Managua; Pharaoh's at Hotel Holiday Inn Select
- Managua; Pharaoh's - Masaya; Pharaoh's at Bello Horizonte - Bello
Horizonte Shopping Center, Managua. Costa Rica(1)
Higher third-quarter 2008 results, when compared to the same period
in 2007, were due primarily to increased gaming positions
country-wide and the favorable results of the flagship Fiesta Casino
Holiday Inn Express (formerly Garden Court Hotel).
Nine-month 2008 revenues, when compared to the same period in 2007,
were higher primarily due to the new property Fiesta Herradura being
operational for the full nine months and the increased gaming
positions and visitation in all properties.
First
Third Quarter % nine months of %
2008 2007 Chg 2008 2007 Chg
--------------------------------------------------------------------------
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Gaming Revenues $ 4,869 $ 3,290 48% $ 12,858 $ 8,901 44%
Food & Beverage
Revenues 224 236 -5% 774 640 21%
Hospitality and Other
Revenues 102 - - 110 - -
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Revenues 5,195 3,526 47% 13,742 9,541 44%
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Promotional Allowances 90 129 -31% 358 507 -29%
Property, Marketing and
Administration 2,865 1,769 62% 7,348 4,913 50%
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Property EBITDA $ 2,241 $ 1,628 38% $ 6,037 $ 4,121 46%
Property EBITDA as a %
of Revenues 43% 46% - 44% 43% -
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(1) During the third quarter of 2008, the Company acquired a controlling
interest in the entity that holds the Fiesta Casino Holiday Inn
Express (formerly Garden Court) operation, as a result began
consolidating that operation at 100% beginning September 1, 2008. The
balance of the Costa Rican operation is a joint venture of the Company
and its results of operations are proportionally consolidated into the
Company's financial statements; the tables above and below represent
the Company's 50% share of the operation except for the Fiesta Casino
Holiday Inn Express.
Costa Rica properties include: Fiesta Casino Holiday Inn Express -
San Jose; Fiesta Casino Hotel el Presidente - San Jose; Fiesta Casino
Heredia - Heredia; Fiesta Casino Herradura - San Jose; Lucky's at
Perez Zeledon - San Jose; Lucky's San Carlos - San Carlos; Lucky's
Guapiles - Guapiles; Lucky's Tournon - Tournon; Lucky's Colon -
Colon; Hotel Diamante - Perez Zeledon; 1 Slot Route. Philippines
Third-quarter 2008 revenues increased 23 percent when compared to the
same period in 2007 as a result of new gaming positions added in both
Philippines properties and increased visitation. Property EBITDA
margins declined due to the start-up costs incurred by the new hotel
and golf course at the Poro Point property.
Nine-month 2008 revenues increased, when compared to the same period
in 2007, 37 percent due to the increase in gaming positions and the
increase in win per position.
First
Third Quarter % nine months of %
2008 2007 Chg 2008 2007 Chg
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Gaming Revenues $ 10,991 $ 9,188 20% $ 32,418 $ 23,946 35%
Food & Beverage
Revenues 206 140 47% 760 696 9%
Hospitality and Other
Revenues 389 66 489% 813 211 285%
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Revenues 11,586 9,394 23% 33,991 24,853 37%
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Promotional Allowances 121 237 -49% 361 627 -42%
Property, Marketing and
Administration 8,340 6,357 31% 24,188 17,230 40%
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Property EBITDA $ 3,125 $ 2,800 12% $ 9,442 6,996 35%
Property EBITDA as a %
of Revenues 27% 30% - 28% 28% -
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The Philippines properties include: Thunderbird Resort Rizal Hotel &
Casino - Manila, Binangonan; Thunderbird Resorts Poro Point Hotel,
Casino, and Golf Course - San Fernando City, La Union. Peru
The Company acquired six hotels in Peru with a total of 660 rooms on
July 27, 2007; therefore, the operation has only two months of
comparable data from the third quarter of 2007 and the nine month
period. However, third-quarter results, when compared to the same
months of operations from the previous year did improve due to higher
room rates and occupancies.
During the quarter the Company acquired 5 slot parlor locations that
produced strong results which were offset slightly by the start-up
costs associated with the Fiesta Benavides flagship property that
opened in late September 2008.
First
Third Quarter % nine months of %
2008 2007 Chg 2008 2007 Chg
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Gaming Revenues $ 2,307 $ - - $ 2,307 $ - -
Food & Beverage
Revenues 1,283 809 59% 3,638 809 350%
Hospitality and Other
Revenues 3,282 1,870 76% 9,642 1,870 416%
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Revenues 6,872 2,679 157% 15,587 2,679 482%
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Promotional Allowances 98 - - 98 - -
Property, Marketing and
Administration 4,502 1,782 153% 10,500 1,782 489%
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Property EBITDA $ 2,272 $ 897 153% $ 4,989 $ 897 456%
Property EBITDA as a %
of Revenues 33% 33% - 32% 33% -
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Peru properties include: Hotel Las Americas Miraflores - Lima; Hotel
Las Americas Suites & Casino Miraflores - Lima; Hotel Las Americas
Pardo - Lima; Hotel Las Americas Bellavista - Lima; Hotel Las
Americas Carrera - Lima; El Pueblo Resort & Convention Center - Lima;
Fiesta Casino Benavides in the Hotel Las Americas Suites Miraflores -
Lima; Luxor Casino - Lima; Mystic Slot - Cuzco; El Dorado Slot -
Iquitos; Luxor Casino - Tacna.
Poland
The opening of the small casino and a slot parlor in Lodz, Poland
produced positive results during the third quarter. The Company is
finalizing expansion plans for both properties and initiating the
permitting process to be able to complete those expansions. The
properties currently have 71 slot machines and 37 table positions.
With the expansion, which we project to open in second quarter 2009,
we will add an additional 41 slot positions.
Other Items
Corporate expenses increased significantly from the third quarter and
first nine months of 2007 due to the increased size of the corporate
and development staffing and headquarters costs that have been
necessary to expand the operation to its current levels and to also
manage the existing operations. In addition, since the Company has
listed on NYSE Euronext it has been necessary to increase staff size
and recruit experienced professionals from the United States and
other parts of the world to move to the Panama headquarters, thereby
increasing costs. Nevertheless, the Company had begun a study for a
cost savings initiative that will be implemented by the end of 2008.
Interest and financing costs increased significantly from the third
quarter and first nine months of 2007 due to higher debt levels
associated with the Company's acquisition of its Peru hotel operation
and the consolidation of the Panama operation during the third
quarter of 2008 as compared to the 50 percent consolidation in the
same period in the prior year.
Foreign exchange expense also increased significantly in third
quarter 2008 compared to third quarter 2007. In addition, foreign
exchange expense also increased significantly from the first nine
months of 2007 as compared to the first nine months in 2008. This
increase is due to the strengthening of the United States Dollar
(USD) against the local currencies in Peru, the Philippines and Costa
Rica as of September 30, 2008 as the Company carries significant USD
debt levels in Peru and the Philippines. During the first quarter of
2008, the Company had recorded foreign exchange gains as these local
currencies had strengthened against the USD, while this trend was
reversed during the second and third quarter of 2008. The Company is
currently investigating currency hedging strategies but has not made
a final decision to deploy any such strategy at this time.
Basic shares outstanding is the weighted average number of shares
outstanding for the year as of September 30, 2008. Total basic shares
outstanding as of September 30, 2008 was 19,567,244. Total actual
shares outstanding as of September 30, 2008 was 19,638,082. September
30, 2007 basic (loss) per share has been adjusted for the
one-for-three reverse stock split that occurred in November.
For development updates please refer to the Company's filing of its
Management Discussion and Analysis on CNSX.
The reconciliation of Property EBITDA to net income (loss) and
Adjusted EBITDA to net income (loss) is as follows:
First
Third Quarter % nine months of %
2008 2007 Chg 2008 2007 Chg
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Property EBITDA $ 12,484 $ 9,018 38% $ 37,376 $ 21,321 75%
Corporate Expenses 3,900 1,569 149% 9,906 4,012 147%
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Adjusted EBITDA 8,584 7,449 15% 27,470 17,309 59%
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EBITDA as a % of
Revenues 19% 27% - 22% 25% -
Depreciation &
Amortization 5,020 2,468 103% 13,961 5,920 136%
Interest and
Financing
Costs, Net 5,418 3,408 59% 12,178 6,781 80%
Non-controlling
Interest 289 547 47% 1,383 1,396 1%
Project Development 2,857 628 355% 6,447 1,169 451%
Stock-based
Compensation 750 717 5% 2,117 739 186%
Foreign Exchange
(gain) 2,204 (540) -508% 4,463 (789) -666%
Other (Gains) Losses 1,391 (256) -643% 2,226 (120) -1,955%
Income Taxes (372) 1,025 -136% 1,607 2,526 36%
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Net Earnings (Loss) $ (8,973) $ (548) 1,537% (16,912) $ (313) 5,310%
The Company will host a conference a call on Tuesday, November 25th
at 10:00 a.m. eastern standard time to discuss third quarter 2008
financial results, followed by a question and answer session.
Thunderbird Resorts Inc. invites all interested parties to listen and
participate in its conference call. For U.S. and Canadian callers you
may participate by calling (866) 393-4520. For international callers
you may participate by calling (660) 422-4768. The conference code
for all callers is 69706168. You are also invited to listen through a
webcast. The registration page is:
http://event.meetingstream.com/r.htm?e=124103&s=1&k=0A7569E3D30FFAC67C9814B748FB71AD
Thunderbird Resorts is focused on being the most successful
recreational property developer and operator in each of our markets
by creating genuine value for the community, our employees and
shareholders. We achieve this mission by offering customers dynamic,
themed and integrated resort venues anchored by casinos. Additional
information about the company is available on its World Wide Web site
at www.thunderbirdresorts.com.
Cautionary Notice: The third quarter interim financial statements
have not been reviewed by the company's outside auditor. 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 herein, 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 CNSX and other regulatory authorities.
Included in this press release are certain "non-GAAP financial
measures", which are measures of Thunderbird's historical or
estimated future performance that are different from measures
calculated and presented in accordance with GAAP, within the meaning
of applicable CNSX rules, that are useful to investors. These
measures include (i) Property EBITDA consists of income from
operations before depreciation and amortization, write-downs,
reserves and recoveries, project development costs, corporate
expenses, corporate management fees, merger and integration costs,
income/(losses) on interests in non-consolidated affiliates and
amortization of intangible assets. Property EBITDA is a supplemental
financial measure we use to evaluate our country-level operations.
(ii) Adjusted EBITDA represents net earnings before interest expense,
income taxes, depreciation and amortization, equity in earnings of
affiliates, minority interests, development costs, and gain on
refinancing and discontinued operations. Adjusted EBITDA is a
supplemental financial measure we use to evaluate our overall
operations. Property EBITDA and Adjusted EBITDA are supplemental
financial measures used by management, as well as industry analysts,
to evaluate our operations. However, Property and Adjusted EBITDA
should not be construed as an alternative to income from operations
(as an indicator of our operating performance) or to cash flows from
operating activities (as a measure of liquidity) as determined in
accordance with generally accepted accounting principles.
Contacts:
Thunderbird Resorts Inc.
Kevin McDonald
Investor Relations
(858) 668-2503
Email: kevin.mcdonald@thunderbirdresorts.com
Thunderbird Resorts Inc.
Michael G. Fox
Chief Financial Officer
Email: info@thunderbirdresorts.com
Website: www.thunderbirdresorts.com
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.