Thunderbird Resorts Inc.
FRANKFURT : 4TR
EURONEXT : TBIRD

Thunderbird Resorts Inc.

October 14, 2014 14:32 ET

Thunderbird Resorts Inc.: September 2014 Revenue Report

Funding Completion and Construction Start of the Pharaohs Casino Bolonia in Nicaragua, Resolved Litigation With Solar Entertainment, and Annual General Meeting of Shareholders Results, Election of Officers and Committee Members

PANAMA, REPUBLIC OF PANAMA--(Marketwired - Oct. 14, 2014) - Thunderbird Resorts Inc. ("Thunderbird" or "Group") (EURONEXT:TBIRD) (FRANKFURT:4TR) reports the following revenues for September 2014. For a more detailed analysis of September 2014 revenue, please visit www.thunderbirdresorts.com and click on "September 2014 Revenue Report - Analysis" located on the home page under "News and Releases."

Group revenue on an as reported basis for September 2014 vs. September 2013.

Group-wide sales by country - as reported (unaudited, in millions)(1) September
2014
September
2013
Year-over-year
increase/(decrease)
Peru(2) $2.54 $2.26 12.39%
Costa Rica(3)(4) 1.00 1.08 -7.41%
Nicaragua 1.16 1.01 14.85%
Total Consolidated Operating Revenues $4.70 $4.35 8.05%

Group revenue on a currency neutral basis for September 2014 vs. September 2013. In this analysis, we apply the average exchange rate for September 2014 to the September 2013 revenues in order to compare the two periods as if there was no impact from foreign exchange whatsoever.

Group-wide sales by country - currency neutral (unaudited, in millions)(1) August
2014
August
2013
Year-over-year
increase/(decrease)
Peru(2) $2.54 $2.15 18.14%
Costa Rica(3)(4) 1.00 1.00 0.00%
Nicaragua 1.16 0.96 20.83%
Total Consolidated Operating Revenues $4.70 $4.11 14.36%
(1) Revenues reported are based on monthly average exchange rates, report same store revenues and are in USD millions. From month to month, exchange rate fluctuations could cause an impact on revenues as compared to the previous year.
(2) 2014 and 2013 revenues consist of all gaming revenue in the country plus revenue from our fully-owned Fiesta Hotel and management fees for the Thunderbird Hotel - Pardo, Thunderbird Hotel - Carrera and Thunderbird Hotel - El Pueblo, which are owned by third parties.
(3) Effective January 1, 2013, IFRS 11 changed the way that joint ventures are accounted for whereby proportional consolidation is no longer allowed and equity accounting should be applied to joint ventures. Until further notice and for the convenience of the reader and for the illustrative purposes of this monthly revenue report, the Group has elected to continue to show the Costa Rican joint venture proportional revenues, which vary from the way that the Group accounts for these revenues in our Interim and Annual Financial Statements.
(4) In October 2013, we reduced 290 gaming positions in Costa Rica that cost more to maintain on the floor (because of per position gaming taxes) than their respective revenue. As a result, period revenue has dropped, but should be reflected in enhanced EBITDA from the related properties. In late June, the Group soft opened the Casino Fiesta Aurola in downtown San Jose with 122 slot machines (expanding to 148 slot machines), 27 gaming table positions (non poker), 3 poker tables, and 36 F&B seats. Our formal inauguration took place in August 2014.

FUNDING COMPLETION AND CONSTRUCTION START OF THE PHARAOHS CASINO BOLONIA IN NICARAGUA

The Company is pleased to announce the funding completion for its Pharaohs Casino Bolonia with a $1.0 million, 7-year term loan granted by a local bank. The construction of this 1,200 square meter entertainment venue with 115 slot machines and 21 gaming table positions has now commenced, and is anticipated to open for business by Q2 2015. The property is located in Residencial Bolonia, a premium area in the heart of Managua in which the government is investing heavily to promote tourism. The Company will move its Pharoahs Holiday Inn property to this new location, which is owned by the Company and which has far superior market visibility, parking and distribution for our business. The facility is also larger and has expansion possibilities. To start, we will add 32 slot machine positions as compared to the existing venue.

RESOLVED LITIGATION WITH SOLAR ENTERTAINMENT

As a follow up to our 2014 Half-year Report and press release dated August 26, 2014, the Company is pleased to announce that the litigation with Solar Entertainment Corporation ("Solar") in the Philippines has been resolved and fully settled. The Company has received $3.35 million, which represents 100% of the financed portion of the purchase price as well as a portion of the funds held back to cover potential contingent liabilities. All settlement agreements are now fully implemented. There remain no further obligations of the Company to Solar related to the August 2013 sale transaction.

ANNUAL GENERAL MEETING OF SHAREHOLDERS RESULTS, ELECTION OF OFFICERS AND COMMITTEE MEMBERS

The Company held its Annual General Meeting of Shareholders today in Lima, Peru. On the matter of election of the directors for the ensuing year, these are the results:

  • Salomon Guggenheim: 88% for, 2% withheld, 10% non vote
  • Douglas Vicari: 89% for, 1% withheld, 10% non vote
  • Reto Stadelmann: 89% for, 1% withheld, 10% non vote
  • Madeleine Linter: 60% for, 30% withheld, 10% non vote
  • George Gruenberg: 89% for, 1% withheld, 10% non vote
  • Albert W. Atallah: 88% for, 2% withheld, 10% non vote)

Grant Thornton UK, LLP was appointed as auditors for the ensuing year and the Board of Directors was authorized to affix their remuneration (99% for and 1% withheld). The shareholders received and considered the financial statements together with the auditor's report thereon for the financial year ended December 31, 2013 (99.98% for). Management presented a summary report on the Company's business to the shareholders which is posted on the Company's website under the heading "news" at: http://thunderbirdresorts.com/news/. The meeting was adjourned with no other business discussed.

The Board of Directors appointed the following persons as officers for the ensuing year:

  • Salomon Guggenheim, President and Chief Executive Officer
  • Albert W. Atallah, General Counsel and Corporate Secretary
  • Peter LeSar, Chief Financial Officer
  • Tino Monaldo, Vice President - Corporate Development

Based on the recommendations made by the Nominating Committee, the Board approved the following committee members:

Audit Committee Douglas Vicari (Chairman)
Marie Madeleine Linter
Reto Stadelmann
George Gruenberg
Compensation Committee Marie Madeleine Linter (Chairman)
Douglas Vicari
Reto Stadelmann
George Gruenberg
Nominating and Governance Committee Reto Stadelman (Chairman)
Douglas Vicari
Marie Madeleine Linter
George Gruenberg
Investment Committee Reto Stadelmann (Chairman)
Advisory members: Salomon Guggenheim,
Tino Monaldo and Albert Atallah

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: 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 the Group 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 the Group'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 the Group's documents filed from time-to-time with the AFM and other regulatory authorities.

Contact Information