Thunderbird Resorts Inc.: Fully Restated Press Release Execution of Philippine Equity Transaction; Corrected July 2011 Revenue Report; Board Approval to Issue Shares to Improve Balance Sheet
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Thunderbird Resorts Inc. /
Thunderbird Resorts Inc.: Fully Restated Press Release Execution of Philippine
Equity Transaction; Corrected July 2011 Revenue Report; Board Approval to Issue
Shares to Improve Balance Sheet
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The issuer is solely responsible for the content of this announcement.
PANAMA, REPUBLIC OF PANAMA--(Marketwire - August 12, 2011) - Thunderbird Resorts
Inc. ("Thunderbird" or "Group") (FRANKFURT: 4TR)(EURONEXT: TBIRD) is issuing
this Fully Restated Press Release that is verbatim identical to the Press
Release issued 10 August 2011 except for the July 2011 Revenue Report.
The Group is pleased to announce that its Philippine operations have entered
into final agreements to raise up to $52 million in equity from Solar
Entertainment Corporation ("Solar"). Solar is a Philippine media corporation
that owns and operates 6 cable channels, 3 free TV channels and a film
distribution company in the Philippines. The Group is pleased to partner with
Solar and believes Solar's success in the entertainment sector is synergistic
and will lead to growth opportunities for the Group's Philippine operations.
The agreements executed are subject to a number of conditions to closing,
including Philippine Amusement Gaming Corporation ("PAGCOR") and other
regulatory approvals. There are no assurances that the approvals will be
granted. If the transaction receives regulatory approval, Solar (or its
Philippine affiliate assignee) will invest into a newly-formed Philippine
holding company ("HoldCo") to which the Group and one other Filipino
shareholder, will assign all of their respective Philippine operations. Solar
will initially fund $25 million to receive a 32.47% stake in HoldCo, and this
initial funding will primarily be used by HoldCo to meet closing conditions and
to expand our existing properties at Poro Point and Rizal and to pay down some
Philippines-related debt, which should have a positive impact on the Group's
balance sheet. Solar will have a 12-month option from closing to fund an
additional $27 million to complete the purchase of up to 50% of HoldCo. The use
of proceeds for the $27 million will be allocated for investment into new
properties. Upon completion of funding, Thunderbird and its one other Filipino
partner will own the remaining 50% of HoldCo.
The transaction with Solar requires that Thunderbird and another Filipino
shareholder consolidate their Philippine assets into HoldCo, including shares of
two existing operating companies, various real estate companies and development
companies whose assets are separate from our existing two operating hotels and
casinos. The transaction also requires Thunderbird to continue to manage the
hotels and casino under its brand hotel and casino names.
The Group entered the Philippines market in 2005 and it now owns interests in,
and operates, two casinos with approximately 738 slot machines and 379 table
positions, as well as two hotels and a nine-hole golf course. We plan to expand
our facilities for each property and the closing of this transaction with Solar
will enable us to do so in a way that optimizes our balance sheet and cash flow.
In addition to these projects, we believe that with Solar as our partner the
Group will be able to develop new opportunities in the country.
The Group previously announced that its affiliates in the Philippines, Eastbay
Resorts, Inc. ("ERI") and Thunderbird Pilipinas Hotels and Resorts, Inc.
("TPHR") filed lawsuits in June 2011 against PAGCOR seeking enforcement of its
prior agreements with PAGCOR. On 23 June 2011, the Philippine Regional Trial
Court issued a "Writ of Preliminary Prohibitory Injunction" directing PAGCOR to
cease and desist from initiating and completing cessation or other similar
proceedings against TPHR's and ERI's business operations. The legal process
continues.
CORRECTED JULY 2011 REVENUE REPORT
The revenue reported for Costa Rica has been corrected (underlines and
italicized) as follows:
Thunderbird Resorts Inc. - Group- Year-over-year
wide sales results by country increase/(de-
(unaudited, in thousands) July 2011 July 2010 crease)
Costa Rica(1) corrected 1,661 1,818 (8.6%)
Nicaragua 1,154 1,005 14.8%
Philippines (2) 4,709 4,522 4.1%
Peru Gaming (3) 2,222 2,136 4.0%
Peru Hotel (4) 1,040 621 67.5%
Total Consolidated Revenues
(corrected) 10,786 10,102 6.8%
(1) Corrected: In the Press Release of 10 August 2011, Costa Rica Revenue was in
advertently reported as 2,425 and is now corrected as 1,661. The correction is
based on the following: During the third quarter of 2008, the Group 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 percent beginning 1 September 2008. The balance of the
Costa Rican operation is a joint venture of the Group and its results of
operations are proportionally consolidated into the Group's financial
statements, therefore the table above represents the Group's 50 percent share in
all the operations other than the Holiday Inn Express property which is reported
at 100 percent. In short the prior release included revenues attributable to
100% of the Costa Rica operations instead of the percentage attributable to the
Group only. Revenue in the Group's Costa Rica has been impacted recently by the
recession, higher unemployment and a soft gaming market.
(2) Revenues in the Group's Poro Point property in the Philippines have been
negatively impacted in Q2 2011 by a smoking ban that went into effect in its
Poro Point property. The Group has taken corrective measure and also believes
that this ban will have a short-term impact only. We are waiting to determine if
the return to growth above is a return to the previous trend.
(3) Revenues in the Group's Peru casinos have been negatively impacted in Q2
2011 by a smoking ban that went into effect in March 2011. The Group has taken
corrective measure and also believes that this ban will have a short-term impact
only. We are waiting to determine if the return to growth above is a return to
the previous trend.
(4) July 2011 revenues consist of revenue from the El Pueblo and Fiesta hotels
and managements fees for the Thunderbird Hotels-Pardo, and Thunderbird Hotels-
Carrerra; July 2010 revenues for comparison purposes only consist of revenue
from the Thunderbird Hotels-El Pueblo and Thunderbird Hotels-Fiesta only, plus
management fees for the Pardo hotel, that being the one hotel under management
for July 2010.
BOARD APPROVAL TO ISSUE SHARES TO PAY DOWN DEBT
The Group is pleased to announce that its Board of Directors recently approved
the issuance of up to 900,000 or approximately 4% of the outstanding shares of
the Company. The purpose is to enhance the Company's balance sheet and cash flow
(a goal for 2011 stated in our 2010 Annual Report) by selling shares directly to
third parties and/or issuing them into Treasury to be sold by the Group at
regulatory allowed periods. The term for the Board's authorization on the
issuance of these shares is 12 months beginning 9 July 2011? To date, the
Company under this authorization has issued approximately 345,000 shares to
third parties at prices of not less than 90% of the 30-day or 15-day average
weighted market price.
ABOUT THE COMPANY
We are an international provider of branded casino and hospitality services,
focused on markets in Central America, South America, Southeast Asia, and India.
Our mission is to "create extraordinary experiences for our guests." Additional
information about the Group is available on its World Wide Web site 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 NYSE Euronext Amsterdam and
other regulatory authorities.
Contacts:
Thunderbird Resorts Inc.
Kevin McDonald
Investor Relations
(858) 668-2503
kevin.mcdonald(at)thunderbirdresorts.com
Thunderbird Resorts Inc.
Peter LeSar
Chief Financial Officer
plesar(at)thunderbirdresorts.com
www.thunderbirdresorts.com
--- End of Message ---
Thunderbird Resorts Inc.
Calle Alberto Navarro El Cangrejo, Apartado Panama, Republic of Panama
Listed: Open Market (Freiverkehr) in Frankfurter Wertpapierbörse;
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Thunderbird Resorts Inc. via Thomson Reuters ONE
[HUG#1538127]
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Datum: 12.08.2011 - 08:50 Uhr
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News-ID 57210
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contact information:
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