ZURICH, April 30, 2022 (GLOBE NEWSWIRE) — Thunderbird Resorts Inc. (“Thunderbird”) (FSE: 4TR; and Euronext: TBIRD) is happy to announce that its 2021 Annual Report and Audited Consolidated Financial Statements have 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 rules, the Annual Report is meant to adjust to the principles and rules set forth by the AFM and the Euronext Amsterdam.
Copies of the Annual Report within the English language will probably be accessible without charge on the Group’s web site at www.thunderbirdresorts.com. Copies within the English language can be found without charge on the Group’s operational workplace in Panama and on the workplaces of our native 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, e mail: [email protected]). Copies are additionally accessible on SEDAR at www.SEDAR.com.
Below are sure materials excerpts from the total 2021 Annual Report, everything of which could be discovered on our web site at www.thunderbirdresorts.com.
LETTER FROM CEO
Dear Shareholders and Investors:
The under summarizes the Group’s efficiency by December 31, 2021.
1. CHANGES IN PERFORMANCE IN 2021
In abstract, Group income and adjusted EBITDA from persevering with operations elevated by $2.1 million or 18.5% and $1.6 million or 68.8%, respectively. Consolidated Profit for the interval is $289 thousand, an enchancment of $2.2 million or 114.8% as in contrast with 2020 outcomes.
A. EBITDA1: Peru property EBITDA fell by $78 thousand whereas Nicaragua property EBITDA elevated by $1.56 million, each by December 31, 2021, as in comparison with the identical interval in 2020. Corporate Expense was diminished by $70 thousand in 2021 as in comparison with 2020. Adjusted EBITDA elevated by $1.6 million or by 68.8% by December 31, 2021, as in comparison with by December 31, 2020.
B. Profit / (Loss): The Group’s Loss improved by roughly $2.2 million to a revenue of $289 thousand for the interval as in comparison with 2020. This enchancment was the results of elevated income of $2.1 million partially offset by elevated bills of $505 thousand in 2021 as in comparison with 2020.
C. Net Debt: Net debt as of December 31, 2021, elevated to $16.1 million as in comparison with $15.8 million as of December 31, 2020. Due to a change in accounting coverage as required by IFRS 16, the Group is required to account for the web current worth of actual property working lease contracts as Obligations beneath leases and rent buy contracts. Approximately $4.7 million of our web debt is comprised of Obligations beneath leases and rent buy contracts.
2. MANAGEMENT TO MITIGATE THE RISKS OF COVID-19
In phrases of demand, Covid-19 hit the Group’s markets more durable than in a lot of the world. Hotels, generally, remained largely empty, workplace leases have been generally terminated or materially renegotiated and gaming amenities, like with eating places in different elements, have been usually seen as larger contagion dangers as in comparison with different companies. Moreover, not like within the developed markets, there have been few fiscal instruments and insurance policies accessible to assist companies and to stimulate demand within the Group’s markets.
Having stated that, in 2021 and thru date of 2022, Management stabilized its operations and money administration as in comparison with 2020, and really feel moderately assured that the Group is ready to keep on with the shareholder mandate set forth within the September 21, 2016, Special Resolutions. To be prudent, nevertheless, the Group has up to date its Management Statement on Going Concern as in comparison with the final replace in its 2021 Half-year Report. See extra about Group’s progress instantly under.
3. MATERIAL PROGRESS TOWARD SHAREHOLDER MANDATE
The Group continues to pursue selections that can assist one of the best curiosity of shareholders in response to the shareholder mandate set forth within the September 21, 2016, Special Resolutions, the standing of which is summarized under in relation to the Group’s key remaining belongings:
A. Peru Hotel Real Estate Converted to Apartment Units: As of the date of publication of this 2021 Annual Report, the Group has transformed its 66-suite resort in Lima, Peru, right into a 66-unit condominium condominium advanced. The Group has: i) Legally sub-divided the previous resort into 66 individually titled condominium models; ii) Procured all change of use and different regulatory approvals; iii) Restructured roughly $4.5 million of senior debt primarily based on the change of use, enabling the Group to promote models and speed up debt cost with every sale; and iv) Executed preliminary gross sales agreements for about 40 condominium models with estimated gross sales worth of roughly $6 million. Final financial institution approvals have been obtained in April 2022, and the Group is now actively signing remaining gross sales agreements for contracted models and pursuing the gross sales of remaining models with a projection to generate in extra of $10 million from all unit gross sales, with potential completion of this transaction throughout 2022.
B. Peru Office Real Estate Performance Improving: The Group additionally has roughly 6,703 m2 of rentable-sellable workplace area, and 158 underground parking areas. Office occupancies have improved materially in Q1 2022, rising from lower than 60% occupancy within the depths of the covid disaster to roughly 80% as of the date of publication of this 2021 Annual Report. While leases should not producing the identical income per sq. meter than achieved pre-covid, the Group’s typical 2- to 5-year lease renewal schedule ought to assist to get better misplaced income per meter as leases come up for renewal.
C. Nicaragua Gaming and Real Estate Assets: As of the publication date of this 2021 Annual Report, the Group continued to personal a 56% curiosity in a Nicaraguan holding firm that owns the next belongings: i) Gaming: Three full casinos and three slot parlors with a mixed roughly 630 gaming positions; and ii) Real Estate: Approximately 4,562 m2 of land divided amongst 5 parcels as extra absolutely detailed on web page 14. While not exactly segmented herein, Nicaragua EBITDA has skilled materials restoration from the twond half of 2021 by Q1 2022.
D. Costa Rica Real Estate Asset: As of the publication of this 2021 Annual Report, the Group continues to personal a 50% curiosity in a Costa Rican entity that owns the 11.6-hectare actual property property generally known as “Tres Rios.” Tres Rios, with its personal, devoted off ramp, is situated near the nation’s 2nd largest mall on the freeway between the capital metropolis of San Jose and the commuter metropolis of Cartago.
The Group will proceed to pursue selections that can assist one of the best curiosity of shareholders in response to the shareholder mandate set forth within the September 21, 2016, Special Resolutions.
Salomon Guggenheim
Chief Executive Officer and President
April 30, 2022
1. “EBITDA” will not be an accounting time period beneath IFRS, and refers to earnings earlier than web curiosity expense, earnings taxes, depreciation and amortization, fairness in earnings of associates, minority pursuits, improvement prices, different beneficial properties and losses, and discontinued operations. “Property EBITDA” is the same as EBITDA on the nation stage(s). “Adjusted EBITDA” is the same as property EBITDA much less “Corporate expenses,” that are the bills of working the mother or father firm and its non-operating subsidiaries and associates.
GROUP OVERVIEW
The Group’s consolidated revenue / (loss) abstract for the twelve months ended December 31, 2021, as in contrast with the identical interval of 2020 is contained within the Group’s Annual Report for 12 months ending December 31, 2021, situated at www.thunderbirdresorts.com. In abstract, Group income and adjusted EBITDA elevated by $2.1 million or 18.5% and $1.6 million or 68.8%, respectively. Consolidated Profit for the interval is $289 thousand, an enchancment of $2.2 million or 114.8% as in contrast with 2020 outcomes.
RISK MANAGEMENT
For extra element on Risk Factors, see Chapter 8 of the Annual Report.
MANAGEMENT STATEMENT ON “GOING CONCERN”
Management has reviewed their plan with the Directors and has collectively shaped a judgment concerning the going concern of the Group. In arriving at this judgment, Management has ready the money circulation projections of the Group. The Group has suffered recurring losses over the previous years. In response to the recurring losses of the earlier years, Management has taken actions which will probably be described within the following paragraphs.
Directors have reviewed this info supplied by Management and have thought-about the knowledge in relation to the financing uncertainties within the present financial local weather, the Group’s current commitments and the monetary assets accessible to the Group. Specifically, Directors have thought-about: (i) there are in all probability no sources of latest financing accessible to the Group; (ii) the Group has restricted buying and selling exposures to our native suppliers and retail clients; (iii) different dangers to which the Group is uncovered, essentially the most vital of which is taken into account to be regulatory danger; (iv) sources of Group earnings, together with administration charges charged to and earnings distributed from its varied operations; (v) money technology and debt amortization ranges; (vi) elementary developments of the Group’s companies; (vii) means to re-amortize and unsecured lenders; and (viii) stage of curiosity of third events within the acquisition of sure working belongings, and standing of real progress and likelihood of closing inside the Going Concern interval. The Directors have additionally thought-about sure vital elements that may have an effect on persevering with operations, as follows:
- Special Resolution: On September 21, 2016, the Group’s shareholders authorised a particular decision that, amongst different objects, licensed the Board of Directors of the Corporate to promote “any or all remaining assets of the Corporation in such amounts and at such times as determined by the Board of Directors.” This decision facilitates the sale of anyone or any mixture of belongings required to assist sustaining of a going concern by the Group.
- Corporate Expense and Cash Flow: Corporate expense has decreased materially lately, and continues to lower, however nonetheless should accommodate for compliance as a public firm.
- Liquidity and Working Capital: As of the date of publication of this 2021 Annual Report, the Group forecasts working with decrease ranges of reserves and dealing capital till such time as liquidity occasions may happen. Selling belongings will probably be vital to making a wholesome stage of working capital reserves for intervals past the Going Concern interval.
While the under occasions or lack thereof might create uncertainty and solid doubt on going concern, the Group believes that it’s in a stronger place to maintain going concern as of the publication date of this 2021 Annual Report as in comparison with latest years throughout the covid disaster.
- Peru Real Estate Sales: As of the date of publication of this 2021 Annual Report, the Group has transformed its 66-suite resort in Lima, Peru right into a 66-unit condominium condominium advanced. The Group has: i) Legally sub-divided the previous resort into 66 individually titled condominium models; ii) Procured all change of use and different regulatory approvals; iii) Restructured roughly $4.5 million of senior debt primarily based on the change of use, enabling the Group to promote models and speed up debt cost with every sale; and iv) Executed preliminary gross sales agreements for about 40 condominium models with estimated gross sales worth of over $6 million. Final financial institution approvals have been obtained in April 2022, and the Group is now actively signing remaining gross sales agreements for contracted models and pursuing the gross sales of remaining models with a projection to generate in extra of $10 million from all unit gross sales, with potential completion of this transaction throughout 2022. If for no matter motive the Group will not be in a position to full the gross sales of ample models to pay down its senior secured lender and associated authorities supported debt in Peru (mixed of roughly $5M) and to partially pay down its remaining unsecured debt, this might hurt the Group’s means to stay as a going concern in 2024.
- Other liquidity occasions: If the Group will not be in a position to create different liquidity occasions from its remaining Peru, Costa Rica and Nicaragua belongings in 2023-2024, it’s cheap to anticipate that unsecured lenders might pursue years of litigation in opposition to the Group at the moment, although as as to if or not this might have an effect on Going Concern at the moment is tough to evaluate.
Considering the above, Management and Directors are glad that the consolidated Group has sufficient assets to mitigate the uncertainty and that the Group is ready to proceed as a going concern for not less than the 12 months following the submitting date of this report. For these causes, Management and Directors have due to this fact ready the consolidated monetary statements on a going concern foundation.
THUNDERBIRD RESORTS, INC. CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Expressed in 1000’s of United States {dollars}) For the 12 months ended December 31, 2021, have been authorised by the Board of Directors on April 30, 2022, and are contained within the 2021 Annual Report posted at www.thunderbirdresorts.com. The consolidated monetary statements and the accompanying notes are an integral a part of these consolidated monetary statements.
SUBSEQUENT EVENTS
These are the fabric occasions to reveal from December 31, 2021, by the discharge of this 2021 Annual Report
Peru Hotel Real Estate Converted to Apartment Units: As of the date of publication of this 2021 Annual Report, the Group has transformed its 66-suite resort in Lima, Peru, right into a 66-unit condominium condominium advanced. The Group has: i) Legally sub-divided the previous resort into 66 individually titled condominium models; ii) Procured all change of use and different regulatory approvals; iii) Restructured roughly $4.5 million of senior debt primarily based on the change of use, enabling the Group to promote models and speed up debt cost with every sale; and iv) Executed preliminary gross sales agreements for about 40 condominium models with estimated gross sales worth of over $6 million. Final financial institution approvals have been obtained in April 2022, and the Group is now actively signing remaining gross sales agreements for contracted models and pursuing the gross sales of remaining models with a projection to generate in extra of $10 million from all unit gross sales, with potential completion of this transaction throughout 2022.
ABOUT THE COMPANY
Thunderbird Resorts Inc. is a world supplier of branded on line casino and hospitality companies, centered on markets in Latin America. Its mission is to “create extraordinary experiences for our guests. “Additional details about the Group is offered at www.thunderbirdresorts.com.
Cautionary Notice: Cautionary Notice: The Annual Report referred to on this launch comprises sure forward-looking statements inside the that means of the securities legal guidelines and rules of assorted worldwide, federal, and state jurisdictions. All statements, apart from statements of historic truth, included within the Annual Report, together with with out limitation, statements relating to potential income and future plans and goals of Thunderbird are forward-looking statements that contain danger and uncertainties. There could be no assurances that such statements will show to be correct and precise outcomes might differ materially from these anticipated in such statements. Important elements that might trigger precise outcomes to vary materially from Thunderbird’s forward-looking statements embody aggressive pressures, unfavorable adjustments in regulatory constructions, and common dangers related to business, all of that are disclosed beneath the heading “Risk Factors” and elsewhere in Thunderbird’s paperwork filed from time-to-time with the Euronext Amsterdam and different regulatory authorities. Included within the Annual Report are sure “non-IFRS financial measures,” that are measures of Thunderbird’s historic or estimated future efficiency which might be completely different from measures calculated and offered in accordance with IFRS, inside the that means of relevant Euronext Amsterdam guidelines, which might be helpful to buyers. These measures embody (i) Property EBITDA consists of earnings from operations earlier than depreciation and amortization, write-downs, reserves and recoveries, mission improvement prices, company bills, company administration charges, merger and integration prices, earnings/(losses) on pursuits in non-consolidated associates and amortization of intangible belongings. Property EBITDA is a supplemental monetary measure we use to judge our country-level operations. (ii) Adjusted EBITDA represents web earnings earlier than curiosity expense, earnings taxes, depreciation and amortization, fairness in earnings of associates, minority pursuits, improvement prices, and acquire on refinancing and discontinued operations. Adjusted EBITDA is a supplemental monetary measure we use to judge our general operations. Property EBITDA and Adjusted EBITDA are supplemental monetary measures utilized by administration, in addition to trade analysts, to judge our operations. However, Property and Adjusted EBITDA shouldn’t be construed as a substitute for earnings from operations (as an indicator of our working efficiency) or to money flows from working actions (as a measure of liquidity) as decided in accordance with typically accepted accounting ideas.
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