|THUNDERBIRD ANNOUNCES THIRD QUARTER RESULTS
San Diego, CA,
International Thunderbird Gaming Corporation (TSE - INB) announces its financial results for the third quarter ended September 30, 2000. All amounts are in US dollars.
Another record quarterly performance in Panama
Revenues for the quarter were $4,469,000, including record revenue from the Company’s 50% interest in four casinos in Panama of $3,737,000. This compares with 1999-third quarter revenues of $3,906,000 and Panama revenues of $2,875,000. The growth in Panama revenues of 30% year on year was achieved from the same four facilities and is a reflection of the Company’s core strength in casino operation.
For the nine months ended September 30, the Company reports revenues of $12,968,000 compared with $12,117,000 in 1999. Net loss for the nine months was $443,000 or $0.02 per share compared with profit of $583,000 or $0.03 per share in 1999.
Although the Company’s operations in Panama (profits in the current quarter of $708,000) and Guatemala (current quarter profits of $252,000) continued to show strong results, the Company incurred a loss for the third quarter of $340,000 or $0.01 per share, compared to profits a year ago of $187,000, or $0.01 per share. The loss is attributable to heavy investment in development. During the nine months ended September 30, the Company expensed $653,000 of development activities in Mexico and Venezuela alone. Development activities in the Internet market, Costa Rica and other jurisdictions resulted in additional expenses of $51,000.
Venezuela Gaming License and Update on Development Efforts
In Venezuela, our first project in the Intercontinental Hotel in the City of Guayana received its preliminary casino license on November 3, 2000. Our site is only the fourth casino in the country to receive such a license and we are now proceeding with renovation of this facility with an expected completion date in the first quarter of 2001.
The Company’s development efforts have resulted in the announcement of a number of projects in the quarter. These projects, currently in development, will significantly augment the Company’s revenues and earnings in the coming year.
In Mexico, the Company's Matamoros operation has achieved profitability on a local level and revenues continue to increase. The Company's second location, in Nuevo Laredo, Mexico has been identified. The Company is expecting to receive municipal permitting imminently, and opening is expected within 45 days. Four additional locations are in negotiation for municipal permits and real estate leases.
In Costa Rica, we have completed demolition in the leased space in the Presidente Hotel, and have commenced remodeling and tenant improvements. We currently anticipate opening early in the first quarter of 2001.
In Nicaragua, our project in the Hotel Intercontinental Managua required no demolition and we have begun the remodeling of the leased space. This facility should be ready for operation on or around New Year’s Eve.
In Guatemala, we are negotiating with our local licensees for expansion into new locations.
Our Internet Casino, FiestaCasinos.com has made steady progress during the quarter.
The Company has identified two additional countries within its target geographic region of Central and South America where development activities have commenced and specific locations have been identified. As of this date, no agreements have been signed, so there are no additional details to provide.
$30 Million Facility
In order to meet the capital requirements for its expansion, the Company has been aggressively pursuing a number of interested parties and financing agents on a funding program. The Company is pleased to announce that it has reached an agreement with an New York based company, Provident Group, as its exclusive financing advisor for the arrangement and placement of financing estimated at, but not limited to, US$30,000,000. Provident Group is an international investment bank committed to providing a full range of financial services to the Caribbean and Central and South America. Provident Group combines a singular set of talents: the expertise of veteran Wall Street leaders with ties to the region's business elite who know and have access to the local markets. Through this combination, Provident Group has established a powerful network of relationships and affiliations that enable it to originate, process and distribute a wide range of investment banking, private placements and asset management transactions in the region.
In other business, the Company is proceeding with
litigation against a California Native Tribe. At September 30, 2000, California
Gaming Amounts Recoverable ("CGAR") was carried on the balance sheet at
$686,000. The Company will not recognize any gains on the CGAR until collections
Effective November 1, 2000, Thunderbird renegotiated the terms of a current payable to a three-year amortizing term at a favorable rate of interest. At November 1, 2000, the amount of this payable was $988,000 and the renegotiations will have a favorable impact on the Company’s working capital position at year-end.
The Company’s balance sheet showed continued strength in the quarter despite the heavy development expenditures, with the ratio of current assets to liabilities falling slightly to 0.88 from 0.92 at June 30. Total debt, including working capital deficiency, capital lease obligations, and long term debt and deferred income taxes payable, fell marginally to $2,618,000 from $2,681,000 at June 30. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) remained strong at $629,000 for the quarter after development expense of $489,000.
International Thunderbird Gaming Corporation is an owner and manager of international gaming facilities. The Company’s shares trade on the Toronto Stock Exchange under the symbol INB. Additional information about the Company is available on its World Wide Web site at www.thunderbirdgaming.com.
On behalf of the Board of Directors
Cautionary Notice: This release contains certain forward-looking statements
within the meaning of section 21E of the United States Securities Exchange
Act of 1934, as amended. All statements, other than statements of historical
fact, included herein, including without limitation, statements regarding
potential revenue and future plans and objectives of the Company 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 Company'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 Company's documents filed from time-to-time with the TSE and other