Second Quarter Results JULY 21, 1999
International Thunderbird Gaming Corporation Announces
Second Quarter Results
SAN DIEGO, CALIFORNIA--International Thunderbird Gaming
Corporation (TSE - INB) is pleased to announce the operating
results for the second quarter ended June 30, 1999. Subsequent
events and updates were reported in previous press releases.
Revenues for the second quarter ended June 30, 1999 were
$4,428,000 compared to $3,525,000 reflecting a $903,000 increase
from the same period in 1998. Net income was $350,000 compared to
a ($3,773,000) loss for the second quarter of 1998. Earnings per
share, for the three month period were $0.015 compared to ($0.163)
for the same period in 1998.
Total revenues for the six months ended June 30, 1999 were
$8,166,000 compared to $8,000,000 for the same period in 1998. Net
income for the first half of the year was $396,000 compared to
($3,628,000) loss for the same period of 1998.
The Company's operating results for the second quarter of 1998 as
compared to second quarter 1999 reflects the abandonment of
revenue from non compacted California Native American revenue
shares as directed by the U.S. Attorneys in California combined
with the costs of continued development of operations in Central
America to replace the loss of revenue. The Company's sources of
revenue during the first six months of 1999 have almost completely
changed as compared to the first six months of 1998. The 1999
revenues include the share of revenues attributable to the
Company's one-half interest in the joint venture which operates
the four "Fiesta Casinos" located in Panama as well as revenues
from revenue sharing agreements covering video lottery terminals
located in Guatemala and revenues from the Company's Calsino sign
subsidiary. Revenues for the first six months of 1998 included
$5,310,000 from California Native American revenue share contracts
which the Company ceased collections on in May of 1998.
General and administrative expenses and depreciation and
amortization reduced from $8,876,000 during the first six months
of 1998 to $3,328,000 for the comparable period in 1999 as a
result of the previously announced discontinuance of a number of
the Company's business operations and as a result of the
implementation of a plan by management to reduce and stringently
control expenses. Management is pleased that the Company
finalized the terms of repaying approximately $1.5 million in
loans payables that were previously in default as of 12/31/98 such
that these payables are current and no longer in default
The Company continues to pursue its first gaming project in
Venezuela in accordance with its previously issued Press Release.
In addition, the Company is proceeding with its due diligence and
addressing regulatory issues concerning its proposed merger with a
subsidiary of Imperial Gaming Corporation. The Company is also
closely monitoring the legal, regulatory and political climate
relating to California's Native American Gaming industry and is
expecting that California's Supreme Court will issue its
decision on Proposition 5 sometime in September of 1999.
International Thunderbird Gaming Corporation is an owner and
manager of international gaming facilities. Additional
information about the Company is available on its World Wide Web
site at www.thunderbirdgaming.com.
On behalf of the Board of Directors
Jack R. Mitchell, President and CEO
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 regulatory authorities.
/T/
INTERNATIONAL THUNDERBIRD GAMING CORPORATION
Consolidated Balance Sheets
June 30, 1999 and 1998
(Unaudited - Prepared by Management)
--------------------------------------------------------------
1999 1998 (2)
Assets
Current assets
Cash $ 1,810,000 $ 1,864,000
Accounts receivable 841,000 1,511,000
Inventories and prepaid
expenses 1,996,000 5,995,000
Current portion of loans
receivable 373,000 647,000
--------------------------------------------------------------
5,020,000 10,017,000
Loans receivable 907,000 1,236,000
Capital assets 4,288,000 6,937,000
Panama gaming license, project
development 1,667,000 4,243,000
Goodwill, net of accumulated
amortization 51,000 1,001,000
Other assets 4,034,000 948,000
--------------------------------------------------------------
$ 15,967,000 $ 24,382,000
--------------------------------------------------------------
--------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and
accrued liabilities $ 4,882,000 $ 4,255,000
Current portion of capital
lease obligations 211,000 68,000
Loans payable 3,886,000 2,995,000
Convertible debentures 200,000 -
Income taxes payable 242,000 323,000
--------------------------------------------------------------
9,421,000 7,641,000
Capital lease obligations 403,000 181,000
Loans payable 1,533,000 3,586,000
Convertible debentures - 199,000
--------------------------------------------------------------
11,357,000 11,607,000
Shareholders' equity
Share capital 20,822,000 20,936,000
Retained earnings (15,684,000) (8,414,000)
Foreign exchange adjustment (528,000) 253,000
--------------------------------------------------------------
4,610,000 12,775,000
--------------------------------------------------------------
$ 15,967,000 $ 24,382,000
--------------------------------------------------------------
--------------------------------------------------------------
See Notes to the Financial Statements
INTERNATIONAL THUNDERBIRD GAMING CORPORATION
Consolidated Statements of Operations and Retained Earnings
Six months ended June 30, 1999 and 1998
(Unaudited - Prepared by Management)
--------------------------------------------------------------
1999 1998 (2)
--------------------------------------------------------------
Revenue
Product sales $ 1,314,000 $ 1,024,000
Gaming operations 6,852,000 6,976,000
--------------------------------------------------------------
8,166,000 8,000,000
Costs and expenses
Product sales 798,000 963,000
Gaming operations 2,956,000 1,274,000
--------------------------------------------------------------
3,754,000 2,237,000
Gross profit 4,412,000 5,763,000
Expenses
General and administrative 2,724,000 7,282,000
Depreciation and amortization 604,000 1,594,000
--------------------------------------------------------------
3,328,000 8,876,000
Earnings from operations 1,084,000 (3,113,000)
Financing costs 506,000 329,000
--------------------------------------------------------------
Earnings before income taxes 578,000 (3,442,000)
Income taxes
Current 182,000 186,000
--------------------------------------------------------------
182,000 186,000
Net income 396,000 (3,628,000)
Retained earnings, beginning
of period (16,080,000) (4,786,000)
--------------------------------------------------------------
Retained earnings, end of
Period $(15,684,000) $ (8,414,000)
--------------------------------------------------------------
Basic earnings per share $ 0.02 $ (0.16)
--------------------------------------------------------------
Fully diluted earnings per
Share $ 0.02 $ (0.16)
--------------------------------------------------------------
See Notes to the Financial Statements
INTERNATIONAL THUNDERBIRD GAMING CORPORATION
Consolidated Statements of Changes in Financial Position
Six months ended June 30, 1999 and 1998
(Unaudited - Prepared by Management)
--------------------------------------------------------------
1999 1998 (2)
--------------------------------------------------------------
Cash provided by (applied to):
Operations
Net income for the period $ 396,000 $ (3,628,000)
Items not involving cash:
Depreciation and
Amortization 604,000 1,594,000
Loss on disposal - 986,000
Other - (1,000)
Net change in non-cash
working capital items
Accounts receivable (111,000) 2,282,000
Inventories and prepaid
Expenses (127,000) 577,000
Accounts payable and
accrued liabilities (607,000) (231,000)
Income taxes payable 1,087,000 85,000
--------------------------------------------------------------
1,242,000 1,664,000
Financing
Repurchase and cancellation
of treasury stock - (145,000)
Loans payable 2,117,000 5,085,000
Repayment of loans and leases
Payable (2,624,000) (733,000)
--------------------------------------------------------------
(507,000) 4,207,000
Investments
Loans receivable, net 506,000 240,000
Expenditures on capital assets (563,000) (2,314,000)
Deferred costs - (1,016,000)
Investment in casinos (Panama) - (3,550,000)
--------------------------------------------------------------
(57,000) (6,640,000)
Increase in cash 678,000 (769,000)
Effect of foreign exchange
Adjustment 7,000 24,000
Cash, beginning of period 1,125,000 2,609,000
--------------------------------------------------------------
Cash, end of period $ 1,810,000 $ 1,864,000
--------------------------------------------------------------
See Notes to the Financial Statements
/T/
INTERNATIONAL THUNDERBIRD GAMING CORPORATION
Segmented information
Six months ended June 30, 1999 and 1998
(Unaudited - Prepared by Management)
For interim reporting periods beginning on or after January 1,
1999, all public companies are required to present segmented
information pursuant to Canadian GAAP. Management has organized
the information based on a combination of difference in products
and services and on geographic areas of operations. Based on this
organization, the Company has seven reporting segments. This
information is presented to assist the shareholders and others in
evaluating the performance of the Company.
As of June 30, 1999
/T/
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California Carolina Signage Colorado Guatemala
gaming gaming assembly video lottery
--------------------------------------------------------------
External revenue
$ 194,000 $ - $1,314,000 $ - $ 651,000
Inter-group revenue
- - - - -
Depreciation and
Amortization
48,000 - 56,000 - 126,000
Unusual items
(including
write-down
of assets) - - - - -
Income tax
expense - - - - 16,000
Profit
(loss) 146,000 - (248,000) - 499,000
Segment
assets 4,079,000 - 628,000 - 2,048,000
--------------------------------------------------------------
Aruba Panama Corporate Total
gaming gaming and other
--------------------------------------------------------------
External revenue $ - $6,006,000 $ - $8,166,000
Inter-group revenue - - - -
Depreciation and
Amortization - 354,000 20,000 604,000
Unusual items
(including
write-down
of assets) - - - -
Income tax
Expense - - 166,000 182,000
Profit
(loss) - 1,187,000 (1,190,000) 396,000
Segment
Assets - 6,059,000 3,153,000 15,967,000
--------------------------------------------------------------
As of June 30, 1998 (2)
--------------------------------------------------------------
California Carolina Signage Colorado Guatemala
gaming gaming assembly video lottery
--------------------------------------------------------------
External revenue
$5,935,000 $ 650,000 $ 164,000 $ 410,000 $ 197,000
Inter-group revenue
- 670,000 350,000 2,136,000 -
Depreciation and
Amortization
1,075,000 70,000 49,000 129,000 112,000
Unusual items
(including
write-down
of assets) - - - - 55,000
Income tax
expense - - - - -
Profit
(loss) 4,400,000 (316,000) (633,000)(1,536,000)(472,000)
Segment
assets 3,163,000 2,684,000 900,000 7,252,000 2,750,000
--------------------------------------------------------------
Aruba Panama Corporate Total
gaming gaming and other
--------------------------------------------------------------
External revenue $644,000 $ - $ - $8,000,000
Inter-group revenue - - 201,000 3,357,000
Depreciation and
Amortization 24,000 - 135,000 1,594,000
Unusual items
(including
write-down
of assets) - 544,000 - 599,000
Income tax
Expense - - 186,000 186,000
Profit
(loss) (797,000) (544,000)(3,730,000)(3,628,000)
Segment
Assets 804,000 6,055,000 774,000 24,382,000
--------------------------------------------------------------
/T/
See Notes to the Financial Statements
INTERNATIONAL THUNDERBIRD GAMING CORPORATION Notes to the
Financial Statements
Note 1 Most entities depend on computerized systems and therefore
are exposed to the Year 2000 conversion risk, which if not
properly addressed, could affect an entity's ability to conduct
normal business operations. Management has and continues to
address this issue, however, given the nature of the risk, it is
not possible to be certain that all aspects of the Year 2000 issue
affecting the Company and those with whom it deals, such as
customers, suppliers, or other third parties, will be fully
resolved without an adverse impact on the Company's operations.
Note 2 The 1998 figures have been restated in U. S. dollars. At
year end December 31, 1998, the Company changed its reporting
currency from the Canadian dollar to the U.S. dollar for all
financial reporting, including earnings per share calculations.
This change was made as a significant portion of the Company's
operating, investment and financing activities are now transacted
in U.S. dollars.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
International Thunderbird Gaming Corporation
Investor Relations
(858) 451-3637 or 1-888-451-3637
(858) 451-1169 (FAX)
E-mail: info@thunderbirdgaming.com
Website: www.thunderbirdgaming.com |
