thl FY22 Interim Results

25 February 2022

MEDIA | NZX RELEASE
TOURISM HOLDINGS LIMITED (thl)

INTERIM RESULTS FOR THE HALF YEAR ENDED 31 DECEMBER 2021

Summary:
•Statutory net loss after tax of $4.4M and ordinary net loss after tax of $2.3M.
•Net debt at $18.7M, providing approximately $232M of headroom.
•Total revenue of $174.9M, down $30.9M on the prior corresponding period (pcp).
•Vehicle sales margins continue to be higher than historical norms. We expect that margins will normalise over time.
•Supply chain and inflation related issues are increasing in intensity with varying impacts by region. These issues influence decisions on the quantum of vehicles we allow for sale.
•Non-tourism business diversity strengthened with Action Manufacturing’s proposed acquisition of MaxiTRANS New Zealand.(1)
•New Zealand and Australian EBIT improved on the pcp with good cost management and ongoing vehicle sales performance, despite the ongoing challenges in the rental demand environment due to border restrictions.
•As previously indicated, USA EBIT declined on the pcp due to the domestic environment in Q1. The rental demand environment is improving into the next high season. Vehicle sale demand and margins continue to perform strongly.
•No dividend declared for the half and it is expected that this will remain the same for the full year.
•On a standalone basis, thl’s result for H2 FY22 (excluding transaction costs of NZ$4.0m that are expected to be incurred in that half) is still expected to be a net loss after tax, however improved on the pcp.(2)

thl today releases its results for the half year ended 31 December 2021.

Rob Campbell, thl Chair, said “the loss is reflective of another period where thl has been materially impacted by the ongoing COVID-19 pandemic. Despite this, thl remains proactive in mitigating the current impact on its business and positioning itself to succeed assuming international tourism returns in a meaningful way.

”Without a doubt the most significant event in the period was the agreement for the proposed merger of thl and Apollo. We are highly engaged with the various regulators and based on current information, expect to have greater clarity on the next steps in early April.

“The proposed merger is expected to provide both sets of shareholders with the benefits of the material cost synergies that aren’t available to either party without the merger. In doing so, it positions us to be a more resilient company that can regrow with greater efficiency as fleet is rebuilt in line with tourism activity.”

Grant Webster, thl Chief Executive, said “thl is a global entity, excited about the opportunities with international travellers already visiting the USA and starting to book for Australia. The fact that New Zealand has no certainty on the removal of self isolation requirements is frustrating but it won’t stop thl investing globally for growth.

“Additionally, the strong vehicle sales environment is a common trait across all of our jurisdictions and our teams are focused on maximising margins whilst managing sales volumes to position the businesses with the fleet required for peak season rental needs. This is a balance that we consider on a weekly basis by jurisdiction and respond appropriately.

“Action Manufacturing has also delivered a significantly improved result on the pcp, and has a positive outlook for the coming years which will be complemented by its proposed acquisition of the New Zealand businesses of MaxiTRANS.”

thl’s interim financial statements and investor presentation are available on thl’s website.

(1) Subject to Commerce Commission approval.
(2) thl’s statutory net loss after tax for the second half of the financial year ending 30 June 2021, being the pcp, was a loss of NZ$12.7M.


ENDS

Authorised by:

Rob Campbell
Chair, Tourism Holdings Limited

For further information contact:
Grant Webster
thl Chief Executive Officer
Direct Dial: +64 9 336 4255
Mobile: +64 21 449 210

About thl (www.thlonline.com)

thl is a global tourism operator. We are listed on the NZX and are the largest provider of RVs for rent and sale in Australia and New Zealand, and the second largest in North America. In the USA, we own and operate the Road Bear RV Rentals & Sales brand and El Monte RV Rentals & Sales. In the UK, thl owns 49% of Just go Motorhomes. Within New Zealand, we operate Kiwi Experience and the Discover Waitomo group, which includes Waitomo Glowworm Caves, Ruakuri Cave, Aranui Cave and The Legendary Black Water Rafting Co. thl also owns and operates Action Manufacturing, New Zealand’s largest motorhome and specialist vehicle manufacturer.

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