THL Interim Results FY17
Tourism Holdings Limited
Tel: +64 9 336 4299
The Beach House
Fax: +64 9 309 9269
Level 1, 83 Beach Road
www.thlonline.com
Auckland City
PO Box 4293, Shortland Street
Auckland 1140, New Zealand
21 February 2017
NZX | MEDIA RELEASE
TOURISM HOLDINGS LIMITED (thl)
HALF YEAR RESULTS TO 31 DECEMBER 2016
thl half year NPAT up 38%, with a confident plan for the future
Highlights:
NPAT of $11.3M compared to $8.2M prior corresponding period (pcp)
Dividend declared of 10cps (partially imputed)
Forecast full year NPAT expected to exceed $27.0M
thl today released its half year results to 31 December 2016 with a Net Profit After Tax of $11.3M, up 38% on
the prior corresponding period. Total revenue is up $12.3M, or 9%, with operating earnings before interest
and tax (EBIT) up 25%.
Chairman, Mr Rob Campbell, said, “we continue to deliver profit, ROFE and dividend growth through
executing our plan effectively in a positive trading environment. The acquisition and announcements made
in December 2016 provide another positive leap for the business.
thl has reset its aims to a true global platform. We have set the FY20 NPAT goal of $50M with conservative
top line growth expectations based on the international trends.”
The December announcement referred to includes the $91M acquisition of El Monte Rents Inc., the second
largest RV rental business in the USA, the expansion of the Mighway platform into the North America market
and a series of transactions with Roadtrippers USA.
CEO, Mr Grant Webster, said, “we have learnt that any acquisition needs a clear and simple plan in the first
instance and we are working very effectively with the El Monte team to set some new goals and measures
that align with how we operate. We have a real enthusiasm across the business to achieve the 2020 goal. ”
The outlook and the full results presentation and commentary is available on the Company’s website.
END
2 of 3
NZX: THL (Tourism Holdings Limited)
FINANCIAL AND OPERATIONAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
This report has been based on the unaudited accounts which have been prepared in accordance with New
Zealand equivalents to International Financial Reporting Standards (NZIFRS).
Financial Results FY17 FY16 % Change
Total operating revenue $146.0M $133.7M +9%
Operating profit before tax $17.7M $13.7M +29%
Tax on operating profit $6.4M $5.5M +16%
Profit after tax attributable to members of the listed issuer $11.3M $8.2M +38%
Earnings per share from continuing operations cps 9.7cps 7.2cps +35%
Interim Dividend
Dividend per Share 10 cents per share
Imputation % Partially imputed to 50%
Record Date 3 April 2017
Payment Date 13 April 2017
Dividend Reinvestment Plan
A dividend reinvestment plan is to be introduced for the interim dividend. Eligible shareholders can elect to
reinvest the net dividend payable in new thl shares. The price of such shares will be the 5 day volume
weighted average price following the record date less a discount of 2%. Details of the dividend reinvestment
plan will be sent to eligible shareholders in early March and the last date for the registrar to receive election
notices or changes to election notices is 5pm on the record date.
Authorised by:
Rob Campbell
Chairman, Tourism Holdings Limited
For further information contact:
Grant Webster
thl Chief Executive Officer
Direct Dial: +64 9 336 4255
Mobile: +64 21 449 210
Mark Davis
thl Chief Financial Officer
Direct Dial: +64 9 336 4212
Mobile: +64 27 444 0199
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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. In the USA we own and operate the Road Bear RV Rentals and Sales brand and El Monte Rentals and 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 is a joint venture partner in
Action Manufacturing LP, New Zealand’s largest motorhome and specialist vehicle manufacturer.
---
Tourism Holdings Limited
Interim Report
Financial Year 2017
BRIGHT HORIZONS.
DELIVERING
ON THE PLAN.
01 Highlights
02 Chairman and CEO report
06 Consolidated income
statement
07 Consolidated statement
of comprehensive income
08 Consolidated statement
of changes in equity
10 Consolidated statement
of financial position
11 Consolidated statement
of cash flows
12 Notes to the consolidated
financial statements
27 Corporate information
CONTENTS
thl has had a pleasing first half result and is well positioned for a full
year result that is forecast to exceed $27m NPAT. The acquisition and
investments announced in December 2016 create another platform for
future growth.
HIGHLIGHTS
9%25%38%
UP
H1 EBIT
$146M
10CPS
$18.7M$11.3M
H1 REVENUE
INTERIM DIVIDEND
UP
(PARTIALLY IMPUTED)
UPUP
H1 EARNINGS BEFORE
INTEREST AND TAX*
H1 NET PROFIT
AFTER TAX
11%
$M
*EBIT excludes joint venture and associates earnings
All increases are compared to the prior correspondending period (pcp).
FY14FY15FY16
7.2
10.6
15.0
18.7
FY17
thl Interim Report 2017
2
Dear Shareholders
We are pleased to present thl’s Interim Report for
the first half of the 2017 financial year.
In December 2016 we released an update to the
market detailing the acquisition of El Monte Rents
in the USA, highlighting a new NPAT goal for 2020
of $50M and two advances in our digital growth
strategy, including the launch of a pilot of Mighway
into North America and the investment and
relationship we have formed with Roadtrippers USA,
the leading road trip app and tool.
As mentioned in that release, these actions reset
the expectations for thl for the next three years. We
have proven that we have the knowledge and ability
to integrate new businesses. With El Monte we have
gained a significant infrastructure base, market share
position and experience that, with the strong thl focus
on ROFE, will deliver superior results.
We have growth and improvement plans for the
existing businesses, a clear action plan for El Monte
and clarity on the strategic direction of the company
as we continue to build our position as a global leader
in the RV industry.
There are areas for improvement and we continue to
challenge ourselves, stretch ourselves and focus on
continuous delivery to publicly declared goals.
PROFIT GUIDANCE
The half year results for the business are on track
with the expectations we set in December, with
an NPAT result of $11.3M; up 38% on the prior
corresponding period.
We have maintained our NPAT guidance for the year
of $27M, although we will continue to drive the business
to exceed that expectation and treat the $27M as a
minimum deliverable. Results to date support that.
We are comfortable with the extension in debt as the
most effective way to fund the El Monte acquisition.
Through fleet reductions and earnings expansion in
El Monte, we expect to achieve the ROFE goals we
have set and deliver debt reduction.
OUTLOOK AND THE GLOBAL
POLITICAL ENVIRONMENT
In the past 10 months political events, in particular
Brexit and the USA election, have created some
new uncertainties in our markets. From a tourism
perspective there is some risk that such events lead
to volatility in consumer confidence or destination
preferences. Changes in exchange rates can have
a flow-on impact to the spending power of the
tourism customer. The UK and Europe have, for thl,
traditionally been the markets that react most to
these kinds of events.
To date we have seen no discernible change in short
or long term bookings due to Brexit in any of our
businesses. The USA inbound demand from Europe
and the UK has been more volatile week-to-week
recently, however there is nothing material to note
at this stage.
It is important to note that Road Bear has a strong
early booking trend and has a good high season profile
to date. El Monte has a balancing higher exposure to
the domestic market (~50%), which is performing to
expectations. Vehicle sales demand domestically in the
USA is very strong and shows signs of ongoing growth
into the coming 12 months. We will utilise this demand
dynamic to rotate fleet quickly and ensure we are in
a flexible position, benefitting operating costs, age
profile and customer delivery.
Chairman and CEO Report
thl Interim Report 2017
3
We will have a net reduction in our combined USA
fleet position and funds employed in El Monte over
the next two years.
New Zealand continues to experience high tourism
demand and Australia is showing higher demand
growth in recent months. Our forward plans currently
conservatively understate this experience.
Overall for thl, the vehicle sales market is very strong
in all markets. We see this as an ongoing feature
supported by manufacturing data across the world.
Likewise, we see ongoing growth in the rentals
business demand as the “experience seeker” market
continues to grow.
BUSINESS PERFORMANCE
Below is a brief commentary on the operating results
by business.
Group revenue for the period was up 9%, or $12M.
Services revenue was up 9% and vehicle sale revenue
up 10%.
Operating profit before interest and tax (EBIT) was
up $3.7M, or 25%, on the pcp. NPAT of $11.3M was
up 38% on the pcp.
NZ Rentals
The improvement in the New Zealand Rentals business
EBIT of $3.7M over last year reflected an increase
in revenue of $6.6M. The improved EBIT margin
reflected good cost control. Flex fleet increased over
the prior year and we are currently on track to exit
these vehicles to plan over the coming months. Lions
tour preparations are on track. Forward bookings into
subsequent periods are strong. Retail vehicle sales are
performing above expectations, as well as ancillary
retail and service revenue.
Australian Rentals
The Australian business EBIT growth of $0.9M, or
19%, was achieved on the back of a 5% increase in
Australian dollar revenue (nil growth in NZD due to
exchange rate movements). The Australian business
is at a point where utilisation is near a peak in nearly
all months. We are growing the fleet in a slow, flexible
and controlled fashion to leverage the overheads
and grow EBIT. We have introduced Flex fleet for the
summer period and are happy with the progress to
date, which will be reflected in the full year results
for Australia.
Costs continue to be well managed with initiatives
such as telematics continuing to provide an improved
customer experience and lower operating costs.
USA Rentals – Road Bear
In USD terms revenue was up 18% on the pcp and
EBIT up 7%. The business continues to provide the
highest ROFE within the rentals group in thl.
Costs increased in line with expectations and
as indicated within previous market releases.
The new Seattle branch performed well throughout
the high season.
Vehicle sales remain a highlight, with a record-breaking
end to the calendar year. This momentum has
continued through to the start of the second half.
USA Rentals – El Monte
With the transaction effective 1 January 2017, there
is no impact on the interim results. The business
has started on track with our expectations. There is
nothing of note we have found in the last two months
that has impacted our views on the potential of
this business.
The crew in El Monte have been very supportive of the
change in ownership, especially considering the tenure
of the founding family.
We will report El Monte separately to Road Bear in
the FY17 investor updates, detailing similar metrics
as Road Bear.
Timing of synergies has not changed and the vehicle
sales plan is currently on track.
Chairman and CEO Report
thl Interim Report 2017
4
Tourism Businesses
The tourism businesses again showed strong
growth, with Waitomo visitor increases exceeding
New Zealand’s international visitor arrival growth.
The EBIT increase of $1.0M was based on an
increase in revenue of $2.6M, or 17%. The Waitomo
business had the benefit of the full six months’ of the
Homestead (opened under thl from December 2015)
and increased retail space on the main Glowworm
Cave site.
Demand continues to grow in all parts of the
Waitomo business.
Kiwi Experience has seen a revenue decline and
increase in costs due to the Kaikoura earthquake,
where we have lost add-on sales and faced increased
transport costs. This has not been material in the
result, but did soften the growth.
The tourism businesses outlook remains very positive
from a revenue and EBIT growth perspective. There
is minimal cash required for these businesses over
the next few years, excluding any potential growth
initiatives that will be based on strict ROFE criteria.
Mighway
Mighway is reported within the Group Support
Services and Other segment while it is in start-up
phase. The owner numbers in New Zealand are over
400 now and growing. The high season revenue is close
to target, although operating costs have exceeded
original forecasts. Both customer and
owner feedback is very positive to date. Many of
the bookings received would not have been able to
be fulfilled by the New Zealand rental business.
The USA pilot planning is well advanced focussed
on the West Coast.
Group Support
Group support costs are in line with expectations.
The acquisition transaction costs for El Monte were
$1.6M pre-tax. The Mighway EBIT losses are above
last year at circa $1.0M for the half year and
projected to be around $1.6M for the full year.
Underlying group support costs are stable, with no
expectation for any notable increase in costs over
the coming 12 months.
Associates and Joint Ventures
Action Manufacturing Net Profit Before Tax was
up $0.35M, or 39%. The business continues to deliver
to the requirements of thl from a motorhome
manufacturing perspective, while growing the
Hamilton specialist vehicle business. The first
Queensland ambulances are being completed now
and prototypes for other potential long-term repeat
business is underway. Debt is well under control and
the operating metrics continue to exceed expectations.
The Just Go business in the UK was well up on the pcp
with 143% growth, although off a small base. Vehicle
sales are performing well. The Road Bear business
model is being effectively replicated.
The Roadtrippers investment and joint venture have no
material impact on the half year results. The GeoZone
app has had a very successful summer season to date,
with active users up over 100%.
OTHER INFORMATION OF NOTE
TCEx
The customer journey and in-vehicle tablet work
continues. Revenue continues to grow from
advertising sources and commission on transactions.
User numbers are increasing strongly and customer
feedback remains positive. The roadmaps for the next
stages of development are being created with the
new Roadtrippers joint venture. The advertising
revenue from the app usage has now moved to
the joint venture.
Software Development
The project to update the underlying booking, pricing
and scheduling systems continues. The new system
will be rolled out in stages, as modules are completed.
Sustainability
There continues to be advances in sustainability
initiatives within the organisation. In the annual result
release and annual report, later in the year, we will
communicate the progress we have made and release
the results of our current carbon calculator initiatives
to set a benchmark for future monitoring.
Electric Vehicles
After a small delay, work will commence shortly on a
new electric motorhome in New Zealand. thl is focused
on establishing strong partnerships in this space with
chassis manufacturers to determine suitable options
for customers in the future.
Chairman and CEO Report
thl Interim Report 2017
5
Capital Structure and Debt
Net debt at 31 December was $103M, compared to
$90M in the pcp. The debt position increased by $79M
with the El Monte transaction in January. Total debt
facilities for the business, including the Letter of Credit
facility for Action Manufacturing, are around $250M.
The internal benchmark for the debt to EBITDA ratio
is 2.0x (current levels). The current capital expenditure
plans allow for growth in net CAPEX through flex fleet
(with some core fleet growth) and a reduction in net
debt. The El Monte business is expected to have a
net reduction in total funds employed over the
coming three years, whilst improving the average
age of the fleet.
Capital Expenditure
The forecast of gross capital expenditure for FY17
has been increased to $175M, including $20M of
El Monte new-season vehicle expenditure.
The forecast for vehicle sales for FY17 has also been
increased to $118M, recognising the increase in
Road Bear sales, flex fleet sales and the inclusion
of El Monte sales in the second half.
Dividend
A partially imputed dividend (to 50%) of 10cps has
been declared, up from 9cps for the FY16 interim
dividend, an increase of 11%.
New Zealand profits represent close to 50% of the
Company’s result and have a corresponding impact
on the imputation levels.
The dividend policy remains unchanged and the
company is committed to maintaining a sustainable
dividend flow.
The company will put in place a Dividend Reinvestment
Plan (DRP) for shareholders from the April dividend.
Under the dividend reinvestment plan eligible
shareholders can elect to reinvest the net dividend
payable in new thl shares. The price of such shares
will be the five day volume weighted average price
following the record date less a discount of 2%.
Details of the DRP will be sent to eligible shareholders
in early March and the last date for the registrar to
receive election notices or changes to election notices
is 5pm on the record date.
Chairman and CEO Report
Grant Webster
Chief Executive Officer
Rob Campbell
Chairman
thl Interim Report 2017
6
Financial statements
NOTES
6 MONTHS TO
DEC 2016
$000’s
6 MONTHS TO
DEC 2015
$000’S
12 MONTHS TO
JUN 2016
$000’s
Sales of services
96,80588,802188,757
Sales of goods
49,16044,91090,176
Total revenue
145,965133,712278,933
Cost of sales
(43,239)(39,963)(79,241)
Gross profit
102,72693,749199,692
Administration expenses
(19,032)
(16,067)(33,931)
Operating expenses
(66,114)(62,710)(127,071)
Other income/(expenses), net
1,1574327
Operating profit before financing costs
18,73715,01538,717
Finance income
44231349
Finance expenses
(2,471)(2,544)(4,567)
Net finance costs
(2,427)(2,313)(4,218)
Share of profit/(losses) from associates
8175119281
Share of profit/(losses) from joint ventures
71,2228891,689
Profit before tax
17,70713,71036,469
Income tax expense
2(6,437)(5,497)(12,093)
Profit for the period
11,2708,21324,376
Earnings per share from profit attributable to the equity holders
of the company during the period
Basic earnings per share (in cents)
9.77.221.4
Diluted earnings per share (in cents)
9.46.920.5
Consolidated income statement
For the six months ended 31 December 2016 (Unaudited)
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
thl Interim Report 2017
7
Financial statements
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
NOTES
6 MONTHS TO
DEC 2016
$000’s
6 MONTHS TO
DEC 2015
$000’S
12 MONTHS TO
JUN 2016
$000’s
Profit for the period
11,2708,21324,376
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation movement (net of tax)
13546(2,725)(5,396)
Cash flow hedge reserve movement (net of tax)
2,093(217)(2,630)
Other comprehensive income/(loss) for period net of tax
2,639(2,942)(8,026)
Total comprehensive income for period attributable to equity holders
of the company
13,9095,27116,350
Consolidated statement of comprehensive income
For the six months ended 31 December 2016 (Unaudited)
thl Interim Report 2017
8
Consolidated statement of changes in equity
For the six months ended 31 December 2016 (Unaudited)
NOTES
SHARE
CAPITAL
$000’s
RETAINED
EARNINGS
$000’s
CASH FLOW
HEDGE
RESERVE
$000’s
OTHER
RESERVES
$000’s
TOTAL
EQUITY
$000’s
Opening balance as at 1 July 2016
156,32619,946(4,223)74172,123
Comprehensive income
Net profit for the six months ended 31 December 2016
-11,270--11,270
Other comprehensive income
Cash flow hedge reserve movement (net of tax)
--2,093-2,093
Foreign currency translation reserve (net of tax)
13---546546
Total comprehensive income
-11,2702,09354613,909
Transactions with owners
Dividends on ordinary shares
3-(11,577)--(11,577)
Issue of ordinary shares
138---138
Employee share scheme reserve
---135135
Total transactions with owners
138(11,577)-135(11,304)
Closing balance as at 31 December 2016
156,46419,639(2,130)755174,728
NOTES
SHARE
CAPITAL
$000’s
RETAINED
EARNINGS
$000’s
CASH FLOW
HEDGE
RESERVE
$000’s
OTHER
RESERVES
$000’s
TOTAL
EQUITY
$000’s
Opening balance as at 1 July 2015
153,49215,001(1,593)5,623172,523
Comprehensive income
Net profit for the six months ended 31 December 2015
-8,213--8,213
Other comprehensive income
Cash flow hedge reserve movement (net of tax)
--(217)-(217)
Foreign currency translation reserve
13---(2,725)(2,725)
Total comprehensive income
-8,213(217)(2,725)5,271
Transactions with owners
Dividends on ordinary shares
3-(9,114)--(9,114)
Issue of ordinary shares
791---791
Transfer from employee share scheme reserve
110--(110)-
Employee share scheme reserve
---9898
Total transactions with owners
901(9,114)-(12)(8,225)
Closing balance as at 31 December 2015
154,39314,100(1,810)2,886169,569
Financial statements
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
thl Interim Report 2017
9
Consolidated statement of changes in equity (continued)
For the six months ended 31 December 2016 (Unaudited)
Financial statements
NOTES
SHARE
CAPITAL
$000’s
RETAINED
EARNINGS
$000’s
CASH FLOW
HEDGE
RESERVE
$000’s
OTHER
RESERVES
$000’s
TOTAL
EQUITY
$000’s
Opening balance as at 1 July 2015
153,49215,001(1,593)5,623172,523
Comprehensive income
Net profit for the year ended 30 June 2016
-24,376--24,376
Other comprehensive income
Cash flow hedge reserve movement (net of tax)
--(2,630)-(2,630)
Foreign currency translation reserve
13---(5,396)(5,396)
Total comprehensive income
-24,376(2,630)(5,396)16,350
Transactions with owners
Dividends on ordinary shares
3-(19,439)--(19,439)
Issue of ordinary shares
2,502---2,502
Transfer from employee share scheme reserve
3328-(340)-
Employee share scheme reserve
---187187
Total transactions with owners
2,834(19,431)-(153)(16,750)
Closing balance as at 30 June 2016
156,32619,946(4,223)74172,123
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
thl Interim Report 2017
10
NOTES
DEC 2016
$000’s
DEC 2015
$000’S
JUN 2016
$000’s
Assets
Non-current assets
Property, plant and equipment
4254,073246,439253,483
Intangible assets
20,22520,90821,087
Derivative financial instruments
11-157-
Advance to and investments in joint ventures
74,6772,5602,524
Investments in associates
811,5393,8463,445
Total non-current assets
290,514273,910280,539
Current assets
Cash and cash equivalents
8,1326,0013,020
Trade and other receivables
42,72130,09025,943
Inventories
19,84914,41221,752
Advance to joint venture
73702,5001,084
Taxation receivable
2,8428211,497
Total current assets
73,91453,82453,296
Total assets
364,428327,734333,835
Equity
Share capital
156,464154,393156,326
Other reserves
7552,88674
Cash flow hedge reserve
(2,130)(1,810)(4,223)
Retained earnings
19,63914,10019,946
Total equity
174,728169,569172,123
Liabilities
Non-current liabilities
Interest-bearing loans and borrowings
9110,71996,39381,650
Derivative financial instruments
112,6582,6405,194
Deferred income tax liability
14,55410,01010,437
Total non-current liabilities
127,931109,04397,281
Current liabilities
Interest bearing loans and borrowings
9411-375
Trade and other payables
25,29223,84736,259
Revenue in advance
27,81620,39118,759
Employee benefits
5,5924,8666,222
Derivative financial instruments
1130118665
Current tax liabilities
2,357-2,151
Total current liabilities
61,76949,12264,431
Total liabilities
189,700158,165161,712
Total equity and liabilities
364,428327,734333,835
Consolidated statement of financial position
As at 31 December 2016 (Unaudited)
Financial statements
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
thl Interim Report 2017
11
NOTES
6 MONTHS TO
DEC 2016
$000’s
6 MONTHS TO
DEC 2015
$000’S
12 MONTHS TO
JUN 2016
$000’s
Cash flows from operating activities
Receipts from customers
89,93481,330188,792
Proceeds from sale of goods
49,16044,91090,176
Interest received
44201349
Payments to suppliers and employees
(72,890)(65,251)(148,194)
Purchase of rental assets
(60,307)(61,866)(104,588)
Interest paid
(2,471)(2,514)(4,567)
Taxation paid
(4,327)(5,849)(9,449)
Net cash flows (used in)/from operating activities
(857)(9,039)12,519
Cash flows from investing activities
Sale of property, plant and equipment
47-7
Receipts from repayment of advance given to joint venture
71,5121,2653,517
Purchase of property, plant and equipment
4(4,094)(6,601)(10,605)
Purchase of intangibles
(1,243)(20)(1,251)
Repayment of loan receivable
-1,5531,553
Investments in associates and joint ventures
(7,575)(70)(70)
Net cash paid to acquire Geozone
6-(489)(489)
Dividends received from associates
250--
Net cash used in investing activities
(11,143)(4,362)(7,338)
Cash flows from financing activities
Proceeds from/(repayment of) borrowings
928,63921,4648,812
Dividends paid
3(11,577)(9,114)(19,439)
Proceeds from share issue
-6542,209
Net cash flows from/(used in) financing activities
17,06213,004(8,418)
Net increase/(decrease) in cash balances
5,062(397)(3,237)
Opening cash
3,0206,5266,526
Foreign currency translation adjustment
50(128)(269)
Closing cash
8,1326,0013,020
Consolidated statement of cash flows
For the six months ended 31 December 2016 (Unaudited)
Financial statements
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
thl Interim Report 2017
12
Note
About this report 13
Section A – Financial performance 14
1 Segment note 14
2 Income tax expense 15
3 Dividends 15
Section B - Assets used to generate profit 16
4 Property, plant and equipment acquired and
sold during the six month period 16
5 Capital commitment 17
Section C - Investments 18
6 Business combinations 18
7 Joint ventures 20
8 Investments in associates 21
Section D - Managing fund and risk 22
9 Borrowings 22
10 Seasonality of business 22
11 Financial risk management 23
Section E - Other 24
12 Related party transactions 24
13 Foreign currency translation reserve 25
14 Events after the reporting period 26
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements – Index
Notes to the Consolidated Financial Statements
thl Interim Report 2017
13
About this report
Basis of preparation
The primary operations of Tourism Holdings Limited (the
‘Company’ or ‘Parent’ or ‘thl’) and its subsidiaries (together
‘the Group’) are the manufacture, rental and sale of
motorhomes and other tourism related activities. The Parent
is domiciled in New Zealand. The registered office is Level 1,
83 Beach Road, Auckland 1010, New Zealand. Tourism Holdings
Limited is a company registered under the Companies Act 1993
and is an FMC reporting entity under Part 7 of the Financial
Markets Conduct Act 2013.
The interim consolidated financial statements of the Group
have been prepared:
• in accordance with Generally Accepted Accounting Practice
in New Zealand (NZ GAAP). They comply with NZ IAS 34
Interim Financial Reporting and consequently do not include
all the information required for full financial statements.
These condensed Group interim financial statements should
be read in conjunction with the annual report for the year
ended 30 June 2016;
• in accordance with the requirements of Part 7 of the
Financial Markets Conduct Act 2013 and the NZX Listing
Rules;
• under the historical cost convention, as modified by the
revaluation of certain assets and liabilities as identified in
specific accounting policies; and
• in New Zealand dollars with values rounded to thousands
($000’s) unless otherwise stated.
For the purpose of clause 30 of the Schedule 4 of the Financial
Markets Conduct Act (FMCA), Tourism Holdings Limited
informs its shareholders that with effect from 1 December
2016, the requirements of the FMCA have applied to Tourism
Holdings Limited. The only exception to this is that Part 7
of the FMCA (Financial Reporting) has applied to Tourism
Holdings Limited since the financial year ending 30 June
2015 (and future years). Therefore Tourism Holdings Limited
financial statements for this period have been prepared in
accordance with the requirements under Part 7 of the FMCA.
The company’s address is 83 Beach Road, Auckland.
These condensed interim financial statements were
approved for issue on 20 February 2017.
These condensed interim financial statements have not
been audited.
Throughout most months during the financial year, the Group
has net current liabilities. This arises mainly from the revenue
in advance liability that reflects the collection of rental income
from customers prior to the month of travel. This liability
is recognised as revenue in future months, and does not
represent a future outward cashflow.
Critical accounting estimates and judgement
The preparation of interim financial statements requires
management to make judgements, estimates and
assumptions that affect the application of accounting policies
and the reported amounts of assets and liabilities, income and
expense. Actual results may differ from these estimates.
The estimates used in the preparation of these interim
financial statements are consistent with those used in the
30 June 2016 annual financial statements.
Accounting policies
The accounting policies used in the preparation of these interim
financial statements are consistent with those used in the
30 June 2016 annual financial statements.
Issued standards and amendments effective
from 1 July 2016
There are no new or amended standards which have been
adopted in the six months ended 31 December 2016 that
have a material impact on the Group.
Notes to the Consolidated Financial Statements
thl Interim Report 2017
14
Notes to the Consolidated Financial Statements (continued)
Section A – Financial performance
In this section
This section explains the financial performance of thl, providing additional information about individual items in the income
statement, including segmental information, certain expenses and dividend distribution information.
1. Segment note
The operating segments of thl are made up of the following business operations:
• New Zealand Rentals – Rental of Maui, Britz and Mighty motorhomes, and the sale of motorhomes sold under the
RV Super Centre retail brand
• Tourism Group – Kiwi Experience and the Waitomo Caves Group experiences
• Australia Rentals – Rental of Maui, Britz and Mighty motorhomes and 4WD vehicles, and the sale of motorhomes sold under
the RV Sales Centre retail brand
• United States Rentals – Rental and sale of Road Bear and Britz RVs
• Other - includes Group Support Services, Mighway, and previously Geozone (refer to note 6)
NEW ZEALAND
SIX MONTHS TO DECEMBER 2016
RENTALS
$000’s
TOURISM
GROUP
$000’s
AUSTRALIA
RENTALS
$000’s
UNITED STATES
RENTALS
$000’s
OTHER
$000’s
TOTAL
$000’s
Sales of services
30,80117,65030,30817,79425296,805
Sales of goods
18,565-5,86424,731-49,160
Revenue from external customers
49,36617,65036,17242,525252145,965
Depreciation
(7,034)(753)(6,089)(2,306)(88)(16,270)
Amortisation
(102)(322)(26)-(324)(774)
Other costs
(38,534)(12,271)(24,442)(30,653)(4,284)(110,184)
Operating profit/(loss) before interest and tax
3,6964,3045,6159,566(4,444)18,737
Interest income
--4-4044
Interest expense
(28)-(280)(139)(2,024)(2,471)
Share of profit from joint venture and associates
----1,3971,397
Operating profit/(loss) before tax
3,6684,3045,3399,427(5,031)17,707
Taxation
(1,027)(1,305)(1,602)(3,865)1,362(6,437)
Operating profit/(loss) – after interest and tax
2,6412,9993,7375,562(3,669)11,270
Capital expenditure
28,323
70718,13494027948,383
Total non-current assets
147,18527,74671,00626,06518,512290,514
Total assets
182,41130,97987,06341,77622,199364,428
Net funds employed
145,03125,83360,67629,35116,835277,726
thl Interim Report 2017
15
Notes to the Consolidated Financial Statements (continued)
1. Segment note (continued)
NEW ZEALAND
SIX MONTHS TO DECEMBER 2015
RENTALS
$000’s
TOURISM
GROUP
$000’s
AUSTRALIA
RENTALS
$000’s
UNITED STATES
RENTALS
$000’s
OTHER
$000’s
TOTAL
$000’s
Sales of services
26,49915,05630,29216,8995688,802
Sales of goods
16,255-5,93222,723-44,910
Revenue from external customers
42,75415,05636,22439,62256133,712
Depreciation
(6,606)(627)(6,624)(2,149)(61)(16,067)
Amortisation
(87)(317)(19)-(392)(815)
Other costs
(36,081)(10,768)(24,901)(27,636)(2,429)(101,815)
Operating profit/(loss) before interest and tax
(20)3,3444,6809,837(2,826)15,015
Interest income
30-5-196231
Interest expense
--(324)(210)(2,010)(2,544)
Share of profit from joint venture and associates
----1,0081,008
Operating profit/(loss) before tax
103,3444,3619,627(3,632)13,710
Taxation
(3)(1,025)(1,309)(3,947)787(5,497)
Operating profit/(loss) – after interest and tax
72,3193,0525,680(2,845)8,213
Capital expenditure
26,6533,55211,9319,60039552,131
Total non-current assets
138,60528,24365,09432,6439,325273,910
Total assets
159,71128,94276,93644,27517,870327,734
Net funds employed
128,98326,04354,95038,01411,971259,961
The Group incurred transaction costs of $1.6M in relation to the acquisition of El Monte Rents Inc (refer to note 14) and its
investment in Roadtrippers Inc (refer to note 6). These costs are included in administration expenses in the Group’s statement
of comprehensive income for the period ended 31 December 2016.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-
maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments,
has been identified as the executive management team together with the Board of Directors, who together make strategic
decisions.
Interest income and expenditure are not included in the result for each operating segment that is reviewed by the CODM.
Inter-segment transactions are entered into under normal commercial terms and conditions that would also be available to
unrelated third parties. All revenue is reported to the executive team on a basis consistent with that used in the income statement.
Segment assets consist primarily of property, plant and equipment, intangible assets, inventories, receivables and operating cash.
They exclude investments and derivatives designated as hedges of borrowings as they are not allocated to segments. Net funds
employed are total assets less segment non interest bearing liabilities and cash on hand.
2. Income tax expense
Income tax expense is recognised based on management’s estimate of the weighted average annual income tax rate expected
for the full financial year.
3. Dividends
During the six months ended 31 December 2016 the Group paid dividends of $11,577k (10 cents per share). The final and interim
dividends paid in the year ended 30 June 2016 were $9,114k (8 cents per share) and $10,325k (9 cents per share) respectively.
thl Interim Report 2017
16
Notes to the Consolidated Financial Statements (continued)
In this section
This section describes the assets thl uses in the business to generate profit, including:
• Property, plant and equipment
The most significant component is the motorhome fleet. Premises in general are leased, however significant owned properties
are the Waitomo Caves Visitor Centre, the Waitomo Caves Homestead and the Orlando branch in the United States.
4. Property, plant and equipment acquired and sold during the six month period
MOTORHOMES
$000’s
OTHER PLANT
& EQUIPMENT
$000’s
CAPITAL WORK
IN PROGRESS
$000’s
TOTAL
$000’s
Period ended 31 December 2016
At 1 July 2016
218,22824,32822,646265,202
Additions and transfers from work in progress
61,0073,245(15,869)48,383
Disposals
(35,734)(119)-(35,853)
Exchange differences
(1,310)(8)-(1,318)
Depreciation charge
(14,333)(1,937)-(16,270)
Closing net book amount
227,85825,5096,777260,144
As at 31 December 2016
Cost
300,23148,0276,777355,035
Accumulated depreciation
(72,373)(22,518)-(94,891)
Net book amount
227,85825,5096,777260,144
Reclassification of motorhomes to inventory
at balance date
Cost
12,166--12,166
Accumulated depreciation
(6,095)--(6,095)
Net book amount
6,071--6,071
Closing net book amount post reclassification
221,78725,5096,777254,073
Period ended 31 December 2015
At 1 July 2015
217,15617,88718,786253,829
Additions and transfers from work in progress
53,5775,915(7,361)52,131
Disposals
(33,876)(66)-(33,942)
Exchange differences
(2,882)(152)-(3,034)
Depreciation charge
(14,676)(1,391)-(16,067)
Closing net book amount
219,29922,19311,425252,917
As at 31 December 2015
Cost
297,04543,67711,425352,147
Accumulated depreciation
(77,746)(21,484)-(99,230)
Net book amount
219,29922,19311,425252,917
Reclassification of motorhomes to inventory
at balance date
Cost
12,365--12,365
Accumulated depreciation
(5,887)--(5,887)
Net book amount
6,478--6,478
Closing net book amount post reclassification
212,82122,19311,425246,439
Section B – Assets used to generate profit
thl Interim Report 2017
17
Notes to the Consolidated Financial Statements (continued)
5. Capital commitment
Capital commitments relates to the build of the Group’s fleet for the following year.
Capital expenditure contracted for at balance date but not yet incurred is as follows:
DEC 2016
$000’s
DEC 2015
$000’s
JUN 2016
$000’s
Property, plant and equipment
98,15468,83244,121
thl Interim Report 2017
18
Notes to the Consolidated Financial Statements (continued)
Section C – Investments
In this section
thl’s investments comprise subsidiaries, associates and joint ventures. This section explains the investments held by thl, providing
additional information, such as analysis of thl’s associates and joint ventures.
thl’s investments include a 50% interest in Action Manufacturing, a business that manufactures motorhomes for the Group’s
New Zealand and Australian business segments and other speciality vehicles for external customers; and a 50% joint venture
investment in Roadtrippers Australasia Limited Partnership (Roadtrippers Australasia). Other investments include a 49% interest
in Just Go, a motorhome rental operation in the United Kingdom; and a 22.5% interest in Roadtrippers Inc (Roadtrippers USA).
6. Business combinations
6.1 Acquisition of Geozone Limited
Following an initial investment in the 2015 financial year, the Group acquired the remaining 53.5% share capital of Geozone
Limited (increasing the Group’s shareholding to 100%) in October 2015 for consideration of $532k. The Group obtained control on
this date. Total consideration for the business combination transaction was made up of the $532k consideration paid directly for
the 53.5% plus the fair value of the previously held interest.
The Group recognised a gain of $104k as a result of measuring at fair value its 46.5% equity interest in Geozone Limited held
before the business combination. The gain is included in other income in the Group’s statement of comprehensive income for the
period ended 30 June 2016.
From 1 October 2015 the operating results of Geozone Limited, have been included in the profit and loss component of the
statement of comprehensive income.
The consideration for the acquisition of Geozone Limited was derived from the implied fair value of the previously held interest
(46.5%) on the date control was obtained plus the actual cost of the interest purchased in the period (53.5%). The implied fair
value of the previously held interest was determined with reference to the price paid for the additional interest obtained.
The deemed consideration of $994k resulted in a goodwill balance of $434k.
Net cash paid to acquire the business was $489k.
As part of the acquisition of Geozone Limited, the Group has an amount of consideration which is conditional on the vendors
remaining employed by the Group and meeting certain performance criteria. Following the sale of the Geozone business
(as described below), the Group has retained this obligation and is recognising it as an employee cost over the earn out period
with a liability recognised within employee benefits.
6.2 Sale of the Geozone business
In the 2017 financial year, the Group acquired 22.5% of the issued equity of Roadtrippers Inc (Roadtrippers USA) and a 50% joint
venture investment in Roadtrippers Australasia Limited Partnership (Roadtrippers Australasia). Roadtrippers is an online trip
planning application. As part of the consideration for these investments, the Group sold the Geozone business.
The Group sold the Geozone intellectual property (software and data content) for $USD1M, and paid cash of $USD5M as
consideration for an investment of 22.5% of the issued equity of Roadtrippers USA.
Furthermore, the Group sold the remaining Geozone assets and liabilities (the operating business including brand, trademarks and
revenue contracts) and paid cash as consideration for an investment in Roadtrippers Australasia. The other joint venture partner
is Roadtrippers USA. Roadtrippers USA sold a perpetual licence to the joint venture for the right to use the Roadtrippers product
in the Australian and New Zealand markets as consideration for its investment in the joint venture.
The above transactions are considered part of a single transaction resulting in the disposal of Geozone and acquisition of equity
interest in Roadtrippers USA and Roadtrippers Australasia.
At this time the Group ceased to have control of the Geozone business. The sale of the Geozone business was accounted for
by the Group as a discontinued operation in accordance with NZ IFRS 5 Non-current Assets Held for Sale and Discontinued
Operations (‘NZ IFRS 5).
thl Interim Report 2017
19
Notes to the Consolidated Financial Statements (continued)
6. Business combinations (continued)
The table below represents the carrying value of the assets and liabilities sold at 1 December 2016:
$000’s
Assets
Cash consideration
7,575
Trade receivables
120
Intangible assets
1,485
9,180
Liabilities
Trade payables and accruals
(196)
Revenue received in advance
(185)
(381)
Total identifiable net assets at fair value
8,799
The table below represents the consideration received for the discontinued operations:
$000’s
Fair value of equity interest in Roadtrippers USA
8,350
Fair value of equity interest in Roadtrippers Australasia
1,729
Total
10,079
The Group recognised a gain of $1,280k as a result of selling the business combination. The gain is included in other income in the
Group’s statement of comprehensive income for the period ended 31 December 2016.
The loss before tax attributable to discontinued operations for the period ended 31 December 2016 was $231k (period ended
31 December 2015: $67k, year ended 30 June 2016: $248k). As these amounts are not considered material to the Group profit
before tax, the discontinued operations have not been separately shown on the Consolidated income statement, Consolidated
statement of comprehensive income, Consolidated statement of changes in equity, Consolidated statement of financial position,
or the Consolidated statement of cash flows.
Roadtrippers USA and Roadtrippers Australasia are currently in a development phase and are therefore expected to make losses
in the short term. This is not considered an indication of impairment of the investment as it is part of the growth plan for the
business model.
thl Interim Report 2017
20
Notes to the Consolidated Financial Statements (continued)
7. Joint ventures
Action Manufacturing LP (AMLP)
thl has a 50% joint venture partner in AMLP, a vehicle manufacturer based in New Zealand. The other 50% partner is Alpine
Bird Manufacturing Limited, which is owned by Grant Brady (refer to note 12). Due to the nature of the contractual rights and
obligations, AMLP is classified as a joint venture for accounting purposes and accounted for using the equity method.
AMLP manufactures motorhomes for the Group’s New Zealand and Australian business segments, and other speciality vehicles
for external customers.
The Group’s recognised interest in AMLP
The following table sets out the Group’s interest in AMLP:
DEC 2016
$000’s
DEC 2015
$000’s
JUN 2016
$000’s
Investment in AMLP
250250250
Profit/(losses) recognised against the investment balance
2,5865511,351
Net investment recognised
2,8368011,601
Advance opening balance
2,0075,5245,524
Net cash advances/(repayment) during the period
(1,512)(1,265)(3,517)
Advance closing balance
4954,2592,007
Opening losses/impairment recognised against the advance
-(88)(88)
Share of profit for the period recognised as a reduction of the impairment
-8888
Total losses/impairment recognised against the advance
---
Net interest in AMLP
3,3315,0603,608
DEC 2016
$000’s
DEC 2015
$000’s
JUN 2016
$000’s
Non-current
2,9612,5602,524
Current
3702,5001,084
3,3315,0603,608
The advances from the Group are payable on demand but the directors do not expect full repayment in the next 12 months,
therefore only $370k is presented as a current asset as at 31 December 2016 (2015: $2.5m). Interest is payable at a rate of 6.85%
per annum.
The share of profit recognised represents an increase in the net investment in AMLP. In previous years the share of profit
recognised represented a reduction in impairment of the investment and the advances. The impairments that had been
recognised against the advance represented the share of prior year accumulated losses of AMLP.
Roadtrippers Australasia
In December 2016, the Group acquired a 50% joint venture investment in Roadtrippers Australasia (refer to note 6). The other
50% partner is Roadtrippers USA. Due to the nature of the contractual rights and obligations, Roadtrippers Australasia is
classified as a joint venture for accounting purposes and accounted for using the equity method.
thl Interim Report 2017
21
Notes to the Consolidated Financial Statements (continued)
7. Joint ventures (continued)
The Group’s recognised interest in Roadtrippers Australasia
The following table sets out the Group’s interest in Roadtrippers Australasia:
DEC 2016
$000’s
DEC 2015
$000’s
JUN 2016
$000’s
Investment in Roadtrippers Australasia
1,729--
Profit/(losses) recognised against the investment balance
(13)--
Net interest in Roadtrippers Australasia
1,716--
DEC 2016
$000’s
DEC 2015
$000’s
JUN 2016
$000’s
Total advance to and investments in joint ventures
Non-current
4,6772,5602,524
Current
3702,5001,084
5,0475,0603,608
8. Investments in associates
In December 2016, the Group acquired a shareholding of 22.5% of Roadtrippers USA (refer to note 6). The investment has been
accounted for as an investment in associate, and the Group’s share of associates losses have been recognised with the Group’s
investment. Part of the equity of Roadtrippers USA includes convertible share options. If all of the share options were to be fully
exercised, the Group’s investment would be diluted to 18.2%. In this situation the Group’s voting rights would not be diluted,
and the Group would retain a seat on the Board of Directors. Consideration has been given to these factors with respect to
determining that the investment is to be treated as an investment in associate.
In March 2015, the Group acquired a shareholding of less than 50% in Skewbald Limited (trading as Just Go) for GBP £1,744k.
Just Go is a motorhome rental business operating in the United Kingdom. The investment has been accounted for as an
investment in associate and the Group’s share of associates profits have been recognised with the Group’s investment.
The carrying amounts recognised in the balance sheet are as follows:
DEC 2016
$000’s
DEC 2015
$000’s
JUN 2016
$000’s
Just Go
3,3283,8463,445
Roadtrippers USA (note 6)
8,211--
Total
11,5393,8463,445
The share of profits/(losses) recognised in the income statement are as follows:
6 MONTHS TO
DEC 2016
$000’s
6 MONTHS TO
DEC 2015
$000’S
12 MONTHS TO
JUN 2016
$000’S
Just Go
339144306
Geozone
-(25)(25)
Roadtrippers USA (note 6)
(164)--
Total
175119281
thl Interim Report 2017
22
Notes to the Consolidated Financial Statements (continued)
Section D – Managing Funding and Risk
In this section
This section summarises thl’s funding sources and financial risks.
9. Borrowings
DEC 2016
$000’s
DEC 2015
$000’s
JUN 2016
$000’s
Non-current
110,71996,39381,650
Current
411-375
111,13096,39382,025
DEC 2016
$000’s
DEC 2015
$000’s
JUN 2016
$000’s
The Group has the following undrawn borrowing facilities:
Expiring beyond one year
39,44823,88931,425
39,44823,88931,425
The Group has sufficient working capital and undrawn financing facilities to service its operating activities and on-going
investment in rental motorhomes. The Group has met all banking covenant requirements in the current period.
During the six months ended 31 December 2016, the Group extended its Interchangeable Working Capital Facility limit by
$20M to facilitate the working capital requirements for the southern hemisphere summer season. Furthermore, the Group
amended its debt facility in December 2016 in conjunction with the acquisition of El Monte Rents Inc (refer to note 14).
As part of its risk mitigation strategy, the Group has funded its investments in Roadtrippers Inc (refer to note 6) and El Monte
Rents Inc (refer to note 14) with USD denominated debt. The debt acts as a natural hedge of the investment and hence has
been designated as a hedge of net investments in foreign operations.
10. Seasonality of business
The tourism industry is subject to seasonal fluctuations with peak demand for tourism attractions and transportation over the
summer months. The operating revenue and profits of the Group’s segments are disclosed in note 1. New Zealand and Australia’s
profits are typically generated over the southern hemisphere summer months and the United States of America’s profits are
typically generated over the northern hemisphere summer months. Due to the seasonal nature of the businesses the risk profile
at 31 December 2016 is not representative of all risks faced during the year.
thl Interim Report 2017
23
Notes to the Consolidated Financial Statements (continued)
11. Financial risk management
The carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their fair values:
• Derivative financial instruments are carried at fair value as discussed below.
• Receivables and payables are short term in nature and therefore approximate fair value.
• Interest bearing liabilities re-price at least every 90 days and therefore approximate fair value.
Financial instruments of the Group that are measured in the statement of financial position at fair value are classified by level
under the following fair value measurement hierarchy:
Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(that is, as prices) or indirectly (that is, derived from prices).
Level 3 Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
There were no changes to these valuation techniques during the period. There were no transfers of derivative financial
instruments between levels of the fair value hierarchy during the period.
Recurring fair value measurements
The following financial instruments are subject to recurring fair value measurements:
DEC 2016DEC 2015JUN 2016
ASSETS
$000’s
LIABILITIES
$000’s
ASSETS
$000’s
LIABILITIES
$000’s
ASSETS
$000’s
LIABILITIES
$000’s
Derivative financial instruments (Level 2)
-2,9591572,658-5,859
thl Interim Report 2017
24
Notes to the Consolidated Financial Statements (continued)
Section E – Other
In this section
This section includes the remaining information relating to thl’s financial statements which is required to comply with financial
reporting standards.
12. Related party transactions
Key management compensation
6 MONTHS TO
DEC 2016
$000’s
6 MONTHS TO
DEC 2015
$000’S
12 MONTHS TO
JUN 2016
$000’S
Salaries and other short term employee benefits
2,9132,5294,476
Share based payments benefits
13598187
Executive management do not receive any directors’ fees as directors of subsidiary companies.
Directors’ fees (share issue in lieu of cash)
At the 2013 annual meeting of shareholders, shareholder approval was obtained for thl to issue shares in whole or in part payment
of directors’ remuneration. From 1 October 2013, Rob Campbell elected to receive 100% of his director fee in shares and Graeme
Wong has elected to receive 33% of his director fee in shares. From 1 February 2014 Christina Domecq has elected to receive 100%
of her director fee in shares. From 1 February 2015 Gráinne Troute elected to receive 100% of her director fee in shares. Shares
issued in lieu of directors fees are as follows:
DEC 2016DEC 2015JUN 2016
No. of shares issued in lieu of cash (000's)
4263114
Value of shares issued in lieu of cash ($000's)
138129260
Accrued value of shares yet to be issued in lieu of cash ($000's)
696369
Christina Domecq (Non-executive Director)
Foundry Innovations Limited (Foundry), Ora HQ Limited (Ora), Software Innovation NZ Limited and The Fulcrum Limited
(Fulcrum) are companies in which thl director Christina Domecq is a shareholder. Foundry, Ora, Software Innovation NZ Limited
and Fulcrum have provided consulting and software development services to thl. The chair of the audit and risk committee has
approved the provision of these services.
6 MONTHS TO
DEC 2016
$000’s
6 MONTHS TO
DEC 2015
$000’S
12 MONTHS TO
JUN 2016
$000’S
Amounts paid to Ora and Foundry
50273453
Amounts paid to Software Innovation NZ Limited
335252
Amounts paid to Fulcrum
38-20
Kay Howe (Non–executive Director)
Supreme Motorhome Manufacturing Limited (Supreme) is owned by entities associated with thl director Kay Howe. Supreme has
provided caravans, parts, and service work to thl.
6 MONTHS TO
DEC 2016
$000’s
6 MONTHS TO
DEC 2015
$000’S
12 MONTHS TO
JUN 2016
$000’S
Payments to Supreme including purchase of motorhomes and caravans
58751
thl Interim Report 2017
25
Notes to the Consolidated Financial Statements (continued)
12. Related party transactions (continued)
Grant Brady (shareholder and director of Alpine Bird (New Zealand) Limited)
Grant Brady, a member of the thl executive team, is a shareholder and director of Bush Road Enterprises Limited. thl subleases
a property in Bush Road which is owned by Bush Road Enterprises Limited. The lease on this property was renewed for a further
term of six years in April 2015. The cost of the sublease and operating expenses are set out in the table below:
6 MONTHS TO
DEC 2016
$000’s
6 MONTHS TO
DEC 2015
$000’S
12 MONTHS TO
JUN 2016
$000’S
Cost of sub-licenses and operating expenses
259245498
Action Manufacturing LP
Grant Brady is a shareholder in Alpine Bird Manufacturing Limited which owns 50% of Action Manufacturing Limited Partnership
(“AMLP”) that was set up in March 2012. thl owns the other 50%. AMLP manufactures the motorhomes and campervans used
by Rentals New Zealand, manufactures motorhomes and parts for Rentals Australia, and manufactures specialty vehicles
for external customers. Pricing is based on the cost of manufacture plus an agreed margin set out in the Limited Partnership
Agreement. AMLP also subleases part of the Bush Road property described above. The transactions between AMLP and thl are
set out in the table below:
6 MONTHS TO
DEC 2016
$000’s
6 MONTHS TO
DEC 2015
$000’S
12 MONTHS TO
JUN 2016
$000’S
Purchase of motorhomes by the Group from joint venture
30,04525,13446,208
Interest charged to joint venture
40195329
Net interest in Action Manufacturing LP (note 7)
3,3315,0603,608
The amount outstanding is payable on demand at an interest rate of 6.85% per annum.
At 30 June 2016, $17,237k (June 2015:$13,590k) was outstanding under a Documentary Letter of Credit in favour of AMLP.
This amount is included in the purchase of motorhomes shown above, and the outstanding amount is included in ‘trade and
other payables’. At 31 December 2016 and 31 December 2015 the amounts outstanding were nil.
Just Go
During the six months ended 31 December 2016 the Group purchased motorhomes from Just Go with a value of $5,796k
(six month ended December 2015: $4,087k; year ended 30 June 2016: $4,151k).
13. Foreign currency translation reserve
Exchange differences arising on the translation of foreign operations are taken to the foreign currency translation reserve.
When any net investment is disposed of, the related component of the reserve is recognised in profit and loss as part of the
gain or loss on disposal.
The closing exchange rates used to translate the balance sheet are as follows:
DEC 2016
$000’s
DEC 2015
$000’s
JUN 2016
$000’s
NZD/AUD
0.98680.95630.9817
NZD/USD
0.71610.70020.7340
NZD/GBP
0.58180.47170.5506
thl Interim Report 2017
26
Notes to the Consolidated Financial Statements (continued)
14. Events after the reporting period
14.1 Acquisition of El Monte Rents Inc
On 20 December 2016 the Group signed a share purchase agreement relating to El Monte Rents Inc (El Monte RV). Under the terms
of the agreement, on 1 January 2017, the Group acquired 100% of the share capital of El Monte RV. The Group obtained control
on this date. El Monte RV is a motorhome rental business in the United States. The initial accounting for the business combination
was not complete at the time these financial statements were approved for issue and amounts paid are subject to final settlement
adjustments. Accordingly, the amounts shown below are the provisional amounts relating to the business combination.
Total consideration for the business combination transaction was made up of $78,511k cash and $12,522k issued capital of the Group.
$000’s
Purchase consideration at January 2017
Cash
78,511
Issued capital of Tourism Holdings Limited
12,522
Total consideration
91,033
As part of the consideration, the Group issued 3,384,266 ordinary shares. The share price on the date of acquisition was $3.70 per
share. The total consideration of $91,033k resulted in a goodwill balance of $23,718k. The table below represents the fair value of the
assets and liabilities acquired at 1 January 2017:
$000’s
Cash and cash equivalents
692
Trade and other receivables
3,087
Inventories
5,417
Property, plant and equipment
62,583
Total assets
71,779
Trade and other payables
(3,322)
Revenue received in advance
(1,142)
Total liabilities
(4,464)
Total identifiable net assets at fair value
67,315
Goodwill arising on acquisition
23,718
Purchased consideration transferred
91,033
From 1 January 2017 the operating results of El Monte RV will be included in the profit and loss component of the statement
of comprehensive income. If the acquisition of El Monte RV had occurred at 1 July 2016, Group consolidated pro-forma revenue
and operating profit before financing costs for the period ending 31 December 2016 would have been $185,983k and $26,715k
respectively. Due to different approaches to fleet and capital management, pro-forma finance costs and income tax expense
are not able to be accurately estimated and are therefore not disclosed.
Goodwill arising on acquisition primarily represents market share acquired and synergies that are expected to be generated.
Net cash paid to acquire the business was $77,819k.
In conjunction with the acquisition, the Group amended its debt facility and added an additional term facility of $USD70 million.
The current expiry dates of the facilities are:
Interchangeable Working Capital Facility: 24 August 2018
Term Facilities: 28 February 2019 & 28 February 2021
14.2 Interim dividend
A dividend was declared after balance date at 10 cents per share payable on 13 April 2017.
thl Interim Report 2017
27
Directors
Rob Campbell
Debbie Birch
Christina Domecq
Kay Howe
Gráinne Troute
Graeme Wong
Executives
Grant Webster – Chief Executive Officer
Mark Davis – Chief Financial Officer
Jo Allison – Chief Operating Officer
Keith Chilek – Chief Technology Officer
David Simmons – Chief Operating Officer New Business Development
Registered office
Level 1
83 Beach Road
Auckland 1010
New Zealand
Share register
Tourism Holdings Limited shares are listed on the New Zealand Stock Exchange (NZX)
Share registrar
Link Market Services Limited
PO Box 91976
Auckland
Tel: +64 9 375 5998
Email: enquiries@linkmarketservices.co.nz
Auditors
PricewaterhouseCoopers
Auckland, New Zealand
Solicitors
Minter Ellison Rudd Watts
Auckland, New Zealand
Bankers
Westpac New Zealand Limited
Westpac Banking Corporation
ANZ Bank New Zealand Limited
Corporate information
Corporate information
Campervan. 4WD. Car Rentals
thl Interim Report Financial Year 2017
---
Bright Horizons
Delivering on the
Plan
FY17: Interim Results
Presentation
21 February 2017
DISCLAIMER
The information in this presentation dated 21 February 2017 may contain forward-looking statements and projections. These
reflect thl’scurrent expectations, based on what it thinks are reasonable assumptions. However, for any number of reasons
the future could be different and the assumptions on which the forward-looking statements and projections are based could be
wrong. thlgives no warranty or representation as to its future financial performance or any future matter. Except as required
by law or NZX listing rules, thlis not obliged to update this presentation after its release, even if things change materially.
This presentation may contain a number of non-GAAP financial measures. Because they are not defined by GAAP or IFRS,
thl’scalculation of these measures may differ from similarly titled measures presented by other companies and they should
not be considered in isolation from, or construed as an alternative to, other financial measures determined in accordance with
GAAP.
This presentation does not take into account any specific investors objectives, and does not constitute financial or investment
advice. Investors are encouraged to make an independent assessment of thl.
The information contained in this presentation should be read in conjunction with thl’slatest financial statements, which are
available at: www.thlonline.com
2
110
111
134
146
FY14FY15FY16FY17
H1 REVENUE
H1 FY17 FINANCIAL HIGHLIGHTS
REVENUE
$146M
UP
9%
EARNINGS BEFORE
INTEREST AND TAX
$18.7M
UP
25%
INTERIM DIVIDEND
10cps(50% imputed)
UP FROM
9cps(50% imputed)
All financials in NZ Dollars unless stated otherwise (throughout presentation)
All comparisons are against prior corresponding period
NET PROFIT
AFTER TAX
$11.3M
UP
38%
2.5
5.6
8.2
11.3
FY14FY15FY16FY17
H1 NPAT
+9%
+20%
+1%
+38%
+45%
+129%
3
FINANCIAL HIGHLIGHTS
•NPAT growth of 38%.
•Rentals NZ achieved $3.7M EBIT, an
increase of $3.7M on the pcp.
•Tourism EBIT growth of $1.0M or 30% on
the pcp.
•Rentals Australia 5% rental income
growth, 28% EBIT growth on a constant
currency basis.
•Growth in the underlying US Rentals
EBIT of 7%. In NZD terms EBIT is down
2% due to the stronger exchange rate.
•Group and Other costs were up $1.3M,
due to the ongoing investment in the
Mighway and GeoZonenew initiatives.
NZD $MH1 FY17H1 FY16VARVAR%
Operating revenue146.0133.712.39%
Earnings before
interestand tax*
18.715.03.725%
Operatingprofit
before tax
17.713.74.029%
Profit after tax11.38.23.138%
* EBIT excludes joint venture and associates earnings
4
H1 FY17 GROWTH INITIATIVE HIGHLIGHTS
El Monte
Purchase of the second
largest RV rental business
in the USA completed on 6
January.
Synergies in fleet and
operations to be realised
over next three years.
Roadtrippers
Purchased 22.5% of
Roadtrippers USA, the
leading US road trip travel
app provider.
GeoZonesold into
Roadtrippers Australasian
JV.
Mighway
Operating successfully
across NZ summer peak.
Commitment to launch in
North America, with West
Coast USA focus from Q1
2017 calendar year.
5
BALANCE SHEET
NET DEBT DEC 2016
$103M
LAST YEAR
$90M
JUNE 2017 FORECAST
$185M
•Net debt at 31 December 2016 was
$103M, up $13M on 31 December
2015.
•Increase in debt on prior year is due
to the lift in flex fleet, to be turned
over in less than 18 months. As at 31
Dec, Net Book Value of flex fleet in
NZ and Australia to be sold within six
months is ~$26M, up $16M on FY16.
•The purchase of El Monte lifts
forecast debt levels to ~$200M.
•Debt:EBITDAforecast at 2.0x
remains below market comparators
and within our target Moody’s Baa
guidelines.
DEBT:EBITDA
1.4X
LAST YEAR
1.3X
JUNE 2017 FORECAST
2.0X
6
DIVIDEND
INTERIM DIVIDEND
10 cents
Per Share –50% Imputed
UP
11%
•Interim dividend of 10 cents per share
imputed to 50%.
•Sustaining dividends over the longer
term remains a key focus for the
business.
•Key dates:
•Ex-date31 March 2017
•Record date3 April 2017
•Payment date13 April 2017
•A Dividend Reinvestment Plan, to
provide a cost effective means for
shareholders to reinvest dividends,
will be introduced for the interim
dividend payment.
•The issue price will be based on the 5
day volume weighted share price
following the record date, less a 2%
discount.
•Details of the plan will be sent to
eligible shareholders in early March.
*Dividends imputed to 50% from FY14 Final Dividend
INTERIM DIVIDEND PERSHARE*
+40%
+29%
+11%
7
DIVISIONAL
REVIEW
8
DIVISIONAL EBIT
9
; $MDEC 16DEC 15VARVAR %
thl Rentals
New Zealand3.7 0.0 3.7 N/a
Australia5.6 4.7 0.9 19%
USA9.6 9.8 (0.2)(2%)
Total Rentals18.9 14.5 4.4 30%
Tourism Group4.3 3.3 1.0 30%
Total operating divisions23.2 17.8 5.4 30%
Group Support Services & Other (4.1)(2.8)(1.3)(46%)
EBIT before non-recurring Items19.1 15.0 4.1 27%
Non-recurring Items
Profit on Geozone Sale1.3 1.3
Transaction Costs - El Monte Acquisition(1.6)(1.6)
EBIT18.7 15.0 3.7 25%
Split
Australia5.6 4.7 0.9 19%
USA9.6 9.8 (0.2)(2%)
NZ 3.5 0.5 3.0 600%
Total EBIT18.7 15.0 3.7 25%
6 M onths to De ce mbe r
RENTALS NZ
Strong H1 Performance
•Rentals NZ has achieved a strong
result, achieving a $3.7M profit, in
what has historically been a loss-
making half.
•Rental income growth of 16% was
achieved through increased flex fleet,
improved utilisation and yield growth.
•Costs well controlled, resulting in
improved EBIT margin.
•The RV Super Centres (retail and
service) in Auckland and Christchurch
have continued to grow the
contribution from non-fleet sales and
service. The growth in contribution
(revenue less cost of sales) was 78%.
•Demand for motorhome sales remains
strong. The lower fleet sales
compared with last year reflects the
lower volume of ex-fleet vehicles
available for sale.
•Flex fleet for summer has lifted peak
fleet by approximately 7% over last
year.
HalfYear
NZD $MH1 FY17H1 FY16VAR%
Rentalincome30.826.54.316%
Sale of goods18.616.3 2.314%
Costs(45.7)(42.8)(2.9)(7%)
EBIT3.70.03.7n/a
Vehicle Fleet Units:H1 FY17H1 FY16VAR%
Opening Fleet July1,7401,787(47)
Fleet Sales(206)(219)13(6%)
Fleet Purchases64047017036%
Closing Fleet Dec2,1742,0381367%
10
Vehicle Fleet Units:H1 FY17H1 FY16VAR%
OpeningFleet July1,3231,297262%
Fleet Sales -External(150)(159)96%
Fleet Sales -Buybacks(105)(105)
Fleet Purchases348172176102%
Closing Fleet Dec1,4161,3101068%
Half Year
AUD $MH1 FY17H1 FY16VAR%
Rentalincome29.628.11.55%
Sale of goods5.75.50.24%
Costs(29.8)(29.3)(0.5)(2%)
EBIT5.54.31.228%
RENTALS AU
11
Continued Progress
•The Rentals Australia business has
made further progress in H1,
growing EBIT by 28% in AUD terms.
•The 4WD buy-back arrangement
worked well, lifting returns on the
pcp.
•Rental income growth of 5% in AUD
arose from some fleet growth and
yield growth.
•Vehicle sales have met volume
expectations, with improved
average margin. The volume of
retail fleet sales through the
Melbourne RV Sales Centre
(launched FY16) is growing.
•Telematics units have contributed to
good cost control.
•The increase in fleet purchases
reflects summer flex fleet, which
have lifted peak summer fleet by
8%. Core fleet purchases were flat
on the prior year.
HalfYear
NZD $MH1 FY17H1 FY16VAR%
Rentalincome30.330.30.00%
Sale of goods5.95.90.00%
Costs(30.6)(31.5)0.93%
EBIT5.64.70.919%
HalfYear
USD $MH1 FY17H1 FY16VAR%
Rentalincome13.111.31.816%
Sale of goods18.215.32.919%
Costs(24.2)(20.0)(4.2)(21%)
EBIT7.16.60.57%
RENTALS USA –ROAD BEAR
Continued Growth & Strong ROFE
•EBIT growth of 7% has been achieved
in USD terms. A stronger NZD:USD
exchange rate (0.74 FY17 vs 0.67
FY16) has resulted in a lower NZD
EBIT result.
•As expected, EBIT margin is down due
to investment in head office resource
and infrastructure to facilitate growth.
•Summer 2016 saw good growth in
rental income. To date, summer 2017
bookings support a positive rental
outlook.
•Vehicle sales demand remains strong.
US RV industry motorhome shipments
were up 16% for the year to November
2016.
•Road Bear sold 52 additional units
(+16%) in H1 compared with last year.
•Lower fleet purchases in H1 is a timing
difference, with later delivery of new
season fleet in FY17 than the prior
year.
Vehicle Fleet Units:H1 FY17H1 FY16VAR%
OpeningFleet July6986138514%
Fleet Sales(373)(321)(52)16%
Fleet Purchases10155(145)(94%)
Closing Fleet Dec335447(112)(25%)
HalfYear
NZD $MH1 FY17H1 FY16VAR%
Rentalincome17.816.90.95%
Sale of goods24.722.72.09%
Costs(32.9)(29.8)(3.1)(10%)
EBIT9.69.8(0.2)(2%)
12
TOURISM GROUP
Leveraging Tourism Demand
•Customer growth has exceeded YTD
inbound holiday visitor arrivals growth
(15%).
•The retail space at the Glowworm
Caves was expanded early in the year
and has seen improved retail
performance across the peak period.
•The Waitomo Caves Homestead has
now been open for a year. First
season financial results are ahead of
plan.
Halfyear
NZD $MH1 FY17H1 FY16VAR%
Revenue17.715.12.617%
Costs13.411.8(1.6)(14%)
EBIT4.33.31.030%
13
GROUP SUPPORT SERVICES AND OTHER
Investment in Growth
•Costs before non-recurring items
increased by $1.5M, mainly due to the
Mighway and GeoZonenew initiatives.
•Mighwayis in its first full peak season,
following last year’s limited trial. Growth
of the owner base has been positive,
with over 400 owners registered.
Summer rental demand is meeting
expectations. This start-up remains in a
loss-making position ($1.0M EBIT loss
YTD).
•Note that revenue reported for Mighway
is the net revenue retained after sharing
with owners and managers (for
managed rentals).
•The profit on sale of the GeoZone
business to Roadtrippers was $1.3M
•Transaction costs related to the El
Monte and Roadtrippersinvestments
were $1.6M.
Halfyear
NZD $MH1 FY17H1 FY16VAR%
Revenue0.30.10.2200%
Costs(4.4)(2.9)(1.5)(51%)
EBIT before non-recurring
items
(4.1)(2.8)(1.3)(46%)
Profit on sale of GeoZone1.31.3
Transactioncosts(1.6)(1.6)
EBIT after non-recurring
items
(4.4)(2.8)(1.6)(57%)
14
JOINT VENTURES AND ASSOCIATES
Action Manufacturing
•Action Manufacturing Net Profit
Before Tax is up strongly on FY17
due mainly to higher motorhome
build volumes, including flex fleet.
•The specialist vehicle manufacturing
division has a strong pipeline of new
business, including the first
ambulances for the Australian
market.
Just Go (UK)
•Just Go enjoyed a successful
summer season, with a fleet that
was increased by 30% on the prior
year.
•Good progress has been made on
developing vehicle sales capability.
Roadtrippers
•The Roadtrippers results reflect the
equity accounted losses for
November and December for
Roadtrippers USA, and a small
December loss for the Roadtrippers
Australasian JV.
Share of Profit/Loss
NZD $MH1 FY17H1 FY16VAR%
Joint Ventures (50%)
Action Manufacturing1.240.890.3539%
Roadtrippers Australasia(0.01)
1.230.890.3337%
Associates
Just Go (49%)0.340.140.20143%
Roadtrippers USA (22.5%)(0.16)(0.16)
GeoZone(0.02)0.02
0.180.120.0650%
15
FY17 PROGRESS &
OUTLOOK
16
EL MONTE UPDATE
•January was the first month of ownership and the
transition has been smooth.
•Immediate focus is on the sale of older fleet and fleet
management.
•The fair value accounting for the purchase is not yet
complete due to working capital adjustments yet to be
completed.
•The 3.4M shares issued as part consideration were fair
valued at the date of acquisition. $1.5M of goodwill has
arisen as a result, due to an upward movement in the
share price from that agreed at the time of the
negotiation of the purchase price.
El Monte Acquisition Provisional Accounting Fair Value
NZD $M
Cash78.5
thlsharesissued12.5
Total consideration91.0
Fixed assets 62.6
Inventory–including vehicles held for sale5.4
Other current assets3.8
Goodwill23.7
Current liabilities(4.5)
Total Net AssetsAcquired91.0
17
FOCUS FY17
ORGANIC GROWTH
•Flex fleet in NZ and AU
Rentals.
•Increased fleet in US
for summer 2016.
•Ongoing leverage of inbound
tourism at Waitomo and Kiwi
Experience.
INORGANIC GROWTH
•Ongoing search for value
accretive opportunities that
leverage our global RV and
NZ tourism capability.
MIGHWAY
•Scale up NZ fleet for summer.
•Prove scalability of the model.
•Explore US market if NZ
market model is proven.
•Disciplined approach to each
stage of financial
commitment.
•Flex fleet for summer in NZ
and AU on fleet as planned
and rental volumes are
meeting expectations.
•USA 2016 summer peak fleet
was up ~15%.
•Waitomo and Kiwi benefiting
from YTD inbound holiday
arrivals growth of 15%.
•Acquisition of owners in NZ is
progressing well and summer
rental volumes are meeting
expectations.
•USA trial with focus on West
Coast has commenced.
Half year progress report
•El Monte purchase completed
on 6 January 2017. Lifts thlto
second largest USA RV rental
operator.
•Sale of GeoZone, purchase of
22.5% of Roadtrippers USA
and formation of JV with
Roadtrippers in Australasia
gives global scale to trip
planning and in-trip tablet
offering.
FY17 Goals
The internal theme for FY17 is ‘DELIVER’
18
FOCUS FY17
•Platform in all NZ and AU
vehicles for summer.
•Ongoing development of the
tablet functionality in
conjunction with Roadtrippers.
TCEX
•Complete development
of the digital platform including
content and transactional
functionality.
•Customer satisfaction metrics
tracking well across peak
season.
•Awarded ACC tertiary
workplace safety status in NZ
in January 2017.
THE FUNDAMENTALS
•Continue the focus on delivering
unforgettable experiences.
•Maintain a safe and healthy
environment for staff and
customers.
•Develop an engaged, skilled
workforce that delivers
unforgettable customer
experiences.
•Development is progressing
well, with key functionality at
prototype stage.
TECHNOLOGY INVESTMENT
•Update core rentals booking,
billing and scheduling systems
to create benefits in yield and
utilisation.
The internal theme for FY17 is ‘DELIVER’
FY17 Goals
Half year progress report
19
FY17 CAPITAL EXPENDITURE
•Gross capital expenditure forecast now at ~$175M for FY17 including $20M related to El Monte new season fleet
purchases.
•Excluding El Monte, capital expenditure for core long term fleet and non-fleet capex is at a similar level to FY16.
•Growth in FY17 gross CAPEX spend of ~$50M relates mainly to Rentals NZ and AU flex fleet ($27M), Road Bear ($3M)
and El Monte fleet ($20M).
•Vehicle sales proceeds is now forecast at ~$118M, $37M up on FY16, mainly due to increased flex fleet sales for Rentals
NZ and AU ($26M) and El Monte fleet sales ($13M), offset by lower NZ/AU core fleet sales.
•Net capital expenditure is forecast at ~$57M, up ~$10M on last year with El Monte adding $7M.
20
* Note: CAPEX reported includes vehicles purchased and sold under buyback arrangements.
NZ$M
NPAT
FY17
Forecast
FY16
Actual
Existing Business
1
29.224.4
MighwayUSA and
Roadtrippers investments
(0.6)
Total pre one offs and El
Monte
28.624.4
El MonteImpact (including
funding)
2
(1.7)
Group NPAT before one offs
26.924.4
Transaction Costs
3
(1.1)
Profiton sale of Geozone
business
1.2
Total thlNPAT27.024.4
GROUP OUTLOOK UPDATE –FULL YEAR
Note 1: Businesses owned prior Roadtrippersand El Monte transactions. Includes GeoZone,
Mighway (NZ).
Note 2: Loss in FY17 H2 for El Monte primarily due to the low season.
Note 3: Net of tax (certain transaction costs are deductible in the USA).
•Outlook for the full year is unchanged
from the guidance provided in
December.
•We continue to drive the business to
exceed this target.
21
SUPPORTING
ANALYSIS
22
INCOME STATEMENT SUMMARY
23
$MFY17FY16VarVar %
Revenue from services96.8 88.8 8.0 9%
Revenue from sale of fleet49.2 44.9 4.3 10%
Total revenue146.0 133.7 12.3 9%
Costs110.2 101.8 (8.4)(8%)
EBITDA 35.8 31.9 3.9 12%
Depreciation & amortisation17.1 16.9 (0.2)(1%)
EBIT18.7 15.0 3.7 25%
Interest(2.4)(2.3)(0.1)4%
Share of Joint Ventures1.2 0.9 0.4 33%
Share of Associates0.2 0.1 0.0 34%
Profit before taxation17.7 13.7 4.0 29%
Taxation(6.4)(5.5)(0.9)(16%)
Profit attributable to thl shareholders
11.3 8.2 3.1 38%
Basic EPS9.7 7.2 2.5 35%
6 M onths to De ce mbe r
REVENUE
24
$MFY17FY16VAR
thl Rentals - Rental Revenue
New Zealand30.826.516%
Australia30.330.30%
USA17.816.95%
78.973.77%
thl Rentals - Sale of Goods
New Zealand18.616.314%
Australia5.95.9(1%)
USA24.722.79%
49.244.910%
Tourism Group17.615.117%
Other0.30.1436%
Total Revenue146.0133.79%
Split
Australia36.236.20%
USA42.539.67%
NZ and other67.357.916%
146.0133.79%
Revenue Split
Sale of Services96.888.89%
Sale of Goods49.244.910%
146.0133.79%
6 Months to December
DIVISIONAL REVIEW
25
DIVISIONALAVE FUNDSOPERATINGDIVISIONALAVE FUNDSOPERATING
$MREVENUEEBITEM PLOYEDCASHFLOW*REVENUEEBITEM PLOYEDCASHFLOW*
Rentals New Zealand49.4 3.7 125.0 (23.5) 42.8 0.0 111.8 (17.8)
Rentals Australia36.2 5.6 63.5 (1.9) 36.2 4.7 59.8 1.9
Rentals USA42.5 9.6 37.8 25.1 39.6 9.8 37.5 8.9
Tourism Group17.6 4.3 26.6 5.5 15.1 3.3 25.1 4.9
Group Support Services/Other0.3 (4.1) (1.5) (5.8) 0.1 (2.8) 1.4 (6.9)
Non-recurring Items- (0.4) - (0.3) - - - -
thl 100% owned entities146.0 18.7 251.4 (0.9) 133.7 15.0 235.6 (9.0)
Joint Ventures1.2 3.6 0.9 5.3
Associates0.2 5.3 0.1 4.4
Group Total146.0 20.1 260.3 (0.9) 133.7 16.0 245.3 (9.0)
* Operating cashflow includes the sale and purchase of rental assets.
Six M onths Ende d 31 De ce mbe r 2016Six M onths Ende d 31 De ce mbe r 2015
EBITDA
$M
FY17
FY16
Var
Var %
EBIT
18.7
15.0
3.7
25%
Add back non-cash items:
Amortisation
0.8
0.8
0.0
Depreciation
16.3
16.1
0.2
EBITDA
35.8
31.9
3.9
12%
6 M onths to De ce mbe r
26
BALANCE SHEET
$MDEC 16DEC 15Var
Equity174.7 169.6 5.1
Non current liabilities127.9 109.0 18.9
Current liabilities61.8 49.1 12.7
Total source of funds364.4 327.7 36.7
Intangible assets and goodwill20.2 20.9 (0.7)
Investments in associates and joint ventures16.2 3.8 12.4
Non current assets254.1 249.2 4.9
Current assets73.9 53.8 20.1
Total use of funds364.4 327.7 36.7
Net debt position103.0 90.4 12.6
Net tangible assets (NTA)154.5 148.7 5.8
NTA per share$1.33$1.31
Book value of net assets per share$1.51$1.49
Debt / debt + equity ratio (net of Intangibles)
40%38%
Equity ratio (net of Intangibles)45%48%
AUD exchange rate at period end0.9868 0.9563
USD exchange rate at period end0.7161 0.7002
As at
27
GAIN ON FLEET VEHICLE SALES AND GROSS PROFIT
Real depreciation (the difference between original cost and sale price) rates are within ranges:
NZ~7%
AU~9%
US<0%
28
$MFY17FY16VarVar %
Gain on sales of motorhome fleet before selling costs7.16.50.6 10%
Vehicle sales costs2.32.10.2 9%
Gain on sales of motorhome fleet after selling costs4.9 4.4 0.5 10%
Gross profit on non-fleet vehicle and accessory sales1.1 0.6 0.5 78%
Reported gross profit5.9 5.0 0.9 18%
Average gain on sale ($000) after selling costs6.7 6.4 0.2 3%
Fleet motorhomes sold (incl writeoffs)
AU150 145 5 3%
NZ206 218 (12)-6%
US373 321 52 16%
Total fleet motorhomes sold (units)729 684 45 7%
Fleet motorhomes at period end
AU1,416 1,310 106 8%
NZ2,174 2,038 136 7%
US335 447 (112)-25%
Total fleet motorhomes 3,925 3,795 130 3%
6 Months to December
END
29
---
APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
y
whether:
Interim
y
YearSpecialDRP Applies
y
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per security
Payment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
Supplementary
Amount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FDP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
EMAIL: announce@nzx.com
Notice of event affecting securities
1
Tourism Holdings Limited
Mark Davis, CFODirector's resolution
(09) 336 4212(09) 309 09132022017
119,124,010 Ordinary sharesNZ HELE 0001S9
In dollars and cents
Retained earnings
10 cents
Enter N/A if not
applicable
$$0.019972$0.019444
$
NZD$0.008824
$11,912,401.00
Date Payable
13 April, 2017
3 April, 201713 April, 2017
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.