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Tourism Holdings revenue up but earnings down


Thursday 25th August 2011

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Tourism Holdings reported a 7 percent rise in full year operating revenue to $196.8 million, but costs were also higher and the company's earnings were down.

The company said the appropriate comparative measure for the business was operating earnings before interest and tax (ebit) which fell to $4.3m in the year to June from $9.9m a year earlier.

When a previously announced non-cash goodwill writedown for Tourism Holding's rentals businesses in this country and Australia, amounting to $26.1m, is included, reported net loss after tax for the company was $27.3m. That compares with a $4.6m net profit the year before.

Tourism Holdings provides holiday rental vehicles in Australia, this country and the United States, manufactures campervans at Ci Munro, and also has operations at the Waitomo Caves.

It said its performance was hit by a range of factors including earthquakes in Christchurch, floods in Queensland, and rising New Zealand and Australian dollars. No dividend is being paid.

Depreciation was $5m higher than a year earlier, employee costs were up nearly $3m, repairs and maintenance costs were almost $3m higher, and net finance costs rose $2m.

Company revenue included six months' contribution from Road Bear USA, which was bought in December and had $15.4m in revenue and ebit of $300,000 for the six months, Tourism Holdings said.

Rental revenue was below expectations given fleet size in Australia and this country.

Total fleet size rose to 3773 from 3000, including those in the Road Bear deal, while net debt increased from $37m to $99m.

Tourism Holdings maintained previous guidance for the 2012 financial year of ebit at $17.2m and net profit at $5.9m.

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