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Tourism Holdings forecasts first-half loss on merger costs

Tourism Holdings, which merged its campervan rental business with two rivals last month, forecast a first-half loss on costs of the transaction and changes to the accounting of its US fleet.

The net loss will be $500,000 to $1 million in the six months ended December 31, down from a year-earlier profit of $4.2 million. Earnings before interest and tax will be $4.2 million to $5 million, down from $11.5 million a year earlier.

The Auckland-based company gave the forecasts at its annual meeting yesterday and released the same guidance to the NZX today.

Costs associated with the $69.5 million merger with rivals United Campervans and KEA Campers would amount to $1.3 million.

A change in the accounting treatment of fleet rebates in the US from point of purchase to point of sale would lop a further $1.2 million off ebit.

The first-half would also compare unfavourably with the same period of 2011, when the Rugby World Cup drove up demand for the company's campervans.

Shares of Tourism Holdings last traded at 74 cents and have climbed about 25% this year.

(BusinessDesk)

Comments and questions
2

Wait for the Hobbit to bring in the tourists. Going to be an early 2000's renaissance.

The company must have almost run out of excuses. But not yet….
You saw it here first “the Hobbit movie exposure did not live up to our forecast and expectations”,
G Webster – June 2013

How about we start from the top.
The board – How many understand tourism?
The executive team – How long have they been there?

Just a thought.