PRESENTATION 23 February 2016 H1 FY16 Highlights Earnings before - - PowerPoint PPT Presentation
TOURISM HOLDINGS LTD FY16 INTERIM RESULTS PRESENTATION 23 February 2016 H1 FY16 Highlights Earnings before interest Revenue and tax* Net profit after tax $15.0M $134M $8.2M up 20% up 45% up 42% H1 EBIT 15.0 10.6 Interim dividend
Net profit after tax
Earnings before interest and tax*
Interim dividend 9 cps (partially imputed)
Revenue
5.3 7.2 10.6 15.0
FY13 FY14 FY15 FY16
$M
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9.5 13.7
1.1 0.0 3.7 0.9 1.3 0.1 0.1
Profit Before Tax H1 FY15 Rentals NZ Rentals Aus Rentals USA Tourism Group Group Services Action Manufacturing Interest Profit Before Tax H1 FY16
H1 Operating Profit Before Tax (NZD$M) NZD $M H1 FY16 H1 FY15 Var % Operating revenue 133.7 111.4 22.3 20% Earnings before interest and tax* 15.0 10.6 4.4 42% Operating profit before tax 13.7 9.5 4.2 44% Profit after tax 8.2 5.6 2.6 45% Earnings per share (in cents) 7.2 5.0 2.2 44%
* EBIT excludes joint venture and associates earnings
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Rental income growth of 11% achieved with a similar sized fleet. Flex fleet did not start until late December. Improved profitability mainly due to small increase in utilisation and yield improvement. Core rental fleet is lower than Dec FY15, with flex fleet (short term inventory to be sold after peak) providing growth. Costs well controlled, with 3% growth
increase of 11% arises from higher vehicle sales volumes and higher average net book value of vehicles sold. Peak season demand is strong.
H1 FY16 - NZD NZD $M H1 FY16 H1 FY15 Var % Rental income 26.5 23.9 2.6 11% Sale of goods 16.3 13.6 2.7 20% Costs 42.8 38.6 (4.2) (11%) EBIT 0.0 (1.1) 1.1 98% Vehicle Fleet Units: H1 FY16 H1 FY15 Var Fleet Sales H1 218 199 19 Fleet Purchases H1 314 196 118 Closing Fleet Dec 2,038 1,996 42
Vehicle sales volumes up 19 units on
due to mix of vehicles sold.
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A flat result on FY15. Includes upfront costs for Telematics and Melbourne RV Sales Centre, with benefits not yet realised. Rental income was up 2% in AUD on FY15 due to higher utilisation with a lower fleet. Costs excluding vehicle sales were up 4% in AUD on last year. 4WD owned vehicles have been reduced and were replaced with leased fleet for peak 4WD season in H1. Fleet numbers down 61 units, mainly due to 4WD fleet .
H1 FY16 - NZD NZD $M H1 FY16 H1 FY15 Var % Rental income 30.3 29.9 0.4 1% Sale of goods 5.9 5.0 0.9 18% Costs 31.5 30.2 (1.3) (4%) EBIT 4.7 4.7 0.0 0% Vehicle Fleet Units: H1 FY16 H1 FY15 Var Fleet Sales H1 145 114 31 Fleet Purchases H1 172 155 17 Closing Fleet Dec 1,310 1,371 (61)
Vehicle sales have improved on
now open for direct retail sales, with momentum growing.
H1 FY16 - AUD AUD $M H1 FY16 H1 FY15 Var % Rental income 28.1 27.5 0.6 2% Sale of goods 5.5 4.6 0.9 20% Costs 29.3 27.8 (1.5) (5%) EBIT 4.3 4.3 0.0 0%
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A strong EBIT result, up 25% in USD terms and 61% in NZD. Rental income was up 15% in USD terms with higher utilisation, increased fleet and improved yield. Vehicle sales demand has been strong, with YTD sales ahead of
in USD was up 25% on LY. Fleet to be increased for summer 2016 by ~10% units.
H1 FY16 - NZD NZD $M H1 FY16 H1 FY15 Var % Rental income 16.9 11.4 5.5 48% Sale of goods 22.7 14.9 7.8 52% Costs 29.8 20.2 (9.6) (48%) EBIT 9.8 6.1 3.7 61% Vehicle Fleet Units: H1 FY16 H1 FY15 Var Fleet Sales H1 321 267 54 Fleet Purchases H1 155 40 115 Closing Fleet Dec 447 310 137 H1 FY16 - USD USD $M H1 FY16 H1 FY15 Var % Rental income 11.3 9.8 1.5 15% Sale of goods 15.3 12.2 3.1 25% Costs 20.0 16.7 (3.3) (20%) EBIT 6.6 5.3 1.3 25%
The development of the new Seattle branch is on track for opening in summer 2016. Forward bookings are meeting expectations.
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Visitation growth across the shoulder season and running into summer has been very strong. Chinese growth, in particular, is benefiting Waitomo. The Waitomo Caves Homestead
Initial performance is in line with expectations.
H1 FY16 - NZD NZD $M H1 FY16 H1 FY15 Var % Revenue 15.1 12.7 2.4 19% Costs 11.8 10.3 (1.5) (14%) EBIT 3.3 2.4 0.9 37%
Kiwi Experience peak travel period started in late December, with travel volumes up strongly. ‘Glamping’ sites have been set up in 3 key stop-offs to ensure accommodation is available. EBIT up 37%. Includes launch costs
ticketing.
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NPBT down on FY15, as expected, due to lower motorhome margins. This results in lower build costs for thl. H1 included first production of new KEA Breeze 4 berth and Action Pods, both used as flex fleet by Rentals NZ across summer peak. Continued progress on reducing costs
Debt outstanding to thl reduced by $1.3M.
NPBT H1 FY16 (thl share) - NZD NZD $M H1 FY16 H1 FY15 Var % Revenue 15.6 14.1 1.5 11% Costs 14.7 13.0 (1.7) (13%) NPBT 0.9 1.1 (0.2) (18%)
Focus on international opportunities for emergency vehicle market.
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approach to investment in fleet accordingly.
This potentially created fleet over-capacity when demand dropped, leading to yield and utilisation impacts and negative operating leverage.
advantage of the high demand periods without creating potential long term risk for the business.
flexibility and resilience:
Road Bear model.
events.
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We have positioned the business model today to look at debt and working capital in a different way. The accounting methodologies haven’t changed and fleet are still considered fixed assets. We are now positioning flex-fleet as, in essence, working capital as the purchase cycle and sale cycle are dramatically different to the past.
Buy Sell Buy Sell
Core debt Working capital
Years
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Buy Sell Buy Sell Buy Sell Buy Sell Buy Sell
The increase in forecast gross capex spend for FY16 is mainly funding flexible fleet that is turned over in under 18 months. Forecast core gross capex spend on long-term fleet is stable at around $60M. Flex fleet in FY16 takes the form of:
months
FY16 summer period, turned over in under 9 months.
purchased under a buy-back arrangement for the 2016 winter season, turned over in under 9 months.
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Key ratios remain well within benchmark Baa/BBB target rating measures and are considered
value accretive acquisitions.
* Commitments under the documentary letter of credit (LC) facility in June each year relate to work in progress on NZ fleet for the following season produced by AMLP. ^ Based on 12 months ending December. # Debt includes LC commitment.
$79M $85M $69M $90M $6M $14M
1.0 1.5 2.0 2.5 3.0 10 20 30 40 50 60 70 80 90 100
June 2014 Dec 2014 June 2015 Dec 2015
Debt:EBITDA $M
Net Debt
Net Debt (lhs) LC Commitments* Debt:EBITDA (rhs) (incl LC commitment)
Net debt has increased to $90M, predominantly funding flex fleet.
Ratio^ H1 FY16 H1 FY15 Debt:EBITDA# 1.3 1.4 Debt/Debt + Equity 38% 38% EBIT/Interest 8.1 5.5 EBITDA/Interest 15.5 12.7
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Gross capex spend less Vehicle sales proceeds equals Net capex. Net capex equals Net core capex plus Net flex capex plus Waitomo Caves Homestead.
FY16 fleet sales proceeds forecast has been increased by ~$15M due to higher flex fleet sales - USA and NZ. Net capex spend has been increased
due to Australian 4WD vehicles to be purchased under a buy-back arrangement as opposed to leased as per last year, and the Waitomo Caves Homestead purchase. Net capex on core fleet and infrastructure is stable on FY15. Gross capex spend forecast for FY16 has been increased by ~$25M, all but $4M (Homestead) related to flex fleet growth.
20 40 60 80 100 120 140
FY14 FY15 FY16f
$M
Gross & net capex spend (full year)
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Outlook
term.
evolve and traditional markets returning to, or reaching, new highs.
UK continue to grow. Full Year NPAT Guidance
support growth and the launch of Mighway, totalling approximately $2M.
FY16 full year profit guidance NZD $M Current Previous FY15 Net profit after tax ~$24M ~$22M $20.1M
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1 2 3 4 5 6 7 8 9 10 FY14 Interim* FY14 Final FY15 Interim FY15 Final FY16 Interim
Dividend cps
* FY14 Interim dividend 100% imputed. Subsequent dividends 50% imputed
FY14 FY15 Payout ratio % NPAT 110% 85%
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Dividend dates Ex date 6 April 2016 Record date 7 April 2016 Payment date 14 April 2016
delivering the $30M NPAT growth goal by FY2019 or earlier. This goal does not include any growth by acquisition.
a global basis within the tourism industry, with a particular focus on the wider RV
is appropriately earnings per share accretive.
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The information in this presentation was prepared by thl with due care and attention. However, the information is supplied in summary form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability of the information. In addition, neither the company nor any of its directors, employees, shareholders nor any other person shall have liability whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any information supplied in connection with it. This presentation may contain forward-looking statements and projections. These reflect thl’s current 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. thl gives no warranty or representation as to its future financial performance or any future matter. Except as required by law or NZX listing rules, thl is not obliged to update this presentation after its release, even if things change materially. This presentation is for information purposes only and does not constitute financial advice. It is not an offer of securities, or a proposal or invitation to make any such offer, and may not be relied upon in connection with any purchase of thl securities. This presentation may contain a number of non-GAAP financial measures. Because they are not defined by GAAP or IFRS, thl’s calculation 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. Although thl believes they provide useful information in measuring the financial performance and condition of thl’s business, readers are cautioned not to place undue reliance on these non-GAAP financial measures. The information contained in this presentation should be considered in conjunction with thl’s latest financial statements and other market announcements, which are available at: www.thlonline.com All currency amounts are in New Zealand dollars unless stated otherwise.
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$M FY 16 FY 15 Var Var % Revenue from sale of services 88.8 77.9 10.9 14% Revenue from sale of goods 44.9 33.5 11.4 34% Total revenue 133.7 111.4 22.3 20% EBITDA 31.9 26.8 5.1 19% EBIT 15.0 10.6 4.4 42% Interest (2.3) (2.2) (0.1) 5% Share of JV Profit (loss) 0.9 1.1 (0.2) (18%) Share of Associates 0.1 0.1 Profit before taxation 13.7 9.5 4.2 44% Taxation (5.5) (3.9) (1.6) 42% Profit attributable to thl shareholders 8.2 5.6 2.6 45% Basic EPS 7.2 5.0 2.2 44% 6 Months to December
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In Base $M FY16 FY15 Var Currency THL Rentals - Rental Revenue New Zealand 26.5 23.9 11% 11% Australia 30.3 29.9 1% 2% USA 16.9 11.4 48% 15% 73.7 65.2 13% 8% THL Rentals - Sale of Goods New Zealand 16.3 13.6 20% 20% Australia 5.9 5.0 18% 20% USA 22.7 14.9 52% 25% 44.9 33.5 34% 22% Tourism Group 15.1 12.7 19% 19% Total net turnover as reported 133.7 111.4 20% 13% Split Australia 36.2 34.9 4% 5% USA 39.6 26.3 51% 21% NZ and other 57.9 50.2 15% 15% 133.7 111.4 20% 13% Operating Revenue Split Sale of Services 88.8 77.9 14% 9% Sale of Goods 44.9 33.5 34% 22% 133.7 111.4 20% 13% 6 Months to December
; $M FY16 FY15 Var THL Rentals New Zealand (0.0) (1.1) 98% Australia 4.7 4.7 (0%) USA 9.8 6.1 61% 14.5 9.7 49% Tourism Group 3.3 2.4 37% Total Operating Divisions 17.8 12.1 47% Group Support Services (2.8) (1.6) (79%) EBIT 15.0 10.6 42% Split Australia 4.7 4.7 (0%) USA 9.8 6.1 61% NZ and other 0.5 (0.2) (308%) Total EBIT 15.0 10.6 42% 6 Months to December
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Divisional Funds Operating Divisional Funds Operating $M Revenue EBIT Employed Cashflow* Revenue EBIT Employed Cashflow* Rentals New Zealand 42.8 (0.0) 129.0 (17.8) 37.5 (1.1) 124.1 (14.7) Rentals Australia 36.2 4.7 55.0 1.9 34.9 4.7 59.8 0.4 Rentals USA 39.6 9.8 38.0 8.9 26.3 6.1 21.7 14.9 Tourism Group 15.1 3.3 26.0 4.9 12.7 2.4 23.7 4.7 Group Support Services
3.1 (6.9)
7.0 (3.4) Non-recurring Items
133.7 15.0 251.0 (9.0) 111.4 10.6 236.3 1.9 Action Manufacturing - JV^ 0.9 5.1 1.1 7.4 Associates# 0.1 3.9 0.3 Group Total 133.7 16.0 260.0 (9.0) 111.4 11.7 244.0 1.9 ^AMLP Joint Venture 50% NPBT * Operating cashflow includes the sale and purchase of rental assets.
#Associates includes Just Go (UK) and Geozone until October 2015, when 100% acquired.
6 months to December 2015 6 Months to December 2014
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$M FY 16 FY 15 Var Var % EBIT 15.0 10.6 4.4 42% Add back non-cash Items: Amortisation 0.8 0.8 0.0 Depreciation 16.1 15.4 0.7 EBITDA 31.9 26.8 5.1 19% 6 Months to December
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$M Dec 15 Dec 14 Var Equity 169.6 159.3 10.3 Non current liabilities 109.0 75.4 33.6 Current liabilities 49.1 66.4 (17.3) Total source of funds 327.7 301.1 26.6 Intangible assets and goodwill 20.9 20.6 0.3 Investments in associates 3.8 0.3 3.5 Non current assets 249.2 232.7 16.5 Current assets 53.8 47.5 6.3 Total use of funds 327.7 301.1 26.6 Net debt position 90.4 84.8 5.6 Net tangible assets 148.7 138.7 10.0 NTA per share 1.31 $ 1.23 $ Book value of net assets per share 1.49 $ 1.42 $ Debt / debt + equity ratio (net of Intangibles) 38% 38% Equity ratio (net of Intangibles) 48% 49% AUD exchange rate at period end 0.9563 0.9737 USD exchange rate at period end 0.7002 0.8021 As at
$M FY 16 FY 15 Var Var % Vehicle sales 44.9 33.5 11.4 34% Vehicle purchases (61.9) (39.5) (22.4) 57% Net fleet capex (17.0) (6.0) (11.0) 183% Other operating cashflow 8.0 7.9 0.1 1% Cashflow from operating activities (9.0) 1.9 (10.9) (574%) Purchase of property, plant and equipment (6.6) (1.0) (5.6) 560% Other investing cashflow 2.2 0.9 1.3 144% Cashflow from investing activities (4.4) (0.1) (4.3) 4300% Borrowings 21.5 7.4 14.1 191% Dividends (9.1) (6.7) (2.4) 36% Share issues 0.6 0.5 0.1 20% Cashflow from financing activities 13.0 1.2 11.8 983% Net cashflow (0.4) 3.0 (3.4) (113%) 6 Months to December
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$M FY16 FY15 Var Var % Gain on sales of motorhome fleet before selling costs 6.5 5.8 0.7 12% Vehicle sales costs ($M) 2.1 1.6 0.5 32% Gain on sales of motorhome fleet after selling costs 4.4 4.2 0.2 5% Gross profit on non-fleet vehicle and accessory sales 0.6 0.4 0.2 37% Reported gain on sale 5.0 4.6 0.4 8% Average gain on sale ($000) incl selling costs 6.4 7.2 (0.8) (11%) Fleet motorhomes sold AU 145 114 31 NZ 218 199 19 US 321 267 54 Total fleet motorhomes sold (units) 684 580 104 Fleet motorhomes at period end AU 1,310 1,371 (61) NZ 2,038 1,996 42 US 447 310 137 Total fleet motorhomes 3,795 3,677 118 6 Months to December
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$M H1 H2 FY FY15 reported actual NPAT 5.6 14.5 20.1 FY16 forecast NPAT FY16 forecast NPAT before exchange rate impact 7.2 15.7 22.9 Exchange rate impact* 1.0 0.1 1.1 FY16 forecast NPAT 8.2 15.8 24.0 NPAT growth before exchange rate impact 1.6 1.2 2.8 28% 9% 14%
* Impact of movements in NZD:USD exchange rate on translation of USD earnings. H2 FY16 is based on forecast exchange rate at 0.68. The impact of movements in NZD:AUD exchange rates is negligible.
NPAT
1,000 1,200 1,400 1,600 1,800 2,000 2,200 June 2014 Dec 2014 June 2015 Dec 2015
Rentals NZ
1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 June 2014 Dec 2014 June 2015 Dec 2015
Rentals Australia
200 250 300 350 400 450 500 550 600 650 June 2014 Dec 2014 June 2015 Dec 2015
Rentals USA
54% 34% 12%
Proportion of Fleet Rentals NZ Rentals AU Rentals USA
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FY16 gross capital spend forecast has been increased by ~$25M to $125M- $130M due to:
sales, increase for summer 2016 & exchange rate
buyback arrangement, vs lease in 2015
20 40 60 80 100 120 140 FY14 FY15 FY16 fcast
$M
Gross capex spend (full year)
Rentals USA Rentals AU Rentals NZ Other
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Fleet sales proceeds forecast increased by ~$15M to $80M-$85M due to:
sales
10 20 30 40 50 60 70 80 FY14 FY15 FY16f
$M
Fleet sales proceeds (full year)
Rentals USA Rentals AU Rentals NZ
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5 15 25 35 45 FY14 FY15 FY16 fcast
$M
Net capital expenditure (full year)
Rentals USA Rentals AU Rentals NZ Group and Other
Net capex cashflow forecast for FY16 $40M-$45M. Increase on last forecast ~$10M mainly due to:
arrangement vs operating lease in 2015.
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