Tourism Holdings Says Annual Loss Will Top $ 12.8 Million, Stock Sinks

Tourism Holdings (THL) says it expects its net loss to be higher than average market expectations ($ 12.8 million as of June 2021) due to lower-than-expected domestic travel activity.

THL outlined a strategic plan for the year at its annual meeting on October 30 and said today that the company has been successfully executing that plan. But the operations of the last two months indicated that domestic demand through January and March would be lower than initially expected.

“While it is currently not possible to provide a credible forecast for the full-year 2021 outcome, based on current expectations, the loss for 2021 is expected to be greater than the average of the results projected by market analysts,” the company said. .

The average of the brokers’ expectations was a loss of $ 12.8 million for the year.

Shares in THL fell 14 cents, or 5.5 percent, to $ 2.40 on the news.

THL said its approach to balance sheet management had been successful.

Expectations for year-end debt and capital expenditures were in line with the guidance provided at the annual meeting, which was for a capital expenditure of $ 100 – $ 130 million and a net debt of $ 100 million.

THL said that based on operations in November and early December, domestic demand for travel between the end of January and March was now expected to be lower than originally forecast.

In Australia, there was a positive level of rental activity in the short period of time that Covid-19 state border restrictions were completely lifted.

“This provides confidence that the Australian company will be able to operate profitably in the domestic market, assuming there are no domestic travel restrictions.”

Vehicle sales to date had been positive with around 100 percent growth in the number of vehicles sold compared to the corresponding period of the previous year.

The positive sales environment is expected to continue through the remainder of 2021.

THL is the largest provider of recreational vehicles (RVs) for rental and sale in Australia and New Zealand, and the second largest in North America.

It is also a joint venture partner in Action Manufacturing LP, New Zealand’s largest manufacturer of motorhomes and specialty vehicles.

THL’s net profit reached $ 27.4 million in June 2020.