TOURISM HOLDINGS LTD FY15 FULL YEAR RESULTS. August 27th 2015

Transcription

1 TOURISM HOLDINGS LTD FY15 FULL YEAR RESULTS August 27th 2015

2 FY15 Highlights Revenue up 4% to $237M Final dividend 8 cps (partially imputed) All operating groups increased profits Net profit after tax of $20.1M up 81% Net debt $69M, down from $79M pcp Earnings before interest and tax* of $32.3M up 42% Strategic Capital Review completed with focus on growth * EBIT excludes joint venture and associates earnings 2

3 Meeting Commitments November 2014 AGM commitments Group NPAT above $16M Australian Rentals ROFE at acceptable level NZ Rentals ROFE improvement USA Rentals and Tourism businesses continue strong ROFE Debt repayment by manufacturing JV Debt levels at or below $80M New growth opportunities commence $20.1M (from $11.1M) 11.6% (from 6.3%) 11.2% (from 6.7%) 20.1% USA 34.6% Tourism $4M repaid $69M Just Go purchased Focus on value accretive acquisitions WIP 3

4 Growth from all operating divisions NZD $M FY15 FY14 Var % Operating revenue % Earnings before interest and tax* % Operating profit before tax % Profit after tax % Earnings per share % 2.4 Operating Profit Before Tax (NZD$M) Profit Before Tax FY14 Rentals NZ Rentals Aus Rentals USA Tourism Group Group Services Non-Recurring Action Manufacturing Interest Profit Before Tax FY15 * EBIT excludes joint venture and associates earnings 4

5 Strong ROFE improvement ROFE closing in on our target of at least 14% Return on Funds Employed FY15 FY14 change Rentals NZ 11.2% 6.7% +4.5% Rentals AU 11.6% 6.3% +5.3% Rentals USA 20.1% 25.4% -5.3% Significant increases for Rentals NZ and AU. Still improvement required. Tourism Group 34.6% 25.4% +9.2% thl Group 13.3% 9.6% +3.7% Group Return on Funds Employed USA remains strong. Lower than FY14 due to increase in fleet that will benefit FY % 13.3% Strong increase in Tourism reflects operational leverage, with low capital requirements. 5.2% FY13 FY14 FY15 5

6 Rentals NZ Profit and ROFE improved with reduced fleet. Improved profitability due to lower depreciation, flat operating costs, improved vehicle sales margin and growth in non-fleet vehicle sales and ancillary revenue. Fleet purchases in FY15 have increased to a more normal level for fleet rotation at 5-6 years. The permanent fleet has reduced in FY15 but will remain around this level in FY16. Flexible fleet options introduced to lift rental fleet over summer FY16. Outlook for summer FY16 rentals and vehicle sales market is positive. H2 FY15* NZD $M FY15 FY14 Var % Revenue % Costs (0.1) 0% EBIT % Full Year FY15* NZD $M FY15 FY14 Var % Revenue % Costs % EBIT % EBIT Margin 13.6% 8.5% 5.1% Vehicle Fleet Units: FY15 FY14 Var Fleet Sales (34) Fleet Purchases Closing Fleet 1,787 1,903 (116) WIP Fleet** * NZ Rentals H2 and Full Year FY15 result excludes non-recurring gain on Deferred Consideration ($1.7M) ** WIP fleet is new fleet being built for FY16 summer, not yet in use 6

7 Rentals Australia 65% improvement in EBIT. Cost driven. Improvements in fleet planning and scheduling have increased utilisation, while decreasing costs. Savings in fleet maintenance and depreciation. Fleet reduced by 3%. 4WD owned fleet has been replaced with short term leased fleet over the six month 4WD season, increasing ROFE in FY16. 4WD sales market difficult due to the downturn in the mining industry. Direct vehicle sales from a new sales centre in Melbourne will commence in Q2 FY16. H2 FY15 NZD $M FY15 FY14 Var % Revenue (0.2) (1%) Costs % EBIT % Full Year FY15 NZD $M FY15 FY14 Var % Revenue (3.7) (5%) Costs % EBIT % EBIT Margin 9.2% 5.3% 4.0% Vehicle Fleet Units: FY15 FY14 Var Fleet Sales (9) Fleet Purchases Closing Fleet 1,297 1,336 (39) 7

8 Rentals USA Another strong year, with EBIT growth of 17% and ROFE over 20%. Increased EBIT driven from improved shoulder season rental income. Improved margins on vehicle sales. H2 FY15 NZD $M FY15 FY14 Var % Revenue % Costs (21%) EBIT % Vehicle purchases lifted by 80 on the back of good rental demand, to increase the fleet across the 2015 summer season. The vehicle sales market was strong, with sales meeting targets, and margin ahead of last year. Full Year FY15 NZD $M FY15 FY14 Var % Revenue % Costs (13%) EBIT % EBIT Margin 17.6% 17.1% 0.5% Successful transition of management from Daniel Schneider to Hannes Rosskopf. New Seattle branch opening in FY16. Vehicle Fleet Units: FY15 FY14 Var Fleet Sales Fleet Purchases Closing Fleet

9 Tourism Group Visitation growth was strong, exceeding the growth in inbound tourists to NZ. Waitomo, in particular, is benefiting from the strong growth in Chinese visitors. Both Waitomo and Kiwi Experience can scale with the expected continued growth in inbound arrivals. H2 FY15 NZD $M FY15 FY14 Var % Revenue % Costs (13%) EBIT % Full Year FY15 NZD $M FY15 FY14 Var % Revenue % Costs (14%) EBIT % EBIT Margin 25.6% 25.1% 0.5% 9

10 Action Manufacturing Renamed from RV Manufacturing in FY15. Growth in NPBT from sale of investment in sale of minority interest in another manufacturer and increased margins in H1. NPBT FY15 (thl share) NZD $M FY15 FY14 Var % H % H % FY % Good progress on reducing costs of motorhomes. Debt outstanding to thl reduced by $4M in FY15 to net $5.4M Focus on international opportunities for emergency vehicle market: Accepted as a supplier for Queensland Ambulance Service Received NZTE International Growth Fund grant to develop UK market 10

11 $M Debt:EBITDA Capital structure Strong balance sheet with flexibility. 140 Net Debt 3.0 Key ratios well within benchmark Baa/BBB target rating measures. Debt : EBITDA 1.3 Debt : Debt+Equity 31% $120M $6M $79M $14M $69M Net debt at $69M. Considered a conservative level June 2013 June 2014 June 2015 Net Debt (lhs) LC Commitments Debt:EBITDA (rhs) (incl LC commitment) - Commitments under the documentary letter of credit (LC) facility of $13.6M relate to work in progress on FY16 NZ fleet produced by AMLP. FY16 production is earlier and at a higher level. Debt : EBITDA includes LC commitment 11

12 $M Gross capex spend Gross Capex Spend Gross capex spend for FY15 of $92M. 80 FY16 forecast gross capital spend is $95M-$105M. Increase due to continued growth in USA fleet, including new Seattle branch, and exchange rate movement of USD and AUD FY13 FY14 FY15 FY16 fcast Rentals USA Rentals AU Rentals NZ Group/Other 12

13 $M Fleet sales proceeds Fleet sales proceeds in FY15 were $62M. Higher than forecast due to stronger US sales and the impact of the USD exchange rate. Australian sales were below forecast but offset by NZ Fleet Sales Proceeds FY16 sales proceeds forecast between $60M-$70M. FY16 forecast increase in US sales due to increased fleet and continued good demand. FY16 Australian sales forecast up on FY15, supported by opening of Melbourne sales centre. FY16 NZ fleet sales forecast lower due to less fleet available for sale FY13 FY14 FY15 FY16 fcast Rentals USA Rentals AU Rentals NZ 13

14 $M Net capex Net capex cashflow in FY15 was $29M. NZ and AU fleet numbers now stabilised after two years of reduction to optimal levels. 45 Net capital expenditure US fleet was increased by 80 units in FY FY16 net capex is forecast in the $30M-$40M range. NZ and AU at stable fleet rotation. US fleet increasing further FY13 FY14 FY15 FY16 fcast Rentals USA Rentals AU Rentals NZ Group and Other 14

15 Fleet size Rentals NZ Rentals Australia 2,200 1,450 2,000 1,400 1,350 1,800 1,300 1,600 1,250 1,200 1,400 1,150 1,200 1,000 June 2013 June 2014 June ,100 1,050 1,000 June 2013 June 2014 June 2015 Rentals USA Proportion of Fleet % 48% % June 2013 June 2014 June 2015 Rentals NZ Rentals AU Rentals USA 15

16 FY16 Outlook Global tourism optimism high Inbound visitor arrival growth continuing NZ forward summer bookings up on last year USA FY16 high season fleet up 14% FY16 NPAT growth forecast. Guidance to be provided at Annual Meeting Australian forward summer bookings up on last year $3M investment in capability and growth initiatives 16

17 Supporting Analysis 17

18 Income statement summary Full Year 6 Months to June 6 Months to December $M FY 15 FY 14 Var Var % FY 15 FY 14 Var Var % FY 15 FY 14 Var Var % Revenue from trading % % % Revenue from sale of goods % % (3.1) (8%) Total revenue % % (2.0) (2%) EBITDA % % % EBIT % % % Interest (4.4) (5.7) 1.2 (22%) (2.3) (2.6) 0.3 (13%) (2.2) (3.1) % Share of JV Profit (loss) (87%) (158%) % Share of Associates (0.0) Profit before taxation % % % Taxation (9.8) (7.0) (2.7) 38% (5.9) (4.7) (1.2) 24% (3.9) (2.3) (1.5) 67% Profit attributable to thl shareholders % % % Basic EPS % 18

19 Revenue Full Year 6 Months to June 6 Months to December $M FY15 FY14 Var FY15 FY14 Var FY15 FY14 Var thl Rentals - rental revenue New Zealand % % % Australia (4%) (5%) (3%) USA % % (1%) % % (2%) thl Rentals - sale of goods New Zealand % % (10%) Australia (11%) % (33%) USA % % % % % (8%) Tourism Group % % % Total net turnover as reported % % (2%) Split Australia (5%) (1%) (9%) USA % % % NZ and other % % % % % (2%) Operating revenue split Sale of services % % % Sale of goods % % (8%) % % (2%) 19

20 Divisional EBIT Full Year 6 Months to June 6 Months to December ; $M June 15 June 14 Var June 15 June 14 Var Dec 14 Dec 13 Var THL Rentals New Zealand* % % (1.1) (2.0) 46% Australia % % % USA % % (3%) % % % Tourism Group % % % Total Operating Divisions % % % Group Support Services** (2.8) (2.5) (13%) (1.3) (1.1) (10%) (1.6) (1.4) (15%) EBIT Before Non-recurring items % % % Non-recurring Items Loss on sale of Hamilton property (1.5) (1.5) Gain on deferred consideration EBIT % % % Split Australia % % % USA % % (3%) NZ and other % % (0.2) (1.7) 87% Total EBIT % % % * Adjusted for non-recurring item - Gain on deferred consideration ** Adjusted for non-recurring item - Loss on sale of Hamilton property 20

21 Divisional review Year ended 30 June 2015 Year ended 30 June 2014 Divisional Funds Operating Divisional Funds Operating $M Revenue EBIT Employed Cashflow** Revenue EBIT Employed Cashflow** Rentals New Zealand Rentals Australia Rentals USA Tourism Group Group Support Services - (2.8) 3.9 (4.9) - (2.5) 6.1 (0.4) Non-recurring Items thl 100% owned entities Action Manufacturing - JV* Associates 4.3 Group Total *AMLP Joint Venture 50% NPBT ** Operating cashflow includes the sale and purchase of rental assets 21

22 Divisional EBIT margin Full Year FY15 FY14 Var THL Rentals New Zealand 13.6% 8.5% 5.1% Australia 9.2% 5.3% 3.9% USA 17.6% 17.1% 0.5% 13.2% 9.3% 3.9% Tourism Group 25.6% 25.1% 0.5% Total EBIT Margin 13.6% 10.0% 3.6% 22

23 EBITDA Full Year 6 Months to June 6 Months to December $M FY15 FY14 Var Var % FY15 FY14 Var Var % FY15 FY14 Var Var % EBIT % % % Add back non-cash Items: Amortisation (5%) Depreciation (4.2) (1.6) (2.6) (15%) EBITDA % % % 23

24 Balance Sheet As at As at $M June 15 June 14 Var Dec 14 Dec 13 Var Equity Non current liabilities Current liabilities (20.4) Total source of funds (11.5) Intangible assets and goodwill (0.0) (1.4) Investments in associates Non current assets Current assets (16.6) Total use of funds (11.5) Net debt position (9.4) (12.2) Net tangible assets NTA per share $ 1.34 $ 1.24 $ 1.23 $ 1.22 Book value of net assets per share $ 1.53 $ 1.43 $ 1.42 $ 1.42 Debt / debt + equity ratio (net of Intangibles) 31% 36% 38% 42% Equity ratio (net of Intangibles) 51% 51% 49% 46% AUD exchange rate at period end USD exchange rate at period end

25 Funds employed As At $M June 15 June 14 Var Rentals New Zealand (1%) Australia (10%) USA % % Tourism Group (14%) Joint venture (28%) Associates 4.3 Other unallocated (35%) Total net funds employed % 25

26 Return on funds employed Full Year FY15 FY14 Var Rentals New Zealand 11.2% 6.7% 4.5% Australia 11.6% 6.3% 5.3% USA 20.1% 25.4% -5.2% 13.2% 9.4% 3.8% Tourism Group 34.6% 25.4% 9.2% Total Return on Funds Employed 13.3% 9.6% 3.7% 26

27 Gain on fleet vehicle sales and gross profit Full Year $M FY15 FY14 Var Var % Gain on sales of motorhome fleet before selling costs % Vehicle sales costs ($M) % Gain on sales of motorhome fleet after selling costs % Gross profit on non-fleet vehicle and accessory sales % Reported gross profit % Average gain on sale ($000) incl selling costs % Fleet motorhomes sold AU (9) NZ (34) US Total fleet motorhomes sold (units) 1,213 1,256 (43) Fleet motorhomes at period end AU 1,297 1,336 (39) NZ 1,787 1,903 (116) US ,697 3,776 (79) Work in progress vehicles - NZ Total fleet motorhomes 3,853 3,876 (23) 27

28 Local currency movement Revenue Costs EBIT Revenue Costs EBIT Rentals Australia (5%) 9% 65% (3%) 6% 70% Rentals USA 13% (13%) 17% 7% (5%) 18% In local currency Australian revenue down 3% Australian costs down 6% US revenue up 7% US costs up 5% 28