Tourism Holdings forecasts first-half loss on merger costs

Wednesday 28th November 2012

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 accounting treatment of its US fleet.

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

BusinessDesk.co.nz

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