THL - Tourism Holdings

[winner69]

Not much love for thl these days as share price sitsxatv318

About the same as when they announced Apollo merger

I hear there’s a tourism boom underway

Reminds of the joke of many years ago in that the thl share price is negatively correlated to number of tourists ……might be going back to that trend

[Southern Lad]

Yesterday a Substantial Product Holder notice was filled by the Trouchet Family detailing the sale of nearly 2 million shares on 20 March. The Trouchet’s were the founders of Apollo and received 28.7 million THL shares as part of the merger. The agreed escrow restrictions were that they had to keep 90% of shares until 30 November 2023 and 50% of the shares until 30 November 2024 (unless THL agreed to waive). With a sell down now having commenced, there is a significant overhang of shares which will undermine the THL share price until the sell down is completed (noting it will take time given the 50% restriction until 30 November 2024) or there is some explicit statement from the Trouchet’s that they are committed long term holders for their remaining shareholding.

[winner69]

From the WSJ an American view. Winnebago sales problem seem to be a bit like thl’s -

Good morning, CFOs. Winnebago Industries is facing a challenge with its financial forecasting, telling investors that, in a historically cyclical industry, its plummeting sales are likely temporary—but, in a shaky economy, it isn’t sure when they will fully recover.

Winnebago, best known for making motor homes and camper vans, benefited from a surge in consumer spending on outdoor activities during the early days of the pandemic. But sales to retailers plummeted as concerns about Covid-19 waned and people spent more money on air travel and hotels. High interest rates have also made purchases unaffordable for some buyers. During the quarter ended Feb. 24, net revenue at the company fell 19% from a year earlier, to $703.6 million.

Recreational-vehicle sales typically rise and fall with the economy. Winnebago’s business model is built to weather such downturns, even after RV shipments to retailers sank to the lowest point since 2012. Roughly 85% of the company’s costs are variable, meaning they can be quickly cut, Chief Financial Officer Bryan Hughes said. Over the past year, Winnebago cut its expenses by operating its production lines fewer than five days a week.

[Ricky-bobby]

So if sales slow do they keep these new units flowing into the rental fleet to keep that fresh? Demand for rentals still seems to be strong.

[winner69]

thl share price languishing under $3

About the same as when the Apollo merger was announced

What’s happened in meantime.