Outgoing Ardent Leisure chairman Neil Balnaves has defended the timing of the theme park owner's annual meeting and the award of a near $843,000 bonus to CEO Deborah Thomas in the wake of the Dreamworld tragedy.
"Any bonus Ms Thomas has relates to the prior year," Mr Balnaves said in a press conference after the AGM in Sydney.
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Dreamworld staff 'shattered'
Ardent board members front the media after the deaths of four people at the company's Gold Coast theme park.
"The tragedy is only 48 hours old. It is just inappropriate to talk about commercial matters at this time."
Mr Balnaves also said that theme park earnings will take a substantial hit in the current financial year following the accident that killed four people at Dreamworld on Tuesday
"I must admit it hasn't been the most urgent priority, it's dealing with the death of four people that's occupied most of the time," Mr Balnaves said.
However Mr Balnaves said the financial impact would not be long-term.
"It will have a material effect on Dreamworld's result in the second half, there's no doubt about that. And there will be a continuing effect, I would expect, through the next financial year, but it will diminish as time goes by."
Ms Thomas, who took on the top job in March last year, late Thursday decided to donate her $167,500 cash bonus to charity.
Earlier she had said it was not the right time for the board to be discussing executive remuneration and bonuses.
"We are all shattered by this... I don't want to discuss transactions at this point. I don't think it's appropriate under the circumstances," she said.
Mr Balnaves said he appreciated that the meeting did not "turn into an argument about cash".
"This is all about grief, it's all about dealing with something that's shattering to everybody," he said.
Votes on the issue of performance rights worth almost $843,000 to Ms Thomas and the re-election of directors passed, however the chairman denied one shareholder's request that votes be re-run because they had been collected on Tuesday morning, before the accident.
Mr Balnaves said it would be "nigh impossible" to re-run those votes because under law the company would be unable to operate.
Mr Balnaves also said the horrific accident wouldn't impact the company's expansion into the US under its Main Event branding.
He said funding for the expansion would mostly come from the sale of the Ardent's gym and marina businesses rather than its theme park revenue.
Mr Balnaves said he would still be retiring as previously announced, but promised he wouldn't just "disappear" and would be available to consult the board as it deals with the accident.
"I will be in touch and available to the board," he said.
Ms Thomas warned in her speech the fatal accident at Dreamworld theme park will have a significant impact on the company's earnings this year.
"Revenue lost as a result of this tragic event will have a significant impact on EBITDA (earnings before interest, tax, depreciation and amortisation) for the remainder of the year, due to the high level of fixed costs required to operate the business," Ms Thomas said.
So far in the 2016/17 financial year, Ardent's Gold Coast theme parks - Dreamworld and neighbouring WhiteWater World - have already made about 34 per cent of the total revenue recorded by the parks last financial year, Ms Thomas said.
Dreamworld will reopen on Friday to hold a memorial for the people who died on Tuesday: Luke Dorsett, 35, and Kate Goodchild, 32, Roozi Araghi, 38, and Sydney mother Cindy Low, 42.
The theme park operator issued a statement on Thursday reassuring the public that safety was its priority. "Prior to Tuesday, there has never been a death at the park due to a ride incident, despite Dreamworld hosting more than 30 million visitors since it opened in 1981," it said.
Warnings over revenue
Ms Thomas said it was too early to say exactly how the deaths would impact the company's earnings.
On the day of the accident, about 34 per cent of total revenue generated by the company's theme parks in 2015/16 had already been earned for the current financial year started in July 1, she said.
"However, revenue lost as a result of this tragic event will have a significant impact on EBITDA [operating earnings] for the remainder of the year, due to the high level of fixed costs required to operate the business."
"It is not possible for me to provide any further guidance at this time, however we will provide regular updates to the market," she said.
In his address, outgoing chairman Neil Balnaves said it was unfortunate the AGM could not be delayed in the wake of this week's tragedy - but it was "a statutory meeting, and in accordance with the constitution of the company we are required to convene the meeting as planned".
'We are shattered'
Ms Thomas expressed "deepest and most heartfelt condolences" on behalf of the company to the families and friends of the four people who died on the Thunder River Rapids ride.
"Our thoughts and prayers are with them, particularly their children," she told shareholders. Her statement had been released to the stock exchange before the overcrowded meeting started.
"As the incident is the subject of a coronial investigation, there is very little I can say at the present time, except that we are fully co‐operating and working closely with authorities to establish exactly how this has happened.
"I understand the intense interest in this catastrophic event and appreciate there are many questions to be answered. But I ask for your patience as we work with those authorities to first establish the facts."
Mr Balnaves said the company would do "everything" to support the grieving families.
A reporter who had been in contact with Karen Dorsett, mother of two of the victims, said the family was angry that no one from Ardent had contacted them directly.
Ms Thomas, told that Mrs Dorsett was watching the press conference, addressed the family.
"I would like to say to Mrs Dorsett my sincere sympathies for what you must be going through, and on behalf of the staff and management at Ardent and Dreamworld, that our hearts and our thoughts and prayers are with you and your family at this difficult time," she said.
"I will be calling you to see what assistance we can offer you."
Support offered to all staff
Ardent said reopening the theme park, just days after the deaths on Tuesday, would help staff dealing with a difficult situation.
"That has been a subject with a lot of deliberation over the last 24 hours," Mr Balnaves told reporters.
"After discussion with counsellors and a lot to do with the issues of people grieving, the decision was taken to turn tomorrow (Friday) into a fundraising event to support the Red Cross."
All admission fees will be donated to the charity.
"It is better that people get back to work and basically get together with their comrades and talk and deal with this issue rather than ... sitting at home in isolation," Mr Balnaves said.
"It's driven by the utmost respect for the families and the deaths."
The theme park will open for normal business on Saturday.
However, the Thunder River Rapids Ride where the four died will be closed at least until the end of the coronial inquiry.
Ardent has sought legal advice, although its executives stress it is aware of its responsibilities.
It also has "adequate" insurance in place.
- with AAP
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