PRESS RELEASE - Paris, 31 August 2017 - 6
p.m.
TOUAX
YOUR OPERATIONAL LEASING SOLUTION
REVENUE AND
RESULTS FOR S1 2017[1]
-
Sale of European and American modular buildings
activities
-
Increase in revenues, EBITDA and operating cash
flows
-
Rise in operating profit at €5.3 million
-
A breakeven net result for the retained
operations
|
The consolidated
accounts on 30 June 2017 were approved by the Management Board on
30 August 2017 and submitted to the Supervisory Board. A limited
inspection of the financial statements was carried out by the
statutory auditors. Their report is being issued.
The Group announced the intended
sale of its European and American modular buildings activities. The
share purchase agreement of the European activities was signed on 4
August 2017 with an expecting closing during the last quarter of
2017. Sale of these activities are presented in accordance with
IFRS 5 on a separate line as discontinued operations. The
comparative financial statements therefore only detail the
continuing operations.
S1 2017 net result amounted to
-€13.9 million, of which -€13.8 million was related to discontinued
operations.
The retained operations show a
breakeven net income (-€72,000). The retained transportation
equipment leasing and sale businesses are positive while the
remaining modular building sales business in Africa improved but
remained negative in S1 2017.
Discontinued operations recorded a
loss of €13.8 million, approximately half of which is explained by
the operating profit of the activity and the other half by
exceptional items including an income from disposal close to
breakeven with a loss of €1.4 million.
REVENUE
ANALYSIS
Revenue by
type
( € thousands) |
Q1 2017 |
Q2 2017 |
TOTAL
S1 2017 |
Q1 2016 |
Q2 2016 |
TOTAL
S1 2016 |
Leasing revenue (1) |
38,498 |
37,820 |
76,318 |
36,130 |
35,202 |
71,332 |
Sales of equipment |
15,070 |
31,123 |
46,193 |
22,538 |
17,623 |
40,161 |
Including sales
to clients |
8,947 |
8,324 |
17,271 |
12,622 |
13,921 |
26,543 |
Including sales to investors |
6,123 |
22,799 |
28,922 |
9,916 |
3,702 |
13,618 |
Consolidated revenue |
53,568 |
68,943 |
122,511 |
58,668 |
52,825 |
111,493 |
(1) Leasing revenue includes ancillary
services.
Consolidated revenue for the
1st half of 2017
from retained businesses increased by 9.9% to €122.5 million,
mainly due to a cumulative increase in sales and leasing
businesses. At constant scope and exchange rates, revenues were up
1.9%.
Leasing revenues increased by 7%
to €76.3 million due to an increase in Freight Railcars and River
Barges revenues. The decline in the Shipping Containers revenue was
due to both lower leasing rates in 2016 and a decrease in the fleet
with the disposal of used containers in 2016. However, the
utilisation rate for the Shipping Container business increased very
significantly to reach 97.5% at the end of June. Growth in the
Freight Railcars business was most notably due to the acquisition
by TOUAX of a controlling interest in the asset company owning a
fleet of 2,000 railcars purchased at the end of 2015. At constant
scope and exchange rates, leasing revenues were down 4.2% mainly
due to the decline in the container fleet.
Equipment sales increased by 15%
to €46.2 million. Sales to customers fell by 34.9%, due to
significant container sales in 2016, as fewer used containers were
available for sale in S1 2017 within a context of a recovering
leasing market. Sales to investors increased by 112.4% with the
syndication of railcars to a Luxembourg investment company.
Analysis of the
contribution of the 3 Group's divisions
Revenue by
division
(€ thousands) |
Q1 2017 |
Q2 2017 |
TOTAL
S1 2017 |
Q1 2016 |
Q2 2016 |
TOTAL
S1 2016 |
Leasing revenue (1) |
11,929 |
12,826 |
24,755 |
23,828 |
23,132 |
46,960 |
ales of equipment |
598 |
24,038 |
24,636 |
19,429 |
13,725 |
33,154 |
Including sales
to clients |
434 |
1,139 |
1,573 |
9,513 |
10,023 |
19,536 |
Including sales
to investors |
164 |
22,899 |
23,063 |
9,916 |
3,702 |
13,618 |
Freight Railcars |
12 527 |
36 864 |
49 391 |
43,257 |
36,857 |
80,114 |
Leasing revenue (1) |
3,699 |
3,560 |
7,259 |
17,451 |
18,996 |
36,447 |
Sales of equipment |
6 |
111 |
117 |
13,751 |
13,756 |
27,507 |
Including sales
to clients |
6 |
111 |
117 |
13,751 |
13,756 |
27,507 |
River barges |
3,705 |
3,671 |
7,376 |
31,202 |
32,752 |
63,954 |
Leasing revenue (1) |
22,824 |
21,572 |
44,396 |
9,102 |
9,191 |
18,293 |
Sales of equipment and misc. |
13,480 |
6,320 |
19,800 |
178 |
2,334 |
2,512 |
Including sales
to clients |
7,520 |
6,420 |
13,940 |
178 |
2,334 |
2,512 |
Including sales
to investors |
5,960 |
-100 |
5,860 |
|
|
|
Shipping containers |
36,304 |
27,892 |
64,196 |
9,280 |
11,525 |
20,805 |
Leasing revenue (1) |
45 |
-137 |
-92 |
111 |
111 |
222 |
Sales of equipment |
987 |
653 |
1,640 |
2,013 |
1,547 |
3,560 |
Including sales
to clients |
987 |
653 |
1,640 |
2,013 |
1,547 |
3,560 |
Miscellaneous and unallocated |
1,032 |
516 |
1,548 |
2,124 |
1,658 |
3,782 |
|
|
|
|
|
|
|
Consolidated revenue |
53,568 |
68,943 |
122,511 |
58,668 |
52,825 |
111,493 |
(1) Leasing revenue includes ancillary
services.
Freight
Railcars: The Freight Railcars business is the activity in
which the Group has made the most owned investment. Revenues for
the Freight Railcars division increased by 137.4% from €20.8
million in June 2016 to €49.4 million at the end of June 2017,
mainly due to higher leasing revenues and a syndication to
investors. Leasing revenues increased by €6.5 million (or +35.3%)
to €24.8 million in June 2017 due to the full consolidation of an
asset-holding subsidiary. The utilisation rate at the end of June
rose in a moderately growing market.
River Barges:
Revenues from the River Barges division amounted to €7.4 million,
up 8.6%, with an increased chartering activity on the Rhine.
Shipping
containers: The Shipping Containers business consists mainly of
assets managed on behalf of third parties. Revenues from the
Shipping Containers division fell to €64.2 million, mainly due to
lower sales of used equipment. Leasing revenues fell to €44.4
million at the end of June 2017, or -5.5%. At constant exchange
rates, it decreased by 8.3%. This fall is explained by fewer sales
of used containers within a context of a recovering leasing market
context compared to 2016 and by a declining fleet with limited new
investments. The utilisation rate increased to 97.5% as at 30 June
2017.
The retained activity of modular
buildings sale in Africa, grouped together in the miscellaneous
line, decreased but commercial activity was up sharply during the
1st half-year
2017 and will generate a clear improvement in revenues during the
second half-year.
ANALYSIS OF
HALF-YEAR RESULTS
Main
figures |
30/06/2017 |
30/06/2016 |
12/2016 |
(in € million - IFRS) |
|
adjusted |
published |
adjusted |
published |
Revenue |
122.5 |
111.5 |
171.5 |
232.7 |
362.9 |
including
Freight railcars |
49.4 |
20.8 |
20.8 |
48.9 |
48.8 |
River barges |
7.4 |
6.8 |
6.8 |
13.9 |
13.9 |
Shipping containers |
64.2 |
80.1 |
80.1 |
162.9 |
162.9 |
Miscellaneous and unallocated |
1.5 |
3.8 |
63.8 |
7.0 |
137.3 |
Gross
operating margin - EBITDAR (1) |
42.8 |
40.6 |
51.5 |
81.1 |
102.5 |
EBITDA
(2) |
13.0 |
11.2 |
21.9 |
23.2 |
44.1 |
Operating
income |
5.3 |
2.8 |
3.9 |
3.1 |
4.4 |
Profit
before tax |
0.3 |
-1.1 |
-3.4 |
-5.6 |
-11.2 |
Consolidated net profit (loss) (Group's share) |
-13.9 |
-4.4 |
-4.4 |
-11.6 |
-11.6 |
Including
income from retained operations |
-0.1 |
-1.3 |
|
-3.9 |
|
Including
income from discontinued operations |
-13.8 |
-3.1 |
|
-7.7 |
|
Net earnings per share (€) |
-1.99 |
-0.74 |
-0.74 |
-1.82 |
-1.82 |
Total
non-current assets |
323.2 |
512.4 |
512.4 |
503.9 |
503.9 |
Total
assets |
628.7 |
642.6 |
642.6 |
633.3 |
633.3 |
Total
shareholders' equity |
150.8 |
154.7 |
154.7 |
156.8 |
156.7 |
Net bank
borrowing (3) |
193.2 |
367.6 |
367.6 |
336.8 |
336.8 |
Operating
cash flow of the retained operations |
33.4 |
13.2 |
-7.3 |
15.4 |
30.2 |
Loan to Value |
57 % |
|
63 % |
|
60 % |
(1) The EBITDAR (earnings before
interest taxes depreciation and amortization and rent) calculated
by the Group corresponds to the current operating income. increased
by depreciation charges and provisions for capital assets and
distributions to investors
(2) EBITDA: EBITDAR after deducting distributions to
investors
(3) Including €171 million in debt without recourse at 30 June
2017
The EBITDA of the retained
operations reached €13 million, up 15.9%.
This rise is mainly due to the
improved Freight Railcar business with the full integration of an
asset company and the increase in the syndication volume.
Operating income is positive at
€5.3 million compared with €2.8 million at the end of June 2016 in
line with the increased EBITDA.
First half-year net result
amounted to -€13.9 million, including -€13.8 million for
discontinued operations. The retained transportation equipment
leasing and sale businesses are positive while the remaining
modular building sales business in Africa improved but remained
negative in S1 2017.
The Group manages transportation
assets worth 1.3 billion. Owned assets represented 31% of total
assets managed.
FINANCIAL
STRATEGY
Cash flow from operating
activities rose sharply to €33.4 million, mainly driven by growth
in leasing activity and railcar syndication.
Until the sale of the European and
American Modular Buildings activities, the Group will continue to
implement its strategy of increasing cash flows from operating
activities with a stabilisation of its own assets, growth in assets
under management on behalf of third parties and improved
utilisation rates.
After the sale, TOUAX will benefit
from an increased financial capacity. The financial strategy will
therefore be to grow the Group's owned and managed assets, the
Group's profitability and EBITDA while maintaining a stronger
financial structure.
The Group's net indebtedness
decreased to €193.2 million compared to €367.6 million at the end
of June 2016 with the IFRS 5 classification of the discontinued
operations. Debt is expected to decline in 2017 with the sale of
modular buildings activities. The decrease in indebtedness to
€193.2 million includes a €132.7 million decrease related to the
IFRS 5 classification of the discontinued operations but does not
include the total effect of the sale which will be recorded at the
effective closing of the operation.
OUTLOOK
The Freight
Railcars business in Europe should continue to benefit from the
improving European economy along with the rise in utilisation
rate.
The River
Barges business continues to experience a
difficult economic context in South America, but has improved in
Europe.
The Shipping
Containers business is benefiting from a worldwide shortage of
containers with utilisation rates rising since the beginning of
2017. This situation creates a need for investment and an expected
growth of the fleet. The context is again favourable for TOUAX
which envisages a return to investments as soon as the sale of the
European and American modular buildings leasing and sales activity
is completed.
Losses in the modular buildings
business in Europe, particularly in France as well as in the United
States, will cease with the respective sales of these
businesses.
TOUAX confirms an operating profit
for the year 2017.
UPCOMING
DATES
TOUAX
Group leases out tangible assets (freight railcars, river barges
and shipping-containers) on a daily basis throughout the world, for
its own account and on behalf of third party investors. With close
to €1.3 billion under management, TOUAX is one of the European
leaders in the operational leasing of this type of equipment.
TOUAX
is listed in Paris on EURONEXT - Euronext Paris Compartment C (Code
ISIN FR0000033003) and belongs to the CAC® Small and CAC® Mid &
Small indexes and EnterNext©PEA-PME.
For
more information: www.touax.com
Contacts:
TOUAX
Fabrice & Raphaël Walewski
Managing partners
touax@touax.com
Tel: +33 (0)1 46 96 18 00
ACTIFIN
Ghislaine GASPARETTO
ggasparetto@actifin.fr
Tel: +33 (0)1 55 88 11 11
[1] In
accordance with IFRS 5, European and US Modular Buildings
activities are presented as discontinuing operations. In practice,
revenues and expenses have been treated as follows:
-
The contribution to each line of the TOUAX
consolidated income statement is grouped under "Net income from
discontinuing operations" over the periods presented;
-
In accordance with IFRS 5, these restatements
are applied to all periods presented in order to make the
information consistent.
In addition, the assets and
liabilities of discontinuing operations are grouped together under
a single line of assets and liabilities for the period ended 30
June 2017.
TOUAX- 2017 half year revenue and
results
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: TOUAX via Globenewswire
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