PRESS
RELEASE
Paris, 13th September 2018 - 17:45
YOUR OPERATIONAL LEASING SOLUTION
RESULTS - FIRST
HALF OF 2018
-
Strong improvement of net income Group
share
-
Current operating income of € 4.3 million, up
24%
-
€ 12.8 million EBITDA, stable compared to the
first half of 2017
-
Decrease in revenues[1], -6% at
constant exchange rates and perimeter, without impact on Group's
profitability
-
Strengthened balance sheet, Gearing ratio at
1.32x and Loan to Value ratio at 53%
-
Launch of a change management following the
refocusing on transportation equipment leasing businesses
|
"Following the sale of the
European and US modular buildings activities in December 2017,
priority has been given to improving the profitability of the
transportation equipment leasing business, refinancing and
developing the asset management for third parties, based on the
Group's fundamentals: our tangible asset base, our global footprint
and our long-standing trusted relationships with our customers. "
state Fabrice and Raphael Walewski, managing partners of TOUAX
SCA.
"During the first half of 2018, we
implemented the first steps of our strategic refocusing action plan
around transportation activities. We launched a Change Management
program, including the design of a new organization for the Freight
Railcar business to continually improve the quality of our service
and customer satisfaction. We have completed 110 million euros in
asset financing, syndicated 14 million euros of assets to investors
and developed third-party management with the signing of an
investment agreement of 80 million dollars.
This refocusing allowed us, as at
June 30, 2018, to record a strong improvement in net income Group
share and strengthen our balance sheet. "
The consolidated
financial statements at June 30, 2018 were approved by the
Management Board on September 12, 2018 and submitted to the
Supervisory Board today. They have been subject to limited review
by the Statutory Auditors. Their report is in progress.
REVENUES
ANALYSIS
Revenues (in thousand of euros) |
Q1 2018 |
Q2 2018 |
H1 2018 |
Q1 2017 |
Q2 2017 |
H1 2017 |
Lease
revenues (*) |
32,465 |
32,700 |
65,165 |
38,498 |
37,820 |
76,318 |
Sales
of Equipment |
3,557 |
4,728 |
8,285 |
3,424 |
3,427 |
6,851 |
Syndication Fees and
Capital gain |
323 |
654 |
978 |
80 |
1,049 |
1,129 |
Total Revenues |
36,346 |
38,082 |
74,429 |
42,002 |
42,297 |
84,298 |
(*) Lease revenues include ancillary
services |
Consolidated revenues for the
first half of 2018 amounted to € 74.4 million, compared to € 84.3
million for the same period in 2017. On a like-for-like basis,
revenue was down 6%. This decrease concerns the lease revenue of
equipment owned by investors and has no significant impact on the
Group's profitability.
Lease revenue increased from 76.3
million in the first half of 2017 to 65.2 million over the same
period in 2018, -9% at constant scope and exchange rates. This
change is mainly due to the Containers division, whose fleet has
decreased compared to the previous year.
Equipment sales rose by 21%,
reaching 8.3 million euros at June 30, 2018.
Syndication fees were stable (-0.1
million) at 1 million euros over the period.
Segmentation
analysis
Revenues (in thousand of euros) |
Q1 2018 |
Q2 2018 |
H1 2018 |
Q1 2017 |
Q2 2017 |
H1 2017 |
Lease revenues (1) |
12,775 |
12,660 |
25,435 |
11,929 |
12,826 |
24,755 |
Sales of Equipment |
100 |
789 |
889 |
598 |
982 |
1,580 |
Syndication fees |
|
662 |
662 |
|
1,050 |
1,050 |
Freight Railcars |
12,875 |
14,111 |
26,986 |
12,527 |
14,858 |
27,385 |
Lease revenues (1) |
3,029 |
2,798 |
5,827 |
3,699 |
3,560 |
7,259 |
Sales of Equipment |
1,020 |
|
1,020 |
6 |
111 |
117 |
River Barges |
4,049 |
2,798 |
6,847 |
3,705 |
3,671 |
7,376 |
Lease revenues (1) |
16,329 |
17,111 |
33,441 |
22,824 |
21,572 |
44,396 |
Sales of Equipment |
1,746 |
2,062 |
3,808 |
1,833 |
1,681 |
3,514 |
Syndication fees |
309 |
5 |
314 |
76 |
(1) |
75 |
Containers |
18,385 |
19,178 |
37,563 |
24,734 |
23,251 |
47,985 |
Lease revenues (1) |
331 |
130 |
461 |
45 |
(137) |
(92) |
Sales of Equipment |
692 |
1,877 |
2,568 |
987 |
653 |
1,639 |
Capital gain (loss) on disposals |
14 |
(12) |
2 |
4 |
|
4 |
Others |
1,037 |
1,994 |
3,032 |
1,036 |
517 |
1,552 |
|
|
|
|
|
|
|
Lease
revenues (1) |
32,465 |
32,700 |
65,165 |
38,498 |
37,820 |
76,318 |
Sales
of Equipment |
3,557 |
4,728 |
8,285 |
3,424 |
3,427 |
6,851 |
Syndication Fees and
Capital gain (loss) on disposals |
323 |
654 |
978 |
80 |
1,049 |
1,129 |
Total Revenues |
36,346 |
38,082 |
74,429 |
42,002 |
42,297 |
84,298 |
(1) Lease revenues include ancillary
services |
Rental revenue increased by € 0.7
million to € 25.4 million in June 2018, thanks to the start of a
recovery in rental rates and the increase in the utilization rate.
The latter averaged 84.2% in the first half of 2018, while it stood
at 80.3% a year earlier. These increases underline the operational
improvement of the Freight Railcars division.
-
Revenues of the River
Barges division amounted to € 6.8 million, down 7.2% compared
to € 7.4 million in the first half of 2017. Barges sales partly
offset declines in chartering revenue in Europe and leasing
activity in South America.
-
The Containers Division's
revenues amounted to 37.6 million euros at the end of June 2018,
down 21.7% compared to 48 million euros in the first half of 2017,
explained by the evolution of the leasing revenues, down 11 million
due to the decline in the USD and fleet volume in management
(-42,857 CEU[2]) while the
average utilization rate is up: 98.9% in the first half of 2018
compared to 97.2% a year earlier.
-
The retained sales activity of modular buildings
in Africa presented in "miscellaneous" rose by 0.9 million euros in
the first half of 2018.
H1 RESULTS
ANALYSIS
Key Figures (in thousand of euros) |
06/2018 |
06/2017 |
12/2017 |
Revenues |
74.4 |
84.3 |
169.7 |
Freight railcars |
27.0 |
27.4 |
57.0 |
River
Barges |
6.8 |
7.4 |
14.6 |
Containers |
37.6 |
48.0 |
87.6 |
Others |
3.0 |
1.6 |
10.6 |
Gross
operating margin - EBITDAR (1) |
40.3 |
42.8 |
88.7 |
EBITDA
(2) |
12.8 |
13.0 |
26.9 |
Current
operating income |
4.3 |
3.4 |
7.6 |
Operating
Income |
4.0 |
5.3 |
0.9 |
Profit
before tax |
-0.5 |
0.3 |
-8.5 |
Consolidated net profit (loss) (Group's share) |
-1.8 |
-13.9 |
-18.0 |
Including
income from retained operations |
-1.8 |
-0.1 |
-5.4 |
Including
income from discontinued operations |
|
-13.8 |
-12.7 |
Net
earnings per share (€) |
-0.25 |
-1.99 |
-2.58 |
Total non current assets |
304.5 |
323.2 |
307.8 |
Total
Assets |
408.9 |
628.7 |
398.2 |
Total
shareholders' equity |
135.1 |
150.8 |
136.7 |
Net
Financial Debt (3) |
178.7 |
193.2 |
181.1 |
Operating
cash flow of the retained operations |
10.4 |
33.4 |
22.6 |
Loan to Value |
53 % |
57 % |
54 % |
(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 €156.5 million in
debt without recourse at 30 June 2018
EBITDA
reached 12.8 million euros at June 30, 2018, stable compared to 13
million euros recorded a year earlier.
The Freight Railcars business is
the Group's leading contributor to EBITDA, with a majority of
assets owned, while the contribution of the container division is
low due to the preponderance of assets managed on behalf of third
parties.
EBITDA for the Freight Railcars
(+1 million euros) and Containers (+0.5 million euros) divisions
improved thanks to the improvement in equipment profitability over
the period.
Excluding non-recurring income
relating to the resolution of a dispute in South America (€ 1.1
million) in the first half of 2017, the EBITDA of the River Barges
business is stable.
EBITDA from other activities was
down 0.5 million euros, impacted by general expenses previously
allocated to the modular buildings division divested in December
2017, partially offset by the improvement in the residual activity
of modular buildings in Africa.
-
Recurring operating income[3]
amounted to € 4.3 million, up 24%. This increase is attributable to
an operational increase in leasing activities combined with higher
sales margins.
-
Net income Group share for the first half of
2018 was -1.8 million euros compared to -13.9 million euros a year
earlier (of which -13.8 million euros related to discontinued
operations).
After restatement of non-recurring
items in the first half of 2017 and scope effects, the improvement
in the operating profitability of the leasing activities of
transport equipment and the residual activity of modular buildings
in Africa is confirmed.
FINANCIAL
STRUCTURE
-
The balance sheet shows a total of 409 million
euros at June 30, 2018, compared with 398 million euros at December
31, 2017 and 629 million euros at June 30, 2017.
-
Tangible assets amount to 318 million
euros.
-
Cash flow from operations amounted to € 10.4
million.
-
The financial structure is reinforced with a
gross financial debt of 212.5 million euros, stable (+1 million
euros) compared to the end of December 2017, out of which 74 %
without recourse. The Group's net debt amounted to 179 million
euros.
-
The Group improves its credit profile as of June
30, 2018, with Gearing and Loan to Value ratios of 1.32x and 53%
respectively.
Financings
-
At the end of May 2018, the Group refinanced
some of its railcars and containers asset debt up to 110 million
euros with its core asset financing banks but also with new
international banking partners, thus expanding its pool.
These financings make it possible
to extend the maturity of the Group's debts and resume
investments.
-
Post-closing, on July 31, 2018, Touax SCA
completed a "senior unsecured" bond issue in Euro PP format for a
nominal amount of € 16.6 million with a maturity date of July 31,
2023.
The issue of the Bonds is intended
to extend the average maturity of the Group's debt.
The net proceeds of the issue will
thus be partly used to refinance the bonds maturing on October 2,
2018; the balance being allocated to the general needs of the
Group.
OUTLOOK
The underlying markets for the
leasing of transportation equipment remain positive.
Freight Railcars leasing in Europe
is benefiting from improved economic conditions and the recovery of
private sector demand following the liberalization of Rail
Freight.
The River transport market in
Europe is driven by the increase in construction and transport of
cereals and biomass leading to demand for River Barges.
The global growth of containerized
trade forecast at 5% in 2019 (Clarkson, August 2018) is favorable
for the leasing of containers.
The Group is continuing its focus
on improving its profitability, through increased utilization rates
and rental rates, is gradually increasing investments for its own
account, and is developing asset management for third parties.
TOUAX confirms an improvement in
its results for the whole of 2018.
NEXT
APPOINTMENTS
-
- September 13, 2018: SFAF meeting to present
the 2018 half-year financial statements
-
- September 14, 2018: Half-yearly results
conference call
-
- November 15, 2018: Third Quarter 2018
Revenues
TOUAX
Group leases out tangible assets (freight railcars, river barges
and containers) on a daily basis throughout the world, for its own
account and on behalf of third party investors. With €1.2 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 on the CAC® Small and CAC® Mid & Small
indexes and in EnterNext PEA-PME 150.
For
more information: www.touax.com
Contacts:
TOUAX
ACTIFIN
Fabrice & Raphaël
WALEWSKI
Ghislaine Gasparetto
touax@touax.com
ggasparetto@actifin.fr
www.touax.com
Tel : +33 1 56 88 11 11
Tel :
+33 1 46 96 18 00
[1] IFRS 15 "Revenue from Contracts with Customers" came into
effect on 1 January 2018.
The application of this standard concerns
presentation elements that have no impact on margins.
It results in a requirement to present Fees on
syndications and sales of used equipment belonging to investors in
Revenues.
2017 figures have been restated according to
IFRS15 - cf Condensed Consolidated Half-Year Financial
Statements
[2] CEU : Cost Equivalent Unit
[3] NB: change in estimation of the useful life of railcars
harmonized to 36 years and capitalization of revising railcars'
spare parts for a better comparison with our peers (prospective
change; H1 2017 impact estimated to 2 million euros)
TOUAX : RESULTS - FIRST HALF OF
2018
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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