PRESS
RELEASE
Paris, 28 March 2019 - 5.45 p.m.
YOUR OPERATIONAL LEASING SOLUTION
2018
RESULTS
-
Net operating income increases to €8.1 million,
from €0.9 million in 2017
-
€126 million refinanced or raised
-
Refocusing on long-term transport equipment
leasing businesses: solid base of tangible assets, with net book
value of €322 million and a fair market value of €401 million
-
Loan-to-value ratio of 52%
|
"In 2018, we embarked on a
strategic refocusing drive centred on our three historical
transport equipment leasing businesses, taking advantage of the
Group's fundamental strengths: our tangible asset base, recurrent
leasing revenues, international reach and trust-based relationships
with customers." commented Fabrice and Raphael Walewski, TOUAX
SCA's managing partners.
"Last year, we implemented the
first stages in our action plan to improve Group profitability. We
launched a Continuous Improvement Program (CIP) and a new
organisation for our Freight Railcars business to continuously
improve the quality of our services and customer satisfaction. We
raised €110 million in asset financing, issued a €16.6 million Euro
Private Placement, syndicated €24 million in assets to third-party
investors and signed an $80 million investment agreement with an
infrastructure fund.
These efforts, among others,
enabled us to raise the Group's share of net profit and strengthen
our balance sheet in 2018. Net book value per share stands at
€7.8[1] and, based
on the fair market value of our assets, revalued NAV[2] per share
comes to €12.711."
In light of its decision to
refocus the business model on the long-term leasing of tangible
transport assets, Touax will henceforth announce its revalued NAV
per share on an annual basis, when it presents full-year
earnings.
The consolidated
accounts were approved by the Management Partners on 27 March 2019
and were submitted to the Supervisory Board. The audit procedures on the
consolidated accounts have been completed. The audit reports are in
the process of being issued.
Key
Figures
Key Figures (in thousand of euros) |
2018 |
2017 |
Revenue from activities |
154.5 |
169.7 |
Freight railcars |
56.3 |
57.0 |
River
Barges |
14.5 |
14.6 |
Containers |
76.4 |
87.6 |
Others |
7.3 |
10.6 |
Gross
operating margin - EBITDAR (1) |
83.1 |
88.7 |
EBITDA
(2) |
25.7 |
26.9 |
Current
operating income |
8.0 |
7.6 |
Operating
Income |
8.1 |
0.9 |
Profit
before tax |
-2.1 |
-8.5 |
Consolidated net profit (loss) (Group's share) |
-4.2 |
-18.0 |
Including
income from retained operations |
-3.2 |
-5.4 |
Including
income from discontinued operations |
-1.0 |
-12.7 |
Net
earnings per share (€) |
-0.59 |
-2.58 |
Total non current assets |
307.6 |
307.8 |
Total
Assets |
439.4 |
398.2 |
Total
shareholders' equity |
129.1 |
136.7 |
Net
Financial Debt (3) |
195.5 |
181.1 |
Operating
cash flow of the retained operations |
4.7 |
22.6 |
Loan to Value |
52 % |
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 €161.1 million in
debt without recourse at 31 December 2018
-
Revenues from operations increased in each
quarter of 2018 (average quarterly growth rate: +3.5%) to €154.5
million. On a comparable consolidation scope and currency basis,
revenues came to €158.4 million, compared with €169.7 million in
2017, a decline of 6.6%. This decrease was attributable to the
reduction in the fleet of containers under management and did not
impact Group profitability, which improved.
-
EBITDA came to
€25.7 million, which is relatively stable compared to the
€26.9 million recorded a year earlier. Operating profitability on
transportation activities improved.
The Freight Railcars business is
the largest contributor to Group EBITDA, with the majority of its
assets owned, whereas the Containers division contributes only a
small share, due to the predominance of assets managed for third
parties.
The Freight Railcars business
chalked up a €2.6 million increase in EBITDA over the year, helped
notably by its higher utilization rate (up 3 points over the year,
giving an average of 84.9% for 2018, with 86.9% recorded in
December 2018). In a growing market, fuelled by fleet replacement
needs, the Group initiated increase in leasing rates.
At the Containers division, EBITDA
increased to €2.2 million, thanks to revived investments in H2 2018
(on the Group's own account and for third parties) and the
expansion in new container trading.
Excluding non-recurring items
stemming from the settlement of the dispute in South America (€1.2
million), which had benefited its top line in 2017, the River
Barges business recorded stable EBITDA in 2018.
EBITDA from other activities was
down €3.8 million, notably impacted by the Modular Buildings
division in Africa and overheads that were previously assigned to
the modular buildings business sold in December 2017.
-
Operating income[3] increased
by €7.2 million to €8.1 million.
-
Net income Group share came to -€4.2 million,
compared to -€18 million a year earlier. Net income from
transportation activities was positive, at €1.4 million. The
accounting loss was primarily attributable to residual activities
or costs arising from the modular buildings business: net income
from discontinued operations was negative, at -€1 million. The
modular buildings business in Africa recorded net income of -€2.1
million (nevertheless, efforts to transform the business in Africa
have made progress and will help extract more value from the
Group's investment). Meanwhile, unallocated corporate costs,
incurred following the disposal of modular building operations in
Europe and the US in December 2017, came to €2.5 million. The
efforts to cut costs implemented in 2018 are having a visible
impact from 2019.
FINANCIAL
STRUCTURE
-
The balance sheet shows a total of €439 million
at 31 December 2018, compared with €398 million at 31 December
2017
-
Tangible assets amounted to €369m
-
Cash flow from operations amounted to €4.7
million due to investments
-
Gross debt amounted to €225 million out of which
71% is non-recourse. Group net debt stood at €195 million compared
to €181 million at 31 December 2017
-
The loan-to-value ratio was at 52% (vs. 54% at
31 December 2017)
Financing
-
At end May 2018, the Group refinanced €110
million worth of railcar and container asset debt, both with its
main asset financing banks and also with new international banking
partners, thereby extending its financing pool.
These financing efforts will
extend the maturity on the Group's debt and enable it to gradually
resume investment.
The aim of this bond issue is to
extend the average maturity of the Group's debt.
The net proceeds of the issue were
partly used to refinance the bonds maturing on 2 October, 2018,
with the balance allocated to general Group needs.
OUTLOOK
The world's major economies,
including emerging markets, continue to favour the growth of rail
and river transportation for trading in goods, as these emit less
C02 and are economically over long distances. Prospects for the
underlying transport equipment leasing markets are therefore
strong, as businesses step up the use of outsourced services (i.e.
more leasing and less ownership).
Demand for rail freight
transportation continues to mount in Europe, driven by the revival
in private sector demand following the deregulation of the rail
freight sector. Fleet replacement needs are high, after the chronic
under-investment seen in the previous decade.
Europe's river transport market is
being fuelled by the construction sector and transportation of
grains and biomass. The South American market is stable.
Demand for containers remains
strong, with replacement needs estimated at over two million TEUs
p.a. and forecasts pointing to growth in world GDP and
international trade.
The Group will remain focused on
generating a sustained improvement in profitability, helped by the
Continuous Improvement Program (CIP) launched in early 2018, while
gradually pushing ahead with investments on its own account and
building up its third-party asset management business.
UPCOMING
EVENTS:
-
29 March 2019: Conference call to present annual
results
-
15 May 2019: Q1 2019
Revenues
-
24 June 2019: Annual General
Meeting
TOUAX
Group leases out tangible assets (freight railcars, river barges
and containers) on a daily basis worldwide, both on its own account
and for investors. With nearly €1.2bn in assets under management,
TOUAX is one of the leading European players in the leasing of such
equipment.
TOUAX
is listed on the EURONEXT stock market in Paris - Euronext Paris
Compartment C (ISIN code: FR0000033003) - and is listed on the CAC®
Small, CAC® Mid & Small and EnterNext©PEA-PME 150 indices.
For
further information please visit:
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] Excluding minority interests in Railcar entities and
management fees
[2] The Fair Market Value used to calculate the Net Assets
Value (NAV) is based on independent appraisals: 50% replacement
valuation methodology and 50% earning rate methodology for
railcars, earning rate methodology for containers and replacement
valuation methodology for barges. This fair market value replaces
the Net book value to calculate the NAV
[3] Note: Change in accounting estimate of the duration of
depreciation period for railcars to a standardised duration of 36
years
2018 RESULTS
This
announcement is distributed by West Corporation on behalf of West
Corporation 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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