Touax: 2019 Annual Results
PRESS
RELEASE
Paris, 25 March 2020 – 5.45 p.m.
Your operational leasing solution for
sustainable transportation
2019 RESULTS
- Growth in operating income (+87%) to €15.1
million
- Growth in Ebitda (+44%) to €36.9 million
- Positive net profit before tax of €0.7
million
- Strong tangible asset base with a market value of
€327.3 million
|
“After refocusing successfully on our
transportation equipment leasing activities in 2018, the Group
continued to roll out its ongoing improvement program in 2019,
enabling it to generate an increase in its results,” say
Fabrice and Raphael Walewski, Touax SCA’s managing partners.
As a result, Touax saw growth across all of its
operational performance indicators (a 44% increase in Ebitda and an
87% increase in operating income) along with a recovery in
investment.
The utilisation rates of the freight railcar
(89.5%), container (95.9%) and river barge (85.3%) are at
satisfactory levels at the end of December 2019. The modular
building activity in Africa continues to show an improvement also,
with significant growth in revenue.
For the first time in six years, net profit
before tax came out positive at €0.7 million, while net income,
although still in negative territory, shows a significant
improvement (+35% compared with 2018).
Fund raising of €40 million, the issuance of a
€10 million bond as part of a Euro PP, and syndication of €37.5
million of equipment to investors all demonstrate the renewed
confidence of banks and investors, which is underpinning the
Group's gradual investment strategy.
Net book value per share stands at €6.791 and,
based on the market value of our assets, the revalued NAV2 per
share comes to €13.231.
The consolidated financial statements at 31
December 2019 were approved by the Management Board on 24 March
2020 and were presented to the Supervisory Board on the same day.
The audit procedures are ongoing.
Key Figures
Key Figures (in thousand of euros) |
2019 |
2018 |
Revenue
from activities |
169.0 |
154.5 |
Freight
railcars |
61.1 |
56.3 |
River Barges |
11.8 |
14.5 |
Containers |
81.8 |
76.4 |
Others |
14.3 |
7.3 |
Gross operating
margin - EBITDAR (1) |
90.3 |
83.1 |
EBITDA (2) |
36.9 |
25.7 |
Current operating
income |
15.1 |
8.0 |
Operating
Income |
15.1 |
8.1 |
Profit before
tax |
0.7 |
-2.1 |
Consolidated net profit (loss) (Group's
share) |
-2,7 |
-4.2 |
Including income from retained operations |
-2.0 |
-3.2 |
Including income from discontinued operations |
-0.7 |
-1.0 |
Net earnings per
share (€) |
-0.39 |
-0.59 |
Total non current assets |
325.2 |
307.6 |
Total Assets |
446.8 |
439.4 |
Total shareholders'
equity |
123.1 |
129.1 |
Net Financial Debt
(3) |
199.3 |
195.5 |
Operating cash
flow |
8.3 |
4.7 |
Loan to Value |
54 % |
52 % |
(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 €155.4 million in debt without
recourse at 31 December 2019
- Revenue from activities increased by 9.4% to
€169 million (€164.2 million at constant currency and scope3)
compared with €154.5 million in 2018. Revenue from leasing
activity came to €134.8 million versus €134.5 million in 2018,
with an increase in freight railcars, a decrease in river barges
(South America) and a decrease in containers (decrease in leasing
revenue on managed equipment while leasing revenue on owned
equipment increased by +53.5%). Sales came to €32.2 million versus
€18.7 million in 2018, thanks notably to trading in new and
second-hand containers. Syndication fees and capital gains
increased to €1.9 million versus €1.3 million in
2018.
- EBITDA came to €36.9 million, an increase
of 44% in relation to the previous year.
EBITDA in the Freight Railcars division came to
€23.1 million compared with €22.9 million in 2018, with an increase
in the utilisation rate (average of 88.7% in 2019: +3.8 points
versus 2018). In a growing market underpinned by demand for
equipment replacement, the division continued its investments and
benefited from a gradual increase in leasing rates.
The River Barges division generated EBITDA of
€3.5 million over the year compared with €4.5 million in 2018,
mainly due to a lack of momentum on the South American market and
the lack of disposals in 2019.
EBITDA in the Containers division increased
significantly to €8.8 million, attributable to the impact of the
resumption of investment and the increase in trading of new and
second-hand containers. The strategy of growth in the share of
owned assets boosted profitability, which quadrupled in 2019
compared with 2018. The utilisation rate stands at a resilient
97.1% on average over the year (98.7% in 2018).
EBITDA in the other activities came to €1.5
million, a sharp increase of +€5.4 million compared with 2018, with
the Modular Building Africa activity showing an improvement thanks
to an increase in its order book. The total impact on EBITDA
related to leasing contracts from the implementation of IFRS 16 is
€1.3 million.
- Operating income came to €15.1 million, an
increase of 86.6% in relation to 2018 (€8.1 million).
- Net financial expense came to €14.4 million
compared with €10.2 million in 2018. This incorporates a
non-recurring exceptional foreign exchange loss of €1.2 million on
intra-group loans in USD, which was not offset by the hedging of
foreign exchange risk with Monex Europe Markets Limited, a UK
broker accredited and regulated by the FCA.
- Profit before taxes came out at €0.7 million,
versus -€2.1 million in 2018. Corporate income tax amounted to €1.5
million, broken down into deferred tax of -€0.6 million and a
current tax charge of ‑€0.9 million.
- Net attributable income came out at -€2.7
million, an improvement of 35% compared with -€4.2 million a year
earlier. It includes (i) a residual loss of -€0.6 million on
the Modular Building Africa activity, (ii) a residual loss of -€0.7
million on discontinued activities (modular building in Europe and
the US), and (iii) the aforementioned exceptional foreign exchange
loss of -€1.2 million.
FINANCIAL STRUCTURE
- The balance sheet shows a total of €447 million at 31 December
2019, compared with €439 million at 31 December 2018.
- Tangible assets amount to €364 million.
- Cash flow from operating activities came to €8.3 million,
attributable to several investments (remember that investments
relating to operating lessors are classified under cash flow from
operating activities).
- Gross debt stands at €239 million, 65% of which is
non-recourse debt. Group net debt stands at €199 million versus
€195 million at 31 December 2018.
- The loan-to-value ratio is 54% (52% at 31 December 2018).
Financing
- In February 2019, asset financing agreements within the Barges
division were signed for a total of €6.8 million, of which €3.9
million to finance new barges.
- On 21 June 2019, Touax SCA signed a senior secured loan of €40
million with an institutional investor, maturing in five
years.
This enabled it to refinance its convertible
bond to the tune of €23 million while the balance was used to help
finance the Group's investment plan.
§ On 1 August 2019, Touax SCA issued a
senior unsecured bond in the form of a Euro Private Placement for a
nominal amount of €10 million, maturing in 5.5 years.
This enabled it to extend the average maturity
of the Group's debt.
The net proceeds of the issue will be used to
finance the investment plan.
OUTLOOK
In a very uncertain economic environment in the
short term, Touax's business model, focused on long-term
sustainable transportation leasing services (rail, river and
intermodal), remains resilient.
From a structural perspective, green
transportation should benefit from strong support from consumers
and public authorities wishing to see a reduction in CO2 emissions,
while significant investment is necessary in freight railcars,
river barges and containers to replace old fleets. The deregulation
of rail freight and the trend towards outsourcing should continue
to underpin investment in these assets.
As of the date of this press release, the
Covid-19 pandemic had not had a significant impact on the Group and
its activities. 76% of the leasing income budgeted in 2020 was
already under contract on 1 January 2020. To date, no delay has
been recorded in settlement times, no commercial contract has been
broken and the rates on contract renewals have not decreased.
Nevertheless, in the current environment of
uncertainty and volatility linked to Covid-19, Touax remains
extremely vigilant and is following the development of the epidemic
very closely, including the exposure of its employees who work
remotely, with the exception of those at the modular building plant
in Morocco where the team has been split in two and are working on
an alterning two-week basis. Special workshops have been
implemented to (i) protect the teams, (ii) enhance the supervision
of the potential impacts of the epidemic on our activities, (iii)
meet our commitments to our clients on the continuity of our
activity, (iv) stabilise the supply chains, and (v) ensure prudent
management and monitoring of our cash flow.
UPCOMING EVENTS
- 25 March 2020: Conference call to present the annual results in
French
- 27 March 2020: Conference call to present the annual results in
English
- 15 May 2020: Q1 2020 Revenue from activities
- 24 June 2020: 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 SCA 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: www.touax.com
Contacts:
TOUAX
ACTIFINFabrice & Raphaël WALEWSKIManaging
partners
Ghislaine
Gasparettotouax@touax.com
ggasparetto@actifin.frwww.touax.com
Tel: +33 6 21 10 49 24Tel:
+33 1 46 96 18 00
1 Excluding the non-controlling interests of the Railcar
division and excluding management fees.
2 The market value is calculated by independent
experts, based 50% on the replacement value and 50% on the earning
rate for railcars, the earning rate for containers and the
replacement value for river barges with the exception of a
long-term contract in South America for which the earning rate was
used. This market value is substituted for the net book value when
calculating the net asset value.
3 Based on a comparable structure and 2018
average exchange rates.
- EN Press Release 25 March 2020 - FY Résultats 2019
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