Touax : H1-2020 results
PRESS
RELEASE
Paris, September 9, 2020 – 5.45 p.m.
YOUR OPERATIONAL LEASING SOLUTION
FOR SUSTAINABLE TRANSPORTATION
H1 2020 RESULTS
- Growth in results:
- EBITDA: +41% to €22.6 million
- Positive net profit (Group share) of €2.5
million
|
·Good resilience of the business model in the context of
Covid-19 |
The consolidated financial statements for the
period ended June 30, 2020 were approved by the Management Partners
on September 8, 2020 and were submitted to the Supervisory Board
today. They were subject to a limited review by the Statutory
Auditors. Their report is currently being prepared.
ANALYSIS OF REVENUE FROM
ACTIVITIES
Revenue from activities in the first half of
2020 increased by 2.3% to €81.3 million (€81.0 million at
constant scope and currency1), compared with €79.5 million in
the first half of 2019.
This performance was primarily driven by an
11.2% increase in leasing revenue on owned equipment (€26.6
million) and by the sale of equipment for a total of €16.1 million
versus €12.7 million in the first half of 2019.
Syndication fees and capital gains not linked to
recurring activities came to €0.5 million, compared with
€0.8 million a year earlier.
Revenue from
activities (in € thousands) |
Q1 2020 |
Q2 2020 |
H1 2020 |
Q1 2019 |
Q2 2019 |
H1 2019 |
Leasing
revenue on owned equipment |
13,305 |
13,253 |
26,558 |
11,641 |
12,243 |
23,884 |
Leasing
revenue on managed equipment (1) |
14,889 |
14,005 |
28,894 |
16,541 |
16,038 |
32,579 |
Ancillary
services |
4,708 |
4,593 |
9,301 |
4,594 |
4,876 |
9,470 |
Total
leasing activity |
32,902 |
31,851 |
64,753 |
32,776 |
33,157 |
65,933 |
Sales of owned
equipment |
5,872 |
7,217 |
13,089 |
3,271 |
6,925 |
10,196 |
Margins on
sale of managed equipment |
2,134 |
876 |
3,010 |
831 |
1,697 |
2,528 |
Total sales of
equipment |
8,006 |
8,093 |
16,099 |
4,102 |
8,622 |
12,724 |
Fees on syndication and other capital
gains on disposals |
247 |
232 |
479 |
389 |
449 |
838 |
Total
revenue from activities |
41,155 |
40,176 |
81,331 |
37,267 |
42,228 |
79,495 |
(1) The Group is in the process of analysing the accounting impacts
of the IFRS-IC decision, but does not expect there to be a
significant impact on the classification of subleases
· |
ANALYSIS OF CONTRIBUTION BY
DIVISION
Revenue from activities
(in € thousands) |
Q1 2020 |
Q2 2020 |
H1 2020 |
Q1 2019 |
Q2 2019 |
H1 2019 |
Leasing revenue on owned equipment |
9,182 |
9,140 |
18,322 |
8,536 |
9,240 |
17,776 |
Leasing revenue on managed equipment
(1) |
4,024 |
3,955 |
7,979 |
3,422 |
3,507 |
6,929 |
Ancillary services |
1,645 |
2,138 |
3,783 |
1,437 |
2,141 |
3,578 |
Total leasing
activity |
14,851 |
15,233 |
30,084 |
13,395 |
14,888 |
28,283 |
Sales of owned equipment |
939 |
662 |
1,601 |
88 |
61 |
149 |
Total sales of
equipment |
939 |
662 |
1,601 |
88 |
61 |
149 |
Fees on syndication |
214 |
232 |
446 |
|
|
|
Freight railcars |
16,004 |
16,127 |
32,131 |
13,483 |
14,949 |
28,432 |
Leasing revenue on owned equipment |
1,533 |
1,520 |
3,053 |
1,523 |
1,650 |
3,173 |
Ancillary services |
1,349 |
544 |
1,893 |
1,317 |
1,243 |
2,560 |
Total leasing
activity |
2,882 |
2,064 |
4,946 |
2,840 |
2,893 |
5,733 |
Sales of owned equipment |
|
|
|
42 |
|
42 |
Total sales of
equipment |
|
|
|
42 |
|
42 |
River barges |
2,882 |
2,064 |
4,946 |
2,882 |
2,893 |
5,775 |
Leasing revenue on owned equipment |
2,577 |
2,582 |
5,159 |
1,558 |
1,331 |
2,889 |
Leasing revenue on managed equipment
(1) |
10,865 |
10,050 |
20,915 |
13,119 |
12,531 |
25,650 |
Ancillary services |
1,663 |
2,040 |
3,703 |
1,818 |
1,490 |
3,308 |
Total leasing
activity |
15,105 |
14,672 |
29,777 |
16,495 |
15,352 |
31,847 |
Sales of owned equipment |
4,065 |
4,192 |
8,257 |
1,833 |
3,009 |
4,842 |
Margins on sales of managed
equipment |
2,134 |
876 |
3,010 |
831 |
1,697 |
2,528 |
Total sales of
equipment |
6,199 |
5,068 |
11,267 |
2,664 |
4,706 |
7,370 |
Fees on syndication and Other capital
gains on disposals |
18 |
|
18 |
389 |
(7) |
382 |
Containers |
21,322 |
19,740 |
41,062 |
19,548 |
20,051 |
39,599 |
Leasing revenue on owned equipment |
13 |
11 |
24 |
24 |
22 |
46 |
Ancillary services |
51 |
(129) |
(78) |
22 |
2 |
24 |
Total leasing
activity |
64 |
(118) |
(54) |
46 |
24 |
70 |
Sales of owned equipment |
868 |
2,363 |
3,231 |
1,308 |
3,855 |
5,163 |
Total sales of
equipment |
868 |
2,363 |
3,231 |
1,308 |
3,855 |
5,163 |
Other capital gains on disposal |
15 |
|
15 |
|
456 |
456 |
Miscellaneous and
eliminations |
947 |
2,245 |
3,192 |
1,354 |
4,335 |
5,689 |
|
|
|
|
|
|
|
Total revenue from
activities |
41,155 |
40,176 |
81,331 |
37,267 |
42,228 |
79,495 |
(1) The Group is in the process of analysing the
accounting impacts of the IFRS-IC decision, but does not expect
there to be a significant impact on the classification of
subleases
Revenue from the Freight Railcars division
reached €32.1 million, an increase of 13% from €28.4 million
in the first half of 2019.
- Leasing revenue increased by 6.4% to €30.1 million over
the period, thanks to an increase in lease rates which offset a
slight drop in utilization rates (85.6% on average over the
period).
- Sales of freight railcars and syndication margins both
increased, with disposals to investors. Touax retains the
management of this equipment.
Revenue from the River Barges division reached €4.9 million
over the period, compared with €5.8 million in the first half of
2019, mainly attributable to a lower charter rate, while the
average utilization rate over the period increased to 93.5%.
Revenue from the Containers division increased
by 3.7% to €41.1 million over the first half of 2020.
- The asset investment strategy conducted over the past two years
has helped to boost growth in leasing revenue on owned equipment by
78.6% to €5.2 million (up 74.2% to €5.0 million at constant
currency). As expected, leasing revenue from managed equipment
declined slightly to €20.9 million (€20.4 million at
constant currency) due to the temporary impact of the reduction in
the fleet under management. The average utilization rate over the
period was 95.6%, compared with 97.7% in the first half of 2019,
which testifies to the resilience of the long-term leasing
businesses despite the impact of the pandemic on global
growth.
- Brisk momentum in the trading of new and used containers
generated growth in container sales to €11.3 million at June
30, 2020, compared with €7.4 million in the first half of
2019.
Revenue from the sale of Modular Buildings in
Africa, which is booked under “Miscellaneous”, came to €3.2 million
for the period, with deliveries at a low level during the first
half of the year because of the lockdowns implemented as a result
of the health crisis.
ANALYSIS OF THE FIRST HALF
RESULTS
Key figures (in € million) |
06/2020 |
06/2019 |
12/2019 |
Revenue from
activities |
81.3 |
79.5 |
169.0 |
Of which Freight railcars |
32.1 |
28.4 |
61.1 |
Of which River barges |
4.9 |
5.8 |
11.8 |
Of which Containers |
41.1 |
39.6 |
81.8 |
Of which Miscellaneous and eliminations |
3.2 |
5.7 |
14.3 |
Gross operating
margin – EBITDAR (1) |
45.5 |
43.1 |
90.3 |
EBITDA (2) |
22.6 |
16.1 |
36.9 |
Current operating
income |
10.8 |
5.6 |
15.1 |
Operating
income |
10.8 |
5.6 |
15.1 |
Profit before
taxes |
4.6 |
-1.0 |
0.7 |
Consolidated
net profit (loss) (Group’s share) |
2.5 |
-2.5 |
-2.7 |
Including net income from continuing activities |
2.5 |
-2.0 |
-2.0 |
Including net income from discontinued activities |
|
-0.5 |
-0.7 |
Earnings per share
(€) |
0.35 |
-0.36 |
-0.39 |
Total non-current assets |
347.6 |
330.2 |
325.2 |
Total assets |
458.0 |
471.4 |
446.8 |
Total shareholders’
equity |
123.7 |
126.8 |
123.1 |
Net financial debt
(3) |
208.0 |
195.6 |
199.3 |
Operating cash flow
of the retained operations (4) |
0.6 |
4.1 |
8.3 |
Loan-to-value ratio |
54% |
55% |
54% |
(1) The Group calculates EBITDAR (earnings
before interest, tax, depreciation, amortization and rent) by
adding current operating income to depreciation and amortization
and provisions for fixed assets and distributions to investors.
(2) EBITDA corresponds to EBITDAR minus
distributions to investors.
(3) Including €155.8 million in
non-recourse debt at June 30, 2020.
(4) Operating cash flows include the purchase
and sale of equipment.
§ Group EBITDA came to
€22.6 million at June 30, 2020, an increase of 41% compared
with the first half of 2019, thanks to growth in all
activities.
EBITDA of the Freight Railcars division reached
€14.0 million over the period, an increase of 36.0%, thanks to the
combined effects of growth in revenue from activities and lower
operating expenses.
EBITDA of the River Barges division came out at
€1.9 million in the first half of 2020 versus €1.4 million in
2019.
EBITDA of the Containers activity increased from
€3.8 million during the first half of 2019 to €6.3 million in the
first half of 2020, attributable to strong sales momentum and lower
payments to investors because of the growth in the fleet under
management during the period.
EBITDA of the Modular Building Africa activity
and corporate expenses were stable at €0.5 million after €0.6
million in the first half of 2019.
- Current operating income reached €10.8
million, an increase of 94%.
- The Group share of net profit came to €2.5
million in the first half of 2020, versus a loss of €2.5 million a
year earlier.
FINANCIAL STRUCTURE
- The balance sheet shows a total of €458 million at June 30,
2020 compared with €447 million at December 31, 2019.
- Tangible assets (non-current assets excluding goodwill +
inventories) stood at €378 million versus €364 million at December
31, 2019.
- Cash flow from operations amounted to €0.6 million,
incorporating €27.8 million related to equipment
purchases.
- Nominal gross debt stood at €245 million versus €239 million at
December 31, 2019, while Group net debt came to €208 million
versus €199 million at the end of 2019.
- At June 30, 2020, the Group's gearing and Loan-to-Value ratios
were 1.68x and 54% respectively versus 1.62x and 54% at December
31, 2019.
POST CLOSING EVENTS
On August 10, 2020, Touax SCA announced that its
subsidiary Touax Rail Limited had signed an agreement on a capital
increase of €81.9 million with DIF Capital Partners to speed up the
development of its long-term freight railcar leasing activities in
Europe and Asia. Touax SCA will continue to be the majority
shareholder, with 51% of the capital. Touax expects the transaction
to be finalized by the end of September.
OUTLOOK
Touax returned to profit in the first half of
2020, validating its strategy to refocus on its three long-term
equipment leasing businesses in sustainable transportation and
demonstrating the resilience of its business model in the current
environment dominated by Covid-19.
After growth of 1.5% in 2019, the European rail
freight market is expected to show a contraction of 7% (source:
UIRR – growth in intermodal transport via rail), followed by a
rebound in 2021. Touax Rail plans to forge ahead with its
development, drawing on its new financing sources in a market that
offers investment opportunities in certain types of railcars and in
the fleets of clients looking to outsource ownership and
maintenance. Touax Rail also stands to benefit from government
stimulus plans for rail freight in Europe and Asia.
River transportation should continue to benefit
by the positive impact of the ecological transition.
After growth in the container trading business
of 1.8% in 2019, a decline of 5.5% is forecast for 2020 followed by
a recovery of 6.3% in 2021 (source: Drewry). A recovery was seen in
Asia this summer, with an uptick in the leasing market for new
containers, while the utilization rate of our global fleet returned
to 96% in August.
From a structural and medium to long-term
perspective, Europe's Green Deal, together with the various
infrastructure sector recovery drives announced by governments and
the tendency towards outsourcing should continue to underpin
investment in our asset classes.
UPCOMING EVENTS
- September 9, 2020: SFAF webcast to
present the 2020 interim financial statements
- September 11, 2020: Webcast to present the
interim results
- November 13, 2020: Q3 2020 Revenue from
activities
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 €1.1bn 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: www.touax.com
Contacts:TOUAX
ACTIFINFabrice & Raphaël
WALEWSKI
Ghislaine
Gasparettotouax@touax.com
ggasparetto@actifin.frwww.touax.com
Tel: +33 1 56 88 11 11Tel:
+33 1 46 96 18 00
1 Based on a comparable structure and average exchange rates in
H1 2019.
- Press Release - H1-2020 results _VF
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