Touax: 2020 RESULTS Solid operating and financial performance in
2020 and positive outlook for 2021
PRESS
RELEASE
Paris, March 24, 2021 – 5.45 p.m.
THE OPERATIONAL LEASING SOLUTION
FOR SUSTAINABLE TRANSPORTATION
2020 RESULTS
Solid operating and financial performance
in 2020 and positive outlook for 2021
- Group share of net profit: €5.9 million
- EBITDA up by 27% to €46.8 million
- Business showed strong resilience despite the crisis
caused by the pandemic
- Continued growth in owned equipment: +€15.6 million
(+3.5%)
- Group financial structure strengthened and major
refinancing deals finalised to push ahead with the Group’s
expansion
|
The Group forged ahead with its
expansion despite the complex international environment caused by
the health crisis. It continued to capitalise on the strategic,
operational and financial measures taken over the past few years
which enabled a return to profitability in 2020, while also
improving its financial situation and making new long-term
investments.
“Touax Group’s strategy to focus on its three
long-term equipment leasing businesses in sustainable
transportation showed results in 2020. Despite the exceptional
environment linked to the Covid-19 pandemic, Touax demonstrated
strong resilience in all of its activities, enabling growth in its
results”, say Fabrice and Raphaël Walewski, the managing partners
of TOUAX SCA.
Touax saw renewed profitability in 2020, with
the Group share of net profit reaching €5.9 million, and
growth across all of its operational performance indicators
together with continued investment.
The utilisation rates at the end of December of
the Freight Railcars (83.6%), Containers (99.4%) and River Barges
(92.0%) divisions were high despite the health crisis.
The capital increase carried out by Touax Rail
(€81.9 million) and the arrival of DIF Core Infrastructure
Fund II managed by DIF Capital Partners strengthened the Group's
equity and its Railcars division.
The partial buyback of TSSDI bonds1 worth
€24.2 billion in November helped to optimise the cost of
long-term financial resources.
The refinancing of the assets of the Containers
division ($75 million) and the Rail division
(€180 million) significantly lengthened the maturities of
their financial liabilities with the related support by the
financial community reflecting its confidence in the Group’s growth
strategy.
The net book value per share stands at €9.462.
Based on the market value of our assets, the revalued NAV per
share2 comes to €14.243.
The consolidated financial statements for the
period ended 31 December 2020 were approved by the Management Board
on 23 March 2021 and were submitted to the Supervisory Board on 24
March 2021. The auditing of these statements is underway.
KEY FIGURES
Key Figures (in thousand
of euros) |
2020 |
2019 |
Revenue
from activities |
163.4 |
169.0 |
Freight railcars |
60.0 |
61.1 |
River Barges |
11.8 |
11.8 |
Containers |
78.9 |
81.8 |
Others |
12.7 |
14.3 |
EBITDA (1) |
46.8 |
36.9 |
Current operating
income |
23.3 |
15.1 |
Operating
Income |
23.2 |
15.1 |
Profit before
tax |
10.0 |
0.7 |
Consolidated net profit (loss) (Group's
share) |
5.9 |
-2.7 |
Including income from retained operations |
6.0 |
-2.0 |
Including income from discontinued operations |
-0.1 |
-0.7 |
Net earnings per
share (€) |
0.84 |
-0.39 |
Total non current assets |
334.5 |
325.2 |
Total Assets |
474.0 |
446.8 |
Total shareholders'
equity |
146.7 |
123.1 |
Net Financial Debt
(2) |
189.6 |
199.3 |
Operating cash flow
(3) |
-1.2 |
7.5 |
Loan to Value |
54 % |
54 % |
(1) EBITDA corresponds to gross operating
margin less distributions to investors
(2) Including €170.2 million in debt
without recourse at 31 December 2020
(3) Including €31.5 million of equipment
purchases in 2020 vs €27.9 million in 2019
RESILIENT BUSINESS IN 2020
Over full-year 2020, revenue from activities
reached €163.4 million (€166.0 million at constant scope
and currency), a slight decrease of 3.3% compared with 2019.
This decrease can be explained by a significant
fall in leasing revenue from investor-owned equipment (‑20.8% in
2020), mainly due to the disposal of equipment by third party
investors and the impact of new management contracts. Pursuant to
IFRS accounting standards and given the types of new management
contracts entered into since 2019, Touax acts as agent rather than
as principal. As a result, the leasing revenue from managed
equipment arising from these new management contracts is no longer
recognised in the accounts, but rather the management fee is
recognised, without any impact on the results.
This decrease was partly offset by a 3.3%
increase in leasing revenue from Group-owned equipment
(€52.3 million) and strong momentum in equipment sales, which
came to €40.5 million compared with €32.2 million in
2019.
Syndication fees and capital gains not linked to
recurring activities rose to €2.3 million, compared with
€1.9 million the previous year.
CONTRIBUTIONS BY DIVISION
Revenue from the Freight Railcars division
reached €60.0 million in 2020, a decrease of 1.9%.
- Leasing revenue fell by 2.9% to €56.7 million over the
period, mainly attributable to the fall in ancillary services
(-€1.4 million) in line with a decrease in maintenance
expenses.
- Sales of railcars and syndication fees rose in 2020.
Revenue from the River Barges division remained
stable at €11.8 million in 2020, while the average utilisation rate
over the period increased to 95.1% (versus 90.5% in 2019).
Revenue from the Containers division came to
€78.9 million at the end of December 2020, a decrease of 3.5%. This
variation can be explained by the fall in leasing activity
attributable to the reduction in the fleet of equipment under
management, which was partly offset by an increase in sales of
equipment. The average utilisation rate over the period was 96.4%,
demonstrating the resilience of the business.
- The container investment strategy underway over the last two
years enabled growth of 26% in leasing revenue from owned equipment
to €9.5 million. As anticipated, revenue from investor-owned
equipment fell to €36.2 million, attributable to equipment
sales.
- The buoyant trading activity led to growth in container sales
which reached €25.4 million at 31 December 2020 (+53.1%).
Lastly, revenue from the Modular Buildings in
Africa division, which is booked under “Miscellaneous”, fell
slightly over the period to €13.0 million, attributable to the
health crisis, but this was offset by a substantial improvement in
margins.
A SOLID OPERATING PERFORMANCE
EBITDA came to
€46.8 million, an increase of 27%.
EBITDA of the Freight Railcars
division reached €26.5 million versus €23.1 million in
2019, with a slight fall in the utilisation rate (84.4% on average
in 2020). In a market that contracted due to the Covid-19 pandemic
but which is expected to show growth in the medium term, the
division forged ahead with its investments and benefited from an
increase in sales and syndications. It also benefited from the fall
in operating expenses.
The River Barges division made
EBITDA of €5.2 million over the year, an increase of
€1.7 million, mainly thanks to the completion of its first
syndication which led to the generation of a syndication fee.
EBITDA of the Containers
division rose significantly (+31%) to €11.6 million thanks to
an increase in the container trading activity. The strategy to
increase the share of owned assets optimised profitability, while
the utilisation rate remained resilient (99.4% in
December 2020). The significant fall in distributions
(‑€13.0 million) had a positive impact on EBITDA.
EBITDA from the other activities came to
€3.5 million, a sharp increase of €2.1 million, thanks in
particular to the Modular Building activity in Africa, the
profitability of which increased sharply thanks to its strategic
focus on higher value added turnkey products, and a decrease in
central expenses.
Operating income reached
€23.2 million, an increase of 53% versus 2019.
Financial income came to
-€13.2 million compared with -€14.4 million in 2019. This
improvement of €1.2 million can partly be attributed to a €0.4
million reduction in the net cost of financial debt.
Profit before tax came to
€10.0 million compared with €0.7 million in 2019.
Corporate income tax totalled €1.0 million, which breaks down
into deferred tax of €0.9 million and a current tax charge of
€0.1 million.
Group share of net profit came
to €5.9 million, a sharp increase versus 2019
(-€2.7 million). All of the Group's operating divisions made a
positive contribution to global consolidated net profit.
A STRENGTHENED FINANCIAL STRUCTURE
The balance sheet showed a total of
€474 million at 31 December 2020 compared with
€447 million at 31 December 2019.
Tangible asset amounted to €364 million.
Total current assets amounted to
€308 million compared with €297 million at the end of
December 2019, mainly due to investments within the Freight
Railcars and Containers divisions.
Cash flow from operating activities came to
-€1.2 million, attributable to various equipment purchases
totalling €31.5 million (investments relating to operating lessors
are classified under cash flow from operating activities).
Gross debt came to €252 million, of which
68% non-recourse debt. Group net debt stood at €190 million.
The loan-to-value ratio remained stable at
54%.
ACHIEVEMENT OF KEY FINANCING TRANSACTIONS
In September 2020, the Rail division carried out
a capital increase of €81.9 million, with DIF Capital Partners
becoming a shareholder with an equity stake of 49%.
In November 2020, Touax SCA repurchased
€24.2 million worth of TSSDI4 bonds, enabling it to optimise
its capital structure and reduce related cash outflows.
In November 2020, assets financing agreements in
the Containers division were signed for a total of $75 million.
In December 2020, assets financing agreements in
the Rail division were signed for a total of €180 million.
A SUCCESSFUL REFOCUSING STRATEGY AND A CONFIDENT
OUTLOOK
The 2020 results confirm the relevance of Touax
Group’s strategy to refocus on its three core long-term equipment
leasing businesses for sustainable transportation.
The Freight Railcar market
contracted in 2020. In the medium term, demand for freight railcars
in Europe is expected to grow. The European Green Deal promotes a
shift to rail transportation and the tendency towards outsourcing
should continue.
In Asia, demand for innovative freight railcars
remains strong. Several infrastructure projects are underway that
favour rail and container traffic, such as the development of the
silk routes between China and Europe and the new dedicated freight
corridor in India.
In the Containers sector, the
Asian market has shown a recovery since summer 2020 and the main
players have made stringent efforts around production capacity and
investment. This demonstrates the resilience of the container and
intermodal transport market, which is being driven by growth in
e-commerce.
In 2020, utilisation rates in the containers
activity showed record growth. The Group aims to continue investing
in owned-equipment while also pursuing the management activity for
third party investors.
The River Barges sector was
scarcely impacted in 2020, with demand staying firm thanks
primarily to long-term infrastructure projects and the
transportation of grain, particularly in the US and South America.
For Touax, investment will resume with the production of new barges
in Europe. Several syndications are also expected to be implemented
in 2021.
In the Modular Construction sector in
Africa, the Group is looking to enhance its market share
by continuing to improve volumes and margins, and by focusing on
increasing its sales of high value added turnkey solutions.
In the short term, the Group remains prudent due
to the exceptional situation caused by the Covid pandemic, but it
is confident in the outlook over the coming years, particularly in
view of the European Green Deal and the various recovery plans
announced by governments concerning infrastructures, and a growing
tendency towards outsourcing, which should continue to support
investment in our asset classes.
2021 has been designated European Year of Rail5
of which a target has been set for the rail sector to hold market
share of 30% of merchandise transport in Europe by 2030. Touax
backs this goal and will continue to support and promote the
development of rail, intermodal and river transport across the five
continents.
UPCOMING EVENTS
- March 24, 2021: Conference call to present the annual results
in French
- March 26, 2021: Conference call to present the annual results
in English
- May 14, 2021: Q1 2021 Revenue from activities
- June 23, 2021: 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 €1.1 billion under management, TOUAX is a European
leader in the leasing of this type of 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 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
APPENDICES
REVENUE FROM ACTIVITIES
Revenue from
activities (in € thousands) |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
TOTAL |
Q1 2019 |
Q2 2019 |
Q3 2019 |
Q4 2019 |
TOTAL |
Leasing revenue on owned equipment |
13,425 |
13,336 |
13,012 |
12,571 |
52,344 |
11,717 |
12,387 |
13,120 |
13,431 |
50,655 |
Leasing revenue on managed
equipment |
13,681 |
12,739 |
11,782 |
11,558 |
49,760 |
16,541 |
16,038 |
15,179 |
15,065 |
62,823 |
Ancillary services |
4,578 |
4,488 |
5,376 |
3,698 |
18,140 |
4,518 |
4,732 |
5,614 |
6,503 |
21,367 |
Management fees on managed assets |
81 |
85 |
101 |
114 |
381 |
|
|
|
|
|
Total leasing
activity |
31,765 |
30,648 |
30,271 |
27,941 |
120,625 |
32,776 |
33,157 |
33,913 |
34,999 |
134,845 |
Sales of owned equipment |
5,872 |
7,216 |
10,917 |
12,107 |
36,112 |
3,271 |
6,925 |
4,604 |
12,548 |
27,348 |
Margins on sale of managed
equipment |
2,128 |
874 |
786 |
581 |
4,369 |
831 |
1,697 |
1,625 |
741 |
4,894 |
Total sales of
equipment |
8,000 |
8,090 |
11,703 |
12,688 |
40,481 |
4,102 |
8,622 |
6,229 |
13,289 |
32,242 |
Fees on syndication and other capital
gains on disposals |
247 |
232 |
13 |
1,810 |
2,302 |
389 |
449 |
8 |
1,076 |
1,922 |
Total revenue from
activities |
40,012 |
38,970 |
41,987 |
42,439 |
163,408 |
37,267 |
42,228 |
40,150 |
49,364 |
169,009 |
ANALYSIS OF CONTRIBUTION BY DIVISION
Revenue from
activities (in € thousands) |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
TOTAL |
Q1 2019 |
Q2 2019 |
Q3 2019 |
Q4 2019 |
TOTAL |
Leasing revenue on owned equipment |
9,198 |
9,118 |
8,910 |
8,860 |
36,086 |
8,517 |
9,287 |
9,007 |
9,564 |
36,375 |
Leasing revenue on managed
equipment |
3,483 |
3,369 |
3,329 |
3,377 |
13,558 |
3,422 |
3,507 |
3,453 |
3,460 |
13,842 |
Ancillary services |
1,619 |
2,137 |
1,845 |
1,149 |
6,750 |
1,456 |
2,094 |
1,952 |
2,664 |
8,166 |
Management fees on managed assets |
53 |
57 |
73 |
87 |
270 |
|
|
|
|
|
Total leasing
activity |
14,353 |
14,681 |
14,157 |
13,473 |
56,664 |
13,395 |
14,888 |
14,412 |
15,688 |
58,383 |
Sales of owned equipment |
939 |
662 |
354 |
141 |
2,096 |
88 |
61 |
677 |
838 |
1,664 |
Total sales of
equipment |
939 |
662 |
354 |
141 |
2,096 |
88 |
61 |
677 |
838 |
1,664 |
Fees on syndication |
214 |
232 |
|
746 |
1,192 |
|
|
|
1,076 |
1,076 |
Freight railcars |
15,506 |
15,575 |
14,511 |
14,360 |
59,952 |
13,483 |
14,949 |
15,089 |
17,602 |
61,123 |
Leasing revenue on owned equipment |
1,533 |
1,520 |
1,656 |
1,946 |
6,655 |
1,618 |
1,747 |
1,743 |
1,510 |
6,618 |
Ancillary services |
1,349 |
545 |
1,162 |
1,011 |
4,067 |
1,222 |
1,146 |
1,502 |
1,187 |
5,057 |
Total leasing
activity |
2,882 |
2,065 |
2,818 |
2,957 |
10,722 |
2,840 |
2,893 |
3,245 |
2,697 |
11,675 |
Sales of owned equipment |
|
|
|
56 |
56 |
42 |
|
|
106 |
148 |
Total sales of
equipment |
|
|
|
56 |
56 |
42 |
|
|
106 |
148 |
Fees on syndication |
|
|
|
1,046 |
1,046 |
|
|
|
|
|
River barges |
2,882 |
2,065 |
2,818 |
4,059 |
11,824 |
2,882 |
2,893 |
3,245 |
2,803 |
11,823 |
Leasing revenue on owned equipment |
2,681 |
2,687 |
2,434 |
1,746 |
9,548 |
1,558 |
1,331 |
2,356 |
2,339 |
7,584 |
Leasing revenue on managed
equipment |
10,198 |
9,370 |
8,453 |
8,181 |
36,202 |
13,119 |
12,531 |
11,726 |
11,605 |
48,981 |
Ancillary services |
1,559 |
1,935 |
2,370 |
1,740 |
7,604 |
1,818 |
1,490 |
2,168 |
2,786 |
8,262 |
Management fees on managed assets |
28 |
28 |
28 |
27 |
111 |
|
|
|
|
|
Total leasing
activity |
14,466 |
14,020 |
13,285 |
11,694 |
53,465 |
16,495 |
15,352 |
16,250 |
16,730 |
64,827 |
Sales of owned equipment |
4,065 |
4,192 |
6,344 |
6,409 |
21,010 |
1,833 |
3,009 |
3,416 |
3,425 |
11,683 |
Margins on sales of managed
equipment |
2,128 |
874 |
786 |
581 |
4,369 |
831 |
1,697 |
1,625 |
741 |
4,894 |
Total sales of
equipment |
6,193 |
5,066 |
7,130 |
6,990 |
25,379 |
2,664 |
4,706 |
5,041 |
4,166 |
16,577 |
Fees on syndication |
18 |
|
13 |
17 |
48 |
389 |
(7) |
8 |
|
390 |
Containers |
20,677 |
19,086 |
20,428 |
18,701 |
78,892 |
19,548 |
20,051 |
21,299 |
20,896 |
81,794 |
Leasing revenue on owned equipment |
13 |
11 |
12 |
19 |
55 |
24 |
22 |
14 |
18 |
78 |
Ancillary services |
51 |
(129) |
(1) |
(202) |
(281) |
22 |
2 |
(8) |
(134) |
(118) |
Total leasing
activity |
64 |
(118) |
11 |
(183) |
(226) |
46 |
24 |
6 |
(116) |
(40) |
Sales of owned equipment |
868 |
2,362 |
4,219 |
5,501 |
12,950 |
1,308 |
3,855 |
511 |
8,179 |
13,853 |
Total sales of
equipment |
868 |
2,362 |
4,219 |
5,501 |
12,950 |
1,308 |
3,855 |
511 |
8,179 |
13,853 |
Other capital gains on disposal |
15 |
|
|
1 |
16 |
|
456 |
|
|
456 |
Miscellaneous and
eliminations |
947 |
2,244 |
4,230 |
5,319 |
12,740 |
1,354 |
4,335 |
517 |
8,063 |
14,269 |
|
|
|
|
|
|
|
|
|
|
|
Total revenue from
activities |
40,012 |
38,970 |
41,987 |
42,439 |
163,408 |
37,267 |
42,228 |
40,150 |
49,364 |
169,009 |
1 TSSDI (titres super-subordonnés à durée indéterminée): undated
deeply subordinated bonds
2 Excluding TSSDI
3 The market value is calculated by independent experts, based
50% on the replacement value and 50% on the value-in-use for
railcars, the value-in-use for containers and the replacement value
for river barges with the exception of a long-term contract in
South America for which the value-in-use was applied. This market
value is substituted for the net book value when calculating the
net asset value
4 TSSDI (titres super-subordonnés à durée indéterminée): undated
deeply subordinated bonds
5 On 15 December 2020, the European Parliament approved this
proposal by the European Commission.
- EN TOUAX PR 24 March 2021 - FY 2020 Results
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