Yahoo Finance Touax: H1 2021 results
PRESS RELEASE Paris, 22 September 2021 – 5.45 p.m.
YOUR OPERATIONAL LEASING SOLUTION FOR SUSTAINABLE TRANSPORTATION
H1 2021 results
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Touax Group continued to deliver a positive performance while the health crisis caused further disruption. Its results were stable against the same period in 2020, with the exception of sales fees, which declined but were partially offset by sales of owned equipment. The growth in the shipping container leasing business, driven by the shortage of containers, limited asset returns and therefore sales of used containers and sales fees.
ANALYSIS OF H1 2021 REVENUE FROM ACTIVITIES
The restated presentation of revenue from activities is as follows:
Restated Revenue from activities | Q1 2021 | Q2 2021 | H1 2021 | Q1 2020 | Q2 2020 | H1 2020 |
Leasing revenue on owned equipment | 13,229 | 13,633 | 26,862 | 13,426 | 13,336 | 26,762 |
Ancillary services | 2,745 | 3,747 | 6,492 | 3,044 | 2,997 | 6,041 |
Total leasing activity | 15,974 | 17,380 | 33,354 | 16,470 | 16,333 | 32,803 |
Sales of owned equipment | 7,085 | 8,328 | 15,413 | 5,872 | 7,216 | 13,088 |
Total sales of equipment | 7,085 | 8,328 | 15,413 | 5,872 | 7,216 | 13,088 |
Total of owned activity | 23,059 | 25,708 | 48,767 | 22,342 | 23,549 | 45,891 |
Syndication fees | 17 | 946 | 963 | 232 | 231 | 463 |
Management fees (a) | 897 | 891 | 1,788 | 937 | 919 | 1,856 |
Sales fees | 591 | 358 | 949 | 2,128 | 882 | 3,010 |
Total of management activity | 1,505 | 2,195 | 3,700 | 3,297 | 2,032 | 5,329 |
Other capital gains on disposals | 0 | 6 | 6 | 15 | 0 | 15 |
Total Others | 0 | 6 | 6 | 15 | 0 | 15 |
Total Restated Revenue from activities | 24,564 | 27,909 | 52,473 | 25,654 | 25,581 | 51,235 |
(a) The “Leasing revenue from investor-owned equipment” line is replaced by “Management fees”.
Note: New segmentation of revenue from activities between owned activities and management activities.
In order to enable a more detailed and more accurate reading of its activities, the Group has adjusted its key indicators:
Revenue from activities is restated in order to present owned activities separately from management activities.
For management activities, leasing revenue from investor-owned equipment is replaced by management fees, which correspond to the net contribution of the leasing management activity to the Group’s performance. This presentation directly shows syndication fees, management fees and sales fees.
This new presentation has no impact on EBITDA, operating income or net income. The accounting presentation of revenue and the contribution by division is presented in the appendix to the press release.
Total restated revenue from activities in H1 2021 amounted to €52.5 million (€54.2 million at constant scope and currency1), compared to €51.2 million in the same period in 2020, an increase of +2.4%. Owned activities increased by €2.9 million, with an increase in sales of owned equipment, particularly in modular buildings.
The management activity shrank by €1.6 million with a drop in sales fees on investor-owned equipment due to the relatively seasonal nature of these sales and the shortage of available containers owing to the sharp recovery in international trade over the past year.
ANALYSIS OF THE CONTRIBUTION BY DIVISION
Restated Revenue from activities | Q1 2021 | Q2 2021 | H1 2021 | Q1 2020 | Q2 2020 | H1 2020 |
Leasing revenue on owned equipment | 9,152 | 9,223 | 18,375 | 9,199 | 9,118 | 18,317 |
Ancillary services | 1,873 | 1,724 | 3,597 | 1,462 | 2,044 | 3,506 |
Total leasing activity | 11,025 | 10,947 | 21,972 | 10,661 | 11,162 | 21,823 |
Sales of owned equipment | 320 | 403 | 723 | 939 | 662 | 1,601 |
Total sales of equipment | 320 | 403 | 723 | 939 | 662 | 1,601 |
Total of owned activity | 11,345 | 11,350 | 22,695 | 11,600 | 11,824 | 23,424 |
Syndication fees | 0 | 0 | 0 | 214 | 231 | 445 |
Management fees (a) | 463 | 470 | 933 | 373 | 395 | 768 |
Total of management activity | 463 | 470 | 933 | 587 | 626 | 1,213 |
Total Freight railcars | 11,808 | 11,820 | 23,628 | 12,187 | 12,450 | 24,637 |
Leasing revenue on owned equipment | 1,688 | 1 745 | 3,433 | 1,636 | 1,626 | 3,262 |
Ancillary services | 683 | 972 | 1,655 | 1,246 | 439 | 1,685 |
Total leasing activity | 2,371 | 2 717 | 5,088 | 2,882 | 2,065 | 4,947 |
Sales of owned equipment | 41 | 0 | 41 | 0 | 0 | 0 |
Total sales of equipment | 41 | 0 | 41 | 0 | 0 | 0 |
Total of owned activity | 2,412 | 2 717 | 5,129 | 2,882 | 2,065 | 4,947 |
Management fees (a) | 6 | 6 | 12 | 0 | 0 | 0 |
Total of management activity | 6 | 6 | 12 | 0 | 0 | 0 |
Total River barges | 2,418 | 2 723 | 5,141 | 2,882 | 2,065 | 4,947 |
Leasing revenue on owned equipment | 2,384 | 2,654 | 5,038 | 2,578 | 2,581 | 5,159 |
Ancillary services | 191 | 1,054 | 1,245 | 285 | 642 | 927 |
Total leasing activity | 2,575 | 3,708 | 6,283 | 2,863 | 3,223 | 6,086 |
Sales of owned equipment | 3,480 | 3,524 | 7,004 | 4,064 | 4,192 | 8,256 |
Total sales of equipment | 3,480 | 3,524 | 7,004 | 4,064 | 4,192 | 8,256 |
Total of owned activity | 6,055 | 7,232 | 13,287 | 6,927 | 7,415 | 14,342 |
Syndication fees | 17 | 946 | 963 | 18 | 0 | 18 |
Management fees (a) | 428 | 415 | 843 | 564 | 524 | 1,088 |
Sales fees | 591 | 358 | 949 | 2,128 | 882 | 3,010 |
Total of management activity | 1,036 | 1,719 | 2,755 | 2,710 | 1,406 | 4 116 |
Total Containers | 7,091 | 8,951 | 16,042 | 9,637 | 8,821 | 18,458 |
Leasing revenue on owned equipment | 5 | 11 | 16 | 13 | 11 | 24 |
Ancillary services | (2) | (3) | (5) | 51 | (128) | (77) |
Total leasing activity | 3 | 8 | 11 | 64 | (117) | (53) |
Sales of owned equipment | 3,244 | 4,401 | 7,645 | 869 | 2,362 | 3,231 |
Total sales of equipment | 3,244 | 4,401 | 7,645 | 869 | 2,362 | 3,231 |
Total of owned activity | 3,247 | 4,409 | 7,656 | 933 | 2,245 | 3,178 |
Other capital gains on disposal | 0 | 6 | 6 | 15 | 0 | 15 |
Total Others | 0 | 6 | 6 | 15 | 0 | 15 |
Total Miscellaneous and eliminations | 3,247 | 4,415 | 7,662 | 948 | 2,245 | 3,193 |
Total Restated Revenue from activities | 24,564 | 27,909 | 52,473 | 25,654 | 25,581 | 51,235 |
(a) The “Leasing revenue from investor-owned equipment” line is replaced by “Management fees”.
The Freight Railcars business declined by €1 million (-4.1%), mainly due to a temporary decrease in railcar sales to customers and investors:
The Group-owned asset business contracted with a €0.9 million fall in owned equipment sales, while the owned asset leasing activity held up well.
Management activity declined as no syndication was carried out in the first half of 2021. Management fees nevertheless increased compared to H1 2020.
The River Barges business increased its revenue by €0.2 million, buoyed by owned asset leasing revenue, which recorded an average utilisation rate of 99.3% over the first half of 2021.
The Containers business contracted by €2.4 million despite an exceptional performance by the leasing activity. The average utilisation rate over the period was 99.7%, reflecting the shortage of containers, but the volume of containers for sale was very low. As a result, sales of Group-owned equipment and syndication fees fell.
The Modular Buildings activity in Africa, presented in the “Other” line, grew by €4.4 million, with a higher number of deliveries during the first half of 2021.
ANALYSIS OF THE FIRST HALF RESULTS
Key figures (in € million) | 06/2021 | 06/2020 | 12/2020 | ||
Restated Revenue from activities | 52.5 | 51.2 | 111.6 | ||
Of which Freight railcars | 23.6 | 24.6 | 47.2 | ||
Of which River barges | 5.1 | 4.9 | 11.8 | ||
Of which Containers | 16.0 | 18.5 | 39.8 | ||
Of which Miscellaneous and eliminations | 7.7 | 3.2 | 12.7 | ||
EBITDA | 21.3 | 22.6 | 46.8 | ||
Current operating income | 9.3 | 10.8 | 23.3 | ||
Operating income | 9.3 | 10.8 | 23.2 | ||
Profit before taxes | 3.4 | 4.6 | 10.0 | ||
Consolidated net profit (loss) (Group’s share) | 2.0 | 2.5 | 5.9 | ||
Including net income from continuing activities | 2.0 | 2.5 | 6.0 | ||
Including net income from discontinued activities | 0.0 | 0.0 | - 0,1 | ||
Earnings per share (€) | 0.28 | 0.35 | 0.84 | ||
Total non-current assets | 342.8 | 347.6 | 334.5 | ||
Total assets | 480.3 | 458.0 | 474.0 | ||
Total shareholders’ equity | 145.7 | 123.7 | 146.7 | ||
Net financial debt (a) | 227.0 | 208.0 | 189.6 | ||
Operating cash flow of the retained operations (b) | - 26.3 | 0.6 | - 1.2 | ||
Loan-to-value ratio | 57% | 54% | 54% | ||
(a) including €192.4 million in debt without recourse at 30 June 2021.
(b) including purchases and sales of equipment
Group EBITDA stood at €21.3 million at 30 June 2021, down slightly (by €1.2 million) from H1 2020.
The decrease in syndications and sales fees in the Freight Railcars and Containers divisions was partially offset by the increase in owned asset sales in the Modular Buildings business. There was also a one-off increase in operating expenses in the Railcars business, with more repairs and servicing completed to make assets available for leasing more quickly.
The Group share of net income came to €2.0 million for H1 2021 (vs. €2.5 million a year earlier).
FINANCIAL STRUCTURE
The balance sheet total stood at €480 million at 30 June 2021, compared with €474 million at 31 December 2020.
As expected and following the €81.9 million capital increase carried out by Touax Rail on 30 September 2020 the Group is continuing its investment program. Tangible assets (non-current assets excluding goodwill + inventories) amounted to €390 million versus €364 million at 31 December 2020.
In light of the investment policy, nominal gross debt increased to €269 million versus €252 million at 31 December 2020, while Group net debt came to €227 million versus €190 million at the end of 2020.
At 30 June 2021, the Group’s loan-to-value ratio was 57% compared with 54% at end-December 2020. This slight increase was due to the increase in investments in new equipment over the period (particularly in the Freight Railcars division) – by nature, a larger portion of these investments is financed by lenders.
Shareholders’ equity, Group share increased to €93.7 million over the period, compared with €92.3 million at 31 December 2020.
OUTLOOK
Touax is pursuing its strategy of investing in owned assets and equipment under management in all its businesses with a significant order book for more than €77.6 million at 30 June 2021. The outlook is positive and restated revenue from activities is expected to gradually rise.
The three long-term leasing businesses for sustainable, environmentally-friendly transportation are resilient and promising.
From a structural and medium to long-term perspective, the growth of e-commerce, which increases demand for logistics, environmental policies such as Europe’s Green Deal, the various government stimulus packages in the infrastructure sector and increased outsourcing, which encourages leasing, should continue to underpin investment in our three asset classes.
UPCOMING EVENTS
22 September 2021: SFAF webcast to present the 2021 interim financial statements
24 September 2021: Webcast to present the 2021 interim financial statements (in English)
15 November 2021: Q3 2021 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 €1.1 billion in assets 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 further information please visit: 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
APPENDIX 1: Accounting presentation of revenue from activities
Revenue from activities | Q1 2021 | Q2 2021 | TOTAL | Q1 2020 | Q2 2020 | TOTAL |
Leasing revenue on owned equipment | 13,229 | 13,633 | 26,862 | 13,426 | 13,336 | 26,762 |
Leasing revenue on managed equipment | 11,072 | 10,912 | 21,984 | 13,681 | 12,739 | 26,420 |
Ancillary services | 3,084 | 3,946 | 7,030 | 4,579 | 4,489 | 9,068 |
Management fees on managed assets | 157 | 166 | 323 | 81 | 84 | 165 |
Total leasing activity | 27,542 | 28,657 | 56,199 | 31,767 | 30,648 | 62,415 |
Sales of owned equipment | 7,085 | 8,328 | 15,413 | 5,872 | 7,216 | 13,088 |
Margins on sale of managed equipment | 591 | 358 | 949 | 2,128 | 873 | 3,001 |
Total sales of equipment | 7,676 | 8,686 | 16,362 | 8,000 | 8,089 | 16,089 |
Fees on syndication | 17 | 946 | 963 | 232 | 231 | 463 |
Other capital gains on disposals | 0 | 6 | 6 | 15 | 0 | 15 |
Total Others | 17 | 952 | 969 | 247 | 231 | 478 |
Total Revenue from activities | 35,235 | 38,295 | 73,530 | 40,014 | 38,968 | 78,982 |
Revenue from activities was mainly affected by the decrease in leasing revenue from investor-owned equipment, the impact of which was limited to a decline in restated management fees, and in revenue from ancillary services.
Table showing the transition from summary accounting presentation to restated presentation
Revenue from activities | H1 2021 | Restatement | Restated H1 2021 | H1 2020 | Restatement | Restated |
(in € thousand) | H1 2020 | |||||
Leasing revenue on owned equipment | 26,862 | 26,862 | 26,762 | 26,762 | ||
Ancillary services | 7,030 | -539 | 6,491 | 9,068 | -3,025 | 6,043 |
Total leasing activity | 33,892 | -539 | 33,353 | 35,830 | -3,025 | 32,805 |
Sales of owned equipment | 15,413 | 15,413 | 13,088 | 13,088 | ||
Total sales of equipment | 15,413 | 0 | 15,413 | 13,088 | 0 | 13,088 |
Total of owned activity | 49,305 | -539 | 48,766 | 48,918 | -3,025 | 45,893 |
Leasing revenue on managed equipment | 21,984 | -21,984 | 0 | 26,420 | -26,420 | 0 |
Fees on syndications | 963 | 963 | 463 | 463 | ||
Management fees on managed assets | 323 | 1,465 | 1,788 | 165 | 1,689 | 1,854 |
Margins on sale of managed equipment | 949 | 949 | 3,001 | 9 | 3,010 | |
Total of management activity | 24,219 | -20,519 | 3,700 | 30,049 | -24,722 | 5,327 |
Other capital gains on disposals | 6 | 6 | 15 | 15 | ||
Total Others | 6 | 0 | 6 | 15 | 0 | 15 |
Total Restated Revenue from activities | 73,530 | -21,057 | 52,473 | 78,982 | -27,747 | 51,235 |
APPENDIX 2: Accounting presentation of the contribution by division
Revenue from activities | H1 2021 | Restatement | H1 2021 | H1 2020 | Restatement | H1 2020 |
(in € thousand) | Restated | Restated | ||||
Leasing revenue on owned equipment | 18,375 | 18,375 | 18,317 | 18,317 | ||
Ancillary services | 3,792 | -196 | 3,596 | 3,757 | -250 | 3,507 |
Total leasing activity | 22,167 | -196 | 21,971 | 22,074 | -250 | 21,824 |
Sales of owned equipment | 723 | 723 | 1,601 | 1,601 | ||
Total sales of equipment | 723 | 0 | 723 | 1,601 | 0 | 1,601 |
Total of owned activity | 22,890 | -196 | 22,694 | 23,675 | -250 | 23,425 |
Leasing revenue on managed equipment | 6,718 | -6,718 | 0 | 6,852 | -6,851 | 1 |
Fees on syndication | 0 | 0 | 445 | 445 | ||
Management fees on managed assets | 257 | 677 | 934 | 109 | 658 | 767 |
Total leasing activity | 6,975 | -6,041 | 934 | 7,406 | -6,193 | 1,213 |
Freight railcars | 29,865 | -6,237 | 23,628 | 31,081 | -6,444 | 24,637 |
Leasing revenue on owned equipment | 3,433 | 3,433 | 3,262 | 3,262 | ||
Ancillary services | 1,655 | 1,655 | 1,685 | 1,685 | ||
Total leasing activity | 5,088 | 0 | 5,088 | 4,947 | 0 | 4,947 |
Sales of owned equipment | 41 | 41 | 0 | 0 | ||
Total sales of equipment | 41 | 0 | 41 | 0 | 0 | 0 |
Total of owned activity | 5,129 | 0 | 5,129 | 4,947 | 0 | 4,947 |
Management fees on managed assets | 12 | 12 | 0 | 0 | ||
Total leasing activity | 12 | 0 | 12 | 0 | 0 | 0 |
River barges | 5,141 | 0 | 5,141 | 4,947 | 0 | 4,947 |
Leasing revenue on owned equipment | 5,038 | 5,038 | 5,159 | 5,159 | ||
Ancillary services | 1,588 | -342 | 1,246 | 3,703 | -2,775 | 928 |
Total leasing activity | 6,626 | -342 | 6,284 | 8,862 | -2,775 | 6,087 |
Sales of owned equipment | 7,004 | 7,004 | 8,256 | 8,256 | ||
Total sales of equipment | 7,004 | 0 | 7,004 | 8,256 | 0 | 8,256 |
Total of owned activity | 13,630 | -342 | 13,288 | 17,118 | -2,775 | 14,343 |
Leasing revenue on managed equipment | 15,266 | -15,266 | 0 | 19,568 | -19,568 | 0 |
Fees on syndication | 963 | 963 | 18 | 18 | ||
Management fees on managed assets | 54 | 788 | 842 | 56 | 1,031 | 1,087 |
Margins on sales of managed equipment | 949 | 949 | 3,001 | 9 | 3,010 | |
Total leasing activity | 17,232 | -14,477 | 2,755 | 22,643 | -18,529 | 4,114 |
Containers | 30,862 | -14,820 | 16,042 | 39,761 | -21,303 | 18,458 |
Leasing revenue on owned equipment | 16 | 16 | 24 | 24 | ||
Ancillary services | -5 | -5 | -77 | -77 | ||
Total leasing activity | 11 | 0 | 11 | -53 | 0 | -53 |
Sales of owned equipment | 7,645 | 7,645 | 3,231 | 3,231 | ||
Total sales of equipment | 7,645 | 0 | 7,645 | 3,231 | 0 | 3,231 |
Total of owned activity | 7,656 | 0 | 7,656 | 3,178 | 0 | 3,178 |
Other capital gains on disposal | 6 | 6 | 15 | 15 | ||
Total Others | 6 | 0 | 6 | 15 | 0 | 15 |
Miscellaneous and eliminations | 7,662 | 0 | 7,662 | 3,193 | 0 | 3,193 |
Total revenue from activities | 73,530 | -21,057 | 52,473 | 78,982 | -27,747 | 51,235 |
1 Based on a comparable structure and average exchange rates for H1 2020
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