Touax: H1 2021 results

PRESS RELEASE        Paris, 22 September 2021 – 5.45 p.m.

YOUR OPERATIONAL LEASING SOLUTION FOR SUSTAINABLE TRANSPORTATION

H1 2021 results

  • Restated revenue from activities of €52.5 million, up €1.2 million
  • Resilient business performance with EBITDA of €21.3 million and the Group share of net income amounting to €2.0 million
  • Favourable outlook with strong investments

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(in € thousand) 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(in € thousand) 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        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        

APPENDIX 1: Accounting presentation of revenue from activities

Revenue from activities(in € thousand) 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

Attachment

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