First Quarter 2022 Highlights
- Total revenue increased 11.2% to
$705.7 million . - Total NOI increased 0.6% to
$158.3 million . - Core EBITDA decreased 5.9% on an actual basis to
$110.9 million ., and decreased 2.2% on a constant currency basis. - Net loss of
$17.4 million , or$0.06 loss per diluted common share. - Core FFO of
$46.3 million , or$0.17 per diluted common share. - AFFO of
$68.9 million , or$0.26 per diluted common share. Global Warehouse segment revenue increased 11.4% to$540.9 million .Global Warehouse segment NOI increased 0.1% to$146.3 million .Global Warehouse segment same store revenue increased 4.5%, or 6.0% on a constant currency basis,Global Warehouse segment same store NOI decreased by 4.7%, or 3.6% on a constant currency basis.
First Quarter 2022 Total Company Financial Results
Total revenue for the first quarter of 2022 was
Total NOI for the first quarter of 2022 was
Core EBITDA was
For the first quarter of 2022, the Company reported net loss of
For the first quarter of 2022, Core FFO was
For the first quarter of 2022, AFFO was
Please see the Company’s supplemental financial information for the definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures.
First Quarter 2022 Global Warehouse Segment Results
For the first quarter of 2022,
We had 215 same stores for the three months ended
Three Months Ended | Change | ||||||||||||||||
Dollars in thousands | 2022 actual | 2022 constant currency(1) | 2021 actual | Actual | Constant currency | ||||||||||||
TOTAL WAREHOUSE SEGMENT | |||||||||||||||||
Number of total warehouses(2) | 240 | 233 | n/a | n/a | |||||||||||||
Rent and storage | $ | 229,757 | $ | 232,445 | $ | 205,275 | 11.9 | % | 13.2 | % | |||||||
Warehouse services | 311,168 | 316,277 | 280,176 | 11.1 | % | 12.9 | % | ||||||||||
Total revenue | $ | 540,925 | $ | 548,722 | $ | 485,451 | 11.4 | % | 13.0 | % | |||||||
$ | 146,258 | $ | 147,958 | $ | 146,181 | 0.1 | % | 1.2 | % | ||||||||
27.0 | % | 27.0 | % | 30.1 | % | -307 bps | -315 bps | ||||||||||
Units in thousands except per pallet data | |||||||||||||||||
Average economic occupied pallets | 4,174 | n/a | 3,973 | 5.1 | % | n/a | |||||||||||
Average physical occupied pallets | 3,804 | n/a | 3,627 | 4.9 | % | n/a | |||||||||||
Average physical pallet positions | 5,437 | n/a | 5,159 | 5.4 | % | n/a | |||||||||||
Economic occupancy percentage | 76.8 | % | n/a | 77.0 | % | -25 bps | n/a | ||||||||||
Physical occupancy percentage | 70.0 | % | n/a | 70.3 | % | -34 bps | n/a | ||||||||||
Total rent and storage revenue per economic occupied pallet | $ | 55.05 | $ | 55.70 | $ | 51.67 | 6.5 | % | 7.8 | % | |||||||
Total rent and storage revenue per physical occupied pallet | $ | 60.39 | $ | 61.10 | $ | 56.59 | 6.7 | % | 8.0 | % | |||||||
Throughput pallets | 9,859 | n/a | 9,532 | 3.4 | % | n/a | |||||||||||
Total warehouse services revenue per throughput pallet | $ | 31.56 | $ | 32.08 | $ | 29.39 | 7.4 | % | 9.1 | % | |||||||
SAME STORE WAREHOUSE | |||||||||||||||||
Number of same store warehouses | 215 | 215 | n/a | n/a | |||||||||||||
Rent and storage | $ | 204,273 | $ | 206,643 | $ | 194,203 | 5.2 | % | 6.4 | % | |||||||
Warehouse services | 279,116 | 283,913 | 268,591 | 3.9 | % | 5.7 | % | ||||||||||
Total same store revenue | $ | 483,389 | $ | 490,556 | $ | 462,794 | 4.5 | % | 6.0 | % | |||||||
$ | 139,056 | $ | 140,604 | $ | 145,893 | (4.7) | % | (3.6) | % | ||||||||
28.8 | % | 28.7 | % | 31.5 | % | -276 bps | -286 bps | ||||||||||
Units in thousands except per pallet data | |||||||||||||||||
Average economic occupied pallets | 3,797 | n/a | 3,768 | 0.8 | % | n/a | |||||||||||
Average physical occupied pallets | 3,456 | n/a | 3,442 | 0.4 | % | n/a | |||||||||||
Average physical pallet positions | 4,892 | n/a | 4,869 | 0.5 | % | n/a | |||||||||||
Economic occupancy percentage | 77.6 | % | n/a | 77.4 | % | 22 bps | n/a | ||||||||||
Physical occupancy percentage | 70.7 | % | n/a | 70.7 | % | -4 bps | n/a | ||||||||||
Same store rent and storage revenue per economic occupied pallet | $ | 53.80 | $ | 54.43 | $ | 51.55 | 4.4 | % | 5.6 | % | |||||||
Same store rent and storage revenue per physical occupied pallet | $ | 59.10 | $ | 59.79 | $ | 56.43 | 4.7 | % | 6.0 | % | |||||||
Throughput pallets | 8,893 | n/a | 8,947 | (0.6) | % | n/a | |||||||||||
Same store warehouse services revenue per throughput pallet | $ | 31.38 | $ | 31.92 | $ | 30.02 | 4.5 | % | 6.3 | % |
Three Months Ended | Change | ||||||||||||||
Dollars in thousands | 2022 actual | 2022 constant currency(1) | 2021 actual | Actual | Constant currency | ||||||||||
NON-SAME STORE WAREHOUSE | |||||||||||||||
Number of non-same store warehouses(3) | 25 | 18 | n/a | n/a | |||||||||||
Rent and storage | $ | 25,484 | $ | 25,802 | $ | 11,072 | n/r | n/r | |||||||
Warehouse services | 32,052 | 32,364 | 11,585 | n/r | n/r | ||||||||||
Total non-same store revenue | $ | 57,536 | $ | 58,166 | $ | 22,657 | n/r | n/r | |||||||
$ | 7,202 | $ | 7,354 | $ | 288 | n/r | n/r | ||||||||
12.5 | % | 12.6 | % | 1.3 | % | n/r | n/r | ||||||||
Units in thousands except per pallet data | |||||||||||||||
Average economic occupied pallets | 377 | n/a | 205 | n/r | n/a | ||||||||||
Average physical occupied pallets | 348 | n/a | 186 | n/r | n/a | ||||||||||
Average physical pallet positions | 545 | n/a | 290 | n/r | n/a | ||||||||||
Economic occupancy percentage | 69.2 | % | n/a | 70.7 | % | n/r | n/a | ||||||||
Physical occupancy percentage | 63.9 | % | n/a | 64.0 | % | n/r | n/a | ||||||||
Non-same store rent and storage revenue per economic occupied pallet | $ | 67.62 | $ | 68.46 | $ | 53.97 | n/r | n/r | |||||||
Non-same store rent and storage revenue per physical occupied pallet | $ | 73.19 | $ | 74.11 | $ | 59.64 | n/r | n/r | |||||||
Throughput pallets | 966 | n/a | 584 | n/r | n/a | ||||||||||
Non-same store warehouse services revenue per throughput pallet | $ | 33.19 | $ | 33.51 | $ | 19.83 | n/r | n/r |
(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2) Total warehouse count of 240 includes two warehouses acquired through the Lago acquisition on
(3) Non-same store warehouse count of 25 one recently leased warehouse in
(n/a = not applicable)
(n/r = not relevant)
Fixed Commitment Rent and Storage Revenue
As of
Economic and Physical Occupancy
Contracts that contain fixed commitments are designed to ensure the Company’s customers have space available when needed. For the first quarter of 2022, economic occupancy for the total warehouse segment was 76.8% and warehouse segment same store pool was 77.6%, representing a 679 basis point and 696 basis point increase above physical occupancy, respectively. Economic occupancy for the total warehouse segment decreased 25 basis points, and the warehouse segment same store pool increased 22 basis points as compared to the first quarter of 2021. Occupancy reflects the impact from the timing of the Easter holiday year over year, offset by ongoing food supply chain disruption as manufacturers have not yet increased production to levels in excess of demand in order to meaningfully increase inventory holdings.
Real Estate Portfolio
As of
Balance Sheet Activity and Liquidity
As of
Dividend
On
2022 Outlook
The Company maintained its 2022 annual AFFO per share guidance to within the range of
Investor Webcast and Conference Call
The Company will hold a webcast and conference call on
The conference call can also be accessed by dialing 1-844-826-3033 or 1-412-317-5185. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 10165351. The telephone replay will be available starting shortly after the call until
The Company’s supplemental package will be available prior to the conference call in the Investors section of the Company’s website at http://ir.americold.com.
About the Company
Americold is the world’s largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses. Based in
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including FFO, core FFO, AFFO, EBITDAre, Core EBITDA; same store segment revenue and contribution (NOI); real estate debt and maintenance capital expenditures. Definitions of these non-GAAP metrics are included beginning on page 39, and reconciliations of these non-GAAP measures to their most comparable GAAP metrics are included herein. Each of the non-GAAP measures included in this report has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the Company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP measures in this report may not be comparable to similarly titled measures disclosed by other companies, including other REITs.
Forward-Looking Statements
This document contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of our future financial and operating performance and growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include the following: the impact of supply chain disruptions, including, among others, the impact on labor availability, raw material availability, manufacturing and food production; construction materials and transportation; uncertainties and risks related to public health crises, including the ongoing COVID-19 pandemic; adverse economic or real estate developments in our geographic markets or the temperature-controlled warehouse industry; rising interest rates and inflation in operating costs, including as a result of the COVID-19 pandemic; general economic conditions; labor and power costs; labor shortages; risks associated with the ownership of real estate generally and temperature-controlled warehouses in particular; acquisition risks, including the failure to identify or complete attractive acquisitions or the failure of acquisitions to perform in accordance with projections and to realize anticipated cost savings and revenue improvements; our failure to realize the intended benefits from our recent acquisitions, and including synergies, or disruptions to our plans and operations or unknown or contingent liabilities related to our recent acquisitions; risks related to expansions of existing properties and developments of new properties, including failure to meet budgeted or stabilized returns within expected time frames, or at all, in respect thereof; a failure of our information technology systems, systems conversions and integrations, cybersecurity attacks or a breach of our information security systems, networks or processes could cause business disruptions or loss of confidential information; risks related to privacy and data security concerns, and data collection and transfer restrictions and related foreign regulations; defaults or non-renewals of significant customer contracts, including as a result of the ongoing COVID-19 pandemic; uncertainty of revenues, given the nature of our customer contracts; our failure to obtain necessary outside financing; risks related to, or restrictions contained in, our debt financings; decreased storage rates or increased vacancy rates; risks related to current and potential international operations and properties; difficulties in expanding our operations into new markets, including international markets; risks related to the partial ownership of properties, including as a result of our lack of control over such investments and the failure of such entities to perform in accordance with projections; our failure to maintain our status as a REIT; possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently or previously owned by us; financial market fluctuations; actions by our competitors and their increasing ability to compete with us; changes in applicable governmental regulations and tax legislation, including in the international markets; geopolitical conflicts, such as the ongoing conflict between
Words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” “potential,” “near-term,” “long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will” and similar expressions are intended to identify such forward-looking statements. Examples of forward-looking statements included in this document include, among others, statements about our expected acquisition and expected expansion and development pipeline and our targeted return on invested capital on expansion and development opportunities. We qualify any forward-looking statements entirely by these cautionary factors. Other risks, uncertainties and factors, including those discussed under “Risk Factors” in our Annual Report on Form 10-K for the year ended
Contacts:
Investor Relations
Telephone: 678-459-1959
Email: investor.relations@americold.com
Consolidated Balance Sheets (Unaudited) | |||||||
(In thousands, except shares and per share amounts) | |||||||
2022 | 2021 | ||||||
Assets | |||||||
Property, buildings and equipment: | |||||||
Land | $ | 811,442 | $ | 807,495 | |||
Buildings and improvements | 4,163,054 | 4,152,763 | |||||
Machinery and equipment | 1,361,741 | 1,352,399 | |||||
Assets under construction | 512,694 | 450,153 | |||||
6,848,931 | 6,762,810 | ||||||
Accumulated depreciation | (1,708,031 | ) | (1,634,909 | ) | |||
Property, buildings and equipment – net | 5,140,900 | 5,127,901 | |||||
Operating lease right-of-use assets | 369,706 | 377,536 | |||||
Accumulated depreciation – operating leases | (61,359 | ) | (57,483 | ) | |||
Operating leases – net | 308,347 | 320,053 | |||||
Financing leases: | |||||||
Buildings and improvements | 13,557 | 13,552 | |||||
Machinery and equipment | 141,443 | 146,341 | |||||
155,000 | 159,893 | ||||||
Accumulated depreciation – financing leases | (56,471 | ) | (58,165 | ) | |||
Financing leases – net | 98,529 | 101,728 | |||||
Cash, cash equivalents and restricted cash | 50,965 | 82,958 | |||||
Accounts receivable – net of allowance of | 419,348 | 380,014 | |||||
Identifiable intangible assets – net | 968,099 | 980,966 | |||||
1,068,479 | 1,072,980 | ||||||
Investments in partially owned entities | 43,526 | 37,458 | |||||
Other assets | 109,676 | 112,139 | |||||
Total assets | $ | 8,207,869 | $ | 8,216,197 | |||
Liabilities and equity | |||||||
Liabilities: | |||||||
Borrowings under revolving line of credit | $ | 513,824 | $ | 399,314 | |||
Accounts payable and accrued expenses | 535,617 | 559,412 | |||||
Mortgage notes, senior unsecured notes and term loans – net of deferred financing costs of | 2,422,570 | 2,443,806 | |||||
Sale-leaseback financing obligations | 177,305 | 178,817 | |||||
Financing lease obligations | 91,436 | 97,633 | |||||
Operating lease obligations | 291,050 | 301,765 | |||||
Unearned revenue | 28,349 | 26,143 | |||||
Pension and postretirement benefits | 3,057 | 2,843 | |||||
Deferred tax liability – net | 165,331 | 169,209 | |||||
Multiemployer pension plan withdrawal liability | 8,091 | 8,179 | |||||
Total liabilities | 4,236,630 | 4,187,121 | |||||
Equity | |||||||
Shareholders’ equity: | |||||||
Common shares of beneficial interest, | 2,687 | 2,683 | |||||
Paid-in capital | 5,177,642 | 5,171,690 | |||||
Accumulated deficit and distributions in excess of net earnings | (1,234,875 | ) | (1,157,888 | ) | |||
Accumulated other comprehensive income (loss) | 15,926 | 4,522 | |||||
Total shareholders’ equity | 3,961,380 | 4,021,007 | |||||
Noncontrolling interests: | |||||||
Noncontrolling interests in operating partnership | 9,859 | 8,069 | |||||
Total equity | 3,971,239 | 4,029,076 | |||||
Total liabilities and equity | $ | 8,207,869 | $ | 8,216,197 |
Consolidated Statements of Operations (Unaudited) | |||||||
(In thousands, except per share amounts) | |||||||
Three Months Ended | |||||||
2022 | 2021 | ||||||
Revenues: | |||||||
Rent, storage and warehouse services | $ | 540,925 | $ | 485,451 | |||
Third-party managed services | 85,860 | 73,072 | |||||
Transportation services | 78,910 | 76,272 | |||||
Total revenues | 705,695 | 634,795 | |||||
Operating expenses: | |||||||
Rent, storage and warehouse services cost of operations | 394,667 | 339,270 | |||||
Third-party managed services cost of operations | 82,359 | 68,690 | |||||
Transportation services cost of operations | 70,381 | 69,569 | |||||
Depreciation and amortization | 82,620 | 77,211 | |||||
Selling, general and administrative | 57,602 | 45,052 | |||||
Acquisition, litigation and other, net | 10,075 | 20,751 | |||||
Total operating expenses | 697,704 | 620,543 | |||||
Operating income | 7,991 | 14,252 | |||||
Other (expense) income: | |||||||
Interest expense | (25,773 | ) | (25,956 | ) | |||
Loss on debt extinguishment, modifications and termination of derivative instruments | (616 | ) | (3,499 | ) | |||
Other, net | 245 | 176 | |||||
Loss before income tax benefit (expense) | (18,153 | ) | (15,027 | ) | |||
Income tax benefit (expense) | |||||||
Current | (1,181 | ) | (1,211 | ) | |||
Deferred | 1,889 | 2,002 | |||||
Total income tax benefit (expense) | 708 | 791 | |||||
Net loss | $ | (17,445 | ) | $ | (14,236 | ) | |
Net (loss) income attributable to non controlling interests | (38 | ) | 178 | ||||
Net loss attributable to | $ | (17,407 | ) | $ | (14,414 | ) | |
Weighted average common shares outstanding – basic | 269,164 | 252,938 | |||||
Weighted average common shares outstanding – diluted | 269,999 | 252,938 | |||||
Net loss per common share of beneficial interest - basic | $ | (0.06 | ) | $ | (0.06 | ) | |
Net loss per common share of beneficial interest - diluted | $ | (0.06 | ) | $ | (0.06 | ) |
Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO | |||||||||||||||
(In thousands, except per share amounts - unaudited) | |||||||||||||||
Three Months Ended | |||||||||||||||
Q1 22 | Q4 21 | Q3 21 | Q2 21 | Q1 21 | |||||||||||
Net (loss) income | $ | (17,445 | ) | $ | (7,982 | ) | $ | 5,308 | $ | (13,399 | ) | $ | (14,236 | ) | |
Adjustments: | |||||||||||||||
Real estate related depreciation | 52,200 | 54,816 | 48,217 | 44,871 | 52,280 | ||||||||||
Net loss (gain) on asset disposals | 63 | 65 | (1 | ) | (13 | ) | (39 | ) | |||||||
Impairment charges on real estate assets | — | — | 224 | 1,528 | — | ||||||||||
Our share of reconciling items related to partially owned entities | 1,033 | 822 | 463 | 861 | 266 | ||||||||||
NAREIT Funds from operations | $ | 35,851 | $ | 47,721 | $ | 54,211 | $ | 33,848 | $ | 38,271 | |||||
Adjustments: | |||||||||||||||
Net (gain) loss on sale of non-real estate assets | (235 | ) | 861 | (171 | ) | (304 | ) | (119 | ) | ||||||
Acquisition, litigation and other | 10,075 | 20,567 | 6,338 | 3,922 | 20,751 | ||||||||||
Share-based compensation expense, IPO grants | — | — | — | — | 163 | ||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | 616 | 638 | 627 | 925 | 3,499 | ||||||||||
Foreign currency exchange (gain) loss | (325 | ) | 294 | 349 | 140 | (173 | ) | ||||||||
Our share of reconciling items related to partially owned entities | 347 | 74 | 122 | 89 | 154 | ||||||||||
Core FFO applicable to common shareholders | $ | 46,329 | $ | 70,155 | $ | 61,476 | $ | 38,620 | $ | 62,546 | |||||
Adjustments: | |||||||||||||||
Amortization of deferred financing costs and pension withdrawal liability | 1,146 | 1,104 | 1,088 | 1,085 | 1,148 | ||||||||||
Non-real estate asset impairment | — | — | 1,560 | — | — | ||||||||||
Amortization of below/above market leases | 508 | 843 | 1,017 | 362 | 39 | ||||||||||
Straight-line net rent | 204 | (302 | ) | 411 | (170 | ) | (155 | ) | |||||||
Deferred income tax (benefit) expense | (1,889 | ) | (10,151 | ) | (3,562 | ) | 6,568 | (2,002 | ) | ||||||
Share-based compensation expense, excluding IPO grants | 8,349 | 9,112 | 4,291 | 5,467 | 4,867 | ||||||||||
Non-real estate depreciation and amortization | 30,420 | 32,785 | 22,352 | 39,588 | 24,931 | ||||||||||
Maintenance capital expenditures(a) | (16,106 | ) | (20,808 | ) | (18,938 | ) | (20,488 | ) | (15,731 | ) | |||||
Our share of reconciling items related to partially owned entities | (107 | ) | (502 | ) | (100 | ) | 711 | 278 | |||||||
Adjusted FFO applicable to common shareholders | $ | 68,854 | $ | 82,236 | $ | 69,595 | $ | 71,743 | $ | 75,921 |
Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO (continued) | ||||||||||
(In thousands except per share amounts - unaudited) | ||||||||||
Three Months Ended | ||||||||||
Q1 22 | Q4 21 | Q3 21 | Q2 21 | Q1 21 | ||||||
NAREIT Funds from operations | $ | 35,851 | $ | 47,721 | $ | 54,211 | $ | 33,848 | $ | 38,271 |
Core FFO applicable to common shareholders | $ | 46,329 | $ | 70,155 | $ | 61,476 | $ | 38,620 | $ | 62,546 |
Adjusted FFO applicable to common shareholders | $ | 68,854 | $ | 82,236 | $ | 69,595 | $ | 71,743 | $ | 75,921 |
Reconciliation of weighted average shares: | ||||||||||
Weighted average basic shares for net income calculation | 269,164 | 267,499 | 261,865 | 253,213 | 252,938 | |||||
Dilutive stock options, unvested restricted stock units, equity forward contracts | 835 | 680 | 685 | 3,544 | 3,226 | |||||
Weighted average dilutive shares | 269,999 | 268,179 | 262,550 | 256,757 | 256,164 | |||||
NAREIT FFO - basic per share | $ | 0.13 | $ | 0.18 | $ | 0.21 | $ | 0.13 | $ | 0.15 |
NAREIT FFO - diluted per share | $ | 0.13 | $ | 0.18 | $ | 0.21 | $ | 0.13 | $ | 0.15 |
Core FFO - basic per share | $ | 0.17 | $ | 0.26 | $ | 0.23 | $ | 0.15 | $ | 0.25 |
Core FFO - diluted per share | $ | 0.17 | $ | 0.26 | $ | 0.23 | $ | 0.15 | $ | 0.24 |
Adjusted FFO - basic per share | $ | 0.26 | $ | 0.31 | $ | 0.27 | $ | 0.28 | $ | 0.30 |
Adjusted FFO - diluted per share | $ | 0.26 | $ | 0.31 | $ | 0.27 | $ | 0.28 | $ | 0.30 |
Reconciliation of Net (Loss) Income to EBITDA, NAREIT EBITDAre, and Core EBITDA | |||||||||||||||||||
(In thousands - unaudited) | |||||||||||||||||||
Three Months Ended | Trailing Twelve Months Ended | ||||||||||||||||||
Q1 22 | Q4 21 | Q3 21 | Q2 21 | Q1 21 | Q1 2022 | ||||||||||||||
Net (loss) income | $ | (17,445 | ) | $ | (7,982 | ) | $ | 5,308 | $ | (13,399 | ) | $ | (14,236 | ) | $ | (33,518 | ) | ||
Adjustments: | |||||||||||||||||||
Interest expense | 25,773 | 21,339 | 25,303 | 26,579 | 25,956 | 98,994 | |||||||||||||
Income tax (benefit) expense | (708 | ) | (9,526 | ) | (226 | ) | 8,974 | (791 | ) | (1,486 | ) | ||||||||
Depreciation and amortization | 82,620 | 87,601 | 70,569 | 84,459 | 77,211 | 325,249 | |||||||||||||
EBITDA | $ | 90,240 | $ | 91,432 | $ | 100,954 | $ | 106,613 | $ | 88,140 | $ | 389,239 | |||||||
Adjustments: | |||||||||||||||||||
Adjustment to reflect share of EBITDAre of partially owned entities | 3,198 | 4,625 | 1,854 | 1,838 | 649 | 11,515 | |||||||||||||
NAREIT EBITDAre | $ | 93,438 | $ | 96,057 | $ | 102,808 | $ | 108,451 | $ | 88,789 | $ | 400,754 | |||||||
Adjustments: | |||||||||||||||||||
Acquisition, litigation and other | 10,075 | 20,567 | 6,338 | 3,922 | 20,751 | 40,902 | |||||||||||||
Loss from investments in partially owned entities | 2,112 | 753 | 490 | 61 | 700 | 3,416 | |||||||||||||
Asset impairment | — | — | 1,784 | 1,528 | — | 3,312 | |||||||||||||
Foreign currency exchange (gain) loss | (325 | ) | 294 | 349 | 140 | (173 | ) | 458 | |||||||||||
Share-based compensation expense | 8,349 | 9,112 | 4,291 | 5,467 | 5,030 | 27,219 | |||||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | 616 | 638 | 627 | 925 | 3,499 | 2,806 | |||||||||||||
(Gain) loss on real estate and other asset disposals | (172 | ) | 926 | (172 | ) | (317 | ) | (158 | ) | 265 | |||||||||
Reduction in EBITDAre from partially owned entities | (3,198 | ) | (4,625 | ) | (1,854 | ) | (1,838 | ) | (649 | ) | (11,515 | ) | |||||||
Core EBITDA | $ | 110,895 | $ | 123,722 | $ | 114,661 | $ | 118,339 | $ | 117,789 | $ | 467,617 |
(a) | Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. |
Revenue and Contribution (NOI) by Segment | |||||||
(in thousands - unaudited) | |||||||
Three Months Ended | |||||||
2022 | 2021 | ||||||
Segment revenues: | |||||||
Warehouse | $ | 540,925 | $ | 485,451 | |||
Third-party managed | 85,860 | 73,072 | |||||
Transportation | 78,910 | 76,272 | |||||
Total revenues | 705,695 | 634,795 | |||||
Segment contribution (NOI): | |||||||
Warehouse | 146,258 | 146,181 | |||||
Third-party managed | 3,501 | 4,382 | |||||
Transportation | 8,529 | 6,703 | |||||
Total segment contribution (NOI) | 158,288 | 157,266 | |||||
Reconciling items: | |||||||
Depreciation and amortization | (82,620 | ) | (77,211 | ) | |||
Selling, general and administrative | (57,602 | ) | (45,052 | ) | |||
Acquisition, litigation and other, net | (10,075 | ) | (20,751 | ) | |||
Interest expense | (25,773 | ) | (25,956 | ) | |||
Loss on debt extinguishment, modifications and termination of derivative instruments | (616 | ) | (3,499 | ) | |||
Other, net | 245 | 176 | |||||
Loss before income tax benefit (expense) | $ | (18,153 | ) | $ | (15,027 | ) |
We view and manage our business through three primary business segments—warehouse, third-party managed and transportation. Our core business is our warehouse segment, where we provide temperature-controlled warehouse storage and related handling and other warehouse services. In our warehouse segment, we collect rent and storage fees from customers to store their frozen and perishable food and other products within our real estate portfolio. We also provide our customers with handling and other warehouse services related to the products stored in our buildings that are designed to optimize their movement through the cold chain, such as the placement of food products for storage and preservation, the retrieval of products from storage upon customer request, blast freezing, case-picking, kitting and repackaging and other recurring handling services.
Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to several leading food retailers and manufacturers in customer-owned facilities, including some of our largest and longest-standing customers. We believe using our third-party management services allows our customers to increase efficiency, reduce costs, reduce supply-chain risks and focus on their core businesses. We also believe that providing third-party management services to many of our key customers underscores our ability to offer a complete and integrated suite of services across the cold chain.
In our transportation segment, we broker and manage transportation of frozen and perishable food and other products for our customers. Our transportation services include consolidation services (i.e., consolidating a customer’s products with those of other customers for more efficient shipment), freight under management services (i.e., arranging for and overseeing transportation of customer inventory) and dedicated transportation services, each designed to improve efficiency and reduce transportation and logistics costs to our customers. We provide these transportation services at cost plus a service fee or, in the case of our consolidation services, we charge a fixed fee.
Notes and Definitions |
We calculate funds from operations, or FFO, in accordance with the standards established by the |
We calculate core funds from operations, or Core FFO, as FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, acquisition, litigation and other, net, share-based compensation expense for the IPO retention grants, loss on debt extinguishment, modifications and termination of derivative instruments and foreign currency exchange gain or loss. We also adjust for the impact of Core FFO attributable to partially owned entities. We have elected to reflect our share of Core FFO attributable to partially owned entities since the |
However, because FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of maintenance capital expenditures necessary to maintain the operating performance of our properties, both of which have material economic impacts on our results from operations, we believe the utility of FFO and Core FFO as a measure of our performance may be limited. |
We calculate adjusted funds from operations, or Adjusted FFO, as Core FFO adjusted for the effects of amortization of deferred financing costs and pension withdrawal liability, non-real estate asset impairment, amortization of above or below market leases, straight-line net rent, provision or benefit from deferred income taxes, share-based compensation expense, excluding IPO grants, non-real estate depreciation and amortization, and maintenance capital expenditures. We also adjust for AFFO attributable to our share of reconciling items of partially owned entities. We believe that Adjusted FFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments in our business and to assess our ability to fund distribution requirements from our operating activities. |
FFO, Core FFO and Adjusted FFO are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO, Core FFO and Adjusted FFO should be evaluated along with U.S. GAAP net income and net income per diluted share (the most directly comparable U.S. GAAP measures) in evaluating our operating performance. FFO, Core FFO and Adjusted FFO do not represent net income or cash flows from operating activities in accordance with U.S. GAAP and are not indicative of our results of operations or cash flows from operating activities as disclosed in our consolidated statements of operations included in our annual and quarterly reports. FFO, Core FFO and Adjusted FFO should be considered as supplements, but not alternatives, to our net income or cash flows from operating activities as indicators of our operating performance. Moreover, other REITs may not calculate FFO in accordance with the NAREIT definition or may interpret the NAREIT definition differently than we do. Accordingly, our FFO may not be comparable to FFO as calculated by other REITs. In addition, there is no industry definition of Core FFO or Adjusted FFO and, as a result, other REITs may also calculate Core FFO or Adjusted FFO, or other similarly-captioned metrics, in a manner different than we do. The table above reconciles FFO, Core FFO and Adjusted FFO to net income, which is the most directly comparable financial measure calculated in accordance with |
We calculate EBITDA for Real Estate, or EBITDAre, in accordance with the standards established by the |
We also calculate our Core EBITDA as EBITDAre further adjusted for acquisition, litigation and other, net, loss or income from investments in partially owned entities, asset impairment, foreign currency exchange gain or loss, share-based compensation expense, loss on debt extinguishment, modifications and termination of derivative instruments, loss or gain on real estate and asset disposals and reduction in EBITDAre from partially owned entities. We believe that the presentation of Core EBITDA provides a measurement of our operations that is meaningful to investors because it excludes the effects of certain items that are otherwise included in EBITDA but which we do not believe are indicative of our core business operations. EBITDA and Core EBITDA are not measurements of financial performance under |
- these measures do not reflect our historical or future cash requirements for maintenance capital expenditures or growth and expansion capital expenditures;
- these measures do not reflect changes in, or cash requirements for, our working capital needs;
- these measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;
- these measures do not reflect our tax expense or the cash requirements to pay our taxes; and
- although depreciation and amortization are non-cash charges, the assets being depreciated will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements.
We use Core EBITDA and EBITDAre as measures of our operating performance and not as measures of liquidity. The table on page 19 of our financial supplement reconciles EBITDA, EBITDAre and Core EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with |
We define our “same store” population once a year at the beginning of the current calendar year. Our same store population includes properties that were owned or leased for the entirety of two comparable periods and that have reported at least twelve months of consecutive normalized operations prior to |
We calculate “same store revenue” as revenues for the same store population. We calculate “same store contribution (NOI)” as revenues for the same store population less its cost of operations (excluding any depreciation and amortization, impairment charges, corporate-level selling, general and administrative expenses, corporate-level acquisition, litigation and other, net and gain or loss on sale of real estate). In order to derive an appropriate measure of period-to-period operating performance, we also calculate our same store contribution (NOI) on a constant currency basis to remove the effects of foreign currency exchange rate movements by using the comparable prior period exchange rate to translate from local currency into |
We define “maintenance capital expenditures” as capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building or costs which are incurred to bring a building up to Americold’s operating standards. See the tables on page 28 for additional information regarding our maintenance capital expenditures. |
We define “total real estate debt” as the aggregate of the following: mortgage notes, senior unsecured notes, term loans and borrowings under our revolving line of credit. We define “total debt outstanding” as the aggregate of the following: total real estate debt, sale-leaseback financing obligations and financing lease obligations. See the tables on page 20 for additional information regarding our indebtedness. |
All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited. |
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