PRESS RELEASE
THE OPERATIONAL LEASING SOLUTION FOR SUSTAINABLE TRANSPORTATION
2020 RESULTS
Solid operating and financial performance in 2020 and positive outlook for 2021
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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,
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
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
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
(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,
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
- 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
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
EBITDA from the other activities came to €3.5 million, a sharp increase of €2.1 million, thanks in particular to the
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
Tangible asset amounted to €364 million.
Total current assets amounted to €308 million compared with €297 million at the end of
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
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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
In
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
In the
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
UPCOMING EVENTS
March 24, 2021 : Conference call to present the annual results in FrenchMarch 26, 2021 : Conference call to present the annual results in EnglishMay 14, 2021 : Q1 2021 Revenue from activitiesJune 23, 2021 : Annual General Meeting
For more information: www.touax.com
Contacts:
TOUAX ACTIFIN
Fabrice & Raphaël Walewski
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
4 TSSDI (titres super-subordonnés à durée indéterminée): undated deeply subordinated bonds
5 On
Attachment
- EN TOUAX PR
24 March 2021 - FY 2020 Results
© OMX, source