GlobeNewswire by notified

Touax: 2020 RESULTS Solid operating and financial performance in 2020 and positive outlook for 2021

Share

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 activities163.4169.0
             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 2020Q2 2020Q3 2020Q4 2020TOTALQ1 2019Q2 2019Q3 2019Q4 2019TOTAL
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 31,76530,64830,27127,941120,62532,77633,15733,91334,999134,845
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 8,0008,09011,70312,68840,4814,1028,6226,22913,28932,242
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 activities40,01238,97041,98742,439163,40837,26742,22840,15049,364169,009


ANALYSIS OF CONTRIBUTION BY DIVISION

Revenue from activities
(in € thousands)
Q1 2020Q2 2020Q3 2020Q4 2020TOTALQ1 2019Q2 2019Q3 2019Q4 2019TOTAL
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 14,35314,68114,15713,47356,66413,39514,88814,41215,68858,383
Sales of owned equipment 939 662 354 141 2,096 88 61 677 838 1,664
Total sales of equipment 9396623541412,09688616778381,664
Fees on syndication 214 232 746 1,192 1,076 1,076
Freight railcars15,50615,57514,51114,36059,95213,48314,94915,08917,60261,123
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 2,8822,0652,8182,95710,7222,8402,8933,2452,69711,675
Sales of owned equipment 56 56 42 106 148
Total sales of equipment 565642106148
Fees on syndication 1,046 1,046
River barges2,8822,0652,8184,05911,8242,8822,8933,2452,80311,823
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 14,46614,02013,28511,69453,46516,49515,35216,25016,73064,827
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 6,1935,0667,1306,99025,3792,6644,7065,0414,16616,577
Fees on syndication 18 13 17 48 389 (7) 8 390
Containers 20,67719,08620,42818,70178,89219,54820,05121,29920,89681,794
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)46246(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 8682,3624,2195,50112,9501,3083,8555118,17913,853
Other capital gains on disposal 15 1 16 456 456
Miscellaneous and eliminations9472,2444,2305,31912,7401,3544,3355178,06314,269
Total revenue from activities40,01238,97041,98742,439163,40837,26742,22840,15049,364169,009





1 TSSDI (titres super-subordonnés à durée indéterminée): undated deeply subordinated bonds


2 Excluding TSSDI


3The 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): undateddeeply subordinated bonds


5 On 15 December 2020, the European Parliament approved this proposal by the European Commission.


Attachment

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire by notified

GlobeNewswire by notified
GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://notified.com

GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire by notified

Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire by notified

Iveco Group signs a 150 million euro term loan facility with Cassa Depositi e Prestiti to support investments in research, development and innovation11.6.2024 12:00:00 CEST | Press release

Turin, 11th June 2024. Iveco Group N.V. (EXM: IVG), a global automotive leader active in the Commercial & Specialty Vehicles, Powertrain and related Financial Services arenas, has successfully signed a term loan facility of 150 million euros with Cassa Depositi e Prestiti (CDP), for the creation of new projects in Italy dedicated to research, development and innovation. In detail, through the resources made available by CDP, Iveco Group will develop innovative technologies and architectures in the field of electric propulsion and further develop solutions for autonomous driving, digitalisation and vehicle connectivity aimed at increasing efficiency, safety, driving comfort and productivity. The financed investments, which will have a 5-year amortising profile, will be made by Iveco Group in Italy by the end of 2025. Iveco Group N.V. (EXM: IVG) is the home of unique people and brands that power your business and mission to advance a more sustainable society. The eight brands are each a

DSV, 1115 - SHARE BUYBACK IN DSV A/S11.6.2024 11:22:17 CEST | Press release

Company Announcement No. 1115 On 24 April 2024, we initiated a share buyback programme, as described in Company Announcement No. 1104. According to the programme, the company will in the period from 24 April 2024 until 23 July 2024 purchase own shares up to a maximum value of DKK 1,000 million, and no more than 1,700,000 shares, corresponding to 0.79% of the share capital at commencement of the programme. The programme has been implemented in accordance with Regulation No. 596/2014 of the European Parliament and Council of 16 April 2014 (“MAR”) (save for the rules on share buyback programmes set out in MAR article 5) and the Commission Delegated Regulation (EU) 2016/1052, also referred to as the Safe Harbour rules. Trading dayNumber of shares bought backAverage transaction priceAmount DKKAccumulated trading for days 1-25478,1001,023.01489,100,86026:3 June 20247,0001,050.597,354,13027:4 June 20245,0001,055.705,278,50028:6 June20243,0001,096.273,288,81029:7 June 20244,0001,106.174,424,68

Landsbankinn hf.: Offering of covered bonds11.6.2024 11:16:36 CEST | Press release

Landsbankinn will offer covered bonds for sale via auction held on Thursday 13 June at 15:00. An inflation-linked series, LBANK CBI 30, will be offered for sale. In connection with the auction, a covered bond exchange offering will take place, where holders of the inflation-linked series LBANK CBI 24 can sell the covered bonds in the series against covered bonds bought in the above-mentioned auction. The clean price of the bonds is predefined at 99,594. Expected settlement date is 20 June 2024. Covered bonds issued by Landsbankinn are rated A+ with stable outlook by S&P Global Ratings. Landsbankinn Capital Markets will manage the auction. For further information, please call +354 410 7330 or email verdbrefamidlun@landsbankinn.is.

Relay42 unlocks customer intelligence with a new insights and reporting module, powered by Amazon QuickSight11.6.2024 11:00:00 CEST | Press release

AMSTERDAM, June 11, 2024 (GLOBE NEWSWIRE) -- Relay42, a leading European Customer Data Platform (CDP), is leveraging Amazon QuickSight to power its new real-time customer intelligence, reporting, and dashboard module. Harnessing the breadth and quality of customer data, the new Insights module empowers marketing teams to dive deep into customer behaviors and gain invaluable insights into the performance of their marketing programs across all online, offline, paid, and owned marketing channels. Preview of the Relay42 Insights module, in pre-beta version Key capabilities of the Relay42 Insights module include: Deep insights into customer behaviors: With the Relay42 Insights module, marketers can ask unlimited questions about their data and gain a deeper understanding of how to serve their customers more effectively. Simplicity with AI-powered querying: Marketers can use artificial intelligence to query their data using natural language search, reducing the reliance on data scientists. Us

Metasphere Labs Announces X Spaces Event on the Topic of Green Bitcoin Mining and Sound Money for Sustainability11.6.2024 10:30:00 CEST | Press release

VANCOUVER, British Columbia, June 11, 2024 (GLOBE NEWSWIRE) -- Metasphere Labs Inc. (formerly Looking Glass Labs Ltd., "Metasphere Labs" or the "Company") (Cboe Canada: LABZ) (OTC: LABZF) (FRA: H1N) is thrilled to announce an engaging Twitter Spaces event on Green Bitcoin mining, energy markets, and sustainability on July 3, 2024 at 2 p.m. ET. Follow us on X at MetasphereLabs for updates and to join the event. What We'll Discuss Bitcoin Mining Basics: Understand the fundamentals of Bitcoin mining.Energy Market Dynamics: Explore how Bitcoin mining interacts with energy markets.Sustainable Innovations: Learn about our efforts to promote sustainability in Bitcoin mining.Sound Money: Discover how tamper-proof currency can enhance stability.Efficient Payment Rails: See how fast, neutral payment systems support humanitarian projects.Carbon Footprint: Compare Bitcoin's environmental impact with traditional banking. "We're excited to host this event and dive into the critical topics of Bitcoin

World GlobeA line styled icon from Orion Icon Library.HiddenA line styled icon from Orion Icon Library.Eye