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TOUAX: REVENUE FROM ACTIVITIES 2019: +9.4%

TOUAX

PRESS RELEASE                                                                                                              Paris, 28 February 2020 – 5.45 p.m.


YOUR OPERATIONAL LEASING SOLUTION

REVENUE FROM ACTIVITIES 2019: +9.4%

 

  • Increase of 22% in revenue1 in Q4 2019 driven by growth in leasing revenue and sales of owned equipment
  • Increase of 9.4% in revenue1 for the 2019 financial year to €169 million (+6.3% at constant scope and currency2)
  • Average continuous improvement in revenue of 10%3 which confirms the Group’s strategic objectives
 

ANALYSIS OF REVENUE FROM ACTIVITIES

Q4 2019 revenue totalled €49.4 million compared with €40.5 million in Q4 2018, an increase of 22%.

Over the 2019 financial year, revenue from activities thus totalled €169 million (€164.2 million at constant scope and currency), up 6.3% compared to 2018.

This good performance was mainly driven by the 11.2% increase in leasing revenue on owned equipment (€50.2 million) and sales of equipment which stood at €32.2 million (€31 million at constant scope and currency), compared with €18.7 million in 2018, notably thanks to trading activity in new and used containers.

Syndication fees and capital gains not linked to recurring activities came to €1.9 million versus €1.3 million the previous year.

Revenue from activities
(in € thousands)
Q1 2019 Q2 2019 Q3 2019 Q4 2019 TOTAL Q1 2018 Q2 2018 Q3 2018 Q4 2018 TOTAL  
Leasing revenue on owned equipment (1) 11,641 12,243 13,008 13,319 50,211 11,525 11,171 10,474 11,975 45,145  
Leasing revenue on managed equipment (1) 16,541 16,038 15,179 15,065 62,823 17,467 17,850 19,514 17,336 72,167  
Ancillary services (2) 4,594 4,876 5,726 6,615 21,811 3,474 3,678 4,724 5,352 17,228  
Total leasing activity 32,776 33,157 33,913 34,999 134,845 32,466 32,699 34,712 34,663 134,540  
Sales of owned equipment (3) 3,271 6,925 4,604 12,548 27,348 3,247 4,475 4,284 5,214 17,220  
Margins on sale of managed equipment (3) 831 1,697 1,625 741 4,894 310 253 338 628 1,529  
Total sales of equipment 4,102 8,622 6,229 13,289 32,242 3,557 4,728 4,622 5,842 18,749  
Fees on syndication and Other capital gains on disposals (3) 389 449 8 1,076 1,922 323 655 267 7 1,252  
Total revenue from activities 37,267 42,228 40,150 49,364 169,009 36,346 38,082 39,601 40,512 154,541  
    (1) The implementation of the new IFRS 16 has no significant impact on the presentation of revenue from activities.

(2) Ancillary services include river barge freight activity and rebilling of expenses related to equipment leasing (transport, repairs).

(3) Sales of Group-owned equipment to end user customers are recognized fully in the Equipment sales line. The margin or capital gain generated is obtained by deducting the purchase cost from sales.

The margin (sale fee) on sales of equipment managed for third parties to end user customers is recognized in the Equipment sales line.

The other capital gains are capital gains not linked to recurring equipment sales.

ANALYSIS OF THE CONTRIBUTION BY DIVISION

Revenue from the Freight Railcars division totalled €61.1 million, a 8.5% increase from €56.3 million the previous year.

  • Leasing revenue was up 9.3% at €58.4 million over the period, thanks to an increase in leasing prices and in the utilization rate (88.7% on average versus 84.9% a year earlier).
  • Sales of railcars were down, but syndication margins increased, mainly due to a railcar disposals during the 4th quarter to investors for which Touax maintains their management.

Revenue from the River Barges division came to €11.8 million compared to €14.5 million over 2018, during which barges were sold for €2.1 million. Leasing revenue fell to €11.7 million, mainly due to the temporary lacklustre market in South America.

Revenue from the Containers division totalled €81.8 million over 2019, an increase of 7.1%.

  • The accretive and value-creating strategy of investments on the balance sheet made during the past 18 months boosted the growth of revenue from the leasing of Group-owned equipment which was up 53.5% to €7.6 million (+45.5% at constant currency). Revenue from investor-owned equipment was, as expected, down at €49 million (€46.4 million at constant currency) due to the temporary impact of the reduction in the fleet under management. The average utilisation rate over the period remained high at 97.1%, reflecting the good resilience of leasing businesses in a context of weaker global growth.
  • The buoyant trading activity in new and used containers generated strong growth in container sales which reached €16.6 million at 31 December 2019 versus €8.1 million in 2018, i.e., an increase of 105.5%. Syndication fees were stable at €0.4 million.

Revenue from the sales of modular buildings in Africa presented under the “Miscellaneous” line more than doubled during 2019 to €13.9 million, highlighting the turnaround of the activity.

Revenue from activities
(in € thousands)
Q1 2019 Q2 2019 Q3 2019 Q4 2019 TOTAL Q1 2018 Q2 2018 Q3 2018 Q4 2018 TOTAL
Leasing revenue on owned equipment (1) 8,536 9,240 8,994 9,552 36,322 8,749 8,473 7,639 8,727 33,588
Leasing revenue on managed equipment (1) 3,422 3,507 3,453 3,460 13,842 2,462 2,410 4,169 3,534 12,575
Ancillary services (2) 1,437 2,141 1,965 2,676 8,219 1,565 1,777 1,584 2,331 7,257
Total leasing activity 13,395 14,888 14,412 15,688 58,383 12,776 12,660 13,392 14,592 53,420
Sales of owned equipment (3) 88 61 677 838 1,664 100 789 (229) 1,565 2,225
Total sales of equipment 88 61 677 838 1,664 100 789 (229) 1,565 2,225
Fees on syndication       1,076 1,076   662 25   687
Freight railcars 13,483 14,949 15,089 17,602 61,123 12,876 14,111 13,188 16,157 56,332
Leasing revenue on owned equipment (1) 1,523 1,650 1,644 1,410 6,227 1,833 1,658 1,504 1,483 6,478
Ancillary services (2) 1,317 1,243 1,601 1,287 5,448 1,196 1,140 2,109 1,513 5,958
Total leasing activity 2,840 2,893 3,245 2,697 11,675 3,029 2,798 3,613 2,996 12,436
Sales of owned equipment (3) 42     106 148 1,020   1,020 25 2,065
Total sales of equipment 42     106 148 1,020   1,020 25 2,065
River barges 2,882 2,893 3,245 2,803 11,823 4,049 2,798 4,633 3,021 14,501
Leasing revenue on owned equipment (1) 1,558 1,331 2,356 2,339 7,584 901 1,001 1,300 1,737 4,939
Leasing revenue on managed equipment (1) 13,119 12,531 11,726 11,605 48,981 15,005 15,440 15,345 13,802 59,592
Ancillary services (2) 1,818 1,490 2,168 2,786 8,262 424 670 835 1,536 3,465
Total leasing activity 16,495 15,352 16,250 16,730 64,827 16,330 17,111 17,480 17,075 67,996
Sales of owned equipment (3) 1,833 3,009 3,416 3,425 11,683 1,436 1,809 1,692 1,599 6,536
Margins on sales of managed equipment (3) 831 1,697 1,625 741 4,894 310 253 338 628 1,529
Total sales of equipment 2,664 4,706 5,041 4,166 16,577 1,746 2,062 2,030 2,227 8,065
Fees on syndication and Other capital gains on disposals (3) 389 (7) 8   390 309 5 9 (13) 310
Containers 19,548 20,051 21,299 20,896 81,794 18,385 19,178 19,519 19,289 76,371
Leasing revenue on owned equipment (1) 24 22 14 18 78 42 39 31 28 140
Ancillary services (2) 22 2 (8) (134) (118) 289 91 196 (28) 548
Total leasing activity 46 24 6 (116) (40) 331 130 227   688
Sales of owned equipment (3) 1,308 3,855 511 8,179 13,853 691 1,877 1,801 2,025 6,394
Total sales of equipment 1,308 3,855 511 8,179 13,853 691 1,877 1,801 2,025 6,394
Other capital gains on disposal (3)   456     456 14 (12) 233 20 255
Miscellaneous and eliminations 1,354 4,335 517 8,063 14,269 1,036 1,995 2,261 2,045 7,337
                     
Total revenue from activities 37,267 42,228 40,150 49,364 169,009 36,346 38,082 39,601 40,512 154,541
      (1) The implementation of the new IFRS 16 has no significant impact on the presentation of revenue from activities.

(2) Ancillary services include river barge freight activity and rebilling of expenses related to equipment leasing (transport, repairs).

(3) Sales of Group-owned equipment to end user customers are recognized fully in the Equipment sales line. The margin or capital gain generated is obtained by deducting the purchase cost from sales.

The margin (sale fee) on sales of equipment managed for third parties to end user customers is recognized in the Equipment sales line.

The other capital gains are capital gains not linked to recurring equipment sales.

 
 


OUTLOOK

The strategic refocusing on the three long-term transport equipment leasing businesses is reaping rewards and business is continuing to grow.

Global economic growth remains positive at 3.3% in 2020* which should continue to support equipment transportation activities and equipment leasing demand.

It remains too early to determine the impact of the Coronavirus, although current analyses point to a weaker activity during the first quarter of 2020 followed by a recovery during the second half of the year. Long-term leasing activities are generally relatively unaffected by temporary fluctuations due to public health crisis.

*source IMF 20/01/2020.

UPCOMING EVENTS

  • 25 March 2020: 2019 annual results –  SFAF presentation
  • 27 March 2020: Conference call to present annual results
  • 15 May 2020: Q1 2020 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 nearly €1.2bn in assets under management, TOUAX is one of the leading European players in the leasing of such equipment.

TOUAX SCA 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
Managing partners                                                                                                  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                                                                                                                                                                    



1 Revenue corresponds to revenue from activities that generate leasing revenue, sales of equipment, syndication fees and other capital gains.


2 Based on a comparable structure and 2018 average exchange rates.


3 CQGR = 10%.


 

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