PRESS RELEASE Paris, 14 November 2016 - 6 p.m.
YOUR OPERATIONAL LEASING SOLUTION
REVENUE FOR Q3 2016
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REVENUE ANALYSIS
| Revenue by type (unaudited data, € thousands) | Q1 2016 | Q2 2016 | Q3 2016 | TOTAL | Q1 2015 | Q2 2015 | Q3 2015 | TOTAL |
| Leasing revenue (1) | 53 380 | 53 987 | 55 086 | 162 453 | 55 420 | 55 916 | 56 771 | 168 108 |
| Sales of equipment | 34 273 | 29 822 | 30 594 | 94 689 | 12 808 | 43 393 | 20 514 | 76 716 |
| Including sales to clients | 24 357 | 26 120 | 24 792 | 75 268 | 12 708 | 21 499 | 20 509 | 54 716 |
| Including sales to investors | 9 916 | 3 702 | 5 802 | 19 421 | 100 | 21 872 | 28 | 22 000 |
| Consolidated revenue | 87 653 | 83 809 | 85 680 | 257 142 | 68 228 | 99 309 | 77 286 | 244 823 |
(1) Leasing revenue includes ancillary services.
Total consolidated revenues at the end of September 2016 increased by 5% to €257.1 million euros. At constant exchange rates, revenues increased by 5.5% with low impact from exchange rates.
Total leasing revenues fell to €162.5 million despite an increase in the Modular Buildings and Freight Railcars divisions. The Group's rental activity confirms a recovery in Europe with increased utilisation rates in the Modular Buildings business and a growth in the Freight Railcars business while worldwide Shipping Containers and River Barges activity decreased in 2016.
Equipment sales increased by 23.4% to €94.7 million.
Sales to customers were up by 30.6%, driven by good performance in the 4 businesses. In particular, TOUAX is developing its sales business of used containers and new modules, and is continuing to rationalize its fleet of used modular buildings in some supplementary countries.
Sales to investors are also growing with more than 58,000 containers (20-foot equivalent) sold by the end of September 2016 compared to around 12,000 containers at the end of September 2015. However, this increased volume is not recorded under revenues of which only the sales margin is recorded in commission under IFRS standards, in certain cases.
Analysis of the contribution of the 4 Group's divisions
| Revenue by division (unaudited data, € thousands) | Q1 2016 | Q2 2016 | Q3 2016 | TOTAL | Q1 2015 | Q2 2015 | Q3 2015 | TOTAL |
| Leasing revenue (1) | 23 828 | 23 132 | 23 986 | 70 946 | 26 567 | 26 601 | 25 702 | 78 870 |
| Sales of equipment | 19 429 | 13 725 | 16 970 | 50 125 | 5 614 | 30 826 | 9 073 | 45 513 |
| Including sales to clients | 9 513 | 10 023 | 11 168 | 30 704 | 5 514 | 8 954 | 9 045 | 23 514 |
| Including sales to investors | 9 916 | 3 702 | 5 802 | 19 421 | 100 | 21 872 | 28 | 22 000 |
| Shipping containers | 43 257 | 36 857 | 40 956 | 121 071 | 32 181 | 57 427 | 34 775 | 124 383 |
| Leasing revenue (1) | 17 451 | 18 996 | 18 581 | 55 027 | 17 544 | 17 583 | 18 606 | 53 733 |
| Sales of equipment | 13 751 | 13 756 | 13 552 | 41 059 | 6 903 | 12 246 | 9 933 | 29 082 |
| Including sales to clients | 13 751 | 13 756 | 13 552 | 41 059 | 6 903 | 12 246 | 9 933 | 29 082 |
| Modular buildings | 31 202 | 32 752 | 32 132 | 96 086 | 24 447 | 29 829 | 28 539 | 82 815 |
| Leasing revenue (1) | 3 090 | 2 768 | 3 281 | 9 139 | 3 846 | 3 661 | 4 272 | 11 779 |
| Sales of equipment | 918 | 17 | 18 | 953 | 19 | 19 | 19 | 57 |
| Including sales to clients | 918 | 17 | 18 | 953 | 19 | 19 | 19 | 57 |
| River barges | 4 008 | 2 785 | 3 299 | 10 092 | 3 865 | 3 680 | 4 291 | 11 836 |
| Leasing revenue (1) | 9 102 | 9 191 | 9 318 | 27 611 | 7 566 | 8 220 | 8 251 | 24 037 |
| Sales of equipment | 174 | 2 323 | 55 | 2 552 | 272 | 279 | 1 511 | 2 062 |
| Including sales to clients | 174 | 2 323 | 55 | 2 552 | 272 | 279 | 1 511 | 2 062 |
| Including sales to investors | ||||||||
| Freight railcars | 9 276 | 11 514 | 9 373 | 30 163 | 7 838 | 8 521 | 9 762 | 26 099 |
| Miscellaneous and unallocated | (94) | (110) | (80) | (270) | (103) | (148) | (60) | (311) |
| Consolidated revenue | 87 653 | 83 809 | 85 680 | 257 142 | 68 228 | 99 309 | 77 308 | 244 823 |
(1) Leasing revenue includes ancillary services.
Shipping containers: Revenues in the division fell by 2.7% to €121.1 million (-2.5% with a constant dollar exchange rate) with a decline in leasing activity offset by higher sales. The decrease in leasing activity is due to lower utilisation rates during 2015. Since the beginning of 2016, the utilisation rate has increased again to reach 91.4% on 30 July 2016. Despite higher equipment syndications, more numerous in 2016, net sales revenue is falling due to the accounting method that only takes into account the margin of sales when buying/selling transactions are concurrent. Sales of used containers to customers remain very strong with an increase of 31%.
Modular Buildings: Revenues in the division increased by 16% to €96.1 million (17% at constant currency exchange rates). Leasing revenues have increased by 2.4% (€55 million) in most countries where we operate with quite marked increases in value in the main countries. There has been an increase in utilisation rates and leasing prices. Sales of new and used equipment remain high, confirming the recovery of the business, and increased by 41.2% to reach €41.1 million.
River Barges: Revenues in the River Barges division stood at €10.1 million, down due to lower activity on the Rhine. The barge leasing activity remains steady with an average utilisation rate of almost 92%. TOUAX has completed the refocusing of its barge leasing business by realizing the sale of its last pusher boat, with the Group now operating no more pusher boats or self-propelled barges.
Freight Railcars: Revenues in the Freight Railcars division increased by 15.5 % to €30.2 million. This increase is mainly explained by an increase in the fleet and strong leasing activity at the end of September 2016 compared to September 2015, with a growth of the business. In October 2016, Touax also announced the signing of a freight railcar portfolio syndication to SICAF-SIF TOUAX Investment SCA, sales that will be visible in the Group's annual revenues and which confirms the strategy to grow third-party asset management related to transport activities.
OUTLOOK
The combined effect of the global trade growth of about 3%, the recent rise in prices of raw materials and steel, and increases in the utilisation rate since April 2016, should benefit to the Shipping containers business.
The Modular buildings business continues its recovery with a strong performance in Germany and Eastern Europe, the improved utilisation rates already observed in 2015 and sales that are growing significantly.
Demand for River barges varies depending on the country, with low demand in South America, but increasing requirements in Europe.
The Freight Railcars leasing business in Europe continues to improve gradually enabling Touax to strengthen and develop third-party asset management.
Over the full year, the Group continued to implement its strategy to increase its operating cash flow with a stabilisation of its own assets, a growth in its assets under management for third parties and its improved utilisation rates, and is therefore predicting positive free cash for the year 2016.
TOUAX confirms an operating profit for the whole of the year 2016.
UPCOMING DATES
- 23 February 2017: 2016 revenue
- 29 March 2017: 2016 results
- 30 March 2017: Financial analyst presentation and conference call
TOUAX Group leases out tangible assets (shipping-containers, modular buildings, freight railcars and river barges) on a daily basis to more than 5 000 customers throughout the world, for its own account and on behalf of third party investors. With more than €1.8 billion under management, TOUAX is one of the European leaders in the operational leasing of this type of equipment.
TOUAX is listed in Paris on NYSE EURONEXT - Euronext Paris Compartment C (Code ISIN FR0000033003) and on the CAC® Small and CAC® Mid & Small indexes and in EnterNext PEA-PME.
For more information: www.touax.com
Contacts:
TOUAX ACTIFIN
Fabrice & Raphaël WALEWSKI Ghislaine GASPARETTO
Managing Partners ggasparetto@actifin.fr
touax@touax.com
www.touax.com Tel: +33 (0)1 56 88 11 11
Tel: +33 (0)1 46 96 18 00
