PRESS RELEASE  -  Paris, 23 February 2017 - 6 p.m.

 

TOUAX

YOUR OPERATIONAL LEASING SOLUTION

 

2016 ANNUAL REVENUE

  • Consolidated annual revenue at €363.5 million, up by 4.4%
  • Improvement in the Modular Buildings business (+16.6%)
  • 16.9% increase in sales
  • 2016 objectives confirmed for both positive operating profit and free cash

REVENUE ANALYSIS

Revenue by type

(unaudited data,
€ thousands)
Q1 2016 Q2 2016 Q3 2016 Q4 2016 TOTAL Q1 2015 Q2 2015 Q3 2015 Q4 2015 TOTAL
Leasing revenue (1) 53,380 53,987 55,086 57,041 219,494 55,420 55,938 56,749 56,867 224,975
Sales of equipment 34,273 29,822 30,594 49,361 144,050 12,808 43,371 20,537 46,549 123,265
Including sales to clients 24,357 26,120 24,792 36,640 111,909 12,708 21,499 20,509 35,402 90,118
Including sales to investors 9,916 3,702 5,802 12,720 32,141 100 21,872 28 11,147 33,147
Consolidated revenue 87,653 83,809 85 ;680 106,402 363,543 68,228 99,309 77,286 103,417 348,240

(1) Leasing revenue includes ancillary services.

Q4 2016 revenues grow by 2.9% with an important level of sales of modular buildings (+41%).

The consolidated revenue for the year 2016 increased by 4.4% to €363.5 million, driven in particular by a good momentum of the Modular Building and Freight railcar businesses. At constant exchange rates, revenues increased by 4.5% with low impact from exchange rates.

A detailed analysis shows leasing revenues of €219.5 million in 2016, slightly down (-2.4%). This decrease is explained mainly by a slowdown in the leasing activities of the Shipping container and River barge divisions which was not compensated by the other two businesses.

Equipment sales revenues increased by 16.9% to €144 million in 2016, driven by improved sales in the 4 divisions.

Revenue from sales to customers rose by 24.2%. In particular, TOUAX is developing its sales business of used containers and new modules, and is continuing to rationalise its fleet by selling used modular buildings in some supplementary countries.

Sales to investors are also growing with over 61,000 containers (20-foot equivalent) sold in 2016 compared to around 18,000 containers in 2015. However, only the sales margin is accounted for as commission in some cases in 2017 due to accounting standards and this therefore impacts revenue.

Analysis of the contribution of the 4 Group's divisions

Revenue by type

(unaudited data,
€ thousands)
Q1 2016 Q2 2016 Q3 2016 Q4 2016 TOTAL Q1 2015 Q2 2015 Q3 2015 Q4 2015 TOTAL
 

Leasing revenue (1)
23,828 23,132 23,986 25,647 96,594 26,567 26,601 25,702 25,541 104,411
Sales of equipment 19,429 13,725 16,970 16,166 66,290 5,614 30,826 9,073 20,671 66,184
Including sales to clients 9,513 10,023 11,168 11,762 42,466 5,114 8,954 9,045 11,558 35,072
Including sales to investors 9,916 3,702 5,802 4,403 23,824 100 21,872 28 9,113 31,113
Shipping containers 43,257 36,857 40,956 41,813 162,884 32,181 57,427 34,775 46,212 170,595
 

Leasing revenue (1)
17,451 18,996 18,581 18,150 73,177 17,544 17,583 18,606 18,776 72,509
Sales of equipment 13,751 13,756 13,552 24,342 65,401 6,903 12,246 9,933 17,310 46,392
Including sales to clients 13,751 13,756 13,552 24,342 65,401 6,903 12,246 9,933 17,310 46,392
Modular buildings 31,202 32,752 32,132 42,491 138,578 24,447 29,829 28,539 36,086 118,901
 

Leasing revenue (1)
3,090 2,768 3,281 3,707 12,846 3,846 3,661 4,272 4,261 16,041
Sales of equipment 918 17 18 71 1,024 19 19 19 341 399
Including sales to clients 918 17 18 71 1,024 19 19 19 341 399
River barges 4,008 2,785 3,299 3,778 13,870 3,865 3,681 4,292 4,602 16,440
 

Leasing revenue (1)
9,102 9,191 9,318 9,891 37,501 7,566 8,220 8,251 8,872 32,909
Sales of equipment 174 2 323 55 8,782 11,334 272 279 1,511 8,227 10,289
Including sales to clients 174 2 323 55 465 3,017 272 279 1511 6,193 8,255
Including sales to investors       8,317 8,317       2,034 2,034
Freight railcars 9,276 11,514 9,373 18,673 48,835 7,838 8,499 9,762 17,099 43,198
Miscellaneous and unallocated (90) (99) (80) (354) (624) (103) (126) (82) (583) (895)
                     
Consolidated revenue 87,653 83,809 85,680 106,402 363,543 68,228 99,309 77,286 103,417 348,240

(1) Leasing revenue includes ancillary services.

Shipping containers: Revenue in the division fell by 4.5% to €162.9 million (-4.6% with a constant dollar exchange rate) due to a decrease in rental activity following a contraction in rental rates over 2016. Sales revenue was down due to the accounting method that only takes into account the margin of sales when the buying/selling transactions are concurrent. Sales of used containers to customers remain very strong with an increase of 21%. The utilisation rate increased from the 2nd quarter of 2016 to reach 94% at end of December 2016 and continues to grow in 2017.

Modular Buildings: Revenue in the division increased by 16.6% to €138.6 million in 2016 (+17.3% at constant currency exchange rates). Leasing revenues increased slightly due to higher utilisation rates and rental rates combined with a rationalisation of the fleet. Equipment sales were very high particularly in Germany for new sales and in France for used sales. This results in a 41% increase for a total of €65.4 million on 31 December 2016.

River Barges: Revenue in the division totalled €13.9 million, down due to the lower activity on the Rhine while activity remained stable in the other basins. 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: Revenue in the Freight Railcars division rose by 13% to €48.9 million on 31 December 2016. This rise is explained by an increase in the fleet and improved utilisation rates in the rental business. During the last quarter, TOUAX achieved sales/syndication of materials for €8.9 million, explaining the increase in sales revenue of 10.2%.

The Group has continued its strategic review of assets and activities with the closure of its modular buildings business in Brazil and Central America, and of important sales of targeted non-leased assets.

TOUAX confirms the achievement of a positive operating profit and positive free cash for the year 2016.

OUTLOOK

Negative factors were reversed on the Shipping containers market with a significant increase in steel prices resulting in a de facto increase in leasing rates and prices of new and used containers. The current weakness of container production in China will generate a temporary shortage of equipment. The requirements for new equipment combined with global trade growth of about 3% should benefit the Shipping Containers business.

The Modular buildings business continues to have favourable activity in Germany and Eastern Europe, and 2016 marks the restart of the business in France with a positive balance of new equipment rental that is expected to continue in 2017, driven by the construction sites linked to the Grand Paris.

Demand for River barges varies depending on the country, with low demand in South America, but increasing requirements in Europe, particularly along the Seine.

The Freight Railcars leasing business in Europe continues to improve gradually enabling TOUAX to strengthen and develop third-party asset management.

The Group continues to implement a strategy of positive free cash, of stabilising its own assets and increasing its assets under management for third parties, enabling it to reduce its debt and improve its profitability.

UPCOMING DATES

  • 29 March 2017:             2016 results
  • 30 March 2017:             Financial analyst presentation and conference call
  • 15 May 2017:               Q1 2017 revenue
  • 21 June 2017:               Shareholders meeting

 

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

Fabrice & Raphaël Walewski

Managing partners

touax@touax.com

Tel: +33 (0)1 46 96 18 00

 

ACTIFIN

Ghislaine GASPARETTO

ggasparetto@actifin.fr

Tel: +33 (0)1 55 88 11 11