PRESS RELEASE - Paris, 23 February 2017 - 6 p.m.
TOUAX
YOUR OPERATIONAL LEASING SOLUTION
2016 ANNUAL REVENUE
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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
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
Tel: +33 (0)1 46 96 18 00
ACTIFIN
Ghislaine GASPARETTO
ggasparetto@actifin.fr
Tel: +33 (0)1 55 88 11 11