PRESS RELEASE - Paris, 15 November 2017- 6 p.m.
TOUAX
YOUR OPERATIONAL LEASING SOLUTION
REVENUE FOR Q3 2017[1]
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REVENUE ANALYSIS
| Revenue by type (unaudited data, € thousands) | Q1 2017 | Q2 2017 | Q3 2017 | TOTAL | Q1 2016 | Q2 2016 | Q3 2016 | TOTAL |
| Leasing revenue (1) | 38,498 | 37,820 | 34,414 | 110,733 | 36,130 | 35,202 | 36,648 | 107,980 |
| Sales of equipment | 15,070 | 31,123 | 5,679 | 51,872 | 22,538 | 17,623 | 17,585 | 57,747 |
| Including sales to clients | 8,947 | 8,324 | 5,842 | 23,113 | 12,622 | 13,921 | 11,783 | 38,326 |
| Including sales to investors | 6,123 | 22,799 | (163) | 28,760 | 9,916 | 3,702 | 5,802 | 19,421 |
| Consolidated revenue | 53,568 | 68,943 | 40,093 | 162,605 | 58,668 | 52,825 | 54,233 | 165,726 |
(1) Leasing revenue includes ancillary services.
Combined consolidated revenue at the end of September 2017 from retained operations amounted to €162.6 million, compared with €165.7 million in 2016 (-1.9%). At constant scope and exchange rates, revenue decreased by 7.9% with the effect of the dollar.
Leasing revenue continued to grow to €110.7 million (+2.6%), with higher revenue from the River Barges and Freight Railcars businesses. The Shipping Containers business recorded a drop mainly due to currency effects and the reduction in the fleet following the significant sales of used containers in 2016. The market recovered strongly in 2017 and the utilization rate increased significantly, but could not fully offset the effects of 2016.
Sales to customers were down to €23.1 million, with used container sales dropping sharply in 2017 in the context of the market previously mentioned with the significant recovery in the leasing market and utilisation rate. Sales to investors increased by 48.1% with the syndication of railcars to a Luxembourg investment fund carried out during the 2nd quarter.
Analysis of the contribution of the 3 Group's divisions
| Revenue by division (unaudited data, € thousands) | Q1 2017 | Q2 2017 | Q3 2017 | TOTAL | Q1 2016 | Q2 2016 | Q3 2016 | TOTAL |
| Leasing revenue (1) | 11,929 | 12,826 | 12,309 | 37,064 | 9,102 | 9,191 | 9,318 | 27,611 |
| Sales of equipment | 598 | 24,038 | 135 | 24,771 | 178 | 2,333 | 70 | 2,582 |
| Including sales to clients | 434 | 1,139 | 135 | 1,708 | 178 | 2,333 | 70 | 2,582 |
| Including sales to investors | 164 | 22,899 | 23,063 | |||||
| Freight railcars | 12,527 | 36,864 | 12,444 | 61,835 | 9,280 | 11,524 | 9,388 | 30,193 |
| Leasing revenue (1) | 3,699 | 3,560 | 3,624 | 10,883 | 3,089 | 2,768 | 3,281 | 9,139 |
| Sales of equipment | 6 | 111 | 52 | 169 | 918 | 18 | 18 | 953 |
| Including sales to clients | 6 | 111 | 52 | 169 | 918 | 18 | 18 | 953 |
| River barges | 3,705 | 3,671 | 3,676 | 11,053 | 4,007 | 2,786 | 3,299 | 10,092 |
| Leasing revenue (1) | 22,824 | 21,572 | 18,427 | 62,822 | 23,828 | 23,132 | 23,986 | 70,946 |
| Sales of equipment | 13,480 | 6,320 | 4,037 | 23,837 | 19,429 | 13,725 | 16,970 | 50,125 |
| Including sales to clients | 7,520 | 6,420 | 4,200 | 18 140 | 9,513 | 10,023 | 11,168 | 30,704 |
| Including sales to investors | 5,960 | -100 | -163 | 5,697 | 9,916 | 3,702 | 5,802 | 19,421 |
| Shipping containers | 36,304 | 27,892 | 22,464 | 86,659 | 43,257 | 36,857 | 40,956 | 121,071 |
| Leasing revenue (1) | 45 | -137 | 54 | -38 | 111 | 111 | 62 | 284 |
| Sales of equipment | 987 | 653 | 1,454 | 3,095 | 2,013 | 1,547 | 527 | 4,087 |
| Including sales to clients | 987 | 653 | 1,454 | 3,095 | 2,013 | 1,547 | 527 | 4,087 |
| Miscellaneous and unallocated | 1,032 | 516 | 1,508 | 3,057 | 2,124 | 1,658 | 589 | 4,371 |
| Consolidated revenue | 53,568 | 68,943 | 40,093 | 162,605 | 58,668 | 52,825 | 54,233 | 165,726 |
(1) Leasing revenue includes ancillary services.
Freight Railcars: The Freight Railcars business is the activity in which the Group has made the most of owned investment. Revenues for the Freight Railcars division increased by 104.8% from €30.2 million in September 2016 to €61.8 million at the end of September 2017, mainly due to higher leasing revenues and a syndication to investors. Leasing revenues increased by €9.5 million (or +34.2%) to €37.1 million in September 2017 due to the full consolidation of an asset-holding subsidiary. At the end of September, the average utilisation rate continues to rise in a moderately growing market.
River Barges: Revenues from the River Barges division amounted to €11.1 million, an increase of 9.5%, with increased activity on the Rhine despite the lack of sales.
Shipping Containers: The Shipping Containers business consists mainly of assets managed on behalf of third parties. The leasing market recovered strongly in 2017, with a utilization rate that reached 98.8% on
30 September 2017. Revenue from the Shipping Containers division fell to €86.7 million, mainly due to changes of scope. Half of the drop in leasing revenue in 2017 is due to a lower dollar and the balance is due to a decrease in the fleet and the bankruptcy in 2016 of the 7th largest shipowner Hanjin. Sales were down in 2017 with lower syndication volumes and lower second-hand sales.
The retained activity of modular buildings sales in Africa grouped under "miscellaneous" shows an improvement in 3rd quarter which will continue until the end of the year.
OUTLOOK
European markets should continue to favour the growth of river barges and freight railcars leasing activities on the continent. The shortage of shipping containers appears to be continuing and will favour the high leasing level of our equipment.
The sale of the modular businesses will enable the Group to resume an investment and growth phase in a positive market context.
TOUAX confirms an operating profit for the full year 2017.
UPCOMING DATES
TOUAX Group leases out tangible assets (freight railcars, river barges and shipping-containers) on a daily basis throughout the world, for its own account and on behalf of third party investors. With close to €1.3 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 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
[1] In accordance with IFRS 5, European and US Modular Buildings activities are presented as discontinued operations. In practice, revenues and expenses have been treated as follows: