PRESS RELEASE                                                                                                                Paris, 22 February 2019 - 5.45 pm

YOUR OPERATIONAL LEASING SOLUTION

REVENUES FROM ACTIVITIES[1] 2018

  • Quarter on-quarter revenue growth (CQGR +3.5%in 2018) confirming the positive trend of the activities
  • Revenue from operations of €154.5 million (€158.4 million in 2018 on a like-for-like basis and with constant exchange rates)
  • Return to profitability of the transportation businesses is confirmed

ANALYSIS OF REVENUES FROM ACTIVITIES

During 2018 revenue from activities increased quarter-on-quarter (average quarterly growth rate: +3.5%) to reach €154.5 million and €158.4 million at constant scope and exchange rates compared with €169.7 million in 2017, a decrease of 6.6%.

Annual leasing revenues totalled €134.5 million (€138 million at constant scope and exchange rates), compared to €146.1 million in 2017. The Freight Railcar business recorded an increase in leasing revenues, with higher utilisation rates. Leasing revenues are down slightly for the River Barges division. The Containers activity recorded a decline due to currency effects and a reduction of the fleet following the disposals realised during 2017, which were not offset by the gradual recovery of investments in 2018 initiated after asset refinancing in June. The utilisation rate remains high.

Equipment sales amounted to €18.7 million (€19.2 million at constant exchange rates and scopes) compared with €20.9 million in 2017. The Containers division recorded a 14% rise in sales, having developed new container trading operations.

Syndication fees and capital gains not linked to recurring activities increased to €1.3 million of which €1 million is linked to syndication commissions, particularly the syndication of railcar portfolios to third parties of which Touax retains management.

Revenue from activities
(in € thousands)
Q1 2018 Q2 2018 Q3 2018 Q4 2018 TOTAL

2018
Q1 2017 Q2 2017 Q3 2017 Q4 2017 TOTAL

2017
Leasing revenues (*) 32,465 32,699 34,712 34,664 134,540 38,498 37,820 34,414 35,370 146,103
Sales of equipment (**) 3,558 4,728 4,622 5,841 18,749 3,424 3,428 2,957 11,136 20,944
Syndication commission and capital gains (***) 323 655 267 7 1,252 80 1,049 (2) 1,477 2,604
Total Revenue from activities 36,346 38,082 39,601 40,512 154,541 42,002 42,297 37,369 47,983 169,651
  (*) Leasing revenues include ancillary services.  

(**) Sales to end users of equipment belonging to the group are reported for the full price of the disposals on the Sales of Equipment line. The margin or capital gain realised is obtained by deducting the purchase cost from the sales.

Sales to end users of equipment belonging to third-party investors and managed by the Group are reported for their margin (sales commission) on the Sales of equipment line

(***) The capital gains shown on this line are capital gains not related to recurring equipment disposal activities.

Analysis of the contribution by division

Revenues from activities (in thousands of euros) Q1 2018 Q2 2018 Q3 2018 Q4 2018 TOTAL

2018
Q1 2017 Q2 2017 Q3 2017 Q4 2017 TOTAL 2017
Leasing revenues (*) 12,775 12,660 13,392 14,592 53,419 11,929 12,826 12,309 13,861 50,925
Sales of equipment (**) 100 789 (229) 1,565 2,225 598 982 135 3,260 4,975
Syndication commission (***)   662 25   687   1,050     1,050
Freight railcars 12,875 14,111 13,188 16,157 56,331 12,527 14,858 12,444 17,121 56,951
Leasing revenues (*) 3,029 2,798 3,613 2,996 12,436 3,699 3,560 3,624 3,457 14,340
Sales of equipment (**) 1,020   1,020 25 2,065 6 111 53 53 223
River Barges 4,049 2,798 4,633 3,021 14,501 3,705 3,671 3,677 3,510 14,563
Leasing revenues (*) 16,330 17,111 17,480 17,075 67,996 22,825 21,571 18,427 17,616 80,439
Sales of equipment (**) 1,746 2,062 2,030 2,227 8,065 1,833 1,681 1,315 2,243 7,072
Syndication commission (***) 309 5 9 (13) 310 76 (1) (2) (1) 72
Containers 18,385 19,178 19,519 19,290 76,372 24,734 23,251 19,740 19,859 87,583
Leasing revenues (1) 331 130 227   688 45 (137) 54 436 398
Sales of equipment 692 1,877 1,801 2,024 6,394 987 654 1,454 5,579 8,674
Other capital gains on disposal 14 (12) 233 20 255 4     1,478 1,482
Miscellaneous & Eliminations 1,037 1,995 2,261 2,044 7,337 1,036 517 1,508 7,493 10,554
                     
Total Revenue from activities 36,346 38,082 39,601 40,512 154,541 42,002 42,297 37,369 47,983 169,651
  (*) Leasing revenues include ancillary services.

(**)Sales to end users of equipment belonging to the group are reported for the full price of the disposals on the Sales of Equipment line. The margin or capital gain realised is obtained by deducting the purchase cost from the sales.

Sales to end users of equipment belonging to third-party investors and managed by the Group are reported for their margin (sales commission) on the Sales of equipment line

 

(***) The gains shown on this line are gains not related to recurring equipment disposal activities.

 

 
 

Freight railcars: The Freight Railcars business is the group's leading activity in terms of capital employed. At the end of December 2018, revenue from the Freight Railcar division totalled €56.3 million, stable compared with 2017. Over the year, leasing revenues increased by 4.9% to €53.4 million thanks to the improved utilisation rate (+3 points over the year, totalling an average of 84.9% over 2018 and reaching 86.9% in December 2018). Against the backdrop of a growing market, the Group has initiated leasing rate increases.

River Barges: Revenues for the River Barges division totalled €14.5 million, stable compared with 2017. Disposal operations worth €2 million offset the decrease in leasing revenues over the period due to a lack of dynamism of the South American market.

Containers: The Containers activity consists mainly of assets managed on behalf of third parties. Revenue from operations in the Containers division totalled €76.4 million (€79.7 million at constant scope and exchange rate effects) compared to €87.6 million in 2017.
Leasing revenues totalled €68 million in 2018 compared with €80.4 million in 2017 in a dynamic market with an average utilisation rate over the period reaching 98.7%. The decreasing leasing revenues follows effects of a change in scope, with 25% being explained by dollar exchange rate changes and the remainder by the smaller size of the fleet. Equipment sales amounted to €8.1 million, up 14% compared to 2017, with the division developing new container trading operations.

The miscellaneous line includes various re-invoicing and retained modular buildings sales activities in Africa, whose decrease in revenues results from a business in Algeria, in the process of being exited.

OUTLOOK

The increase in revenues throughout the year marks the positive trend in the business. A trend that is expected to continue in 2019.

In fact, the demand for rail freight transport continues to grow in Europe, thus pushing demand for freight railcar leasing, especially in the intermodal transport segment for which Touax is the second largest player in Europe and demand for containers remains high with global GDP growth expected to reach 3.5%.

The Group is therefore confident in its objective of returning to profitability in its transport activities as this is already visible in the improvement of leasing revenues since the beginning of the year.

UPCOMING DATES

  • 28 March 2019:                        2018 Annual Results - SFAF Presentation
  • 29 March 2019:                         2018 Annual Results Conference call
  • 15 May 2019:                           Revenue from operations 1st quarter 2019

The TOUAX Group leases tangible assets (freight railcars, river barges and containers) every day across the world, for its own account and on behalf of investors. With nearly €1.2 billion under management, TOUAX is a European leader in the leasing of this type of equipment.

TOUAX is listed in Paris on EURONEXT - Euronext Paris Compartment C (ISIN code FR0000033003) and is included in the CAC® Small, CAC® Mid & Small and EnterNext©PEA-PME 150 indices.

For more information: www.touax.com

Your contacts:

TOUAX                                                                                                                                    ACTIFIN
Fabrice and Raphaël WALEWSKI                                                                            Ghislaine Gasparetto
Managing Directors
touax@touax.com                                                                                               ggasparetto@actifin.fr
www.touax.com                                                                                                    Tel: +33 1 56 88 11 11
Tel: +33 1 46 96 18 00                                                                                                                           
                                                                                                                                                           



[1] IFRS 15 "Revenue from Contracts with Customers" came into effect on 1 January 2018. The application of this standard concerns presentation elements that have no impact on margins. Syndication commissions and sales of used equipment owned by investors are now presented as revenue from operations. The 2017 figures have been restated in accordance with IFRS 15 to allow comparability.