Touax: Steady activity since the beginning of the year

PRESS RELEASE        Paris, November 14, 2023 – 5.45 p.m.

YOUR OPERATIONAL LEASING SOLUTION FOR SUSTAINABLE TRANSPORTATION

Steady activity since the beginning of the year

  • Revenue of €116.5 million in the first nine months of the year
  • 5% increase of leasing revenue
  • Decrease of sales activity (-3.4%) following the price normalisation in the Containers business

The Group's sales once again resist in a more uncertain global economic environment thanks to its business model based on long-term contracts and diversification.

At the end of the third quarter, total restated revenue from activities amounted to €116.5 million (€117.9 million at constant scope and currency1), compared with €120.2 million in the same period in 2022, a -€3.7 million decrease due to the price normalisation in the containers market.

Restated Revenue from activities* Q1 2023  Q2 2023  Q3 2023  9M 2023  Q1 2022  Q2 2022  Q3 2022  9M 2022  Variation 
(in € thousand)
Leasing revenue on owned equipment 17,139 17,510 17,412 52,061 15,509 16,909 17,178 49,596 2,465
Ancillary services 5,030 4,271 5,299 14,600 5,732 4,884 7,390 18,006 -3,406
Total leasing activity 22,169 21,781 22,711 66,661 21,241 21,793 24,568 67,602 -941
Sales of owned equipment 13,053 16,895 13,024 42,972 14,862 14,249 15,392 44,503 -1,531
Total sales of equipment 13,053 16,895 13,024 42,972 14,862 14,249 15,392 44,503 -1,531
Total of owned activity 35,222 38,676 35,735 109,633 36,103 36,042 39,960 112,105 -2,472
Syndication fees 0 544 -2 542 0 2,522 65 2,587 -2,045
Management fees 1,021 1,018 1,024 3,063 978 986 1,083 3,047 16
Sales fees 861 1,710 674 3,245 336 1,349 801 2,486 759
Total of management activity 1,882 3,272 1,696 6,850 1,314 4,857 1,949 8,120 -1,270
Other capital gains on disposals 1 1 -1 1 0 0 6 6 -5
Total Others 1 1 -1 1 0 0 6 6 -5
Total Restated Revenue from activities 37,105 41,949 37,430 116,484 37,417 40,899 41,915 120,231 -3,747

(*) The key indicators in the Group’s activity report are presented differently from the IFRS income statement, to enable an understanding of the activities’ performance. As such, no distinction is made in third-party management, which is presented solely in agent form.

This presentation therefore allows a direct reading of syndication fees, sales commissions, and management fees.

This presentation has no impact on EBITDA, operating income, or net income. The accounting presentation of revenue from activities is presented in the appendix to the press release.

Owned activities amounted to €109.6 million in the first nine months of the year, including:

  • €52.1 million for Leasing revenue on owned equipment (+€2.5 million);
  • €14.6 million for Ancillary services, down by -€3.4 million year-on-year due to normalisation on the container market in particular on pick-up charges;
  • €43.0 million for Sales of owned equipment, a decrease of -€1.5 million year-on-year impacted by container price normalisation but partly compensated by Freight Railcars’ and Modular Building’s performance.

As a reminder, the container business witnessed an exceptional price increase during the global pandemic until 2022, generating a temporary increase in revenues from ancillary services (i.e pick-up charges) and sales of equipment. The normalisation of the market and prices, which have returned to pre-pandemic levels, leads to a decline and therefore a “back to normal” situation of ancillary services and sales.

Management activity amounts to €6.9 million during the 9-months period. Management fees remain stable and sales fees increase supported by more sales volume, while syndication fees decrease as the Group retains equipment on its balance sheet for longer.

The increase of Leasing revenue on owned equipment and the slight decrease of Sales of owned assets demonstrate the resilience of the Group’s business model. Long-term contract brings recurring revenues. Thanks to business diversification (Freight Railcars, River Barges, Containers, Modular Buildings), the impact of markets changes are limited. This year the container normalisation is offset by the performance of other business lines. With the management activity, the Group can also outsource some risks and generate commissions.

ANALYSIS OF CONTRIBUTIONS BY DIVISION

The Freight Railcars activity rose to €42.6 million (+5.3%) in the first nine months:

  • Owned activity expanded by +€2.3 million, resulting from both a +4.9% increase in leasing revenue from owned equipment (+€1.6 million), and a +€1.1 million increase of ancillary services related to re-invoicing of wagon repairs.

The increase in leasing revenue is driven by a better utilisation rate (88.7% versus 87.1% over the same period in 2022) and an improved daily leasing rate (+11% in average); newly acquired railcars are also on lease.

  • Management activity was however down during the period, due to the lack of syndication fees (assets are kept longer on the balance sheet, so no syndication fee was issued) and despite increasing management fees (+€0.25 million).

The River Barges activity saw a boost in leasing revenue of +7% in a business context where the utilisation rate has been 100% since early 2023. However, the Division revenue was down by -€1.8 million due to a decrease of ancillary services related to the chartering activity on the Rhine River basin (also leading to a reduction in operating expenses for an almost equivalent level).

The Containers activity posted a slowdown of -€11.5 million (-18.8%) compared with the same period in 2022, impacted by the normalisation in the Container business observed since the beginning of 2023 and mainly affecting ancillary services and sales of owned equipment. Nevertheless, the leasing revenue on owned equipment slightly increased by +€0.5 million despite a lower utilisation rate (94.8% vs. 98.1% during the 9-months 2022 period). The high production of new containers during the pandemic is generating a counter-cycle in 2023. With the redelivery of old containers and a very low production of new assets, the market overcapacity should be absorbed between now and the end of the year. This counter-cycle is combined with a normalisation of container prices and will have a beneficial effect on market stability.

In this context, sales of owned equipment declined by -€8.6 million (-22.2%) owing to a primary container trading market less dynamic along with the price drop. Ancillary services, high in 2022 with pick-up charges linked to trading, followed the same path and decreased by -€2.3 million over the 9-months period. Management activity also decreased by -€1.1 million, as a result of the -€1.6 million decline in syndication fees. However, with a larger volume of containers available for sale on the secondary market, sales fees on containers owned by investors rose by +€0.8 million to end September 2023.

The Modular Buildings activity presented on the "Miscellaneous" line rose sharply to €12.5 million (+€7.4 million year on year). TOUAX produced and delivered a large number of orders received at the start of 2023, after a low point in 2022 when the pandemic ended.

Restated Revenue from activities Q1 2023  Q2 2023  Q3 2023  9M 2023  Q1 2022  Q2 2022  Q3 2022  9M   2022  Variation 
(in € thousand)
Leasing revenue on owned equipment 11,124 11,615 11,856 34,595 10,544 11,142 11,292 32,978 1,617
Ancillary services 1,938 1,937 2,082 5,957 1,858 1,177 1,820 4,855 1,102
Total leasing activity 13,062 13,552 13,938 40,552 12,402 12,319 13,112 37,833 2,719
Sales of owned equipment 76 132 133 341 110 238 369 717 -376
Total sales of equipment 76 132 133 341 110 238 369 717 -376
Total of owned activity 13,138 13,684 14,071 40,893 12,512 12,557 13,481 38,550 2,343
Syndication fees 0 0 0 0 0 446 1 447 -447
Management fees 538 553 586 1,677 466 451 507 1,424 253
Total of management activity 538 553 586 1,677 466 897 508 1,871 -194
Total Freight railcars 13,676 14,237 14,657 42,570 12,978 13,454 13,989 40,421 2,149
Leasing revenue on owned equipment 1,878 1,886 1,880 5,644 1,619 1,789 1,869 5,277 367
Ancillary services 2,072 1,629 2,090 5,791 1,807 2,385 3,788 7,980 -2,189
Total leasing activity 3,950 3,515 3,970 11,435 3,426 4,174 5,657 13,257 -1,822
Sales of owned equipment 0 5 0 5 0 0 0 0 5
Total sales of equipment 0 5 0 5 0 0 0 0 5
Total of owned activity 3,950 3,520 3,970 11,440 3,426 4,174 5,657 13,257 -1,817
Management fees 11 14 20 45 14 5 11 30 15
Total of management activity 11 14 20 45 14 5 11 30 15
Total River Barges 3,961 3,534 3,990 11,485 3,440 4,179 5,668 13,287 -1,802
Leasing revenue on owned equipment 4,133 4,004 3,671 11,808 3,342 3,973 4,013 11,328 480
Ancillary services 1,020 705 1,127 2,852 2,070 1,325 1,779 5,174 -2,322
Total leasing activity 5,153 4,709 4,798 14,660 5,412 5,298 5,792 16,502 -1,842
Sales of owned equipment 10,211 10,949 8,994 30,154 13,205 12,575 12,967 38,747 -8,593
Total sales of equipment 10,211 10,949 8,994 30,154 13,205 12,575 12,967 38,747 -8,593
Total of owned activity 15,364 15,658 13,792 44,814 18,617 17,873 18,759 55,249 -10,435
Syndication fees 0 544 -2 542 0 2,076 64 2,140 -1,598
Management fees 472 451 418 1,341 498 530 565 1,593 -252
Sales fees 861 1,710 674 3,245 336 1,349 801 2,486 759
Total of management activity 1,333 2,705 1,090 5,128 834 3,955 1,430 6,219 -1,091
Total Containers 16,697 18,363 14,882 49,942 19,451 21,828 20,189 61,468 -11,526
Leasing revenue on owned equipment 4 5 5 14 4 5 4 13 1
Ancillary services 0 0 0 0 -3 -3 3 -3 3
Total leasing activity 4 5 5 14 1 2 7 10 4
Sales of owned equipment 2,766 5,809 3,897 12,472 1,547 1,436 2,056 5,039 7,433
Total sales of equipment 2,766 5,809 3,897 12,472 1,547 1,436 2,056 5,039 7,433
Total of owned activity 2,770 5,814 3,902 12,486 1,548 1,438 2,063 5,049 7,437
Other capital gains on disposals 1 1 -1 1 0 0 6 6 -5
Total Others 1 1 -1 1 0 0 6 6 -5
Total Miscellaneous and eliminations 2,771 5,815 3,901 12,487 1,548 1,438 2,069 5,055 7,432
                   
Total Restated Revenue from activities 37,105 41,949 37,430 116,484 37,417 40,899 41,915 120,231 -3,747

OUTLOOK

TOUAX pursues its strategy and continues to roll out its operational leasing solutions for sustainable transportation, thanks to a resilient business model and recurring revenues based on long-term contracts.

TOUAX's activities should keep benefiting from the growing awareness of major industrial and large logistics groups on the need to decarbonise their transport activities (responsible for 30% of global CO2 emissions).

With a unique expertise in intermodal, rail and inland waterway transport, TOUAX benefits from a main position in sustainable transport, and is thereby contributing to environmental protection by providing a low-carbon way of transportation and a high standard of compliance with best social and governance practices. The latest extra-financial rating published by EcoVadis on 31 October 2023 demonstrates a clear improvement. TOUAX was awarded the EcoVadis 2023 Gold Medal and now belongs to the top 5% of companies in all sectors.

UPCOMING DATES

  • 21 March 2024: Press Release on 2023 annual results (French / English)
  • 21 March 2024: Presentation of 2023 annual results in Paris (in French)
  • 22 March 2024: Presentation of 2023 annual results (video conference in English)

The TOUAX Group leases tangible assets (freight railcars, river barges and containers) every day throughout the world on its own behalf and on behalf of investors. With €1.2 billion under management, TOUAX is one of Europe's leading leasing companies for this type of equipment.TOUAX is listed in Paris on EURONEXT 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        SEITOSEI ● ACTIFINFabrice & Raphaël WALEWSKI        Ghislaine Gasparettotouax@touax.com        ggasparetto@actifin.frwww.touax.com        Tel : +33 1 56 88 11 22 +33 1 46 96 18 00        

        

APPENDIX: Accounting presentation of revenue from activities

Revenue from activities Q1 2023  Q2 2023  Q3 2023  9M 2023  Q1 2022  Q2 2022  Q3 2022  9M   2022 
(in € thousand)
Leasing revenue on owned equipment 17,139 17,510 17,412 52,061 15,509 16,909 17,178 49,596
Ancillary services 6,436 5,201 6,238 17,875 6,578 8,632 8,886 24,096
Total leasing activity 23,575 22,711 23,650 69,936 22,087 25,541 26,064 73,692
Sales of owned equipment 13,053 16,895 13,024 42,972 14,862 14,249 15,392 44,503
Total sales of equipment 13,053 16,895 13,024 42,972 14,862 14,249 15,392 44,503
Total of owned activity 36,628 39,606 36,674 112,908 36,949 39,790 41,456 118,195
Leasing revenue on managed equipment 9,485 9,418 8,866 27,769 10,819 10,917 11,382 33,118
Syndication fees 0 544 -2 542 0 2,522 65 2,587
Management fees 372 380 397 1,149 270 286 364 920
Sales fees 861 1,710 674 3,245 336 1,349 801 2,486
Total of management activity 10,718 12,052 9,935 32,705 11,425 15,074 12,612 39,111
Other capital gains on disposals 1 1 -1 1 0 0 6 6
Total Others 1 1 -1 1 0 0 6 6
Total Revenue from activities 47,347 51,659 46,608 145,614 48,374 54,864 54,074 157,312

Table showing the transition from summary accounting presentation to restated presentation:

Revenue from activities 9M 2023  Restatement  9M 2023 restated  9M 2022  Restatement  9M 2022 restated 
(in € thousand)
Leasing revenue on owned equipment 52,061   52,061 49,596   49,596
Ancillary services 17,875 -3,275 14,600 24,096 -6,090 18,006
Total leasing activity 69,936 -3,275 66,661 73,692 -6,090 67,602
Sales of owned equipment 42,972   42,972 44,503   44,503
Total sales of equipment 42,972   42,972 44,503   44,503
Total of owned activity 112,908 -3,275 109,633 118,195 -6,090 112,105
Leasing revenue on managed equipment 27,769 -27,769 0 33,118 -33,118 0
Syndication fees 542   542 2,587   2,587
Management fees 1,149 1,914 3,063 920 2,127 3,047
Sales fees 3,245   3,245 2,486 0 2,486
Total of management activity 32,705 -25,855 6,850 39,111 -30,991 8,120
Other capital gains on disposals 1   1 6   6
Total Others 1 0 1 6 0 6
Total Revenue from activities 145,614 -29,130 116,484 157,312 -37,081 120,231

1 Based on a comparable structure and average exchange rates at 30 September 2022.

Attachment

  • TOUAX PR Q3 2023 vf
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