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Touax: Growth in revenue from activities at September 30, 2020

TOUAX
·9-min read

PRESS RELEASE Paris, November 13, 2020 – 5.45 p.m.

YOUR OPERATIONAL LEASING SOLUTION FOR SUSTAINABLE TRANSPORTATION

Growth in revenue from activities at September 30, 2020

ANALYSIS OF REVENUE FROM ACTIVITIES

Revenue from activities in Q3 2020 reached €43.3 million versus €40.2 million in Q3 2019, an increase of 7.8%.
Revenue from activities over the first nine months of the year reached €124.6 million (€125.5 million at constant scope and currency2) compared with €119.6 million in 2019, an increase of 4.1%. The impact of the health crisis was limited.

This performance was primarily driven by a 7.0% increase in leasing revenue on owned equipment (€39.5 million) and by strong equipment sales of €27.8 million versus €19.0 million in the first nine months of 2019. The decrease in leasing revenue on managed equipment mainly stemmed from a reduction in the fleet linked to sales of equipment belonging to third party investors, and the impact of exchange rate variations.

Syndication fees and capital gains not linked to recurring activities came to €0.5 million, compared with €0.8 million a year earlier.

Revenue from activities
(in € thousands)

Q1 2020

Q2 2020

Q3 2020

TOTAL

Q1 2019

Q2 2019

Q3 2019

TOTAL

Leasing revenue on owned equipment

13,305

13,253

12,912

39,470

11,641

12,243

13,008

36,892

Leasing revenue on managed equipment

14,889

14,005

13,159

42,053

16,541

16,038

15,179

47,758

Ancillary services

4,708

4,593

5,480

14,781

4,594

4,876

5,726

15,196

Total leasing activity

32,902

31,851

31,551

96,304

32,776

33,157

33,913

99,846

Sales of owned equipment

5,872

7,217

10,916

24,005

3,271

6,925

4,604

14,800

Margins on sale of managed equipment

2,134

876

793

3,803

831

1,697

1,625

4,153

Total sales of equipment

8,006

8,093

11,709

27,808

4,102

8,622

6,229

18,953

Fees on syndication and other capital gains on disposals

247

232

13

492

389

449

8

846

Total revenue from activities

41,155

40,176

43,273

124,604

37,267

42,228

40,150

119,645

ANALYSIS OF CONTRIBUTIONS BY DIVISION

Revenue from activities
(in € thousands)

Q1 2020

Q2 2020

Q3 2020

TOTAL

Q1 2019

Q2 2019

Q3 2019

TOTAL

Leasing revenue on owned equipment

9,182

9,140

8,910

27,232

8,536

9,240

8,994

26,770

Leasing revenue on managed equipment

4,024

3,955

4,053

12,032

3,422

3,507

3,453

10,382

Ancillary services

1,645

2,138

1,849

5,632

1,437

2,141

1,965

5,543

Total leasing activity

14,851

15,233

14,812

44,896

13,395

14,888

14,412

42,695

Sales of owned equipment

939

662

354

1,955

88

61

677

826

Total sales of equipment

939

662

354

1,955

88

61

677

826

Fees on syndication

214

232

446

Freight railcars

16,004

16,127

15,166

47,297

13,483

14,949

15,089

43,521

Leasing revenue on owned equipment

1,533

1,520

1,656

4,709

1,523

1,650

1,644

4,817

Ancillary services

1,349

544

1,162

3,055

1,317

1,243

1,601

4,161

Total leasing activity

2,882

2,064

2,818

7,764

2,840

2,893

3,245

8,978

Sales of owned equipment

42

42

Total sales of equipment

42

42

River barges

2,882

2,064

2,818

7,764

2,882

2,893

3,245

9,020

Leasing revenue on owned equipment

2,577

2,582

2,335

7,494

1,558

1,331

2,356

5,245

Leasing revenue on managed equipment

10,865

10,050

9,105

30,020

13,119

12,531

11,726

37,376

Ancillary services

1,663

2,040

2,470

6,173

1,818

1,490

2,168

5,476

Total leasing activity

15,105

14,672

13,910

43,687

16,495

15,352

16,250

48,097

Sales of owned equipment

4,065

4,192

6,343

14,600

1,833

3,009

3,416

8,258

Margins on sales of managed equipment

2,134

876

793

3,803

831

1,697

1,625

4,153

Total sales of equipment

6,199

5,068

7,136

18,403

2,664

4,706

5,041

12,411

Fees on syndication

18

13

31

389

(7)

8

390

Containers

21,322

19,740

21,059

62,121

19,548

20,051

21,299

60,898

Leasing revenue on owned equipment

13

11

12

36

24

22

14

60

Ancillary services

51

(129)

(1)

(79)

22

2

(8)

16

Total leasing activity

64

(118)

11

(43)

46

24

6

76

Sales of owned equipment

868

2,363

4,219

7,450

1,308

3,855

511

5,674

Total sales of equipment

868

2,363

4,219

7,450

1,308

3,855

511

5,674

Other capital gains on disposal

15

15

456

456

Miscellaneous and eliminations

947

2,245

4,230

7,422

1,354

4,335

517

6,206

Total revenue from activities

41,155

40,176

43,273

124,604

37,267

42,228

40,150

119,645

Revenue from the Freight Railcars division reached €47.3 million in the first nine months of the year versus €43.5 million in 2019, an increase of 8.7%.

  • Leasing revenue increased by 5.2% to €44.9 million over the period, thanks to an increase in lease rates which offset the decline in utilization rates (84.6% on average over the period compared with 88.4% a year earlier).

  • Sales of freight railcars and syndication margins increased, notably with disposals to investors, while Touax maintained management of the equipment.

Revenue from the River Barges division reached €7.8 million over the period, compared with €9.0 million during the first nine months of 2019, with a lower freight rate but an average utilization rate that increased over the period to 95.7%.

Revenue from the Containers division reached €62.1 million at the end of September 2020, an increase of 2.0%. The average utilization rate over the period was 95.8% compared with 97.5% over the first nine months of 2019, showing good resilience.

  • The investment strategy conducted over the past two years has led to growth of 42.9% in leasing revenue on owned equipment to €7.5 million (€7.5 million at constant currency, up 43.0%). As expected, leasing revenue from managed equipment declined to €30.0 million due to equipment disposals.

  • Buoyant trading activity generated growth in container sales to €18.4 million at 30 September 2020 versus €12.4 million over the first nine months of 2019.

Lastly, revenue from the sale of Modular Buildings in Africa, which is booked under "Miscellaneous", increased to €7.5 million for the period, with major deliveries completed during the third quarter.

OUTLOOK

Despite the current health crisis, Touax saw continued growth with positive results in the first half of the year and a 4.1% increase in revenue in the first nine months of the year. Its three long-term equipment leasing businesses in sustainable, environmentally-friendly transportation enabled the Group to show the resilience of its business model in the current context of Covid-19.

After growth of 1.5% in 2019, the European rail freight market is expected to show a contraction of 7% (source: UIRR – growth in intermodal transport via rail), followed by a rebound in 2021. Touax Rail plans to forge ahead with its development, drawing on its new financing sources in a market that offers investment opportunities in certain types of railcars and in the fleets of clients looking to outsource ownership and maintenance. Touax Rail could also benefit from government stimulus plans in rail freight in Europe and Asia.

River transportation should continue to benefit from the effects of progress in the ecological transition, underpinned by strong demand for equipment on the Seine (transport of aggregates for construction sites in Greater Paris), and on the Rhine (transport of grain and biomass).

Concerning the containers division, international freight transport held up well in the first half of the year and indicators show a stronger recovery in the third quarter of 2020, notably in Asia (source: IMF Global economic outlook, October 2020). The recovery of the Asian markets and recent increases in new container prices are underpinning the trading activity in new and used containers, which significantly complements the leasing activity.

From a structural and medium to long-term perspective, Europe's Green Deal, together with the various infrastructure sector recovery drives announced by governments and the tendency towards outsourcing should continue to underpin investment in our asset classes.

UPCOMING EVENTS

  • February 26, 2021: 2020 Revenue from activities

  • March 24, 2021: 2020 annual results – SFAF presentation

  • March 26, 2021: Conference call to present the annual results

TOUAX Group leases out tangible assets (freight railcars, river barges and containers) on a daily basis worldwide, both on its own account and for investors. With nearly €1.1bn in assets under management, TOUAX is one of the leading European players in the leasing of such equipment.

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

For further information please visit: www.touax.com

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



1 Revenue corresponds to revenue from activities that generate leasing revenue, sales of equipment, syndication fees and other capital gains.


2 Based on a comparable structure and average exchange rates over the first nine months of 2019.


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