Achieves Double Digit Services Margins and Raises Annual Guidance
Fully Recovered Workforce Exceeds Pre-Covid Productivity
“Our significant investments in our ERP infrastructure are showing early positive returns, resulting in improved revenue recognition and better variable cost management, and are delivering sustainable returns in line with our previously disclosed expectations. Additionally, our collaborations with CPKC and
First Quarter 2024 Highlights
- Total revenue of
$665.0 million , a 1.7% change from$676.5 million in Q1 2023. - Total NOI increased 12.4% to
$210.8 million from$187.6 million in Q1 2023. - Net income of
$9.8 million , or$0.03 per diluted common share. - Core FFO of
$77.3 million , or$0.27 per diluted common share. - AFFO of
$104.9 million , or$0.37 per diluted common share. Global Warehouse segment same store revenue decreased 0.7% on an actual basis, or increased 0.8% on a constant currency basis.Global Warehouse segment same store NOI increased 8.6%, or 10.1% on a constant currency basis.- Broke ground on two developments in
Kansas City, Missouri , andDubai with our two strategic partners, CPKC andDP World . - Announced expansion project in
Sydney, Australia , for$36 million , anchored by one of the country’s largest grocers. This expansion consists of 2.8 million cubic feet and 13,000 pallet positions.
2024 Outlook
The table below includes the details of our annual guidance. The Company’s guidance is provided for informational purposes based on current plans and assumptions and is subject to change. The ranges for these metrics do not include the impact of acquisitions, dispositions, or capital markets activity beyond that which has been previously announced.
As of | As of | |
Warehouse segment same store revenue growth (constant currency) | 2.5% - 5.5% | 2.5% - 5.5% |
Warehouse segment same store NOI growth (constant currency) | 700 - 750 bps higher than associated revenue | 400 - 450 bps higher than associated revenue |
Warehouse segment non-same store NOI | ||
Transportation and Managed segment NOI | ||
Total selling, general and administrative expense (inclusive of share-based compensation expense of | ||
Interest expense | ||
Current income tax expense | ||
Deferred income tax benefit | ||
Non real estate depreciation and amortization expense | ||
Total maintenance capital expenditures | ||
Development starts(1) | ||
AFFO per share | ||
Assumed FX rates | 1 AUS = 1 PLN = | 1 AUS = 1 PLN = |
Investor Webcast and Conference Call
The Company will hold a webcast and conference call on
The conference call can also be accessed by dialing 1-877-407-3982 or 1-201-493-6780. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID#13743082. The telephone replay will be available starting shortly after the call until
The Company’s supplemental package will be available prior to the conference call in the Investors section of the Company’s website at http://ir.americold.com.
During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.
First Quarter 2024 Total Company Financial Results
Total revenue for the first quarter of 2024 was
Total NOI for the first quarter of 2024 was
For the first quarter of 2024, the Company reported net income of
Core EBITDA was
For the first quarter of 2024, Core FFO was
For the first quarter of 2024, AFFO was
Please see the Company’s supplemental financial information for the definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures.
First Quarter 2024 Global Warehouse Segment Results
The following table presents revenues, contribution (NOI) and margins for our same store and non-same store warehouses with a reconciliation to the total financial metrics of our warehouse segment for the three months and year ended
Three Months Ended | Change | ||||||||||||||||
Dollars and units in thousands, except per pallet data | 2024 Actual | 2024 Constant Currency(1) | 2023 Actual | Actual | Constant Currency | ||||||||||||
TOTAL WAREHOUSE SEGMENT | |||||||||||||||||
Number of total warehouses | 236 | 238 | n/a | n/a | |||||||||||||
Rent and storage | $ | 269,424 | $ | 274,666 | $ | 271,407 | (0.7) % | 1.2 | % | ||||||||
Warehouse services | 328,286 | 332,428 | 323,645 | 1.4 | % | 2.7 | % | ||||||||||
Total revenue | $ | 597,710 | $ | 607,094 | $ | 595,052 | 0.4 | % | 2.0 | % | |||||||
$ | 197,131 | $ | 199,991 | $ | 174,827 | 12.8 | % | 14.4 | % | ||||||||
33.0 | % | 32.9 | % | 29.4 | % | 360 bps | 356 bps | ||||||||||
Average economic occupied pallets | 4,393 | n/a | 4,553 | (3.5) % | n/a | ||||||||||||
Average physical occupied pallets | 3,810 | n/a | 4,190 | (9.1) % | n/a | ||||||||||||
Average physical pallet positions | 5,531 | n/a | 5,417 | 2.1 | % | n/a | |||||||||||
Economic occupancy percentage | 79.4 | % | n/a | 84.0 | % | -462 bps | n/a | ||||||||||
Physical occupancy percentage | 68.9 | % | n/a | 77.3 | % | -846 bps | n/a | ||||||||||
Total rent and storage revenue per average economic occupied pallet | $ | 61.33 | $ | 62.52 | $ | 59.62 | 2.9 | % | 4.9 | % | |||||||
Total rent and storage revenue per average physical occupied pallet | $ | 70.71 | $ | 72.09 | $ | 64.77 | 9.2 | % | 11.3 | % | |||||||
Throughput pallets | 9,050 | n/a | 9,653 | (6.2 | )% | n/a | |||||||||||
Total warehouse services revenue per throughput pallet | $ | 36.27 | $ | 36.73 | $ | 33.53 | 8.2 | % | 9.6 | % | |||||||
SAME STORE WAREHOUSE | |||||||||||||||||
Number of same store warehouses | 226 | 226 | n/a | n/a | |||||||||||||
Rent and storage | $ | 256,295 | $ | 261,450 | $ | 264,050 | (2.9) % | (1.0 | )% | ||||||||
Warehouse services | 320,416 | 324,447 | 316,978 | 1.1 | % | 2.4 | % | ||||||||||
Total same store revenue | $ | 576,711 | $ | 585,897 | $ | 581,028 | (0.7) % | 0.8 | % | ||||||||
$ | 200,582 | $ | 203,386 | $ | 184,717 | 8.6 | % | 10.1 | % | ||||||||
34.8 | % | 34.7 | % | 31.8 | % | 299 bps | 292 bps | ||||||||||
Average economic occupied pallets | 4,242 | n/a | 4,453 | (4.7) % | n/a | ||||||||||||
Average physical occupied pallets | 3,683 | n/a | 4,107 | (10.3) % | n/a | ||||||||||||
Average physical pallet positions | 5,246 | n/a | 5,277 | (0.6) % | n/a | ||||||||||||
Economic occupancy percentage | 80.9 | % | n/a | 84.4 | % | -352 bps | n/a | ||||||||||
Physical occupancy percentage | 70.2 | % | n/a | 77.8 | % | -762 bps | n/a | ||||||||||
Same store rent and storage revenue per average economic occupied pallet | $ | 60.42 | $ | 61.63 | $ | 59.30 | 1.9 | % | 3.9 | % | |||||||
Same store rent and storage revenue per average physical occupied pallet | $ | 69.59 | $ | 70.99 | $ | 64.29 | 8.2 | % | 10.4 | % | |||||||
Throughput pallets | 8,682 | n/a | 9,396 | (7.6) % | n/a | ||||||||||||
Same store warehouse services revenue per throughput pallet | $ | 36.91 | $ | 37.37 | $ | 33.74 | 9.4 | % | 10.8 | % |
Three Months Ended | Change | ||||||||||||||
Dollars and units in thousands, except per pallet data | 2024 Actual | 2024 Constant Currency(1) | 2023 Actual | Actual | Constant Currency | ||||||||||
NON-SAME STORE WAREHOUSE | |||||||||||||||
Number of non-same store warehouses(2) | 10 | 12 | n/a | n/a | |||||||||||
Rent and storage | $ | 13,129 | $ | 13,216 | $ | 7,357 | n/r | n/r | |||||||
Warehouse services | 7,870 | 7,981 | 6,667 | n/r | n/r | ||||||||||
Total non-same store revenue | $ | 20,999 | $ | 21,197 | $ | 14,024 | n/r | n/r | |||||||
$ | (3,451 | ) | $ | (3,395 | ) | $ | (9,890 | ) | n/r | n/r | |||||
(16.4 | )% | (16.0 | )% | (70.5 | )% | n/r | n/r | ||||||||
Average economic occupied pallets | 151 | n/a | 100 | n/r | n/a | ||||||||||
Average physical occupied pallets | 127 | n/a | 83 | n/r | n/a | ||||||||||
Average physical pallet positions | 285 | n/a | 140 | n/r | n/a | ||||||||||
Economic occupancy percentage | 53.0 | % | n/a | 71.4 | % | n/r | n/a | ||||||||
Physical occupancy percentage | 44.6 | % | n/a | 59.3 | % | n/r | n/a | ||||||||
Non-same store rent and storage revenue per average economic occupied pallet | $ | 86.95 | $ | 87.52 | $ | 73.57 | n/r | n/r | |||||||
Non-same store rent and storage revenue per average physical occupied pallet | $ | 103.38 | $ | 104.06 | $ | 88.64 | n/r | n/r | |||||||
Throughput pallets | 368 | n/a | 257 | n/r | n/a | ||||||||||
Non-same store warehouse services revenue per throughput pallet | $ | 21.39 | $ | 21.69 | $ | 25.94 | n/r | n/r |
(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2) Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.
(n/a = not applicable)
(n/r = not relevant)
For the first quarter of 2024,
Fixed Commitment Rent and Storage Revenue
As of
Economic and Physical Occupancy
Contracts that contain fixed commitments are designed to ensure the Company’s customers have space available when needed. For the first quarter of 2024, economic occupancy for the total warehouse segment was 79.4% and warehouse segment same store pool was 80.9%, representing a 1,054 basis point and 1,066 basis point increase above physical occupancy, respectively. Economic occupancy for the total warehouse segment decreased 462 basis points, and the warehouse segment same store pool decreased 352 basis points as compared to the first quarter of 2023. The reduction in occupancy reflects the ramp in manufacturer production during the fourth quarter of 2022 as labor improved, which did not recur in 2023.
Real Estate Portfolio
As of
Balance Sheet Activity and Liquidity
As of
Dividend
On
About the Company
Americold is a global leader in temperature-controlled logistics real estate and value added services. Focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, Americold owns and/or operates 241 temperature-controlled warehouses, with approximately 1.5 billion refrigerated cubic feet of storage, in
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including NAREIT FFO, Core FFO, AFFO, Core EBITDA; same store segment revenue, contribution (NOI), and margin, and maintenance capital expenditures. Definitions of these non-GAAP metrics are included in our quarterly financial supplement, and reconciliations of these non-GAAP measures to their most comparable GAAP metrics are included herein. Each of the non-GAAP measures included in this press release has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the Company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP measures in this press release may not be comparable to similarly titled measures disclosed by other companies, including other REITs.
Forward-Looking Statements
This press release contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of our future financial and operating performance and growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include the following: rising inflationary pressures, increased interest rates and operating costs; labor and power costs; labor shortages; our relationship with our associates, the occurrence of any work stoppages or any disputes under our collective bargaining agreements and employment related litigation; the impact of supply chain disruptions; risks related to rising construction costs; risks related to expansions of existing properties and developments of new properties, including failure to meet budgeted or stabilized returns within expected time frames, or at all, in respect thereof; uncertainty of revenues, given the nature of our customer contracts; acquisition risks, including the failure to identify or complete attractive acquisitions or failure to realize the intended benefits from our recent acquisitions; difficulties in expanding our operations into new markets; uncertainties and risks related to public health crises; a failure of our information technology systems, systems conversions and integrations, cybersecurity attacks or a breach of our information security systems, networks or processes, and those related to the cyber matter which occurred on
Words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” “potential,” “near-term,” “long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will” and similar expressions are intended to identify such forward-looking statements, although not all forward-looking statements may contain such words. Examples of forward-looking statements included in this press release include those regarding our 2024 outlook and our migration of our customers to fixed commitment storage contracts. We qualify any forward-looking statements entirely by these cautionary factors. Other risks, uncertainties and factors, including those discussed under “Risk Factors” in our Annual Report on Form 10-K for the year ended
Contacts:
Investor Relations
Telephone: 678-459-1959
Email: investor.relations@americold.com
Item 1. Financial Statements | |||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
(In thousands, except shares and per share amounts) | |||||||
Assets | |||||||
Property, buildings and equipment: | |||||||
Land | $ | 813,243 | $ | 820,831 | |||
Buildings and improvements | 4,444,068 | 4,464,359 | |||||
Machinery and equipment | 1,568,141 | 1,565,431 | |||||
Assets under construction | 476,421 | 452,312 | |||||
7,301,873 | 7,302,933 | ||||||
Accumulated depreciation | (2,259,390 | ) | (2,196,196 | ) | |||
Property, buildings and equipment – net | 5,042,483 | 5,106,737 | |||||
Operating leases – net | 238,065 | 247,302 | |||||
Financing leases – net | 100,997 | 105,164 | |||||
Cash, cash equivalents and restricted cash | 59,204 | 60,392 | |||||
Accounts receivable – net of allowance of | 407,427 | 426,048 | |||||
Identifiable intangible assets – net | 884,521 | 897,414 | |||||
790,568 | 794,004 | ||||||
Investments in and advances to partially owned entities | 38,799 | 38,113 | |||||
Other assets | 226,113 | 194,078 | |||||
Total assets | $ | 7,788,177 | $ | 7,869,252 | |||
Liabilities and equity | |||||||
Liabilities: | |||||||
Borrowings under revolving line of credit | $ | 455,919 | $ | 392,156 | |||
Accounts payable and accrued expenses | 513,820 | 568,764 | |||||
Senior unsecured notes and term loans – net of deferred financing costs of | 2,578,992 | 2,601,122 | |||||
Sale-leaseback financing obligations | 143,825 | 161,937 | |||||
Financing lease obligations | 91,412 | 97,177 | |||||
Operating lease obligations | 231,921 | 240,251 | |||||
Unearned revenue | 29,089 | 28,379 | |||||
Deferred tax liability – net | 134,142 | 135,797 | |||||
Other liabilities | 7,653 | 9,082 | |||||
Total liabilities | 4,186,773 | 4,234,665 | |||||
Commitments and contingencies (Note 7 - Commitments and Contingencies) | |||||||
Equity | |||||||
Stockholders’ equity: | |||||||
Common stock, | 2,840 | 2,837 | |||||
Paid-in capital | 5,631,968 | 5,625,907 | |||||
Accumulated deficit and distributions in excess of net earnings | (2,048,978 | ) | (1,995,975 | ) | |||
Accumulated other comprehensive income (loss) | (4,534 | ) | (16,640 | ) | |||
Total stockholders’ equity | 3,581,296 | 3,616,129 | |||||
Noncontrolling interests: | |||||||
Noncontrolling interests in | 20,108 | 18,458 | |||||
Total equity | 3,601,404 | 3,634,587 | |||||
Total liabilities and equity | $ | 7,788,177 | $ | 7,869,252 |
Condensed Consolidated Statements of Operations (Unaudited) | |||||||
(In thousands, except per share amounts) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Revenues: | |||||||
Rent, storage, and warehouse services | $ | 597,710 | $ | 595,052 | |||
Transportation services | 56,853 | 68,078 | |||||
Third-party managed services | 10,417 | 13,359 | |||||
Total revenues | 664,980 | 676,489 | |||||
Operating expenses: | |||||||
Rent, storage, and warehouse services cost of operations | 400,579 | 420,225 | |||||
Transportation services cost of operations | 45,331 | 56,418 | |||||
Third-party managed services cost of operations | 8,234 | 12,280 | |||||
Depreciation and amortization | 92,095 | 85,024 | |||||
Selling, general, and administrative | 65,426 | 62,855 | |||||
Acquisition, cyber incident, and other, net | 14,998 | 7,147 | |||||
(Gain) loss on sale of real estate | (3,514 | ) | 191 | ||||
Total operating expenses | 623,149 | 644,140 | |||||
Operating income | 41,831 | 32,349 | |||||
Other income (expense) | |||||||
Interest expense | (33,430 | ) | (34,423 | ) | |||
Loss on debt extinguishment and termination of derivative instruments | (5,182 | ) | (545 | ) | |||
Loss from investments in partially owned entities | (949 | ) | (648 | ) | |||
Other, net | 9,526 | 1,433 | |||||
Income (loss) from continuing operations before income taxes | 11,796 | (1,834 | ) | ||||
Income tax benefit (expense) | |||||||
Current | (1,375 | ) | (1,977 | ) | |||
Deferred | (619 | ) | 3,621 | ||||
Income tax (expense) benefit | (1,994 | ) | 1,644 | ||||
Net income (loss) | |||||||
Income (loss) from continuing operations | 9,802 | (190 | ) | ||||
Loss from discontinued operations, net of tax | — | (2,381 | ) | ||||
Net income (loss) | $ | 9,802 | $ | (2,571 | ) | ||
Net income (loss) attributable to noncontrolling interests | 62 | (9 | ) | ||||
Net income (loss) attributable to | $ | 9,740 | $ | (2,562 | ) | ||
Weighted average common stock outstanding – basic | 284,644 | 270,230 | |||||
Weighted average common stock outstanding – diluted | 284,878 | 270,230 | |||||
Net income per common share from continuing operations - basic | $ | 0.03 | $ | — | |||
Net loss per common share from discontinued operations - basic | — | (0.01 | ) | ||||
Basic income (loss) income per share | $ | 0.03 | $ | (0.01 | ) | ||
Net income per common share from continuing operations - diluted | $ | 0.03 | $ | — | |||
Net loss per common share from discontinued operations - diluted | — | (0.01 | ) | ||||
Diluted income (loss) income per share | $ | 0.03 | $ | (0.01 | ) | ||
Reconciliation of Net Income (Loss) to NAREIT FFO, Core FFO, and Adjusted FFO | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Q1 24 | Q4 23 | Q3 23 | Q2 23 | Q1 23 | ||||||||||||
Net income (loss) | $ | 9,802 | $ | (226,800 | ) | $ | (2,096 | ) | $ | (104,802 | ) | $ | (2,571 | ) | ||
Adjustments: | ||||||||||||||||
Real estate related depreciation | 56,275 | 57,183 | 56,373 | 54,740 | 54,541 | |||||||||||
(Gain) loss on sale of real estate | (3,514 | ) | 5 | 78 | (2,528 | ) | 191 | |||||||||
Net loss (gain) on asset disposals | 40 | 260 | (25 | ) | — | — | ||||||||||
Our share of reconciling items related to partially owned entities | 148 | 280 | 290 | 232 | 903 | |||||||||||
NAREIT FFO | $ | 62,751 | $ | (169,072 | ) | $ | 54,620 | $ | (52,358 | ) | $ | 53,064 | ||||
Adjustments: | ||||||||||||||||
Net (gain) loss on sale of non-real estate assets | (20 | ) | 3,312 | (296 | ) | 289 | 420 | |||||||||
Acquisition, cyber incident and other, net | 14,998 | 15,774 | 13,931 | 27,235 | 7,147 | |||||||||||
— | 236,515 | — | — | — | ||||||||||||
Loss on debt extinguishment and termination of derivative instruments | 5,182 | 627 | 683 | 627 | 545 | |||||||||||
Foreign currency exchange loss (gain) | 373 | (28 | ) | 705 | 212 | (458 | ) | |||||||||
Gain on legal settlement related to prior period operations | (6,104 | ) | (2,180 | ) | — | — | — | |||||||||
Our share of reconciling items related to partially owned entities | 136 | (184 | ) | 147 | (27 | ) | 128 | |||||||||
(Gain) loss from discontinued operations, net of tax | — | — | (203 | ) | 8,275 | — | ||||||||||
Impairment of related party receivable | — | — | — | 21,972 | — | |||||||||||
Loss on put option | — | — | — | 56,576 | — | |||||||||||
Gain on sale of LATAM JV | — | — | — | (304 | ) | — | ||||||||||
Core FFO | $ | 77,316 | $ | 84,764 | $ | 69,587 | $ | 62,497 | $ | 60,846 | ||||||
Adjustments: | ||||||||||||||||
Amortization of deferred financing costs and pension withdrawal liability | 1,289 | 1,290 | 1,286 | 1,279 | 1,240 | |||||||||||
Amortization of below/above market leases | 368 | 360 | 369 | 375 | 402 | |||||||||||
Straight-line rental revenue adjustment | 589 | 597 | 544 | 361 | (491 | ) | ||||||||||
Deferred income tax expense (benefit) | 619 | (3,228 | ) | (2,473 | ) | (1,459 | ) | (3,621 | ) | |||||||
Stock-based compensation expense | 6,619 | 5,780 | 6,203 | 4,639 | 6,970 | |||||||||||
Non-real estate depreciation and amortization | 35,820 | 36,916 | 33,355 | 30,152 | 30,483 | |||||||||||
Maintenance capital expenditures | (17,933 | ) | (18,670 | ) | (20,907 | ) | (22,590 | ) | (16,244 | ) | ||||||
Our share of reconciling items related to partially owned entities | 226 | 208 | 198 | 303 | 304 | |||||||||||
Adjusted FFO | $ | 104,913 | $ | 108,017 | $ | 88,162 | $ | 75,557 | $ | 79,889 | ||||||
Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and Adjusted FFO (continued) | |||||||||||||
(In thousands except per share amounts) | |||||||||||||
Three Months Ended | |||||||||||||
Q1 24 | Q4 23 | Q3 23 | Q2 23 | Q1 23 | |||||||||
NAREIT FFO | $ | 62,751 | $ | (169,072 | ) | $ | 54,620 | $ | (52,358 | ) | $ | 53,064 | |
Core FFO | $ | 77,316 | $ | 84,764 | $ | 69,587 | $ | 62,497 | $ | 60,846 | |||
Adjusted FFO | $ | 104,913 | $ | 108,017 | $ | 88,162 | $ | 75,557 | $ | 79,889 | |||
Reconciliation of weighted average shares: | |||||||||||||
Weighted average basic shares for net income calculation | 284,644 | 284,263 | 278,137 | 270,462 | 270,230 | ||||||||
Dilutive stock options and unvested restricted stock units | 234 | 502 | 519 | 695 | 778 | ||||||||
Weighted average dilutive shares | 284,878 | 284,765 | 278,656 | 271,157 | 271,008 | ||||||||
NAREIT FFO - basic per share | $ | 0.22 | $ | (0.59 | ) | $ | 0.20 | $ | (0.19 | ) | $ | 0.20 | |
NAREIT FFO - diluted per share | $ | 0.22 | $ | (0.59 | ) | $ | 0.20 | $ | (0.19 | ) | $ | 0.20 | |
Core FFO - basic per share | $ | 0.27 | $ | 0.30 | $ | 0.25 | $ | 0.23 | $ | 0.23 | |||
Core FFO - diluted per share | $ | 0.27 | $ | 0.30 | $ | 0.25 | $ | 0.23 | $ | 0.22 | |||
Adjusted FFO - basic per share | $ | 0.37 | $ | 0.38 | $ | 0.32 | $ | 0.28 | $ | 0.30 | |||
Adjusted FFO - diluted per share | $ | 0.37 | $ | 0.38 | $ | 0.32 | $ | 0.28 | $ | 0.29 |
(a) Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology.
Reconciliation of Net Income (Loss) to EBITDA, NAREIT EBITDAre, and Core EBITDA | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Three Months Ended | Trailing Twelve Months Ended | ||||||||||||||||||
Q1 24 | Q4 23 | Q3 23 | Q2 23 | Q1 23 | Q1 24 | ||||||||||||||
Net income (loss) | $ | 9,802 | $ | (226,800 | ) | $ | (2,096 | ) | $ | (104,802 | ) | $ | (2,571 | ) | $ | (323,896 | ) | ||
Adjustments: | |||||||||||||||||||
Depreciation and amortization | 92,095 | 94,099 | 89,728 | 84,892 | 85,024 | 360,814 | |||||||||||||
Interest expense | 33,430 | 33,681 | 35,572 | 36,431 | 34,423 | 139,114 | |||||||||||||
Income tax expense (benefit) | 1,994 | (601 | ) | (492 | ) | 464 | (1,644 | ) | 1,365 | ||||||||||
(Gain) loss on sale of real estate | (3,514 | ) | 5 | 78 | (2,528 | ) | 191 | (5,959 | ) | ||||||||||
Adjustment to reflect share of EBITDAre of partially owned entities | 1,470 | 1,533 | 1,495 | 3,085 | 2,883 | 7,583 | |||||||||||||
NAREIT EBITDAre | $ | 135,277 | $ | (98,083 | ) | $ | 124,285 | $ | 17,542 | $ | 118,306 | $ | 179,021 | ||||||
Adjustments: | |||||||||||||||||||
Acquisition, cyber incident and other, net | 14,998 | 15,774 | 13,931 | 27,235 | 7,147 | 71,938 | |||||||||||||
Loss (gain) from investments in partially owned entities | 949 | (174 | ) | 259 | 709 | 3,029 | 1,743 | ||||||||||||
Impairment of indefinite and long-lived assets | — | 236,515 | — | — | — | 236,515 | |||||||||||||
Foreign currency exchange loss (gain) | 373 | (28 | ) | 705 | 212 | (458 | ) | 1,262 | |||||||||||
Stock-based compensation expense | 6,619 | 5,780 | 6,203 | 4,639 | 6,970 | 23,241 | |||||||||||||
Loss on debt extinguishment and termination of derivative instruments | 5,182 | 627 | 683 | 627 | 545 | 7,119 | |||||||||||||
Gain (loss) on real estate and other asset disposals | 20 | 3,572 | (321 | ) | 289 | 420 | 3,560 | ||||||||||||
Gain on legal settlement related to prior period operations | (6,104 | ) | (2,180 | ) | — | — | — | (8,284 | ) | ||||||||||
Reduction in EBITDAre from partially owned entities | (1,470 | ) | (1,533 | ) | (1,495 | ) | (3,085 | ) | (2,883 | ) | (7,583 | ) | |||||||
Gain from sale of partially owned entities | — | — | — | (304 | ) | — | (304 | ) | |||||||||||
(Gain) loss from discontinued operations, net of tax | — | — | (203 | ) | 8,275 | — | 8,072 | ||||||||||||
Impairment of related party receivable | — | — | — | 21,972 | — | 21,972 | |||||||||||||
Loss on put option | — | — | — | 56,576 | — | 56,576 | |||||||||||||
Core EBITDA | $ | 155,844 | $ | 160,270 | $ | 144,047 | $ | 134,687 | $ | 133,076 | $ | 594,848 |
Revenue and Contribution (NOI) by Segment | |||||||
(in thousands) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Segment revenues: | |||||||
Warehouse | 597,710 | 595,052 | |||||
Transportation | 56,853 | 68,078 | |||||
Third-party managed | 10,417 | 13,359 | |||||
Total revenues | 664,980 | 676,489 | |||||
Segment contribution: | |||||||
Warehouse | 197,131 | 174,827 | |||||
Transportation | 11,522 | 11,660 | |||||
Third-party managed | 2,183 | 1,079 | |||||
Total segment contribution | 210,836 | 187,566 | |||||
Reconciling items: | |||||||
Depreciation and amortization expense | (92,095 | ) | (85,024 | ) | |||
Selling, general, and administrative expense | (65,426 | ) | (62,855 | ) | |||
Acquisition, cyber incident, and other expense, net | (14,998 | ) | (7,147 | ) | |||
Gain (loss) on sale of real estate | 3,514 | (191 | ) | ||||
Interest expense | (33,430 | ) | (34,423 | ) | |||
Other, net | 9,526 | 1,433 | |||||
Loss on debt extinguishment and termination of derivative instruments | (5,182 | ) | (545 | ) | |||
Loss from investments in partially owned entities | (949 | ) | (648 | ) | |||
Income (loss) from continuing operations before income taxes | $ | 11,796 | $ | (1,834 | ) |
We view and manage our business through three primary business segments—warehouse, transportation, third-party managed. Our core business is our warehouse segment, where we provide temperature-controlled warehouse storage and related handling and other warehouse services. In our warehouse segment, we collect rent and storage fees from customers to store their frozen and perishable food and other products within our real estate portfolio. We also provide our customers with handling and other warehouse services related to the products stored in our buildings that are designed to optimize their movement through the cold chain, such as the placement of food products for storage and preservation, the retrieval of products from storage upon customer request, case-picking, blast freezing, produce grading and bagging, ripening, kitting, protein boxing, repackaging, e-commerce fulfillment, and other recurring handling services.
In our transportation segment, we broker and manage transportation of frozen and perishable food and other products for our customers. Our transportation services include consolidation services (i.e., consolidating a customer’s products with those of other customers for more efficient shipment), freight under management services (i.e., arranging for and overseeing transportation of customer inventory) and dedicated transportation services, each designed to improve efficiency and reduce transportation and logistics costs to our customers. We provide these transportation services at cost plus a service fee or, in the case of our consolidation or dedicated services, we may charge a fixed fee. We supplemented our regional, national and truckload consolidation services with the transportation operations from various warehouse acquisitions. We also provide multi-modal global freight forwarding services to support our customers’ needs in certain markets.
Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to leading food manufacturers and retailers in their owned facilities. We believe using our third-party management services allows our customers to increase efficiency, reduce costs, reduce supply-chain risks and focus on their core businesses. We also believe that providing third-party management services allows us to offer a complete and integrated suite of services across the cold chain.
Notes and Definitions
We use the following non-GAAP financial measures as supplemental performance measures of our business: NAREIT FFO, Core FFO, Adjusted FFO, EBITDAre, Core EBITDA, net debt to pro-forma Core EBITDA and segment contribution (‘NOI”).
We calculate funds from operations, or FFO, in accordance with the standards established by the
We calculate core funds from operations, or Core FFO, as NAREIT FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, acquisition, cyber incident and other, net, goodwill impairment (when applicable), loss on debt extinguishment and termination of derivative instruments, foreign currency exchange loss (gain), gain on legal settlement related to prior period operations, gain or loss from discontinued operations net of tax, impairment of related party receivable, loss on fair put option, and gain from sale of LATAM joint venture. We also adjust for the impact of Core FFO on our share of reconciling items for partially owned entities, and gain from disposition of partially owned entities. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to our core business operations. We believe Core FFO can facilitate comparisons of operating performance between periods, while also providing a more meaningful predictor of future earnings potential.
However, because NAREIT FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of maintenance capital expenditures necessary to maintain the operating performance of our properties, both of which have material economic impacts on our results from operations, we believe the utility of NAREIT FFO and Core FFO as a measure of our performance may be limited.
We calculate adjusted funds from operations, or Adjusted FFO, as Core FFO adjusted for the effects of amortization of deferred financing costs and pension withdrawal liability, amortization of above or below market leases, straight-line rental revenue adjustment, deferred income taxes expense or benefit, stock-based compensation expense, non-real estate depreciation and amortization and maintenance capital expenditures. We also adjust for AFFO attributable to our share of reconciling items of partially owned entities and discontinued operations. We believe that Adjusted FFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments in our business and to assess our ability to fund distribution requirements from our operating activities.
FFO, Core FFO and Adjusted FFO are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO, Core FFO and Adjusted FFO should be evaluated along with
We calculate EBITDA for Real Estate, or EBITDAre, in accordance with the standards established by the
We also calculate our Core EBITDA as EBITDAre further adjusted for acquisition, cyber and other, net, loss from investments in partially owned entities, impairment of indefinite and long-lived assets (when applicable), foreign currency exchange loss or gain, stock-based compensation expense, loss on debt extinguishment and termination of derivative instruments, net gain on other asset disposals, gain on legal settlement related to prior period operations, reduction in EBITDAre from partially owned entities, discontinued operations, impairment of related party loan receivable, and loss on put option. We believe that the presentation of Core EBITDA provides a measurement of our operations that is meaningful to investors because it excludes the effects of certain items that are otherwise included in EBITDAre but which we do not believe are indicative of our core business operations. EBITDAre and Core EBITDA are not measurements of financial performance under
NOI is calculated as earnings before interest expense, taxes, depreciation and amortization, and excluding corporate Selling, general, and administrative expense; Acquisition, cyber incident, and other, net; Impairment of indefinite and long-lived assets; gain or loss on sale of real estate and all components of non-operating other income and expense. Management believes that this is a helpful metric to measure period to period operating performance of the business.
- these measures do not reflect our historical or future cash requirements for maintenance capital expenditures or growth and expansion capital expenditures;
- these measures do not reflect changes in, or cash requirements for, our working capital needs;
- these measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;
- these measures do not reflect our tax expense or the cash requirements to pay our taxes; and
- although depreciation and amortization are non-cash charges, the assets being depreciated will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements.
We use Core EBITDA and EBITDAre as measures of our operating performance and not as measures of liquidity. The table on page 19 of our financial supplement reconciles EBITDA, EBITDAre and Core EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with
Net debt to proforma Core EBITDA is calculated using total debt, plus capital lease obligations, less cash and cash equivalents, divided by pro-forma Core EBITDA. We calculate pro-forma Core EBITDA as Core EBITDA further adjusted for acquisitions, dispositions and for rent expense associated with lease buy-outs and lease exits. The pro-forma adjustment for acquisitions reflects the Core EBITDA for the period of time prior to acquisition. The pro-forma adjustment for leased facilities exited or purchased reflects the add-back for the related lease expense from the last year. The pro-forma adjustment for dispositions reduces Core EBITDA for the earnings of facilities disposed of or exited during the year, including the strategic exit of certain third-party managed business.
We define our “same store” population once annually at the beginning of the current calendar year. Our population includes properties owned or leased for the entirety of two comparable periods with at least twelve consecutive months of normalized operations prior to
We calculate “same store revenue” as revenues for the same store population. We calculate “same store contribution (NOI)” as revenues for the same store population less its cost of operations (excluding any depreciation and amortization, impairment charges, corporate-level selling, general and administrative expenses, corporate-level acquisition, cyber incident and other, net and gain or loss on sale of real estate). In order to derive an appropriate measure of period-to-period operating performance, we also calculate our same store contribution (NOI) on a constant currency basis to remove the effects of foreign currency exchange rate movements by using the comparable prior period exchange rate to translate from local currency into
We define “maintenance capital expenditures” as capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building or costs which are incurred to bring a building up to Americold’s operating standards. See the tables on page 28 of our financial supplement for additional information regarding our maintenance capital expenditures.
We define “total real estate debt” as the aggregate of the following: mortgage notes, senior unsecured notes, term loans and borrowings under our revolving line of credit. We define “total debt outstanding” as the aggregate of the following: total real estate debt, sale-leaseback financing obligations and financing lease obligations. See the tables on page 21 of our financial supplement for additional information regarding our indebtedness.
All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited.
Source:
2024 GlobeNewswire, Inc., source