TOUAX ERRATUM: Sale of European and American modular buildings activities; Rise in operating profit at €5.3 million; A breakeven net result for the retained operations

PRESS RELEASE -  Paris, 31 August 2017 - 6 p.m.



  • Sale of European and American modular buildings activities
  • Increase in revenues, EBITDA and operating cash flows
  • Rise in operating profit at €5.3 million
  • A breakeven net result for the retained operations

The consolidated accounts on 30 June 2017 were approved by the Management Board on 30 August 2017 and submitted to the Supervisory Board. A limited inspection of the financial statements was carried out by the statutory auditors. Their report is being issued.

The Group announced the intended sale of its European and American modular buildings activities. The share purchase agreement of the European activities was signed on 4 August 2017 with an expecting closing during the last quarter of 2017. Sale of these activities are presented in accordance with IFRS 5 on a separate line as discontinued operations. The comparative financial statements therefore only detail the continuing operations.

S1 2017 net result amounted to -€13.9 million, of which -€13.8 million was related to discontinued operations.

The retained operations show a breakeven net income (-€72,000). The retained transportation equipment leasing and sale businesses are positive while the remaining modular building sales business in Africa improved but remained negative in S1 2017.

Discontinued operations recorded a loss of €13.8 million, approximately half of which is explained by the operating profit of the activity and the other half by exceptional items including an income from disposal close to breakeven with a loss of €1.4 million.


Revenue by type

( € thousands)
Q1 2017Q2 2017 TOTAL
S1 2017
Q1 2016Q2 2016 TOTAL
S1 2016
Leasing revenue (1)38,49837,820 76,318 36,13035,202 71,332
Sales of equipment15,07031,123 46,193 22,53817,623 40,161
Including sales to clients 8,947 8,324 17,271 12,622 13,921 26,543
Including sales to investors 6,123 22,799 28,922 9,916 3,702 13,618
Consolidated revenue 53,568 68,943 122,511 58,668 52,825 111,493

(1) Leasing revenue includes ancillary services.

Consolidated revenue for the 1 st half of 2017 from retained businesses increased by 9.9% to €122.5 million, mainly due to a cumulative increase in sales and leasing businesses. At constant scope and exchange rates, revenues were up 1.9%.

Leasing revenues increased by 7% to €76.3 million due to an increase in Freight Railcars and River Barges revenues. The decline in the Shipping Containers revenue was due to both lower leasing rates in 2016 and a decrease in the fleet with the disposal of used containers in 2016. However, the utilisation rate for the Shipping Container business increased very significantly to reach 97.5% at the end of June. Growth in the Freight Railcars business was most notably due to the acquisition by TOUAX of a controlling interest in the asset company owning a fleet of 2,000 railcars purchased at the end of 2015. At constant scope and exchange rates, leasing revenues were down 4.2% mainly due to the decline in the container fleet.

Equipment sales increased by 15% to €46.2 million. Sales to customers fell by 34.9%, due to significant container sales in 2016, as fewer used containers were available for sale in S1 2017 within a context of a recovering leasing market. Sales to investors increased by 112.4% with the syndication of railcars to a Luxembourg investment company.

Analysis of the contribution of the 3 Group's divisions

Revenue by division

(€ thousands)
Q1 2017Q2 2017 TOTAL
S1 2017
Q1 2016Q2 2016 TOTAL
S1 2016
Leasing revenue (1)11,92912,826 24,755 23,82823,13246,960
ales of equipment59824,038 24,636 19,42913,725 33,154
Including sales to clients 434 1,139 1,573 9,513 10,023 19,536
Including sales to investors 164 22,899 23,063 9,916 3,702 13,618
Freight Railcars 12 527 36 864 49 391 43,257 36,857 80,114
Leasing revenue (1)3,6993,560 7,259 17,45118,996 36,447
Sales of equipment6111 117 13,75113,756 27,507
Including sales to clients 611111713,75113,75627,507
River barges 3,705 3,671 7,376 31,202 32,752 63,954
Leasing revenue (1)22,82421,572 44,396 9,1029,191 18,293
Sales of equipment and misc.13,4806,320 19,800 1782,334 2,512
Including sales to clients 7,520 6,420 13,940 178 2,334 2,512
Including sales to investors 5,960 -100 5,860      
Shipping containers 36,304 27,892 64,196 9,280 11,525 20,805
Leasing revenue (1)45-137 -92 111111 222
Sales of equipment987653 1,640 2,0131,547 3,560
Including sales to clients 987 653 1,640 2,013 1,547 3,560
Miscellaneous and unallocated 1,032 516 1,548 2,124 1,658 3,782
Consolidated revenue 53,568 68,943 122,511 58,668 52,825 111,493

(1) Leasing revenue includes ancillary services.

Freight Railcars : The Freight Railcars business is the activity in which the Group has made the most owned investment. Revenues for the Freight Railcars division increased by 137.4% from €20.8 million in June 2016 to €49.4 million at the end of June 2017, mainly due to higher leasing revenues and a syndication to investors. Leasing revenues increased by €6.5 million (or +35.3%) to €24.8 million in June 2017 due to the full consolidation of an asset-holding subsidiary. The utilisation rate at the end of June rose in a moderately growing market.

River Barges : Revenues from the River Barges division amounted to €7.4 million, up 8.6%, with an increased chartering activity on the Rhine.

Shipping containers : The Shipping Containers business consists mainly of assets managed on behalf of third parties. Revenues from the Shipping Containers division fell to €64.2 million, mainly due to lower sales of used equipment. Leasing revenues fell to €44.4 million at the end of June 2017, or -5.5%. At constant exchange rates, it decreased by 8.3%. This fall is explained by fewer sales of used containers within a context of a recovering leasing market context compared to 2016 and by a declining fleet with limited new investments. The utilisation rate increased to 97.5% as at 30 June 2017.

The retained activity of modular buildings sale in Africa, grouped together in the miscellaneous line, decreased but commercial activity was up sharply during the 1 st half-year 2017 and will generate a clear improvement in revenues during the second half-year.


Main figures 30/06/2017 30/06/201612/2016
(in € million - IFRS)   adjustedpublishedadjustedpublished
Revenue 122.5 111.5 171.5 232.7 362.9
including Freight railcars49.420.820.848.948.8
  River barges7.46.86.813.913.9
  Shipping containers64.280.180.1162.9162.9
  Miscellaneous and unallocated1.53.863.87.0137.3
Gross operating margin - EBITDAR (1)42.840.651.581.1102.5
Operating income5.
Profit before tax0.3-1.1-3.4-5.6-11.2
Consolidated net profit (loss) (Group's share) -13.9 -4.4 -4.4 -11.6 -11.6
Including income from retained operations-0.1-1.3 -3.9 
Including income from discontinued operations-13.8-3.1 -7.7 
Net earnings per share (€)-1.99-0.74-0.74-1.82-1.82
Total non-current assets323.2512.4512.4503.9503.9
Total assets628.7642.6642.6633.3633.3
Total shareholders' equity150.8154.7154.7156.8156.7
Net bank borrowing (3)193.2367.6367.6336.8336.8
Operating cash flow of the retained operations33.413.2-7.315.430.2
Loan to Value57 % 63 % 60 %

(1) The EBITDAR (earnings before interest taxes depreciation and amortization and rent) calculated by the Group corresponds to the current operating income. increased by depreciation charges and provisions for capital assets and distributions to investors
(2) EBITDA: EBITDAR after deducting distributions to investors
(3) Including €171 million in debt without recourse at 30 June 2017

The EBITDA of the retained operations reached €13 million, up 15.9%.

This rise is mainly due to the improved Freight Railcar business with the full integration of an asset company and the increase in the syndication volume.

Operating income is positive at €5.3 million compared with €2.8 million at the end of June 2016 in line with the increased EBITDA.

First half-year net result amounted to -€13.9 million, including -€13.8 million for discontinued operations. The retained transportation equipment leasing and sale businesses are positive while the remaining modular building sales business in Africa improved but remained negative in S1 2017.

The Group manages transportation assets worth 1.3 billion. Owned assets represented 31% of total assets managed.


Cash flow from operating activities rose sharply to €33.4 million, mainly driven by growth in leasing activity and railcar syndication.

Until the sale of the European and American Modular Buildings activities, the Group will continue to implement its strategy of increasing cash flows from operating activities with a stabilisation of its own assets, growth in assets under management on behalf of third parties and improved utilisation rates.

After the sale, TOUAX will benefit from an increased financial capacity. The financial strategy will therefore be to grow the Group's owned and managed assets, the Group's profitability and EBITDA while maintaining a stronger financial structure.

The Group's net indebtedness decreased to €193.2 million compared to €367.6 million at the end of June 2016 with the IFRS 5 classification of the discontinued operations. Debt is expected to decline in 2017 with the sale of modular buildings activities. The decrease in indebtedness to €193.2 million includes a €132.7 million decrease related to the IFRS 5 classification of the discontinued operations but does not include the total effect of the sale which will be recorded at the effective closing of the operation.


The Freight Railcars business in Europe should continue to benefit from the improving European economy along with the rise in utilisation rate.

The River Barges business continues to experience a difficult economic context in South America, but has improved in Europe.

The Shipping Containers business is benefiting from a worldwide shortage of containers with utilisation rates rising since the beginning of 2017. This situation creates a need for investment and an expected growth of the fleet. The context is again favourable for TOUAX which envisages a return to investments as soon as the sale of the European and American modular buildings leasing and sales activity is completed.

Losses in the modular buildings business in Europe, particularly in France as well as in the United States, will cease with the respective sales of these businesses.

TOUAX confirms an operating profit for the year 2017.


  • 5 September 2017:       Investors conference call and Financial analyst presentation
  • 15 November 2017:      Q3 2017 revenue

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 belongs to the CAC® Small and CAC® Mid & Small indexes and EnterNext©PEA-PME.

For more information:


Fabrice & Raphaël Walewski
Managing partners
Tel: +33 (0)1 46 96 18 00

Tel: +33 (0)1 55 88 11 11                                                                                 

[1] In accordance with IFRS 5, European and US Modular Buildings activities are presented as discontinuing operations. In practice, revenues and expenses have been treated as follows:

  • The contribution to each line of the TOUAX consolidated income statement is grouped under "Net income from discontinuing operations" over the periods presented;
  • In accordance with IFRS 5, these restatements are applied to all periods presented in order to make the information consistent.

In addition, the assets and liabilities of discontinuing operations are grouped together under a single line of assets and liabilities for the period ended 30 June 2017.

TOUAX- 2017 half year revenue and results

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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: TOUAX via GlobeNewswire