13.05.2008 08:00:00 CET
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YOUR OPERATIONAL LEASING SOLUTION
REVENUE UP SHARPLY IN Q1 2008: +37%
Major transactions and events during the period
The TOUAX Group provides operational leasing of shipping containers, modular buildings, river barges and freight railcars for a global customer base, both for its own account and on behalf of investors. The Group now manages in excess of 1 billion in leasing assets.
The Group's goal is to improve its return on equity by expanding its leasing assets across the four businesses, by increasing market share and by bolstering its economies of scale.
The Group's strategy is to allocate its own investments between the various types of assets in order to achieve a balance between short-term returns and a more asset management approach targeting long-term capital gains. The development in management on behalf of third parties also makes it possible to generate immediate cash flows and to drive growth.
On 12 March 2008, TOUAX successfully carried out a capital increase with retention of preferential subscription rights for a gross amount of 23.3 million, an increase that will enable it to boost its wholly owned assets.
In Q1 2008, the Modular Buildings division signed new leases, including several for electricity plant construction projects. The River Barges division brought on stream the first barges, leased in South America, for the transportation of iron ore. The Shipping Containers division signed a management contract with one of its investors for 5,737 containers generating sales revenues of 10 million. The Railcars division signed a partnership agreement with IRS, the leading manufacturer of freight railcars in Europe, for the purchase and delivery of 6,000 railcars between 2009 and 2012.
TOUAX Q1 2008 consolidated revenue up +37% at 60.4 million (+38% on a like-for-like basis and at constant dollars).
| Revenues by type (Unaudited consolidated figures, in thousands) | Q1 2008 | Q1 2007 | Change |
| Leasing revenues | 45 115 | 38 115 | 18% |
| Sales of equipment and sundry items | 15 324 | 6 034 | 154% |
| Consolidated revenues | 60 439 | 44 149 | 37% |
| Revenues by business segment (Unaudited consolidated figures, in thousands) | Q1 2008 | Q1 2007 | Change |
| Leasing revenues | 18 505 | 17 408 | 6% |
| Sales of equipment and sundry items | 10 089 | 21 | |
| Shipping containers | 28 594 | 17 429 | 64% |
| Leasing revenues | 14 010 | 11 055 | 27% |
| Sales of equipment and sundry items | 4 920 | 1 593 | 209% |
| Modular buildings | 18 930 | 12 648 | 50% |
| Leasing revenues | 5 222 | 5 249 | -1% |
| Sales of equipment and sundry items | 45 | ||
| River barges | 5 222 | 5 294 | -1% |
| Leasing revenues | 7 378 | 4 403 | 68% |
| Sales of equipment and sundry items | 315 | 4 375 | -93% |
| Railcars, sundry items and intersegment eliminations | 7 693 | 8 778 | -12% |
| Consolidated revenues | 60 439 | 44 149 | 37% |
Q1 2008 consolidated revenue amounted to 60.4 million, up 37% on Q1 2007 (38% on a like-for-like basis and at constant dollars). Leasing revenues rose 18% and sales revenues 154%.
PRESS RELEASE - QUARTERLY INFORMATION Paris, 13 May 2008 - 08:00
Given the strength of inter-Asia traffic and to Europe, and demand from shipping companies, the Containers division grew, increasing its leasing revenues by +6% in Q1 2008 compared to Q1 2007. Sales revenues were up largely on the back of the sale of new shipping containers to investors, TOUAX retaining the management of these assets. This sale is part of a global commitment to subscribe for USD 100 million during 2008.
The acquisition of TOUAX Sro in the Czech Republic and Slovakia during the second half of 2007 and the strong business performance in Europe contributed to the growth in revenue at the Modular Buildings division, which was +50% on Q1 2007.
Revenue at the River Barges division is stable. The Group is progressively taking delivery of new barges in 2008 and 2009. This business is benefiting from environmental concerns, fleet renewal needs and growth in Eastern Europe as well as sustained demand for commodities and agricultural products.
The Railcars division continues to benefit from rail freight deregulation and trade liberalisation in Europe. Rail transportation, being a competitive means of transportation over long distances, allows TOUAX to cement its growth strategy. Its fleet was up 37.9% as of 31 March 2008 with 5,690 railcars. This economic climate contributed to the very sharp 56% rise in leasing revenues.
General description of the financial position
The Group put in place 22 million in additional credit facilities with its banking partners in early 2008 in order to ensure the funding of its investments. Over 100 million in management programmes are already planned. The growth in revenue, which was above expectations, the rise in inter-Asia flows, structural needs in Eastern Europe, the Group's strategy to control the assembly of its modular buildings, the liberalisation of rail freight and the need to renew an old fleet of rail and river equipment provide an outlook that is in line with the target set.
Given these positive factors, the TOUAX Group thus confirms its consolidated net income growth forecasts of at least 30% compared to 2007, namely in excess of 15.2 million, a target that was announced at the French Financial Analysts Association (SFAF) meeting of 21 March 2008.
TOUAX is listed in Paris on NYSE EURONEXT - Euronext Paris Compartment B (ISIN code FR0000033003).
Your media contact Sylvie Jovillard - Sylvie Jovillard Conseil jovillard.conseil.sylvie@wanadoo.fr +33 6 20 50 19 89
Contacts: TOUAX Fabrice & Raphaλl WALEWSKI Managers touax@touax.com www.touax.com Tel: +33 (0)1 46 96 18 00
ACTUS FINANCE Samuel BEAUPAIN sbeaupain@actus.fr www.actus.fr Tel: +33 (0)1 53 67 36 49