Americold Realty Trust Announces First Quarter 2022 Results
Americold Realty Trust (NYSE: COLD) reported a 11.2% increase in total revenue for Q1 2022, totaling $705.7 million. However, the company experienced a net loss of $17.4 million, or $0.06 per diluted share, compared to a net loss of $14.2 million in Q1 2021. Core FFO decreased to $46.3 million from $62.5 million year-over-year, reflecting ongoing challenges like labor shortages and inflation. The Global Warehouse segment saw revenue rise 11.4% to $540.9 million, but same-store NOI decreased by 4.7%. The company maintains its annual AFFO guidance of $1.00 - $1.10 per share.
- Total revenue increased by 11.2% year-over-year to $705.7 million.
- Global Warehouse revenue rose 11.4% to $540.9 million.
- Total NOI increased slightly by 0.6% to $158.3 million.
- Company maintains annual AFFO guidance of $1.00 - $1.10 per share.
- Liquidity is strong at approximately $657.0 million.
- Net loss increased to $17.4 million, compared to $14.2 million in Q1 2021.
- Core FFO decreased to $46.3 million from $62.5 million year-over-year.
- Same-store NOI declined by 4.7% due to food production challenges.
- Selling, general, and administrative costs contributed to a 5.9% drop in Core EBITDA.
ATLANTA, May 05, 2022 (GLOBE NEWSWIRE) -- Americold Realty Trust (NYSE: COLD) (the “Company”), the world’s largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, today announced financial and operating results for the first quarter ended March 31, 2022.
First Quarter 2022 Highlights
- Total revenue increased
11.2% to$705.7 million . - Total NOI increased
0.6% to$158.3 million . - Core EBITDA decreased
5.9% on an actual basis to$110.9 million ., and decreased2.2% on a constant currency basis. - Net loss of
$17.4 million , or$0.06 loss per diluted common share. - Core FFO of
$46.3 million , or$0.17 per diluted common share. - AFFO of
$68.9 million , or$0.26 per diluted common share. - Global Warehouse segment revenue increased
11.4% to$540.9 million . - Global Warehouse segment NOI increased
0.1% to$146.3 million . - Global Warehouse segment same store revenue increased
4.5% , or6.0% on a constant currency basis, Global Warehouse segment same store NOI decreased by4.7% , or3.6% on a constant currency basis.
First Quarter 2022 Total Company Financial Results
Total revenue for the first quarter of 2022 was
Total NOI for the first quarter of 2022 was
Core EBITDA was
For the first quarter of 2022, the Company reported net loss of
For the first quarter of 2022, Core FFO was
For the first quarter of 2022, 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 2022 Global Warehouse Segment Results
For the first quarter of 2022, Global Warehouse segment revenue was
Global Warehouse segment NOI was
We had 215 same stores for the three months ended March 31, 2022. The following table presents revenues, cost of operations, contribution (NOI) and margins for our same stores and non-same stores with a reconciliation to the total financial metrics of our warehouse segment for the three months ended March 31, 2022. Results related to the Bowman Stores, ColdCo, KMT Brrr!, Lago Cold Stores, Liberty Freezers and Newark Facility Management acquisitions are reflected within non-same store.
Three Months Ended March 31, | Change | ||||||||||||||||
Dollars in thousands | 2022 actual | 2022 constant currency(1) | 2021 actual | Actual | Constant currency | ||||||||||||
TOTAL WAREHOUSE SEGMENT | |||||||||||||||||
Number of total warehouses(2) | 240 | 233 | n/a | n/a | |||||||||||||
Global Warehouse revenue: | |||||||||||||||||
Rent and storage | $ | 229,757 | $ | 232,445 | $ | 205,275 | 11.9 | % | 13.2 | % | |||||||
Warehouse services | 311,168 | 316,277 | 280,176 | 11.1 | % | 12.9 | % | ||||||||||
Total revenue | $ | 540,925 | $ | 548,722 | $ | 485,451 | 11.4 | % | 13.0 | % | |||||||
Global Warehouse contribution (NOI) | $ | 146,258 | $ | 147,958 | $ | 146,181 | 0.1 | % | 1.2 | % | |||||||
Global Warehouse margin | 27.0 | % | 27.0 | % | 30.1 | % | -307 bps | -315 bps | |||||||||
Units in thousands except per pallet data | |||||||||||||||||
Global Warehouse rent and storage metrics: | |||||||||||||||||
Average economic occupied pallets | 4,174 | n/a | 3,973 | 5.1 | % | n/a | |||||||||||
Average physical occupied pallets | 3,804 | n/a | 3,627 | 4.9 | % | n/a | |||||||||||
Average physical pallet positions | 5,437 | n/a | 5,159 | 5.4 | % | n/a | |||||||||||
Economic occupancy percentage | 76.8 | % | n/a | 77.0 | % | -25 bps | n/a | ||||||||||
Physical occupancy percentage | 70.0 | % | n/a | 70.3 | % | -34 bps | n/a | ||||||||||
Total rent and storage revenue per economic occupied pallet | $ | 55.05 | $ | 55.70 | $ | 51.67 | 6.5 | % | 7.8 | % | |||||||
Total rent and storage revenue per physical occupied pallet | $ | 60.39 | $ | 61.10 | $ | 56.59 | 6.7 | % | 8.0 | % | |||||||
Global Warehouse services metrics: | |||||||||||||||||
Throughput pallets | 9,859 | n/a | 9,532 | 3.4 | % | n/a | |||||||||||
Total warehouse services revenue per throughput pallet | $ | 31.56 | $ | 32.08 | $ | 29.39 | 7.4 | % | 9.1 | % | |||||||
SAME STORE WAREHOUSE | |||||||||||||||||
Number of same store warehouses | 215 | 215 | n/a | n/a | |||||||||||||
Global Warehouse same store revenue: | |||||||||||||||||
Rent and storage | $ | 204,273 | $ | 206,643 | $ | 194,203 | 5.2 | % | 6.4 | % | |||||||
Warehouse services | 279,116 | 283,913 | 268,591 | 3.9 | % | 5.7 | % | ||||||||||
Total same store revenue | $ | 483,389 | $ | 490,556 | $ | 462,794 | 4.5 | % | 6.0 | % | |||||||
Global Warehouse same store contribution (NOI) | $ | 139,056 | $ | 140,604 | $ | 145,893 | (4.7) | % | (3.6) | % | |||||||
Global Warehouse same store margin | 28.8 | % | 28.7 | % | 31.5 | % | -276 bps | -286 bps | |||||||||
Units in thousands except per pallet data | |||||||||||||||||
Global Warehouse same store rent and storage metrics: | |||||||||||||||||
Average economic occupied pallets | 3,797 | n/a | 3,768 | 0.8 | % | n/a | |||||||||||
Average physical occupied pallets | 3,456 | n/a | 3,442 | 0.4 | % | n/a | |||||||||||
Average physical pallet positions | 4,892 | n/a | 4,869 | 0.5 | % | n/a | |||||||||||
Economic occupancy percentage | 77.6 | % | n/a | 77.4 | % | 22 bps | n/a | ||||||||||
Physical occupancy percentage | 70.7 | % | n/a | 70.7 | % | -4 bps | n/a | ||||||||||
Same store rent and storage revenue per economic occupied pallet | $ | 53.80 | $ | 54.43 | $ | 51.55 | 4.4 | % | 5.6 | % | |||||||
Same store rent and storage revenue per physical occupied pallet | $ | 59.10 | $ | 59.79 | $ | 56.43 | 4.7 | % | 6.0 | % | |||||||
Global Warehouse same store services metrics: | |||||||||||||||||
Throughput pallets | 8,893 | n/a | 8,947 | (0.6) | % | n/a | |||||||||||
Same store warehouse services revenue per throughput pallet | $ | 31.38 | $ | 31.92 | $ | 30.02 | 4.5 | % | 6.3 | % |
Three Months Ended March 31, | Change | ||||||||||||||
Dollars in thousands | 2022 actual | 2022 constant currency(1) | 2021 actual | Actual | Constant currency | ||||||||||
NON-SAME STORE WAREHOUSE | |||||||||||||||
Number of non-same store warehouses(3) | 25 | 18 | n/a | n/a | |||||||||||
Global Warehouse non-same store revenue: | |||||||||||||||
Rent and storage | $ | 25,484 | $ | 25,802 | $ | 11,072 | n/r | n/r | |||||||
Warehouse services | 32,052 | 32,364 | 11,585 | n/r | n/r | ||||||||||
Total non-same store revenue | $ | 57,536 | $ | 58,166 | $ | 22,657 | n/r | n/r | |||||||
Global Warehouse non-same store contribution (NOI) | $ | 7,202 | $ | 7,354 | $ | 288 | n/r | n/r | |||||||
Global Warehouse non-same store margin | 12.5 | % | 12.6 | % | 1.3 | % | n/r | n/r | |||||||
Units in thousands except per pallet data | |||||||||||||||
Global Warehouse non-same store rent and storage metrics: | |||||||||||||||
Average economic occupied pallets | 377 | n/a | 205 | n/r | n/a | ||||||||||
Average physical occupied pallets | 348 | n/a | 186 | n/r | n/a | ||||||||||
Average physical pallet positions | 545 | n/a | 290 | n/r | n/a | ||||||||||
Economic occupancy percentage | 69.2 | % | n/a | 70.7 | % | n/r | n/a | ||||||||
Physical occupancy percentage | 63.9 | % | n/a | 64.0 | % | n/r | n/a | ||||||||
Non-same store rent and storage revenue per economic occupied pallet | $ | 67.62 | $ | 68.46 | $ | 53.97 | n/r | n/r | |||||||
Non-same store rent and storage revenue per physical occupied pallet | $ | 73.19 | $ | 74.11 | $ | 59.64 | n/r | n/r | |||||||
Global Warehouse non-same store services metrics: | |||||||||||||||
Throughput pallets | 966 | n/a | 584 | n/r | n/a | ||||||||||
Non-same store warehouse services revenue per throughput pallet | $ | 33.19 | $ | 33.51 | $ | 19.83 | 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) Total warehouse count of 240 includes two warehouses acquired through the Lago acquisition on November 15, 2021 (one leased facility from the Lago Cold Stores acquisition was exited upon expiration during the first quarter of 2022), one recently leased warehouse in Australia, one warehouse acquired through the Newark Facility Management acquisition on September 1, 2021, two facilities acquired through the ColdCo acquisition on August 2, 2021, one warehouse acquired through the Bowman Stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021 and three warehouses acquired through the Liberty acquisition on March 1, 2021. The results of these acquisitions are reflected in the results above since date of ownership.
(3) Non-same store warehouse count of 25 one recently leased warehouse in Australia, one recently constructed facility in Denver that we purchased in November 2021, two warehouses acquired through the Lago Cold Stores acquisition on November 15, 2021 (one leased facility from the Lago Cold Stores acquisition was exited upon expiration during the first quarter of 2022), one warehouse acquired through the Newark Facility Management acquisition on September 1, 2021, two facilities acquired through the ColdCo acquisition on August 2, 2021, one warehouse acquired through the Bowman stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, three remaining warehouses acquired through the Liberty Freezers acquisition on March 1, 2021 (one leased facility from the Liberty Freezers acquisition was exited during 2021), 11 warehouses in expansion or redevelopment and one warehouse which we ceased operations within as it is being prepared for lease to a third-party. The results of these acquisitions are reflected in the results above since date of ownership.
(n/a = not applicable)
(n/r = not relevant)
Fixed Commitment Rent and Storage Revenue
As of March 31, 2022,
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 2022, economic occupancy for the total warehouse segment was
Real Estate Portfolio
As of March 31, 2022, the Company’s portfolio consists of 249 facilities. The Company ended the first quarter of 2022 with 240 facilities in its Global Warehouse segment portfolio and nine facilities in its Third-party managed segment. During the first quarter of 2022, we completed the planned exited of a leased facility upon its expiration, which was recently acquired in connection with the Lago Cold Stores acquisition. The same store population consists of 215 facilities for the quarter ended March 31, 2022. The remaining 25 non-same store population includes the 12 facilities that were acquired in connection with the Bowman Stores, Brighton, ColdCo, KMT Brrr!, Lago Cold Stores, Liberty Freezers and Newark acquisitions, the recently leased facility in Australia, 11 facilities in expansion or redevelopment and a facility in which we ceased operations during the first quarter of 2022, in order to prepare for leasing to a third-party.
Balance Sheet Activity and Liquidity
As of March 31, 2022, the Company had total liquidity of approximately
Dividend
On March 10, 2022, the Company’s Board of Trustees declared a dividend of
2022 Outlook
The Company maintained its 2022 annual AFFO per share guidance to within the range of
Investor Webcast and Conference Call
The Company will hold a webcast and conference call on Thursday, May 5, 2022 at 5:00 p.m. Eastern Time to discuss first quarter 2022 results. A live webcast of the call will be available via the Investors section of Americold Realty Trust’s website at www.americold.com. To listen to the live webcast, please go to the site at least five minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly after the call, a replay of the webcast will be available for 90 days on the Company’s website.
The conference call can also be accessed by dialing 1-844-826-3033 or 1-412-317-5185. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 10165351. The telephone replay will be available starting shortly after the call until May 19, 2022.
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.
About the Company
Americold is the world’s largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses. Based in Atlanta, Georgia, Americold owns and operates 249 temperature-controlled warehouses, with approximately 1.5 billion refrigerated cubic feet of storage, in North America, Europe, Asia-Pacific, and South America. Americold’s facilities are an integral component of the supply chain connecting food producers, processors, distributors and retailers to consumers.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including FFO, core FFO, AFFO, EBITDAre, Core EBITDA; same store segment revenue and contribution (NOI); real estate debt and maintenance capital expenditures. Definitions of these non-GAAP metrics are included beginning on page 39, 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 report 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 report may not be comparable to similarly titled measures disclosed by other companies, including other REITs.
Forward-Looking Statements
This document 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: the impact of supply chain disruptions, including, among others, the impact on labor availability, raw material availability, manufacturing and food production; construction materials and transportation; uncertainties and risks related to public health crises, including the ongoing COVID-19 pandemic; adverse economic or real estate developments in our geographic markets or the temperature-controlled warehouse industry; rising interest rates and inflation in operating costs, including as a result of the COVID-19 pandemic; general economic conditions; labor and power costs; labor shortages; risks associated with the ownership of real estate generally and temperature-controlled warehouses in particular; acquisition risks, including the failure to identify or complete attractive acquisitions or the failure of acquisitions to perform in accordance with projections and to realize anticipated cost savings and revenue improvements; our failure to realize the intended benefits from our recent acquisitions, and including synergies, or disruptions to our plans and operations or unknown or contingent liabilities related to our recent acquisitions; 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; a failure of our information technology systems, systems conversions and integrations, cybersecurity attacks or a breach of our information security systems, networks or processes could cause business disruptions or loss of confidential information; risks related to privacy and data security concerns, and data collection and transfer restrictions and related foreign regulations; defaults or non-renewals of significant customer contracts, including as a result of the ongoing COVID-19 pandemic; uncertainty of revenues, given the nature of our customer contracts; our failure to obtain necessary outside financing; risks related to, or restrictions contained in, our debt financings; decreased storage rates or increased vacancy rates; risks related to current and potential international operations and properties; difficulties in expanding our operations into new markets, including international markets; risks related to the partial ownership of properties, including as a result of our lack of control over such investments and the failure of such entities to perform in accordance with projections; our failure to maintain our status as a REIT; possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently or previously owned by us; financial market fluctuations; actions by our competitors and their increasing ability to compete with us; changes in applicable governmental regulations and tax legislation, including in the international markets; geopolitical conflicts, such as the ongoing conflict between Russia and Ukraine; additional risks with respect to the addition of European operations and properties; changes in real estate and zoning laws and increases in real property tax rates; our relationship with our associates, including the occurrence of any work stoppages or any disputes under our collective bargaining agreements and employment related litigation; liabilities as a result of our participation in multi-employer pension plans; uninsured losses or losses in excess of our insurance coverage; the potential liabilities, costs and regulatory impacts associated with our in-house trucking services and the potential disruptions associated with our use of third-party trucking service providers to provide transportation services to our customers; the cost and time requirements as a result of our operation as a publicly traded REIT; changes in foreign currency exchange rates; the impact of anti-takeover provisions in our constituent documents and under Maryland law, which could make an acquisition of us more difficult, limit attempts by our shareholders to replace our trustees and affect the price of our common shares of beneficial interest,
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. Examples of forward-looking statements included in this document include, among others, statements about our expected acquisition and expected expansion and development pipeline and our targeted return on invested capital on expansion and development opportunities. 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 December 31, 2021, could cause our actual results to differ materially from those projected in any forward-looking statements we make. We assume no obligation to update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Contacts:
Americold Realty Trust
Investor Relations
Telephone: 678-459-1959
Email: investor.relations@americold.com
Americold Realty Trust and Subsidiaries | |||||||
Consolidated Balance Sheets (Unaudited) | |||||||
(In thousands, except shares and per share amounts) | |||||||
March 31, | December 31, | ||||||
2022 | 2021 | ||||||
Assets | |||||||
Property, buildings and equipment: | |||||||
Land | $ | 811,442 | $ | 807,495 | |||
Buildings and improvements | 4,163,054 | 4,152,763 | |||||
Machinery and equipment | 1,361,741 | 1,352,399 | |||||
Assets under construction | 512,694 | 450,153 | |||||
6,848,931 | 6,762,810 | ||||||
Accumulated depreciation | (1,708,031 | ) | (1,634,909 | ) | |||
Property, buildings and equipment – net | 5,140,900 | 5,127,901 | |||||
Operating lease right-of-use assets | 369,706 | 377,536 | |||||
Accumulated depreciation – operating leases | (61,359 | ) | (57,483 | ) | |||
Operating leases – net | 308,347 | 320,053 | |||||
Financing leases: | |||||||
Buildings and improvements | 13,557 | 13,552 | |||||
Machinery and equipment | 141,443 | 146,341 | |||||
155,000 | 159,893 | ||||||
Accumulated depreciation – financing leases | (56,471 | ) | (58,165 | ) | |||
Financing leases – net | 98,529 | 101,728 | |||||
Cash, cash equivalents and restricted cash | 50,965 | 82,958 | |||||
Accounts receivable – net of allowance of | 419,348 | 380,014 | |||||
Identifiable intangible assets – net | 968,099 | 980,966 | |||||
Goodwill | 1,068,479 | 1,072,980 | |||||
Investments in partially owned entities | 43,526 | 37,458 | |||||
Other assets | 109,676 | 112,139 | |||||
Total assets | $ | 8,207,869 | $ | 8,216,197 | |||
Liabilities and equity | |||||||
Liabilities: | |||||||
Borrowings under revolving line of credit | $ | 513,824 | $ | 399,314 | |||
Accounts payable and accrued expenses | 535,617 | 559,412 | |||||
Mortgage notes, senior unsecured notes and term loans – net of deferred financing costs of | 2,422,570 | 2,443,806 | |||||
Sale-leaseback financing obligations | 177,305 | 178,817 | |||||
Financing lease obligations | 91,436 | 97,633 | |||||
Operating lease obligations | 291,050 | 301,765 | |||||
Unearned revenue | 28,349 | 26,143 | |||||
Pension and postretirement benefits | 3,057 | 2,843 | |||||
Deferred tax liability – net | 165,331 | 169,209 | |||||
Multiemployer pension plan withdrawal liability | 8,091 | 8,179 | |||||
Total liabilities | 4,236,630 | 4,187,121 | |||||
Equity | |||||||
Shareholders’ equity: | |||||||
Common shares of beneficial interest, | 2,687 | 2,683 | |||||
Paid-in capital | 5,177,642 | 5,171,690 | |||||
Accumulated deficit and distributions in excess of net earnings | (1,234,875 | ) | (1,157,888 | ) | |||
Accumulated other comprehensive income (loss) | 15,926 | 4,522 | |||||
Total shareholders’ equity | 3,961,380 | 4,021,007 | |||||
Noncontrolling interests: | |||||||
Noncontrolling interests in operating partnership | 9,859 | 8,069 | |||||
Total equity | 3,971,239 | 4,029,076 | |||||
Total liabilities and equity | $ | 8,207,869 | $ | 8,216,197 |
Americold Realty Trust and Subsidiaries | |||||||
Consolidated Statements of Operations (Unaudited) | |||||||
(In thousands, except per share amounts) | |||||||
Three Months Ended March 31, | |||||||
2022 | 2021 | ||||||
Revenues: | |||||||
Rent, storage and warehouse services | $ | 540,925 | $ | 485,451 | |||
Third-party managed services | 85,860 | 73,072 | |||||
Transportation services | 78,910 | 76,272 | |||||
Total revenues | 705,695 | 634,795 | |||||
Operating expenses: | |||||||
Rent, storage and warehouse services cost of operations | 394,667 | 339,270 | |||||
Third-party managed services cost of operations | 82,359 | 68,690 | |||||
Transportation services cost of operations | 70,381 | 69,569 | |||||
Depreciation and amortization | 82,620 | 77,211 | |||||
Selling, general and administrative | 57,602 | 45,052 | |||||
Acquisition, litigation and other, net | 10,075 | 20,751 | |||||
Total operating expenses | 697,704 | 620,543 | |||||
Operating income | 7,991 | 14,252 | |||||
Other (expense) income: | |||||||
Interest expense | (25,773 | ) | (25,956 | ) | |||
Loss on debt extinguishment, modifications and termination of derivative instruments | (616 | ) | (3,499 | ) | |||
Other, net | 245 | 176 | |||||
Loss before income tax benefit (expense) | (18,153 | ) | (15,027 | ) | |||
Income tax benefit (expense) | |||||||
Current | (1,181 | ) | (1,211 | ) | |||
Deferred | 1,889 | 2,002 | |||||
Total income tax benefit (expense) | 708 | 791 | |||||
Net loss | $ | (17,445 | ) | $ | (14,236 | ) | |
Net (loss) income attributable to non controlling interests | (38 | ) | 178 | ||||
Net loss attributable to Americold Realty Trust | $ | (17,407 | ) | $ | (14,414 | ) | |
Weighted average common shares outstanding – basic | 269,164 | 252,938 | |||||
Weighted average common shares outstanding – diluted | 269,999 | 252,938 | |||||
Net loss per common share of beneficial interest - basic | $ | (0.06 | ) | $ | (0.06 | ) | |
Net loss per common share of beneficial interest - diluted | $ | (0.06 | ) | $ | (0.06 | ) |
Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO | |||||||||||||||
(In thousands, except per share amounts - unaudited) | |||||||||||||||
Three Months Ended | |||||||||||||||
Q1 22 | Q4 21 | Q3 21 | Q2 21 | Q1 21 | |||||||||||
Net (loss) income | $ | (17,445 | ) | $ | (7,982 | ) | $ | 5,308 | $ | (13,399 | ) | $ | (14,236 | ) | |
Adjustments: | |||||||||||||||
Real estate related depreciation | 52,200 | 54,816 | 48,217 | 44,871 | 52,280 | ||||||||||
Net loss (gain) on asset disposals | 63 | 65 | (1 | ) | (13 | ) | (39 | ) | |||||||
Impairment charges on real estate assets | — | — | 224 | 1,528 | — | ||||||||||
Our share of reconciling items related to partially owned entities | 1,033 | 822 | 463 | 861 | 266 | ||||||||||
NAREIT Funds from operations | $ | 35,851 | $ | 47,721 | $ | 54,211 | $ | 33,848 | $ | 38,271 | |||||
Adjustments: | |||||||||||||||
Net (gain) loss on sale of non-real estate assets | (235 | ) | 861 | (171 | ) | (304 | ) | (119 | ) | ||||||
Acquisition, litigation and other | 10,075 | 20,567 | 6,338 | 3,922 | 20,751 | ||||||||||
Share-based compensation expense, IPO grants | — | — | — | — | 163 | ||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | 616 | 638 | 627 | 925 | 3,499 | ||||||||||
Foreign currency exchange (gain) loss | (325 | ) | 294 | 349 | 140 | (173 | ) | ||||||||
Our share of reconciling items related to partially owned entities | 347 | 74 | 122 | 89 | 154 | ||||||||||
Core FFO applicable to common shareholders | $ | 46,329 | $ | 70,155 | $ | 61,476 | $ | 38,620 | $ | 62,546 | |||||
Adjustments: | |||||||||||||||
Amortization of deferred financing costs and pension withdrawal liability | 1,146 | 1,104 | 1,088 | 1,085 | 1,148 | ||||||||||
Non-real estate asset impairment | — | — | 1,560 | — | — | ||||||||||
Amortization of below/above market leases | 508 | 843 | 1,017 | 362 | 39 | ||||||||||
Straight-line net rent | 204 | (302 | ) | 411 | (170 | ) | (155 | ) | |||||||
Deferred income tax (benefit) expense | (1,889 | ) | (10,151 | ) | (3,562 | ) | 6,568 | (2,002 | ) | ||||||
Share-based compensation expense, excluding IPO grants | 8,349 | 9,112 | 4,291 | 5,467 | 4,867 | ||||||||||
Non-real estate depreciation and amortization | 30,420 | 32,785 | 22,352 | 39,588 | 24,931 | ||||||||||
Maintenance capital expenditures(a) | (16,106 | ) | (20,808 | ) | (18,938 | ) | (20,488 | ) | (15,731 | ) | |||||
Our share of reconciling items related to partially owned entities | (107 | ) | (502 | ) | (100 | ) | 711 | 278 | |||||||
Adjusted FFO applicable to common shareholders | $ | 68,854 | $ | 82,236 | $ | 69,595 | $ | 71,743 | $ | 75,921 |
Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO (continued) | ||||||||||
(In thousands except per share amounts - unaudited) | ||||||||||
Three Months Ended | ||||||||||
Q1 22 | Q4 21 | Q3 21 | Q2 21 | Q1 21 | ||||||
NAREIT Funds from operations | $ | 35,851 | $ | 47,721 | $ | 54,211 | $ | 33,848 | $ | 38,271 |
Core FFO applicable to common shareholders | $ | 46,329 | $ | 70,155 | $ | 61,476 | $ | 38,620 | $ | 62,546 |
Adjusted FFO applicable to common shareholders | $ | 68,854 | $ | 82,236 | $ | 69,595 | $ | 71,743 | $ | 75,921 |
Reconciliation of weighted average shares: | ||||||||||
Weighted average basic shares for net income calculation | 269,164 | 267,499 | 261,865 | 253,213 | 252,938 | |||||
Dilutive stock options, unvested restricted stock units, equity forward contracts | 835 | 680 | 685 | 3,544 | 3,226 | |||||
Weighted average dilutive shares | 269,999 | 268,179 | 262,550 | 256,757 | 256,164 | |||||
NAREIT FFO - basic per share | $ | 0.13 | $ | 0.18 | $ | 0.21 | $ | 0.13 | $ | 0.15 |
NAREIT FFO - diluted per share | $ | 0.13 | $ | 0.18 | $ | 0.21 | $ | 0.13 | $ | 0.15 |
Core FFO - basic per share | $ | 0.17 | $ | 0.26 | $ | 0.23 | $ | 0.15 | $ | 0.25 |
Core FFO - diluted per share | $ | 0.17 | $ | 0.26 | $ | 0.23 | $ | 0.15 | $ | 0.24 |
Adjusted FFO - basic per share | $ | 0.26 | $ | 0.31 | $ | 0.27 | $ | 0.28 | $ | 0.30 |
Adjusted FFO - diluted per share | $ | 0.26 | $ | 0.31 | $ | 0.27 | $ | 0.28 | $ | 0.30 |
Reconciliation of Net (Loss) Income to EBITDA, NAREIT EBITDAre, and Core EBITDA | |||||||||||||||||||
(In thousands - unaudited) | |||||||||||||||||||
Three Months Ended | Trailing Twelve Months Ended | ||||||||||||||||||
Q1 22 | Q4 21 | Q3 21 | Q2 21 | Q1 21 | Q1 2022 | ||||||||||||||
Net (loss) income | $ | (17,445 | ) | $ | (7,982 | ) | $ | 5,308 | $ | (13,399 | ) | $ | (14,236 | ) | $ | (33,518 | ) | ||
Adjustments: | |||||||||||||||||||
Interest expense | 25,773 | 21,339 | 25,303 | 26,579 | 25,956 | 98,994 | |||||||||||||
Income tax (benefit) expense | (708 | ) | (9,526 | ) | (226 | ) | 8,974 | (791 | ) | (1,486 | ) | ||||||||
Depreciation and amortization | 82,620 | 87,601 | 70,569 | 84,459 | 77,211 | 325,249 | |||||||||||||
EBITDA | $ | 90,240 | $ | 91,432 | $ | 100,954 | $ | 106,613 | $ | 88,140 | $ | 389,239 | |||||||
Adjustments: | |||||||||||||||||||
Adjustment to reflect share of EBITDAre of partially owned entities | 3,198 | 4,625 | 1,854 | 1,838 | 649 | 11,515 | |||||||||||||
NAREIT EBITDAre | $ | 93,438 | $ | 96,057 | $ | 102,808 | $ | 108,451 | $ | 88,789 | $ | 400,754 | |||||||
Adjustments: | |||||||||||||||||||
Acquisition, litigation and other | 10,075 | 20,567 | 6,338 | 3,922 | 20,751 | 40,902 | |||||||||||||
Loss from investments in partially owned entities | 2,112 | 753 | 490 | 61 | 700 | 3,416 | |||||||||||||
Asset impairment | — | — | 1,784 | 1,528 | — | 3,312 | |||||||||||||
Foreign currency exchange (gain) loss | (325 | ) | 294 | 349 | 140 | (173 | ) | 458 | |||||||||||
Share-based compensation expense | 8,349 | 9,112 | 4,291 | 5,467 | 5,030 | 27,219 | |||||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | 616 | 638 | 627 | 925 | 3,499 | 2,806 | |||||||||||||
(Gain) loss on real estate and other asset disposals | (172 | ) | 926 | (172 | ) | (317 | ) | (158 | ) | 265 | |||||||||
Reduction in EBITDAre from partially owned entities | (3,198 | ) | (4,625 | ) | (1,854 | ) | (1,838 | ) | (649 | ) | (11,515 | ) | |||||||
Core EBITDA | $ | 110,895 | $ | 123,722 | $ | 114,661 | $ | 118,339 | $ | 117,789 | $ | 467,617 |
(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. |
Revenue and Contribution (NOI) by Segment | |||||||
(in thousands - unaudited) | |||||||
Three Months Ended March 31, | |||||||
2022 | 2021 | ||||||
Segment revenues: | |||||||
Warehouse | $ | 540,925 | $ | 485,451 | |||
Third-party managed | 85,860 | 73,072 | |||||
Transportation | 78,910 | 76,272 | |||||
Total revenues | 705,695 | 634,795 | |||||
Segment contribution (NOI): | |||||||
Warehouse | 146,258 | 146,181 | |||||
Third-party managed | 3,501 | 4,382 | |||||
Transportation | 8,529 | 6,703 | |||||
Total segment contribution (NOI) | 158,288 | 157,266 | |||||
Reconciling items: | |||||||
Depreciation and amortization | (82,620 | ) | (77,211 | ) | |||
Selling, general and administrative | (57,602 | ) | (45,052 | ) | |||
Acquisition, litigation and other, net | (10,075 | ) | (20,751 | ) | |||
Interest expense | (25,773 | ) | (25,956 | ) | |||
Loss on debt extinguishment, modifications and termination of derivative instruments | (616 | ) | (3,499 | ) | |||
Other, net | 245 | 176 | |||||
Loss before income tax benefit (expense) | $ | (18,153 | ) | $ | (15,027 | ) |
We view and manage our business through three primary business segments—warehouse, third-party managed and transportation. 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, blast freezing, case-picking, kitting and repackaging and other recurring handling services.
Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to several leading food retailers and manufacturers in customer-owned facilities, including some of our largest and longest-standing customers. 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 to many of our key customers underscores our ability to offer a complete and integrated suite of services across the cold chain.
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 services, we charge a fixed fee.
Notes and Definitions |
We calculate funds from operations, or FFO, in accordance with the standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as net income or loss determined in accordance with U.S. GAAP, excluding extraordinary items as defined under U.S. GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, real estate asset impairment and our share of reconciling items for partially owned entities. We believe that FFO is helpful to investors as a supplemental performance measure because it excludes the effect of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, FFO can facilitate comparisons of operating performance between periods and among other equity REITs. |
We calculate core funds from operations, or Core FFO, as FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, acquisition, litigation and other, net, share-based compensation expense for the IPO retention grants, loss on debt extinguishment, modifications and termination of derivative instruments and foreign currency exchange gain or loss. We also adjust for the impact of Core FFO attributable to partially owned entities. We have elected to reflect our share of Core FFO attributable to partially owned entities since the Brazil joint ventures are strategic partnerships which we continue to actively participate in on an ongoing basis. The previous joint venture, the China JV, was considered for disposition during the periods presented. 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 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 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, non-real estate asset impairment, amortization of above or below market leases, straight-line net rent, provision or benefit from deferred income taxes, share-based compensation expense, excluding IPO grants, 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. 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 U.S. GAAP net income and net income per diluted share (the most directly comparable U.S. GAAP measures) in evaluating our operating performance. FFO, Core FFO and Adjusted FFO do not represent net income or cash flows from operating activities in accordance with U.S. GAAP and are not indicative of our results of operations or cash flows from operating activities as disclosed in our consolidated statements of operations included in our annual and quarterly reports. FFO, Core FFO and Adjusted FFO should be considered as supplements, but not alternatives, to our net income or cash flows from operating activities as indicators of our operating performance. Moreover, other REITs may not calculate FFO in accordance with the NAREIT definition or may interpret the NAREIT definition differently than we do. Accordingly, our FFO may not be comparable to FFO as calculated by other REITs. In addition, there is no industry definition of Core FFO or Adjusted FFO and, as a result, other REITs may also calculate Core FFO or Adjusted FFO, or other similarly-captioned metrics, in a manner different than we do. The table above reconciles FFO, Core FFO and Adjusted FFO to net income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP. |
We calculate EBITDA for Real Estate, or EBITDAre, in accordance with the standards established by the Board of Governors of NAREIT, defined as, earnings before interest expense, taxes, depreciation and amortization and adjustment to reflect our share of EBITDAre of partially owned entities. EBITDAre is a measure commonly used in our industry, and we present EBITDAre to enhance investor understanding of our operating performance. We believe that EBITDAre provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and useful life of related assets among otherwise comparable companies. |
We also calculate our Core EBITDA as EBITDAre further adjusted for acquisition, litigation and other, net, loss or income from investments in partially owned entities, asset impairment, foreign currency exchange gain or loss, share-based compensation expense, loss on debt extinguishment, modifications and termination of derivative instruments, loss or gain on real estate and asset disposals and reduction in EBITDAre from partially owned entities. 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 EBITDA but which we do not believe are indicative of our core business operations. EBITDA and Core EBITDA are not measurements of financial performance under U.S. GAAP, and our EBITDA and Core EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and Core EBITDA as alternatives to net income or cash flows from operating activities determined in accordance with U.S. GAAP. Our calculations of EBITDA and Core EBITDA have limitations as analytical tools, including: |
- 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 U.S. GAAP. |
We define our “same store” population once a year at the beginning of the current calendar year. Our same store population includes properties that were owned or leased for the entirety of two comparable periods and that have reported at least twelve months of consecutive normalized operations prior to January 1 of the prior calendar year. We define “normalized operations” as properties that have been open for operation or lease after development or significant modification, including the expansion of a warehouse footprint or a warehouse rehabilitation subsequent to an event, such as a natural disaster or similar event causing disruption to operations. In addition, our definition of “normalized operations” takes into account changes in the ownership structure (e.g., purchase of acquired properties will be included in the “same store” population if owned by us as of the first business day of each year, of the prior calendar year and still owned by us as of the end of the current reporting period, unless the property is under development). The “same store” pool is also adjusted to remove properties that were sold or entering development subsequent to the beginning of the current calendar year. As such, the “same store” population for the period ended March 31, 2022 includes all properties that we owned at January 3, which had both been owned and had reached “normalized operations” by January 3, 2022. |
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, litigation 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 U.S. dollars for both periods. We evaluate the performance of the warehouses we own or lease using a “same store” analysis, and we believe that same store contribution (NOI) is helpful to investors as a supplemental performance measure because it includes the operating performance from the population of properties that is consistent from period to period and also on a constant currency basis, thereby eliminating the effects of changes in the composition of our warehouse portfolio and currency fluctuations on performance measures. Same store contribution (NOI) is not a measurement of financial performance under U.S. GAAP. In addition, other companies providing temperature-controlled warehouse storage and handling and other warehouse services may not define same store or calculate same store contribution (NOI) in a manner consistent with our definition or calculation. Same store contribution (NOI) should be considered as a supplement, but not as an alternative, to our results calculated in accordance with U.S. GAAP. The tables beginning on page 30 provides reconciliations for same store revenues and same store contribution (NOI). |
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 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 20 for additional information regarding our indebtedness. |
All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited. |
FAQ
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