Americold Realty Trust(COLD)2025-02-27 22:30Acquisitions and Investments - In 2023, the company acquired Safeway for 35.1 million (approximately 4.0 million, which included a cold storage warehouse in Dubai[25]. - The company sold its remaining 15% equity interest in the LATAM JV for total proceeds of 161.4 million aimed at transforming technology systems and business processes[39]. - The unamortized balance of Project Orion deferred costs was 4.2 million for the year ended December 31, 2024[41]. Warehouse Operations and Revenue - As of December 31, 2024, the company operated a global network of 239 temperature-controlled warehouses, encompassing approximately 1.4 billion cubic feet[19]. - The company aims to increase committed revenues in its warehouse segment by transitioning to fixed storage commitments from an as-utilized basis[33]. - The company is focused on expanding its portfolio of temperature-controlled warehouses through strategic acquisitions and development opportunities[34]. - The company anticipates continued outsourcing of temperature-controlled warehousing needs by food producers and retailers, capitalizing on this trend[35]. - The company is well-positioned to benefit from e-commerce growth, serving as a bridge between food producers and fulfillment centers[37]. - As of December 31, 2024, the company served approximately 3,200 customers, with the top 25 customers generating 51% of total warehouse segment revenues[49]. - The company’s warehouse segment revenues from the top 25 customers were 51%, 49%, and 47% for the years ended December 31, 2024, 2023, and 2022, respectively[49]. Workforce and Training - The company has a global workforce of approximately 13,755 employees, with 78% located in North America[61]. - The company successfully negotiated and renewed 16 collective bargaining agreements in 2024, with no work stoppages[62]. - The company completed over 316,890 hours of training for associates in 2024, enhancing leadership capabilities across the organization[69]. - The company expects to engage in negotiations for an additional 12 collective bargaining agreements in 2025, covering approximately 5% of the associate population[63]. - Approximately 31% of the company's associates are represented by local labor unions, with 79 out of 239 warehouses having unionized associates[62][63]. Safety and Compliance - Americold finished 2024 with a Total Recordable Incident Rate (TRIR) of 2.24, significantly below the industry average of 4.3[75]. - The company is self-insured for workers' compensation and health insurance under a large-deductible program, with accrued liabilities deemed appropriate for covering losses[103]. - The company’s facilities are subject to various environmental laws, and non-compliance could materially affect business operations and financial condition[91]. - The company must comply with the Food Safety Modernization Act, which requires a food safety system that includes hazard analysis and preventive controls[93]. - The company carries comprehensive insurance coverage, including general liability and environmental coverage, deemed adequate for its properties[102]. Sustainability and Community Engagement - The company’s warehouses utilize energy-efficient technologies, including LED lighting and solar power, to improve energy efficiency[42]. - In 2024, associates recorded over 5,800 volunteer hours supporting global causes, including over 800,000 lbs. of food transported, resulting in over 660,000 meals for families in need[73]. - The Corporate Sustainability Reporting Directive (CSRD) will require detailed sustainability-related reports starting in 2025, potentially increasing compliance costs[99]. - The company is committed to conducting business consistent with high ethical standards, including a supplier code of conduct and an anonymous Ethics Helpline[87]. - The company has adopted a Human Rights Policy overseen by its Board, ensuring compliance with the United Nations Universal Declaration of Human Rights[88]. Technology and Process Improvement - The company is deploying a global ERP system to enhance data accuracy and streamline processes[70]. - The company has implemented fixed commitment contracts with certain customers to mitigate revenue volatility caused by seasonality[53]. - Americold's safety software system, Vector, will be redeployed globally in 2025 to enhance hazard recognition and reporting among associates[82].