Americold Realty Trust(US:COLD)2024-08-08 20:04Warehouse Operations - As of June 30, 2024, the company operates 239 warehouses globally, totaling approximately 1.4 billion cubic feet, with 195 in North America, 25 in Europe, 17 in Asia-Pacific, and 2 in South America[99]. - As of June 30, 2024, the total number of warehouses is 239, with 9 non-same store warehouses and 4 third-party managed warehouses[130]. - For the three months ended June 30, 2024, total warehouse segment revenues were $600.4 million, a 3.3% increase compared to $581.2 million in the same period of 2023[145]. - On a constant currency basis, warehouse segment revenues increased by $29.9 million, or 5.2%, primarily driven by $29.8 million growth in the same store pool[146]. - The warehouse segment's contribution (NOI) for the three months ended June 30, 2024, was $204.5 million, an 18.3% increase from $172.8 million in the same period of 2023[145]. - Warehouse services revenues increased by 8.7% to $332.7 million for the three months ended June 30, 2024, compared to $306.0 million in 2023[145]. - Total warehouse segment cost of operations decreased by 3.1% to $395.9 million for the three months ended June 30, 2024, compared to $408.3 million in 2023[145]. - The total warehouse segment margin remained stable at 34.1% for both periods compared[145]. - Labor costs, the most significant part of warehouse expenses, were $245.6 million, a decrease of 3.2% compared to $253.8 million in the same period of 2023[145]. - Total same store revenues for the three months ended June 30, 2024, were $582,691,000, representing a 3.4% increase compared to the same period in 2023[148]. - Same store contribution (NOI) increased by 17.3% to $206,604,000 for the three months ended June 30, 2024, compared to $176,205,000 in the prior year[148]. - Same store rent and storage revenues per average economic occupied pallet increased by 7.2% to $63.38 for the three months ended June 30, 2024[152]. - Total same store cost of operations decreased by 2.9% to $376,087,000 for the three months ended June 30, 2024[148]. - Non-same store revenues totaled $17,696,000 for the three months ended June 30, 2024, compared to $17,619,000 in the prior year[150]. Financial Performance - The company has incurred $107.3 million in implementation costs related to "Project Orion," with $69.4 million deferred within "Other assets" on the Condensed Consolidated Balance Sheets as of June 30, 2024[108]. - During the three months ended June 30, 2024, the company recognized a $115.1 million loss on debt extinguishment related to the purchase of facilities previously accounted for as failed sale-leaseback financing obligations[112]. - For the three months ended June 30, 2024, the net loss was $64,409 thousand, compared to a net loss of $104,802 thousand for the same period in 2023[208]. - NAREIT FFO for the three months ended June 30, 2024, was $(7,528) thousand, a decrease from $(52,358) thousand in the same period of 2023[208]. - Core FFO applicable to common stockholders for the three months ended June 30, 2024, was $95,023 thousand, up from $62,497 thousand in the same period of 2023[208]. - Adjusted FFO applicable to common stockholders for the three months ended June 30, 2024, was $109,397 thousand, compared to $75,557 thousand in the same period of 2023[208]. - The company reported maintenance capital expenditures of $22,832 thousand for the three months ended June 30, 2024[208]. - The company emphasizes that FFO, Core FFO, and Adjusted FFO are not measures of liquidity and should be evaluated alongside U.S. GAAP net income[211]. - The company’s financial measures may not be comparable to those of other REITs due to different calculation methods[207]. - The company’s EBITDAre is presented to enhance investor understanding of operating performance, unaffected by capital structure differences[210]. - Net cash provided by operating activities was $198.7 million for the six months ended June 30, 2024, an increase of $115.9 million compared to $82.8 million for the same period in 2023[244]. - For the six months ended June 30, 2024, net cash used in financing activities was $107.2 million, compared to net cash provided of $76.5 million in the same period of 2023[247]. Cybersecurity and Operational Resilience - The company successfully resumed operations at pre-cyberattack levels by June 30, 2023, following a cybersecurity incident that occurred on April 26, 2023[104]. - The company continues to enhance its cybersecurity policies and procedures following the incident, with many recommended remediation activities completed as of December 31, 2023[105]. - Cyber incident related costs decreased by $29.9 million, primarily due to a $10.0 million payment received for business interruption insurance[165]. Cost Management and Efficiency - The company focuses on streamlining operations and reducing costs through initiatives such as centralizing processes and adopting new technology[100]. - The company has implemented energy efficiency projects, which have allowed for a reduction in energy consumption and costs[101]. - The company has implemented fixed commitment contracts with certain customers to manage earnings volatility due to seasonality[115]. - Economic occupancy is a key driver of financial results, with a focus on establishing contracts with fixed storage commitments to mitigate seasonal impacts[131]. - The company aims to transition existing customers to fixed storage commitments in conjunction with contract renewals to ensure necessary space for business needs[131]. Transportation Services - Transportation services revenue decreased by 12.8% to $50,637,000 for the three months ended June 30, 2024, compared to $58,072,000 in the prior year[157]. - Transportation segment contribution (NOI) decreased by 9.8% to $8,850,000 for the three months ended June 30, 2024[157]. - Transportation revenues decreased by $15.3 million, or 12.1%, on a constant currency basis, primarily due to the transition to a third-party logistics model in the UK and softening demand[188]. - Transportation cost of operations decreased by $14.7 million, or 14.1%, on a constant currency basis, reflecting the same factors affecting revenue[189]. Debt and Capital Expenditures - The company sold 13,244,905 common shares under the Prior ATM Equity Program in August 2023, generating net proceeds of $412.6 million, which were used to repay a portion of revolver borrowings[219]. - As of June 30, 2024, total outstanding indebtedness was $3,202,912 thousand, with a fixed rate debt percentage of 81.7%[227]. - The effective interest rate on outstanding indebtedness as of June 30, 2024, was 4.16%[226]. - The company maintains bad debt allowances of approximately $21.7 million as of June 30, 2024, which is considered adequate[222]. - The company incurred maintenance capital expenditures of $22.8 million for the three months ended June 30, 2024, compared to $22.6 million for the same period in 2023, reflecting a slight increase[1]. - The company recognized a gain from the sale of real estate amounting to $3.6 million from a facility sold for $9.0 million during the six months ended June 30, 2024[239].