Americold Realty Trust(US:COLD)2020-05-08 20:19Operations and Acquisitions - As of March 31, 2020, the company operated 183 temperature-controlled warehouses globally, encompassing over 1 billion cubic feet, with 161 in the United States[270] - The company completed the acquisition of Cloverleaf for approximately $1.24 billion on May 1, 2019, adding 22 facilities across nine states to its operations[285] - The company completed the acquisition of Nova Cold for CAD 337.3 million (USD 259.5 million) on January 2, 2020, which included four temperature-controlled facilities[289] - The company has a minority interest in a Brazil joint venture that operates 19 temperature-controlled warehouses[270] - The company exited less strategic markets, including the sale of certain warehouse assets and the exit of the China joint venture, as part of its portfolio management strategy[301] Financial Performance - The company reported revenues from its warehouse segment primarily from rent, storage, and warehouse services fees, which are key drivers of financial performance[271] - Warehouse segment revenues for Q1 2020 were $381.1 million, an increase of $91.5 million or 31.6% compared to Q1 2019[325] - On a constant currency basis, warehouse segment revenues increased to $386.2 million, a rise of $96.6 million or 33.4% year-over-year[325] - The increase in revenues was driven by the acquisition of 31 facilities and higher grocery demand due to the COVID-19 pandemic[325] - Warehouse segment contribution (NOI) increased by $36.0 million or 39.6% to $126.8 million compared to Q1 2019[329] Costs and Expenses - Labor is the largest component of the cost of operations in the warehouse segment, influenced by headcount, compensation levels, and workplace safety programs[272] - Warehouse segment cost of operations was $254.3 million for Q1 2020, up $55.5 million or 27.9% from Q1 2019[328] - On a constant currency basis, the cost of operations rose to $258.3 million, an increase of $59.5 million or 29.9% year-over-year[328] - Corporate-level selling, general, and administrative expenses were $36.9 million for Q1 2020, an increase of $5.8 million, or 18.6%, compared to Q1 2019, partly due to the Cloverleaf Acquisition[362] Cash Flow and Financing - Net cash provided by operating activities increased by $28.6 million, or 53.9%, to $81.6 million for the three months ended March 31, 2020, compared to $53.0 million in 2019[448] - Net cash used in investing activities was $359.2 million for the three months ended March 31, 2020, significantly higher than $58.7 million in 2019, primarily due to $315.6 million related to acquisitions[449] - Net cash provided by financing activities was $315.1 million for the three months ended March 31, 2020, compared to net cash used of $29.1 million in 2019, driven by $233.6 million from an equity forward contract and $177.1 million from refinancing[450] Market and Economic Conditions - The company closely monitors the impact of the COVID-19 pandemic on its operations, although it did not incur significant disruptions during the three months ended March 31, 2020[292] - The COVID-19 pandemic has not significantly disrupted the company during the three months ended March 31, 2020, but future impacts remain uncertain[389] Debt and Liquidity - Total outstanding indebtedness as of March 31, 2020, was $1.83 billion, an increase from $1.71 billion as of December 31, 2019[403] - The company refinanced its existing credit facilities, entering into a new $800 million Senior Unsecured Revolving Credit Facility and a Senior Unsecured Term Loan A Facility[405] - The effective interest rate for total debt was 4.30% as of March 31, 2020, down from 4.57% as of December 31, 2019[403] - The company expects to fund its working capital and capital commitments through current cash balances, cash flows from operations, and other financing methods[387] Performance Metrics - The average economic occupancy of the company's warehouses is a key driver of financial results, with a focus on fixed storage commitments to mitigate seasonal impacts[305] - Economic occupancy at same stores increased to 81.8% for the three months ended March 31, 2020, up 337 basis points from 78.4% in the same period of 2019[340] - Same store revenues for Q1 2020 totaled $291.9 million, a 5.0% increase from $278.1 million in Q1 2019[333] Other Financial Metrics - Net income for the three months ended March 31, 2020, was $23,511, compared to a loss of $4,629 in 2019[379] - NAREIT Funds from Operations (FFO) for the same period was $56,891, up from $31,018 in 2019, representing an increase of 83.3%[379] - EBITDAre for the three months ended March 31, 2020, was $97,040, compared to $48,146 in 2019, indicating a significant increase of 101.5%[384]