Americold Realty Trust(COLD) - 2020 Q4 - Annual Report

Financial Performance and Investments - The company completed an initial public offering on January 23, 2018, issuing 33,350,000 common shares and generating net proceeds of approximately $493.6 million after costs[26] - The company aims to enhance operating and financial results through proactive asset management and has made significant investments in its business over the last several years[30] - The company completed the acquisition of Agro Merchants Group for a total transaction cost of approximately $1.7 billion, which includes cash consideration of $1.08 billion and the issuance of common shares valued at $512.1 million[24] - The company acquired Hall's Warehouse Corporation for $489.2 million on November 2, 2020[23] Revenue and Customer Base - The company has transitioned a significant portion of its rent and storage revenues from an as-utilized basis to a fixed storage commitment basis, which is expected to provide commercial advantages[31] - The company’s warehouse portfolio serves approximately 2,500 customers, with the top 25 customers generating 55%, 60%, and 63% of total warehouse segment revenues for the years ended December 31, 2020, 2019, and 2018, respectively[44] - The warehouse segment generates 55%, 60%, and 63% of total warehouse segment revenues from the 25 largest customers for the years ended December 31, 2020, 2019, and 2018, respectively[44] - The company serves approximately 2,500 customers, primarily in the frozen and perishable food sectors, providing stable cash flows and growth potential[44] Business Segments and Operations - The company operates through three primary business segments: warehouse, third-party managed, and transportation, with the core business being the warehouse segment[38] - The company manages its business through three primary segments: warehouse, third-party managed, and transportation[38] - The company has expanded its transportation services through acquisitions, including the Halls acquisition and Agro Merchants, enhancing its service offerings in the U.S., Ireland, and the UK[42] Strategic Positioning and Market Trends - The company is strategically positioned to capitalize on increased outsourcing by global food producers and retailers, anticipating continued demand for third-party temperature-controlled warehousing[33] - The company believes its strategic locations and extensive geographic presence are fundamental to optimizing customers' distribution networks and reducing supply-chain risks[18] - The company is well-positioned to benefit from e-commerce growth, leveraging its warehouse capabilities to serve both online and traditional retailers[35] - The company anticipates continued outsourcing of temperature-controlled warehousing needs by food producers and retailers, positioning itself to capitalize on this trend[33] - The company serves as a bridge between food producers and fulfillment centers, aiming to benefit from the growth of e-commerce[35] Employee Relations and Labor - The company employs approximately 16,300 people worldwide, with 37% represented by local labor unions[57] - In 2021, the company expects to negotiate 11 additional collective bargaining agreements, covering about 3.3% of its employee population[58] - The company has successfully negotiated 95 collective bargaining agreements since January 1, 2016, without any work stoppages[57] Compliance and Safety - The company is committed to compliance with food safety regulations, including the Food Safety Modernization Act, which requires a comprehensive food safety system[71] - The company emphasizes safety and health, providing ongoing training and personal protective equipment to associates[63] - OSHA regulations require the company to maintain a safe work environment, with potential substantial penalties for non-compliance[74] - International facilities are subject to various local laws, and failure to comply could materially affect the company's financial condition and operations[75] Insurance and Risk Management - The company carries comprehensive insurance coverage, including general liability and business interruption, to protect its operations[76] - The company is self-insured for workers' compensation and health insurance under a large-deductible program, with excess loss coverage for significant claims[77] - The company does not carry insurance for generally uninsured losses but includes coverage for terrorism and has specific insurance for earthquake and flood risks[78] Community Engagement and Ethics - The company partners with organizations like Feed the Children to support community outreach efforts, providing donations and volunteer opportunities[67] - The company is committed to the highest standards of business ethics, with regular training and policies in place to prevent discrimination and harassment[65] - The company provides a range of employee benefits, including a new Employee Stock Purchase Program (ESPP) to enhance engagement[64] Environmental Compliance - Compliance with environmental laws incurs significant capital and operating costs, and future changes could adversely affect financial conditions and shareholder distributions[69]