Americold Realty Trust(US:COLD)2022-08-04 16:00Warehouse Operations - As of June 30, 2022, the company operated 249 temperature-controlled warehouses, encompassing approximately 1.5 billion cubic feet, with 202 in North America, 27 in Europe, 18 in Asia-Pacific, and 2 in South America[143] - The total number of warehouses as of June 30, 2022, was 249, with 213 classified as same-store warehouses, indicating a stable operational base[187] - The average economic occupancy of warehouses is a key performance indicator, with a focus on transitioning customers to contracts with fixed storage commitments to mitigate seasonal fluctuations[175] - Economic occupancy at same stores increased to 78.1% for the three months ended June 30, 2022, up 288 basis points from 75.3% in the prior year[212] - The company had 213 same store sites for the three months ended June 30, 2022[200] - The same store pool consisted of 213 same stores for the six months ended June 30, 2022[245] - Economic occupancy percentage for same store sites improved to 77.8%, up from 76.3% in 2021[252] Financial Performance - The company reported revenues of $153.2 million for the six months ended June 30, 2022, compared to $130.0 million for the same period in 2021, reflecting an increase of 17.9%[174] - For the three months ended June 30, 2022, revenues from a significant customer were $75.2 million, up from $64.1 million in the same period of 2021, representing a growth of 17.3%[174] - Warehouse segment revenues for Q2 2022 were $564.4 million, a 12.0% increase from $503.7 million in Q2 2021, and a 14.4% increase on a constant currency basis to $576.5 million[195] - Total warehouse segment revenues for the three months ended June 30, 2022, were $564,379,000, representing a 12.0% increase compared to $503,734,000 in the same period of 2021[206] - Total warehouse segment revenues for six months ended June 2022 were $1,105,304, an increase of 11.7% compared to $989,185 in 2021[250] - Same store total revenues reached $978,610, a 5.2% increase from $930,160 in 2021[248] - Third-party managed revenues were $169.3 million for the six months ended June 30, 2022, an increase of $24.1 million, or 16.6%, compared to $145.2 million for the same period in 2021[261] Cost and Expenses - The cost of operations for the warehouse segment increased to $413.4 million in Q2 2022, up 15.0% from $359.4 million in Q2 2021, with a 17.7% increase on a constant currency basis to $422.8 million[198] - Total warehouse cost of operations for the same period was $413,394,000, up 15.0% from $359,355,000 in the prior year[206] - Warehouse segment cost of operations was $808.1 million for the six months ended June 30, 2022, an increase of $109.4 million, or 15.7%, compared to the same period in 2021[243] - Same store cost of operations totaled $696,558, an 8.3% increase from $643,453 in 2021[248] - Labor costs increased by $55.9 million, reflecting inflationary pressures and labor inefficiencies[243] - Corporate-level selling, general and administrative expenses increased to $56.3 million, up by $13.8 million or 32.5% from $42.5 million in the prior year[228] Joint Ventures and Market Presence - The company formed a joint venture, Americold LATAM Holdings Ltd, with a partner committing approximately $209.0 million for 85% equity, while the company retained 15%[163] - The company holds three minority interests in South American joint ventures, enhancing its market presence in the region[143] - The company has exited less strategic markets and business lines, including the sale of certain warehouse assets and the exit of the China joint venture, to streamline operations and reduce costs[171] Inflation and Economic Factors - Inflation has significantly impacted the cost of services, prompting the company to initiate out-of-cycle rate increases in customer contracts[158] - Labor availability continues to be a primary constraint on food production, affecting the company's operations and its customers[157] - The company expects to continue monitoring and implementing further inflation and pricing increases into 2022[158] - The foreign currency translation had a net unfavorable impact of $12.1 million on revenues during Q2 2022 due to the strengthening of the U.S. dollar[197] - The foreign currency translation had a $19.9 million unfavorable impact on revenues during the six months ended June 30, 2022[242] Tax and Income - Income tax benefit for the three months ended June 30, 2022, was $12.1 million, an increase of $21.0 million from an income tax expense of $9.0 million in the same quarter of 2021[236] - Income tax benefit for the six months ended June 30, 2022, was $12.8 million, an increase of $21.0 million compared to an income tax expense of $8.2 million for the same period in 2021[280] - Net income for the three months ended June 30, 2022, was $3,953,000, compared to a net loss of $13,399,000 for the same period in 2021[290] Capital Expenditures and Investments - Maintenance capital expenditures for the three months ended June 30, 2022, were $20,118,000, compared to $20,488,000 in 2021[313] - The company incurred approximately $21.3 million for contemplated future expansion or development projects during the six months ended June 30, 2022[321] - The company invested $4.4 million in the formation of the LATAM joint venture during the six months ended June 30, 2022[327] Debt and Financing - As of June 30, 2022, total outstanding indebtedness was $3,223,017,000, with fixed-rate debt comprising 70% and variable-rate debt 30%[307] - The effective interest rate of outstanding debt remained consistent at 3.24% for the six months ended June 30, 2021, and 3.23% for the same period in 2022[277] - The company has investment grade credit ratings of BBB from Fitch and DBRS Morningstar, and Baa3 from Moody's, which are crucial for favorable debt issuance[309] Other Financial Metrics - NAREIT Funds from operations (FFO) for the six months ended June 30, 2022, was $92.9 million, compared to $72.1 million for the same period in 2021, reflecting a year-over-year increase of 28.7%[285] - Core FFO applicable to common shareholders for the six months ended June 30, 2022, was $111.7 million, an increase from $101.2 million in the same period of 2021[285] - Adjusted FFO applicable to common shareholders for the six months ended June 30, 2022, was $142.7 million, compared to $147.7 million for the same period in 2021[285]