Americold Realty Trust(US:COLD)2023-11-01 16:00Financial Performance - Total revenues for the three months ended September 30, 2023, were $667,939,000, a decrease of 12% compared to $757,780,000 for the same period in 2022[14] - Operating income for the three months ended September 30, 2023, was $33,000,000, compared to $23,170,000 for the same period in 2022, reflecting a 42% increase[14] - Net loss attributable to Americold Realty Trust, Inc. for the three months ended September 30, 2023, was $2,088,000, compared to a net loss of $8,912,000 for the same period in 2022[14] - Total operating expenses for the three months ended September 30, 2023, were $634,939,000, a decrease from $734,610,000 for the same period in 2022, reflecting a reduction of about 14%[14] - The company reported a loss from continuing operations of $2,299,000 for the three months ended September 30, 2023, compared to a loss of $7,453,000 for the same period in 2022, showing an improvement of about 69%[14] - The company reported a total comprehensive loss of $913 for the three months ended September 30, 2023, compared to a total comprehensive loss of $25,688 for the same period in 2022[32] - Net loss for the three months ended September 30, 2023, was $30, compared to a net loss of $8,937 for the same period in 2022[32] - Net loss for the nine months ended September 30, 2023, was $109,469, compared to a net loss of $22,429 for the same period in 2022[32] Assets and Liabilities - Total liabilities as of September 30, 2023, were $4,067,069,000, down from $4,316,683,000 as of December 31, 2022, indicating a reduction of approximately 6%[13] - Total assets as of September 30, 2023, amounted to $8,013,719, a decrease from $8,104,561 as of December 31, 2022[29] - Stockholders' equity increased to $3,929,855,000 as of September 30, 2023, from $3,773,419,000 as of December 31, 2022, representing a growth of about 4%[13] - Cash, cash equivalents, and restricted cash as of September 30, 2023, were $53,831, slightly up from $53,063 as of December 31, 2022[29] - Accounts receivable, net of allowance, was $424,540 as of September 30, 2023, down from $430,042 as of December 31, 2022[29] - Identifiable intangible assets, net, decreased to $897,238 as of September 30, 2023, from $925,223 as of December 31, 2022[29] - Goodwill as of September 30, 2023, was $1,022,989, a slight decrease from $1,033,637 as of December 31, 2022[29] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2023, was $193.213 million, compared to $182.883 million in 2022[39] - Net cash used in investing activities for the nine months ended September 30, 2023, was $258.378 million, compared to $288.008 million in 2022[39] - Total cash provided by financing activities was $69.1 million for the nine months ended September 30, 2023, primarily from $545.4 million in proceeds from the Senior Unsecured Revolving Credit Facility[196] - The ending cash, cash equivalents, and restricted cash balance as of September 30, 2023, was $53.831 million, compared to $45.693 million at the end of the same period in 2022[39] Revenue Segments - Rent, storage, and warehouse services revenue for the nine months ended September 30, 2023, was $1,778,827,000, up from $1,704,281,000 for the same period in 2022, marking an increase of approximately 4%[14] - Warehouse segment revenues for the three months ended September 30, 2023, were $602.6 million, reflecting a 0.6% increase compared to the same period in 2022[70] - The warehouse segment contribution (NOI) for the three months ended September 30, 2023, was $177.8 million, a 6.7% increase year-over-year[71] - Same store revenues for rent and storage increased by 5.0% to $257.9 million for the three months ended September 30, 2023[72] - Transportation revenues decreased by $20.8 million, or 27.2%, on a constant currency basis for the three months ended September 30, 2023, primarily due to a strategic transition to a third-party logistics model in the UK and softening demand[77] - The transportation segment contribution NOI decreased by 10.0% on a constant currency basis during the same period, reflecting the same factors[78] - Total warehouse segment revenues increased by 4.4% to $1,778.8 million for the nine months ended September 30, 2023[121] - Transportation revenues decreased by $51.1 million, or 21.5%, for the nine months ended September 30, 2023, compared to the same period in the prior year[130] Expenses and Costs - Interest expense for the three months ended September 30, 2023, was $35,572,000, compared to $30,402,000 for the same period in 2022, indicating an increase of approximately 17%[14] - Interest expense rose by $5.2 million, or 17.0%, to $35.6 million, with the effective interest rate increasing from 3.95% to 4.02%[88] - Corporate-level acquisition, cyber incident, and other costs increased by $9.1 million to $13.9 million for the three months ended September 30, 2023, with severance costs rising by 106%[85] - Depreciation and amortization for the nine months ended September 30, 2023, amounted to $259.644 million, up from $248.979 million in 2022[39] - Depreciation and amortization expense increased by $6.1 million, or 7.2%, due to recent expansions and developments[83] - Bad debt expense for the three months ended September 30, 2023, was $1.0 million, compared to $0.3 million for the same period in 2022, with total bad debt allowances at approximately $18.5 million as of September 30, 2023[179] Cybersecurity and Operational Challenges - The company is conducting a thorough review of a cybersecurity incident that began on April 26, 2023, affecting its internal controls over financial reporting[201][210] - Incremental charges related to the cybersecurity incident were $24.4 million for the nine months ended September 30, 2023, primarily due to internal labor costs and professional fees[48] - The company is continuing to invest in information technology to strengthen its information security infrastructure following a cybersecurity incident[48] - The company has engaged a leading cybersecurity defense firm to manage remediation efforts, with many recommended activities already completed[48] Acquisitions and Dispositions - The company successfully sold the Comfrio business in August 2023, which was classified as discontinued operations[44] - The company acquired a 78% interest in the Comfrio joint venture for a total consideration of $56.6 million, with $46.7 million funded during the nine months ended September 30, 2023[60] - The company sold the assets and liabilities of Comfrio in August 2023, resulting in a loss of $1.1 million from the sale[62] - The company recognized a gain of $0.3 million from the sale of its remaining 15% equity interest in the LATAM joint venture for total proceeds of $36.9 million[68] Shareholder and Stock Information - Weighted average common stock outstanding for the three months ended September 30, 2023, was 278,137,000 shares, an increase from 269,586,000 shares for the same period in 2022[14] - The Company entered into a 2023 ATM Equity Program allowing for the sale of up to $900.0 million of common shares, issuing 13,244,905 shares with net proceeds of $412.9 million during the three and nine months ended September 30, 2023[177][178] - The Company has a total indebtedness of $2,931.3 million as of September 30, 2023, net of deferred financing costs, amounting to $2,920.1 million[184]