American Technology (ATCO) Misses Q2 EPS by 2c, Revenues Beat; Updated FY20 Revenue Guidance Below Consensus

American Technology (NYSE: ATCO) reported Q2 EPS of $0.26, $0.02 worse than the analyst estimate of $0.28. Revenue for the quarter came in at $363.8 million versus the consensus estimate of $356.8 million.

• Delivered Funds From Operations (FFO)(1) per Share, Diluted, of $0.64 and Adjusted EBITDA(1) of $238.9 million for the quarter; introduced as new key performance metrics
• Declared dividend of $0.125 per common share; 15 years of consistent distributions
• Achieved record quarterly revenue of $363.8 million in first full quarter of APR ownership
• Liquidity of $382.9 million at quarter end; extended $150.0 million revolving credit facility
• Seaspan agreed to acquire two vessels backed by long-term charters, with contracted revenue of over $150.0 million; secured charters for full fleet of 125 vessels
• APR achieved COD on all 8 turbines over three peaking power plants in Mexicali
• Seaspan achieved investment grade BBB- Senior Secured rating(2)

Comments from ManagementBing Chen, CEO of Atlas, commented, "I am proud of how our businesses responded to the unprecedented global challenges during the second quarter and truly appreciate our entire team's efforts in delivering best-in-class customer service. The results are evident in Seaspan's fully contracted fleet and our successful transfer of over 800 crew members during global port challenges. Likewise, we continue to deliver operational excellence at APR to achieve COD on three new power plants despite the logistical challenges around the world. Atlas' resilient business model, with $4.6 billion of long-term contracted revenue, is well positioned to take advantage of future opportunities as the market shock accelerates consolidation in the containership space, as well as the need for temporary and fast-track power."

Ryan Courson, CFO of Atlas, said, "The recent announcement of our agreement to acquire two additional containerships on long-term charters, marks approximately $3.4 billion in capital deployed since the beginning of 2018. During this period, we have prudently allocated capital toward deleveraging our balance sheet, reinvesting into assets with strong risk-adjusted returns, and returning cash to our investors through our dividend. We have accomplished all of this while remaining disciplined with our balance sheet, finishing the quarter with over $380 million of liquidity and also achieving an external investment grade credit rating on a central component of Seaspan's capital structure. We remain confident in the resiliency of our business model, tightening and reaffirming our 2020 guidance for Seaspan and APR respectively, and delivering FFO per Share of $0.64 during the second quarter."

GUIDANCE:

American Technology sees FY2020 revenue of $1.19-1.22 billion, versus the consensus of $1.39 billion.

For earnings history and earnings-related data on American Technology (ATCO) click here.

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