AmeriCold Realty Trust (COLD) Tops Q4 EPS by 8c, Revenues Beat

AmeriCold Realty Trust (NYSE: COLD) reported Q4 EPS of $0.19, $0.08 better than the analyst estimate of $0.11. Revenue for the quarter came in at $415.8 million versus the consensus estimate of $310.87 million.

• Total revenue increased 3.5% to $415.8 million for the fourth quarter 2018; Total revenue increased 3.9% to $1.60 billion for the full year.
• Global Warehouse segment revenue increased 2.6% to $305.5 million for the fourth quarter 2018; Global Warehouse segment revenue increased 2.7% to $1.18 billion for the full year.
• Total contribution (NOI) increased 8.3% to $108.7 million for the fourth quarter 2018; Total contribution (NOI) increased 8.4% to $405.6 million for the full year.
• Global Warehouse segment contribution (NOI) increased 7.0% to $100.5 million for the fourth quarter 2018; Global Warehouse segment contribution (NOI) increased 7.5% to $374.5 million for the full year.
• Net income of $2.7 million, or $0.02 per diluted common share, and adjusted net income of $28.9 million for the fourth quarter 2018; Net income of $48.0 million, or $0.31 per diluted common share, and adjusted net income of $95.5 million for the full year.
• Core EBITDA increased 7.6% to $84.7 million for the fourth quarter 2018; Core EBITDA increased 6.8% to $306.8 million for the full year.
• Core Funds from Operations ("Core FFO") of $53.2 million, or $0.35 per diluted common share for the fourth quarter 2018; Core FFO of $175.0 million, or $1.21 per diluted common share for the full year.
• Adjusted Funds from Operations (“AFFO”) of $49.3 million, or $0.33 per diluted common share for the fourth quarter 2018; AFFO of $170.4 million, or $1.18 per diluted common share for the full year.
• Global Warehouse segment same store revenue grew 4.5% on a constant currency basis, with same store segment contribution (NOI) improving 6.9% on a constant currency basis for the fourth quarter 2018; Global Warehouse segment same store revenue grew 3.9% on a constant currency basis, with same store segment contribution (NOI) improving 7.4% on a constant currency basis for the full year.

“We are very proud of Americold’s accomplishments in 2018, our inaugural year as a public company. Our business remains strong and steady as we execute our strategy, having grown same store revenue and contribution in our Global Warehouse segment 3.9% and 7.4% on a constant currency basis, respectively, over the prior year. We continue to drive our customer mix, warehouse utilization and other productivity improvements, which served to push our total warehouse margins to 31.8% in 2018, a 140 basis point increase over the prior full year. We also continued to expand our footprint, having stabilized two facilities in Clearfield, UT and Middleboro, MA and made significant progress toward the completion of our fully automated expansion facility in Chicago, IL. Additionally, we signed a letter of intent to build and operate three automated facilities for a major customer and subsequent to year end, announced a new market for growth at the Port of Savannah, with the acquisition of PortFresh and our planned development. During the year, we also significantly expanded our access to capital. We accessed the public equity market through our IPO and our September follow-on offering, upsized our credit facility to $1.275 billion, achieved investment-grade ratings and accessed the debt markets in a private placement offering. Finally, we were recognized by the Global Cold Chain Alliance for Energy Excellence, having achieved Gold and Silver certifications at 56 sites.”

“As we look ahead to 2019 and beyond, we believe we are well positioned for future growth, as we remain the market leader within a fragmented, high barrier to entry industry that requires not only significant capital investment but deep operational and technical expertise and customer relationships. Our Americold Operating System allows us to drive continuous margin improvement on our standardized, company-wide platform, and when combined with our low-leveraged balance sheet, allows us to maximize the value of future acquisitions as we capitalize on our opportunity to be a consolidator in this industry. We believe our commitment to serving our diverse, global customer base and their growth needs will allow us to continue to offer shareholders an attractive combination of stable cash flows and attractive growth over the long term.” stated Fred Boehler, President and Chief Executive Officer of Americold Realty Trust.

2019 Outlook

The Company issued the following guidance:

• Global warehouse segment same store revenue growth to range between 2 and 4 percent on a constant currency basis and Same Store NOI growth to be 100 to 200 basis points higher than the associated revenue.
• Selling, general, and administrative expense, as a percentage of total revenue, is expected to range between 6.8 and 7.2 percent.
• Total recurring maintenance capital expenditures is expected in the range of $50 to $60 million.
• Total growth and expansion capital expenditures is expected to aggregate in a range of $225 to $325 million, which includes spending related to the Company\'s announced projects in Chicago, IL, Savannah, GA, and Australia, as well as anticipated projects that have yet to be announced.
• Anticipated AFFO payout ratio of 65 to 68 percent.
• Full year weighted average fully diluted share count of 155 to 157 million shares.

For earnings history and earnings-related data on AmeriCold Realty Trust (COLD) click here.

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