AmeriCold Realty Trust (COLD) Misses Q1 EPS by 16c, Revenues Beat; Provides FY19 Operational Outlook

AmeriCold Realty Trust (NYSE: COLD) reported Q1 EPS of ($0.03), $0.16 worse than the analyst estimate of $0.13. Revenue for the quarter came in at $393.1 million versus the consensus estimate of $301.76 million.

• Total revenue of $393.1 million, a 0.5% increase over the same quarter last year, or a 2.8% increase on a constant currency basis
• Global Warehouse segment revenue of $289.6 million, a 1.1% increase over the same quarter last year, or a 3.4% increase on a constant currency basis
• Total contribution (NOI) of $98.7 million, a 1.4% increase over the same quarter last year, or a 3.0% increase on a constant currency basis
• Global Warehouse segment contribution (NOI) of $90.8 million, a 1.4% increase over the same quarter last year, or a 2.7% increase on a constant currency basis
• Net loss of $4.6 million, or $0.03 per diluted common share, compared to net loss of $8.6 million in the same quarter last year
• Core EBITDA of $71.1 million, a 0.8% decrease over the same quarter last year, or a 0.7% increase on a constant currency basis
• Core Funds from Operations ("Core FFO") of $39.9 million, or $0.26 per diluted common share, compared to $34.8 million in the same quarter last year
• Adjusted Funds from Operations (“AFFO”) of $44.3 million, or $0.29 per diluted common share, compared to $39.9 million in the same quarter last year
• Global Warehouse segment same store revenue grew 0.4%, or 2.7% on a constant currency basis, with same store segment contribution (NOI) improving 0.2%, or 1.5% on a constant currency basis
• Acquired privately-held PortFresh, consisting of a temperature-controlled operator servicing fresh produce trade through the Port of Savannah and 163 acres of entitled land, for approximately $35.9 million. Concurrently announced plans to build a new, approximately 15 million cubic foot state-of-the-art temperature-controlled storage facility in Savannah, Georgia

Fred Boehler, President and Chief Executive Officer of Americold Realty Trust, stated, “We made strong progress to start 2019 as we leveraged our unique position as the world’s largest and only publicly traded REIT focused on the ownership, operation and development of temperature-controlled warehouses. We continue to drive internal growth through the steady execution of our business. Our core operations remain strong, and fundamentals within the industry remain extremely favorable as we look ahead.

We completed our first sizable, strategic acquisition by acquiring privately-held Cloverleaf Cold Storage, which added 22 mission critical, turnkey facilities in key protein markets in a transaction that is immediately accretive to our financial results. This was a rare opportunity to leverage our cost of capital and add complimentary scale, which positions us to create value with the full integration onto our proprietary Americold Operating System. We also completed a "tuck-in" acquisition of two additional facilities through our acquisition of Lanier Cold Storage. With these acquisitions complete, our total network now exceeds one billion refrigerated cubic feet. Further, our plans to expand our key Atlanta major market campus, including the addition of fully and semi-automated facilities and in combination with our acquisition and development in Savannah, will enhance our efficiency and further grow capacity, allowing us to better serve current and new customers.”

Mr. Boehler continued, “Finally, to fund this transformational growth, we were pleased with our successful follow on offering in April and debt private placement in May. We are very proud of our team’s hard work during this busy start to the year, and believe these transactions position us to drive shareholder value for years to come.”

2019 Outlook

The Company has revised select 2019 guidance based upon the impact of acquisitions, announced development, and capital markets activity completed subsequent to quarter end:

• 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 $56 to $66 million.
• Total growth and expansion capital expenditures is expected to aggregate in a range of $275 to $350 million, which includes spending related to the Company\'s announced projects in Chicago, IL, Savannah, GA, Australia, and Atlanta, GA as well as the three expansions associated with Cloverleaf.
• Anticipated AFFO payout ratio of 67 to 70 percent.
• Full year weighted average fully diluted share count of 182 to 186 million shares.

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

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